CHINA FANGDA GROUP CO., LTD.
2014 Interim Financial Report
1. Auditor‘s report
The financial statements for H1 2014 have not been audited.
2. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Closing balance Ending balance
Current asset:
Monetary capital 307,429,623.20 333,876,921.97
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 10,729,852.00 21,898,770.43
Account receivable 993,638,618.20 898,780,981.93
Prepayment 46,893,077.41 28,364,016.21
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 20,800.00 36,387.50
Dividend receivable
Other receivables 65,536,182.96 66,298,730.17
Repurchasing of financial
assets
Inventory 786,872,945.78 428,537,851.82
Non-current assets due in 1
year
Other current assets 89,808,955.68
Total current assets 2,300,930,055.23 1,777,793,660.03
Non-current assets:
Disburse of consigned loans
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity
9,952,757.98 9,994,565.55
investment
Investment real estate 189,468,158.14 195,249,069.13
Fixed assets 458,760,985.23 462,930,269.98
Construction in process 182,694.92 940,841.00
Engineering materials
Disposal of fixed assets 32,625.31 177,298.11
Productive biological assets
Gas & petrol
Intangible assets 91,199,895.95 91,527,650.52
R&D expense
Goodwill
Long-term amortizable
3,925,316.69 3,799,354.79
expenses
Deferred income tax assets 45,658,823.25 41,166,043.56
Other non-current assets 25,478,789.90 15,978,789.90
Total of non-current assets 824,660,047.37 821,763,882.54
Total of assets 3,125,590,102.60 2,599,557,542.57
Current liabilities
Short-term loans 725,000,000.00 369,000,000.00
Loans from Central Bank
Deposit received and held for
others
Call loan received
Transactional financial
liabilities
Notes payable 202,336,802.87 188,570,850.63
Account payable 650,805,706.90 489,216,140.32
Prepayment received 144,109,711.31 168,386,251.94
Selling of repurchased
financial assets
Fees and commissions
payable
Employees’ wage payable 17,028,555.42 30,182,851.80
Taxes payable 52,316,813.48 44,839,947.77
Interest payable 884,716.66 689,153.75
Dividend payable
Other payables 49,463,331.24 41,687,580.72
Reinsurance fee payable
Insurance contract provision
Entrusted trading of
securities
Entrusted selling of securities
Non-current liabilities due in
1 year
Other current liabilities
Total current liabilities 1,841,945,637.88 1,332,572,776.93
Non-current liabilities:
Long-term loans
Bond payable
Long-term payable
Special payables
Anticipated liabilities
Deferred income tax
40,858,031.32 40,656,763.97
liabilities
Other non-current liabilities 10,158,474.47 10,255,823.93
Total of non-current liabilities 51,016,505.79 50,912,587.90
Total liabilities 1,892,962,143.67 1,383,485,364.83
Owners’ equity (or shareholders’
equity)
Capital paid in (or share
756,909,905.00 756,909,905.00
capital)
Capital reserves 79,226,752.01 79,191,052.01
Less: Shares in stock
Special reserves
Surplus reserves 46,389,142.21 46,389,142.21
Common risk provisions
Retained profit 296,212,292.72 278,149,631.63
Difference caused by
translation of foreign currency
statements
Total of owner’s equity belong to
1,178,738,091.94 1,160,639,730.85
the parent company
Minor shareholders’ equity 53,889,866.99 55,432,446.89
Total of owners’ equity (or
1,232,627,958.93 1,216,072,177.74
shareholders’ equity)
Total of liability and owners’
3,125,590,102.60 2,599,557,542.57
equity (or shareholders’ equity)
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
2. Balance Sheet of the Parent Company
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Closing balance Ending balance
Current asset:
Monetary capital 7,499,144.67 68,223,808.76
Transactional financial
assets
Notes receivable
Account receivable 604,459.49 604,459.49
Prepayment 43,089.61 218,984.07
Interest receivable
Dividend receivable 39,356,000.00 39,356,000.00
Other receivables 588,210,866.78 571,620,659.73
Inventory
Non-current assets due in 1
year
Other current assets 689,184.18
Total current assets 636,402,744.73 680,023,912.05
Non-current assets:
Sellable financial assets
Investment held until
mature
Long-term receivable
Long-term share equity 719,686,503.56 719,728,311.13
investment
Investment real estate 163,615,954.05 174,778,756.62
Fixed assets 60,399,293.21 48,117,849.19
Construction in process 914,126.00
Engineering materials
Disposal of fixed assets
Productive biological
assets
Gas & petrol
Intangible assets 2,120,864.58 1,351,845.98
R&D expense
Goodwill
Long-term amortizable 79,002.15 50,314.43
expenses
Deferred income tax assets 13,638,159.39 12,342,430.37
Other non-current assets
Total of non-current assets 959,539,776.94 957,283,633.72
Total of assets 1,595,942,521.67 1,637,307,545.77
Current liabilities
Short-term loans 200,000,000.00 104,000,000.00
Transactional financial
liabilities
Notes payable
Account payable 606,941.85 1,849,090.36
Prepayment received 693,045.60 798,586.70
Employees’ wage payable 841,088.14 1,881,681.86
Taxes payable 561,161.47 260,761.30
Interest payable 344,300.00 193,930.00
Dividend payable
Other payables 83,396,825.27 192,765,065.68
Non-current liabilities due
in 1 year
Other current liabilities
Total current liabilities 286,443,362.33 301,749,115.90
Non-current liabilities:
Long-term loans
Bond payable
Long-term payable
Special payables
Anticipated liabilities
Deferred income tax 88,810,341.61 88,615,374.26
liabilities
Other non-current
liabilities
Total of non-current liabilities 88,810,341.61 88,615,374.26
Total liabilities 375,253,703.94 390,364,490.16
Owners’ equity (or
shareholders’ equity)
Capital paid in (or share 756,909,905.00 756,909,905.00
capital)
Capital reserves 38,690,396.63 38,690,396.63
Less: Shares in stock
Special reserves
Surplus reserves 46,389,142.21 46,389,142.21
Common risk provisions
Retained profit 378,699,373.89 404,953,611.77
Difference caused by
translation of foreign currency
statements
Total of owners’ equity (or 1,220,688,817.73 1,246,943,055.61
shareholders’ equity)
Total of liability and owners’ 1,595,942,521.67 1,637,307,545.77
equity (or shareholders’ equity)
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
3. Consolidated Income Statement
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Total revenue 822,792,739.02 736,828,039.88
Incl. Business income 822,792,739.02 736,828,039.88
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 781,151,190.76 693,328,494.53
Incl. Business cost 668,447,444.31 584,493,820.44
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
11,358,459.71 13,633,238.09
surcharge
Sales expense 18,245,120.86 17,614,987.09
Administrative
67,185,503.16 57,347,495.40
expense
Financial expenses 11,047,478.14 12,213,522.40
Asset impairment
4,867,184.58 8,025,431.11
loss
Plus: gains from change of
fair value (“-“ for loss)
Investment gains
969,118.50
(“-“ for loss)
Incl. Investment gains
-41,807.57
from affiliates and joint ventures
Exchange gains
(“-“ for loss)
3. Operational profit (“-“ for loss) 42,610,666.76 43,499,545.35
Plus: non-operational income 3,041,518.40 2,504,701.74
Less: non-operational
2,061,903.28 672,299.16
expenditure
Incl. Loss from
1,569,906.67 169,723.53
disposal of non-current assets
4. Gross profit (“-“ for loss) 43,590,281.88 45,331,947.93
Less: Income tax expenses 4,362,903.54 7,795,908.42
5. Net profit (“-“ for net loss) 39,227,378.34 37,536,039.51
Including: Net profit realized
by the entity taken over before the
takeover
Net profit attributable to the
40,769,958.24 39,361,593.42
owners of parent company
Minor shareholders’ equity -1,542,579.90 -1,825,553.91
6. Earnings per share: -- --
(1) Basic earnings per share 0.05 0.05
(2) Diluted earnings per
0.05 0.05
share
7. Other misc. incomes 35,700.00
8. Total of misc. incomes 39,263,078.34 37,536,039.51
Total of misc. incomes
attributable to the owners of the 40,805,658.24 39,361,593.42
parent company
Total misc gains attributable
-1,542,579.90 -1,825,553.91
to the minor shareholders
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
4. Income Statement of the Parent Company
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Turnover 14,332,254.25 23,580,401.58
Less: Operation cost 2,129,602.96 4,742,190.07
Business tax and
1,179,113.66 1,829,817.82
surcharge
Sales expense
Administrative expense 11,316,843.92 10,381,634.49
Financial expenses 5,364,994.52 2,086,644.86
Asset impairment loss -53,159.58 14,817.75
Plus: gains from change of
fair value (“-“ for loss)
Investment gains
-41,807.57
(“-“ for loss)
Incl. Investment gains
-41,807.57
from affiliates and joint ventures
2. Operational profit (“-“ for loss) -5,646,948.80 4,525,296.59
Plus: non-operational income 1,326,268.74 1,025,011.10
Less: non-operational
327,022.34 373,248.83
expenditure
Incl. Loss from disposal
125,522.34 34,285.02
of non-current assets
3. Gross profit (“-“ for loss) -4,647,702.40 5,177,058.86
Less: Income tax expenses -1,100,761.67 994,439.99
4. Net profit (“-“ for net loss) -3,546,940.73 4,182,618.87
5. Earnings per share: -- --
(1) Basic earnings per share
(2) Diluted earnings per
share
6. Other misc. incomes 0.00 0.00
7. Total of misc. incomes -3,546,940.73 4,182,618.87
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
5. Consolidated Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Net cash flow from business
operations:
Cash received from sales of
749,511,473.43 746,305,400.55
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 refunded 575,871.97 1,402,420.40
Other cash received from
47,867,585.96 24,853,131.88
business operation
Sub-total of cash inflow from
797,954,931.36 772,560,952.83
business operations
Cash paid for purchasing
852,304,489.33 596,363,985.36
products and services
Net increase of client trade
and advance
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 and for the staff 105,126,526.67 80,075,568.67
Taxes paid 43,416,941.46 39,998,936.89
Other cash paid for business
65,659,703.51 55,032,599.32
activities
Sub-total of cash outflow from
1,066,507,660.97 771,471,090.24
business operations
Cash flow generated by business
-268,552,729.61 1,089,862.59
operations, net
2. Cash flow generated by
investment:
Cash received from
investment recovery
Cash received as investment
1,008,267.73
profit
Net cash retrieved from
disposal of fixed assets, intangible 4,577,733.50 230,729.00
assets, and other long-term assets
Net cash received from
disposal of subsidiaries or other
operational units
Other investment-related
133,500.00 371,500.00
cash received
Sub-total of cash inflow generated
5,719,501.23 602,229.00
from investment
Cash paid for construction of
fixed assets, intangible assets and 8,981,293.29 35,013,827.84
other long-term assets
Cash paid as investment 20,000,000.00
Net increase of loan against
pledge
Net cash paid for acquiring
subsidiaries and other operational
units
Other cash paid for
130,500.00 960,000.00
investment
Subtotal of cash outflows 9,111,793.29 55,973,827.84
Cash flow generated by
-3,392,292.06 -55,371,598.84
investment activities, net
3. Cash flow generated by
financing activities:
Cash received from
investment
Incl. Cash received from
investment attracted by
subsidiaries from minority
shareholders
Cash received from
356,000,000.00 160,000,000.00
borrowed loans
Cash received from bond
placing
Other cash received from
financing activities
Subtotal of cash inflow from
356,000,000.00 160,000,000.00
financing activities
Cash paid to repay debts 70,000,000.00
Cash paid as dividend, profit,
41,950,857.15 28,180,178.76
or interests
Incl. Dividend and profit
paid by subsidiaries to minority
shareholders
Other cash paid for financing 156,090.75 81,621.53
activities
Subtotal of cash outflow from
42,106,947.90 98,261,800.29
financing activities
Net cash flow generated by
313,893,052.10 61,738,199.71
financing activities
4. Influence of exchange rate
changes on cash and cash -7,348.79 -36.18
equivalents
5. Net increase in cash and cash
41,940,681.64 7,456,427.28
equivalents
Plus: Balance of cash and
cash equivalents at the beginning 285,237,255.38 240,167,372.86
of term
6. Balance of cash and cash
equivalents at the end of the 327,177,937.02 247,623,800.14
period
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
6. Cash Flow Statement of the Parent Company
Prepared by: China Fangda Group Co., Ltd.
In RMB
Items Amount of the Current Term Amount of the Previous Term
1. Net cash flow from business
operations:
Cash received from sales of
12,110,570.32 17,270,087.97
products and providing of services
Tax refunded
Other cash received from
486,019,552.00 297,539,451.29
business operation
Sub-total of cash inflow from
498,130,122.32 314,809,539.26
business operations
Cash paid for purchasing
2,860,543.41 5,883,177.71
products and services
Cash paid to and for the staff 7,871,822.76 5,654,402.78
Taxes paid 1,340,978.19 2,290,978.47
Other cash paid for business
784,384,264.75 181,902,222.11
activities
Sub-total of cash outflow from
796,457,609.11 195,730,781.07
business operations
Cash flow generated by business
-298,327,486.79 119,078,758.19
operations, 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 171,005,300.50 729.00
assets, and other long-term assets
Net cash received from
disposal of subsidiaries or other
operational units
Other investment-related
cash received
Sub-total of cash inflow generated
171,005,300.50 729.00
from investment
Cash paid for construction of
fixed assets, intangible assets and 1,118,624.57 73,788.50
other long-term assets
Cash paid as investment 40,000,000.00
Net cash paid for acquiring
subsidiaries and other operational
units
Other cash paid for
investment
Subtotal of cash outflows 1,118,624.57 40,073,788.50
Cash flow generated by
169,886,675.93 -40,073,059.50
investment activities, net
3. Cash flow generated by
financing activities:
Cash received from
investment
Cash received from
96,000,000.00 90,000,000.00
borrowed loans
Cash received from bond
placing
Other cash received from
financing activities
Subtotal of cash inflow from
96,000,000.00 90,000,000.00
financing activities
Cash paid to repay debts 70,000,000.00
Cash paid as dividend, profit,
28,150,357.15 26,856,728.43
or interests
Other cash paid for financing 156,090.75 81,621.53
activities
Subtotal of cash outflow from
28,306,447.90 96,938,349.96
financing activities
Net cash flow generated by
67,693,552.10 -6,938,349.96
financing activities
4. Influence of exchange rate
changes on cash and cash
equivalents
5. Net increase in cash and cash
-60,747,258.76 72,067,348.73
equivalents
Plus: Balance of cash and
cash equivalents at the beginning 67,973,808.76 25,540,604.84
of term
6. Balance of cash and cash
equivalents at the end of the 7,226,550.00 97,607,953.57
period
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
7. Statement of Change in Owners’ Equity (Consolidated)
Prepared by: China Fangda Group Co., Ltd.
In RMB
Amount of the Current Term
Owners’ Equity Attributable to the Parent Company
Capital
Minor
paid in Less: Surplu Comm Total of
Items Capital Special Retain sharehol
(or Shares s on risk owners’
reserve reserve ed Others ders’
share in reserve provisi equity
s s profit equity
capital stock s ons
)
756,90 46,389 278,14
1. Balance at the end of 79,191, 55,432,4 1,216,07
9,905. ,142.2 9,631.6
last year 052.01 46.89 2,177.74
00 1 3
Plus: Changes in
accounting policies
Correction of
previous errors
Others
756,90 46,389 278,14
2. Balance at the beginning 79,191, 55,432,4 1,216,07
9,905. ,142.2 9,631.6
of current year 052.01 46.89 2,177.74
00 1 3
3. Amount of change in 35,700. 18,062, -1,542,5 16,555,7
current term (“-“ for 00 661.09 79.90 81.19
decrease)
40,769, -1,542,5 39,227,3
(1) Net profit
958.24 79.90 78.34
35,700. 35,700.0
(2) Other misc. income
00 0
35,700. 40,769, -1,542,5 39,263,0
Sub-total of (1) and (2)
00 958.24 79.90 78.34
(3) Investment or
decreasing of capital by
owners
1. Capital input by owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others
-22,70
-22,707,2
(4) Profit allotment 7,297.1
97.15
5
1. Providing of surplus
reserves
2. Common risk provision
-22,70
3. Allotment to the owners -22,707,2
7,297.1
(or shareholders) 97.15
5
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 756,90 79,226, 46,389 296,21 53,889,8 1,232,62
this period 9,905. 752.01 ,142.2 2,292.7 66.99 7,958.93
00 1 2
In RMB
Amount of Last Year
Owners’ Equity Attributable to the Parent Company
Capital
Minor
paid in Less: Surplu Comm Total of
Items Capital Special Retain sharehol
(or Shares s on risk owners’
reserve reserve ed Others ders’
share in reserve provisi equity
s s profit equity
capital stock s ons
)
756,90 30,494 230,90
1. Balance at the end of 80,299, 59,708,5 1,158,32
9,905. ,542.9 7,879.9
last year 867.64 31.11 0,726.68
00 4 9
Plus: Retrospective
adjustment caused by
merger of entities under
common control
Plus: Changes in
accounting policies
Correction of
previous errors
Others
756,90 30,494 230,90
2. Balance at the beginning 80,299, 59,708,5 1,158,32
9,905. ,542.9 7,879.9
of current year 867.64 31.11 0,726.68
00 4 9
3. Amount of change in 15,894
-1,108, 47,241, -4,276,0 57,751,4
current term (“-“ for ,599.2
815.63 751.64 84.22 51.06
decrease) 7
85,676, -4,276,0 81,400,7
(1) Net profit
863.78 84.22 79.56
-1,108, -1,108,81
(2) Other misc. income
815.63 5.63
-1,108, 85,676, -4,276,0 80,291,9
Sub-total of (1) and (2)
815.63 863.78 84.22 63.93
(3) Investment or
decreasing of capital by
owners
1. Capital input by owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others
15,894 -38,43 -22,540,5
(4) Profit allotment
,599.2 5,112.1 12.87
7 4
15,894 -15,89
1. Providing of surplus
,599.2 4,599.2
reserves
7 7
2. Common risk provision
-22,54
3. Allotment to the owners -22,540,5
0,512.8
(or shareholders) 12.87
7
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
756,90 46,389 278,14
4. Balance at the end of 79,191, 55,432,4 1,216,07
9,905. ,142.2 9,631.6
this period 052.01 46.89 2,177.74
00 1 3
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
8. Statement of Change in Owners’ Equity (Parent Company)
Prepared by: China Fangda Group Co., Ltd.
In RMB
Amount of the Current Term
Capital Common
Less: Total of
Items paid in Capital Special Surplus risk Retained
Shares in owners’
(or share reserves reserves reserves provision profit
stock equity
capital) s
1. Balance at the end of last 756,909, 38,690,3 46,389,1 404,953, 1,246,94
year 905.00 96.63 42.21 611.77 3,055.61
Plus: Changes in
accounting policies
Correction of
previous errors
Others
2. Balance at the beginning 756,909, 38,690,3 46,389,1 404,953, 1,246,94
of current year 905.00 96.63 42.21 611.77 3,055.61
3. Amount of change in
-26,254,2 -26,254,2
current term (“-“ for
37.88 37.88
decrease)
-3,546,94 -3,546,94
(1) Net profit
0.73 0.73
(2) Other misc. income
-3,546,94 -3,546,94
Sub-total of (1) and (2)
0.73 0.73
(3) Investment or decreasing
of capital by owners
1. Capital input by owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others
-22,707,2 -22,707,2
(4) Profit allotment
97.15 97.15
1. Providing of surplus
reserves
2. Common risk provision
3. Allotment to the owners -22,707,2 -22,707,2
(or shareholders) 97.15 97.15
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, 38,690,3 46,389,1 378,699, 1,220,68
period 905.00 96.63 42.21 373.89 8,817.73
In RMB
Amount of Last Year
Capital Common
Less: Total of
Items paid in Capital Special Surplus risk Retained
Shares in owners’
(or share reserves reserves reserves provision profit
stock equity
capital) s
1. Balance at the end of last 756,909, 39,799,2 30,494,5 284,442, 1,111,646
year 905.00 12.26 42.94 731.25 ,391.45
Plus: Changes in
accounting policies
Correction of
previous errors
Others
2. Balance at the beginning 756,909, 39,799,2 30,494,5 284,442, 1,111,646
of current year 905.00 12.26 42.94 731.25 ,391.45
3. Amount of change in
-1,108,81 15,894,5 120,510, 135,296,
current term (“-“ for
5.63 99.27 880.52 664.16
decrease)
158,945, 158,945,
(1) Net profit
992.66 992.66
-1,108,81 -1,108,81
(2) Other misc. income
5.63 5.63
-1,108,81 158,945, 157,837,
Sub-total of (1) and (2)
5.63 992.66 177.03
(3) Investment or decreasing
of capital by owners
1. Capital input by owners
2. Amount of shares paid
and accounted as owners’
equity
3. Others
15,894,5 -38,435,1 -22,540,5
(4) Profit allotment
99.27 12.14 12.87
1. Providing of surplus 15,894,5 -15,894,5
reserves 99.27 99.27
2. Common risk provision
3. Allotment to the owners -22,540,5 -22,540,5
(or shareholders) 12.87 12.87
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, 38,690,3 46,389,1 404,953, 1,246,94
period 905.00 96.63 42.21 611.77 3,055.61
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager:
Chen Yonggang
III. 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 深府办函（1995）194号, 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; with a registered capital of
RMB756,909,905; 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 深招商复[1997]0192
号, 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 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, Fangda 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.
IV. Main Accounting Policies, Estimations and Retrospection of Previous
Accounting Errors
(I) 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, the financial statements are prepared based on historical costs. In
case of any asset impairment, the impairment provision will be made as required.
(II) 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 June 30, 2014, and
business performance and cash flow situation between January and June 2014 of the Company
frankly and completely.
(III) Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
(IV) Bookkeeping standard money
The Company takes RMB as the standard currency for bookkeeping.
(V) 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 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.
(VI) Accounting policies for disposal of share equity and loss of control
(1) Judgment of a basket of transactions
When the terms, conditions and economic impacts of several transactions of disposal of share
equity and loss of control meet one or multiple situations listed below, the Company will treat the
several transactions as a basket of transactions:
These transactions are conducted concurrently or with mutual impacts considered;
② These transactions can only achieve the business result as a whole;
③ The effectiveness of one transaction depends the occurrence of at least another transaction;
④ A single transaction is not economic and is economic when considered together with other
transactions.
(2) Accounting treatment of a basket of transactions
For transactions in step disposal of stock equity and loss of control, the difference between
the book value and proceeds from the long-term equity investment corresponding to each disposal
of equity in separate financial statement and the book value of the disposal of long-term equity
investment is included in the current investment gain.
In consolidated financial statements, between step disposal of stock equity and loss of control,
the measurement of residual stock equity and accounting ratio of related stock equity disposal
gain/loss are subject to the disposal of loss of subsidiary control. The difference between every
disposal amount before losing control and the share of net assets of the subsidiary enjoyed
corresponding to the disposal is recognized as other general gains and is included in capital
reserve (other capital reserve). It is transferred to current gain/loss from loss of control when the
control is lost.
(3) Accounting treatment of non-package transactions
For transactions in step disposal of stock equity and loss of control, the difference between
the book value and proceeds from the long-term equity investment corresponding to each disposal
of equity in separate financial statement and the book value of the disposal of long-term equity
investment is included in the current investment gain.
In consolidated financial statements, between step disposal of stock equity and loss of control,
the measurement of residual stock equity and accounting ratio of related stock equity disposal
gain/loss are subject to the disposal of loss of subsidiary control. The difference between every
disposal amount before losing control and the share of net assets of the subsidiary enjoyed
corresponding to the disposal is included in capital reserve (stock premium/capital premium) as an
equity transaction. It will not be transferred to current gain/loss from loss of control when the
control is lost.
(VII) Preparation of Consolidated Financial Statements
(1). Preparation of Consolidated Financial Statements
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
(VIII) 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.
(IX) Foreign exchange business and foreign exchange statement translation
(VIII) 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.
(2) Translation of foreign exchange statement
At the balance sheet date, foreign currency items are translated on the spot exchange rate of
the balance sheet 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. Non-monetary items
accounted in foreign currency and on fair value are exchanged with the spot exchange rate on the
determination date of the fair value. The exchange difference between the accounting
standard-currency amount and the original accounting standard-currency amount are included in
the current profits and losses.
(X) 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
The Company's financial assets mainly include receivables, which 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.
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 de-recognition condition.
(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.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction
date.
(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)
Financial assets measured at fair value with variations accounted into current income account.
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.
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.
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.
Verification of impairment in various sellable financial assets
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.
Verification of impairment in various sellable financial assets
(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
11. Recognition standard and provision method for receivable bad debt provision
Receivables include receivable accounts, other receivables and prepayment.
(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 receivables over RMB2 million
Judging basis or standard of major individual amount
(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
Provision method for account receivable with major
individually on each large amount receivables, and
individual amount and bad debt provision provided
recognizes impairment and provides bad debt
individually
provision when the impairment is recognized based
on objective evidence.
(2) Recognition and providing of bad debt provisions on groups
Group Providing method Grouping basis
Account age Aging method Account age
Receivable accounts Accounts receivable consolidated are accounted using
Other method
consolidated the separate test method.
Receivables adopting the aging method in the group
√ Applicable □ Inapplicable
Providing rate for receivable
Age Providing rate for other receivables
account
Within 1 year (inclusive) 3.00% 3.00%
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
3-4 years 50.00% 50.00%
4-5 years 50.00% 50.00%
Over 5 years 50.00% 50.00%
Receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Receivables adopting other methods in the group
□ Applicable √ Inapplicable
(3) Account receivable with minor individual amount and bad debt provision provided
individually
Reasons for separate bad debt
Long account age or deterioration of customer creditability
provision
According to the difference between the present value of future cash
Method of bad debt provision
flow and the book value
12. 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, inventory, development
products, and construction in process.
(2) Pricing of delivering inventory
Weighted average method
Inventories are measured at cost when procured. Raw materials, products in process and
commodity stocks 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.
The actual costs of development products include land transfer payment, infrastructure and facility
costs, installation engineering costs, borrows before completion of the development and other
costs during the development process. The actual costs of the development product is priced using
the separate pricing method.
(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 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.
(5) Amortizing of low-value consumables and packaging materials
Low price consumable
On-off amortization basis
Package
On-off amortization basis
13. Long-term share equity investment
(1) Recognition of initial investment costs
Long-term share equity investment is measured at the investment cost when it is obtained. The
investment cost is generally is assets, liabilities occurred or borne to obtained the investment,
including direct related costs. The investment cost of long-term share equity investment formed by
entities under common control is the share of the book value of the owner's equity of the merged
party on the date of the merger.
2. Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the
Company can control the invested entity; and uses the equity method to measure long-term share
equity investment in which the Company has substantial influence on the invested entity. 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. When the equity method is used to measure long-term equity investment, the
investment cost will not be adjusted if the investment cost of the long-term equity investment is
larger than the share of fair value of the recognizable assets of the invested entity. When it is
smaller than the share of fair value of the recognizable assets of the invested entity, the book value
will be adjusted and the difference is included in the current gains of the investment. When the
equity method is used, the current investment gain is the share of the net gain realized in the
current year that can be shared or borne. When the share of the net gains that can be enjoyed is
recognized, it is recognized after the net profit of the invested entity is adjusted based on the fair
value of the recognizable assets of the invested entity according to the Company's accounting
policies and accounting period. Internal transaction gain not realized between the Company and
affiliates is measured according to the shareholding proportion and the investment gains are
recognized after deduction.
(3) Basis for recognition of common control and major influence on invested entities
Major influence refers to the power to participate in decision-making of financial and operation
policies of a company, but cannot control or jointly control the making of the policies. If the
Company directly or through subsidiaries holds more than 20% (inclusive) but less than 50% of
the shares with voting rights of the invested entity, unless there is clear evidence proving that the
Company cannot participate the decision-making of production and operation of the invested
entity, the Company has major influence on the invested entity.
(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.
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. Once recognized, the asset
impairment loss cannot be written back in subsequent accounting period.
14. Investment real estates
Investment real estate is held for rent or capital appreciation, or both. The Company’s investment
real estate include land use right, land use right held for appreciation and transfer and leased
buildings.
For investment real estate with an active real estate transaction market and the Company can
obtain market price and other information of same or similar real estate to reasonably estimate the
investment real estates’ fair value, the Company will use the fair value mode to measure the
investment real estate subsequently. Variations in fair value are accounted into the current
gain/loss account.
The fair value of investment real estate 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
estate with book value and related taxes deducted is accounted into the current gain/loss account.
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 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.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting
period.
15. 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
(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 35-45 10.00% 2-2.57
Mechanical equipment 10 10.00% 9
Electronic equipment 5 10.00% 18
Transport equipment 5 10.00% 18
(4) Impair test and impairment provision for fixed assets
The Company recognizes impairment in fixed assets as follows:
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.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting
period.
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.
(5) Others
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.
16.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 recognizes impairment in projects in construction as follows: 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 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.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting
period.
17. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing 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 assets;
(2) The borrowing expense has already occurred;
(3) Purchasing and 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 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
18. Biological assets
19. Petroleum assets
20. Intangible assets
(1) Pricing of intangible assets
The Company’s intangible assets include land using rights, patent, industry property, special
technologies, and software.
Intangible assets are initially measured at costs and the useful life will be determined when
obtained. 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.
(2) Useful life of intangible assets with limited useful life
At the end of each year, the Company will reexamine the useful life and amortization basis of
intangible assets with limited useful life. If they change, adjust the prediction and handle it
according to accounting estimate changes.
On the balance sheet day, if the intangible assets become unlikely to bring future economic
benefits for the Company, transfer all the intangible assets’ book value into the current gain/loss
account.
Items Estimated useful life Basis
Land using right Beneficial age
Patent 10
Proprietary technology 10
Software 5, 10 years
Other intangible assets 10 years or beneficial age
(3) Judgment basis of intangible assets without definite useful life
(4) Provision of intangible assets impairment
The Company recognizes impairment in intangible assets as follows: 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 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.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting
period.
(3) Specific standard for distinguish between research and development stage
The Company divides internal R&D project expenses into research and development expenses.
The research expenses are accounted the current gain/loss account.
Development expenses can only be capitalized when the following conditions are satisfied: the
technology is feasible for use or sales; there is the intention to use or sell the intangible assets; it
can be proven that the product generated by the intangible assets is demanded or the intangible
assets in demanded; if the intangible is used internally, it can be proven that it is useful; with
necessary technical and financial resources and other resources to complete the development of
the intangible assets and the intangible assets can be used or sold; the development expense can be
reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic
feasibility study, the project will enter the development stage.
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.
(6) Audit of internal research and development expenses
21. 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.
22 Transfer of assets without repurchase conditions
23. 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.
(2) 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.
24. 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
25. Repurchase of the Company’s shares
26. 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 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.
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.
(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.
27. Government subsidy
(1) Type
The Company divides government subsidies into assets-related and earnings-related government
subsidies.
(2) Accounting policy
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. When there is no clear evidence indicating compliance with related conditions for
governmental support and it is estimated that the Company can receive a government subsidy, it
will be measured at the receivable amount. Otherwise, it is measured at the amount actually
received.
Government subsidies related to assets are obtained by the Company to purchase, build or
formulate in other manners long-term assets; or subsidies related to benefits.
For subsidies that can formulate long-term assets without clear government regulations, the part of
the subsidies corresponding to the asset value will be measured as assets-related government
subsidies, while the rest of them will be measured as benefit-related government subsidies. Where
it is difficult to distinguish them from each other, the whole subsidies will be measured as
benefit-related government subsidies.
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 set off, the exceeded part shall be recorded into current income
account; if there is no relative differed gain, record to current income account directly.
28. 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 and joint ventures, the corresponding deferred
income tax assets are recognized when 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 and joint
ventures, the reversal timing for the temporary difference can be controlled and the difference is
unlikely to be reversed in the foreseeable future.
29. Operational leasing and financial leasing
(1) Accounting of operational leasing
The Company is the leaser
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 is 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 is the leaser
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 is 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.
(3) Accounting of sale and lease-back
30. Assets held for sales
(1) Recognition standard
(2) Accounting treatment
31. Asset securitization
32. Accounting of hedging
Arbitrage hedging is one or multiple hedging tools used to prevent the commodity price risk
by using the forecast fluctuation of the hedging tools to offset the all or part of the cash flow
changes in the arbitration items. The Company uses aluminum futures contracts as the arbitrage
tools. The arbitraged item is forecast raw material – aluminum purchase. The arbitrage must meet
all the following conditions to be considered as highly effective by the Company:
1. Before and during arbitrage, the arbitrage will effectively offset the cash flow changes
caused by the arbitraged risks during the period.
2. The actual offsetting result ranges between 80% and 125%.
The part of gains or losses in arbitrage tools are directly recognized as owner’s interests and
reflected as separate items. The amount in the effective arbitrage is recognized by the
accumulative gains or losses from the starting of arbitrage and accumulative changes to the current
value of future forecast cash flows from the start of arbitrage. When it is forecasted that a
transaction would cause the Company to recognize financial assets or liabilities, the related gains
or losses previously recognized as owner’s interests will be transferred out when the financial
assets or liabilities impact the Company’s gain/loss and included in the current gain/loss. When
the net loss previously recognized in owner’s interests cannot be offset in the future account
period, the part that cannot be offset should be transferred out and included in the current gain/loss.
The above-mentioned arbitrage account expires when the arbitrage tools expire or are sold,
terminated and no longer meet the accounting conditions.
33. Major changes in accounting policies and estimates
No change in major accounting estimates in the report period
(1) No change in major accounting policies in the report period
(2) No change in major accounting policies in the report period
34. Correction of previous accounting faults
Faults in previous accounts in the current report period
□ Yes √ No
No fault in previous accounts in the current report period
(1) Retrospective restatement method
Faults in adoption of the retrospective restatement 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
35. Other major accounting policies, accounting estimates and preparation of financial
statements
V 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 1％、5％、7％
Enterprise income tax Taxable income 25％，15％，0
2. Tax preference and approval
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of
Technological Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and
Shenzhen Local Tax Bureau on September 12, 2012, Fangda Jianke 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
Technological 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.
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science
and Technology, Jiangxi Ministry of Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax
Bureau on November 7, 2012, Fangda 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.
(4) On December 25, 2013, Kexunda was certified by Shenzhen Nanshan National Tax Bureau as
a software and integrated circuit designer according to the Shenzhen National Tax Reduction
Registration [2013] No.739 and will enjoy exemption from the enterprise income tax for two years
and 50% reduction of the same tax for another three years from the year that the company starts
making a net profit. Kexunda started making profits in 2013 and therefore starts to enjoy the
exemption.
(3) Others
VI Merger of enterprises and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries founded or acquired from investment
In RMB
Subsidi Typ Reg Busin Regi Business Actu Balan Share Propo Con Mino Amou The balance of the
ary e of ister ess stere scope al ce of holdi rtion soli r nt for owners’ interest in
subs ed d inve other ng of date share deduc the parent after
idiar addr capit stme items votes stat holde ting deducting the
y ess al nt at comp eme rs’ minor excessive part of
the osing nts equit ity the loss shared by
end net y gain/l minority
of invest oss in shareholders over
the ment the the share of profits
peri in minor in the owners’
od subsi ity interest in the
diarie intere subsidiary of
s sts minority
shareholder at the
beginning of the
year
Shenzh Full She Desig 310, Designin 310, 100.0 100.0 Yes
en y-o nzh ning, 000, g, 000, 0% 0%
Fangda wne en manuf 000. manufact 000.
Jianke d acturi 00 uring, 00
Group subs ng, and
Co., idiar and installati
Ltd. y install on of
ation curtain
of walls
curtai
n
walls
Shenzh Full She Install 105, Designin 183, 100.0 100.0 Yes
en y-o nzh ation 000, g, 777, 0% 0%
Fangda wne en and 000. technical 271.
Autom d proce 00 developi 73
atic subs ssing ng,
System idiar of installati
Co., y metro on, and
Ltd. screen sales of
door PSD
system;
import &
export;
installati
on and
processi
ng of
PSD.
Shenzh Full She Produ USD R&D, 3,20 100.0 100.0 Yes
en y-o nzh ction 3,20 design 0,00 0% 0%
Fangda wne en and 0,00 and 0.00
Yide d distrib 0.00 producti
New subs ution on of
Materi idiar of new-type
al Co., y new-t composit
Ltd. ype e
comp materials
osite
materi
als
Fangda Full Nan Produ USD Producti 12,0 100.0 100.0 Yes
New y-o cha ction 12,0 on and 00,0 0% 0%
Materi wne ng and 00,0 sales of 00.0
als d sales 00.0 new-type 0
(Jiangx subs of 0 materials
i) Co., idiar new-t ,
Ltd. y ype composit
materi e
als materials
comp ,
osite producti
materi on of
als curtain
and walls,
produ windows
ction , metal
of structure
curtai s and
n compone
walls nts,
metal
products
and
environ
mental
protectio
n
materials
and
products
Jiangxi Full Nan Desig 20,0 Design, 20,0 100.0 100.0 Yes
Fangda y-o cha n, 00,0 producti 00,0 0% 0%
New wne ng produ 00.0 on, sales 00.0
Type d ction, 0 and 0
Alumi subs sales installati
num idiar and on of
Co., y install curtain
Ltd. ation wall
of aluminiu
variou m
s materials
curtai , doors,
n wall windows
alumi and
num sectional
doors materials
and
windo
ws
Hong Full Hon Invest HK Investme 10,0 100.0 100.0 Yes
Kong y-o g ment D10, nt 00.0 0% 0%
Junjia wne Kon 000. 0
Group d g 00
Co., subs
Ltd. idiar
y
Shenya Con She Manu 200, Manufac 108, 64.58 64.58 Yes 53,8 -1,542
ng troll nya factur 000, turing of 852, % % 89,8 ,579.9
Fangda ed ng ing of 000. semicon 073. 66.9 0
Semi-c subs semic 00 ductor 85 9
onduct idiar onduc lighting
or ies tor material
Lightin lighti and
g Co., ng chips;
Ltd. materi lighting
al and source
chips; encapsul
lighti ation;
ng developi
sourc ng,
e designin
encap g,
sulati manufact
on; uring,
devel engineeri
oping, ng,
desig installati
ning, on and
manuf trading
acturi of
ng, semicon
engin ductor
eering lighting
, system
install
ation
and
tradin
g of
semic
onduc
tor
lighti
ng
syste
m
Shenzh Full She Devel 1,00 Compute 1,00 100.0 100.0 Yes
en y-o nzh oping 0,00 r 0,00 0% 0%
Kexun wne en of 0.00 software 0.00
da d hardw and
Softwa subs are hardware
re Co., idiar and develop
Ltd. y softw ment and
are, sales,
syste compute
m r
integr software
ation, develop
techni ment,
cal system
consu integrati
lting on and
technical
consultin
g
Shenzh Full She Real- 50,0 Develop 50,0 100.0 100.0 Yes
en y-o nzh estate 00,0 ment and 00,0 0% 0%
Fangda wne en devel 00.0 operatin 00.0
Propert d opme 0 g of real 0
y subs nt and estate on
Develo idiar operat land of
pment y ion; which
Co., prope land use
Ltd. rty right is
mana legally
geme obtained
nt by the
Compan
y;
property
manage
ment
2. Notes to changes in the consolidation scope
Notes to changes in the consolidation scope
□ Applicable √ Inapplicable
VII 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: -- -- 15,392.46 -- -- 33,975.32
RMB -- -- 15,280.78 -- -- 29,296.71
HK Dollar 142.04 0.78623 111.68 5,950.69 0.78623 4,678.61
Bank deposits: -- -- 258,658,623.21 -- -- 297,145,634.33
RMB -- -- 208,370,365.42 -- -- 296,625,709.31
USD 8,120,413.19 6.0969 49,509,347.19 10,734.32 6.0969 65,446.08
SGD 162,798.75 4.7845 778,910.60 94,989.85 4.7845 454,478.94
Other monetary
-- -- 48,755,607.53 -- -- 36,697,312.32
capital:
RMB -- -- 48,755,607.53 -- -- 36,697,312.32
USD
Total -- -- 307,429,623.20 -- -- 333,876,921.97
Amounts with limitation of use, deposited abroad, with potential recovering risk should be
separately explained.
1. RMB12 million among the balance of bank deposit at end of year was frozen by the court for
the lawsuit involved by Fangda Jianke. For details of the case please see Note VII-1.
Balance of RMB48,755,607.53 under other monetary capital was mainly deposit for bank
accepted notes and letter of guarantee, including deposit of RMB48,639,666.59 for accepted
notes and guarantee letter which are not regarded as cash equivalent at preparing of cash flow
statement.
2. Notes receivable
(1) Classification of notes receivable
In RMB
Type Closing amount Opening amount
Bank acceptance 4,121,078.00 21,898,770.43
Commercial acceptance 6,608,774.00
Total 10,729,852.00 21,898,770.43
(2) Pledged notes receivable at the end of period
In RMB
Issuer Date of issue Due date Amount Notes
(3) Notes of which the issuer is unable to perform and transferred into account receivable,
and notes endorsed to other parties but remains immature
The Company has no note 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
Yufeng Group Co.,
March 12, 2014 September 12, 2014 1,500,000.00
Ltd.
CPI Environmental
May 27, 2014 November 27, 2014 1,348,800.00
Protection
Engineering Co. Ltd.
Yufeng Group Co.,
March 14, 2014 September 19, 2014 1,000,000.00
Ltd.
Yufeng Group Co.,
March 14, 2014 September 19, 2014 1,000,000.00
Ltd.
Yufeng Group Co.,
March 14, 2014 September 19, 2014 1,000,000.00
Ltd.
Total -- -- 5,848,800.00 --
3. Receivable interest
(1) Receivable interest
In RMB
Items Opening amount Increase Decrease Closing amount
Interest receivable 36,387.50 30,062.50 45,650.00 20,800.00
Total 36,387.50 30,062.50 45,650.00 20,800.00
4. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing amount Opening amount
Remaining book Remaining book
Bad debt provision Bad debt provision
value value
Type
Amount Prop Amount Pro Amount Prop Amount Propor
ortio port ortio tion
n ion n
Account receivable for which bad debt provision is made by group
Receivable accounts 1,158,17 98.18 164,538,655 14.21 1,059, 98.0 161,204,960 15.21
outside 7,273.39 % .19 % 935,94 0% .82 %
consolidation 2.75
Subtotal 1,158,17 98.18 164,538,655 14.21 1,059, 98.0 161,204,960 15.21
7,273.39 % .19 % 935,94 0% .82 %
2.75
Account receivable 21,520,4 1.82% 21,520,471. 100.00 21,620 2.00 21,570,471. 99.77
with minor 71.60 60 % ,471.6 % 60 %
individual amount 0
and bad debt
provision provided
individually
Total 1,179,69 -- 186,059,126 -- 1,081, -- 182,775,432 --
7,744.99 .79 556,41 .42
4.35
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”.
The Company had no account receivable with major individual amount and bad debt provision
provided individually at the end of the period.
In the group, the account receivable of which bad debt provision is made through the account
aging method:
In RMB
Closing amount Opening amount
Remaining book value Remaining book value
Age Bad debt
Proportio Bad debt provision Proportio
Amount Amount provision
n n
Less than 1 year
Including: -- -- -- -- -- --
Less than 1 year 630,127,874.39 53.41% 18,917,677.59 549,013,214.34 51.80% 16,472,504.90
Subtotal for less
630,127,874.39 53.41% 18,917,677.59 549,013,214.34 51.80% 16,472,504.90
than 1 year
1-2 years 237,102,431.44 20.10% 23,710,243.12 209,253,623.01 19.74% 20,925,362.29
2-3 years 117,813,746.62 9.99% 35,344,124.00 135,137,295.40 12.75% 40,541,188.60
Over 3 years 173,133,220.94 14.68% 86,566,610.49 166,531,810.00 15.71% 83,265,905.03
1,059,935,942.7
Total 1,158,177,273.39 -- 164,538,655.19 -- 161,204,960.82
5
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
Remaining book
Description Bad debt provision Provision rate Reason
value
Aged over 5 years,
Trade receivable 4,478,919.79 4,478,919.79 100.00% unlike to be
recovered
Litigation-related,
Trade receivable 634,619.39 634,619.39 100.00% unlikely to be
recovered
Aged over 5 years,
Curtain wall project
3,160,003.20 3,160,003.20 100.00% unlike to be
payment
recovered
Curtain wall project Litigation-related,
430,629.58 430,629.58 100.00%
payment unlikely to be
recovered
Others 12,816,299.64 12,816,299.64 100.00%
Total 21,520,471.60 21,520,471.60 -- --
(2) No written-back or recovered account receivable during the report period
Bad debt provision for account receivable with major individual amount or with minor individual
amount but independent impairment test
In RMB
Remaining book
Description Bad debt amount Provision rate Reason
value
Aged over 5 years,
Trade receivable 4,478,919.79 4,478,919.79 100.00% unlike to be
recovered
Litigation-related,
Trade receivable 634,619.39 634,619.39 100.00% unlikely to be
recovered
Aged over 5 years,
Curtain wall project
3,160,003.20 3,160,003.20 100.00% unlike to be
payment
recovered
Litigation-related,
Curtain wall project
430,629.58 430,629.58 100.00% unlikely to be
payment
recovered
Others 12,816,299.64 12,816,299.64 100.00%
Total 21,520,471.60 21,520,471.60
Notes to account receivable with minor individual amount but triggering substantial risks after
being grouped:
The Company accounts receivables with long accounting ages, worsening customer credit but
small amount as other receivables with combined major risks.
(3) No written-off account receivable during the report period
(4) No shareholder holding 5% or above shares with voting rights of the Company owes any
account receivable to the Company at the end of period.
(5) Top 5 account receivable entities
In RMB
Percentage in the
Relationship with the
Entity Amount Term total account
Company
receivable
Curtain wall
No.1 37,584,874.83 Less than 1 year 3.19%
engineering customer
Curtain wall
No.2 29,410,011.31 1-2 years 2.49%
engineering customer
Curtain wall
No.3 28,646,942.98 1-3 years 2.43%
engineering customer
Curtain wall
No.4 27,499,096.15 Less than 1 year 2.33%
engineering customer
Curtain wall
No.5 25,243,279.60 1-3 years 2.14%
engineering customer
Total -- 148,384,204.87 -- 12.58%
(6) There is no receivable from affiliates at the end of the report period.
(7) The Company did not de-recognize account receivable in the report period.
(8) The Company did not conduct securitization of receivables in the report period.
5. Other receivables
(1) Other receivables disclosed by categories
In RMB
Closing amount Opening amount
Remaining book
Bad debt provision Remaining book value Bad debt provision
Type value
Proporti Proporti Proportio Proporti
Amount Amount Amount Amount
on on n on
Other receivables
with major individual
1,220,316.8 1,220,316.8 100.00 1,220,316.8 100.00
amount and bad debt 1.46% 1.47% 1,220,316.84
4 4 % 4 %
provision provided
individually
Other receivables for which bad debt provision is made by group
Including: other
80,300,887. 14,764,705. 79,642,281. 13,343,551.1
receivables out of the 96.18% 18.39% 96.15% 16.75%
97 01 33 6
consolidation
80,300,887. 14,764,705. 79,642,281. 13,343,551.1
Subtotal 96.18% 18.39% 96.15% 16.75%
97 01 33 6
Other receivables
with minor individual
1,971,822.7 1,971,822.7 100.00 1,971,822.7 100.00
amount and bad debt 2.36% 2.38% 1,971,822.77
7 7 % 7 %
provision provided
individually
83,493,027. 17,956,844. 82,834,420. 16,535,690.7
Total -- -- -- --
58 62 94 7
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
Remaining book
Description Bad debt amount Provision rate Reason
value
Aged over 5 years,
Receivable deposit 1,220,316.84 1,220,316.84 100.00% unlike 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 Bad debt
Propor Propor Bad debt provision
Amount provision Amount
tion tion
Less than 1 year
Including:
44.00 47.07
Less than 1 year 36,735,780.21 1,097,323.30 37,490,912.58 1,124,727.37
% %
Subtotal for less than 44.00 47.07
36,735,780.21 1,097,323.30 37,490,912.58 1,124,727.37
1 year % %
15.55 20.30
1-2 years 12,980,583.13 1,298,058.32 16,166,703.85 1,616,670.39
% %
17.46 15.01
2-3 years 14,581,647.76 4,374,494.34 11,950,894.86 3,585,268.47
% %
19.17 17.62
Over 3 years 16,005,376.87 7,994,829.06 14,033,770.04 7,016,884.93
% %
Total 80,300,887.97 -- 14,764,705.02 79,642,281.33 -- 13,343,551.16
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
Remaining book
Description Bad debt provision Provision rate Reason
value
Prepaid engineering 834,065.01 834,065.01 100.00% Aged over 5 years,
amount unlike to be
recovered
Aged over 5 years,
Receivable deposit 550,000.00 550,000.00 100.00% unlike to be
recovered
Aged over 5 years,
Prepaid account 100,000.00 100,000.00 100.00% unlike to be
recovered
Others 487,757.76 487,757.76 100.00%
Total 1,971,822.77 1,971,822.77 -- --
(2) No written-back or recovered other receivables during the report period
Bad debt provision for other receivables with major individual amount or with minor individual
amount but independent impairment test
In RMB
Description Remaining book Bad debt amount Provision rate Reason
value
Receivable deposit 1,220,316.84 1,220,316.84 100.00% Aged over 5 years,
unlike to be
recovered
Prepaid 834,065.01 834,065.01 100.00% Aged over 5 years,
engineering unlike to be
amount recovered
Receivable deposit 550,000.00 550,000.00 100.00% Aged over 5 years,
unlike to be
recovered
Prepaid account 100,000.00 100,000.00 100.00% Aged over 5 years,
unlike to be
recovered
Others 487,757.76 487,757.76 100.00%
Total 3,192,139.61 3,192,139.61 -- --
Notes to other receivables with minor individual amount but triggering substantial risks after
being grouped:
The Company accounts receivables with long accounting ages, worsening customer credit but
small amount as other receivables with combined major risks.
(3) No written-off other receivable during the report period
(4) No shareholder holding 5% or above shares with voting rights of the Company owes any
other receivables to the Company at the end of period.
(5) Nature and description of major other receivables
In RMB
Percentage in the total other
Entity Amount Nature or description
receivables
Hainan GreenTown
4,346,000.00 Deposit 5.21%
Investment Co., Ltd.
Shenyang Zhongyi
4,365,161.24 House payment 5.23%
Industrial Co., Ltd.
Zhejiang Jiayue Industrial
3,699,100.00 Deposit 4.43%
Co., Ltd.
Total 12,410,261.24 -- 14.87%
(6) Top 5 other receivable entities
In RMB
Relationship with the Percentage in the
Entity Amount Term
Company total other receivables
Hainan GreenTown
Customer 4,346,000.00 1-2 years 5.21%
Investment Co., Ltd.
Shenyang Zhongyi
Customer 4,365,161.24 Less than 1 year 5.23%
Industrial Co., Ltd.
Zhejiang Jiayue
Customer 3,699,100.00 2-3 years 4.43%
Industrial Co., Ltd.
Curtain wall
Xin Song engineering 575.00 2-3 years 0.00%
contractor
Curtain wall
Xin Song engineering 2,673,752.61 Over 3 years 3.20%
contractor
Curtain wall
Wang Weihong engineering 196,384.29 Less than 1 year 0.24%
contractor
Curtain wall
Wang Weihong engineering 458,570.59 1-2 years 0.55%
contractor
Curtain wall
Wang Weihong engineering 1,123,604.99 2-3 years 1.35%
contractor
Curtain wall
Wang Weihong engineering 841,123.48 Over 3 years 1.01%
contractor
Total -- 17,704,272.20 -- 21.22%
(7) There is no other receivable from affiliates at the end of the report period.
(8) No other receivables de-recognized in the report period
(9) The Company did not conduct securitization of other receivables in the report period.
(10) Governmental subsidy recognized as receivable at the end of the report period
In RMB
Reason for failing
Estimated Estimated
Governmental Closing Closing Estimated to receiving the
Entity receiving receiving
subsidy balance age amount amount on time
date basis
(if any)
Shenzhen VAT
national tax 313,025.6 Less than August 31, refunded for
VAT rebated 313,025.62
software 2 1 year 2014 software
VAT bureau companies
313,025.6
Total -- -- -- 313,025.62 -- --
2
6. Prepayment
(1) Account age of prepayments
In RMB
Closing amount Opening amount
Age
Amount Proportion Amount Proportion
Less than 1
43,797,585.83 90.91% 24,086,301.50 81.30%
year
1-2 years 1,886,554.46 4.32% 2,582,202.92 9.27%
2-3 years 186,327.58 0.46% 486,463.33 1.76%
Over 3 years 1,022,609.54 4.31% 1,209,048.46 7.67%
Total 46,893,077.41 -- 28,364,016.21 --
(2) Top 5 prepayment entities
In RMB
Relationship with the
Entity Amount Time Reason
Company
Shenzhen Gongkan
Prepaid engineering
Geotechnical Group Supplier 9,222,934.32 June 5, 2014
amount
Co., Ltd.
Foshan Jianmei
Supplier 3,139,847.19 December 1, 2013 Prepaid account
Aluminium Co., Ltd.
CSG Holding Co.,
Supplier 2,052,527.19 March 1, 2014 Prepaid account
Ltd.
Henan Yongtong
Supplier 2,495,086.38 April 4, 2014 Prepaid account
Aluminium Co., Ltd.
Litong Aluminum
Industry
Supplier 1,956,078.22 July 1, 2012 Prepaid account
(Guangdong) Co.,
Ltd.
Total -- 18,866,473.30 -- --
(3) No shareholder holding 5% or above shares with voting rights of the Company receives
prepayment from the Company at the end of period.
(4) Notes to prepayment
The prepayment increased by 65% year on year mainly due to prepayment made by the
Company’s subsidiary Fangda Property Development Co., Ltd.
7. Inventories
(1) Classification of inventories
In RMB
Closing amount Opening amount
Items Remaining book Depreciation Remaining Depreciation
Book value Book value
value provision book value provision
Raw materials 75,384,550.69 1,492,798.29 73,891,752.40 47,592,162.78 1,492,798.29 46,099,364.49
Product in 698,107,091.2
4,382,783.72 5,992,333.49 5,992,333.49
process 6
Finished goods in
16,329,671.20 1,984,145.11 14,345,526.09 10,246,627.50 1,984,145.11 8,262,482.39
stock
Asset formed by
229,499,318.3 227,668,575.6
construction 198,614,835.34 1,830,742.67 38,526.81 1,830,742.67
3 6
contract
Low price
46,560.72 46,560.72 51,278.67 51,278.67
consumable
OEM materials 443,488.50 443,488.50 873,790.05 873,790.05
139,590,027.0 139,590,027.0
Development cost 496,978,741.68
7 7
Materials in
transit
786,872,945.7 433,845,537.8 428,537,851.8
Total 792,180,631.85 5,307,686.07 5,307,686.07
8 9 2
(2) Inventory depreciation provision
In RMB
Opening balance Provision made in Decrease Closing balance of
Item
of book value the current period Write-back Write-off book value
Raw materials 1,492,798.29 1,492,798.29
Finished goods in
1,984,145.11 1,984,145.11
stock
Asset formed by
construction 1,830,742.67 1,830,742.67
contract
Total 5,307,686.07 5,307,686.07
(3) Inventory depreciation provision
Proportion of written-back
amount in the closing
Items Basis Reason
balance of the inventory
item
Realizable net value is
Raw materials
lower the cost
Realizable net value is
Finished goods in stock
lower the cost
Asset formed by Predicted construction
construction contract contract loss
8. Other current assets
In RMB
Items Closing amount Opening amount
Reverse repurchase of treasury bonds 80,642,000.00
VAT to be deducted 9,166,955.68
Total 89,808,955.68
Notes to other current assets
The reverse repurchase of treasury bonds coincides with the definition of cash equivalent and is
treated as cash equivalent in the consolidated cash flow statement.
9. Investment in joint venture and associated companies
In RMB
Property of
Name of Total Net profit of
voting rights Closing total Closing total Closing total
invested Shareholding operating the current
of the assets liabilities net assets
entity revenue period
Company
1. Joint venture
2. Associate
Shenzhen
Ganshang
50,330,423.3 48,768,421.4
Joint 20.40% 20.40% 1,562,001.85 4,166.00 -204,939.05
2 7
Investment
Co., Ltd.
10. Long-term share equity investment
(1) Details of long-term share equity investment
In RMB
Notes to
inconsis
Proporti tence
Shareho on of between
Impairm Provisio Cash
lding in voting the
Invested Audit Investm Ending Closing ent n made dividend
Change the rights in sharehol
entity method ent cost balance balance provisio in this in the
invested the ding and
n period period
entity invested voting
entity right
proporti
on
Shenzhe
n
Ganshan
10,000,0 9,994,56 -41,807. 9,952,75
g Joint Equity 20.40% 20.40%
00.00 5.55 57 7.98
Investm
ent Co.,
Ltd.
10,000,0 9,994,56 -41,807. 9,952,75
Total -- -- -- --
00.00 5.55 57 7.98
(2) Restriction for transfer of capital to invested companies
11. Investment real estates
(1) Investment real estate measured at costs
In RMB
Opening balance of Closing balance of book
Items Increase Decrease
book value value
1. Original total
26,150,933.45 17,666,669.66 14,743,910.08 29,073,693.03
book value
1. Houses &
26,150,933.45 17,666,669.66 14,743,910.08 29,073,693.03
buildings
II Accumulative
total depreciation 5,680,620.94 828,617.22 3,287,749.22 3,221,488.94
and amortization
1. Houses &
5,680,620.94 828,617.22 3,287,749.22 3,221,488.94
buildings
III Total net book
value of investment 20,470,312.51 16,838,052.44 11,456,160.86 25,852,204.09
real estate
1. Houses &
20,470,312.51 16,838,052.44 11,456,160.86 25,852,204.09
buildings
V Total book value
of investment real 20,470,312.51 16,838,052.44 11,456,160.86 25,852,204.09
estate
1. Houses &
20,470,312.51 16,838,052.44 11,456,160.86 25,852,204.09
buildings
In RMB
Current period
Depreciation and amortized amount for the current period 374,634.30
Impairment provision for investment real estate for the current
0.00
period
(2) Investment real estate measured at fair value
In RMB
Items Opening fair Increase Decrease Closing fair
value Purc Transferr Gain/lo Dis Transferred value
hase ed from ss pos to own use
d own use caused al
or by
inventor changes
y in fair
value
1. Total costs 101,311,548. 7,961,202.44 93,350,345.79
23
(1) Houses & buildings 101,311,548. 7,961,202.44 93,350,345.79
23
2. Total changes in fair 73,467,208.3 3,201,600.13 70,265,608.26
value 9
(1) Houses & buildings 73,467,208.3 3,201,600.13 70,265,608.26
9
3. Total book value of 174,778,756. 11,162,802.5 163,615,954.0
investment real estate 62 7 5
(1) Houses & buildings 174,778,756. 11,162,802.5 163,615,954.0
62 7 5
12. Fixed assets
(1) Fixed assets
In RMB
Opening
Closing balance
Items balance of book Increase Decrease
of book value
value
1. Original total book
685,695,819.65 35,007,004.98 27,421,366.03 693,281,458.60
value:
Houses & buildings 393,946,389.09 29,972,052.95 25,293,669.66 398,624,772.38
Mechanical
233,769,225.30 1,102,240.95 194,800.00 234,676,666.25
equipment
Transportation
17,163,113.28 101,367.52 194,114.00 17,070,366.80
facilities
Electronics and other
40,817,091.98 3,831,343.56 1,738,782.37 42,909,653.17
devices
Opening
-- balance of book Increase Provision Decrease Closing balance
value
2. Total accumulative
207,630,801.74 3,287,749.22 11,783,729.60 2,457,654.92 220,244,625.64
depreciation:
Houses & buildings 26,604,093.45 3,287,749.22 5,091,814.20 994,401.07 33,989,255.80
Mechanical
150,791,998.23 4,567,449.94 175,320.00 155,184,128.17
equipment
Transportation
9,179,557.42 785,200.11 100,614.60 9,864,142.93
facilities
Electronics and other
21,055,152.64 1,339,265.35 1,187,319.25 21,207,098.74
devices
-- Opening -- Closing balance
balance of book
value
3. Total of net book
478,065,017.91 -- 473,036,832.96
value of fixed assets
Houses & buildings 367,342,295.64 -- 364,635,516.58
Mechanical
82,977,227.07 -- 79,492,538.08
equipment
Transportation
7,983,555.86 -- 7,206,223.87
facilities
Electronics and other
19,761,939.34 -- 21,702,554.43
devices
4. Total impairment
15,134,747.93 -- 14,275,847.73
provision
Houses & buildings 1,131,563.50 -- 272,663.30
Mechanical
14,003,184.43 -- 14,003,184.43
equipment
Electronics and other
--
devices
5. Total of the book
462,930,269.98 -- 458,760,985.23
value of fixed assets
Houses & buildings 366,210,732.14 -- 364,362,853.28
Mechanical
68,974,042.64 -- 65,489,353.65
equipment
Transportation
7,983,555.86 -- 7,206,223.87
facilities
Electronics and other
19,761,939.34 -- 21,702,554.43
devices
The depreciation amounts to RMB11,783,729.60. The original value of transfer of construction
progress into the fixed original assets amounts to RMB1,932,263.77.
(2) Temporary idle fixed assets
In RMB
Accumulative Impairment
Items Book value Net book value Notes
depreciation provision
Houses &
46,268,742.05 4,359,595.27 277,744.50 41,631,402.28
buildings
Mechanical
105,591,939.34 65,176,273.05 12,648,794.93 27,826,427.92
equipment
Transportation
358,087.84 335,208.75 22,879.09
facilities
(3) No fixed assets leased through financial leasing
(4) No fixed assets lend through financial leasing
(5) No fixed assets held for sales at the end of the period
(6) Fixed assets without ownership certificate
Items Reason Time
1. Houses in Urumuqi for offsetting
Applying for
debt
2. Houses in Dalian of Fangda
Applying for
Jianke for offsetting debt
3. Shenyang Fangda extension
Entering into liquidation
workshop
4. Shenyang Fangda dorm and
Entering into liquidation
workshop 2#
5. Dining hall and power station of
Entering into liquidation
Shenyang Fangda
6. Yuehai Office Building C 502 Historical reasons
13.Construction in process
(1) Construction in progress
In RMB
Closing amount Opening amount
Items Remaining Impairment Remaining Impairment
Book value Book value
book value provision book value provision
Construction of Chengdu
44,803.00 44,803.00 26,715.00 26,715.00
Xinjin Base
Decoration of office
914,126.00 914,126.00
building
Floor renovation
137,891.92 137,891.92
engineering
Total 182,694.92 182,694.92 940,841.00 940,841.00
(2) No change in major construction in process
(3) No impairment provisions for construction in process
(4) No progress of major construction in process
14. Disposal of fixed assets
In RMB
Items Opening book value Closing book value Reason for disposal
Tools and apparatus 3,761.50
Mechanical equipment 144,421.47 32,625.31 Retirement to be processed
Other equipment 26,285.39
Transport equipment 2,829.75
Total 177,298.11 32,625.31 --
15. Intangible assets
(1) Intangible assets
In RMB
Opening balance of Closing balance of
Items Increase Decrease
book value book value
1. Original total book
127,766,601.18 1,387,101.05 129,153,702.23
value
Land using rights of
Fangda Tech Garden on 11,064,548.41 11,064,548.41
Gaoxin Road Nanchang
Shenyang Fangda land
42,038,791.23 42,038,791.23
use right
Dongguan land using
40,041,465.75 40,041,465.75
right
Patent and classified tech 28,195,043.67 960,767.82 29,155,811.49
Computer software 6,426,752.12 426,333.23 6,853,085.35
2. Total accumulative
30,713,086.89 1,714,855.62 32,427,942.51
amortization
Land using rights of
Fangda Tech Garden on 1,898,812.70 116,297.62 2,015,110.32
Gaoxin Road Nanchang
Shenyang Fangda land
5,108,021.70 420,417.90 5,528,439.60
use right
Dongguan land using
2,469,223.86 400,414.68 2,869,638.54
right
Patent and classified tech 18,107,946.73 431,305.44 18,539,252.17
Computer software 3,129,081.90 346,419.98 3,475,501.88
3. Total net intangible
97,053,514.29 -327,754.57 96,725,759.72
assets book value
Land using rights of
Fangda Tech Garden on 9,165,735.71 -116,297.62 9,049,438.09
Gaoxin Road Nanchang
Shenyang Fangda land
36,930,769.53 -420,417.90 36,510,351.63
use right
Dongguan land using
37,572,241.89 -400,414.68 37,171,827.21
right
Patent and classified tech 10,087,096.94 529,462.38 10,616,559.32
Computer software 3,297,670.22 79,913.25 3,377,583.47
4. Total impairment
5,525,863.77 5,525,863.77
provision
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
91,527,650.52 -327,754.57 91,199,895.95
intangible assets
Land using rights of
Fangda Tech Garden on 9,165,735.71 -116,297.62 9,049,438.09
Gaoxin Road Nanchang
Shenyang Fangda land
36,930,769.53 -420,417.90 36,510,351.63
use right
Dongguan land using
37,572,241.89 -400,414.68 37,171,827.21
right
Patent and classified tech 4,561,233.17 529,462.38 5,090,695.55
Computer software 3,297,670.22 79,913.25 3,377,583.47
The total amortization amounts to RMB1,714,855.62.
(2) Development project expenses
16. Goodwill
In RMB
Closing
Invested entity or item of
Ending balance Increase Decrease Closing 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
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.
For Shenzhen Woke was not in good business operation for successive years, impairment
provision has been provided fully upon the goodwill.
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.
17. Long-term amortizable expenses
In RMB
Opening Increase in this Closing Reason for
Items Amortized Other decrease
amount period amount other decrease
Factory
3,642,307.84 15,621.55 475,550.24 3,182,379.15
decoration
Decoration of
94,732.52 660,388.57 98,185.70 656,935.39
office building
Hoisting fee 12,000.00 5,000.00 7,000.00
Software
50,314.43 49,519.66 20,831.94 79,002.15
service fee
Total 3,799,354.79 725,529.78 599,567.88 3,925,316.69 --
18. 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 36,416,345.81 35,815,369.06
Deductible loss 5,960,308.62 2,365,000.74
Unrealizable gross profit 2,111,217.08 1,636,018.35
Reserved expense 645,182.15 354,228.28
Reserved wage 459,594.93
Deferred earning 525,769.59 535,832.20
Subtotal 45,658,823.25 41,166,043.56
Deferred income tax liabilities:
Adjustment of fair value of investment real
40,858,031.32 40,656,763.97
estate
Subtotal 40,858,031.32 40,656,763.97
Details of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
Deductible temporary difference 58,817,902.52 58,902,435.47
Deductible loss 73,293,328.91 69,150,558.57
Total 132,111,231.43 128,052,994.04
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Closing amount Opening amount Notes
2014 7,652,531.29 7,864,870.78
2015 7,695,652.54 7,695,652.54
2016 22,158,289.57 22,158,289.57
2017 20,241,373.78 20,241,373.78
2018 11,190,371.90 11,190,371.90
2019 4,355,109.83
Total 73,293,328.91 69,150,558.57 --
Details of taxable differences and deductible differences
In RMB
Temporary difference
Items
End Beginning of the period
Differences in taxable items
Adjustment of gain/loss in fair value 162,627,055.88 162,627,055.88
Subtotal 162,627,055.88 162,627,055.88
Deductible different items
Assets impairment provision 221,377,494.39 216,510,309.81
Deductible loss 18,141,129.26 9,460,002.94
Unrealizable gross profit 8,444,868.32 6,715,484.36
Deferred earning 2,213,067.05 2,261,103.48
Reserved expense 4,301,214.31 2,361,521.89
Reserved wage 3,063,966.18
Subtotal 254,477,773.33 240,372,388.66
19. Details of assets impairment provision
In RMB
Opening balance Decrease Closing balance
Items Increase
of book value Write-back Write-off of book value
1. Bad debt provision 200,581,750.60 5,036,621.98 169,437.40 103,208.00 205,345,727.18
2. Inventory depreciation
5,307,686.07 5,307,686.07
provision
7. Fixed assets
15,134,747.93 858,900.20 14,275,847.73
impairment 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 235,494,385.28 5,036,621.98 169,437.40 962,108.20 239,399,461.66
20. Other non-current assets
In RMB
Items Closing amount Opening amount
Prepaid house amount 25,478,789.90 15,978,789.90
Total 25,478,789.90 15,978,789.90
Notes to other non-current assets
The increase in other non-current assets in the period is attributable to the amount repaid by the
Fangda Jianke to Dalian Gaoxing Wanda Plaza Investment Co., Ltd.
21. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
Items Closing amount Opening amount
Loan by pledge 200,000,000.00 104,000,000.00
Guarantee loan 525,000,000.00 265,000,000.00
Total 725,000,000.00 369,000,000.00
(2) No mature but not repaid short-term borrowings
22. Notes payable
In RMB
Type Closing amount Opening amount
Commercial acceptance 3,401,883.33 9,356,905.04
Bank acceptance 198,934,919.54 179,213,945.59
Total 202,336,802.87 188,570,850.63
Amount due in next fiscal term will be RMB111,082,405.00.
23. Account payable
(1) Account payable
In RMB
Items Closing amount Opening amount
Account repayable and engineering
366,465,573.67
repayable 306,430,502.00
Construction payable 7,226,852.86 10,418,557.07
Payable installation and implementation
107,489,398.01
fees 130,144,359.65
Others 207,003,992.39 4,842,611.57
Total 650,805,706.90 489,216,140.32
(2) No account payable to shareholder holding 5% or above shares with voting rights of the
Company in the report period
(3) Notes to large accounts payable aged over one year
24. Prepayment
(1) Prepayment
In RMB
Items Closing amount Opening amount
Engineering payment 140,419,006.04 163,602,896.86
Material loan 1,285,976.88 1,970,928.42
Others 2,404,728.39 2,812,426.66
Total 144,109,711.31 168,386,251.94
(2) No prepayment from shareholders holding 5% or above shares with voting rights of the
Company in the report period
In RMB
Entity Closing amount Opening amount
(3) Notes to large prepayments aged over one year
25. Employees’ wage payable
In RMB
Opening balance of Closing balance of
Items Increase Decrease
book value book value
1. Wage, bonus, 27,807,395.20 81,072,358.34 94,086,213.26 14,793,540.28
allowance and
subsidies
2. Employee
32,064.56 2,229,934.21 2,261,998.77 0.00
welfare
3. Social
136,727.95 6,772,039.91 6,908,767.86 0.00
insurance
Medical
51,062.33 1,679,725.22 1,730,787.54 0.00
insurance
Basic pension 71,030.72 4,408,202.02 4,479,232.73 0.00
Annuity 2,811.36 0.00 2,811.36 0.00
Unemployment
6,651.88 343,232.77 349,884.64 0.00
insurance
Labor injury
3,429.18 236,835.00 240,264.18 0.00
insurance
Breeding
1,742.48 104,044.91 105,787.39 0.00
insurance
4. Housing fund 99,607.50 1,901,004.82 1,850,273.32 150,339.00
6. Others 2,107,056.59 127,271.68 149,652.13 2,084,676.14
Labor union and
staff education 2,107,056.59 126,871.68 149,252.13 2,084,676.14
budget
Total 30,182,851.80 92,102,608.96 105,256,905.34 17,028,555.42
Note: 1. The Company does not own any wage to employees.
2. The work union fund and staff education fund amount to RMB2,084,676.14 without
non-monetary welfare amount and compensation for termination of employment.
3. Wages, bonus, allowance and subsidies will be paid in July.
26. Taxes payable
In RMB
Items Closing amount Opening amount
VAT 8,374,385.36 -1,250,348.83
Business tax 26,295,439.32 23,221,596.65
Enterprise income tax 9,940,013.05 15,884,641.78
Personal income tax 1,166,793.33 902,435.66
City maintenance and construction tax 1,946,440.57 1,895,518.80
Land using tax 1,860,146.32 1,515,989.53
Property tax 1,532,848.51 1,477,538.33
Education surtax 983,645.92 907,151.22
Local education surtax 67,074.39 148,031.74
Others 150,026.71 137,392.89
Total 52,316,813.48 44,839,947.77
27. Interest payable
In RMB
Items Closing amount Opening amount
Short-term borrowing interests payable 884,716.66 689,153.75
Total 884,716.66 689,153.75
28. Other payables
(1) Other payables
In RMB
Items Closing amount Opening amount
Performance and quality deposit 28,832,965.69 20,142,316.44
Deposit 3,780,404.72 6,931,340.61
Reserved expense 4,865,133.07 6,587,792.11
Others 11,984,827.76 8,026,131.56
Total 49,463,331.24 41,687,580.72
(2) No account payable to shareholder holding 5% or above shares with voting rights of the
Company in the report period
(3) Notes to large other payables aged over one year
(4) Description of large other payables
29. Other non-current liabilities
In RMB
Items Closing balance of book value Opening balance of book value
Major investment project prize from
Industry and Trade Development Division 1,938,095.30 1,966,666.70
of Dongguan Finance Bureau
Railway transport screen door controlling
system and information transmission 274,971.75 294,436.78
technology
National Industry Revitalization and
7,944,161.34 7,994,720.45
Technology Renovation Project fund
Others 1,246.08
Total 10,158,474.47 10,255,823.93
Liabilities involving government subsidies
In RMB
Amount
Amount of included in Other Closing Related to
Liabilities Ending balance
new subsidy non-operating change balance assets/earning
revenue
Major or key
1,938,095.3
domestic project 1,966,666.70 0.00 28,571.40 Assets-related
0
in Dongguan
National Industry
Revitalization and
7,944,161.3
Technology 7,994,720.45 0.00 50,559.11 Assets-related
4
Renovation
Project fund
Railway transport
screen door
controlling system
294,436.78 0.00 19,465.03 274,971.75 Assets-related
and information
transmission
technology
10,157,228.
Total 10,255,823.93 0.00 98,595.54 --
39
30. Capital share
In RMB
Change (+,-)
Opening Transferred Closing
Issued new
amount Bonus shares from Others Subtotal amount
shares
reserves
Total of 756,909,905. 756,909,905.
capital shares 00 00
31. Capital reserve
In RMB
Items Opening amount Increase Decrease Closing amount
Capital premium (share
38,238,222.48 38,238,222.48
capital premium)
Other capital reserves 40,952,829.53 35,700.00 40,988,529.53
Total 79,191,052.01 35,700.00 79,226,752.01
Note: The increase in the capital reserve of RMB35,700 in the report period is attributed to the
arbitrage hedging of aluminum ingots performed by Fangda Jiangxi New Material, floating
earning of the holding.
32. Surplus reserves
In RMB
Items Opening amount Increase Decrease Closing amount
Statutory surplus reserves 46,389,142.21 46,389,142.21
Total 46,389,142.21 46,389,142.21
33. Retained profit
In RMB
Provided or distributed
Items Amount
proportion
Adjustment on retained profit of previous
278,149,631.63 --
year
Retained profit adjusted at beginning of
278,149,631.63 --
year
Plus: Net profit attributable to owners of
40,769,958.24 --
the parent
Closing retained profit 296,212,292.72 --
Details of retained profit adjusted at beginning of year
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related
regulations, included the retained profit by RMB0.
2). Variation of accounting policies, influenced the retained profit by RMB0.
3). Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced
the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
34. Operational revenue and costs
(1) Operation incomes and costs
In RMB
Amount occurred in the current
Items Occurred in previous period
period
Major business turnover 805,064,175.79 716,466,138.21
Other business income 17,728,563.23 20,361,901.67
Operation cost 668,447,444.31 584,493,820.44
(2) Business segments (on industries)
In RMB
Amount occurred in the current period Occurred in previous period
Industry
Turnover Operation cost Turnover Operation cost
Metal production 757,874,901.80 626,439,954.13 671,324,125.17 549,199,043.56
Railroad industry 47,189,273.99 36,592,658.69 45,126,972.67 29,541,447.74
Others 15,040.37 24,382.00
Total 805,064,175.79 663,032,612.82 716,466,138.21 578,764,873.30
(3) Business segments (by products)
In RMB
Amount occurred in the current period Occurred in previous period
Product
Turnover Operation cost Turnover Operation cost
Curtain wall system and
757,874,901.80 626,439,954.13 671,324,125.17 549,199,043.56
materials
Metro screen door 47,189,273.99 36,592,658.69 45,126,972.67 29,541,447.74
Others 15,040.37 24,382.00
Total 805,064,175.79 663,032,612.82 716,466,138.21 578,764,873.30
(4) Business segments (by regions)
In RMB
Amount occurred in the current period Occurred in previous period
Region
Turnover Operation cost Turnover Operation cost
Domestic 793,400,026.10 655,681,119.68 696,184,686.27 566,604,060.60
Export 11,664,149.69 7,363,232.76 20,281,451.94 12,160,812.70
Total 805,064,175.79 663,044,352.44 716,466,138.21 578,764,873.30
(5) Revenue from top five customers
In RMB
Customer Major business turnover Percentage in total turnover of the Company %
No.1 51,014,416.58 6.20%
No.2 49,103,969.86 5.97%
No.3 48,955,708.49 4.56%
No.4 37,532,573.05 4.43%
No.5 37,075,086.14 3.68%
Total 223,681,754.12 24.84%
Notes to operating revenue
None
35. Business tax and surcharge
In RMB
Amount occurred in Occurred in previous
Items Rate
the current period period
Business tax 7,943,113.33 9,460,385.99 3%、5%
City maintenance and
1,607,076.28 1,836,559.18 1%、5%、7%
construction tax
Education surtax 773,681.80 842,658.97 3%
Property tax 539,320.21 715,990.93
Land using tax 50,304.06 83,890.57
Others 444,964.03 693,752.45
Total 11,358,459.71 13,633,238.09 --
Notes to business tax and surcharge
36. Sales expense
In RMB
Amount occurred in the current
Items Occurred in previous period
period
Labor costs 10,990,132.53 8,844,748.71
Freight and miscellaneous charges 2,390,569.27 3,197,506.17
Travel expense 2,108,543.24 1,840,093.38
Entertainment expense 795,733.71 945,025.75
Material consumption 38,742.59 22,755.35
Office costs 304,476.16 148,767.75
Rental 579,779.25 279,843.66
Consultant costs 627,255.66
Others 1,037,144.11 1,708,990.66
Total 18,245,120.86 17,614,987.09
37. Management expenses
In RMB
Amount occurred in the current
Items Occurred in previous period
period
Labor costs 33,875,067.26 26,995,811.11
Depreciation and amortization 8,996,264.62 10,127,940.22
Agencies 1,569,858.99 841,979.21
Tax 2,785,530.76 1,599,803.72
Maintenance costs 1,598,482.33 1,822,143.23
Water and electricity 990,722.31 778,910.68
Office expense 1,019,710.61 990,134.27
Travel expense 1,291,812.58 1,341,062.18
Entertainment expense 699,909.83 889,358.81
Rental 1,399,130.22 1,177,344.49
Lawsuit 130,337.00 396,663.42
Material consumption 1,223,688.25 379,286.79
Property management fee 1,236,357.40 757,691.60
R&D 4,955,581.09 4,156,980.82
Others 5,413,049.91 5,092,384.85
Total 67,185,503.16 57,347,495.40
38. Financial expenses
In RMB
Amount occurred in the current
Items Occurred in previous period
period
Interest expense 11,901,596.69 11,981,599.56
Less: Interest income 1,463,393.70 1,237,905.09
Exchange gain/loss 229,139.52 549,645.66
Commission charges and others 380,135.63 920,182.27
Total 11,047,478.14 12,213,522.40
39. Investment income
(1) Details of investment gains
In RMB
Amount occurred in the current
Items Occurred in previous period
period
Gains from long-term equity investment
-41,807.57
measured by equity
Others 1,010,926.07
Total 969,118.50
(2) Gains from long-term equity investment measured by costs
In RMB
Amount occurred in Occurred in Reason for change from the
Invested entity
the current period previous period previous period
(3) Gains from long-term equity investment measured by equity
In RMB
Amount occurred in Occurred in Reason for change from the
Invested entity
the current period previous period previous period
Shenzhen Ganshang Joint
-41,807.57 0.00
Investment Co., Ltd.
Total -41,807.57 0.00 --
Statement on investment gains, please state whether or not there are material constrains on
retrieving of investment gains. If the magnificent restriction does not exist, it should be explained.
40. Assets impairment loss
In RMB
Amount occurred in the
Items Occurred in previous period
current period
1. Bad debt loss 4,867,184.58 8,025,431.11
Total 4,867,184.58 8,025,431.11
41. Non-business income
(1) Non-business income
In RMB
Amount accounted into
Amount occurred in Occurred in previous
Items the current accidental
the current period period
gain/loss
Total of gains from disposal of
218,095.40 144,075.88 218,095.40
non-current assets
Including: Gains from disposal of
218,095.40 144,075.88 218,095.40
fixed assets
Government subsidy 685,210.93 50,000.00 158,595.54
Penalty income 193,907.55 104,162.32 193,907.55
Penalty received 10,000.00 15,085.00 10,000.00
Payable account not able to be paid 1,242,148.51 65,309.08 1,242,148.51
Others 708,156.01 2,126,069.46 708,156.01
Total 3,041,518.40 2,504,701.74
(2) Government subsidies accounted into current profit or loss.
In RMB
Amount occurred in Occurred in previous Related to Non-recurring gain
Item
the current period period assets/earning and loss
Patent application
23,000.00 0.00 Earning-related Yes
subsidy
Railway transport
screen door
controlling system
19,465.03 0.00 Assets-related
and information
transmission
technology
Nanchang Quality
and Technology
Supervision Bureau 0.00 50,000.00 Earning-related No
well-known brand
product prize
Dongguan major or
key domestic project 28,571.40 0.00 Assets-related
award
National Industry
Revitalization and
Technology 50,559.11 0.00 Assets-related
Renovation Project
fund
VAT refunding 547,615.39 0.00
Others 16,000.00
Total 685,210.93 50,000.00 -- --
42. Non-business expenses
In RMB
Amount accounted
Amount occurred in Occurred in previous
Items into the current
the current period period
accidental gain/loss
Total of losses from disposal of
1,569,906.67 169,723.53
non-current assets
Including: Losses from disposal of fixed
1,569,906.67 169,723.53
assets
Donation 300,000.00 305,000.00
Others 191,996.61 197,575.63
Total 2,061,903.28 672,299.16
43. Income tax expenses
In RMB
Amount occurred in the Occurred in previous
Items
current period period
Income tax calculated according to the law and
8,660,715.86 9,028,463.76
regulations of current term
Adjustment of differed income tax -4,297,812.32 -1,232,555.34
Total 4,362,903.54 7,795,908.42
44. Calculation of basic earnings per share and diluted earnings per share
Items Code Amount Occurred in
occurred in previous
the current period
period
Net profit attributable to common share holders of P1 40,769,958.24 39,361,593.42
the Company
Accidental gain/loss attributable to common share F 1,100,409.86 1,769,843.22
holders of the Company
Net profit attributable to the common owners of P2=P1-F 39,669,548.38 37,591,750.20
the PLC after deducting of non-recurring
gains/losses
Influence of diluting events on net profit P3
attributable to common share holders of the
Company
Influence of diluting events on net profit P4
attributable to the 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 S1
common reserves or share dividend
Amount of shares increased by issuing of new Si
shares or transforming of debt to shares
Number of months from the next month of share Mi
increasing by issuing of new shares or
transferring of debts to the end of report term
Amount of shares decreased by repurchasing of Sj
shares in the report term
Number of months since the next month of share Mj
decreasing to the 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 S=S0+S1+Si*Mi/M0-Sj*Mj/M0-Sk 756,909,905 756,909,905
outside
Add: the weighted average of common shares X1
increased assuming the diluting potential
common shares transferred into issued common
shares
Weighted average of common shares for X2=S+X1 756,909,905 756,909,905
calculating diluted earnings 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
Earnings per share attributable to common share Y1=P1/S 0.05 0.05
holders of the Company
Basic earnings per share attributable to the Y2=P2/S 0.05 0.05
common owners of the PLC after deducting of
non-recurring gains/losses
45. Other miscellaneous income
In RMB
Amount occurred in the Occurred in previous
Items
current period period
3. Proceeds generated by cash flow arbitrage hedging
42,000.00
tools
Less: impacts on income tax caused by cash flow
6,300.00
arbitrage hedging tools
Net amount written into other gains and
0.00
transferred into gain/loss in previous terms
Transferred to adjustment of initial
0.00
recognized amount of arbitrage items
Subtotal 35,700.00
Total 35,700.00
46. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
Items Amount
Interest income 1,405,149.55
Subsidy income 73,335.30
Retrieving of bidding deposits 43,912,943.25
Operational trade received, net 131,098.26
Others 2,345,059.60
Total 47,867,585.96
(2) Other cash paid related to operation
In RMB
Items Amount
Management costs paid 14,368,126.02
Sales costs paid 3,978,971.73
Deposit and pledge paid 27,198,442.50
Personal borrowing 2,763,090.54
Others 17,351,072.72
Total 65,659,703.51
(3) Other cash received related to investment activities
In RMB
Items Amount
Retrieving of deposits, net 133,500.00
Total 133,500.00
(4) Other cash paid related to investment activities
In RMB
Items Amount
Deposit returned 130,500.00
Total 130,500.00
(5) Other cash received related to financing
In RMB
Items Amount
(6) Other cash paid related to financing
In RMB
Items Amount
Dividend commission 156,090.75
Total 156,090.75
47. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flow of business
-- --
operation
Net profit 39,227,378.34 37,536,039.51
Plus: Asset impairment provision 4,867,184.58 8,025,431.11
Fixed asset depreciation, gas and petrol
11,931,523.88 10,398,112.15
depreciation, production goods depreciation
Amortization of intangible assets 1,714,855.62 1,600,637.51
Amortization of long-term amortizable expenses 599,567.88 334,886.78
Loss from disposal of fixed assets, intangible
1,351,811.27 -147,631.06
assets, and other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 46,118.27
Financial expenses (“-“ for gains) 11,901,596.69 11,834,723.26
Investment losses (“-“ for gains) -969,118.50 0.00
Decrease of deferred income tax asset (“-“ for
-4,492,779.69 -1,674,888.70
increase)
Increase of deferred income tax asset (“-“ for
201,267.35 442,333.36
increase)
Decrease of inventory (“-“ for increase) -358,335,093.96 -9,025,857.85
Decrease of operational receivable items (“-“ for
-106,160,080.05 -116,350,428.69
increase)
Increase of operational receivable items (“-“ for
141,821,176.57 58,070,386.94
decrease)
Others -12,212,019.59 0.00
Cash flow generated by business operations, net -268,552,729.61 1,089,862.59
2. Major investment and financing operation not
-- --
involving with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 246,577,937.02 247,623,800.14
Less: Initial balance of cash 285,237,255.38 240,167,372.86
Add: Ending balance of cash equivalents 80,600,000.00
Less: Ending balance of cash equivalents 0.00
Net increase in cash and cash equivalents 41,940,681.64 7,456,427.28
(2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
Supplementary information Amount occurred in the Occurred in previous period
current period
I. Acquisition of subsidiaries and businesses -- --
II. Disposal of subsidiaries and businesses -- --
(3) Composition of cash and cash equivalents
In RMB
Items Closing amount Opening amount
I. Cash 246,577,937.02 285,237,255.38
Including: Cash in stock 15,392.46 17,785.62
Bank savings can be used at any time 246,562,544.56 247,606,014.52
2. Cash equivalents 80,600,000.00 0.00
3. Balance of cash and cash equivalents at end of
327,177,937.02 285,237,255.38
term
Notes to supplementary data of cash flow statement
The Company held reverse re-purchased treasury bonds of RMB80.6 million with a short tern and
strong liquidity at the end of the report period. It is easy to be converted into cash. Therefore, the
risk of value fluctuation is minor and the bonds comply with the definition of cash equivalent.
Therefore, it is treated as cash equivalent in consolidated statements.
48. Notes to statement of change in owners’ equity
No name and adjusted amount of the items of previous year, and retrospective adjustment on
merger of entities under common control
VIII Related parties and transactions
1. Parent of the Company
Share of
Voting Ultimate
the
Legal power of holder of
Relations Ownersh Registere Registere parent Organiza
Parent represent Business the the
hip ip type d address d capital co. in the tion code
ative parent Compan
Compan
company y
y
Shenzhen
Banglin
Controlli
Technolo Industrial
ng Ltd. Shenzhe Chen Xiong 7298400
gies investme 3,000.00 9.09% 9.09%
sharehol liability n Jinwu Jianming 5-5
Develop nt
der
ment
Co., Ltd.
Shenzhen Controlli Ltd. Shenzhe Wang Industrial 1,978.09 Xiong 7298445
2.36% 2.36%
Shilihe ng liability n Shenggu investme 92 Jianming 0-7
Investme sharehol o nt
nt Co., der
Ltd.
Controlli
Shengjiu Industrial 5904668
ng Ltd. Hong Xiong HKD1.0 Xiong
Investme investme 4.75% 4.75% 3-000-10
sharehol liability Kong Jianming 0 Jianming
nt Ltd. nt -13-1
der
Particulars about the parent of the Company
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
Type of Ownershi Registered Registered Sharehold Proportion Organizati
Subsidiary representa Business
subsidiary p type address capital ing of votes on code
tive
Designing
,
Shenzhen
manufactu
Fangda Controlled
Ltd. Xiong ring, and 310,000,0 19244418
Jianke subsidiari Shenzhen 100.00% 100.00%
liability Jianwei installatio 00.00 -2
Group es
n of
Co., Ltd.
curtain
walls
Design,
R&D,
installatio
Shenzhen
n and
Fangda Controlled
Ltd. sales of 105,000,0 75425429
Automatic subsidiari Shenzhen Lin Kebin 100.00% 100.00%
liability railway 00.00 -3
System es
transport
Co., Ltd.
screen
door
systems
Shenzhen Controlled Sino-forei Yang Productio USD3,200 61929454
Shenzhen 100.00% 100.00%
Fangda subsidiari gn joint Xioazhua n and ,000.00 -0
Yide New es venture n distributio
Material n of
Co., Ltd. new-type
composite
materials
Productio
joint n and
venture by sales of
the new-type
Fangda
Company materials
New Controlled Yang
and composite USD12,00 74852611
Materials subsidiari Nanchang Xioazhua 100.00% 100.00%
companies materials 0,000.00 -7
(Jiangxi) es n
in Taiwan, and
Co., Ltd.
Hong productio
Kong or n of
Macao curtain
walls
Design,
productio
Ltd. n, sales
liability and
(joint installatio
Jiangxi venture by n of
Fangda the curtain
Controlled Yang
New Type Company wall 20,000,00 15830664
subsidiari Nanchang Xioazhua 100.00% 100.00%
Aluminu and aluminiu 0.00 -0
es n
m Co., domestic m
Ltd. and materials,
overseas doors,
companies windows
) and
sectional
materials
Hong
Kong Controlled BODY 3007554-
Hong Investmen HKD10,0
Junjia subsidiari CORPOR 100.00% 100.00% 2000-04-1
Kong t 00.00
Group es ATE 0-4
Co., Ltd.
Shenyang Manufact
Fangda uring of
Controlled
Semi-con Ltd. Wang semicond 200,000,0 66254891
subsidiari Shenyang 64.58% 64.58%
ductor liability Shengguo uctor 00.00 -3
es
Lighting lighting
Co., Ltd. material
and chips;
lighting
source
encapsulat
ion;
developin
g,
designing,
manufactu
ring,
engineerin
g,
installatio
n and
trading of
semicond
uctor
lighting
system
Developin
g of
Ltd. hardware
Shenzhen liability and
Controlled
Kexunda (Sole software, 1,000,000. 58409491
subsidiari Shenzhen Lin Kebin 100.00% 100.00%
Software investmen system 00 -9
es
Co., Ltd. t by legal integratio
person) n,
technical
consulting
Developm
ent and
operating
of real
estate on
Shenzhen Ltd.
land of
Fangda liability
Controlled which
Property (Sole 10,000,00 05895223
subsidiari Shenzhen Lin Kebin land use 100.00% 100.00%
Developm investmen 0.00 -1
es right is
ent Co., t by legal
legally
Ltd. person)
obtained
by the
Company;
property
managem
ent
3. Joint ventures and affiliates
Property
Name of Legal of voting
Ownershi Registered Registered Sharehold Relationsh Organizati
invested representa Business rights of
p type address capital ing ip on code
entity tive the
Company
1. Joint venture
2. Associate
Domestic
trade
investmen
t
managem
ent;
investmen
Shenzhen t
Ganshang consulting
Xiong RMB49 08014099
Joint Co., Ltd. Shenzhen ; 20.40% 20.40% Associate
Jianming million 3
Investmen enterprise
t Co., Ltd. managem
ent
consulting
; equity
investmen
t; assets
managem
ent
4. Other related parties
5. Related transactions
(1) No purchasing of goods and services
(2) No related trusteeship or contracting
(3) No related leasing
(4) No related guarantees
(5) No capital borrowing with related parties
(6) No asset transferring and debt reconstruction with related parties
(7) No other related transactions
6. No receivable and payables due with related parties
IX Contingencies
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on
the financial position
Plaintiff Defender Case Court Target Progress
amount
Wang Weihong Fangda Jianke Engineering The 1st Middle RMB17.07 Trial of
dispute Court of million and second
Chongqing its interest instance
Note: In 2010, Wang Weihong sued to the 1st Middle Court of Chongqing against Fangda Jianke –
one of the Company’s subsidiaries, claiming for payment RMB17 million project payment and
interest, while Fangda Jianke claimed RMB18 million of project payment and related loss. The
first instance judged that Fangda Jianke pays the engineering amount RMB14 million to Wang
Weihong. Fangda Jianke and Wang Weihong both appealed against the decision. The second
instance is received but no court session is opened. Currently, the evidence questioning is
completed and is yet to enter the court trial. An amount of RMB12 million in the bank account of
Fangda Jianke has been frozen by the court.
2. Contingent liabilities formed by providing of guarantee to other companies’ debts and
their influences on financial situation
The Company has provided bank loan guarantees for the following subsidiaries by June 30, 2014:
X Commitments
1. No major commitments
2. No fulfilling of commitments made in previous periods
XI Post-balance-sheet events
1. No note to material post-balance-sheet events
2. Notes to profit distribution in post balance sheet period
3. Notes to other issues in post balance sheet period
On July 10, 2014, the Company incorporated Shenzhen Fangda New Energy Co., Ltd and planned
to invest RMB100 million to develop solar energy PV applications, PV construction and LED
industry. On July 18, 2014, Shenzhen Fangda New Energy Co., Ltd. entered into an agreement
with Luo Huichi to acquire 60% stakes in three LED lighting companies controlled by Luo and
established Guangdong Fangda SOZN Lighting Co., Ltd. to operate LED lighting products.
XII Other material events
1. No non-monetary asset exchange
2. No debt reconstruction
3. No enterprise merger
5. Leasing
The Company leases investment real estates and obtained a lease income of RMB12,305,300
million in the report period.
5. No financial instruments issued to outside, convertible to shares at the end of the report
period
6. Assets and liabilities measured at fair value
In RMB
Accumulative
Gain/loss caused changes in fair Impairment
Items Opening amount by changes in value accounting provided in the Closing amount
fair value into the income period
account
Financial assets
Investment real estate 174,778,756.62 163,615,954.05
Total 174,778,756.62 163,615,954.05
Financial liabilities 0.00 0.00
7. Foreign currency financial assets and liabilities
In RMB
Accumulative
Gain/loss caused changes in fair Impairment
Items Opening amount by changes in value accounting provided in the Closing amount
fair value into the income period
account
Financial assets
3. Loans and
15,966,346.17 3,468,762.00
receivables
Subtotal 15,966,346.17 3,468,762.00
Financial liabilities 15,966,346.17 3,468,762.00
8. No annuity plan implemented
9. Others
XIII Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable
In RMB
Closing amount Opening amount
Remaining book Bad debt Remaining book Bad debt
value provision value provision
Type
Amount Propo Amount Prop Amount Proport Amount Prop
rtion ortio ion ortio
n n
Account receivable for which bad debt provision is made by group
Including: receivable 623,154.11 100.0 18,694.62 3.00 623,154.11 100.00 18,694.62 3.00
out of the 0% % % %
consolidation
Subtotal 623,154.11 100.0 18,694.62 3.00 623,154.11 100.00 18,694.62 3.00
0% % % %
Total 623,154.11 -- 18,694.62 -- 623,154.11 -- 18,694.62 --
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 Bad debt Remaining book value Bad debt
Age
Amount Proport provision Amount Proport provision
ion ion
Less than 1 year
Including -- -- -- -- -- --
:
Less than 623,154.11 100.00 18,694.62 623,154.11 100.00 18,694.62
1 year % %
Subtotal 623,154.11 100.00 18,694.62 623,154.11 100.00 18,694.62
for less % %
than 1
year
Total 623,154.11 -- 18,694.62 623,154.11 -- 18,694.62
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) No written-back or recovered account receivable during the report period
(3) No written-off account receivable during the report period
(4) No shareholder holding 5% or above shares with voting rights of the Company owes any
account receivable to the Company at the end of period.
(5) Nature and description of major other account receivable
(6) Top 5 account receivable entities
In RMB
Entity Relationship Amount Term Percentage in the
with the total account
Company receivable
Sky Solutions Non-affiliated 105,171.00 Less than 1 year 16.88%
party
Shenzhen Aidong Non-affiliated 79,087.50 Less than 1 year 12.69%
Investment party
Shenzhen Gaojian Non-affiliated 68,979.55 Less than 1 year 11.07%
Industrial Co., Ltd. party
Shenzhen Dianlitong Non-affiliated 67,332.04 Less than 1 year 10.81%
Technologies Co., Ltd. party
Shenzhen Fuchuangtong Non-affiliated 53,207.88 Less than 1 year 8.54%
Technology Co., Ltd. party
Total -- 373,777.97 -- 59.99%
(7) No account receivable from affiliates
(8) Amount of receivable transferred but not satisfying the conditions of termination
recognition is RMB0.00.
(9) No securitization of assets of receivables
2. Other receivables
(1) Other receivables
In RMB
Closing amount Opening amount
Remaining book value Bad debt Remaining book Bad debt
provision value provision
Type Amount Propo Amount Pro Amount Pro Amount Pro
rtion por por por
tio tio tio
n n n
Other receivables for which bad debt provision is made by group
Including: receivable 1,738,196.00 0.15% 565,951.9 32.5 1,900,854. 0.33 619,111. 32.
out of the 7 6% 89 % 55 57
consolidation %
Receivable accounts 587,038,622.7 49.93 0.00 0.00 570,338,91 99.66
consolidated 5 % % 6.39 %
Subtotal 588,776,818.7 50.07 565,951.9 0.10 572,239,77 99.99 619,111. 0.1
5 % 7 % 1.28 % 55 1%
Other receivables with 77,046.00 0.01% 77,046.00 100. 77,046.00 0.01 77,046.0 10
minor individual 00% % 0 0.0
amount and bad debt 0%
provision provided
individually
Total 588,853,864.7 -- 642,997.9 -- 572,316,81 -- 696,157. --
5 7 7.28 55
Notes to other receivables
Bad debt provision is made for consolidated receivables using the separate testing method.
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
Age Closing amount Opening amount
Remaining book value Remaining book value
Bad debt
Propor Propor Bad debt provision
Amount provision Amount
tion tion
Less than 1 year
Including: -- -- -- -- -- --
Less than 1 27.11 26.08
471,272.11 14,138.16 495,648.00 14,869.44
year % %
Subtotal for
27.11 26.08
less than 1 471,272.11 14,138.16 495,648.00 14,869.44
% %
year
11.46
1-2 years 199,120.35 19,912.04 144,403.35 7.60% 14,440.34
%
10.68
2-3 years 10,000.00 0.58% 3,000.00 203,000.00 60,900.00
%
60.86 55.64
Over 3 years 1,057,803.54 528,901.77 1,057,803.54 528,901.77
% %
Total 1,738,196.00 -- 565,951.97 1,900,854.89 -- 619,111.55
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) No written-back or recovered other receivables during the report period
Bad debt provision for other receivables with major individual amount or with minor individual
amount but independent impairment test
In RMB
Remaining book
Description Bad debt amount Provision rate Reason
value
Civil Center
4,000.00 4,000.00 100.00%
(security)
Baishida Garden
(Chen Rui) 4,500.00 4,500.00 100.00%
(security)
Chonqing Fangda
44,546.00 44,546.00 100.00%
(security)
Shenzhen
Geotechnical
24,000.00 24,000.00 100.00%
Engineering Co.,
Ltd.
Total 77,046.00 77,046.00 -- --
(3) No written-off other receivables during the report period
(4) No shareholder holding 5% or above shares with voting rights of the Company owes any
other receivable to the Company at the end of period.
(5) Nature and description of major other receivables
(6) Top 5 other receivable entities
In RMB
Relationship with the Percentage in the
Entity Amount Term
Company total other receivables
Fangda Jianke Subsidiary 241,501,303.36 Less than 1 year 41.01%
Fangda Property Subsidiary 182,067,564.01 Less than 1 year 30.92%
Fangda Automatic Subsidiary 81,364,292.21 Less than 1 year 13.82%
Fangda Jiangxi New
Subsidiary 41,672,943.73 Less than 1 year 7.08%
Material
Hong Kong Junjia Subsidiary 30,473,194.50 1-3 years 5.18%
Total -- 577,079,297.81 -- 98.01%
(7) Other receivables from affiliates
In RMB
Relationship with the Percentage in the total other
Entity Amount
Company receivables
Fangda Jianke Subsidiary 241,501,303.36 41.01%
Fangda Property Subsidiary 182,067,564.01 30.92%
Fangda Automatic Subsidiary 81,364,292.21 13.82%
Fangda Jiangxi New
Subsidiary 41,672,943.73 7.08%
Material
Hong Kong Junjia Subsidiary 30,473,194.50 5.18%
Shenyang Fangda Subsidiary 7,545,524.99 1.28%
Kexunda Co. Subsidiary 2,413,799.95 0.41%
Total -- 587,038,622.75 99.70%
(8) Amount of other account receivable transferred but not satisfying the conditions of
termination recognition is RMB0.00.
(9) No securitization of assets of other receivables
3. Long-term share equity investment
In RMB
Investe Audit Invest Endin Chang Closin Share Propor Notes Impair Provis Cash
d entity meth ment g e g holdin tion of to ment ion divide
od cost balanc balanc g in voting incons provis made nd in
e e the rights istenc ion in this the
invest in the e period period
ed invest betwe
entity ed en the
entity shareh
olding
and
voting
right
propor
tion
①
In
vestme
nt in
subsidi
aries
Fangda Cost 305,00 305,00 305,00 98.39 98.39
Jianke 0,000. 0,000. 0,000. % %
00 00 00
Fangda Cost 19,800 19,800 19,800 99.00 99.00 19,800
Alumin ,000.0 ,000.0 ,000.0 % % ,000.0
ium 0 0 0 0
Fangda Cost 19,907 19,907 19,907 75.00 75.00 19,907
Yide ,760.0 ,760.0 ,760.0 % % ,760.0
0 0 0 0
HK Cost 10,600 10,600 10,600 100.00 100.00 10,600
Junhjia .00 .00 .00 % % .00
Fangda Cost 170,38 170,38 170,38 94.08 94.08
Automa 5,071. 5,071. 5,071. % %
tic 73 73 73
Fangda Cost 74,496 74,496 74,496 75.00 75.00
New ,600.0 ,600.0 ,600.0 % %
Materia 0 0 0
l
Shenya Cost 109,56 108,85 108,85 64.58 64.58
ng 0,000. 2,073. 2,073. % %
Fangda 00 85 85
Kexund Cost 1,000, 1,000, 1,000, 100.00 100.00
a 000.00 000.00 000.00 % %
Fangda Cost 50,000 50,000 50,000 100.00 100.00
Propert ,000.0 ,000.0 ,000.0 % %
y 0 0 0
②
Investm
ent in
affiliate
s
Shenzh Equit 10,000 9,994, -41,80 9,952, 20.40 20.40
en y ,000.0 565.55 7.57 757.98 % %
Gansha 0
ng Joint
Investm
ent Co.,
Ltd.
Total -- 760,16 759,44 -41,80 759,40 -- -- -- 39,718
0,031. 6,671. 7.57 4,863. ,360.0
73 13 56 0
Notes to long-term share equity investment
4. Operational revenue and costs
(1) Turnover
In RMB
Items Amount occurred in the current period Occurred in previous period
Other business income 14,332,254.25 23,580,401.58
Total 14,332,254.25 23,580,401.58
Operation cost 2,129,602.96 4,742,190.07
(2) Business segments (on industries)
In RMB
Amount occurred in the current period Occurred in previous period
Industry
Turnover Operation cost Turnover Operation cost
(3) Business segments (by products)
In RMB
Amount occurred in the current period Occurred in previous period
Product
Turnover Operation cost Turnover Operation cost
(4) Business segments (by regions)
In RMB
Region Amount occurred in the current period Occurred in previous period
Turnover Operation cost Turnover Operation cost
(5) Revenue from top five customers
In RMB
Percentage in total
Customer Total operating revenue turnover of the
Company %
No.1 2,513,379.90 17.54%
No.2 717,653.73 5.01%
No.3 590,879.96 4.12%
No.4 516,862.69 3.61%
No.5 537,795.30 3.75%
Total 4,876,571.58 34.03%
Notes to operating revenue
5. Investment income
(1) Details of investment gains
In RMB
Amount occurred in the
Items Occurred in previous period
current period
Gains from long-term equity investment measured
-41,807.57
by equity
Total -41,807.57
(2) Gains from long-term equity investment measured by costs
In RMB
Amount occurred
Occurred in Reason for change from the
Invested entity in the current
previous period previous period
period
(3) Gains from long-term equity investment measured by equity
In RMB
Amount occurred
Occurred in Reason for change from the
Invested entity in the current
previous period previous period
period
Shenzhen Ganshang Joint Investment
-41,807.57 0.00
Co., Ltd.
Total -41,807.57 0.00 --
6. Supplementary data of cash flow statement
In RMB
Amount of the Current Amount of the Previous
Supplementary information
Term Term
1. Net profit adjusted to cash flow of business operation -- --
Net profit -3,546,940.73 4,182,618.87
Plus: Asset impairment provision -53,159.58 14,817.75
Fixed asset depreciation, gas and petrol depreciation,
1,075,663.40 1,665,113.65
production goods depreciation
Amortization of intangible assets 203,055.90 333,612.30
Amortization of long-term amortizable expenses 20,831.94 10,482.19
Loss from disposal of fixed assets, intangible assets, and
14,040.00 34,285.02
other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 113,701.67
Loss from fair value fluctuation (“-“ for gains) 0.00
Financial expenses (“-“ for gains) 5,593,430.00 2,220,824.92
Investment losses (“-“ for gains) 41,807.57
Decrease of deferred income tax asset (“-“ for increase) -1,295,729.02 552,106.63
Increase of deferred income tax asset (“-“ for increase) 194,967.35 442,333.36
Decrease of inventory (“-“ for increase) 0.00
Decrease of operational receivable items (“-“ for increase) -190,527,168.37 133,114,979.09
Increase of operational receivable items (“-“ for decrease) -110,161,986.92 -23,492,415.59
Others 0.00
Cash flow generated by business operations, net -298,327,486.79 119,078,758.19
2. Major investment and financing operation not involving
-- --
with cash
3. Net change of cash and cash equivalents -- --
Balance of cash at period end 7,226,550.00 97,607,953.57
Less: Initial balance of cash 67,973,808.76 25,540,604.84
Net increase in cash and cash equivalents -60,747,258.76 72,067,348.73
XIV Supplementary Materials
1. Detailed accidental gain/loss
In RMB
Items Amount Notes
Non-current asset disposal gain/loss (including the
write-off part for which assets impairment provision is -1,351,811.27
made)
Subsidies accounted into the current income account
158,595.54
(except the government subsidy closely related to the
enterprise’s business and based on unified national
standard quota)
Other non-business income and expenditures other than
1,646,215.46
the above
Other gain/loss items satisfying the definition of Gains from reverse
1,010,926.07
non-recurring gain/loss account repurchase of treasury bonds
Less: Influenced amount of income tax 363,515.94
Total 1,100,409.86 --
Government subsidies included in current gain/loss are recurrent profit and loss items:
Items Amount Reason
It is related to the Company’s business. The amount is
Tax refunded related to
526,615.39 refunded to the Company according to the tax rate provided
software products
by the taxation administration.
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 Net profit attributable to the shareholders
of the listed company of the listed company
This period Last period Closing amount Opening amount
On Chinese accounting
40,769,958.24 39,361,593.42 1,178,738,091.94 1,160,639,730.85
standards
Items and amounts adjusted according International Accounting Standards
Capitalization of
0.00 0.00 4,763,398.24 4,763,398.24
borrowing expenses
On international
40,769,958.24 39,361,593.42 1,183,501,490.18 1,165,403,129.09
accounting standards
2. 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 Net profit attributable to the shareholders
of the listed company of the listed company
This period Last period Closing amount Opening amount
On Chinese accounting
40,769,958.24 39,361,593.42 1,178,738,091.94 1,160,639,730.85
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 earnings per share
In RMB
Earnings per share
Weighted average net
Profit of the report period Basic earnings per Diluted earnings per
income/asset ratio
share share
Net profit attributable to common
3.49% 0.05 0.05
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of 3.39% 0.05 0.05
non-recurring gains/losses
4. Irregular situation and causes of items in the financial statements
Items Closing amount Opening Change Cause of change
amount
Notes 10,729,852.00 21,898,770.43 -51.00% Caused by endorsement received
receivable
Inventory 786,872,945.78 428,537,851.82 83.62% Fangda Town reclaimed the land use
right and recognize the land transfer
amount according to the land transfer
contract.
Other current 89,808,955.68 0.00 Mainly the residual amount of the
assets reverse treasury bond repurchase
Other 25,478,789.90 15,978,789.90 59.45% House prepayment to Tianjin Wanda
non-current Center Investment Company
assets
Short-term 725,000,000.00 369,000,000.00 96.48% Additional financing demand
loans
Account 650,805,706.90 489,216,140.32 33.03% Unpaid Fangda Town land transfer
payable payment
Employees’ 17,028,555.42 30,182,851.80 -43.58% 2013 bonus paid
wage payable
Items Amount of the Amount of the Change Cause of change
Current Term Previous Term
Non-business 2,061,903.28 672,299.16 206.69% Increase in loss due to disposal of fixed
expenses assets
Income tax 4,362,903.54 7,795,908.42 -44.04% Decrease in differed income tax
expenses
Other cash 47,867,585.96 24,853,131.88 92.60% Caused by increase in operation deposit
received from paid
business
operation
Cash paid for 852,304,489.33 596,363,985.36 42.92% Fangda Town land transfer payment
purchasing
products and
services
Cash flow -268,552,729.61 1,089,862.59 -24740.97% Increase in the development cost of
generated by Fangda Plaza and slow recovery of
business accounts receivable
operations, net
