2015 Interim Report of China Fangda Group Co., Ltd.
China Fangda Group Co., Ltd.
2015 Interim Report
August 2015
1
2015 Interim Report of China Fangda Group Co., Ltd.
I. Important Statement, Table of Contents and Definitions
The members of the Board and the Company guarantee that the
interim report is free from any false information, misleading statement or
material omission and are jointly and severally liable for the
informations truthfulness, accuracy and integrity.
Directors other than the following ones have attended the Board
meeting to review the interim report.
Position of absent
Name of absent director Reason Name of proxy
director
Lin Bin Independent director Business engagement Guo Wanda
Huang Yaying Independent director Business engagement Guo Wanda
Xiong Jianwei Director Business engagement Wang Shengguo
The Company will distribute no cash dividends or bonus shares and
has no reserve capitalization plan.
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.
Forward-looking statements involved in this report including future
plans do not make any material promise to investors. Investors should
pay attention to investment risks.
2
2015 Interim Report of China Fangda Group Co., Ltd.
Table of Contents
I. Important Statement, Table of Contents and Definitions..............................................................................................................2
II. Company Profile ...............................................................................................................................................................................6
III Financial Highlight ............................................................................................................................................................................8
IV Board of Directors’ Report ............................................................................................................................................................ 11
V Significant Events............................................................................................................................................................................23
VI Changes in Share Capital and Shareholders .............................................................................................................................30
VII Preferred Shares ...........................................................................................................................................................................35
VIII Particulars about the Directors, Supervisors, and Senior Management ..............................................................................36
IX Financial Statements .....................................................................................................................................................................37
X Documents for Reference ............................................................................................................................................................134
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2015 Interim Report of China Fangda Group Co., Ltd.
Definitions
Refers
Terms Description
to
Refers
Fangda Group, company, the Company China Fangda Group Co., Ltd.
to
Refers
Articles of Association Articles of Association of China Fangda Group Co., Ltd.
to
Refers
Meeting of shareholders Meetings of shareholders of China Fangda Group Co., Ltd.
to
Refers
Board of Directors Board of Directors of China Fangda Group Co., Ltd.
to
Refers
Supervisory Committee Supervisory Committee of China Fangda Group Co., Ltd.
to
Refers
Banglin Co. Shenzhen Banglin Technologies Development Co., Ltd.
to
Refers
Shilihe Co. Shenzhen Shilihe Investment Co., Ltd.
to
Refers
Shengjiu Co. Shengjiu Investment Ltd.
to
Refers Formally Shenzhen Fangda Decoration Engineering Co., Ltd., now
Fangda Jianke, Fangda Decoration
to renamed as Shenzhen Fangda Jianke Group Co., Ltd.
Refers
Fangda Automatic Shenzhen Fangda Automation System Co., Ltd.
to
Refers
Fangda New Material Fangda New Materials (Jiangxi) Co., Ltd.
to
Refers
Fangda New Resource Shenzhen Fangda New Energy Co., Ltd.
to
Refers
Fang SOZN Guangdong Fangda SOZN Lighting Co., Ltd.
to
Refers
Shenyang Fangda Shenyang Fangda Semi-conductor Lighting Co., Ltd.
to
Refers
Shenzhen Woke Shenzhen Woke Semi-conductor Lighting Co., Ltd.
to
Hong Kong Junjia Refers Hong Kong Junjia Group Co., Ltd.
4
2015 Interim Report of China Fangda Group Co., Ltd.
to
Refers
Fangda Aluminium Jiangxi Fangda New Type Aluminum Co., Ltd.
to
Refers
Dongguan Fangda New Material Dongguan Fangda New Material Co., Ltd.
to
Refers
Kexunda Co. Shenzhen Kexunda Software Co., Ltd.
to
Refers
Fangda Property Shenzhen Fangda Property Development Co., Ltd.
to
Refers Formerly Chengdu Fangda New Material Co., Ltd, now renamed as
Chengdu Fangda Jianke
to Chengdu Fangda Construction Technology Co., Ltd.
Refers
Shihui International Shihui International Holding Co., Ltd.
to
Refers
Shenyang Decoration Fangda Decoration Engineering (Shenyang) Co., Ltd.
to
Refers
CSRC China Securities Regulatory Commission
to
Refers
SZSE Shenzhen Stock Exchange
to
5
2015 Interim Report of China Fangda Group Co., Ltd.
II. Company Profile
1. Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055、200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Chinese name China Fangda Group Co., Ltd.
English name (if any) Fangda Group
English name (if any) CHINA FANGDA GROUP CO., LTD.
English abbreviation (if any) CFGC
Legal representative Xiong Jianming
2. Contacts and liaisons
Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
th th
20F, Fangda Building, Kejinan 12 20F, Fangda Building, Kejinan 12
Address
Avenue, Hi-Tech Zone, Shenzhen Avenue, Hi-Tech Zone, Shenzhen
Tel. 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Fax 86(755)26788353 86(755)26788353
Email zqb@fangda.com zqb@fangda.com
3. Other Information
1. Liaison
Changes to the Company’s registration address, office address, post code, website or email during the
report period
□ Applicable √ Inapplicable
Company’s registration address, office address, post code, website or email have not changed during
the report period. See Annual Report 2014 for details.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable √ Inapplicable
Please refer to the 2014 annual report for the newspapers and websites where the Company’s
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2015 Interim Report of China Fangda Group Co., Ltd.
information is disclosed. The inquiry address of the interim report has remained unchanged during the
report period.
3. Registration changes
Whether the registration has changed during the report period
□ Applicable √ Inapplicable
Please refer to 2014 annual report for the Company’s registration date and address, business license
No., tax registration No. and organization registration code, which have remained unchanged during the
report period.
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2015 Interim Report of China Fangda Group Co., Ltd.
III Financial Highlight
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
This report period Same period last year Year-on-year change (%)
Turnover (yuan) 1,150,115,523.53 822,792,739.02 39.78%
Net profit attributable to shareholders of
51,317,648.87 40,769,958.24 25.87%
the listed company (yuan)
Net profit attributable to the
shareholders of the listed company and
35,487,052.40 39,669,548.38 -10.54%
after deducting of non-recurring
gain/loss (RMB)
Net cash flow generated by business
-274,712,071.19 -268,552,729.61 2.29%
operation (RMB)
Basic earnings per share (yuan/share) 0.07 0.05 40.00%
Diluted Earnings per share
0.07 0.05 40.00%
(yuan/share)
Weighted average net income/asset
4.07% 3.49% 0.58%
ratio
End of the report period End of last year Year-on-year change
Total asset (RMB) 4,044,758,394.03 3,662,719,900.41 10.43%
Net profit attributable to the
shareholders of the listed company 1,262,312,157.68 1,234,930,863.46 2.22%
(RMB)
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
√ Applicable □ Inapplicable
In RMB
Net profit attributable to the shareholders of Net profit attributable to the shareholders of
the listed company the listed company
This period Last period Closing amount Opening amount
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2015 Interim Report of China Fangda Group Co., Ltd.
On Chinese accounting
51,317,648.87 40,769,958.24 1,262,312,157.68 1,234,930,863.46
standards
Items and amounts adjusted according International Accounting Standards
On international accounting
51,317,648.87 40,769,958.24 1,267,075,555.92 1,239,694,261.70
standards
2. Differences in net profits and assets in financial statements disclosed according to the
overseas and Chinese account standards
□ Applicable √ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the
international and Chinese account standards during the report period.
3. Explanation of the differences in accounting data under domestic and foreign accounting
standards
√ Applicable □ Inapplicable
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. Accidental gain/loss item and amount
√ Applicable □ Inapplicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss (including the write-off
-453,950.93
part for which assets impairment provision is made)
Subsidies accounted into the current income account
(except the government subsidy closely related to the
630,651.51
enterprise’s business and based on unified national
standard quota)
Gain from entrusted investment or assets management 295,002.74
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 2,676,854.00
financial assets, other than valid period value instruments
related to the Company’s common businesses
Gain/loss from change of fair value of investment property
32,768,907.31
measured at fair value in follow-up measurement
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2015 Interim Report of China Fangda Group Co., Ltd.
Other non-business income and expenditures other than the
-13,605,087.48
above
Less: Influenced amount of income tax 6,395,082.75
Influenced amount of minority shareholders’ equity
86,697.93
(after-tax)
Total 15,830,596.47 --
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
No circumstance that should be defined as recurrent profit and loss according to Explanation
Announcement of Information Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.
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2015 Interim Report of China Fangda Group Co., Ltd.
IV Board of Directors Report
1. Summary
In the first half of 2015, the Chinese economic growth continued slowing down. Under the
leadership of the Board of Directors, the Company reacted positively to the gloomy economy thanks to
the hard work and diligence of all employees. In the report period, the Company recorded a sales
income of RMB1,150,115,500, up 39.78% year on year. The net profit attributed to owners of the parent
reached RMB51,317,600, up 25.87% year on year. The revenue from main businesses continued
growing. By the end of the report period, the Company had secured new orders worth
RMB1,691,785,400, which 147.10% of the operating revenue in H1 2015, paving the way for the
Company to complete the whole year’s sales target.
1、 Curtain wall system and material industry continued growing rapidly
As the Chinese economy continues growing and urbanization accelerates, the demand for high-end
building curtain walls continues swelling. With technical, hardware, brand and service advantages, the
Company has focused on the high-end curtain wall market and continued increasing the share in the
high-end curtain wall system and material market. In the first half of 2015, the Company won a series of
energy-saving and low-carbon high-end curtain wall and material projects including Shenzhen Swan
Lake Gargen I, Shanghai Tongshan road renovation project, Xining (Kangmei) International Chinese
Medicine Exchange Center, Kunming Dianhai Gudu Harbor, office building No.7 of Guiyang International
Financial Center I, and the main stadium of Dongying China Petroleum Equipment Industry International
Exchange Center. For secured high-end curtain wall and material orders, the Company vigorously
started design, purchase, production and construction of Shenzhen Alibab/Ali Cloud, Chengdu Alibaba
base, Nanchang Wandamao, Xining Wanda Square, Chengdu Wanda Ruihua Hotel, Shanghai Vanke
Jade, SOHO Shanghai Bund, Huawei Xi’an Global Exchange Technology Center and software plant.
The Upper Hills of 300m high, Shenzhen China Energy Storage Building, and Chongqing Tianhe
International Center curtain wall projects have been implemented as planned. In the first half, the
business recorded a sales income of RMB922,733,800, up 21.75% year on year.
In the first half, Fangda Jianke was given the title as Enterprise with Outstanding Efficiency by
Shenzhen Outstanding Efficiency Promotion Committee and outstanding project team and suppliers by
users.
2. New energy business takes a great leap
The Company has taken a great leap in the new energy industry over the past year. Since the
inception of Fangda New Energy in last July, the Company has signed PV power plant construction
agreements in Nanchang, Pingxiang, Xinyu and Longnan, Jiangxi with a total capacity of 1.1GW.
Besides, the Company started the construction of two solar PV power plants in Pingxiang and Dongguan
Songshanhu in the first half and plans to realize grid-connected power generation in 2015. The
Company will adopt the Internet+ management mode. As the Company continues implementing the PV
power plant development plan, the business will bring stable income and profit for the Company and
become a major business segment and source of income. In the first half, the Company increased
promotion of LED products through advertisements on CCTV 1, Jiangsu Satellite and Hunan TV station,
stabilizing and broadening channels. Currently, the sales network has expanded to nearly 80,000 stores
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2015 Interim Report of China Fangda Group Co., Ltd.
across the country. Now, the Company has more than 30 automatic production lines and intelligent R&D
devoces with a monthly LED bulb production capability of 10 million and more than 100 patented
technologies.
3. Rail transport equipment industry enjoys a bright outlook
In 2015, the rail transport equipment industry was outlined as a key industry in the China
Manufacturing 2025 plan. Moreover, the one belt one road become a national development strategy.
Over recent years, China has continued increasing investment in rail transport construction. According to
the plan, about 50 cities will have rail transport by 2020 with a total mileage of 7,395km. The Company
takes the opportunity to increase its market share, promote brand equity, participate in the formulation of
industry standard and improve engineering services. The Company has won bids in Lanzhou, Xiamen,
Wuhan, Hefei and Naning, consolidating the leadership in the industry in China. Through more than a
decade’s development, the Company has applied screen door products with intellectual property rights
in more than 20 Chinese cities as well as Singapore, Hong Kong and Taiwan. In the first half, the metro
screen door sales revenue increased 105.48% year-on-year. As the China Manufacturing 2025 plan
continues to be implemented, the industry will continue growing rapidly.
4. Fangda Town renovation project
The project has been implemented as scheduled based previous engineering. The underground
construction has been completed. The Company has opened the sales center and the project has been
proceeded as scheduled.
5. Others
Given the orders and sales has continued growing, the Company has established cooperation
relationships with many suppliers. Thanks to good credit record, the Company has signed supply chain
financing cooperation agreement with banks. The relationships will help the Company build the industry
chain financing platform.
The Company will continue hiring high-quality professionals and providing training for existing
employees to optimize the labor structure and improve management efficiency.
2. Main business analysis
Year-on-year changes in major financial data
In RMB
This report period Same period last year YOY change (% ) Cause of change
Increase in projects in
Turnover 1,150,115,523.53 822,792,739.02 39.78%
progress
Operation cost 940,487,258.35 668,447,444.31 40.70% Increase in revenue
Increase in advertising
Sales expense 41,009,137.46 18,245,120.86 124.77%
cost
Administrative expense 75,547,311.64 67,185,503.16 12.45%
Increase in average
Financial expenses 25,609,734.67 11,047,478.14 131.82%
loan
Income tax expenses 16,168,196.04 4,362,903.54 270.58% Increase in deferred
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2015 Interim Report of China Fangda Group Co., Ltd.
income tax
R&D investment 39,856,514.35 41,228,960.53 -3.33%
Cash flow generated
by business -274,712,071.19 -268,552,729.61
operations, net
Cash flow generated
Maturity of financial
by investment 148,325,056.01 -3,392,292.06
products
activities, net
Net cash flow
generated by financing 236,132,790.12 313,893,052.10 -24.77%
activities
Net increase in cash Maturity of financial
109,732,694.75 41,940,681.64 161.64%
and cash equivalents products
Major changes in profit composition or sources during the report period
□ Applicable √ Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report
period.
Delay of future development and plan disclosed in the Company’s IPO prospectus, fund raising
prospectus and capital reorganization report into this report period
□ Applicable √ Inapplicable
No future development and plan disclosed in the Company’s IPO prospectus, fund raising prospectus
and capital reorganization report is delayed into this report period.
Implementation of business plans disclosed in previous periods in this period
In the report period, the Company recorded a sales income of RMB1,150,115,500, up 39.78% year
on year. The net profit attributed to owners of the parent reached RMB51,317,600, up 25.87% year on
year. The revenue from main businesses continued growing. By the end of the report period, the
Company had secured new orders worth RMB1,691,785,400, which 147.10% of the operating revenue
in H1 2015, paving the way for the Company to complete the whole year’s sales target. In the report
period, the Company increased investment in new energy businesses, especially in the construction of
solar power PV power plants. In the first half of this year, the Company has started construction of solar
power PV power plants in Pingxiang and Dongguan Songshanhu, and plans to adopt the Internet+
management method. The Company decided to cancel the private A-share issuance to protect investors’
interests and withdraw the application to CSRC. The PV power plant construction projects will be funded
by the capital raised by the Company. The Fangda Town renovation project has been commenced and
conducted as scheduled. All the business plans were fulfilled in 2015.
3. Business composition
In RMB
Year-on-year Year-on-year Year-on-year
Turnover Operation cost Gross margin
change in change in change in gross
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2015 Interim Report of China Fangda Group Co., Ltd.
operating operating costs margin
revenue
Industry
Metal
922,733,838.21 764,311,734.54 17.17% 21.75% 22.01% -0.17%
production
Railroad
96,966,572.45 73,765,384.45 23.93% 105.48% 101.59% 1.47%
industry
Product
Curtain wall
system and 922,733,838.21 764,311,734.54 17.17% 21.75% 22.01% -0.17%
materials
Metro screen
96,966,572.45 73,765,384.45 23.93% 105.48% 101.59% 1.47%
door
District
1,113,023,670.1
Domestic 921,926,180.23 17.17% 40.29% 40.61% -0.19%
4
4 Core Competitiveness Analysis
(1) Curtain wall system and material
1. Expertise and brand competitiveness
In response to the national call for energy saving and emission reduction, the Company has
aggressively develop solar electric and optimal and energy-saving low-carbon curtain walls, developing
a series of domestic and global leading solar and energy-saving curtain wall products. The Company
owns 383 curtain wall and material patents (including 24 invention patents) and one software copyright,
ranking top among domestic peers. It has achieved many firsts in the industry and created incomparable
brand equity, making it an optimal choice in the domestic high-end curtain wall and material market.
FANGDA is a nationwide well-known trademark in China.
2. Focusing on the high-end market to edge out competitors
Amid the fierce market competition, the Company has focused on the high-end energy-saving
curtain wall market and technical integration to improve high-end project quality. Moreover, it has
focused resources on high-end curtain wall engineering and won several Luban awards, Zhan Tianyou
Civil Engineering awards and Classic Construction for the 50th Anniversary of the Foundation of the
People’s Republic of China, High-Quality Construction, White Magnolia Prize and Customer Satisfactory
Engineering and the title of “Top 10 Competitive Chinese Curtain Wall Provider”. The Company has build
a leading brand and created a clear edge in the high-end curtain wall market.
3. Well-developed industry base landscape
Thanks to continued investment in facilities, the Company has established a national business
landscape with Shenzhen as the headquarters, Dongguan Songshanhu as the base in the south, Beijing
in the north, Chengdu in the southwest and Shanghai and Nanchang in the east. The Dongguan
Songshanhu and Nanchang bases are the largest and most advanced curtain wall system and material
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2015 Interim Report of China Fangda Group Co., Ltd.
production bases in China and across the world, fueling the Company to increase its market share and
competitiveness.
4. General solutions
The Company has integrated the design, production, management and engineering of curtain wall
systems to enjoy technological, cost, quality and service advantages.
(2) New energy industry
The new energy business mainly comprises solar power PV application, PV construction and LED
industry.
1. Technical advantage
With more than ten years’ experience in developing solar energy PV power generating curtain wall
technology, the Company is the earliest company that masters the intelligent property right in the
designing, production and integration of solar energy PV curtain wall systems and is a pioneer in the
application of PV curtain wall technology. The Company built the first solar energy PV integrated building
curtain wall system in China – Shenzhen Fangda Building photoelectric curtain wall system.
2. Relation with other industries
Distributed solar power PV power generation is closely related to the Company’s existing
businesses. Most distributed solar power PV systems are closely related to construction. Moreover, the
Company has more than 10 years' experience in electrical product integration. The Company also has
more than 20 years’ experience in construction management and has the level-1 construction curtain
wall engineering qualification and electrical installation engineering qualification.
(3) Rail transport equipment business
1. Technical advantage
Through continued independent innovation, the Company has developed the global leading metro
screen door system with full intellectual property right and broken the monopoly of overseas competitors.
The Company has also compiled the Rail Transport Station Screen Door Standard, which is the first of
its kind in China. The standard was approved in April 2006 and was implemented on March 1, 2007. As
the first standard in the industry in China, the standard has played a key role in guiding the development
of China’s rail transport screen door industry and enabled the Company a dominant lead in the industry.
Currently, the Company has 219 metro screen door patents, including 40 invention patents. The
Company also has four computer software copyrights.
2. Brand equity
So far, the Company has undertaken railway screen door projects in most domestic cities, Hong
Kong, Taipei and Singapore. The Fangda screen door system has grasped a leading market share and
established incomparable brand influence thanks to its patents, standard and maintenance services.
The Company has emerged as the Chinese No.1 and global No.3 screen door provider, building a large
competitive edge in the global market.
(4) Real Estate
The Fangda Town renovation project is well-positioned and enjoys express transport, unique
landscape resoures, preferential policies and moderate competition in the district. The project will buoy
the Company’s net assets and total assets, bring strong cash flows for the Company, provide capital
support for the development of businesses, and gain experience in the real-estate development industry.
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2015 Interim Report of China Fangda Group Co., Ltd.
VI. Investment
1. External equity investment
(1) External investment
□ Applicable √ Inapplicable
The Company made no external investment in the report period.
(2) Financial enterprise share held
□ Applicable √ Inapplicable
The Company held no stake in financial companies in the report period.
(3) Securities investment
√ Applicable □ Inapplicable
Number Number
of shares of shares
Closing
Initial held at Opening held at Closing
Securitie Abbreviat book Gain/los Accounti
Code investme beginnin sharehol end of sharehol Source
s ion value s (RMB) ng item
nt cost g of the ding the ding
(RMB)
period period
(share) (share)
Sino Oil Transacti
and Gas 16,263,6 100,000, 100,000, 16,087,6 2,676,85 onal Purchas
Stock 00702 0.56% 0.56%
Holdings 75.00 000 000 44.00 4.00 financial e
Ltd assets
16,263,6 100,000, 100,000, 16,087,6 2,676,85
Total -- -- -- --
75.00 000 000 44.00 4.00
Disclosure date of approval
by the Board of Directors of 11.03.14
securities investment
Disclosure date of securities
investment approval by the
None
Shareholders’ Meeting (if
any)
(4) Notes to shareholding in other listed companies
□ Applicable √ Inapplicable
The Company holds no stock of other list companies in the report period.
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2015 Interim Report of China Fangda Group Co., Ltd.
2. Trust wealth management, investment in derivatives and entrustment loan
(1) Wealth management
√ Applicable □ Inapplicable
In RMB10,000
Actual
Earning Principal Impairm
Related gain/loss
Relation Type of Start reconitio recovere ent Estimate
Trustee transacti Amount End date in the
ship product date n d provision return
on report
method actually (if any)
period
Non-prot Estimate
CCB, Non-affili
ected d annual
Shenzhe ated No 3,000 31.12.14 21.01.15 3,000 5.6 5.6
floating yield of
n Branch party
earning 3.12%
CCB,
Non-prot Estimate
Shenzhe Non-affili
ected d annual
n OCT ated No 1,000 31.12.14 03.01.15 1,000 0.34 0.34
floating yield of
Sub-bra party
earning 3.12%
nch
Non-prot Estimate
Non-affili
Bank of ected d annual
ated No 3,000 26.12.14 04.01.15 3,000 2.07 2.07
China floating yield of
party
earning 2.5%
Estimate
Non-affili
Bank of Earning- d annual
ated No 1,000 08.01.15 23.01.15 1,000 1.81 1.81
China protected yield of
party
4.4%
Estimate
Non-affili
Bank of Earning- d annual
ated No 850 12.02.15 02.03.15 850 1.97 1.97
China protected yield of
party
4.7%
Estimate
BOC, Non-affili
Earning- d annual
Shenzhe ated No 6,800 31.12.14 04.01.15 6,800 2.33 2.33
protected yield of
n Branch party
3.12%
Non-prot Estimate
BOC, Non-affili
ected d annual
Shenzhe ated No 4,000 08.01.15 22.01.15 4,000 4.99 4.99
floating yield of
n Branch party
earning 3.25%
BOC, Non-affili Non-prot Estimate
No 1,000 08.01.15 13.01.15 1,000 0.43 0.43
Shenzhe ated ected d annual
17
2015 Interim Report of China Fangda Group Co., Ltd.
n Branch party floating yield of
earning 3.12%
Non-prot Actual
BOC, Non-affili
ected annual
Shenzhe ated No 1,500 16.02.15 16.03.15 1,500 5.35 5.35
floating yield of
n Branch party
earning 4.65%
Non-prot
ected
floating
earning
Total 22,150 -- -- -- 22,150 24.89 24.89
Source of fund Self-owned fund
Principal and return due but not
0
covered
Lawsuit (if any) None
Disclosure date of approval
11.03.14
announcement (if any)
Disclosure date of Shareholders'
Meeting approval announcement (if None
any)
(2) Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
Proportio
n of
closing
investme
Derivativ nt Actual
Initial Impairm Closing
e Related amount gain/loss
Relation Initial Start investme ent investme
investme transacti Type End date in the in the
ship amount date nt provision nt
nt on closing report
amount (if any) amount
operator net period
assets in
the
report
period
Shangha Shangha
i Futures None No i 8,398.82 05.01.15 15.10.15 4,837.71 3.83% 58.51
Exchang aluminu
18
2015 Interim Report of China Fangda Group Co., Ltd.
e m
Total 8,398.82 -- -- 0 4,837.71 3.83% 58.51
Capital source Self-owned fund
Lawsuit (if any) None
Disclosure date of derivative
investment approval by the Board of None
Directors (if any)
Disclosure date of derivative
investment approval by the None
Shareholders’ Meeting (if any)
Risk analysis and control measures for To prevent the risk of fluctuation of raw material prices, the Company adopted
the derivative holding in the report the aluminum futures exchanged at the domestic futures exchange to provide
period (including without limitation hedging for aluminum as a raw material for the Company. The Company has set
market, liquidity, credit, operaton and up and implemented the Provicial Regulations on China Fangda Group
legal risks) Domestic Futures Hedging to prevent risks.
Changes in the market price or fair
value of the derivative in the report
The fair value of the derivative should be calculated with the open quotation of
period, the analysis of the derivative’s
the futures market and should be reviewed regularly to ensure effective
fair value should disclose the method
hedging.
used and related assumptions and
parameters.
Material changes in the accounting
policies and rules related to the
No
derivative in the report period
compared to last period
Oppinions of independent directors on
the Company’s derivative investment None
and risk controlling
(3) Trusted loans
□ Applicable √ Inapplicable
The Company borrowed no trust loan in the report period.
3. Use of raised capital
□ Applicable √ Inapplicable
The Company used no raised capital in the report period.
4. Analysis of major subsidiaries and joint-stock companies
√ Applicable □ Inapplicable
19
2015 Interim Report of China Fangda Group Co., Ltd.
Major subsidiaries and joint-stock companies
In RMB
Main
Registered Total Operatio
Company Type Industry products Net assets Turnover Net profit
capital assets n profit
or services
Curtain
Fangda 500,000,0 2,653,232, 766,865,8 867,657,9 46,747,7 26,318,553.
Subsidiary Decoration wall
Jianke 00.00 138.94 50.15 87.24 53.96 43
system
Metro
Fangda Railroad 105,000,0 416,155,5 199,664,3 98,245,30 12,963,2 11,139,440.
Subsidiary screen
Automatic industry 00.00 34.14 35.39 2.25 30.21 71
door
Software
Kexunda Railroad developme 1,000,000. 75,374,38 9,458,359.2 8,651,281. 6,427,27
Subsidiary 6,683,645.11
Co. industry nt, system 00 9.97 4 99 2.00
integration
5. Major projects of non-raised capital
√ Applicable □ Inapplicable
In RMB10,000
Actual
Planne Investment
investment Disclosure
d in the Progres Profit
Project by the end of date (if Disclosure source (if any)
invest report s status
the report any)
ment period
period
th
December Resolutions of the 8 Meeting
th
of the 7 Board of Directors
Jiangxi 25, 2014 (2014-60), Resolution of the 1
st
Pingxiang PV and Extraordinary Shareholders’
16,766 177.48 177.48 1.06% Meeting 2015 (2015-03), published
power plant January 14, on China Securities Journal,
project 2015 Shanghai Securities Daily,
Securities Times, HKCD (English)
and http://www.cninfo.com.cn.
Total 16,766 177.48 177.48 -- -- -- --
VI. Forecast of operating performance between January and September in 2015
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
20
2015 Interim Report of China Fangda Group Co., Ltd.
VII. Statement of the Board on the “non-standard auditors report” issued by the CPA
on the current report period
□ Applicable √ Inapplicable
VIII. Statement of the Board of Directors on the Non-standard Auditors Report for H1
2014
□ Applicable √ Inapplicable
IX. Implementation of Profit Distribution of the Company in the Report Period
Profit distribution plans implemented during the report period, especially cash dividend and reserve
capitalization plans
√ Applicable □ Inapplicable
The 2014 Profit Distribution Proposal was approved on the 28th meeting of the 6th Board of Director
held on 25.03.15 and will be confirmed after being reviewed at the 2014 General Shareholders' Meeting
held on 17.04.15. A cash dividend of RMB0.30 (tax inclusive) will be paid on each ten shares to all
shareholders on the basis of 756,909,905 shares with a total amount of RMB22,707,297.15. The
planning, review and implementation procedure of the profit distribution complies with related laws and
regulations and the Company’s Articles of Association. The profit distribution plan was implemented on
June 9, 2015 (see the Announcement on Implementation of the 2014 Equity Distribution Plan 2015-18).
Explanation of Cash Dividend Distribution Policies
Comply with the Articles of Association or resolution made
Yes
at the General Shareholders' Meeting
Clear and definite distribution standard and proportion Yes
Decision-making procedure and mechanism Yes
Independent directors fulfill their duties Yes
Middle and small shareholders express their opinions and
Yes
claims. There rights are well protected.
Cash dividend distribution policies are adjusted or revised
Yes
according to law
X Profit Distribution and Reserve Capitalization Plan in the Report Period
□ Applicable √ Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.
21
2015 Interim Report of China Fangda Group Co., Ltd.
XI. Reception of investigations, communications, or interviews in the reporting
period
√ Applicable □ Inapplicable
Main content involved
Time/date Place Way Visitor Visitor
and materials provided
Onsite China Galaxy Business and future
21.01.15 Shenzhen Institution
investigation Securities development
Guangzheng
Hang Seng
Securities
Onsite Research Business and future
28.04.15 Shenzhen Institution
investigation Institute, development
Shenzhen Yujin
Investment Co.,
Ltd.
Onsite Guotai Junan Business and future
26.05.15 Shenzhen Institution
investigation Securities development
22
2015 Interim Report of China Fangda Group Co., Ltd.
V Significant Events
I. Corporate Governance
The corporate governance complies with the Company Law and related requirements of CSRC.
II. Lawsuit
Significant lawsuit and arbitration
□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
Other lawsuit
□ Applicable √ Inapplicable
III. Media questioning
□ Applicable √ Inapplicable
The Company has no significant affair that arouses media questioning.
IV. Bankruptcy and capital reorganizing
□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
V. Assets trade
1. Assets acquisition
□ Applicable √ Inapplicable
The Company required no assets in the report period.
2. Assets sales
□ Applicable √ Inapplicable
The Company sold no assets in the report period.
3. Enterprise merger
□ Applicable √ Inapplicable
The Company merged no company in the report period.
23
2015 Interim Report of China Fangda Group Co., Ltd.
VI. Implementation and influences of share equity incentive program
□ Applicable √ Inapplicable
The Company made or implemented no option incentive scheme in the report period.
VII. Material related transactions
1. Related transactions related to routine operation
□ Applicable √ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets transactions
□ Applicable √ Inapplicable
The Company made no related transaction of assets requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable √ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable √ Inapplicable
The Company had no related debt in the report period.
(5) Other related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.
VIII. Non-operating capital use by the controlling shareholder or related parties in the
reporting term
□ Applicable √ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the
Company during the report period.
24
2015 Interim Report of China Fangda Group Co., Ltd.
IX. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable √ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable √ Inapplicable
The Company made no contract in the report period
(3) Leasing
√ Applicable □ Inapplicable
Leasing
The lease of real estate property held for investment reached RMB12,830,370.75 between January and
June 2015,
Projects that create gains accounting for over 10% of the Company’s total profit in the report period
□ Applicable √ Inapplicable
The Company leased no rojects that create gains accounting for over 10% of the Company’s total profit
in the report period.
2. Guarantee
√ Applicable □ Inapplicable
In RMB10,000
External guarantees made by the Company (exclude those made for subsidiaries)
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complet Related
Term
provided to disclosure amount (signing date of of guarantee guarantee ed or not party
agreements)
Guarantee between the Company and its subsidiaries
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complet Related
Term
provided to disclosure amount (signing date of of guarantee guarantee ed or not party
agreements)
since
Fangda Jianke 11.03.14 36,000 03.09.14 34,374.23 Joint liability engage of No No
contract to 2
25
2015 Interim Report of China Fangda Group Co., Ltd.
years upon
due of debt
since
engage of
Fangda Jianke 11.03.14 20,000 20.10.14 17,078.37 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda Jianke 11.03.14 25,000 09.09.14 23,257.53 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda Jianke 11.03.14 20,000 16.06.14 19,761.78 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda Jianke 11.03.14 21,428 30.09.14 7,637.87 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda Jianke 08.11.14 15,000 11.11.14 7,000 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda Jianke 11.03.14 15,000 19.01.15 2,594.32 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Fangda
11.03.14 20,000 03.09.14 13,472.28 Joint liability contract to 2 No No
Automatic
years upon
due of debt
since
engage of
Fangda
08.11.14 5,000 11.11.14 2,660 Joint liability contract to 2 No No
Automatic
years upon
due of debt
26
2015 Interim Report of China Fangda Group Co., Ltd.
since
engage of
Fangda New
11.03.14 7,080 11.04.14 1,466.83 Joint liability contract to 2 No No
Material
years upon
due of debt
since
engage of
Fangda New
11.03.14 8,000 05.05.14 6,879.97 Joint liability contract to 2 No No
Material
years upon
due of debt
since
engage of
Fangda Property 23.03.13 130,000 03.02.15 14,105.37 Joint liability contract to 2 No No
years upon
due of debt
since
engage of
Guangdong
26.08.14 2,000 29.01.15 2,000 Joint liability contract to 2 No No
Fangda SOZN
years upon
due of debt
since
engage of
Guangdong
25.12.14 2,000 07.04.15 1,966.8 Joint liability contract to 2 No No
Fangda SOZN
years upon
due of debt
Total of guarantee to
Total of guarantee to
subsidiaries actually
subsidiaries approved in the 216,000 95,199.84
occurred in the report term
report term (B1)
(B2)
Total of balance of
Total of guarantee to
guarantee actually provided
subsidiaries approved as of 326,508 154,255.34
to the subsidiaries as of end
the report term (B3)
of report term (B4)
Guarantee provided to subsidiaries
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complet Related
Term
provided to disclosure amount (signing date of of guarantee guarantee ed or not party
agreements)
Total of guarantee provided by the Company (total of the above three)
Total of guarantee approved Total of guarantee occurred
216,000 95,199.84
in the report term in the report term
27
2015 Interim Report of China Fangda Group Co., Ltd.
(A1+B1+C1) (A2+B2+C2)
Total of guarantee approved Total of guarantee occurred
as of end of report term 326,508 as of the end of report term 154,255.34
(A3+B3+C3) (A4+B4+C4)
Percentage of the total guarantee occurred (A4+B4+C4)
122.20%
on net asset of the Company
Including:
Guarantees provided to the shareholders, substantial
0
controllers and the related parties (D)
Guarantee provided directly or indirectly to objects with
0
over 70% of liability on asset ratio (E)
Amount of guarantee over 50% of the net asset (F) 0
Total of the above 3 (D+E+F) 0
Statement on the possible joint liabilities on the
None
guarantees not due yet (if any)
Statement of external guarantees violating the procedure
None
(if any)
(1) Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report period.
4. Other related transactions
□ Applicable √ Inapplicable
The Company made no other significant transaction in the report period.
X. Commitments of shareholders with over 5% of shares made in the report term or
carried over from previous terms
□ Applicable √ Inapplicable
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.
28
2015 Interim Report of China Fangda Group Co., Ltd.
XI. Engaging and dismissing of CPA
Whether the interim financial report is audited
□ Yes √ No
The interim report for H1 2015 has not been audited. This year, the Company engaged Grand
Thornton China (limited liability partnership) as the financial statement and internal control
auditing CPA with a fee of RMB1.3 million.
XII. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.
XIII. Delisting due to law violation
□ Applicable √ Inapplicable
The Company has no risks of delisting due to violating laws in the report period.
XIV. Other material events
□ Applicable √ Inapplicable
The Company had no other significant event to be explained in the report period.
29
2015 Interim Report of China Fangda Group Co., Ltd.
VI Changes in Share Capital and Shareholders
1. Changes in shares
In share
Before the change Change (+,-) After the change
Issued Transferr
Proporti Bonus Subto Proportio
Amount new ed from Others Amount
on shares tal n
shares reserves
I. Shares with trade
779,292 0.10% 779,292 0.10%
restriction conditions
3. Other domestic
779,292 0.10% 779,292 0.10%
shares
Domestic natural
779,292 0.10% 779,292 0.10%
person shares
II. Shares without trading
756,130,613 99.90% 756,130,613 99.90%
limited conditions
1. Common shares in
420,179,425 55.51% 420,179,425 55.51%
RMB
2. Foreign shares in
335,951,188 44.39% 335,951,188 44.39%
domestic market
100.00
III. Total of capital shares 756,909,905 756,909,905 100.00%
%
Reasons
□ Applicable √ Inapplicable
Approval of the change
□ Applicable √ Inapplicable
Share transfer
□ Applicable √ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share
attributable to common shareholders of the company in the most recent year and period
□ Applicable √ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable √ Inapplicable
Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable √ Inapplicable
30
2015 Interim Report of China Fangda Group Co., Ltd.
2. Shareholders and shareholding
In share
Number of shareholders of
Number of shareholders of
preferred stocks of which
common shares at the end 45,341 0
voting rights recovered in the
of the report period
report period (if any)
Shareholders holding 5% of the Company's common shares or top-10 shareholders
Number Pledging or freezing
of
common Change in Conditio Unconditio
Properties of Sharehol shares the nal nal
Shareholder
shareholder ding held at reporting common common Share status Amount
the end of period shares shares
the report
period
Shenzhen
Banglin Domestic
68,774,2 68,774,27
Technologies non-state legal 9.09% 0 Pledged 51,310,000
73 3
Development person
Co., Ltd.
Shengjiu
Foreign legal 44,834,8 44,834,88
Investment 5.92% +6,989,289
person 80 0
Ltd.
GUOTAI
JUNAN
Foreign legal 30,988,6 +29,263,84 30,988,69
SECURITIES( 4.09%
person 91 0 1
HONGKONG)
LIMITED
Domestic natural 18,834,7 18,834,70
Zhou Shijian 2.49% -2,288,775
person 06 6
Shenzhen
Domestic
Shilihe 17,860,9 17,860,99
non-state legal 2.36% 0
Investment 92 2
person
Co., Ltd.
Yunnan
International
Trust
15,169,8 +15,169,80 15,169,80
Co.,Ltd.-Zifen Others 2.00%
00 0 0
g Prudent
Struractural
Securities
31
2015 Interim Report of China Fangda Group Co., Ltd.
Investment
Trust Program
Domestic natural 10,701,0 -19,300,00 10,701,00
Huang Jupei 1.41%
person 00 0 0
Domestic natural 9,596,71
Jiang Jing 1.27% +566,800 9,596,714
person 4
Domestic natural 9,405,97
Yu Liandi 1.24% -715,952 9,405,971
person 1
Shanghai
Hong Kong Foreign legal 7,394,33
0.98% +5,951,637 7,394,335
Wanguo person 5
Securities
A strategic investor or ordinary
legal person becomes the Top10
None
common share shareholder due
a stock issue (see note 3)
Among the top 10 shareholders, Shenzhen Banglin Technology Development Co.,
Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen
Notes to top ten shareholder
Banglin Technology Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd.
relationship or "action in concert"
are related parties. The Company is not notified of other action-in-concert or related
parties among the other holders of current shares.
Top 10 shareholders of unconditional common shares
Category of shares
Shareholder Amount of common shares without sales restriction Category of
Amount
shares
Shenzhen Banglin Technologies RMB common
68,774,273 68,774,273
Development Co., Ltd. shares
Foreign shares
listed in
Shengjiu Investment Ltd. 44,834,880 44,834,880
domestic
exchanges
Foreign shares
GUOTAI JUNAN
listed in
SECURITIES(HONGKONG) 30,988,691 30,988,691
domestic
LIMITED
exchanges
RMB common
Zhou Shijian 18,834,706 18,834,706
shares
Shenzhen Shilihe Investment RMB common
17,860,992 17,860,992
Co., Ltd. shares
Yunnan International Trust 15,169,800 RMB common 15,169,800
32
2015 Interim Report of China Fangda Group Co., Ltd.
Co.,Ltd.-Zifeng Prudent shares
Struractural Securities
Investment Trust Program
RMB common
Huang Jupei 10,701,000 10,701,000
shares
RMB common
Jiang Jing 9,596,714 9,596,714
shares
RMB common
Yu Liandi 9,405,971 9,405,971
shares
Foreign shares
Shanghai Hong Kong Wanguo listed in
7,394,335 7,394,335
Securities domestic
exchanges
No action-in-concert or related
parties among the top10
Among the top 10 shareholders, Shenzhen Banglin Technology Development Co.,
unconditional common share
Ltd. and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen
shareholders and between the
Banglin Technology Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd.
top10 unconditional common
are related parties. The Company is not notified of other action-in-concert or related
share shareholders and the
parties among the other holders of current shares.
top10 common share
shareholders
Zhou Shijian holds 18,834,706 shares of the Company through GF Securities
customer credit transaction guarantee securities account; Huang Jupei holds
Top-10 common share 10,700,000 shares of the Company through GF Securities customer credit transaction
shareholders participating in guarantee securities account, Jiang Jing holds 9,596,714 shares of the Company
margin trade (if any) through Everbright Securities customer credit transaction guarantee securities
account; Yu Liandi holds 9,405,971 shares of the Company through GF Securities
customer credit transaction guarantee securities account.
By the end of the trading day August 14, 2015, China Securities Finance Corporation Limited held 2,512,300 A-shares of the
Company, accounting for 0.33% of the aggregate.
By the end of the trading day August 14, 2015, Central Huijin Investment Ltd. held 841,900 A-shares of the Company, accounting
for 0.11% of the aggregate.
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 by the Company’s top 10 shareholders of common shares and top 10
shareholders of unconditional common shares in the report period
3. Changes in controlling shareholder or actual controller
Changes in the controlling shareholder in the reporting period
33
2015 Interim Report of China Fangda Group Co., Ltd.
□ Applicable √ Inapplicable
No change in the controlling shareholder in the report period
Change in the actual controller in the report period
□ Applicable √ Inapplicable
No change in the actual shareholder in the report period
4. Statement on share increasing proposal raised by the shareholders or their
action-in-concert parties in the reporting period
√ Applicable □ Inapplicable
Disclosure date
Name of Actual Initial disclosure
Number of Proportion of Actual number of the share
shareholder/ proportion of date of the
shares to be shares to be of shares increase plan
action-in-concer shares share increase
increased increased increased implementation
t parties increased plan
completion
Shengjiu
6,989,289 0.92%
Investment Ltd.
34
2015 Interim Report of China Fangda Group Co., Ltd.
VII Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
35
2015 Interim Report of China Fangda Group Co., Ltd.
VIII Particulars about the Directors, Supervisors, and Senior
Management
1. Changes in shareholding of Directors, Supervisors and Senior Management
□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management shareholding has remained unchanged
during the report period. For details, please refer to the 2014 annual report.
2. Changes in the Directors, Supervisors and Senior Executives
□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management have remained unchanged during the
report period. For details, please refer to the 2014 annual report.
36
2015 Interim Report of China Fangda Group Co., Ltd.
IX Financial Statements
1. Auditors report
Whether the interim report is audited
□ Yes √ No
The financial statements 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.
June 30, 2015
In RMB
Items Closing balance Ending balance
Current asset:
Monetary capital 373,005,361.74 212,430,798.87
Settlement provision
Outgoing call loan
Financial assets measured at
fair value with variations accounted 16,087,644.00 13,410,790.00
into current income account
Derivative financial assets
Notes receivable 22,508,576.56 83,325,725.70
Account receivable 1,358,125,736.41 1,105,242,251.46
Prepayment 121,554,195.91 29,234,231.49
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable
Dividend receivable
Other receivables 117,112,102.43 48,950,647.67
37
2015 Interim Report of China Fangda Group Co., Ltd.
Repurchasing of financial
assets
Inventory 1,043,866,524.38 982,441,187.05
Assets held for sales
Non-current assets due in 1
year
Other current assets 5,898,698.67 234,986,107.72
Total current assets 3,058,158,840.10 2,710,021,739.96
Non-current assets:
Loan and advancement
provided
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity
10,105,655.37 11,048,660.43
investment
Investment real estate 258,635,247.12 226,279,523.39
Fixed assets 483,208,904.28 489,714,684.63
Construction in process 1,245,195.61 341,749.17
Engineering materials
Disposal of fixed assets 1,984.71 26,918.21
Productive biological assets
Gas & petrol
Intangible assets 97,332,228.66 98,947,331.09
R&D expense
Goodwill 26,279,395.89 26,279,395.89
Long-term amortizable
4,994,009.78 4,119,362.63
expenses
Deferred income tax assets 56,965,966.03 52,616,656.38
Other non-current assets 47,830,966.48 43,323,878.63
Total of non-current assets 986,599,553.93 952,698,160.45
Total of assets 4,044,758,394.03 3,662,719,900.41
Current liabilities
Short-term loans 1,314,850,000.00 1,100,000,000.00
Loans from Central Bank
38
2015 Interim Report of China Fangda Group Co., Ltd.
Deposit received and held for
others
Call loan received
Financial liabilities measured at
fair value with variations accounted
into current income account
Derivative financial liabilities 1,445,950.00
Notes payable 244,756,319.76 227,266,485.57
Account payable 678,407,941.15 685,108,346.73
Prepayment received 108,253,046.93 122,285,231.14
Selling of repurchased financial
assets
Fees and commissions payable
Employees’ wage payable 26,915,651.60 41,703,314.26
Taxes payable 59,813,185.81 58,696,926.25
Interest payable 1,775,665.69 2,055,911.11
Dividend payable
Other payables 72,218,632.30 47,425,682.44
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liabilities due in 1
6,000,000.00 6,000,000.00
year
Other current liabilities
Total current liabilities 2,514,436,393.24 2,290,541,897.50
Non-current liabilities:
Long-term loans 141,053,670.40
Bond payable
Including: preferred stock
Perpetual bond
Long-term payable 6,000,000.00
Long-term employees’ wage
payable
Special payables
39
2015 Interim Report of China Fangda Group Co., Ltd.
Anticipated liabilities 481,740.34 5,859,045.98
Deferred earning 9,942,240.53 10,049,892.04
Deferred income tax liabilities 58,084,961.27 49,734,436.90
Other non-current liabilities
Total of non-current liabilities 209,562,612.54 71,643,374.92
Total liabilities 2,723,999,005.78 2,362,185,272.42
Owner’s equity:
Share capital 756,909,905.00 756,909,905.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 79,099,220.38 79,099,220.38
Less: Shares in stock
67. Other miscellaneous
-1,137,225.87 91,831.63
income
Special reserves
Surplus reserves 48,842,080.76 48,842,080.76
Common risk provisions
Retained profit 378,598,177.41 349,987,825.69
Total of owner’s equity belong to the
1,262,312,157.68 1,234,930,863.46
parent company
Minor shareholders’ equity 58,447,230.57 65,603,764.53
Total of owners’ equity 1,320,759,388.25 1,300,534,627.99
Total of liabilities and owner’s
4,044,758,394.03 3,662,719,900.41
interest
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen
Yonggang
2. Balance Sheet of the Parent Company
In RMB
Items Closing balance Ending balance
Current asset:
Monetary capital 80,684,551.99 22,256,065.49
Financial assets measured at
fair value with variations accounted
40
2015 Interim Report of China Fangda Group Co., Ltd.
into current income account
Derivative financial assets
Notes receivable
Account receivable 511,660.60 511,660.60
Prepayment 50,903.86
Interest receivable
Dividend receivable 28,639,627.17 28,639,627.17
Other receivables 357,559,369.64 254,604,163.79
Inventory
Assets held for sales
Non-current assets due in 1
year
Other current assets 1,051,197.12 31,005,620.01
Total current assets 468,446,406.52 337,068,040.92
Non-current assets:
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity
1,129,731,553.95 1,130,674,559.01
investment
Investment real estate 231,282,493.46 198,513,586.15
Fixed assets 58,959,843.98 60,145,112.89
Construction in process
Engineering materials
Disposal of fixed assets
Productive biological assets
Gas & petrol
Intangible assets 2,129,412.09 2,256,575.64
R&D expense
Goodwill
Long-term amortizable
355,896.09 81,367.47
expenses
Deferred income tax assets 23,344,402.31 22,623,560.72
Other non-current assets 220,000,000.00 220,000,000.00
Total of non-current assets 1,665,803,601.88 1,634,294,761.88
41
2015 Interim Report of China Fangda Group Co., Ltd.
Total of assets 2,134,250,008.40 1,971,362,802.80
Current liabilities
Short-term loans 400,000,000.00 350,000,000.00
Financial liabilities measured at
fair value with variations accounted
into current income account
Derivative financial liabilities
Notes payable
Account payable 606,941.85 606,941.85
Prepayment received 693,045.60 832,772.45
Employees’ wage payable 851,100.80 1,956,875.76
Taxes payable 1,553,431.48 567,424.56
Interest payable 686,166.66 659,266.67
Dividend payable
Other payables 375,721,848.04 270,281,330.40
Liabilities held for sales
Non-current liabilities due in 1
year
Other current liabilities
Total current liabilities 780,112,534.43 624,904,611.69
Non-current liabilities:
Long-term loans
Bond payable
Including: preferred stock
Perpetual bond
Long-term payable
Long-term employees’ wage
payable
Special payables
Anticipated liabilities
Deferred earning
Deferred income tax liabilities 106,043,571.56 97,693,047.19
Other non-current liabilities
Total of non-current liabilities 106,043,571.56 97,693,047.19
Total liabilities 886,156,105.99 722,597,658.88
42
2015 Interim Report of China Fangda Group Co., Ltd.
Owner’s equity:
Share capital 756,909,905.00 756,909,905.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 38,598,565.00 38,598,565.00
Less: Shares in stock
67. Other miscellaneous
91,831.63 91,831.63
income
Special reserves
Surplus reserves 48,842,080.76 48,842,080.76
Retained profit 403,651,520.02 404,322,761.53
Total of owners’ equity 1,248,093,902.41 1,248,765,143.92
Total of liabilities and owner’s
2,134,250,008.40 1,971,362,802.80
interest
3. Consolidated Income Statement
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Total revenue 1,150,115,523.53 822,792,739.02
Incl. Business income 1,150,115,523.53 822,792,739.02
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 1,114,562,764.23 781,151,190.76
Incl. Business cost 940,487,258.35 668,447,444.31
Interest expense
Fee and commission paid
Insurance discharge
payment
Net claim amount paid
Net insurance policy
reserves provided
Insurance policy dividend
43
2015 Interim Report of China Fangda Group Co., Ltd.
paid
Reinsurance expenses
Business tax and
17,537,240.22 11,358,459.71
surcharge
Sales expense 41,009,137.46 18,245,120.86
Administrative expense 75,547,311.64 67,185,503.16
Financial expenses 25,609,734.67 11,047,478.14
Asset impairment loss 14,372,081.89 4,867,184.58
Plus: gains from change of fair
35,445,761.31
value (“-“ for loss)
Investment gains (“-“ for
1,547,997.68 969,118.50
loss)
Incl. Investment gains from
1,256,994.94 -41,807.57
affiliates and joint ventures
Exchange gains (“-“ for loss)
3. Operational profit (“-“ for loss) 72,546,518.29 42,610,666.76
Plus: non-operational income 3,425,924.45 3,041,518.40
Incl. Loss from disposal of
50,854.12 218,095.40
non-current assets
Less: non-operational
15,643,131.79 2,061,903.28
expenditure
其中：Loss of non-current
504,805.05 1,569,906.67
assets disposal
4. Gross profit (“-“ for loss) 60,329,310.95 43,590,281.88
Less: Income tax expenses 16,168,196.04 4,362,903.54
5. Net profit (“-“ for net loss) 44,161,114.91 39,227,378.34
Net profit attributable to the
51,317,648.87 40,769,958.24
owners of parent company
Minor shareholders’ equity -7,156,533.96 -1,542,579.90
6. After-tax net amount of other misc.
-1,229,057.50 35,700.00
incomes
After-tax net amount of other misc.
-1,229,057.50 35,700.00
incomes attributed to parent's owner
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
1. Change in net liabilities
44
2015 Interim Report of China Fangda Group Co., Ltd.
or assets due to re-measurement set
benefit program
2. Shares enjoyed in other
misc. incomes that cannot be
reclassified into gain and loss by the
invested entity under the equity law
(2) Other misc. incomes that will
-1,229,057.50 35,700.00
be re-classified into gain and loss
1. Shares enjoyed in other
misc. incomes that cannot be
reclassified into gain and loss by the
invested entity under the equity law
2．Change in the fair value
of financial asset for sale
3 Held-to-mature
investment reclassified as gain and
loss in the financial assets for sales
4. Effective part in the gain
-1,229,057.50 35,700.00
and loss of arbitrage of cash flow
5. Translation difference of
foreign exchange statement
6. Others
After-tax net of other misc. income
attributed to minority shareholders
7. Total of misc. incomes 42,932,057.41 39,263,078.34
Total of misc. incomes
attributable to the owners of the 50,088,591.37 40,805,658.24
parent company
Total misc gains attributable to
-7,156,533.96 -1,542,579.90
the minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.07 0.05
(2) Diluted earnings per share 0.07 0.05
Net profit contributed by entities merged under common control in the report period was RMB0.00, net
profit realized by parties merged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen
Yonggang
45
2015 Interim Report of China Fangda Group Co., Ltd.
4. Income Statement of the Parent Company
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Turnover 15,377,309.73 14,332,254.25
Less: Operation cost 1,670,215.88 2,129,602.96
Business tax and
1,227,826.65 1,179,113.66
surcharge
Sales expense
Administrative expense 11,276,930.71 11,316,843.92
Financial expenses 5,120,806.86 5,364,994.52
Asset impairment loss 1,246,405.99 -53,159.58
Plus: gains from change of fair
32,768,907.31
value (“-“ for loss)
Investment gains (“-“ for
1,312,956.58 -41,807.57
loss)
Incl. Investment gains from
1,256,994.94 -41,807.57
affiliates and joint ventures
2. Operational profit (“-“ for loss) 28,916,987.53 -5,646,948.80
Plus: non-operational income 751,855.29 1,326,268.74
Incl. Loss from disposal of
3,581.20 19,118.43
non-current assets
Less: non-operational
3,104.40 327,022.34
expenditure
Incl. Loss from disposal of
1,932.08 125,522.34
non-current assets
3. Gross profit (“-“ for loss) 29,665,738.42 -4,647,702.40
Less: Income tax expenses 7,629,682.78 -1,100,761.67
4. Net profit (“-“ for net loss) 22,036,055.64 -3,546,940.73
5. After-tax net amount of other
misc. incomes
(1) Other misc. incomes that
cannot be re-classified into gain and
loss
1. Change in net
liabilities or assets due to
re-measurement set benefit program
46
2015 Interim Report of China Fangda Group Co., Ltd.
2. Shares enjoyed in
other misc. incomes that cannot be
reclassified into gain and loss by the
invested entity under the equity law
(2) Other misc. incomes that will
be re-classified into gain and loss
1. Shares enjoyed in
other misc. incomes that cannot be
reclassified into gain and loss by the
invested entity under the equity law
2．Change in the fair
value of financial asset for sale
3 Held-to-mature
investment reclassified as gain and
loss in the financial assets for sales
4. Effective part in the
gain and loss of arbitrage of cash
flow
5. Translation difference
of foreign exchange statement
6. Others
6. Total of misc. incomes 22,036,055.64 -3,546,940.73
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated Cash Flow Statement
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
880,753,505.06 749,511,473.43
products and providing of services
Net increase of customer
deposits and capital kept for brother
company
Net increase of loans from
central bank
47
2015 Interim Report of China Fangda Group Co., Ltd.
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
Increase in proposal of financial
assets measured at fair value with
variations accounted into current
income account
Cash received as interest,
processing fee, and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax refunded 1,487,373.49 575,871.97
Other cash received from
37,271,825.34 47,867,585.96
business operation
Sub-total of cash inflow from
919,512,703.89 797,954,931.36
business operations
Cash paid for purchasing
922,181,248.55 852,304,489.33
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 141,611,724.17 105,126,526.67
Taxes paid 54,257,534.98 43,416,941.46
Other cash paid for business
76,174,267.38 65,659,703.51
activities
48
2015 Interim Report of China Fangda Group Co., Ltd.
Sub-total of cash outflow from
1,194,224,775.08 1,066,507,660.97
business operations
Cash flow generated by business
-274,712,071.19 -268,552,729.61
operations, net
2. Cash flow generated by
investment:
Cash received from investment
331,500,000.00
recovery
Cash received as investment
2,491,002.79 1,008,267.73
profit
Net cash retrieved from
disposal of fixed assets, intangible 134,190.00 4,577,733.50
assets, and other long-term assets
Net cash received from disposal
of subsidiaries or other operational
units
Other investment-related cash
133,500.00
received
Sub-total of cash inflow generated
334,125,192.79 5,719,501.23
from investment
Cash paid for construction of
fixed assets, intangible assets and 31,982,236.78 8,981,293.29
other long-term assets
Cash paid as investment 113,700,000.00
Net increase of loan against
pledge
Net cash paid for acquiring
subsidiaries and other operational
units
Other cash paid for investment 40,117,900.00 130,500.00
Subtotal of cash outflows 185,800,136.78 9,111,793.29
Cash flow generated by investment
148,325,056.01 -3,392,292.06
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders
49
2015 Interim Report of China Fangda Group Co., Ltd.
Cash received from borrowed
707,903,670.40 356,000,000.00
loans
Cash received from bond
placing
Other cash received from
financing activities
Subtotal of cash inflow from
707,903,670.40 356,000,000.00
financing activities
Cash paid to repay debts 352,000,000.00
Cash paid as dividend, profit, or
64,660,840.58 41,950,857.15
interests
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing
55,110,039.70 156,090.75
activities
Subtotal of cash outflow from
471,770,880.28 42,106,947.90
financing activities
Net cash flow generated by
236,132,790.12 313,893,052.10
financing activities
4. Influence of exchange rate
changes on cash and cash -13,080.19 -7,348.79
equivalents
5. Net increase in cash and cash
109,732,694.75 41,940,681.64
equivalents
Plus: Balance of cash and cash
102,638,232.19 285,237,255.38
equivalents at the beginning of term
6. Balance of cash and cash
212,370,926.94 327,177,937.02
equivalents at the end of the period
6. Cash Flow Statement of the Parent Company
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Net cash flow from business
operations:
Cash received from sales of
11,243,204.83 12,110,570.32
products and providing of services
Tax refunded
Other cash received from 515,148,759.29 486,019,552.00
50
2015 Interim Report of China Fangda Group Co., Ltd.
business operation
Sub-total of cash inflow from
526,391,964.12 498,130,122.32
business operations
Cash paid for purchasing
2,136,699.94 2,860,543.41
products and services
Cash paid to and for the staff 7,189,717.90 7,871,822.76
Taxes paid 1,394,750.88 1,340,978.19
Other cash paid for business
469,504,100.24 784,384,264.75
activities
Sub-total of cash outflow from
480,225,268.96 796,457,609.11
business operations
Cash flow generated by business
46,166,695.16 -298,327,486.79
operations, net
2. Cash flow generated by
investment:
Cash received from investment
30,000,000.00
recovery
Cash received as investment
8,963,295.02
profit
Net cash retrieved from
disposal of fixed assets, intangible 4,190.00 171,005,300.50
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
38,967,485.02 171,005,300.50
from investment
Cash paid for construction of
fixed assets, intangible assets and 963,791.92 1,118,624.57
other long-term assets
Cash paid as investment
Net cash paid for acquiring
subsidiaries and other operational
units
Other cash paid for investment 40,000,000.00
Subtotal of cash outflows 40,963,791.92 1,118,624.57
51
2015 Interim Report of China Fangda Group Co., Ltd.
Cash flow generated by investment
-1,996,306.90 169,886,675.93
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
50,000,000.00 96,000,000.00
loans
Cash received from bond
placing
Other cash received from
financing activities
Subtotal of cash inflow from
50,000,000.00 96,000,000.00
financing activities
Cash paid to repay debts
Cash paid as dividend, profit, or
34,570,863.79 28,150,357.15
interests
Other cash paid for financing
1,171,039.70 156,090.75
activities
Subtotal of cash outflow from
35,741,903.49 28,306,447.90
financing activities
Net cash flow generated by
14,258,096.51 67,693,552.10
financing activities
4. Influence of exchange rate
changes on cash and cash
equivalents
5. Net increase in cash and cash
58,428,484.77 -60,747,258.76
equivalents
Plus: Balance of cash and cash
22,006,065.49 67,973,808.76
equivalents at the beginning of term
6. Balance of cash and cash
80,434,550.26 7,226,550.00
equivalents at the end of the period
7. Statement of Change in Owners Equity (Consolidated)
Amount of the Current Term
In RMB
Current period
Items Owners’ Equity Attributable to the Parent Company Minor Total of
Share Other equity tools Capital Less: 67. Special Surplu Comm Retain shareh owners
52
2015 Interim Report of China Fangda Group Co., Ltd.
capita reserve Shares Other reserve s on risk ed olders’ ’ equity
Prefe Perp
l Other s in stock miscell s reserve provisi profit equity
rred etual
s aneous s ons
share bond
income
756,9 349,98 1,300,5
1. Balance at the 79,099, 91,831. 48,842, 65,603,
09,90 7,825.6 34,627.
end of last year 220.38 63 080.76 764.53
5.00 9 99
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation of
entities under
common control
Others
2. Balance at the 756,9 349,98 1,300,5
79,099, 91,831. 48,842, 65,603,
beginning of 09,90 7,825.6 34,627.
220.38 63 080.76 764.53
current year 5.00 9 99
3. Amount of
change in current -1,229, 28,610, -7,156, 20,224,
term (“-“ for 057.50 351.72 533.96 760.26
decrease)
(1) Total of misc. -1,229, 51,317, -7,156, 42,932,
incomes 057.50 648.87 533.96 057.41
(2) Investment or
decreasing of
capital by owners
1. Common
shares
contributed by
shareholders
2. Capital
contributed by
other equity
instrument
helders
3. Amount of
53
2015 Interim Report of China Fangda Group Co., Ltd.
shares paid and
accounted as
owners’ equity
4. Others
-22,70 -22,70
(3) Profit
7,297.1 7,297.1
allotment
5 5
1. Providing of
surplus reserves
2. Common risk
provision
3. Allotment to -22,70 -22,70
the owners (or 7,297.1 7,297.1
shareholders) 5 5
4. Others
(4) 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
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
756,9 378,59 1,320,7
4. Balance at the 79,099, -1,137, 48,842, 58,447,
09,90 0.00 8,177.4 59,388.
end of this period 220.38 225.87 080.76 230.57
5.00 1 25
54
2015 Interim Report of China Fangda Group Co., Ltd.
Amount of Last Year
In RMB
Last period
Owners’ Equity Attributable to the Parent Company
Other equity tools 67. Minor
Surplu Comm Total of
Items Share Capital Less: Other Special shareh
s on risk Retaine owners
Prefe Perp olders’
capita Other reserve Shares miscell reserve
reserve provisi d profit ’ equity
rred etual equity
l s s in stock aneous s
share bond s ons
income
756,9 278,14 55,432 1,216,0
1. Balance at the 79,099, 91,831. 46,389,
09,90 9,631.6 ,446.8 72,177.
end of last year 220.38 63 142.21
5.00 3 9 74
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation of
entities under
common control
Others
2. Balance at the 756,9 278,14 55,432 1,216,0
79,099, 91,831. 46,389,
beginning of 09,90 9,631.6 ,446.8 72,177.
220.38 63 142.21
current year 5.00 3 9 74
3. Amount of
change in current 35,700. 18,062, -1,542, 16,555,
term (“-“ for 00 661.09 579.90 781.19
decrease)
(1) Total of misc. 35,700. 40,769, -1,542, 39,263,
incomes 00 958.24 579.90 078.34
(2) Investment or
decreasing of
capital by owners
1. Common
shares
contributed by
shareholders
55
2015 Interim Report of China Fangda Group Co., Ltd.
2. Capital
contributed by
other equity
instrument
helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
-22,70
(3) Profit -22,707
7,297.1
allotment ,297.15
5
1. Providing of
surplus reserves
2. Common risk
provision
3. Allotment to -22,70
-22,707
the owners (or 7,297.1
,297.15
shareholders) 5
4. Others
(4) 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
(5) Special
reserves
1. Provided this
year
56
2015 Interim Report of China Fangda Group Co., Ltd.
2. Used this term
(6) Others
756,9 296,21 53,889 1,232,6
4. Balance at the 79,099, 127,53 46,389,
09,90 2,292.7 ,866.9 27,958.
end of this period 220.38 1.63 142.21
5.00 2 9 93
8. Statement of Change in Owners Equity (Parent Company)
Amount of the Current Term
In RMB
Current period
Other equity tools Other
Less: Retain Total of
Items Share Preferr Perpet Capital miscella Special Surplus
Shares ed owners’
capital ed ual Others reserves neous reserves reserves
in stock profit equity
share bond income
756,90 404,32
1. Balance at the 38,598,5 91,831.6 48,842,0 1,248,76
9,905.0 2,761.5
end of last year 65.00 3 80.76 5,143.92
0 3
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the 756,90 404,32
38,598,5 91,831.6 48,842,0 1,248,76
beginning of 9,905.0 2,761.5
65.00 3 80.76 5,143.92
current year 0 3
3. Amount of
change in current -671,24 -671,241
term (“-“ for 1.51 .51
decrease)
(1) Total of misc. 22,036, 22,036,0
incomes 055.64 55.64
(2) Investment or
decreasing of
capital by owners
1. Common
shares
57
2015 Interim Report of China Fangda Group Co., Ltd.
contributed by
shareholders
2. Capital
contributed by
other equity
instrument
helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
(3) Profit -22,707 -22,707,
allotment ,297.15 297.15
1. Providing of
surplus reserves
2. Allotment to
-22,707 -22,707,
the owners (or
,297.15 297.15
shareholders)
3. Others
(4) 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
(5) Special
reserves
1. Provided this
year
2. Used this term
58
2015 Interim Report of China Fangda Group Co., Ltd.
(6) Others
756,90 403,65
4. Balance at the 38,598,5 91,831.6 48,842,0 1,248,09
9,905.0 1,520.0
end of this period 65.00 3 80.76 3,902.41
0 2
Amount of Last Year
In RMB
Last period
Other equity tools Other
Less: Retain Total of
Items Share Preferr Perpet Capital miscella Special Surplus
Shares ed owners’
capital ed ual Others reserves neous reserves reserves
in stock profit equity
share bond income
756,90 404,95
1. Balance at the 38,598,5 91,831.6 46,389,1 1,246,94
9,905.0 3,611.7
end of last year 65.00 3 42.21 3,055.61
0 7
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the 756,90 404,95
38,598,5 91,831.6 46,389,1 1,246,94
beginning of 9,905.0 3,611.7
65.00 3 42.21 3,055.61
current year 0 7
3. Amount of
change in current -26,254 -26,254,
term (“-“ for ,237.88 237.88
decrease)
(1) Total of misc. -3,546, -3,546,9
incomes 940.73 40.73
(2) Investment or
decreasing of
capital by owners
1. Common
shares
contributed by
shareholders
2. Capital
contributed by
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2015 Interim Report of China Fangda Group Co., Ltd.
other equity
instrument
helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
(3) Profit -22,707 -22,707,
allotment ,297.15 297.15
1. Providing of
surplus reserves
2. Allotment to
-22,707 -22,707,
the owners (or
,297.15 297.15
shareholders)
3. Others
(4) 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
(5) Special
reserves
1. Provided this
year
2. Used this term
(6) Others
4. Balance at the 756,90 38,598,5 91,831.6 46,389,1 378,69 1,220,68
end of this period 9,905.0 65.00 3 42.21 9,373.8 8,817.73
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2015 Interim Report of China Fangda Group Co., Ltd.
0 9
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 Shenzhen Government Document No. (1995)194,
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.
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
JiangxiNew Material, Shenyang Fangda, Fangda Property and Fangda New Energy.
The Company and its subsidiaries (collectively "the Group”) run businesses including (1) curtain
wall segment, production and sales of curtain wall materials, design, production and installation of
curtain walls; (2) railway transportation segment, assembly and production of subway screen doors; (3)
real estate property segment, development and management of real estate properties; (4) new energy
segment, R&D, installation and sales of PV devices, design and engineering of PV power plants., R&D,
design, production, sales and installation of lamps, auxiliaries and other lighting devices, LED products
and metal products.
The consolidation scope of the financial statements covers the Company and all subsidiaries. The
scope has remained unchanged in the period.
IV. Basis for the preparation of financial statements
1. Preparation basis
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 Group 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 2014) issued by the CSRC.
2. Continuous operation
The Company is able to maintain continous operations. The company prepares the financial
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2015 Interim Report of China Fangda Group Co., Ltd.
statements based on continuous operation.
The Group'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.
V. Significant Accounting Policies and Estimates
Sepcific accounting policy and estimate prompt:
The Group determines the investment real estate accounting policies and income recognition policies
according to the business features. See 14 and 23 of Note V Significant Accounting Policies and
Estimates.
1. 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 30.06.15, and business performance and
cash flow situation in Year 2015 of the Company frankly and completely.
2. Fiscal period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Group takes RMB as the standard currency for bookkeeping.
5. 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 in the finaly
controlling party’s consolidated financial statements 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.
(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 from the acquired party are
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2015 Interim Report of China Fangda Group Co., Ltd.
recognized on the fair value.
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 the fair value exceeds the costs, it is included in the income statement for
the period after being re-examined.
(3) Treatment of transaction cost in mergers
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.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidation scope is determined based on control. Control means the power that the Group
possesses over its invested entities. It enables the Group to enjoy returns by participating in their
operations. The amount of returns can be affected by the power. Subsidiaries are enterprises controlled
by the Company.
(2) 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. 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.
New subsidiaries and businesses caused by merger of enterprises under common control in the report
period are considered being incorporated into the Group’s consolidation scope since the date of being
controlled by the final controlling party.
New subsidiaries and businesses caused by merger of enterprises not under common control are
considered being incorporated into the Group’s consolidation scope since of acquisition date with
income, costs and profits incorporated into the consolidated income statement and cash flows into the
consolidated cash flow statement.
The part of the shareholders’ equity in subsidiaries not owned the Company are 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 subsudiaries at the beginning of the period, the excessive part will offset the minority shareholders’
equity.
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2015 Interim Report of China Fangda Group Co., Ltd.
7. Joint venture arrangement category and fiscal treatment of joint operation
8. 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 Group and easily converted into cash with known amount.
9. Foreign exchange business and foreign exchange statement translation
Trades of the Group made in foreign currencies are translated into RMB basing on the spot exchange
rate on the date when the trade is conducted.
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 are 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.
10. Financial instrument
Financial instrument refers to a company’s financial assets and contracts that form other units of
financial liabilitie or equity instruments.
(1) Recognition and derecognition of financial instrument
The Group recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
Financial asset is derecognized when:
The contractual right to receive the cash flows of the financial assets is terminated;
② The financial asset is transferred and meets the following derecognition condition.
When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of
the financial liabilities are derecognized. When the Group (debtor) and creditor enter into an agreement
to replace the existing financial liabilities by undertaking new financial liabilities and the contract terms
for the new financial liabilities are essentially different from those for the existing one, the existing
financial liabilities will be derecognized and new financial liabilities will be recognized.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
(2) Classification and measurement of financial assets
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2015 Interim Report of China Fangda Group Co., Ltd.
The Group’s financial assets are classified into two categories duing initial recognition: financial assets
measured at fair value and accounted into the current gain/loss account, loans and receivables.
Financial assets are measured at the fair value at the initial recognition. For financial assets
measured at fair value with variations accounted into current income account, related
transaction expenses are accounted into the current income. For other financial assets, the
related transaction expenses are accounted into the initial recognized amounts.
Financial assets measured at fair value with variations accounted into current income account
It includes transactional financial assets and financial assets measured by fair value and with variations
accounted into current gain/loss account at initial recognition. The financial assets are further measured
by fair value with the gain/loss created by variations in fair value and related dividends and interest
accounted into the current gain/loss account.
Receivables
Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount
or can be confirmed, including receivable accounts and other receivables (Note 5. 11).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.
(3) Classification and measurement of financial liabilities
The Group’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.
(4) Fair value of financial instrument
See Note 5. 29 for the recognition of fair value of financial assets and liabilities.
(5) Impairment of financial assets
Financial assets measured at fair value with variations accounted into current income account. The
Group 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 Group.
Objective evidence of impairment in financial assets includes:
Serious financial difficulties for issuers or debtors;
②Debtors violate contracts: default or delay payment of interest or principals;
③The Group makes concessions for debtors with financial difficulties due to economic or legal reasons;
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2015 Interim Report of China Fangda Group Co., Ltd.
④Debtors are very like to go bankrupty or conduct financial restructuring;
⑤Financial assets cannot be traded in an active market due to serial financial difficulties of issuers;
⑥It cannot be identified whether the cash flow of an asset in a group of financial assets decreases, while
the estimated future cash flow of the group of financial assets will decrease from the initial recognition
and the decrease can be measured, including:
- The payment capability of the debtor of the group of financial assets weakens;
- The economy of the country or district where the debtor is located faces problems that may lead to
failure in payment of the group of financial assets;
⑦Technical, market, economic or legal environments change adversely, leading to that the investor may
not be able to recover the investment;
⑧Other objective evident that proves impairment in the financial assets
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 guanrantee considered.
Conduct imparement test separately for major financial assets. If there is objective evidence suggesting
impairement, 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 Group 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.
(6) Transfer of financial assets
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.
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2015 Interim Report of China Fangda Group Co., Ltd.
When the Group 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 Group is involving in the financial asset.
(7) Offset of financial assets and liabilities
When the Group has the legal right to offset recognized financial assets and liabilities, is able to execute
the right, and the Group plans to settle them in net value and cash the financial assets and repay the
financial assets, the amount after the offset will be present in the balance sheet. Besides that, financial
assets and liabilities will be presented separately in the balance sheet.
11. Receivables
(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
Judging basis or standard of major individual amount receivables over RMB2 million (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
individually on each large amount receivables, and
Provision method for account receivable with major
recognizes impairment and provides bad debt provision
individual amount and bad debt provision provided
when the impairment is recognized based on objective
individually
evidence. Those not impaired are accounted along with the
minor amount receivables and recognized in risk groups.
(2) Receivables for which bad debt provision is made by credit risk group
Group Method of bad debt provision
Account age Aging method
Receivable accounts consolidated Other method
Receivables adopting the aging method in the group:
√ Applicable □ Inapplicable
Age Providing rate for receivable account Providing rate for other receivables
Within 1 year (inclusive) 3.00% 3.00%
1-2 years 10.00% 10.00%
2-3 years 30.00% 30.00%
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2015 Interim Report of China Fangda Group Co., Ltd.
Over 3 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) Receivables with minor individual amount and bad debt provision provided individually
Reasons for separate bad debt provision Long account age or deterioration of customer creditability
According to the difference between the present value of
Method of bad debt provision
future cash flow and the book value
12. Inventories
(1) Classification of inventories
The Group’s inventories include purchased materials, raw materials, low-value consumables, OEM
materials, products in process, semi-finished goods, finished goods, inventory, development costs, and
construction in process.
(2) Pricing of inventory
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks
and goods shipped 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 development cost includes land transfer payment, infrastructure and facility costs, installation
engineering costs, borrows before completion of the development and other costs during the
development process.
(3) Recognition of inventory realizable value and providing of impairment provision
The inventory realizable value is equal to the estimated sales price of the inventory minus costs to be
incurred when it is completed, estimated sales cost and related taxes. When the realizable value is
recognized, the value should be based on concrete evidence obtained with the purpose of helding the
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2015 Interim Report of China Fangda Group Co., Ltd.
inventory and impacts of post-balance-sheet events taken into consideration.
On the balance sheet day, if the inventory cost is higher than the realizable net value, inventory
depreciation provision should be made. The Group makes inventory depreciation provision for individual
inventory or inventory group. On the balance sheet date, where the impact of inventory depreciation
value disappears, the depreciation provision will be written back.
(4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
13. Long-term share equity investment
The Group’s long-term share equity investment includes equity investment with actual control and major
influence upon invested entities. Invested entities that the Group possesses major influence are joint
ventures of the Group.
(1) Recognition of initial investment costs
For long-term share equity investment generated by merger of enterprises: for long-term share equity
investment obtained by merger of enterprises under common control, the investment cost is the book
value in the finaly controlling party’s consolidated financial statements with the merged parties on the
merger day; for long-term share equity investment obtained by merger of enterprises not under common
control, the investment cost is the merger cost.
For those obtained with cash payment, the initial investment cost is the actual amount paid.
(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; uses the equity method to measure the investment in joint
ventures.
For long-term share equity investment measured using the cost method, profit distribution made by
invested entities is recognized as investment gains and included in profits and losses in the current
period.
When the equity method is used, the net profit and loss shared is recognized as investment gain and the
book value of the investment should be adjusted accordingly.
(3) Basis for recognition of 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
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2015 Interim Report of China Fangda Group Co., Ltd.
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. When the Company holds less than 20% (exclusive) 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 no major influence
on the invested entity.
(4) Impairment examination and providing of impairment provision
See Note V 19 for the assets impairment provision method for investment in subsidiaries and joint
ventures.
14. Investment real estate
Measurement method of investment real estate
Fair value method
Basis of choosing fair value method
Investment real estates of the Group are buildings leased.
For investment real estates with an active real estate transaction market and the Group can obtain
market price and other information of same or similar real estates to reasonably estimate the investment
real estates’ fair value, the Group will use the fair value mode to measure the investment real estates
subsequently. Variations in fair value are accounted into the current gain/loss account. If the conditions
are not met, cost method is used for subsequent measurement.
The fair value of investment real estates 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 estates
with book value and related taxes deducted is accounted into the current gain/loss account.
See Note V 19 for the assets impairment provision method for the investment real estates that are
subsequently measured using the cost model.
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2015 Interim Report of China Fangda Group Co., Ltd.
15. Fixed assets
(1) Recognition conditions
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
Group measures fixed assets at the actual costs when the fixed assets are obtained
(2) Depreciation method
Annual depreciation
Type Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 35-45 10.00% 2-2.57
Mechanical equipment Average age 10 10.00% 9
Transportation facilities Average age 5 10.00% 18
Electronics and other
Average age 5 10.00% 18
devices
16.Construction in process
The Group 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.
Construction in process will be transferred to fixed assets when it reaches the preset service condition.
See Note V 19 for the provision method for construction in process.
17. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production 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 or producing of assets;
(2) The borrowing expense has already occurred;
(3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has
already started.
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2015 Interim Report of China Fangda Group Co., Ltd.
(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.
If the construction or production of 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.
(3) Calculation of the capitalization amount of borrowing expense
The interest expense incurred actually from special borrowing in the current period is capitalized after
deducting the interest income obtained from the borrowing that has not been used or investment gain
obtained from temporary investment; the capitalization amount of general borrow should be determined
according to the weighted average of the excessive part of the accumulative asset expense over the
special borrowing multiple the percentage of the special borrowing in general borrowing.The
capitalization ratio is calculated according to the weighted average interest rate of general borrowing.
During the capitalization period, the exchange difference of foreign currency special borrowing is fully
capitalized; the exchange difference of foreign currency general borrowing is included in the current
gain/loss.
18. Intangible assets
(1) ricing method, service life and impairment test
The Group’s intangible assets include land using rights, patent, industry property, special technologies,
and softwares.
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.
Intangible assets with limited useful life are amortized as followings:
Type Useful life Basis of amortization Notes
Land using right Beneficial age Average age
Trade marks and patents 10 Average age
Proprietary technology 10 Average age
Software 5, 10 years Average age
Other intangible assets 10 years or beneficial Average age
age
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2015 Interim Report of China Fangda Group Co., Ltd.
At the end of each year, the Group 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.
See Note V 19 for the provision method for intangible assets.
(2) Internal research development expense accounting policy
The Group 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.
19. Long-term assets impairment
The Group uses the cost mode to continue measuring the assets impairment to investment real
estatement, fixed assets construction in progress, intangible assets and goodwill (except for the
inventories, investment real estate measured by the fair value mode, deferred income tax assets and
financial assets). The method is determined as follows:
The Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Group estimates the recoverable amount and conducts the impairment test. Impairment test
is conducted annually for goodwill generated by mergers and intangible assets whose service life is
uncertain and that have not reached the useful condition no matter whether the impairment sign exists.
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. The Impairment test is conducted annually for
goodwill generated by mergers and intangible assets whose service life is uncertain and that have not
reached the useful condition no matter whether the impairment sign exists.estimates the recoverable
amount on the individual asset item basis; whether it is hard to estimate the recoverable amount on the
individual asset item basis, determine the recoverable amount based on the asset group that the assets
belong to. The assets group is determined by whether the main cash flow generated by the group is
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2015 Interim Report of China Fangda Group Co., Ltd.
independent from those generated by other assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Company
writes down the book value to the recoverable amount, the write-down amount is accounted into the
current income account and the assets impairment provision is made.
For goodwill impairment test, the book value of goodwill generated by mergers is amortized through
reasonable measures since the purchase day to related asset groups; those cannot be amortized to
related assets groups are amortized to related combination of asset groups. The related asset groups or
combination of asset groups refer to those that can benefit from the synergistic effect of mergers and
must not exceed to the reporting range determined by the Group.
When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset
groups without goodwill and calculate the recoverable amount and recognize the related impairment loss.
Then conduct impairment test on those with goodwill, compare the book value with recoverable amount.
If the recoverable amount is lower than the book value, recognize the impairment loss of the goodwill.
Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.
20. Long-term amortizable expenses
The Group’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.
21. Staff remuneration
(1) Accounting method of short-term remuneration
In the accounting period, the Group pays medical insurance, employment injury insurance and birth
insurance based on their salaries, bonus, and the required ratio. The insurance cost is recognized as
liability and included in the gain/loss or related asset cost of the current period.If the liability will not be
paid in 12 months after the report period ends and the financial impact is material, the liability is
measured at the discounted amount.
(2) Accounting method of post-employment benefit
The Group's post employment welfare scheme is the defined contribution plan. After making fixed
payment to an independent fund, the Company will not make further payment to the post-employment
welfare scheme, including basic retirement pension and unemployment insurance. In the fiscal period,
the payable to the defined contribution plan is recognized as liability and included in the gain/loss or
related asset cost of the current period.
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2015 Interim Report of China Fangda Group Co., Ltd.
22. 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 Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
The anticipated liabilities are measured at the best estimated expense necessary for fulfilling the
liabilities. The book value of expected liability is revised at balance sheet day, and adjustment will be
made to reflect current best estimation.
23. Revenue
(1) General principles
1. Sales of goods
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.
2. Providing of labor service
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
laber service cost as the current expense. If no compensation can be obtained for incurred labor service
cost, no revenue can be recognized.
3. 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.
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2015 Interim Report of China Fangda Group Co., Ltd.
4. Construction contracts
On the balance sheet day, the Group 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 Group 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.
(2) Specific revenue recognition method
Metro screen door projects of the Group and Shenzhen Fangda Automatic System, and curtain wall
project of Fangda Decoration are individual construction contracts. They are accounted by the following
means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon
completion.
Income and expenses of the construction contracts carried over-year are recognized on percentage
basis at balance sheet day when all of the following conditions are satisfied: contract income can be
reliably measured, relative financial benefit can inflow to the Company; progress of the project and costs
to complete the contract can be reliably recognized; cost occurred to complete the contract can be
clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till
the completion day. The competition percentage is determined by the share of the costs incurred in the
total cost.
Construction contracts completed in current term are recognized for income according to the actual total
income of the contract less income recognized in previous terms; meanwhile, the total costs of the
contract less costs recognized in previous terms are recognized as current contract costs. If the total
contract cost is predicted to be greater than the predicted total income, the predicted loss shall be
recognized as current cost instantly.
Parts of the curtain wall project under Fangda Jianke are outsourced, and administrative fees are
collected at the agreed rate. For these construction contracts, income will be recognized when ongoing
payment for the project is received and corresponding costs are transferred.
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2015 Interim Report of China Fangda Group Co., Ltd.
Revenue of products for domestic sales is recognized when the Group 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.
24. Government subsidy
(1) Judgment basis and accounting method of governmental subsidies related to assets
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 Group 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 them, 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.
(2) Judgment basis and accounting method of governmental subsidies related to profits
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 setoff, the exceeded part shall be recorded into current income account; if there
is no relative differed gain, record to current income account directly.
25. Differed income tax assets/differed income tax liabilities
Income tax includes current and deferred income taxExcept for the adjustment goodwill gernated by
mergers or deferred income tax related to transactions or events directly accounted into the owners’
equity, income tax is accounted as income tax expense into the current gain/loss account.
The Group uses the temporary difference between the book value of the assets and liabilities on the
balance sheet day and the tax base and the liabilities method to recognize the deferred income tax.
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2015 Interim Report of China Fangda Group Co., Ltd.
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 subsudiaries and affiliates, the reversal
timing for the temporary difference can be controlled and the difference is unlikely to be reversed in the
foreseeable future.
For deductable temporary difference, duductable loos and tax deduction that can be accounted in
subsequent years, the Group 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 subsudiaries and affiliates, 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.
On the balance sheet day, the Group measures the deferred income tax assets and liabilities with the tax
rate applicable during the predicted period during which the assets are recovered or the liabilities are
paid off and reflects the income tax influence of the assets recovery and liabilities repayment way on the
balance sheet day.
On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it
is unlikely to have adequate taxable proceeds to reduct the benefits of the deferred income tax assets,
less the deferred income tax assets’ book value. When there is adequarter taxable proceeds, the
lessened amount will be reversed.
26. Leasing
(1) Accounting method of operational leasing
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.
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.
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2015 Interim Report of China Fangda Group Co., Ltd.
(2) Accounting method of operational leasing
The Group as the leasor: 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 Group as the leasee: The Group 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 directo 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 Group adopts the depreciation policy same as the self-owned fixed assets to made
provision for depreciation of leased asssets.
27. Other significant accounting policies and assumptions
Significant acounting judgement and estimate
The Group continuously reviews significant accounting judgment and estimate adopted for the
reasonable forecast of future events based on its historical experience and other factors.
Significant accounting judgment and assumptions that may lead to major adjustment of the book value of
assets and liabilities in the next accounting year are listed as follows:
(1) Goodwill impairment
The Group judges whether there is impairment to goodwill at least annually. This required valuation of
the use value of the asset groups with goodwill. While estimating the use value, the Group needs to
estimate the cash flow from the asset group in the future and choose the proper discount rate to
calculate the present value of the future cash flow/
(2) Estimate of fair value
The Group uses fair value to measure investment real estate and needs to estimate the fair value of
investment real estate at least quarterly. This requires the management to reasonably estimate the fair
value of the investment real estate with the helf of valuation experts.
(3) Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be
recognized by all the unused tax loss. This requires the management to make a lot of judgment to
forecast the time and amount of future taxable profit and determine the amount of the deferred tax
assets based on the taxation strategy.
(4) Construction contracts
The Group recognizes gains of construction contracts according to the completion percentage of
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2015 Interim Report of China Fangda Group Co., Ltd.
separated contracts. The management estimates the completion percentage of construction projects
according to the actual cost in the total budget and estimates the contract gain. The activity date and
completion date are usually included in different accounting periods. The Group will review and revise
contract gain and cost estimates in the budget along the progress (if the actual contract gain is smaller
than the estimated or actual contract cost, contract estimate loss provision will be made).
28. Major changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable √ Inapplicable
(2) Changes in accounting estimates
□ Applicable √ Inapplicable
29. Others
Fair value method
Fair value is the price that the market participant needs to pay for acquiring an asset or transfer liability in
an orderly transaction on the measurement date.
For assets or liability of the Group measured at fair value, the orderly transaction in which assets are
sold or liability is transferred is conducted in the primary market of the related assets or liability; if there is
no such primary market, the Group assumes that the transaction is conducted in the most favorable
market for the related assets or liability. Primary market (or the most favorable market) is the transaction
market that the Group can enter on the measurement date. The Group uses the assumption under which
the market participant can maximize the economic benefit when the assets or liability is priced.
For financial assets or liability with an active market, the Group uses the price in the active market to
recognize the fair value. If there is no active market, the Group uses evaluation techniques to determine
the fair value.
Where non-financial assets are measured by fair value, the capability of the assets is the maximum
economic benefit of the assets can be realized in the best use of it or other market participant who can
make the best use of it.
The Group adopts appropriate and sufficient data and other information-supporting evaluation
techniques. Related observable inputs are used firstly. Non-observable inputs are only used when
observable inputs cannot be obtained or are infeasible.
The fair value level of assets and liability measured or disclosed at fair value in financial statement are
determined according to the lowest input significant for the fair value as a howl: first-level input is the
non-adjusted price of the same assets or liability that can be obtained in an active market; second-level
input is observable inputs with direct or indirect impact on related assets or liability other than the
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2015 Interim Report of China Fangda Group Co., Ltd.
first-level inputs; third-level inputs are non-observable inputs of related assets and liability.
On each balance sheet day, the Group re-evaluates the assets and liability measured at the fair value
and recognized in the financial statements to confirm if any change happens to the fair value
measurement level.
VI. 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 See the following table
Education surtax Taxable turnover 3
Tax payers vary in the corporate income tax rate are listed as follows
Tax payer Income tax rate
The Company 25%
Shenzhen Fangda Jianke Group Co., Ltd. 15%
Shenzhen Fangda Automation System Co., Ltd. 15%
Shenzhen Woke Semi-conductor Lighting Co., Ltd. 25%
Fangda New Materials (Jiangxi) Co., Ltd. 15%
Jiangxi Fangda New Type Aluminum Co., Ltd. 25%
Shenyang Fangda Semi-conductor Lighting Co., Ltd. 25%
Dongguan Fangda New Material Co., Ltd. 25%
Shenzhen Kexunda Software Co., Ltd. 12.5%
Chengdu Fangda Construction Technology Co.,
15%
Ltd.
Fangda Decoration Engineering (Shenyang) Co., Ltd. 25%
Shenzhen Fangda Property Development Co., Ltd. 25%
Shenzhen Fangda New Energy Co., Ltd. 25%
Guangdong Fangda SOZN Lighting Co., Ltd. 25%
2. Tax preference
(1) Fangda Jianke’s hi-tech entrperise certificate expired in 2014 and needs to be re-applied for in 2015.
By the release date of the report, the application has been approved and released by the Shenzhen
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2015 Interim Report of China Fangda Group Co., Ltd.
Commission of Technological Innovation and recovers the hi-tech enterprise certificate. The tax rate of
income tax in the period is 15%.
(2) Fangda Automation’s hi-tech entrperise certificate expired in 2014 and needs to be re-applied for in
2015. By the release date of the report, the application has been approved and released by the
Shenzhen Commission of Technological Innovation and recovers the hi-tech enterprise certificate. The
tax rate of income tax in the period is 15%.
(3) Fangda New Material’s hi-tech entrperise certificate expired in 2014 and needs to be re-applied for in
2015. By the release date of the report, the application has been approved and released by the
Shenzhen Commission of Technological Innovation and recovers the hi-tech enterprise certificate. The
tax rate of income tax in the period is 15%.
(4) On December 25, 2013, Kexunda was certified by Shenzhen Nanshan National Tax Bureau as a
software and integrated circult designer according to the Shenzhen National Tax Reduction Registrion
[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. In
2015, Kexunda enters the relief period.
(5) On November 7, 2014, Chengdu Fangda was certified by the Sichuan Xinjin National Tax Bureau as
an encouraged business in the west according to the Xinjin National Tax Doc. [zzy024] and will enjoy a
preferential corporate income tax rate of 15% from January 1, 2014
VII Notes to the consolidated financial statements
1. Monetary capital
In RMB
Items Closing balance Opening balance
Cash in stock 21,869.76 40,733.33
Bank deposits 222,261,075.52 114,515,874.25
Other monetary capital 150,722,416.46 97,874,191.29
Total 373,005,361.74 212,430,798.87
Including: amount deposited
2,369,835.75 2,370,695.75
overseas
Note
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 47.
2. The book balance of other monetary capital at the end of the period RMB150,722,416.46 is mainly
the bank acceptance and letter of guarantee, which are not regarded as cash equivalent at preparing
of cash flow statement.
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2015 Interim Report of China Fangda Group Co., Ltd.
2. Financial assets measured at fair value with variations accounted into current income account
In RMB
Items Closing balance Opening balance
Transactional financial assets 16,087,644.00 13,410,790.00
Equity instrument investment 16,087,644.00 13,410,790.00
Total 16,087,644.00 13,410,790.00
3. Derivative financial assets
□ Applicable √ Inapplicable
4. Notes receivable
(1) Classification of notes receivable
In RMB
Items Closing balance Opening balance
Bank acceptance 8,538,598.56 2,697,145.86
Commercial acceptance 13,969,978.00 80,628,579.84
Total 22,508,576.56 83,325,725.70
(2) Recevable notes endorsed or discounted and not mature on the balance sheet date
In RMB
Items De-recognized amount Recognized amount
Bank acceptance 107,626,581.81 5,850,000.00
Commercial acceptance 6,095,000.00
Total 113,721,581.81 5,850,000.00
(3) Notes of which the issuer is unable to perform and transferred into account receivable
In RMB
Amount transferred into account receivable at the end of
Items
the period
Commercial acceptance 38,846,579.84
Total 38,846,579.84
Note
The notes receivable reduced 73.59% from the beginning of the period mainly due to maturity of notes
and transfer into account receivable.
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2015 Interim Report of China Fangda Group Co., Ltd.
5. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book
Bad debt provision
Type value provision Book value Book
Proporti Provisio value Amoun Proporti Provision value
Amount Amount Amount
on n rate t on rate
Account receivable
1,280,
for which bad debt 1,543,43 185,872, 1,357,55 175,879, 1,104,625,
98.91% 12.04% 504,98 98.68% 13.74%
provision is made 1,394.79 658.38 8,736.41 731.45 251.46
2.91
by credit risk group
Account receivable
with minor
17,154
individual amount 17,054,2 16,487,2 567,000. 16,537,2 617,000.0
1.09% 96.68% ,285.4 1.32% 96.40%
and bad debt 85.41 85.41 00 85.41 0
1
provision provided
individually
1,297,
1,560,48 100.00 202,359, 1,358,12 100.00 192,417, 1,105,242,
Total 12.97% 659,26 14.83%
5,680.20 % 943.79 5,736.41 % 016.86 251.46
8.32
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 balance
Age
Account receivable Bad debt provision Provision rate
Items within one year
Subtotal for less than 1 year 954,767,651.31 28,946,385.69 3.00%
1-2 years 280,678,989.43 28,076,859.38 10.00%
2-3 years 125,714,818.68 37,714,445.61 30.00%
Over 3 years 182,269,935.37 91,134,967.70 50.00%
Total 1,543,431,394.79 185,872,658.38 12.04%
Grouping basis:
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2015 Interim Report of China Fangda Group Co., Ltd.
1. An amount of over RMB8 million receivable from an engineering enterprise is a major individual
amount. An amount of over RMB2 million receivable from a product producer is a major individual
amount.
2. The company considers receivable accounts with an actual age of over 5 years as risky.
Account receivable adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
Account receivable adopting other methods in the group:
None
(2) Bad debt provision made, recovered or written back this period
A provision of RMB9,942,926.93 was made with RMB0 recovered or written back this period.
The provision recovered or written back this period mainly includes:
In RMB
Entity Written-back or recovered amount Method
(3) Top 5 customers in terms of the receivable account balance at the end of the period
The receivable account balance of top 5 customers totals RMB174,273,492.23 at the end of the period,
accounting for 11.17% of the aggregate. The balance of the provision is RMB7,609,160.09.
6. Prepayment
(1) Account age of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 112,658,986.78 92.68% 24,526,989.72 83.90%
1-2 years 7,578,232.74 6.23% 2,991,743.88 10.23%
2-3 years 100,364.94 0.08% 163,672.10 0.56%
Over 3 years 1,216,611.45 1.00% 1,551,825.79 5.31%
Total 121,554,195.91 -- 29,234,231.49 --
Prepayments with an age of over 1 year with a major amount:
The prepayment increased 315.79% from the beginning of the period mainily due to that Fangda
Property made construction prepayment for the Fangda Square project.
(2) Top 5 prepayment in terms of the amount at the end of the period
The top 5 prepayment totals RMB83,386,433.79, accounting for 69.61% of the aggregate balance.
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2015 Interim Report of China Fangda Group Co., Ltd.
7. Other receivables
(1) Other receivables are disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book
Bad debt provision
Type value provision Book value Book
Proporti Provisio value Amoun Proporti Provision value
Amount Amount Amount
on n rate t on rate
Other receivables
62,085
for which bad debt 134,284, 17,172,8 117,112, 13,134,5 48,950,64
99.83% 12.79% ,155.6 99.64% 21.16%
provision is made 992.64 90.21 102.43 07.99 7.67
6
by credit risk group
Other receivables
with minor
individual amount 223,146. 223,146. 100.00 223,14 223,146.
0.17% 0.00 0.36% 100.00%
and bad debt 95 95 % 6.95 95
provision provided
individually
62,308
134,508, 100.00 17,396,0 117,112, 100.00 13,357,6 48,950,64
Total 12.93% ,302.6 21.44%
139.59 % 37.16 102.43 % 54.94 7.67
1
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
Closing balance
Age
Other receivables Bad debt provision Provision rate
Items within one year
Subtotal for less than 1 year 92,223,265.06 2,928,214.85 3.00%
1-2 years 11,617,851.47 648,113.94 10.00%
2-3 years 7,751,023.81 2,251,385.35 30.00%
Over 3 years 22,692,852.30 11,345,176.07 50.00%
合计 134,284,992.64 17,172,890.21 12.79%
Grouping basis:
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2015 Interim Report of China Fangda Group Co., Ltd.
1. Other receivables of over RMB1 million are treated as receivables with a major amount.
2. The company considers other receivables with an actual age of over 5 years as risky.
Other receivables adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group:
□ Applicable √ Inapplicable
(2) Bad debt provision made, recovered or written back this period
A provision of RMB4,038,382.22 was made with RMB0 recovered or written back this period.
The provision recovered or written back this period mainly includes:
In RMB
Entity Written-back or recovered amount Method
(3) Composition of other receivables
In RMB
By account Closing balance of book value Opening balance of book value
Deposit 102,994,771.41 37,088,745.12
Construction borrowing and
16,681,771.95 14,869,519.46
advancement
Recoverable house disposal amount 166,200.00 2,136,200.00
Employee borrowing and deposit 4,281,903.54 1,410,387.87
Receivable VAT rebate 483,897.41 576,297.37
Others 9,899,595.28 6,227,152.79
Total 134,508,139.59 62,308,302.61
(4) Top 5 other receivables in terms of the balance at the end of the period
In RMB
Percentage in the Balance of the bad
balance of other debt provision at
Entity By account Closing balance Age
receivables at the the end of the
end of the period period
Nanchang Finance
Deposit 40,000,000.00 Less than 1 year 29.74% 1,200,000.00
Bureal
China Merchants
Deposit 5,824,687.50 Less than 1 year 4.33% 174,740.63
Futures
Wang Weihong Construction 4,944,388.15 2-5 years 3.68% 2,310,044.32
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2015 Interim Report of China Fangda Group Co., Ltd.
advancement
Zhejiang Jiayue
Deposit 3,699,100.00 Less than 4 year 2.75% 1,649,550.00
Industrial Co., Ltd.
Construction
Xin Song 2,635,327.61 4-5 years 1.96% 1,317,663.81
advancement
Total -- 57,103,503.26 -- 42.45% 6,651,998.76
8. Inventories
(1) Classification of inventories
In RMB
Closing balance Opening balance
Items Remaining book Depreciation Remaining book Depreciation
Book value Book value
value provision value provision
Raw materials 110,905,254.21 2,509,858.92 108,395,395.29 101,814,705.80 2,551,138.82 99,263,566.98
Product in
22,310,152.00 22,310,152.00 6,682,625.91 2,277.73 6,680,348.18
process
Finished goods
33,933,353.15 2,469,445.07 31,463,908.08 22,999,746.67 2,470,651.68 20,529,094.99
in stock
Unsettled
payment of
completed 245,078,069.59 1,830,742.67 243,247,326.92 251,262,257.58 1,830,742.67 249,431,514.91
projects with
contracts
Low price
62,279.45 62,279.45 59,672.66 59,672.66
consumable
OEM materials 472,068.07 472,068.07 3,358,174.63 3,358,174.63
Development
637,915,394.57 637,915,394.57 603,118,814.70 603,118,814.70
cost
1,050,676,571.0 1,043,866,524.3
Total 6,810,046.66 989,295,997.95 6,854,810.90 982,441,187.05
4 8
(2) Inventory depreciation provision
In RMB
Increase in this period Decrease in this period
Opening
Items Written-back or Closing balance
balance Provision Others Others
written-off
88
2015 Interim Report of China Fangda Group Co., Ltd.
Raw materials 2,551,138.82 41,279.90 2,509,858.92
Product in
2,277.73 2,277.73
process
Finished goods
2,470,651.68 1,206.61 2,469,445.07
in stock
Unsettled
payment of
completed 1,830,742.67 1,830,742.67
projects with
contracts
Total 6,854,810.90 44,764.24 6,810,046.66
Reason for writing-back or
Basis of recognized
writing-off depreciation
Item realizable net value
provision
Raw materials Realizable net value is lower Sales of inventory in this period
the cost
Product in process Realizable net value is lower
the cost
Finished goods in stock Realizable net value is lower
the cost
Asset formed by construction Predicted construction contract
contract loss
Total --
(3) Note capitalization of borrowing cost in the inventory balance at the end of this period
The capitalization of borrowing cost in the inventory balance at the end of this period is
RMB27,488,060.28.
(4) Unsettled payment of completed projects with contracts
In RMB
Items Amount
Accumulative occurred costs 5,506,292,941.98
Accumulative recognized gross margin 1,135,984,062.49
Less: estimated losses 1,830,742.67
Settled amount 6,397,198,934.88
Unsettled payment of completed projects with contracts 243,247,326.92
89
2015 Interim Report of China Fangda Group Co., Ltd.
9. Other current assets
In RMB
Items Closing balance Opening balance
Pending deduct tax 4,319,768.27 6,986,107.72
Financial products 228,000,000.00
Tooling cost 1,578,930.40
Total 5,898,698.67 234,986,107.72
Note
Other current assets decreased 97.49% from the beginning of the period mainly due to maturity of
financial products.
10. Long-term share equity investment
In RMB
Change Balance
Investme of the
Other
nt gain Cash bad debt
Increase Decreas miscella Provision
Invested Opening recogniz Other dividend Closing provision
d ed neous impairme
entity balance ed with equity or profit Others balance at the
investme investme income nt
the change announc end of
nt nt adjustme provision
equity ed the
nt
method period
1. Joint venture
2. Associate
Shenzhe
n
Ganshan
11,048,6 1,256,99 2,200,00 10,105,6
g Joint 0.00
60.43 4.94 0.00 55.37
Investme
nt Co.,
Ltd.
11,048,6 1,256,99 2,200,00 10,105,6
Subtotal 0.00
60.43 4.94 0.00 55.37
11,048,6 1,256,99 2,200,00 10,105,6
Total 0.00
60.43 4.94 0.00 55.37
90
2015 Interim Report of China Fangda Group Co., Ltd.
11. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
Items Houses & Land using right Construction in Total
buildings process
I. Original book value 32,081,268.14 32,081,268.14
1. Opening balance 32,081,268.14 32,081,268.14
2. Increase in this
period
(1) Purchased
(2) Transferred
from inventory/fixed
assets/construction in
progress
(3) Increase from
enterprise merger
3. Decrease in this
period
(1) Disposal
(2) Other
transfer-out
4. Closing balance 32,081,268.14 32,081,268.14
II. Accumulative
depreciation and
amortization
1. Opening balance 4,315,330.90 4,315,330.90
2. Increase in this
period 413,183.58 413,183.58
(1) Provision or
amortization 413,183.58 413,183.58
3. Decrease in this
period
(1) Disposal
(2) Other
transfer-out
4. Closing balance 4,728,514.48 4,728,514.48
91
2015 Interim Report of China Fangda Group Co., Ltd.
IV. Book value
1. Closing book
value 27,352,753.66 27,352,753.66
2. Opening book
value 27,765,937.24 27,765,937.24
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Construction in
Items Houses & buildings Land using right Total
process
I. Opening balance 198,513,586.15
198,513,586.15
II. Change in this 32,768,907.31
period 32,768,907.31
Add: purchase
Transferred
from inventory/fixed
assets/construction
in progress
Increase from
enterprise merger
Less: disposal
Other
transfer-out
Change in fair 32,768,907.31
value 32,768,907.31
III. Closing balance 231,282,493.46 231,282,493.46
12. Fixed assets
(1) Fixed assets
In RMB
Mechanical Transport Electronics and
Items Houses & buildings Total
equipment equipment other devices
92
2015 Interim Report of China Fangda Group Co., Ltd.
I. Original book
value:
1. Opening
414,676,207.19 244,520,117.16 23,352,273.72 55,787,441.33 738,336,039.40
balance
2. Increase in
14,302.29 6,155,555.45 558,483.39 4,690,239.51 11,418,580.64
this period
(1) Purchase 6,155,555.45 558,483.39 4,690,239.51 11,404,278.35
(2) Transfering
from construction 14,302.29 14,302.29
in progress
(3) Increase
from enterprise
merger
3. Decrease in
4,022,313.53 1,282.05 2,832,413.40 6,856,008.98
this period
(1) Disposal or
4,022,313.53 1,282.05 116,530.90 4,140,126.48
retirement
(2) Others 2,715,882.50 2,715,882.50
4. Closing
414,690,509.48 246,653,359.08 23,909,475.06 57,645,267.44 742,898,611.06
balance
II. Accumulative
depreciation
1. Opening
38,473,077.25 159,921,185.98 10,047,751.18 23,247,074.02 231,689,088.43
balance
2. Increase in
5,444,687.40 4,798,396.63 1,392,769.14 2,981,637.71 14,617,490.88
this period
(1) Provision 5,444,687.40 4,798,396.63 1,392,769.14 2,981,637.71 14,617,490.88
3. Decrease in
3,146,619.53 1,153.84 401,365.50 3,549,138.87
this period
(1) Disposal or
3,146,619.53 1,153.84 97,481.55 3,245,254.92
retirement
(2) Others 303,883.95 303,883.95
4. Closing
43,917,764.65 161,572,963.08 11,439,366.48 25,827,346.23 242,757,440.44
balance
III. Impairment
provision
93
2015 Interim Report of China Fangda Group Co., Ltd.
1. Opening
277,744.50 16,654,521.84 16,932,266.34
balance
2. Increase in
this period
(1) Provision
3. Decrease in
this period
(1) Disposal or
retirement
4. Closing
277,744.50 16,654,521.84 16,932,266.34
balance
IV. Book value
1. Closing book
370,495,000.33 68,425,874.16 12,470,108.58 31,817,921.21 483,208,904.28
value
2. Opening book
375,925,385.44 67,944,409.34 13,304,522.54 32,540,367.31 489,714,684.63
value
(2) Temporary idle fixed assets
In RMB
Accumulative Impairment
Items Book value Book value Notes
depreciation provision
Houses & buildings 46,833,628.81 5,757,612.48 277,744.50 40,798,271.83
Mechanical
105,591,939.34 69,016,187.86 15,300,132.34 21,335,175.70
equipment
Transportation
358,087.84 336,030.00 22,057.84
facilities
Electronics and
7,822,284.94 7,362,332.45 400,395.93
other devices
Total 160,605,940.93 82,472,162.79 15,577,876.84 62,555,901.30
(3) Fixed assets without ownership certificate
In RMB
Items Book value Reason
Houses in Urumuqi for offsetting debt 573,316.49 Applying for
94
2015 Interim Report of China Fangda Group Co., Ltd.
Yuehai Office Building C 502 157,988.40 Historical reasons
Houses in Dalian of Fangda Jianke for
19,947,968.30 Applying for
offsetting debt
Shenyang Fangda extension workshop 17,328,457.14 Entering into liquidation
Shenyang Fangda dorm and workshop
8,028,534.32 Entering into liquidation
2#
Dinning hall and power station of
3,857,269.24 Entering into liquidation
Shenyang Fangda
13.Construction in process
(1) Construction in progress
In RMB
Closing balance Opening balance
Items Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Tianjin
energy-saving
779,356.71 0.00 779,356.71 341,749.17 341,749.17
curtain wall
project
Yifeng PV
power plant 434,770.94 0.00 434,770.94
project
Others 31,067.96 31,067.96
Total 1,245,195.61 1,245,195.61 341,749.17 341,749.17
(2) Changes in major construction in process
In RMB
Proporti Includin
Transfer on of g:
Accumu
into Other enginee capitaliz Interest
Openin Increas Project lative
fixed decreas Closing ring ed capitaliz Capital
Project Budget g e in this progres capitaliz
assets e in this balance investm interest ation source
balance period s ed
in this period ent in for the rate
interest
period the current
budget period
Yifeng 167,660 434,770 434,770
0.00 0.30% 0.30% Others
PV ,000.00 .94 .94
95
2015 Interim Report of China Fangda Group Co., Ltd.
power
plant
project
167,660 434,770 434,770
Total -- -- --
,000.00 .94 .94
14. Disposal of fixed assets
In RMB
Items Closing balance Opening balance
Mechanical equipment 1,984.71 26,918.21
Total 1,984.71 26,918.21
15. Intangible assets
(1) Intangible assets
In RMB
Non-patent
Items Land using right Patent Others Total
technology
1. Original book
value
1. Opening
98,015,399.41 5,565,804.46 24,330,413.42 11,028,384.99 138,940,002.28
balance
2. Increase in
11,267.81 490,714.53 501,982.34
this period
(1)
11,267.81 490,714.53 501,982.34
Purchase
(2) Internal
R&D
(3) Increase
from enterprise
merger
3. Decrease in
this period
(1) Disposal
4. Closing 98,015,399.41 5,577,072.27 24,330,413.42 11,519,099.52 139,441,984.62
96
2015 Interim Report of China Fangda Group Co., Ltd.
balance
II. Accumulative
amortization
1. Opening
11,365,168.18 1,300,494.65 16,035,333.37 5,765,811.22 34,466,807.42
balance
2. Increase in
985,850.04 264,429.13 446,168.80 420,636.80 2,117,084.77
this period
(1)
985,850.04 264,429.13 446,168.80 420,636.80 2,117,084.77
Provision
3. Decrease in
this period
(1) Disposal
4. Closing
12,351,018.22 1,564,923.78 16,481,502.17 6,186,448.02 36,583,892.19
balance
III. Impairment
provision
1. Opening
5,525,863.77 5,525,863.77
balance
2. Increase in
this period
(1)
Provision
3. Decrease in
this period
(1) Disposal
4. Closing
5,525,863.77 5,525,863.77
balance
IV. Book value
1. Closing
85,664,381.19 4,012,148.49 2,323,047.48 5,332,651.50 97,332,228.66
book value
2. Opening
86,650,231.23 4,265,309.81 2,769,216.28 5,262,573.77 98,947,331.09
book value
The intangible asset formed by internal R&D of the period accounted for 2.39% in the closing total book
value of intangible assets.
97
2015 Interim Report of China Fangda Group Co., Ltd.
(2) Failure to obtain the land using right
In RMB
Items Book value Reason
Shenyang Fangda land use right 4,807,024.68 Applying for
16. Goodwill
(1) Original book value of goodwill
In RMB
Invested entity
Opening
or item of Increase Decrease Closing balance
balance
goodwill
Shenzhen
8,197,817.29 8,197,817.29
Woke
Fangda SOZN 26,279,395.89 26,279,395.89
Total 34,477,213.18 34,477,213.18
(2) Goodwill impairment provision
In RMB
Invested entity
Opening
or item of Increase Decrease Closing balance
balance
goodwill
Shenzhen
8,197,817.29 8,197,817.29
Woke
Total 8,197,817.29 8,197,817.29
Goodwill impairement test process, parameters and recognition method of goodwill impairment losses:
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.
17. Long-term amortizable expenses
In RMB
Increase in this Amortized this
Items Opening balance Other decrease Closing balance
period period
98
2015 Interim Report of China Fangda Group Co., Ltd.
Plant and
1,039,476.73 0.00 221,623.32 0.00 817,853.41
dormitory deco
Renovation leased
2,588,029.24 0.00 446,475.21 0.00 2,141,554.03
plants
Partition
311,269.21 0.00 38,908.68 0.00 272,360.53
engineering
Association
0.00 300,000.00 0.00 0.00 300,000.00
membership fee
Land lease fee 0.00 1,340,062.50 8,933.76 0.00 1,331,128.74
Others 180,587.45 0.00 49,474.38 0.00 131,113.07
Total 4,119,362.63 1,640,062.50 765,415.35 4,994,009.78
18. Differed income tax assets/differed income tax liabilities
(1) Deferred income tax assets not offset
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
229,905,889.66 36,126,743.33 215,379,455.02 33,823,708.10
provision
Unrealized profit from
14,035,518.61 2,967,277.56 11,839,968.61 2,579,827.55
internal transactions
Deductible loss 67,587,420.15 16,383,898.11 56,605,182.29 13,897,641.41
Reserved expense 2,773,848.33 416,077.25 3,055,220.98 458,283.15
Reserved wage 1,850,715.62 277,607.34 3,087,427.61 463,114.14
Deferred earning 2,114,090.87 505,208.89 2,161,818.23 515,225.13
Anticipated liabilities 481,740.34 72,261.05 5,859,045.98 878,856.90
Arbitrage tools 1,445,950.00 216,892.50
Total 320,195,173.58 56,965,966.03 297,988,118.72 52,616,656.38
(2) Offset deferred income tax assets
In RMB
Closing balance Opening balance
Items Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
99
2015 Interim Report of China Fangda Group Co., Ltd.
Gain/loss caused by
232,339,845.08 58,084,961.27 198,937,747.60 49,734,436.90
changes in fair value
Total 232,339,845.08 58,084,961.27 198,937,747.60 49,734,436.90
(3) Details of unrecognized deferred income tax assets
In RMB
Items Closing balance Opening balance
Deductible temporary difference 39,956,939.80 40,015,820.28
Deductible loss 74,151,593.08 70,274,405.85
Total 114,108,532.88 110,290,226.13
(4) Deductible losses of the un-recognized deferred income tax asset will expire in the following
years
In RMB
Year Closing amount Opening amount Notes
2015 7,240,577.12 7,240,577.12
2016 19,999,060.04 19,999,060.04
2017 20,241,373.78 20,241,373.78
2018 11,130,985.83 11,130,985.83
2019 11,662,409.08 11,662,409.08
2020 3,877,187.23
Total 74,151,593.08 70,274,405.85 --
19. Other non-current assets
In RMB
Items Closing balance Opening balance
Prepaid house and equipment amount 45,687,110.88 41,684,590.97
Input tax to be deducted 2,143,855.60 1,639,287.66
Total 47,830,966.48 43,323,878.63
20. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
100
2015 Interim Report of China Fangda Group Co., Ltd.
Items Closing balance Opening balance
Loan by pledge 200,000,000.00 200,000,000.00
Guarantee loan 1,109,000,000.00 900,000,000.00
Bill discount 5,850,000.00
Total 1,314,850,000.00 1,100,000,000.00
21. Derivative financial liabilities
√ Applicable □ Inapplicable
In RMB
Items Closing balance Opening balance
Arbitrage tools 1,445,950.00
Total 1,445,950.00
Note
Derivative financial liabilities is the deficit of arbitrage tools used by Fangda Jiangxi New Material Co.,
Ltd. and Fangda Jianke, subsidiaries of the Company.
22. Notes payable
In RMB
Type Closing balance Opening balance
Commercial acceptance 42,131,850.10 12,106,210.45
Bank acceptance 202,624,469.66 215,160,275.12
Total 244,756,319.76 227,266,485.57
Notes payable mature but not settled at the end of this period is RMB0.00.
23. Account payable
(1) Account payable
In RMB
Items Closing balance Opening balance
Account repayable and engineering
496,084,658.49 558,886,064.80
repayables
Construction payable 7,141,543.95 21,675,087.66
Payable installation and
165,996,873.59 102,780,295.76
implementation fees
Others 9,184,865.12 1,766,898.51
101
2015 Interim Report of China Fangda Group Co., Ltd.
Total 678,407,941.15 685,108,346.73
24. Prepayment received
(1) Prepayment received
In RMB
Items Closing balance Opening balance
Cutain wall and screen door
100,280,521.67 115,346,105.96
engineering payments
Material loan 7,279,479.66 6,106,352.73
Others 693,045.60 832,772.45
Total 108,253,046.93 122,285,231.14
25. Employees wage payable
(1) Employees wage payable
In RMB
Items Opening balance Increase Decrease Closing balance
1. Short-term
41,651,071.51 118,324,113.42 133,059,533.33 26,915,651.60
remuneration
2. Retirement pension
program-defined 52,242.75 8,130,051.20 8,182,293.95 0.00
contribution plans
3. Dismiss
186,956.75 186,956.75 0.00
compensation
Total 41,703,314.26 126,641,121.37 141,428,784.03 26,915,651.60
(2) Short-term remuneration
In RMB
Items Opening balance Increase Decrease Closing balance
1. Wage, bonus,
allowance and 39,519,553.05 108,672,242.54 123,468,719.48 24,723,076.11
subsidies
2. Employee welfare 4,142,873.54 4,142,873.54
3. Social insurance 39,612.75 2,612,948.55 2,594,133.70 58,427.60
Including: 33,570.00 2,137,218.90 2,112,361.30 58,427.60
102
2015 Interim Report of China Fangda Group Co., Ltd.
medical insurance
Labor injury
3,357.00 252,901.57 256,258.57
insurance
Breeding
2,685.75 222,828.08 225,513.83
insurance
4. Housing fund 42,585.20 2,606,068.63 2,540,879.83 107,774.00
5. Labor union budget
and staff education 2,049,320.51 289,980.16 312,926.78 2,026,373.89
fund
Total 41,651,071.51 118,324,113.42 133,059,533.33 26,915,651.60
(3) Defined contribution plans
In RMB
Items Opening balance Increase Decrease Closing balance
1. Basic pension 49,755.00 7,564,225.76 7,613,980.76
2. Unemployment
2,487.75 565,825.44 568,313.19
insurance
Total 52,242.75 8,130,051.20 8,182,293.95 0.00
26. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 6,125,638.16 6,739,115.69
Business tax 31,642,710.84 25,489,264.49
Enterprise income tax 10,531,132.33 16,071,901.30
Personal income tax 2,176,803.64 1,228,564.47
City maintenance and construction tax 2,596,122.20 2,329,212.21
Land using tax 2,876,543.56 2,534,674.36
Property tax 2,027,773.82 2,287,765.04
Education surtax 1,270,650.33 1,123,167.45
Local education surtax 346,522.21 298,064.57
Others 219,288.72 595,196.67
Total 59,813,185.81 58,696,926.25
103
2015 Interim Report of China Fangda Group Co., Ltd.
27. Interest payable
In RMB
Items Closing balance Opening balance
Short-term borrowing interests payable 1,775,665.69 2,055,911.11
Total 1,775,665.69 2,055,911.11
Significant overdue unpaid interest:
In RMB
Borrower Overdue amount Reason
Note
28. Other payables
(1) Other payables presented in term of nature
In RMB
Items Closing balance Opening balance
Performance and quality deposit 31,414,231.64 22,806,218.88
Deposit 7,416,343.04 6,264,664.14
Reserved expense 7,661,482.08 9,369,196.08
Engineering payment 22,305,782.87
Others 3,420,792.67 8,985,603.34
Total 72,218,632.30 47,425,682.44
29. Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term payables due within 1 year 6,000,000.00 6,000,000.00
Total 6,000,000.00 6,000,000.00
Note
The long-term payables due within 1 year is the share transfer payment that Fangda New Energy shall
pay to acquire 60% of the shares of Fangda SOZN according to the investment agreement and share
transfer agreement.
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2015 Interim Report of China Fangda Group Co., Ltd.
30. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
Items Closing balance Opening balance
Loan by pledge 141,053,670.40
Total 141,053,670.40
31. Anticipated liabilities
In RMB
Items Closing balance Opening balance Reason
Pending lawsuit 5,039,045.98
Others 481,740.34 820,000.00
Total 481,740.34 5,859,045.98 --
32. Deferred earning
In RMB
Items Opening balance Increase Decrease Closing balance Reason
Governmental
Government
10,049,892.04 107,651.51 9,942,240.53 subsidy related to
subsidy
assets
Total 10,049,892.04 107,651.51 9,942,240.53 --
Itemss involving government subsidies:
In RMB
Amount
Opening Amount of new included in Related to
Liabilities Other change Closing balance
balance subsidy non-operating assets/earning
revenue
Major
investment
project prize
from Industry
and Trade 1,909,523.90 19,155.96 233,138.37
Development
Division of
Dongguan
Finance Bureau
105
2015 Interim Report of China Fangda Group Co., Ltd.
Massive
production
project of
air-breathing
7,888,073.81 28,571.40 1,880,952.50
double-layer
hollow glass
energy-saving
curtain call
Railway
transport screen
door controlling
system and 252,294.33 59,924.15 7,828,149.66
information
transmission
technology
Total 10,049,892.04 107,651.51 9,942,240.53 --
33. Capital share
In RMB
Change (+,-)
Opening Closing
Issued new Transferred
balance Bonus shares Others Subtotal balance
shares from reserves
Total of 756,909,905. 756,909,905.
capital shares 00 00
34. Capital reserve
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium
(share capital 38,238,222.48 38,238,222.48
premium)
Other capital reserves 40,860,997.90 40,860,997.90
Total 79,099,220.38 79,099,220.38
35. Other miscellaneous income
In RMB
Opening Amount occurred in the current period Closing
Items
balance Income tax Less: Amount Less: Attributabl Attributabl balance
106
2015 Interim Report of China Fangda Group Co., Ltd.
incurred in written into Income tax e to the e to
this period other gains expenses parent minority
and company sharehold
transferred after tax ers after
into gain/loss tax
in previous
terms
I. Other misc. incomes that cannot 91,831.6
91,831.63
be re-classified into gain and loss 3
Investment real estate measured 91,831.6
91,831.63
at fair value 3
II. Other misc. incomes that will be -1,445,950 -216,892.5 -1,229,057 -1,229,0
re-classified into gain and loss .00 0 .50 57.50
Effective part in the gain -1,445,950 -216,892.5 -1,229,057 -1,229,0
and loss of arbitrage of cash flow .00 0 .50 57.50
-1,445,950 -216,892.5 -1,229,057 -1,137,2
Other miscellaneous income 91,831.63
.00 0 .50 25.87
36. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
48,842,080.76 48,842,080.76
reserves
Total 48,842,080.76 48,842,080.76
37. Retained profit
In RMB
Items Current period Last period
Adjustment on retained profit of previous
349,987,825.69 278,149,631.63
period
Retained profit adjusted at beginning of year 349,987,825.69 278,149,631.63
Plus: Net profit attributable to owners of the
51,317,648.87 96,998,429.76
parent
Less: Statutory surplus reserves 2,452,938.55
Common share dividend payable 22,707,297.15 22,707,297.15
Closing retained profit 378,598,177.41 349,987,825.69
Details of retained profit adjusted at beginning of the period:
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2015 Interim Report of China Fangda Group Co., Ltd.
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.
38. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Items
Income Cost Income Cost
Main business 1,125,911,242.60 929,839,206.78 805,064,175.79 663,032,612.82
Other business 24,204,280.93 10,648,051.57 17,728,563.23 5,414,831.49
Total 1,150,115,523.53 940,487,258.35 822,792,739.02 668,447,444.31
39. Business tax and surcharge
In RMB
Items Amount occurred in the current period Occurred in previous period
Business tax 12,833,597.88 7,943,113.33
City maintenance and construction tax 2,258,805.32 1,607,076.28
Education surtax 1,270,438.38 773,681.80
Property tax 526,006.30 539,320.21
Land using tax 57,620.36 50,304.06
Others 590,771.98 444,964.03
Total 17,537,240.22 11,358,459.71
40. Sales expense
In RMB
Items Amount occurred in the current period Occurred in previous period
Labor cost (including wages and social
13,506,452.55 10,990,132.53
insurance)
Freight and miscellaneous charges 2,740,685.79 2,390,569.27
Travel expense 2,407,002.17 2,108,543.24
Entertainment expense 848,973.36 795,733.71
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Material consumption 58,970.65 38,742.59
Office costs 429,287.85 304,476.16
Rental 1,069,448.20 579,779.25
Consultant costs 69,126.22
Advertisement and exhibition costs 15,659,054.69
Others 4,220,135.98 1,037,144.11
Total 41,009,137.46 18,245,120.86
Note
The sales costs increased RMB124.77% year on year, mainly due to the increase in the advertisement
and exhibition costs.
41. Management expenses
In RMB
Items Amount occurred in the current period Occurred in previous period
Labor cost (including wages and social
40,048,984.25 33,875,067.26
insurance)
Depreciation and amortization 9,985,147.56 8,996,264.62
Agencies 1,446,724.23 1,569,858.99
Tax 3,281,464.87 2,785,530.76
Maintenance costs 1,109,752.09 1,598,482.33
Water and electricity 608,038.39 990,722.31
Office expense 1,714,026.25 1,019,710.61
Travel expense 1,265,907.29 1,291,812.58
Entertainment expense 1,518,671.02 699,909.83
Rental 1,615,148.33 1,399,130.22
Lawsuit 59,731.66 130,337.00
Material consumption 413,971.75 1,223,688.25
Property management fee 1,123,173.09 1,236,357.40
R&D 6,455,972.94 4,955,581.09
Others 4,900,597.92 5,413,049.91
Total 75,547,311.64 67,185,503.16
42. Financial expenses
In RMB
Items Amount occurred in the current period Occurred in previous period
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2015 Interim Report of China Fangda Group Co., Ltd.
Interest expense 25,095,306.66 11,901,596.69
Less: Interest income 1,250,108.37 1,463,393.70
Exchange gain/loss 62,155.37 229,139.52
Commission charges and others 1,702,381.01 380,135.63
Total 25,609,734.67 11,047,478.14
Note
The financial expenses increased RMB131.82% year on year, mainly due to the increases in interest
expense for average loans.
43. Assets impairment loss
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Bad debt loss 14,372,081.89 4,867,184.58
Total 14,372,081.89 4,867,184.58
Note
Assets impairment loss increased 195.29% year on year, mainly due to increase in the bad loan
provision.
44. Income from fair value fluctuation
In RMB
Source of income from fluctuation of
Amount occurred in the current period Occurred in previous period
fair value
Financial assets measured at fair value
with variations accounted into current 2,676,854.00
income account
Investment real estate measured at fair
32,768,907.31
value
Total 35,445,761.31
Note
The income from fair value fluctuation increased RMB35,445,800 year on year, mainly due to increase in
the fair value of investment real estate.
45. Investment income
In RMB
Items Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment 1,256,994.94 -41,807.57
110
2015 Interim Report of China Fangda Group Co., Ltd.
measured by equity
Others 291,002.74 1,010,926.07
Total 1,547,997.68 969,118.50
46. Non-business income
In RMB
Amount occurred in the Amount accounted into the
Items Occurred in previous period
current period current accidental gain/loss
Total of gains from disposal
50,854.12 218,095.40 50,854.12
of non-current assets
Including: Gains from
50,854.12 218,095.40 50,854.12
disposal of fixed assets
Government subsidy 630,651.51 137,595.54 630,651.51
Penalty income 464,547.87 193,907.55 464,547.87
Penalty received 101,682.46 10,000.00 101,682.46
VAT rebated into revenue 1,211,179.56 547,615.39
Payable account not able to
116,834.08 1,242,148.51 116,834.08
be paid
Others 850,174.85 708,156.01 850,174.85
Total 3,425,924.45 3,041,518.40 2,214,744.89
Government subsidies accounted into current profit or loss:
In RMB
Amount occurred in the
Item Occurred in previous period Related to assets/earning
current period
Patent application subsidy 23,000.00 Earning-related
Railway transport screen
door controlling system and
19,155.96 19,465.03 Assets-related
information transmission
technology
Dongguan major or key
28,571.40 28,571.40 Assets-related
domestic project award
National Industry
Revitalization and
59,924.15 50,559.11 Assets-related
Technology Renovation
Project fund
Nanshan micro-business
500,000.00 Earning-related
loan interest discount
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Others 23,000.00 16,000.00
Total 630,651.51 137,595.54 --
47. Non-business expenses
In RMB
Amount occurred in the Amount accounted into the
Items Occurred in previous period
current period current accidental gain/loss
Total of losses from disposal
504,805.05 1,569,906.67 504,805.05
of non-current assets
Including: Losses from
502,872.97 1,569,906.67 502,872.97
disposal of fixed assets
Intangible asset
1,932.08 1,932.08
disposal loss
Donation 103,000.00 300,000.00 103,000.00
Lawsuit indemnity 14,921,737.67 14,921,737.67
Others 113,589.07 191,996.61 113,589.07
Total 15,643,131.79 2,061,903.28 15,643,131.79
Note
The non-business expenses increased 658.67% year on year, mainly due to the lawsuit indemnity. In
2010, Wang Weihong filed a lawsuit against Fangda Jianke, demanding payment of the engineering
amount and loss RMB17,070,000 and interest. On June 19, 2015, Chongqing Senior People’s Court
entered the judgment of second instance Yu Gao Fa Min Zhong Zi Di (2014) 00322, requiring Fangda
Jianke to pay RMB14,020,400 and interest to Wang Weihong and return the deposit of RMB2,345,000
and interest to Wang Weihong. The indemnity totals RMB14,921,700.
48. Income tax expenses
(1) Income tax expenses
In RMB
Items Amount occurred in the current period Occurred in previous period
Income tax expenses 11,562,638.82 8,660,715.86
Deferred income tax expenses 4,605,557.22 -4,297,812.32
Total 16,168,196.04 4,362,903.54
(2) Adjustment process of accounting profit and income tax expenses
In RMB
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Items Amount occurred in the current period
Total profit 60,329,310.95
Income tax expense calculated according to law/applicable
15,082,327.74
tax rate
Impacts of different tax rates for subsidiaries -5,722,767.07
Impacts on income tax before adjustment -218,885.67
Impacts of non-taxable income -983,459.27
Impacts of non-deductible cost, expense and loss 2,287,773.43
Reductable temporary difference and deductable loss of
4,598,333.40
unrecoginized deferred income tax assets
Others 1,119,198.31
Income tax expenses 16,168,196.04
49. Other miscellaneous income
See Note 35.
50. Notes to the cash flow items
(1) Other cash inflow related to operation
In RMB
Items Amount occurred in the current period Occurred in previous period
Interest income 1,250,108.37 1,405,149.55
Subsidy income 523,000.00 73,335.30
Retrieving of bidding deposits 28,156,441.69 43,912,943.25
Operational trade received, net 131,098.26
Others 7,342,275.28 2,345,059.60
Total 37,271,825.34 47,867,585.96
(2) Other cash paid related to operation
In RMB
Items Amount occurred in the current period Occurred in previous period
Management costs paid 12,048,739.54 14,368,126.02
Sales costs paid 6,609,184.84 3,978,971.73
Deposit and pledge paid 43,444,113.34 27,198,442.50
Personal borrowing 2,038,161.79 2,763,090.54
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Net draft deposit net paid 2,733,131.88
Others 9,300,935.99 17,351,072.72
Total 76,174,267.38 65,659,703.51
(3) Other cash received related to investment activities
In RMB
Items Amount occurred in the current period Occurred in previous period
Retrieving of deposits, net 133,500.00
Total 133,500.00
(4) Other cash paid related to investment activities
In RMB
Items Amount occurred in the current period Occurred in previous period
Deposit 40,117,900.00 130,500.00
Total 40,117,900.00 130,500.00
(5) Other cash paid related to financing
In RMB
Items Amount occurred in the current period Occurred in previous period
Payment of insuance fee 1,171,039.70
Net associated bill net paid 53,500,000.00
Dividend commission 156,090.75
Others 439,000.00
Total 55,110,039.70 156,090.75
51. 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 44,161,114.91 39,227,378.34
Plus: Asset impairment provision 14,372,081.89 4,867,184.58
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Fixed asset depreciation, gas and petrol
depreciation, production goods 14,617,490.88 11,931,523.88
depreciation
Amortization of intangible assets 2,117,084.77 1,714,855.62
Amortization of long-term amortizable
765,415.35 599,567.88
expenses
Loss from disposal of fixed assets,
intangible assets, and other long-term 453,950.93 1,351,811.27
assets (“-“ for gains)
Loss from fair value fluctuation (“-“ for
-35,445,761.31
gains)
Financial expenses (“-“ for gains) 25,157,462.03 11,901,596.69
Investment losses (“-“ for gains) -1,547,997.68 -969,118.50
Decrease of deferred income tax asset
-4,349,309.65 -4,492,779.69
(“-“ for increase)
Increase of deferred income tax asset
8,350,524.37 201,267.35
(“-“ for increase)
Decrease of inventory (“-“ for increase) -61,425,337.33 -358,335,093.96
Decrease of operational receivable items
-322,021,976.29 -106,160,080.05
(“-“ for increase)
Increase of operational receivable items
37,350,054.06 141,821,176.57
(“-“ for decrease)
Others 2,733,131.88 -12,212,019.59
Cash flow generated by business
-274,712,071.19 -268,552,729.61
operations, net
2. Major investment and financing
-- --
operation not involving with cash
3. Net change of cash and cash
-- --
equivalents
Balance of cash at period end 212,370,926.94 246,577,937.02
Less: Initial balance of cash 102,638,232.19 285,237,255.38
Add: Ending balance of cash equivalents 80,600,000.00
Less: Ending balance of cash
0.00
equivalents
Net increase in cash and cash
109,732,694.75 41,940,681.64
equivalents
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(2) Composition of cash and cash equivalents
In RMB
Items Closing balance Opening balance
I. Cash 212,370,926.94 102,638,232.19
Including: Cash in stock 21,869.76 40,733.33
Bank savings can be used at any
210,261,075.52 102,515,874.25
time
Other monetary capital can be
2,087,981.66 81,624.61
used at any time
3. Balance of cash and cash equivalents
212,370,926.94 102,638,232.19
at end of term
52. Ownership- or use-right-restricted assets
In RMB
Items Closing book value Reason
Lawsuit freezing and bank acceptance
Monetary capital 160,634,434.80
note and guarantee deposit
Fixed assets 53,671,015.43 Loan by pledge
Investment real estate 225,741,361.46 Loan by pledge
Total 440,046,811.69 --
53. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Foreign currency balance at RMB balance at the end of
Items Exchange rate
the end of the period the period
HK Dollar 3,005,719.84 0.7886 2,370,351.69
SGD 210,488.19 4.558 959,405.17
SGD 74,223.92 4.558 338,312.63
USD 3,247,874.70 6.1136 19,856,206.79
HK Dollar 653,488.35 0.7886 515,347.45
AUD 40,000.00 4.6993 187,972.00
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(2) Foreign major operation location, recording currency and selection basis should be disclosed
for a significant foreign operation entiy. Where the recording currency is changed, the reason for
the change should be disclosed.
□ Applicable √ Inapplicable
54. Arbitrage
Arbitrage items and related arbitrage tools, qualitative and quantitative information about arbitraged risks
are disclosed.
VIII Interests in other entities
1. Interests in subsidiaries
(1) Group structure
Operation Registered Shareholding
Company Business Method
location address Direct Indirect
Designing,
manufacturing,
Fangda Jianke Shenzhen Shenzhen 98.39% 1.61% Incorporation
and installation
of curtain walls
Production,
procession and
Fangda
Shenzhen Shenzhen installation of 94.08% 5.92% Incorporation
Automatic
subway screen
doors
Prodution and
sales of
Fangda Jiangxi new-type
Nanchang Nanchang 75.00% 25.00% Incorporation
New Material materialsm
composite
materials
Design,
production,
sales and
Fangda
Nanchang Nanchang installation of 100.00% Incorporation
Aluminium
aluminium
profile, doors
and windows
HK Junjia Hong Kong Hong Kong Investment 100.00% Incorporation
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Manufacturing
of
semiconductor
lighting material
and chips;
encapsulation;
Shenyang
Shenyang Shenyang designing, 64.58% Incorporation
Fangda
manufacturing,
engineering,
installation and
trading of
semiconductor
lighting system
Computer
Kexunda Shenzhen Shenzhen software 100.00% Incorporation
development
Real estate
Fangda
Shenzhen Shenzhen development 100.00% Incorporation
Property
and operation
Design and
Fangda New
Shenzhen Shenzhen installation of 100.00% Incorporation
Resource
PV power plants
Trusted
Chengdu processing of
Chengdu Chengdu 100.00% Incorporation
Fangda Jianke building curtain
wall materials
Shihui
Virgin Islands Virgin Islands Investment 100.00% Incorporation
International
Installation and
Dongguan New
Dongguan Dongguan sales of building 100.00% Incorporation
Material
curtain walls
Designing,
Shenyang manufacturing,
Shenyang Shenyang 100.00% Incorporation
Decoration and installation
of curtain walls
Installation of Consolidation of
LED color entities not
Shenzhen Woke Shenzhen Shenzhen 64.58%
curtain wall, city under common
and road lamps control
Production and Consolidation of
Fangda SOZN Zhongshan Zhongshan 60.00%
sales of lights entities not
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under common
control
Note:
Basis of invested entities that the Company holds half or less than half of the shares with voting rights
but still controls, and holds more than half but does not control:
Basis for control on significant structural subjects incorporated into the consolidation scope:
Basis for confirming whether the Company is an agent or client:
(2) Significant non-wholly owned subsidiaries
In RMB
Gain/loss attributable Dividend distributed to Balance of minority
Minority shareholder
Company to minority minority shareholders interest at the end of
shareholding
shareholders in this period the period
Shenyang Fangda 35.42% -1,347,594.94 48,047,703.38
Fangda SOZN 40.00% -5,808,939.02 10,399,527.19
(3) Major financial information of significant non-wholly owned subsidiaries
In RMB
Closing balance Opening balance
Non-cur Non-cur
Compa Non-cur Current Total Non-cur Total
Current Total of rent Current Total of Current rent
ny rent liabilitie liabilitie rent liabilitie
asset assets liabilitie asset assets liabilities liabilitie
assets s s assets s
s s
Shenya
11,755, 99,896, 111,652, 29,143, 29,143, 11,922, 102,875 114,798 28,484, 28,484,
ng
919.63 963.15 882.78 662.59 662.59 896.03 ,540.72 ,436.75 600.69 600.69
Fangda
Fangda 149,695 28,492, 178,187 182,188 182,188 98,422, 24,060, 122,482 111,961, 111,961,
SOZN ,009.40 673.93 ,683.33 ,865.36 ,865.36 161.21 401.24 ,562.45 396.93 396.93
In RMB
Amount occurred in the current period Occurred in previous period
Total of Cash flow of Total of Cash flow of
Company
Turnover Net profit misc. business Turnover Net profit misc. business
incomes activities incomes activities
Shenyang -3,804,615. -3,804,615. -4,355,109. -4,355,109.
-170,718.69 -284,643.63
Fangda 87 87 83 83
Fangda 110,671,469 -14,522,347 -14,522,347 -2,458,543.
SOZN .13 .55 .55 39
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2015 Interim Report of China Fangda Group Co., Ltd.
2. Interests in joint ventures or associates
(1) Financial information about insignificant joint ventures and associates
In RMB
Closing balance/amount of this period Opening balance/amount of last period
Joint venture: -- --
Total calculated based on shareholding
-- --
percentage of the following items
Associate: -- --
Total book value of investment 10,105,655.37 11,048,660.43
Total calculated based on shareholding
-- --
percentage of the following items
Net profit 1,256,994.94 -41,807.57
Total of misc. incomes 1,256,994.94 -41,807.57
IX. Risks related to financial tools
Details about the Group's financial instruments are disclosed in related notes. The following explains
risks related to the financial instruments and risk management policies adopted by the Group to lower
the risks. The management of the Group manages and monitor the risks to ensure that the risks are
within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financial risks’
impacts on the Group’s financial performance. Based on the target, the Group has formulated risk
management policy to identify and analyze risks facing the Group and set an appropriate acceptable
level and internal control procedures to monitor the risks. The Group regularly reviews the risk
management policies and related internal control system to suit the market status and changes in the
Group’s operating activities. The internal auditing department of the Group will regularly or randomly
check the implementation of the internal control system.
Risks caused by the Group’s financial instruments are interest risk, exchange rate risk, credit risk and
liquidity risk.
(1) Market risk
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future
cash flow, including interest risk, exchange rate and other price risks.
Interest rate risk
Interest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments
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2015 Interim Report of China Fangda Group Co., Ltd.
caused by changes in the market interest rate. The interest rate risk can be caused by recognized
interest-bearing financial instruments and unrecognized financial instruments.
The Group's interest rate risk is mainly caused by short-term borrowings. Financial liabilities with floating
interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate
cause fair value interest rate risk for the Group. By June 30, 2015, short-term borrowings of the Group
are fixed interest contracts.
Exchange rate risk
Exchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments
caused by changes in the foreign exchange rates. The exchange rate risk can be caused by financial
instruments priced in foreign currencies.
The Group mainly operates in China and use RMB as the settlement currency. Therefore, the exchange
rate risk facing the Group is minor.
See foreign currency item note for the Group’s financial assets and liabilities priced in foreign currencies.
(2) Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations,
causing the risk of financial loss for the other party.
The Group manages credit risks through classification. The credit risk is mainly caused by bank deposit
and receivables.
The Group’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The
credit risk caused by bank deposited is minor.
For receivables, the Group sets up related policies to control the credit risk. The Group set the credit line
and term for debtors according to their financial status, external rating, and possibility of getting
third-party guarantee, credit record and other factors. The Group regularly monitors debtors’ credit
record. For those with poor credit record, the Group will send written payment reminders, shorten or
cancel credit term to lower the general credit risk.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet.
The Group makes no guarantee that may cause the Group credit risks.
On June 30, 2015, among the Group’s receivables, accounts receivable from top 5 customers account
for 11.17% of the total accounts receivable (2014: 11.26%); among other receivables, other receivables
from top 5 customers account for 42.45% of the total other receivables (2014: 27.06%).
(3) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other
financial assets.
The Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash
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2015 Interim Report of China Fangda Group Co., Ltd.
and cash equivalent can meet the operation needs. The management of the Group monitors the use of
bank loans and ensures that they are used as agreed. The Group also obtains guarantee from financial
institutions for adequate standby fund to meet short-term and long-term capital demand.
The Group can also use fund generated by operating activities and bank and other loans. On June 30,
2015, bank loan credit that the Group has not used was RMB2,023,246,600.
X. Disclosure of fair value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
Closing fair value
Items First level fair Second level fair Third level fair
Total
value value value
1. Continuous fair
-- -- -- --
value measurement
(2) Investment in
16,087,644.00 16,087,644.00
equity tools
2. Leased building 231,282,493.46 231,282,493.46
Total assets
measured at fair 16,087,644.00 231,282,493.46 247,370,137.46
value continuously
Derivative
1,445,950.00 1,445,950.00
financial liabilities
Total liabilities
measured at fair value 1,445,950.00 1,445,950.00
continuously
2. Discontinuous fair
-- -- -- --
value measurement
2. Determination basis for continuous and discontinuous first level fair value measurement
The Group determines the fair value using quotation in an active market for financial instruments traded
in an active market;
3. Continuous and discontinuous second level fair value measurement items, valuation
techniques, important qualitative and quantitative information
For investment in real estate similar with real estate transaction, the Group uses valuation techniques to
determine its fair value. The technique is comparison method. Inputs include transaction date, status,
region and other factors.
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2015 Interim Report of China Fangda Group Co., Ltd.
4. Continuous fair value measurement items, switch between different levels, reason and
switching policies
In the period, there is no switch in the financial assets measured at fair value between the first and
second level or transfer in or out of the third level.
5. Change in valuation technique and reason
None
6. Fair value of financial assets and liabilities not measured at fair value
The difference between book value and fair value of financial assets and liabilities not measured at fair
value is small.
XI. Related parties and transactions
1. Parent of the Company
Registered Share of the parent Voting power of the
Parent Business Registered capital
address co. in the Company parent company
Shenzhen Banglin
Technologies Industrial
Shenzhen RMB30 million 9.09% 9.09%
Development Co., investment
Ltd.
Shenzhen Shilihe
Industrial
Investment Co., Shenzhen RMB19,780,992 2.36% 2.36%
investment
Ltd.
Shengjiu Industrial
Hong Kong HKD10,000 5.92% 5.92%
Investment Ltd. investment
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.
The final controller is Xiong Jianming.
2. Subsidiaries of the Company
See Note VIII, 8 for the details.
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2015 Interim Report of China Fangda Group Co., Ltd.
3. Joint ventures and associates
See Note VIII, 2 for details.
The following shows other joint ventures or associates that made related transactions with the Company
or with balance of related transactions in previous periods:
Joint venture or associate Relationship with the Company
Shenzhen Ganshang Joint Investment Co., Ltd. Associate
Other related parties
Other related parties Relationship with the Company
5. Related transactions
(1) Related leasing
The Company is the leasor:
In RMB
Recognized release income Recognized release income
6Name of the leasee Category of asset for lease
this period last period
Shenzhen Ganshang Joint
Office building 64,455.14 11,050.60
Investment Co., Ltd.
The Company is the leasee:
In RMB
Name of the owner Category of asset for lease Recognized lental this period Recognized lental last period
(2) Remuneration of key management
In RMB
Items Amount occurred in the current period Occurred in previous period
Wage, allowance and subsidies 2,535,415.00 2,462,740.00
XII. Commitments and/or contingent events
1. Contingent events
(1) Significant contingencies on the balance sheet date
Fangda Jianke filed a lawsuit against Wang Weihong, demanding payment of RMB18 million
engineering amount and loss. In July 2015, Fangda Jianke submitted supplementary materials and
applied for freezing of RMB23 million. The court will open a court session in August.
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2015 Interim Report of China Fangda Group Co., Ltd.
(2) Important contingencies that dont need to be disclosed but need to be explained
None
2. Others
XIII. Other material events
1. Segment information
(1) Reporting segment determination basis and accounting policy
he Group divides its businesses into five reporting segments. The reporting segments are determined
based on financial information required by routine internal management. The Group’s management
regularly review the operating results of the reporting segments to determine resource distribution and
evaluate their performance.
The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design,
production and installation;
(2) Rail transport segment, assembly and processing of metro screen doors;
(3) Real estate segment, development and operating of real estate on land of which land use right is
legally obtained by the Company; property management;
(4) New energy segment, R&D, installation and sales of PV devices, design and construction of PV
power plants; R&D, design, production, sales and installation of light accessories, and other lights, LED
products and hardware.
(5) Others
The segment report information is disclosed based on the accounting policies and measurement
standards used by the segments when reporting to the management. The policies and standards should
be consistent with those used in preparing the financial statement.
(2) Financial information of reporting segments
In RMB
Items Curtain wall Rail transport Real estate New energy Others Offset Total
932,136,542. 98,245,302.2 110,671,469.1 15,377,309.7 1,150,115,523
Turnover 0.00 6,315,100.39
81 5 3 3 .53
Major
924,788,347. 96,966,572.5 106,210,831. 1,125,911,242
business 0.00 2,054,509.68
83 1 94 .60
turnover
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2015 Interim Report of China Fangda Group Co., Ltd.
Operation 770,980,941. 74,022,517.8 95,899,842.3 940,487,258.
0.00 1,670,215.88 2,086,259.42
cost 67 6 6 35
Major 766,367,700. 73,765,384.5 91,762,087.7 929,839,206.
0.00 2,055,966.18
business cost 66 1 9 78
XIV. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book
Bad debt provision
Type value provision Book value Book
Proporti Provisio value Amoun Proporti Provision value
Amount Amount Amount
on n rate t on rate
Account receivable
for which bad debt 527,485. 100.00 15,824.5 511,660. 527,48 100.00 15,824.5 511,660.6
3.00% 3.00%
provision is made 15 % 5 60 5.15 % 5 0
by credit risk group
527,485. 100.00 15,824.5 511,660. 527,48 100.00 15,824.5 511,660.6
Total 3.00% 3.00%
15 % 5 60 5.15 % 5 0
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 balance
Age
Account receivable Bad debt provision Provision rate
Items within one year
Less than 1 year 527,485.15 15,824.55 3.00%
Subtotal for less than 1 year 527,485.15 15,824.55 3.00%
Total 527,485.15 15,824.55 3.00%
Grouping basis:
Account receivable adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
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2015 Interim Report of China Fangda Group Co., Ltd.
Account receivable adopting other methods in the group:
(2) Bad debt provision made, recovered or written back this period
A provision of RMB0.00 was made with RMB0 recovered or written back this period.
The provision recovered or written back this period mainly includes:
In RMB
Entity Written-back or recovered amount Method
(3) Top 5 receivable accounts in terms of the balance at the end of the period
The total balance of accounts receivable due from top 5 account receivable entities at the end of the
period is RMB348,543.92, accounting for 66.08% of the aggregate. Bad debt provisions made totaled
RMB10,456.32 at the end of the period.
2. Other receivables
(1) Other receivables are disclosed by categories
In RMB
Closing balance Opening balance
Remaining book Bad debt Remaining book
Bad debt provision
Type value provision Book value Book
Proporti Provisio value Amoun Proporti Provision value
Amount Amount Amount
on n rate t on rate
Other receivables
255,15
for which bad debt 359,354, 1,794,88 357,559, 548,475. 254,604,1
99.98% 0.50% 2,639. 99.97% 0.21%
provision is made 251.02 1.38 369.64 39 63.79
18
by credit risk group
Other receivables
with minor
individual amount 77,046.0 77,046.0 100.00 77,046 77,046.0
0.02% 0.00 0.03% 100.00% 0.00
and bad debt 0 0 % .00 0
provision provided
individually
255,22
359,431, 1,871,92 357,559, 625,521. 254,604,1
Total 9,685.
297.02 7.38 369.64 39 63.79
18
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
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method:
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Other receivables Bad debt provision Provision rate
Items within one year
Less than 1 year 41,715,526.55 1,251,465.80 3.00%
Subtotal for less than 1 year 41,715,526.55 1,251,465.80 3.00%
1-2 years 40,000.00 4,000.00 10.00%
2-3 years 18,379.35 5,513.81 30.00%
Over 3 years 1,067,803.54 533,901.77 50.00%
Total 42,841,709.44 1,794,881.38 4.19%
Grouping basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group:
□ Applicable √ Inapplicable
(2) Bad debt provision made, recovered or written back this period
A provision of RMB1,246,405.99 was made with RMB0 recovered or written back this period.
The provision recovered or written back this period mainly includes:
In RMB
Entity Written-back or recovered amount Method
(3) Composition of other receivables
In RMB
By account Closing balance of book value Opening balance of book value
Payments between counterparts 316,512,541.58 253,944,828.64
Deposit 40,100,699.54 100,699.54
Other accounts 2,818,055.90 1,184,157.00
Total 359,431,297.02 255,229,685.18
(4) Top 5 other receivables in terms of the balance at the end of the period
In RMB
Entity By account Closing balance Age Percentage in the Balance of the bad
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2015 Interim Report of China Fangda Group Co., Ltd.
balance of other debt provision at
receivables at the the end of the
end of the period period
Fangda Property Trades 133,179,160.80 1-2 years 47.27%
Fangda Property
Trades 36,715,800.70 Less than 1 year
Fangda Jianke Trades 108,518,719.42 Less than 1 year 30.19%
Nanchang Finance
Deposit 40,000,000.00 Less than 1 year 11.15% 1,200,000.00
Bureal
HK Junjia Trades 3,789.54 Less than 1 year 8.46%
HK Junjia Trades 83,183.13 1-2 years
HK Junjia Trades 3,230.28 2-3 years
HK Junjia Trades 30,321,229.22 Over 3 years
Shenyang Fangda Trades 6,906,771.58 Over 3 years 1.92%
Total -- 355,731,884.67 -- 98.97% 1,200,000.00
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Items Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in 1,166,555,998.5 1,119,625,898.5 1,166,555,998.5 1,119,625,898.5
46,930,100.00 46,930,100.00
subsidiaries 8 8 8 8
Investment in
affiliates and 10,105,655.37 10,105,655.37 11,048,660.43 11,048,660.43
joint ventures
1,176,661,653.9 1,129,731,553.9 1,177,604,659.0 1,130,674,559.0
Total 46,930,100.00 46,930,100.00
5 5 1 1
(1) Investment in subsidiaries
In RMB
Balance of the
bad debt
Opening Provision made
Invested entity Increase Decrease Closing balance provision at the
balance in this period
end of the
period
Fangda Jianke 491,950,000.00 491,950,000.00
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2015 Interim Report of China Fangda Group Co., Ltd.
Fangda
19,800,000.00 19,800,000.00 19,800,000.00
Aluminium
HK Junjia 10,600.00 10,600.00 10,600.00
Fangda
170,385,071.73 170,385,071.73
Automatic
Fangda New
74,496,600.00 74,496,600.00
Material
Shenyang
108,852,073.85 108,852,073.85 27,119,500.00
Fangda
Kexunda 1,000,000.00 1,000,000.00
Fangda Property 200,000,000.00 200,000,000.00
Shihui
International 61,653.00 61,653.00
Holding Co., Ltd.
Fangda New
100,000,000.00 100,000,000.00
Resource
1,166,555,998. 1,166,555,998.
Total 46,930,100.00
58 58
(2) Investment in affiliates and joint ventures
In RMB
Change Balance
Investme of the
Other
nt gain Cash bad debt
Increase Decreas miscella Provision
Invested Opening recogniz Other dividend Closing provision
d ed neous impairme
entity balance ed with equity or profit Others balance at the
investme investme income nt
the change announc end of
nt nt adjustme provision
equity ed the
nt
method period
1. Joint venture
2. Associate
Shenzhe
n
Ganshan
11,048,6 1,256,99 2,200,00 10,105,6
g Joint
60.43 4.94 0.00 55.37
Investme
nt Co.,
Ltd.
Subtotal 11,048,6 1,256,99 2,200,00 10,105,6
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2015 Interim Report of China Fangda Group Co., Ltd.
60.43 4.94 0.00 55.37
11,048,6 1,256,99 2,200,00 10,105,6
Total
60.43 4.94 0.00 55.37
(3) Others
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Items
Income Cost Income Cost
Other business 15,377,309.73 1,670,215.88 14,332,254.25 2,129,602.96
Total 15,377,309.73 1,670,215.88 14,332,254.25 2,129,602.96
5. Investment income
In RMB
Items Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
1,256,994.94 -41,807.57
measured by equity
Other investment gains 55,961.64
Total 1,312,956.58 -41,807.57
XV. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Items Amount Notes
Gain/loss of non-current assets -453,950.93
Subsidies accounted into the current
income account (except the government
subsidy closely related to the enterprise’s 630,651.51
business and based on unified national
standard quota)
Gain from entrusted investment or assets
295,002.74
management
Gain/loss from change of fair value of
2,676,854.00
transactional financial asset and
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2015 Interim Report of China Fangda Group Co., Ltd.
liabilities, and investment gains from
disposal of transactional financial assets
and liabilities and sellable financial
assets, other than valid period value
instruments related to the Company’s
common businesses
Gain/loss from change of fair value of
investment property measured at fair 32,768,907.31
value in follow-up measurement
Other non-business income and
-13,605,087.48
expenditures other than the above
Less: Influenced amount of income tax 6,395,082.75
Influenced amount of minority
86,697.93
shareholders’ equity
Total 15,830,596.47 --
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
2. Net income on asset ratio and earning per share
Earning per share
Weighted average net income/asset
Profit of the report period Basic earnings per Diluted Earnings per
ratio
share (yuan/share) share (yuan/share)
Net profit attributable to common
4.07% 0.07 0.07
shareholders of the Company
Net profit attributable to the
common owners of the PLC
2.82% 0.050 0.050
after deducting of non-recurring
gains/losses
3. 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
√ Applicable □ Inapplicable
In RMB
Net profit Net assets
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2015 Interim Report of China Fangda Group Co., Ltd.
Amount occurred in Occurred in previous
Closing balance Opening balance
the current period period
On Chinese accounting
51,317,648.87 40,769,958.24 1,262,312,157.68 1,234,930,863.46
standards
Items and amounts adjusted according International Accounting Standards:
On international
51,317,648.87 40,769,958.24 1,267,075,555.92 1,239,694,261.70
accounting standards
(2) Differences in net profits and assets in financial statements disclosed according to the
international and Chinese account standards
□ Applicable √ Inapplicable
(3) Where the data audited by overseas auditor has been adjusted, the name of the overseas
auditor should be specified.
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.
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2015 Interim Report of China Fangda Group Co., Ltd.
X Documents for Reference
1. The Interim Report 2015 and the Summary with signature of the legal representative (Chinese and
English);
2. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in
the newspapers as designated by China Securities Regulatory Commission.
134
