China Fangda Group Co., Ltd. The 3rd Quarterly Report 2010 (Official Text)
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Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2010-35
China Fangda Group Co., Ltd.
The 3rd Quarterly Report 2010 (Official 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:
Name of the director
absented Position Reason for not presenting the meeting Name of consignee
Wang Shengguo Director Business engagement Xiong Jianwei
1.3 The 3rd Quarterly Report is not audited by CPA.
1.4 Mr. Xiong Jianming, the Chairman, Mr. Lin Kebing, the Financial Principal, and Mr. Chen Yonggang, the Accounting
Manager hereby declares that: The financial statements carried in this quarterly report are of authentic and complete.
§2 Company Profile
2.1 Financial highlights
In RMB Yuan
2010.9.30 2009.12.31 Extent of Change (%)
Gross Assets (RMB) 1,946,272,504.19 1,482,814,012.11 31.26%
Owners’ equity attributable to the
shareholders of the listed company
(yuan)
997,297,165.22 623,295,593.57 60.00%
Capital shares (shares) 504,606,604.00 426,786,359.00 18.23%
Net asset per share attributable to the
shareholders of the listed company
(Yuan/share)
1.98 1.46 35.62%
July-Sept. 2010 Changed over the same
period of last year (%) Jan-Sept. 2010 Changed over the same
period of last year (%)
Turnover (yuan) 296,966,441.24 27.99% 720,346,203.98 19.66%
Net profit attributable to shareholders
of the listed company (yuan) 9,830,018.98 33.26% 43,438,600.40 15.98%
Net Cash flow generated by business
operation (RMB) - - -47,509,068.59 -584.12%
Net Cash flow per share generated by
business operation (yuan/share) - - -0.09 -570.75%
Basic earnings per share (Yuan/share) 0.02 0.00% 0.092 12.20%
Diluted earnings per share
(Yuan/share) 0.02 0.00% 0.092 12.20%
Weighted average net
income/asset ratio (%) 0.99% -0.25% 5.76% -0.65%
Weighted average net
income/asset ratio less non-recurring
gain/loss(%)
0.80% -0.23% 2.80% 0.10%China Fangda Group Co., Ltd. The 3rd Quarterly Report 2010 (Official Text)
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Non-recurring gain and loss items
Amount from beginning of
year to the end of report
term
Note
Gain/loss of non-current assets 10,727,318.70
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.
3,673,500.00
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
3,173,366.97
Gain/loss from change of fair value of investment property measured at fair value in follow-up
measurement 8,729,924.08
Other non-business income and expenditures other than the above -598,009.45
Influenced amount of minority shareholders’ equity -34,595.09
Influenced amount of income tax -3,320,559.15
Total 22,350,946.06 -
2.2 Total of shareholders and the top 10 holders of unconditional shares
In shares
Total shareholders at the end of the report period
(accounts) 63,677
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. 45,849,515 RMB common shares
Shenzhen Shilihe Investment Co., Ltd. 20,067,328 RMB common shares
Hong Kong Onforce International Co., Ltd. 8,500,000 Foreign shares placed in domestic
exchange
Cao Yifan 2,291,267 Foreign shares placed in domestic
exchange
China Industrial & Commercial Bank – Nuo’an
Stock Investment Fund 1,540,955 RMB common shares
Chen Lihong 1,536,777 Foreign shares placed in domestic
exchange
China Merchants Securities Hong Kong Ltd. 1,533,971 Foreign shares placed in domestic
exchange
Yu Baixiang 1,419,993 Foreign shares placed in domestic
exchange
Zhu Yicai 1,411,331 RMB common shares
GUOTAI JUNAN SECURITIES(HONGKONG)
LIMITED 1,159,247 Foreign shares placed in domestic
exchange
§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
1. For the rapid increasing of business, and the newly opened branches, the business turnover, receivable accounts, administrative
expenses, and sales expenses increased by 19%, 14%, 33%, and 30% respectively.China Fangda Group Co., Ltd. The 3rd Quarterly Report 2010 (Official Text)
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2. For the increasing of orders, the prepayment for materials has increased and caused 330% of increase in prepaid accounts.
3. On January 18, 2010, Fangda Aluminum Co. – one of the Company’s subsidiaries entered the Land Retrieving and Compensation
Agreement with Nanchang High-tech Industry Development Zone Administration Committee, on which the land of Aluminum Co. was
retrieved by the Administration Committee with RMB30.6043 million of compensation. This has caused 99% and 437% of increase on
other receivable and non-operational income.
4. In the report term, the construction of workshops of Shenyang Base has been completed, the semi-conductor production line in
Shenzhen has been moved to Shenyang and installation was started. This caused 372% of increase in construction-in-process.
5. In the report term, the Company use bank accepted notes to make payment to suppliers, which made 205% of increase on notes
payable.
6. Capitalizing of capital reserves and private issuing of 47.9452 million A shares caused 18% and 313% of increases on share capital
and capital reserves respectively.
3.2 Progress of significant events, their influence, countermeasures, and analysis
3.2.1 None-standard opinions
□applicable √ not applicable
3.2.2 Illegal providing of capital or guarantees to the holding shareholder or its related parties or external
parties
□applicable √ not applicable
3.2.3 Signing and execution of major business contracts
√ applicable □ not applicable
1. Contract of energy saving curtain wall for Hangzhou City Xinyu block 2, 3, 5, and 6 are amounted to RMB174.2864 million, and
has been basically completed.
2. Shenyhang Xingmo’er Shopping Mall was contract for RMB139.90 million, and is on schedule according to the contract.
3. Shenzhen Jiali Construction Plaza Phase II was contract for RMB105.08 million, and is on schedule according to the contract.
4. Shenzhen Metro Line 2 PSD system is contracted with RMB169.256 million. The installation has been completed, and is on
schedule according to the contract.
3.2.4 Misc.
√ applicable □ not applicable
(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.
3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
□applicable √ not applicableChina Fangda Group Co., Ltd. The 3rd Quarterly Report 2010 (Official Text)
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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.
3.6 Investment in derivate financial instruments
√ applicable □ not applicable
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.
3.6.1 Derivate financial instrument stock at end of report term
√ applicable □ not applicable
In RMB Yuan
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 11,279,750.00 0.00 -1,295,175.00 0.00%
Total 11,279,750.00 0.00 -1,295,175.00 0.00%
China Fangda Group Co., Ltd.
The Board of Directors
October 21, 2010
