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方大B:2014年第三季度报告全文(英文版)(已取消)2014-10-15  

						                  China Fangda Group Co., Ltd. 2014 Third Quarter Report




China Fangda Group Co., Ltd.

  2014 Third Quarter Report




        October 2014




                                                                      1
                                                                China Fangda Group Co., Ltd. 2014 Third Quarter Report




                                      I Important Statement

     The members of the Board and the Company guarantee that the quarterly report is free from any false
information, misleading statement or material omission and are jointly and severally liable for the information’s
truthfulness, accuracy and integrity.
    All the Directors have attended the meeting of the board meeting at which this report was examined.
     Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief Financial Officer, and Mr. Chen
Yonggang, the manager of accounting department declare: the Financial Report carried in this report is authentic
and completed.




                                                                                                                    2
                                                                                China Fangda Group Co., Ltd. 2014 Third Quarter Report




                  II Financial Highlight and Changes in Shareholders

1. Financial Highlight

The Company retroactively adjusts or restates financial statistics of the previous years because of changes in
account policies and correction of accounting errors.
□ Yes √ No
                                         End of the report period              End of last year                Year-on-year change

Total asset (RMB)                                     3,504,823,683.92               2,599,557,542.57                             34.82%

Net profit attributable to the
shareholders of the listed company                    1,197,232,829.31               1,160,639,730.85                               3.15%
(RMB)

                                                                                         Between beginning of
                                                                 Year-on-year change                               Change from the same
                                         This report period                              the year to the end of
                                                                         (%)                                          period last year
                                                                                           the report period

Turnover (yuan)                              500,074,083.72                    13.23%           1,322,866,822.74                  12.25%

Net profit attributable to
shareholders of the listed company             18,530,437.37                    6.79%             59,300,395.61                     4.56%
(yuan)

Net profit attributable to the
shareholders of the listed company
                                               14,035,814.91                   -15.40%      53,705,363.29                          -0.88%
and after deducting of
non-recurring gain/loss (RMB)

Net cash flow generated by
                                                 --                       --                    -354,082,741.68               -1,918.86%
business operation (RMB)

Basic earnings per share
                                                          0.03                 50.00%                       0.08                  14.29%
(yuan/share)

Diluted Earnings per share
                                                          0.03                 50.00%                       0.08                  14.29%
(yuan/share)

Weighted average net
                                                        1.56%                   0.05%                     5.05%                    -0.03%
income/asset ratio

Accidental gain/loss item and amount
√ Applicable □ Inapplicable
                                                                                                                                   In RMB

                                                                         Amount from beginning of
                                 Items                                   the year to the end of the                   Notes
                                                                                report period



                                                                                                                                            3
                                                                               China Fangda Group Co., Ltd. 2014 Third Quarter Report


Non-current asset disposal gain/loss (including the write-off part
                                                                                       -1,339,032.85
for which assets impairment provision is made)

Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprise’s business                        1,516,299.51
and based on unified national standard quota)

                                                                                                        Earns from financial products
Gain from entrusted investment or assets management                                       630,009.86
                                                                                                        purchased

Gain/loss from change of fair value of transactional financial
asset and liabilities, and investment gains from disposal of
transactional financial assets and liabilities and sellable financial                   2,279,889.00
assets, other than valid period value instruments related to the
Company’s common businesses

Other non-business income and expenditures other than the above                         1,918,197.11

Other gain/loss items satisfying the definition of non-recurring                                        Gains from reverse repurchase of
                                                                                        1,381,539.13
gain/loss account                                                                                       treasury bonds

Less: Influenced amount of income tax                                                     787,738.59

     Influenced amount of minority shareholders’ equity
                                                                                             4,130.85
(after-tax)

Total                                                                                   5,595,032.32                     --

Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
√ Applicable □ Inapplicable
              Items                         Amount                                               Reason

Gains from reverse repurchase
                                                  1,381,539.13 Gains from reverse repurchase of treasury bonds
of treasury bonds

                                                                 It is related to the Company’s business. The amount is refunded to the
Tax refunded related to
                                                  1,037,017.17 Company according to the tax rate provided by the taxation
software products
                                                                 administration.


2. Total number of shareholders and shareholding of top 10 shareholders by the end of the
report period

(1) Total number of common shareholders and shareholding of top 10 common shareholders by the end of
the report period

                                                                                                                                 In share
Number of shareholders of common
                                                                                                                                  46,740
shares at the end of the report period

                                                Top 10 Shareholders of Common Shares


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                                                                         China Fangda Group Co., Ltd. 2014 Third Quarter Report



                        Properties of                                        Conditional              Pledging or freezing
   Shareholder                            Shareholding   Number of shares
                        shareholder                                             shares          Share status         Amount

Shenzhen Banglin
                     Domestic
Technologies
                     non-state legal         9.09%          68,774,273            0               Pledged          32,510,000
Development Co.,
                     person
Ltd.

Shengjiu             Foreign legal
                                             4.75%          35,929,581            0
Investment Ltd.      person

                     Domestic natural
Huang Jupei                                  4.20%          31,801,000            0
                     person

                     Domestic natural
Zhou Shijian                                 2.79%          21,123,481            0
                     person

Shenzhen Shilihe     Domestic
Investment Co.,      non-state legal         2.36%          17,860,992            0
Ltd.                 person

                     Domestic natural
Zhao Bing                                    2.34%          17,699,000            0
                     person

                     Domestic natural
Wang Shaolin                                 1.82%          13,792,932            0
                     person

Bank of
Communication –
Huaan Chuangxin Others                       1.79%          13,555,026            0
Securities
Investment Fund

                     Domestic natural
Jiang Jing                                   1.41%          10,635,440            0
                     person

Harvest Fund –
CCB - Ping An
                     Others                  0.66%           5,029,358            0
Life Insurance
Company of China

                                        Top 10 shareholders of unconditional common shares

                                                                                                      Category of shares
               Shareholder                    Amount of unconditional common shares             Category of
                                                                                                                     Amount
                                                                                                   shares

Shenzhen Banglin Technologies                                                                RMB common
                                                            68,774,273                                             68,774,273
Development Co., Ltd.                                                                        shares

                                                                                             Foreign shares
Shengjiu Investment Ltd.                                    35,929,581                       listed in domestic    35,929,581
                                                                                             exchanges



                                                                                                                                5
                                                                           China Fangda Group Co., Ltd. 2014 Third Quarter Report


                                                                                               RMB common
Huang Jupei                                                  31,801,000                                              31,801,000
                                                                                               shares

                                                                                               RMB common
Zhou Shijian                                                 21,123,481                                              21,123,481
                                                                                               shares

Shenzhen Shilihe Investment Co.,                                                               RMB common
                                                             17,860,992                                              17,860,992
Ltd.                                                                                           shares

                                                                                               RMB common
Zhao Bing                                                    17,699,000                                              17,699,000
                                                                                               shares

                                                                                               RMB common
Wang Shaolin                                                 13,792,932                                              13,792,932
                                                                                               shares

Bank of Communication – Huaan
                                                                                               RMB common
Chuangxin Securities Investment                              13,555,026                                              13,555,026
                                                                                               shares
Fund

                                                                                               RMB common
Jiang Jing                                                   10,635,440                                              10,635,440
                                                                                               shares

Harvest Fund – CCB - Ping An Life                                                             RMB common
                                                             5,029,358                                                5,029,358
Insurance Company of China                                                                     shares

                                       Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
                                       Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Notes to top ten shareholder
                                       Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd. are related parties. The
relationship or "action in concert"
                                       Company is not notified of other action-in-concert or related parties among the other holders
                                       of current shares.

                                       Huang Jupei holds 31,800,000 stocks of the Company through the GF securities customer
Participation of top 10 unconditional credit transaction guarantee securities account; Zhou Shijian holds 21,123,481 stocks of the
common share shareholders in           Company through the GF securities customer credit transaction guarantee securities account;
securities margin trading (if any)     Zhao Bing holds 17,699,000 stocks of the Company through the Everbright Securities
                                       customer credit transaction guarantee securities account.

Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of
unconditional common shares in the report period
□ Yes √ No
No agreed re-purchasing is performed by the Company’s shareholders in the report period.

(2) Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end
of the report period

□ Applicable √ Inapplicable




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                                                                China Fangda Group Co., Ltd. 2014 Third Quarter Report




                                           III Significant Events

1. Major changes in accounting items and financial data in the report period and reasons

√ Applicable □ Inapplicable
            Items       Closing amount       Opening amount       Change                    Cause of change
                                                                                 Caused by increase in prepaid material
Prepayment               53,882,784.90        28,364,016.21        89.97%
                                                                                 fees for construction in progress
                                                                                 Caused in increase in investment of the
Inventory               864,763,972.63        428,537,851.82      101.79%        Fangda Town renovation project which
                                                                                 has entered the development stage
Goodwill                 25,322,869.47              -                 -          Caused by acquiring Guangdong SOZN
Other non-current                                                                House prepayment to Tianjin Wanda
                         33,656,151.10        15,978,789.90       110.63%
assets                                                                           Center Investment Company
Short-term loans        1,030,000,000.00      369,000,000.00      179.13%        Additional financing demand
                                                                                 Fangda Town land transfer payment
Account payable         707,401,426.32        489,216,140.32       44.60%
                                                                                 unpaid
                                                                                 Transfer of received engineering
Prepayment received      99,222,201.22        168,386,251.94      -41.07%
                                                                                 payment into income
Employees’ wage
                         18,479,501.68        30,182,851.80       -38.77%        2013 bonus paid
payable
Other payables           79,295,904.90        41,687,580.72        90.21%        Increase in bidding deposit received
                         Amount of the       Same period last
Items                                                             Change         Cause of change
                         Current Term             year
                                                                                 Caused by increase in previous
Asset impairment loss    10,104,141.91        14,625,807.80       -30.92%
                                                                                 receivable collected
Non-operating
                          5,679,197.28         4,196,811.56        35.32%        Increase in governmental subsidy
revenue
Non-business                                                                     Caused by increase in disposal of
                          2,546,716.34         992,003.35         156.72%
expenses                                                                         long-term asset losses
Income tax                7,021,212.14        12,371,750.46       -43.25%        Decrease in deferred income tax
Other cash received
from business            70,054,311.35        38,275,896.85        83.02%        Increase in bidding deposit received
operation
Cash paid for           1,297,947,089.10      941,055,438.35       37.92%        Caused in increase in development
purchasing products                                                              expenditure of the Fangda Town
and services                                                                     renovation project which has entered
                                                                                 the development stage
Cash paid to and for
                        160,019,118.12        121,844,649.34       31.33%        Increase in staff remuneration
the staff
Cash received from      100,000,000.00        20,000,000.00       400.00%        Increase in maturity of financial


                                                                                                                        7
                                                                   China Fangda Group Co., Ltd. 2014 Third Quarter Report


investment recovery                                                                 products
                                                                                    Caused by increase in the
Cash flows generated
                                                                                    development expenditure of Fangda
by operating              -358,608,957.87       19,467,237.44        -1942.12%
                                                                                    Town renovation project and delay
activities, net
                                                                                    in collection of accounts receivable
Cash paid for
construction of fixed
                                                                                    Increase in payment of long-term asset
assets, intangible        28,385,573.09         41,497,821.99         -31.60%
                                                                                    investment
assets and other
long-term assets
                                                                                    Purchase of financial products and
Cash paid as
                          116,340,675.00        21,000,000.00         454.00%       investment in Sino Oil and Gas
investment
                                                                                    Holdings Ltd
Cash received from
                          944,000,000.00        100,000,000.00        844.00%       Additional financing demand
borrowed loans
Cash paid to repay
                          283,000,000.00        110,000,000.00        157.27%       Repayment of short-term borrowing
debts
Cash paid as              52,661,058.83          30,971,678.77        70.03%        Increase in paid interest fee due to
dividend, profit, or                                                                increase in short-term borrowing
interests
     The Ministry of Financial has issued or amended the Enterprise Accounting Standard No.2 – Long-term
Stock Investment, Enterprise Accounting Standard No.9 – Staff Remuneration, Enterprise Accounting Standard
No.30 – Presentation of Financial Statements, Enterprise Accounting Standard No.33 – Consolidate Financial
Statements, Enterprise Accounting Standard No.39 – Measurement of Fair Value, Enterprise Accounting Standard
No.40 – Joint Venue Arrangement, Enterprise Accounting Standard No.41 – Disclosure of Interest in Other
Entities, Enterprise Accounting Standard No.37 – Presentation of Financial Tools, of which seven standards have
been implemented since July 1, 2014. Changes to the above-mentioned financial standards have no major impact
on the Company’s consolidated financial statements.
        (1) Long-term share equity investment
     1. According to the amended Enterprise Accounting Standard No.2 – Long-term Stock Investment, the
Company has no following circumstances. Consolidated financial statements are not affected and no retroactive
adjustment is needed:
    Impose substantial influence on invested entities or implement joint control due to increase in investment;
    (2) Lose joint control or substantial influence on invested entities due to disposal of part of investment
        2. According to the amended long-term stock investment standard, the Company has calculated the investment
in Shenzhen Ganshang Joint Investment Co., Ltd. using the interest method. The change in the owner’s interest in the
invested entity is a change in the net gain/loss rather than other owner's interest change other than comprehensive
income and profit allocation. The change has no impact on the consolidated financial statements and no retroactive
adjustment is needed.
         (2) Retirement pension program
     The Company has re-evaluated the staff remuneration according to the amended Enterprise Accounting
Standard No.9 – Staff Remuneration and no problem has been found in the benefit program and other long-term


                                                                                                                           8
                                                                                    China Fangda Group Co., Ltd. 2014 Third Quarter Report


staff remuneration. Therefore, the change has no impact on the consolidated financial statements and no retroactive
adjustment is needed.
       (3) Consolidation scope
    The Company has re-evaluated the scope of consolidated financial statements according to the Enterprise
Accounting Standard No.33 – Consolidated Financial Statements and no change has been found to the
consolidation scope according to the standard. Therefore, the change has no impact on the consolidated financial
statements and no retroactive adjustment is needed.
       (4) Joint venture arrangement
     According to Enterprise Accounting Standard No.40 – Joint Venue Arrangement, the Company has no joint
venture arrangement of any form. Therefore, the change has no impact on the consolidated financial statements and
no retroactive adjustment is needed.
       (5) Impacts of other standard changes
     In addition to the above-mentioned items, there is no impact on the Company’s financial statements caused
by new or amended enterprise accounting standards.

2. Progress of key issues and its impacts and solutions

√ Applicable □ Inapplicable
1. Progress of Fangda Town renovation project
     The Fangda Town renovation project undertaken by Shenzhen Fangda Property Development Co., Ltd., a
wholly-owned subsidiary of the Company, has been proceeded as scheduled since commencement on May 18 this
year. The project will complete by the end of this year.
2. Business progress of Shenzhen Fangda New Energy Co., Ltd.:
 No.                           Progress                      Date of announcement              Announcement            Media of disclosure
        Fangda New Energy and Luo Huichi                                            Announcement on Acquiring            China Securities
        (natural person) entered into an agreement                                  Zhongshan SOZN Lighting Co.,        Journal, Shanghai
  1                                                              July 22, 2014
        to acquire a LED company controlled by                                      Ltd. and LED Lighting Business       Securities Daily,
        Luo                                                                         of Its Affiliates                   Securities Times,
                                                                                    Announcement of the Strategic          HKCD and
        The Company and Shenzhen BOC signed
                                                                                    Cooperation Agreement entered      www.cninfo.com.cn
  2     a     strategic        cooperation      framework        July 23, 2014
                                                                                    into between the Company and
        agreement.
                                                                                    Shenzhen BOC
        the Company entered into the new energy                                     Announcement of Signing the
        PV      project        cooperation      framework                           New Energy PV Project
  3     agreement     with        Information     Industry     August 14, 2014      Cooperation Framework
                          th
        Electronics 11          Design Institute Sci &                              Agreement
        Tech Engineering Co., Ltd.


3. Commitments of shareholders with over 5% of shares made in the report term or carried
over from previous terms

□ Applicable √ Inapplicable


                                                                                                                                             9
                                                                                      China Fangda Group Co., Ltd. 2014 Third Quarter Report


The Company and shareholders with more than 5% stakes in the Company made no guarantee in the report period
or before report period but remaining effective in the report period.

4. Forecast of operating performance in 2014

Warning and reasons of possible net loss or substantial change from the last period between the beginning of the
year and the end of the next report period
□ Applicable √ Inapplicable

5. Securities investment

√ Applicable □ Inapplicable
                                                  Number
                                                                           Number
                                                  of shares
                                                                           of shares                Closing
                                     Initial       held at       Opening                 Closing
                        Abbreviat                                           held at                   book      Gain/loss Accounti
Securities    Code                  investmen beginning sharehold                       sharehold                                       Source
                              ion                                          end of the                value      (RMB)       ng item
                                      t cost       of the          ing                     ing
                                                                            period                   (RMB)
                                                   period
                                                                            (share)
                                                   (share)

                        Sino Oil                                                                                           Transacti
             (HK)       and Gas     16,263,67                              100,000,0                18,543,56 2,279,889 onal
Stock                                                        0     0.00%                   0.66%                                       Purchase
             00702      Holdings           5.00                                   00                     4.00        .00 financial
                        Ltd                                                                                                assets

                                    16,263,67                              100,000,0                18,543,56 2,279,889
Total                                                        0     --                       --                                 --         --
                                           5.00                                   00                     4.00        .00

Disclosure date of approval by
the Board of Directors of           None
securities investment

Disclosure date of securities
investment approval by the          None
Shareholders’ Meeting (if any)

Notes to shareholding in other listed companies
□ Applicable √ Inapplicable
The Company holds no stock of other list companies in the report period.

6. Derivative investment

√ Applicable □ Inapplicable
                                                                                                                               In RMB10,000




                                                                                                                                                 10
                                                                                   China Fangda Group Co., Ltd. 2014 Third Quarter Report


                                                                                                                               Proportio
                                                                                                                                 n of
                                                                                                                                closing
Derivativ                                                                                                                      investmen    Actual
                                                                                                    Impairme
       e                   Related                                                    Initial                       Closing    t amount gain/loss
              Relations                             Initial                                            nt
investme                  transactio     Type                 Start date End date investmen                        investmen     in the     in the
                 hip                               amount                                           provision
    nt                         n                                                     t amount                      t amount     closing     report
                                                                                                    (if any)
 operator                                                                                                                      net assets   period
                                                                                                                                 in the
                                                                                                                                report
                                                                                                                                period

Shanghai
                                       Shanghai               May 5,    July 23,
Futures     None          No                       1,459.21                                     0              0          0       0.00%     219,400
                                       aluminum               2014      2014
Exchange

Total                                              1,459.21      --           --                0              0          0       0.00%     219,400

Capital source                                    Self-owned fund

Lawsuit (if any)                                  Inapplicable

Disclosure date of derivative investment
                                                  None
approval by the Board of Directors (if any)

Disclosure date of derivative investment
approval by the Shareholders’ Meeting (if        None
any)

                                                  To prevent the risk of fluctuation of raw material prices, the Company adopted the
Risk analysis and control measures for the
                                                  aluminum futures exchanged at the domestic futures exchange to provide hedging for
derivative holding in the report period
                                                  aluminum as a raw material for the Company. The Company has set up and
(including without limitation market,
                                                  implemented the Provincial Regulations on China Fangda Group Domestic Futures
liquidity, credit, operation and legal risks)
                                                  Hedging to prevent risks.

Changes in the market price or fair value
of the derivative in the report period, the
                                                  The fair value of the derivative should be calculated with the open quotation of the
analysis of the derivative’s fair value
                                                  futures market and should be reviewed regularly to ensure effective hedging.
should disclose the method used and
related assumptions and parameters.

Material changes in the accounting policies
and rules related to the derivative in the        No
report period compared to last period

Opinions of independent directors on the
Company’s derivative investment and risk None
controlling




                                                                                                                                                     11
                                                               China Fangda Group Co., Ltd. 2014 Third Quarter Report


7. Reception of investigations, communications, or interviews in the reporting period

√ Applicable □ Inapplicable
                                                                                          Main content involved and
    Time/date            Place            Way           Visitor             Visitor
                                                                                             materials provided

                                 Onsite                               Hong Yuan          Business and future
September 3, 2014 Shenzhen                       Institution
                                 investigation                        Securities         development




                                                                                                                  12
                                                                    China Fangda Group Co., Ltd. 2014 Third Quarter Report




                                         IV Financial Statements

1. Financial statements

1. Consolidated Balance Sheet

Prepared by: China Fangda Group Co., Ltd.
                                                                                                                  In RMB
                  Items                        Closing balance                              Ending balance

Current asset:

     Monetary capital                                       571,439,392.82                                333,876,921.97

     Settlement provision

     Outgoing call loan

     Financial assets measured at fair
value with variations accounted into                             18,543,564.00
current income account

     Notes receivable                                            25,394,667.10                               21,898,770.43

     Account receivable                                    1,031,801,555.08                               898,780,981.93

     Prepayment                                                  53,882,784.90                               28,364,016.21

     Insurance receivable

     Reinsurance receivable

     Provisions of Reinsurance
contracts receivable

     Interest receivable                                                                                        36,387.50

     Dividend receivable

     Other receivables                                           61,753,786.13                               66,298,730.17

     Repurchasing of financial assets

     Inventory                                              864,763,972.63                                428,537,851.82

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                                         9,622,154.59

Total current assets                                       2,637,201,877.25                             1,777,793,660.03

Non-current assets:

     Disburse of consigned loans

     Sellable financial assets


                                                                                                                        13
                                                  China Fangda Group Co., Ltd. 2014 Third Quarter Report


     Investment held until mature

     Long-term receivable

     Long-term share equity investment         9,897,005.88                               9,994,565.55

     Investment real estate                  189,280,840.99                             195,249,069.13

     Fixed assets                            461,739,619.77                             462,930,269.98

     Construction in process                     282,151.59                                 940,841.00

     Engineering materials

     Disposal of fixed assets                     32,625.31                                 177,298.11

     Productive biological assets

     Gas & petrol

     Intangible assets                        94,807,737.66                              91,527,650.52

     R&D expense

     Goodwill                                 25,322,869.47

     Long-term amortizable expenses             4,119,165.99                              3,799,354.79

     Deferred income tax assets               48,483,638.91                              41,166,043.56

     Other non-current assets                 33,656,151.10                              15,978,789.90

Total of non-current assets                  867,621,806.67                             821,763,882.54

Total of assets                             3,504,823,683.92                          2,599,557,542.57

Current liabilities

     Short-term loans                       1,030,000,000.00                            369,000,000.00

     Loans from Central Bank

     Deposit received and held for
others

     Call loan received

     Financial liabilities measured at
fair value with variations accounted into
current income account

     Notes payable                           194,163,378.47                             188,570,850.63

     Account payable                         707,401,426.32                             489,216,140.32

     Prepayment received                      99,222,201.22                             168,386,251.94

     Selling of repurchased financial
assets

     Fees and commissions payable

     Employees’ wage payable                 18,479,501.68                              30,182,851.80

     Taxes payable                            59,656,349.92                              44,839,947.77



                                                                                                     14
                                                   China Fangda Group Co., Ltd. 2014 Third Quarter Report


       Interest payable                         1,092,483.32                                 689,153.75

       Dividend payable

       Other payables                          79,295,904.90                              41,687,580.72

       Reinsurance fee payable

       Insurance contract provision

       Entrusted trading of securities

       Entrusted selling of securities

       Liabilities held for sales

       Non-current liabilities due in 1
year

       Other current liabilities

Total current liabilities                    2,189,311,245.83                          1,332,572,776.93

Non-current liabilities:

       Long-term loans

       Bond payable

       Long-term payable

       Special payables

       Anticipated liabilities

       Deferred income tax liabilities         40,930,880.10                              40,656,763.97

       Other non-current liabilities           10,107,506.78                              10,255,823.93

Total of non-current liabilities               51,038,386.88                              50,912,587.90

Total liabilities                            2,240,349,632.71                          1,383,485,364.83

Owners’ equity (or shareholders’
equity)

       Capital paid in (or share capital)     756,909,905.00                             756,909,905.00

       Capital reserves                        79,191,052.01                              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                        314,742,730.09                             278,149,631.63

       Difference caused by translation of
foreign currency statements

Total of owner’s equity belong to the
                                             1,197,232,829.31                          1,160,639,730.85
parent company



                                                                                                      15
                                                                            China Fangda Group Co., Ltd. 2014 Third Quarter Report


     Minor shareholders’ equity                                         67,241,221.90                               55,432,446.89

Total of owners’ equity (or
                                                                   1,264,474,051.21                             1,216,072,177.74
shareholders’ equity)

Total of liability and owners’ equity (or
                                                                   3,504,823,683.92                             2,599,557,542.57
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                                               220,495,414.35                                   68,223,808.76

     Financial assets measured at fair
value with variations accounted into
current income account

     Notes receivable

     Account receivable                                                    604,459.49                                  604,459.49

     Prepayment                                                             33,962.26                                  218,984.07

     Interest receivable

     Dividend receivable                                                                                             39,356,000.00

     Other receivables                                              531,945,499.80                                571,620,659.73

     Inventory

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                                                  702,381.34

Total current assets                                                753,781,717.24                                680,023,912.05

Non-current assets:

     Sellable financial assets

     Investment held until mature

     Long-term receivable

     Long-term share equity investment                              944,692,404.46                                719,728,311.13

     Investment real estate                                         163,615,954.05                                174,778,756.62

     Fixed assets                                                        59,820,539.50                               48,117,849.19

     Construction in process                                                                                           914,126.00


                                                                                                                                16
                                                  China Fangda Group Co., Ltd. 2014 Third Quarter Report


       Engineering materials

       Disposal of fixed assets

       Productive biological assets

       Gas & petrol

       Intangible assets                       2,044,102.48                               1,351,845.98

       R&D expense

       Goodwill

       Long-term amortizable expenses             68,586.18                                  50,314.43

       Deferred income tax assets             14,135,469.08                              12,342,430.37

       Other non-current assets

Total of non-current assets                 1,184,377,055.75                            957,283,633.72

Total of assets                             1,938,158,772.99                          1,637,307,545.77

Current liabilities

       Short-term loans                      300,000,000.00                             104,000,000.00

       Financial liabilities measured at
fair value with variations accounted into
current income account

       Notes payable

       Account payable                           606,941.85                               1,849,090.36

       Prepayment received                       693,045.60                                 798,586.70

       Employees’ wage payable                  829,075.23                               1,881,681.86

       Taxes payable                             532,069.16                                 260,761.30

       Interest payable                          350,833.33                                 193,930.00

       Dividend payable

       Other payables                        328,098,942.12                             192,765,065.68

       Liabilities held for sales

       Non-current liabilities due in 1
year

       Other current liabilities

Total current liabilities                    631,110,907.29                             301,749,115.90

Non-current liabilities:

       Long-term loans

       Bond payable

       Long-term payable

       Special payables


                                                                                                     17
                                                                        China Fangda Group Co., Ltd. 2014 Third Quarter Report


     Anticipated liabilities

     Deferred income tax liabilities                                 88,889,490.39                             88,615,374.26

     Other non-current liabilities

Total of non-current liabilities                                     88,889,490.39                             88,615,374.26

Total liabilities                                                   720,000,397.68                            390,364,490.16

Owners’ equity (or shareholders’
equity)

     Capital paid in (or share capital)                             756,909,905.00                            756,909,905.00

     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                                                376,168,931.47                            404,953,611.77

     Difference caused by translation of
foreign currency statements

Total of owners’ equity (or
                                                                  1,218,158,375.31                          1,246,943,055.61
shareholders’ equity)

Total of liability and owners’ equity (or
                                                                  1,938,158,772.99                          1,637,307,545.77
shareholders’ equity)


Legal representative: Xiong Jianming         CFO: Lin Kebing         Accounting Manager: Chen Yonggang


3. Consolidated Income Statement of the Report Period

Prepared by: China Fangda Group Co., Ltd.
                                                                                                                       In RMB

                    Items                        Amount of the Current Term              Amount of the Previous Term

1. Total revenue                                                    500,074,083.72                            441,652,030.98

     Incl. Business income                                          500,074,083.72                            441,652,030.98

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                                              486,029,695.50                            422,049,826.39

     Incl. Business cost                                            420,426,989.66                            363,673,640.07

              Interest expense


                                                                                                                           18
                                                      China Fangda Group Co., Ltd. 2014 Third Quarter Report


                Fee and commission paid

                Insurance discharge
payment

                Net claim amount paid

                Net insurance policy
reserves provided

                Insurance policy dividend
paid

                Reinsurance expenses

                Business tax and surcharge          4,107,536.30                              5,643,697.09

                Sales expense                      10,522,482.95                              9,467,499.65

                Administrative expense             41,082,991.15                             31,529,238.86

                Financial expenses                  4,652,738.11                              5,135,374.03

                Asset impairment loss               5,236,957.33                              6,600,376.69

        Plus: gains from change of fair
                                                    2,279,889.00
value (“-“ for loss)

                Investment gains (“-“ for
                                                     944,870.82                                 233,972.60
loss)

                Incl. Investment gains from
                                                      -55,752.10
affiliates and joint ventures

                Exchange gains (“-“ for
loss)

3. Operational profit (“-“ for loss)             17,269,148.04                             19,836,177.19

        Plus: non-operational income                2,637,678.88                              1,692,109.82

        Less: non-operational expenditure            484,813.06                                 319,704.19

                Incl. Loss from disposal of
                                                        2,602.43                                  4,725.37
non-current assets

4. Gross profit (“-“ for loss)                   19,422,013.86                             21,208,582.82

        Less: Income tax expenses                   2,658,308.60                              4,575,842.04

5. Net profit (“-“ for net loss)                 16,763,705.26                             16,632,740.78

        Including: Net profit realized by
the entity taken over before the takeover

        Net profit attributable to the
                                                   18,530,437.37                             17,352,459.65
owners of parent company

        Minor shareholders’ equity                -1,766,732.11                               -719,718.87

6. Earnings per share:                        --                                    --




                                                                                                         19
                                                                          China Fangda Group Co., Ltd. 2014 Third Quarter Report


     (1) Basic earnings per share                                               0.03                                      0.02

     (2) Diluted earnings per share                                             0.03                                      0.02

7. Other misc. incomes                                                    -35,700.00

Including: other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period

        Other comprehensive incomes
that can be reclassified into gains/losses
                                                                          -35,700.00
in the subsequent accounting period
when certain conditions are satisfied

8. Total of misc. incomes                                              16,728,005.26                             16,632,740.78

     Total of misc. incomes attributable
                                                                       18,494,737.37                             17,352,459.65
to the owners of the parent company

     Total misc gains attributable to the
                                                                       -1,766,732.11                               -719,718.87
minor shareholders


Legal representative: Xiong Jianming           CFO: Lin Kebing         Accounting Manager: Chen Yonggang


4. Consolidated Income Statement of the Report Period

Prepared by: China Fangda Group Co., Ltd.
                                                                                                                         In RMB

                    Items                          Amount of the Current Term              Amount of the Previous Term

1. Turnover                                                             7,642,085.27                             11,457,016.90

     Less: Operation cost                                               1,677,315.63                              3,216,944.02

           Business tax and surcharge                                     616,462.21                                836,566.81

           Sales expense

           Administrative expense                                       5,705,314.37                              5,461,079.65

           Financial expenses                                           2,882,171.63                              4,831,460.14

           Asset impairment loss                                            9,157.18                                 21,501.47

     Plus: gains from change of fair
                                                                                                                          0.00
value (“-“ for loss)

           Investment gains (“-“ for loss)                               29,617.76                                      0.00

           Incl. Investment gains from
                                                                          -55,752.10                                      0.00
affiliates and joint ventures

2. Operational profit (“-“ for loss)                                 -3,206,528.18                             -2,910,535.19

     Plus: non-operational income                                         470,029.19                                 41,918.34


                                                                                                                             20
                                                                          China Fangda Group Co., Ltd. 2014 Third Quarter Report


     Less: non-operational expenditure                                   199,914.53                                  61,631.00

           Incl. Loss from disposal of
                                                                                                                      1,631.00
non-current assets

3. Gross profit (“-“ for loss)                                       -2,936,413.52                             -2,930,247.85

     Less: Income tax expenses                                          -418,160.91                                -323,215.06

4. Net profit (“-“ for net loss)                                     -2,518,252.61                             -2,607,032.79

5. Earnings per share:                                         --                                       --

     (1) Basic earnings per share

     (2) Diluted earnings per share

6. Other misc. incomes

Including: other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period

        Other comprehensive incomes
that can be reclassified into gains/losses
in the subsequent accounting period
when certain conditions are satisfied

7. Total of misc. incomes                                              -2,518,252.61                             -2,607,032.79


Legal representative: Xiong Jianming         CFO: Lin Kebing           Accounting Manager: Chen Yonggang


5. Consolidated Income Statement Between the Beginning of the Year and End of the Report Period

Prepared by: China Fangda Group Co., Ltd.
                                                                                                                         In RMB

                    Items                        Amount of the Current Term                Amount of the Previous Term

1. Total revenue                                                    1,322,866,822.74                          1,178,480,070.86

     Incl. Business income                                          1,322,866,822.74                          1,178,480,070.86

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                                              1,267,180,886.26                          1,115,378,320.92

     Incl. Business cost                                            1,088,874,433.97                            948,167,460.51

              Interest expense

              Fee and commission paid




                                                                                                                             21
                                                       China Fangda Group Co., Ltd. 2014 Third Quarter Report


                Insurance discharge
payment

                Net claim amount paid

                Net insurance policy
reserves provided

                Insurance policy dividend
paid

                Reinsurance expenses

                Business tax and surcharge          15,465,996.01                             19,276,935.18

                Sales expense                       28,767,603.81                             27,082,486.74

                Administrative expense             108,268,494.31                             88,876,734.26

                Financial expenses                  15,700,216.25                             17,348,896.43

                Asset impairment loss               10,104,141.91                             14,625,807.80

        Plus: gains from change of fair
                                                     2,279,889.00
value (“-“ for loss)

                Investment gains (“-“ for
                                                     1,913,989.32                                233,972.60
loss)

                Incl. Investment gains from
                                                       -97,559.67
affiliates and joint ventures

                Exchange gains (“-“ for
loss)

3. Operational profit (“-“ for loss)              59,879,814.80                             63,335,722.54

        Plus: non-operational income                 5,679,197.28                              4,196,811.56

        Less: non-operational expenditure            2,546,716.34                                992,003.35

                Incl. Loss from disposal of
                                                     1,572,509.10                                174,448.90
non-current assets

4. Gross profit (“-“ for loss)                    63,012,295.74                             66,540,530.75

        Less: Income tax expenses                    7,021,212.14                             12,371,750.46

5. Net profit (“-“ for net loss)                  55,991,083.60                             54,168,780.29

        Including: Net profit realized by
the entity taken over before the takeover

        Net profit attributable to the
                                                    59,300,395.61                             56,714,053.07
owners of parent company

        Minor shareholders’ equity                 -3,309,312.01                             -2,545,272.78

6. Earnings per share:                        --                                     --

        (1) Basic earnings per share                         0.08                                      0.07




                                                                                                          22
                                                                          China Fangda Group Co., Ltd. 2014 Third Quarter Report


     (2) Diluted earnings per share                                             0.08                                      0.07

7. Other misc. incomes

Including: other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period

        Other comprehensive incomes
that can be reclassified into gains/losses
in the subsequent accounting period
when certain conditions are satisfied

8. Total of misc. incomes                                              55,991,083.60                             54,168,780.29

     Total of misc. incomes attributable
                                                                       59,300,395.61                             56,714,053.07
to the owners of the parent company

     Total misc gains attributable to the
                                                                       -3,309,312.01                             -2,545,272.78
minor shareholders


Legal representative: Xiong Jianming           CFO: Lin Kebing         Accounting Manager: Chen Yonggang


6. Income Statement of the Parent Between the Beginning of the Year and End of the Report Period

Prepared by: China Fangda Group Co., Ltd.
                                                                                                                         In RMB

                    Items                          Amount of the Current Term              Amount of the Previous Term

1. Turnover                                                            21,974,339.52                             35,037,418.48

     Less: Operation cost                                               3,806,918.59                              7,959,134.09

           Business tax and surcharge                                   1,795,575.87                              2,666,384.63

           Sales expense                                                                                                  0.00

           Administrative expense                                      17,022,158.29                             15,842,714.14

           Financial expenses                                           8,247,166.15                              6,918,105.00

           Asset impairment loss                                          -44,002.40                                 36,319.22

     Plus: gains from change of fair
value (“-“ for loss)

           Investment gains (“-“ for loss)                              -12,189.81

           Incl. Investment gains from
                                                                          -97,559.67
affiliates and joint ventures

2. Operational profit (“-“ for loss)                                 -8,853,476.98                              1,614,761.40

     Plus: non-operational income                                       1,796,297.93                              1,066,929.44

     Less: non-operational expenditure                                    526,936.87                                434,879.83


                                                                                                                             23
                                                                          China Fangda Group Co., Ltd. 2014 Third Quarter Report


            Incl. Loss from disposal of
                                                                         125,522.34                                  35,916.02
non-current assets

3. Gross profit (“-“ for loss)                                       -7,584,115.92                              2,246,811.01

       Less: Income tax expenses                                       -1,518,922.58                                671,224.93

4. Net profit (“-“ for net loss)                                     -6,065,193.34                              1,575,586.08

5. Earnings per share:                                         --                                       --

       (1) Basic earnings per share

       (2) Diluted earnings per share

6. Other misc. incomes

Including: other comprehensive income
items that will not be reclassified into
gains/losses in the subsequent
accounting period

         Other comprehensive incomes
that can be reclassified into gains/losses
in the subsequent accounting period
when certain conditions are satisfied

7. Total of misc. incomes                                              -6,065,193.34                              1,575,586.08


Legal representative: Xiong Jianming         CFO: Lin Kebing           Accounting Manager: Chen Yonggang


7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period

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
                                                                    1,168,322,724.05                          1,188,588,557.12
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


                                                                                                                             24
                                                China Fangda Group Co., Ltd. 2014 Third Quarter Report


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                              889,173.36                               1,402,551.72

     Other cash received from business
                                            70,054,311.35                              38,275,896.85
operation

Sub-total of cash inflow from business
                                          1,239,266,208.76                          1,228,267,005.69
operations

     Cash paid for purchasing products
                                          1,297,947,089.10                            941,055,438.35
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        160,019,118.12                             121,844,649.34

     Taxes paid                             64,990,093.66                              57,147,153.49

     Other cash paid for business
                                            74,918,865.75                              88,752,527.07
activities

Sub-total of cash outflow from business
                                          1,597,875,166.63                          1,208,799,768.25
operations

Cash flow generated by business
                                          -358,608,957.87                              19,467,237.44
operations, net

2. Cash flow generated by investment:

     Cash received from investment
                                           100,000,000.00                              20,000,000.00
recovery


                                                                                                   25
                                                 China Fangda Group Co., Ltd. 2014 Third Quarter Report


     Cash received as investment profit        2,015,277.59                                233,972.60

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other     4,579,733.50                                230,729.00
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
                                                133,500.00                               1,401,800.10
received

Sub-total of cash inflow generated from
                                             106,728,511.09                             21,866,501.70
investment

     Cash paid for construction of fixed
assets, intangible assets and other           28,385,573.09                             41,497,821.99
long-term assets

     Cash paid as investment                 116,340,675.00                             21,000,000.00

     Net increase of loan against pledge

     Net cash paid for acquiring
                                              -9,844,140.31
subsidiaries and other operational units

     Other cash paid for investment             270,500.00                               2,023,903.10

Subtotal of cash outflows                    135,152,607.78                             64,521,725.09

Cash flow generated by investment
                                             -28,424,096.69                            -42,655,223.39
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 borrowed
                                             944,000,000.00                            100,000,000.00
loans

     Cash received from bond placing

     Other cash received from financing
activities

Subtotal of cash inflow from financing
                                             944,000,000.00                            100,000,000.00
activities

     Cash paid to repay debts                283,000,000.00                            110,000,000.00

     Cash paid as dividend, profit, or
                                              52,661,058.83                             30,971,678.77
interests

     Incl. Dividend and profit paid by


                                                                                                    26
                                                                       China Fangda Group Co., Ltd. 2014 Third Quarter Report


subsidiaries to minority shareholders

     Other cash paid for financing
                                                                       156,090.75                                131,621.53
activities

Subtotal of cash outflow from financing
                                                                   335,817,149.58                            141,103,300.30
activities

Net cash flow generated by financing
                                                                   608,182,850.42                            -41,103,300.30
activities

4. Influence of exchange rate changes
                                                                       664,894.09                                      -7.06
on cash and cash equivalents

5. Net increase in cash and cash
                                                                   221,814,689.95                            -64,291,293.31
equivalents

     Plus: Balance of cash and cash
                                                                   285,237,255.38                            240,167,372.86
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                   507,051,945.33                            175,876,079.55
at the end of the period


Legal representative: Xiong Jianming        CFO: Lin Kebing         Accounting Manager: Chen Yonggang


8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period

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
                                                                    18,385,573.41                             26,341,564.44
products and providing of services

     Tax refunded

     Other cash received from business
                                                                 1,132,208,446.25                            499,639,535.86
operation

Sub-total of cash inflow from business
                                                                 1,150,594,019.66                            525,981,100.30
operations

     Cash paid for purchasing products
                                                                     4,594,088.02                              9,654,563.50
and services

     Cash paid to and for the staff                                 11,592,919.43                              9,712,788.14

     Taxes paid                                                      2,107,786.71                              3,460,417.50

     Other cash paid for business
                                                                 1,128,883,942.80                            346,256,016.42
activities

Sub-total of cash outflow from business                          1,147,178,736.96                            369,083,785.56


                                                                                                                          27
                                                 China Fangda Group Co., Ltd. 2014 Third Quarter Report


operations

Cash flow generated by business
                                               3,415,282.70                            156,897,314.74
operations, net

2. Cash flow generated by investment:

     Cash received from investment
                                              20,000,000.00
recovery

     Cash received as investment profit       39,441,369.86

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other   171,007,300.50                                    729.00
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
received

Sub-total of cash inflow generated from
                                             230,448,670.36                                    729.00
investment

     Cash paid for construction of fixed
assets, intangible assets and other            1,269,764.57                                192,948.50
long-term assets

     Cash paid as investment                 245,061,653.00                             41,000,000.00

     Net cash paid for acquiring
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                    246,331,417.57                             41,192,948.50

Cash flow generated by investment
                                             -15,882,747.21                            -41,192,219.50
activities, net

3. Cash flow generated by financing
activities:

     Cash received from investment

     Cash received from borrowed
                                             396,000,000.00                             15,000,000.00
loans

     Cash received from bond placing

     Other cash received from financing
activities

Subtotal of cash inflow from financing
                                             396,000,000.00                             15,000,000.00
activities

     Cash paid to repay debts                200,000,000.00                             90,000,000.00

     Cash paid as dividend, profit, or        31,127,433.82                             28,574,895.10


                                                                                                    28
                                                                China Fangda Group Co., Ltd. 2014 Third Quarter Report


interests

     Other cash paid for financing
                                                               156,090.75                                 131,621.53
activities

Subtotal of cash outflow from financing
                                                            231,283,524.57                            118,706,516.63
activities

Net cash flow generated by financing
                                                            164,716,475.43                           -103,706,516.63
activities

4. Influence of exchange rate changes
on cash and cash equivalents

5. Net increase in cash and cash
                                                            152,249,010.92                             11,998,578.61
equivalents

     Plus: Balance of cash and cash
                                                             67,973,808.76                             25,540,604.84
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                            220,222,819.68                             37,539,183.45
at the end of the period


Legal representative: Xiong Jianming      CFO: Lin Kebing    Accounting Manager: Chen Yonggang


2. Auditor‘s report

Whether the Q3 report is audited
□ Yes √ No
The Q3 Report is not audited.




                                                                                                                   29