2014 Interim Report Summary of China Fangda Group Co., Ltd.
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2014-40
China Fangda Group Co., Ltd.
2014 Interim Report Summary
1 Important Declaration
This is the summary abstracted from the complete version of Interim Report, which is published
synchronously on the internet (http://www.cninfo.com.cn) for details please refer to the complete version.
Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055、200055
Modified stock ID (if any) None
Stock Exchange Shenzhen Stock Exchange
Contacts and liaisons Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
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
2. Financial Highlight and Changes in Shareholders
(1) Financial highlights
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) 822,792,739.02 736,828,039.88 11.67%
Net profit attributable to shareholders of
40,769,958.24 39,361,593.42 3.58%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 39,669,548.38 37,591,750.20 5.53%
of non-recurring gain/loss (RMB)
Net cash flow generated by business
-268,552,729.61 1,089,862.59
operation (RMB)
Basic earnings per share (yuan/share) 0.05 0.05 0.00%
Diluted Earnings per share (yuan/share) 0.05 0.05 0.00%
Weighted average net income/asset ratio 3.49% 3.54% -0.05%
End of the report period End of last year Year-on-year change
Total asset (RMB) 3,125,590,102.60 2,599,557,542.57 20.24%
Net profit attributable to the shareholders
1,178,738,091.94 1,160,639,730.85 1.56%
of the listed company (RMB)
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2014 Interim Report Summary of China Fangda Group Co., Ltd.
(2) Top 10 Shareholders of Common Shares
Number of shareholders of
common shares at the end of the 46,291
report period
Top 10 Shareholders of Common Shares
Properties of Number of Pledging or freezing
Shareholder Shareholding Conditional shares
shareholder shares Share status Amount
Shenzhen
Banglin Domestic
Technologies non-state legal 9.09% 68,774,273 Pledged 32,510,000
Development person
Co., Ltd.
Shengjiu Foreign legal
4.75% 35,929,581
Investment Ltd. person
Domestic
Huang Jupei 4.24% 32,068,920
natural person
Domestic
Zhou Shijian 2.79% 21,123,481
natural person
Shenzhen
Domestic
Shilihe
non-state legal 2.36% 17,860,992
Investment Co.,
person
Ltd.
Domestic
Wang Shaolin 2.28% 17,272,486
natural person
Bank of
Communication
– Huaan
Others 1.72% 13,028,408
Chuangxin
Securities
Investment Fund
Domestic
Jiang Jing 1.41% 10,635,440
natural person
Domestic
Zhao Bing 1.38% 10,420,126
natural person
Domestic
Lou Chenglin 0.73% 5,500,000
natural person
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Notes to top ten shareholder Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development
relationship or "action in concert" 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.
Huang Jupei holds 32,063,920 shares of the Company through GF Securities customer credit
transaction guarantee securities account; Zhou Shijian holds 21,123,481 shares of the Company
Statement of shareholders
through GF Securities customer credit transaction guarantee securities account, Zhao Bing holds
participating in margin trade (if
900,000 shares of the Company through Everbright Securities customer credit transaction
any)
guarantee securities account; Lou Chenglin holds 5,500,000 shares of the Company through
China Investment Securities customer credit transaction guarantee securities account.
(3) Top 10 Shareholders of Preferred Shares
□ Applicable √ Inapplicable
No shareholder of preferred shares in the report period
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2014 Interim Report Summary of China Fangda Group Co., Ltd.
(4) Changes in controlling shareholder or actual controller
Changes in the controlling shareholder in the reporting period
□ 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
3. Management Discussion and Analysis
The Chinese economy remained mixed and largely uncertain in H1 2014. The market remained weak and
fragile. To survive the weak economy and increasingly fierce competition, the Company has continued improving
the brand equity, expertise and services, stabilizing the growth. In the report period, the Company recorded a sales
income of RMB822,792,700, up 11.67% year on year. The net profit attributed to owners of the parent reached
RMB40,770,000, up 3.58% year on year. The revenue from main businesses continued growing. By the end of the
report period, the Company had secured new orders worth RMB1.371 billion with undelivered orders worth
RMB2.171 billion, which 263.86% of the operating revenue in H1 2014, paving the way for the Company to
complete the whole year’s sales target.
1、 Curtain wall system and material industry continued growing rapidly
Currently, the curtain wall system and material industry remains a main source of income and profit for the
Company. The brand equity of the Company’s curtain wall systems and materials has been further improved,
boosting the sales. During the report period, the Company won bids in a series of large-sized energy-saving
low-carbon high-end curtain wall and material products such as the Shenzhen Excellence Meilin Center Plaza,
Shenzhen Hualin Business Center, Alibaba Chengdu West Base, Chongqing Tianhe International Center, Wuhan
LianfaJiudu International, Haikou Meilan Airport West Corridor, Suzhou Center Plaza, and Kunming Qicaiyun
Nanhua City. By the end of the report period, the Company has secured new orders for curtain wall systems and
materials worth RMB1.296 billion, adding the value of undelivered orders to RMB1.578 billion. In H1 2014, the
Company managed to continue production to fulfill orders despite the rainy weather. In the report period, the
curtain wall system and material business generated a sales income of RMB757,874,900, up 12.89% year on year.
The Company has adhered to the business philosophy of integrity, trust, cooperation and continuous
improvement and seeks to meet customers’ needs thanks to our customer-centered value, strong innovation and
high engineering quality, receiving wide recognition among customers. In the report period, the Company won the
only outstanding curtain wall supplier prize from Wanda Group as the first curtain wall supplier of Wanda Group.
2. Multiple preliminary railway traffic equipment orders enter design, production and engineering
stages
2. Multiple preliminary railway traffic equipment orders enter design, production and engineering
stagesDuring the report period, screen doors and safety safes for Shenzhen metro 3rd phase No.9 and 11 lines,
Xi’an metro No.3 line, Wuhan metro No.4 line 2nd phase, Nanchang metro No.1 line, Fuzhou metro No.1 line,
Wuhan-Xiaogan railway, Singapore metro Tuas expansion line have been designed, produced and installed as
scheduled. During the report period, the Company has become a metro screen door supplier for well-known
international motor producers including Siemens, Hitachi and Alston, propelling the overseas expansion strategy.
During the report period, thanks to high reliability and stability, the Company’s screen door systems made the
record the zero failure in the one-million attempt service life test of the Singapore Tuas expansion line and
Nanchang No.1 line. The two projects have completed the one-million attempt service life test and acceptance
procedure and have been put into massive product. By the end of the report period, undelivered orders for screen
doors are worth RMB593 million.
3. Fangda Town renovation project is performed as scheduled
The Fangda Town renovation project (“the Project”) is constructed and invested by the Company’s
wholly-owned subsidiary Shenzhen Fangda Property Development Co., Ltd. With an investment of about
RMB2.5 billion, the project will be completed at the end of 2016. The project will serve to house hi-tech industry
and hi-end emerging industry R&D headquarters and a landmark complex providing R&D and business facilities
and integrating ecological offices, shopping malls and entertainment. In additional industry buildings for domestic
use, the project comprises about 100,000 m2 of industry buildings for sales, 20,000 m2 of business property and
70,000 m2 of industry buildings for lease. Since the commencement on May 18, the project has been performed as
scheduled, currently, the project is in the foundation pit construction stage. The project will add the Company’s
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2014 Interim Report Summary of China Fangda Group Co., Ltd.
net and total assets, create substantial cash flows for the Company and yield a stable rental income to support the
future development of the Company and accelerate growth of the Company’s other business.
4. Developing solar energy PV and LED new resource business via the new energy company
In the report period, the Company invested RMB100 million from the working capital to set up Shenzhen
Fangda New Energy Co., Ltd. to develop energy-saving technologies such as solar energy PV application, PV
construction and LED industry. It will extend the Company’s existing energy-saving business and coincides with
the development trend of the energy-saving industry.
Currently, the Company is proceeding with the development of the new energy industry as scheduled. On
July 18, the Company entered into an agreement with natural person Luo Huichi to acquire 60% stake in the
Guangdong Fangda SOZN Lighting Co., Ltd (“New Company”) set up with the fixed assets, intangible assets,
sales networks and teams of three LED lighting companies controlled by Luo. The investment does not exceed
RMB48 million in cash. The payment includes conditional stock transfer to Luo and conditional investment to the
New Company. The New Company will generate a sales income of RMB150 million and a net profit of RMB3
million between July and December 2014, and a sales income of RMB600 million and a net profit of RMB36
million in 2015, a sales income of RMB1 billion and a net profit of RMB60 million in 2016. On July 22, the
Company signed the strategic cooperation framework agreement with BOC Shenzhen branch (“Shenzhen BOC”).
Under the agreement, Shenzhen BOC will provide credit facilities of no more than RMB5 billion for the Company,
its subsidiaries and partners in separate loans and multi-bank loans, including without limitation RMB loans,
factoring, acceptance draft, discount, letters of guarantee, credit and other forms of financing and credit support to
facilitate the development of PV plants and PV construction. On August 13, the Company entered into the new
energy PV project cooperation framework agreement with Information Industry Electronics 11th Design Institute
Sci & Tech Engineering Co., Ltd. (“11th Sic & Tech”). The Company will make investment to build and operate
PV plants. 11th Sci & Tech will provide project resources for the construction of PV plants. 11th Sci & Tech will
provide about 500MW of resource for the Company by the end of 2015, 2.5GW by 2020. 11th Sci and Tech will
provide a full range of technical, designing and contracting services for the Company.
The Company will develop the LED, PV power plant and PV construction businesses rapidly through
acquiring the LED company, and signing strategic cooperation framework agreements with Shenzhen BOC and
11th Sci & Technical. The strategy will generate a stable income for the Company and have profound significance
in the future income and profit structure of the Company. Accelerating the development of new energy LED and
PV businesses will create a profit point for the Company, restructure the Company’s business structure, boost the
Company’s long-term growth, and create substantial returns for shareholders.
5. Introducing talents and build the corporate culture
As orders increase rapidly over the past few year and five industry bases are put into operation, the Company
has further improved the management matrix, optimize the business process, aggressively introduced high-quality
and diligent management and technical professional to build a modern management led by engineers, technicians,
comprehensive management executives and technical sales representatives. The Company has paid great efforts to
building a positive corporate and harmonious employment relationship by holding the Women’s Day health care
seminar, Youngers’ Day speech competition, birthday parties for employees on a monthly basis, social clubs for
single employees, and various outdoor training programs.
6. Others
In the report period, the trademark FANGDA was recognized as a nationwide famous trademark by the SAIC,
which will help the Company protect the intelligent property right, marking a great achievement for the
Company’s brand building strategy and showing the Company’s competitiveness. The Company was also chosen
by Sina Finance as the most promising listed company and received the title of Shenzhen Famous Brand for the
12th consecutive year.
The Company’s wholly-owned subsidiary Shenzhen Fangda Jianke Group Co., Ltd. received the Shenzhen
High-Quality Engineering Company and the 1994-2014 Sustainable Outstanding Enterprise from China
Construction Metal Structure Association; Shenzhen Kerry Plaza and Shenzhen Gulf Stadium curtain wall
projects undertaken by the Company won the 2013 Guangdong Gold Construction Project prize and 2013
Guangdong High-Quality Construction Engineering prize. Shenzhen Kerry Plaza also won the 2013 Shenzhen
Golden Bull Engineering prize. Dalian Wanda Mansion curtain wall project won the 2013 Liaoning Construction
Decoration prize and 2013 Dalian Construction Decoration prize.
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2014 Interim Report Summary of China Fangda Group Co., Ltd.
4. Related issues involved the financial report
(1) Statement of changes to accounting policies, estimates and audit methods compared with the financial
report of the previous year
□ Applicable √ Inapplicable
No change in accounting policies, assumptions and auditing methods in the report period.
(2) Statement of retrospective restatement of major accounting errors in the report period
□ Applicable √ Inapplicable
No retrospective restatement of major accounting errors in the report period
(3) Statement of change in the financial statement consolidation scope compared with the previous financial
report
□ Applicable √ Inapplicable
No change in the scope of consolidate statements in the report period
(4) Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the current report
period
□ Applicable √ Inapplicable
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