China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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China Fangda Group Co., Ltd.
The 1st Quarterly Report 2010 (Full Text)
§1 Important Declaration
1.1 The Board of Directors and the directors of the Company guarantee that there are no significant omissions,
fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities
for the truthfulness, accuracy and completeness of the Report.
1.2 Directors other than the followings presented at the Board Meeting on which this report was examined:
1.3 The financial statements carried in this report are not audited.
1.4 Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Financial Principal, and Ms. Liu Jie,
the Accounting Manager, declare: the Financial Report carried in this report is authentic and completed.
§2 Company Profile
2.1 Financial highlights
In RMB Yuan
Name of the director
absented Position Reason for not presenting the
meeting Name of consignee
Dong Likun Independent Director Business engagement Guo Jinlong
Ended this report
term
Ended previous
year
Changed by
(%)
Gross Assets (RMB) 1,501,000,469.76 1,482,814,012.11 1.23%
Owners’ equity attributable to the shareholders of
the listed company (yuan) 631,204,424.74 623,295,593.57 1.27%
Capital shares (shares) 426,786,359.00 426,786,359.00 0.00%
Net asset per share attributable to the shareholders
of the listed company (Yuan/share) 1.48 1.46 1.37%
This report term Same period last
year
Changed by
(%)
Turnover (yuan) 192,382,554.04 160,791,976.14 19.65%
Net profit attributable to shareholders of the listed
company (yuan) 11,419,167.15 10,653,332.57 7.19%
Net Cash flow generated by business operation
(RMB) -49,496,550.76 -2,410,866.00 ----
Net Cash flow per share generated by business
operation (yuan/share) -0.12 -0.01 ----
Basic earnings per share (Yuan/share) 0.0268 0.0250 7.19%
Diluted earnings per share (Yuan/share) 0.0268 0.0250 7.190%
Weighted average net
income/asset ratio (%) 1.82% 1.80% 0.02%
Weighted average net
income/asset ratio less non-recurring gain/loss(%) 1.05% 0.85% 0.20%China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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Statement on non-recurring gain/loss accounts
2.2 Total of shareholders and the top 10 holders of unconditional shares
in shares
Non-recurring gain and loss items
Amount of the period from the
beginning of year to the end of report
term
Gain/loss of non-current assets 1,936,170.04
Government subsidies accounted into current gain/loss account, other
than those closely related to the Company’s common business, comply
with the national policy and continues to enjoy at certain fixed rate or
amount.
164,303.49
Gain/loss from change of fair value of transactional asset and 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
3,176,516.97
Gain/loss from debt reorganization 22,156.38
Other non-business income and expenditures other than the above 24,753.60
Influenced amount of income tax -474,964.14
Influenced amount of minority shareholders’ equity 2,826.86
Total 4,851,763.20
1. RMB1,936,170.04 from disposal of fixed assets;
2. RMB3,176,516.97 of investment gains from disposal of disposable financial asset.
Total shareholders at the end of the report
period (accounts)
61,650 (including 39,799 A-share holders, and 21,851 B-share
holders)
Top ten holders of the shares without subscription limitation
Full name of shareholder Amount of unconditional shares held
at the end of report term Categories
Shenzhen Banglin Technologies
Development Co., Ltd. 42,850,014 RMB common shares
Shenzhen Shilihe Investment Co., Ltd. 18,904,045 RMB common shares
Hong Kong Onforce International Co.,
Ltd. 16,000,000 Foreign shares placed in
domestic exchange
China Industrial & Commercial Bank –
Nuo’an Stock Investment Foundation 3,309,311 RMB common shares
Qian Weimin 2,431,900 RMB common shares
Cao Yifan 1,993,000 Foreign shares placed in
domestic exchange
Chen Jinbiao 1,280,200 Foreign shares placed in
domestic exchange
Zhen Fan 1,040,000 Foreign shares placed in
domestic exchange
Liang Peiming 1,029,187 RMB common shares
Lou Yuhong 923,946 Foreign shares placed in
domestic exchangeChina Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
3.2 Progress of significant events, their influence, countermeasures, and analysis
√ applicable □ not applicable
3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
□applicable √ not applicable
3.4 Estimated accumulative profit from the year beginning to the end of the next report period may be of
deficits; or in comparison with the same period of the previous year, give the warning of great change and
the notice to the reasons.
□applicable √ not applicable
3.5 Major events needs to be explained
3.5.1 Investment in securities
□applicable √ not applicable
3.5.2 Reception of investigations, communications, or interviews
No such investigation, communication or visiting happened in the report term.
Notes receivable of RMB5.1378 million, increased by RMB5.4178 million from the beginning of year. This was
caused by increase of payment by bank notes from the clients.
Cash flow from business operation of RMB-49.4966, which was caused by increase of new project orders, and
increase of material purchase for the project engineering.
① Hangzhou City Xinyu Building No. 2, 3, 5, 6 energy saving glass curtain wall project was obtained at the end
of December 2007 with contract value of RMB163.70 million. It was started in May 2008. The whole contract
amount was increased up to RMB174.2864 million in June 2009 and the completion date has been extended to
June 2010.
② The PSD system of Shenzhen Metro Line 1 was contracted to RMB79.8586 million in total, up to present, the
Baishizhou Station, Gaoxinyuan Station, and Shenda Station has been put into operation in September 28, 2009,
the following stations are in installation process, this project will be completed in June 2011.
③ The PSD system of Shenzhen Metro Line 2 was contracted to RMB169.256 million. At present the project has
fully entered the stage of installation. Installations in four of the stations have completed. The project is expected
to be completed in June 2011.
④ Contract with Nanjing Metro was amounted to RMB59.52 million. Installation has been completed in all of
the 15 stations and are in testing stage. This project was planned to finish in May 2010.
⑤ Shenzhen Grean View Building curtain wall project will be completed in October 31, 2010.
⑥ The PSD system of Wuhan Railroad Line No.2 phase I was contracted with RMB80.8598 million. The project
is no on designing stage and will be finished at end of 2011.China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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3.5.3 Statement on other significant issues
√ applicable □ not applicable
3.6 Investment in derivate financial instruments
√ applicable □ not applicable
3.6.1 Derivate financial instrument stock at end of report term
√ applicable □ not applicable
In RMB Yuan
§4 Attachments
(1) The Company neither provided capital to the controlling shareholder or its associates, nor provided any
guarantee to outside parties with illegal procedures;
(2) There is no shareholder holding over 30% of the Company’s shares, and there is no such share-increasing plan
raised by shareholder with over 30% of the Company’s shares;
(3) No cash dividend was distributed in the report term;
(4) No major contract engaged in the report term.
Statement on analyzing and controlling of risks with
derivate investment in the report term (including but
not limited to market risks, liquidity risks, credit
risks, operation risks, and legal risks.
The Company adopts aluminum future contract in
domestic future market to avoid material price fluctuation
risks. The Company has established “Regulations of
Hedging Instrument of China Fangda Group Co., Ltd.” 方
（发）[2010]03 号, and implemented strictly.
Change of derivate instrument market price or fair
value, information disclosing on the fair value,
relative estimation and setting of indexes
Derivate instrument fair value is at quotation opened in the
future contract market, along with retrospective evaluation
process, all of the hedging are highly effective.
Statement on major alternation in accounting polices
and accounting basis on derivate instruments
comparing with last year
No significant change.
Particular comments of the independent directors,
sponsors, or financial consultants on investment of
derivate instruments and risk controlling
Hedging instruments are used strictly according to relative
regulations, and only used to secure the raw materials
needed by the Company. It is not manipulation of future
contracts, thus effectively reduced the risks. This will
benefit the steady development of the Company.
Category of
contracts
Amount of the
contract at beginning
of term
Amount of the
contract at end of
term
Gain/loss in the
report term
Percentage of value of
contracts on net asset
at end of report term %
Shanghai
Aluminum 22,949,075.00 32,350,650.00 -92,985.00 5.13%
Total 22,949,075.00 32,350,650.00 -92,985.00 5.13%China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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4.1 Balance Sheet
Prepared by China Fangda Group Co., Ltd. Ended March 31, 2010 RMB Yuan
Items
Balance at the end of term Balance at the beginning of year
Consolidated Parent company Consolidated Parent company
Current asset:
Monetary capital 178,422,314.04 34,680,210.60 225,638,874.09 42,274,488.50
Settlement provision
Outgoing call loan
Transactional financial assets
Notes receivable 5,137,819.60 620,000.00
Account receivable 388,880,740.80 7,451,835.71 333,653,242.73 10,360,034.57
Prepayment 19,874,411.13 14,855,691.29 142,638.53
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts receivable
Interest receivable 82,450.00 360,525.00
Dividend receivable 59,900,000.00 68,300,000.00
Other account receivable 44,792,461.07 302,891,345.73 34,909,899.09 254,201,660.72
Repurchasing of financial assets
Inventories 197,308,122.55 198,970,648.46
Non-current asset due in 1 year
Other current asset 1,822,442.50 3,315,075.00
Total of current asset 836,320,761.69 404,923,392.04 812,323,955.66 375,278,822.32
Non-current assets
Loans and payment on other’s behalf disbursed
Sellable financial asset 4,130,000.00 4,130,000.00 7,520,445.42 3,496,410.96
Expired investment in possess
Long-term receivable
Long-term share equity investment 2,997,216.45 327,121,953.02 2,997,216.45 327,121,953.02
Investment properties 259,497,678.80 251,001,478.80 259,497,678.80 251,001,478.80
Fixed assets 253,188,529.87 55,666,956.71 259,250,051.32 56,120,248.80
Construction in process 21,287,471.11 236,880.00 18,327,957.02
Engineering goods
Fixed asset disposal 7,472.50 455,423.65
Production physical assets
Gas & petrol
Intangible assets 78,182,671.54 10,129,606.64 78,469,313.92 10,270,993.34
R&D expense 1,958,809.61 1,185,899.73
Goodwill 8,197,817.29 8,197,817.29
Long-term amortizable expenses
Differed income tax asset 35,232,040.90 18,825,416.91 34,588,252.85 18,497,571.25
Other non-current asset
Total of non-current assets 664,679,708.07 667,112,292.08 670,490,056.45 666,508,656.17
Total of assets 1,501,000,469.76 1,072,035,684.12 1,482,814,012.11 1,041,787,478.49
Current liabilitiesChina Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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Short-term loans 380,000,000.00 210,000,000.00 370,000,000.00 210,000,000.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Notes payable 15,148,350.49 24,166,495.62
Account payable 204,470,963.29 4,634,652.84 200,145,847.34 7,653,666.23
Prepayment received 89,937,415.92 693,045.60 82,972,481.39 771,848.60
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 4,354,877.44 1,482.00 4,583,925.93 10,251.76
Tax payable 29,499,362.66 674,521.14 30,026,775.63 1,156,239.74
Interest payable 562,026.25 323,688.75 557,551.25 323,688.75
Dividend payable
Other account payable 30,033,390.90 228,889,335.03 29,077,737.90 194,524,051.83
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability
Total of current liability 754,006,386.95 445,216,725.36 741,530,815.06 414,439,746.91
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 22,104,254.96 21,424,895.57 22,622,907.36 21,285,505.98
Other non-recurring liabilities 4,250,000.00 4,250,000.00
Total of non-current liabilities 26,354,254.96 21,424,895.57 26,872,907.36 21,285,505.98
Total of liability 780,360,641.91 466,641,620.93 768,403,722.42 435,725,252.89
Owners’ equity (or shareholders’ equity)
Capital paid in (or share capital) 426,786,359.00 426,786,359.00 426,786,359.00 426,786,359.00
Capital reserves 77,112,152.69 36,176,412.81 80,622,488.67 35,682,213.36
Less: Shares in stock
Special reserves
Surplus reserves 13,360,180.84 13,360,180.84 13,360,180.84 13,360,180.84
Common risk provision
Retained profit 113,945,732.21 129,071,110.54 102,526,565.06 130,233,472.40
Different of foreign currency translation
Total of owner’s equity belong to the parent
company 631,204,424.74 605,394,063.19 623,295,593.57 606,062,225.60
Minor shareholders’ equity 89,435,403.11 91,114,696.12
Total of owners’ equity 720,639,827.85 605,394,063.19 714,410,289.69 606,062,225.60
Total of liabilities and owners’ equity 1,501,000,469.76 1,072,035,684.12 1,482,814,012.11 1,041,787,478.49China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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4.2 Income Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Mar 2010 RMB Yuan
Items
Amount of the Current Term Amount of the Previous Term
Consolidated Parent
company Consolidated Parent
company
I. Total revenue 192,382,554.04 8,331,140.23 160,791,976.14 7,148,875.24
Incl. Business income 192,382,554.04 8,331,140.23 160,791,976.14 7,148,875.24
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 186,004,286.40 9,820,387.75 158,217,775.07 9,218,164.65
Incl. Business cost 152,280,171.91 2,158,277.95 128,872,779.67 1,544,699.41
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy reserves provided
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 3,552,023.10 327,835.61 3,976,144.13 275,656.00
Sales expense 5,458,756.45 346,845.28 5,607,026.90 561,530.68
Administrative expense 19,332,962.37 4,145,128.38 15,915,025.10 3,640,408.66
Financial expenses 4,958,264.70 3,059,685.07 5,971,666.85 3,317,386.97
Asset impairment loss 422,107.87 -217,384.54 -2,124,867.580 -121,517.070
Plus: Gains from change of fair value (“-“ for loss) 1,562,400.00 0.00
Investment gain (“-“ for loss) 3,176,516.97 5,445,702.36 0.00
Incl. Investment gains from affiliates 0.00 0.00
Gains from currency exchange (“-“ for loss)
III. Operational profit (“-“ for loss) 9,554,784.61 -1,489,247.52 9,582,303.43 -2,069,289.410
Plus: Non business income 2,422,591.91 417,127.66 95,868.82
Less: Non-business expenses 275,208.40 960.00 86,303.26 1,825.51
Incl. Loss from disposal of non-current assets 0.00 0.00
IV. Gross profit (“-“ for loss) 11,702,168.12 -1,490,207.52 9,913,127.83 -1,975,246.100
Less: Income tax expenses 1,962,293.98 -327,845.66 400,670.10 0.00
V. Net profit (“-“ for net loss) 9,739,874.14 -1,162,361.86 9,512,457.73 -1,975,246.100
Net profit attributable to the owners of parent
company 11,419,167.15 -1,162,361.86 10,653,332.57 -1,975,246.10
Minor shareholders’ equity -1,679,293.01 -1,140,874.840 0.00
VI. Earnings per share:
(I) Basic earnings per share 0.03 0.02
(II) Diluted earnings per share 0.03 0.02
VII. Other misc. incomes -3,510,335.98 4,102,961.16
VIII. Total of misc. incomes 6,229,538.16 -1,162,361.86 13,615,418.89 -1,975,246.10
Total of misc. incomes attributable to the owners of
the parent company 7,908,831.17 -1,162,361.86 14,756,293.73 -1,975,246.10
Total misc gains attributable to the minor
shareholders -1,679,293.01 -1,140,874.84China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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4.3 Cash Flow Statement
Prepared by: China Fangda Group Co., Ltd. Jan-Mar 2010 RMB Yuan
Items
Amount of the Current Term Amount of the Previous Term
Consolidated Parent
company Consolidated Parent
company
I. Net cash flow from business operation
Cash received from sales of products and providing
of services 154,788,742.13 8,784,225.58 173,568,387.03 10,401,987.36
Net increase of customer deposits and capital kept
for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial
bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee, and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 52,546.60 129,037.13 0.00
Other cash received from business operation 15,152,594.91 1,370,415.23 10,564,947.67 445,599.45
Sub-total of cash inflow from business activities 169,993,883.64 10,154,640.81 184,262,371.83 10,847,586.81
Cash paid for purchasing of merchandise and
services 161,866,303.00 1,373,991.47 144,006,988.88 3,502,892.41
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 staffs or paid for staffs 16,811,719.93 1,531,029.21 14,584,259.63 1,621,632.83
Taxes paid 16,573,778.70 1,002,628.55 6,999,234.60 1,662,404.91
Other cash paid for business activities 24,238,632.77 4,122,126.37 21,082,754.72 1,019,662.33
Sub-total of cash outflow from business activities 219,490,434.40 8,029,775.60 186,673,237.83 7,806,592.48
Cash flow generated by business operation, net -49,496,550.76 2,124,865.21 -2,410,866.00 3,040,994.33
II. Cash flow generated by investing
Cash received from investment retrieving 854,089.54 3,000,195.95 0.00
Cash received as investment gains 3,176,516.97 8,400,000.00 5,522,154.19 0.00
Net cash retrieved from disposal of fixed assets,
intangible assets, and other long-term assets 2,265,064.95 0.00 0.00
Net cash received from disposal of subsidiaries or
other operational units 0.00 0.00
Other investment-related cash received 0.00 0.00
Sub-total of cash inflow due to investment
activities 6,295,671.46 8,400,000.00 8,522,350.14 0.00China Fangda Group Co., Ltd. The 1st Quarterly Report 2010 (Full text)
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4.4 Auditors’ Report
Auditor’s opinion: not audited.
China Fangda Group Co., Ltd.
The Board of Directors
April 22, 2010
Cash paid for construction of fixed assets, intangible
assets and other long-term assets 4,828,883.06 992,230.42 568,805.07 0.00
Cash paid as investment 3,131,669.25 0.00
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units 0.00 0.00
Other cash paid for investment activities 0.00 0.00
Sub-total of cash outflow due to investment
activities 4,828,883.06 992,230.42 3,700,474.32 0.00
Net cash flow generated by investment 1,466,788.40 7,407,769.58 4,821,875.82 0.00
III. Cash flow generated by financing
Cash received as investment 0.00 0.00
Incl. Cash received as investment from minor
shareholders
Cash received as loans 260,000,000.00 210,000,000.00 164,425,824.27 53,859,401.97
Cash received from bond placing
Other financing-related cash received 0.00 0.00
Subtotal of cash inflow from financing activities 260,000,000.00 210,000,000.00 164,425,824.27 53,859,401.97
Cash to repay debts 250,000,000.00 224,519,441.38 88,260,907.74 9,000,000.00
Cash paid as dividend, profit, or interests 4,423,257.35 2,624,256.25 5,572,018.94 3,320,919.01
Incl. Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities 71,900.00 0.00
Subtotal of cash outflow due to financing
activities 254,423,257.35 227,143,697.63 93,904,826.68 12,320,919.01
Net cash flow generated by financing 5,576,742.65 -17,143,697.63 70,520,997.59 41,538,482.96
IV. Influence of exchange rate alternation on cash and
cash equivalents -3,010.63 2.70 -10,510.42 -194.77
V. Net increase of cash and cash equivalents -42,456,030.34 -7,611,060.14 72,921,496.99 44,579,282.52
Plus: Balance of cash and cash equivalents at the
beginning of term 211,430,553.39 42,024,488.50 211,638,447.88 3,702,206.23
VI. Balance of cash and cash equivalents at the end of
term 168,974,523.05 34,413,428.36 284,559,944.87 48,281,488.75
