China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Official Text)
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2011-16
China Fangda Group Co., Ltd.
The 1st Quarterly Report 2011 (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
Position Reason for not presenting the meeting Name of consignee
absented
Wang Shengguo Director Business engagement Xiong Jianwei
1.3 The financial statements carried in this report are not audited.
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
Ended this report Changed by
Ended previous year
term (%)
Gross Assets (RMB) 1,925,021,779.96 1,991,161,158.84 -3.32%
Owners’ equity attributable to the shareholders of the listed company
1,027,281,620.49 1,009,990,739.07 1.71%
(yuan)
Capital shares (shares) 504,606,604.00 504,606,604.00 0.00%
Net asset per share attributable to the shareholders of the listed company
2.04 2.00 2.00%
(Yuan/share)
Same period last Changed by
This report term
year (%)
Turnover (yuan) 261,994,647.36 192,382,554.04 36.18%
Net profit attributable to shareholders of the listed company (yuan) 16,838,681.42 11,419,167.15 47.46%
Net Cash flow generated by business operation (RMB) -92,793,091.30 -49,496,550.76
Net Cash flow per share generated by business operation (yuan/share) -0.18 -0.10
Basic earnings per share (Yuan/share) 0.033 0.025 32.00%
Diluted earnings per share (Yuan/share) 0.033 0.025 32.00%
Weighted average net
1.65% 1.82% -0.17%
income/asset ratio (%)
Weighted average net
1.40% 1.05% 0.35%
income/asset ratio less non-recurring gain/loss(%)
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Official Text)
Non-recurring gain and loss items
√ applicable □ not applicable
In RMB Yuan
Note (if
Non-recurring gain and loss items Amount
applicable)
Gain/loss of non-current assets -13,590.84
Gain/loss from change of fair value of investment property measured at fair value in follow-up
3,124,240.16
measurement
Other non-business income and expenditures other than the above 343,448.85
Influenced amount of income tax -825,908.10
Influenced amount of minority shareholders’ equity -10.63
Total 2,628,179.44 -
2.2 Total of shareholders and the top 10 holders of unconditional shares
in shares
Total shareholders at the end of the report period
64,333
(accounts)
Top ten holders of the shares without subscription limitation
Amount of unconditional shares held at the
Full name of shareholder Categories
end of report term
Shenzhen Banglin Technologies Development Co.,
45,849,515 RMB common shares
Ltd.
Shenzhen Shilihe Investment Co., Ltd. 11,907,328 RMB common shares
Foreign shares placed in
Onforce International Ltd. 8,200,000
domestic exchange
Foreign shares placed in
Cao Yifan 2,313,910
domestic exchange
Foreign shares placed in
Chen Lihong 1,536,777
domestic exchange
Zhongrong International Trust Ltd. – Rongxin
1,287,773 RMB common shares
Trust Contract No.75
Zhongrong International Trust Co., Ltd. – Huian
1,227,098 RMB common shares
No.6
Foreign shares placed in
Yu Baixiang 1,130,000
domestic exchange
Foreign shares placed in
Li Yitian 1,038,900
domestic exchange
Foreign shares placed in
Lou Yuhong 990,668
domestic exchange
§3 Significant Events
3.1 Details and causations of major change in major accounting subjects and financial indices
√ applicable □ not applicable
1. Prepaid account increased by 38.98% over the beginning of year, which was caused by increasing of newly started projects;
2. Notes receivable decreased by 79.87%, which was caused by expiring of some commercial drafts;
3. Wage payable decreased by 30.47%, which was caused by distributing of annual bonus for year 2010;
4. The Company’s business was expanding, therefore the business turnover and cost have increased by 36.18% and 33.80%
respectively.
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Official Text)
5. Increase of labor costs and fixed expenses increased to establish new branch offices had caused 38.92% of increase with
administration expenses.
6. Increasing of bad debt provision has increased the asset impairment loss by 343.36%.
7. Income tax has increased by 116.71%, which was caused by increasing of deferred income tax due to fluctuation of the fair value of
investment property.
8. Operational cash flow of the report term was RMB-92.79 million, which was caused by increasing of business volume and prepaid
account for materials. Increase of receivable account was because some of the project accounts are not due yet.
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
I. Shenyang Xinmo’er Shopping Mall curtain wall project is proceeding as scheduled by the contract;
II. Shenzhen Jiali Construction Plaza Phase II curtain wall project is proceeding as scheduled by the contract;
III. China ASEAN (Liuzhou) Industrial Product Trade Center curtain wall project is proceeding as scheduled by the contract;
IV. Sanya Phoenix Island International Resort apartment 1, 2, 3, and 4 curtain wall project is proceeding as scheduled by the
contract;
V. Shenzhen Metro Line 1 screen door and safe door system, Shenzhen Metro Line 2 east extension screen door system, and
Shenzhen Metro Line 4 safe door system are in testing stage and will be completed in June 2011.
3.2.4 Misc.
√ applicable □ not applicable
I. The Company neither provided capital to the holding shareholder or other related parties nor provided any
guarantee to external parties;
II. No shareholder holding over 30% of shares of the Company, therefore no shareholder with over 30% shares
proposed or practiced share-increasing plan.
III. No cash dividend was distributed in the report term;
IV. No investment on securities or derivate instruments conducted by the Company;
V. In the report term, there isn’t any particular sales, project contracting or service providing contract accounted
for over 50% of the main business turnover as audited, or with absolute amount over RMB1 billion.
VI. The Company save the proceeds from share placing in special bank accounts in China Construction Bank
Shenzhen OCT Branch, and CITIC Shenzhen Jinshan Branch. The Triple-party Supervising Agreement over
Proceeds from Private Placing of A Shares was engaged with the two banks and Zhongshan Securities Co., Ltd.
(Zhongshan Securities) respectively on July 13, 2010. All of the investment projects financed by this private
placing of shares are implemented by the fully-owned subsidiaries of the Company. The Triple-party Supervising
Agreement over Proceeds from Private Placing of A Shares was engaged by Shenzhen Fangda Decoration
Engineering Co., Ltd. (Fangda Decoration) and Shenzhen Fangda Automatic System Co., Ltd. (Fangda Automatic)
(both are the fully-owned subsidiaries of the Company) with China Construction Bank OCT Branch and
Zhongshan Securities Co., Ltd. (Zhongshan Securities, the Sponsor) respectively on September 21, 2010. The
Agreement was regarding the Energy-saving Curtain Wall Production Expanding Project and the PSD Production
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Official Text)
Expanding Project. According to the agreement, the net amount of RMB336,586,871.73 with interest of
RMB786,667.75 (totally RMB337,373,539.48) were transferred to the special accounts of Fangda Decoration and
Fangda Automatic by RMB210,786,667.75 and RMB126,586,871.73 respectively. Upon completion of the
transmission, the special accounts in China Construction Bank OCT Branch and CITIC Jinshan Branch were
balanced zero, and were canceled on February 21, 2011 and February 23, 2011 respectively.
VII. Statement of internal control operation in the 1st quarter of 2011
According to the Enterprise Internal Control Criteria issued jointly by the five national departments, and the
Notice on Implementing of Internal Control Criteria in PLCs located in Shenzhen, the Company has planned and
implemented a number of preparation works in the 1st quarter of 2011.
1. Executing of works
(1) The Company has established a enterprise administration standard team (the “Administration Steam”) led by
the Chairman of Board with members from the executives of the Company and general managers of subsidiaries.
An office was equipped to handle relative daily works.
(2) As for general planning, the Administration Team has produced a plan with five stages to ensure smooth
operation of related works: stage 1, preparation; stage 2, situation analyzing; stage 3, producing of improving plan;
stage 4, internal control operation improving; stage 5, testing operation of internal control system.
(3) In aspect of employee training, the Company has released the Basic Rules of Internal Control System, and
organized training programs for related employees. Three of the executives were sent to participate the Internal
Control Training Course of PLCs in Shenzhen organized by China Securities Regulatory Commission.
(4) The Company revised the internal regulations and business flows of the Company and provided a good
foundation for the further works.
2. Progress of works comparing with the schedules in the plan
According to the 5-stage plan, the first stage shall be basically completed in the first quarter. As of March 31, all
of the scheduled works had been completed successfully.
3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller
Commitment made by the PLC, its directors, supervisors, executives, and shareholders with 5% or over shares of the Company, and
its substantial dominator in the report term or carried over to the report term:
□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
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China Fangda Group Co., Ltd. The 1st Quarterly Report 2011 (Official Text)
3.5.2 Reception of investigations, communications, or interviews
Main content involved and
Time/date Place Way Visitors
material provided
March 10, The Field Orient Securities Ltd., Guangzhou Pearl River Asset Business operation and future
2011 Company research Management Ltd. development.
March 18, The Field Shenyin Wanguo Securities, Hualin Securities, Guangdong Business operation and future
2011 Company research Andexin Development Ltd. development.
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
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