Interim Report 2017 Summary of China Fangda Group Co., Ltd.
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2017-28
China Fangda Group Co., Ltd. Interim Report 2017
Summary
I. Important Declaration
The interim report summary is abstract from the interim report. Investors should read the annual report from the specified media to
fully understand the Company’s business achievements, financial status and future plans.
Objection from directors, supervisors and senior management
□ Applicable √ Inapplicable
Directors other than the following ones have attended the Board meeting to review the interim report.
Name of absent director Position of absent director Reason Name of proxy
Guo Jinlong Independent director Business engagement Deng Lei
Non-standard auditing opinion
□ Applicable √ Inapplicable
Profit distribution pre-plan or capitalization plan in the period reviewed by the Board of Directors
□ Applicable √ Inapplicable
The Company will distribute no cash dividends or bonus shares and has no reserve capitalization plan.
The preference share profit distribution pre-plan approved by the Board of Directors
□ Applicable √ Inapplicable
II. General Information
1. Company Profile
Stock ID Fangda Group, Fangda B Stock code 000055、200055
Stock Exchange Shenzhen Stock Exchange
Contacts and liaisons Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
20F, Fangda Building, Kejinan 12th Avenue, 20F, Fangda Building, Kejinan 12th Avenue,
Office address
Hi-Tech Zone, Shenzhen Hi-Tech Zone, Shenzhen
Tel. 86(755) 26788571 ext. 6622 86(755) 26788571 ext. 6622
Email zqb@fangda.com zqb@fangda.com
2. Financial Highlight
Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes √ No
This report period Same period last year Year-on-year change (%)
Turnover (yuan) 1,399,710,941.29 1,009,456,049.75 38.66%
Net profit attributable to shareholders of
228,003,319.43 53,156,405.36 328.93%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 218,498,976.52 44,265,089.57 393.61%
of non-recurring gain/loss (RMB)
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Interim Report 2017 Summary of China Fangda Group Co., Ltd.
Net cash flow generated by business
215,263,207.38 298,469,343.92 -27.88%
operation (RMB)
Basic earnings per share (yuan/share) 0.1926 0.05 285.20%
Diluted Earnings per share (yuan/share) 0.1926 0.05 285.20%
Weighted average net income/asset ratio 9.37% 3.99% 5.38%
End of the report period End of last year Year-on-year change
Total asset (RMB) 6,295,862,043.86 6,787,051,278.08 -7.24%
Net profit attributable to the shareholders
2,314,300,456.96 2,364,262,560.28 -2.11%
of the listed company (RMB)
3. Shareholders and shareholding
In share
Number of shareholders of
Number of shareholders of
preferred stocks of which
common shares at the end of the 47,307 0
voting rights recovered in the
report period
report period (if any)
Top 10 Shareholders
Nature of Shareholding Number of Pledging or freezing
Shareholder Conditional shares
shareholder percentage shares Share status Amount
Shenzhen
Banglin Domestic
Technologies non-state legal 8.72% 103,161,409 Pledged 24,370,000
Development person
Co., Ltd.
Shengjiu Foreign legal
7.36% 87,165,339
Investment Ltd. person
GUOTAI
JUNAN
Foreign legal
SECURITIES( 4.20% 49,745,300
person
HONGKONG)
LIMITED
Domestic
Huang Jupei 2.83% 33,501,500
natural person
Gong Qing
Cheng Shi Li
He Investment Domestic
Management non-state legal 2.26% 26,791,488
Partnership person
Enterprise
(limited partner)
Shenwan
Hongyuan
Foreign legal
Securities 1.73% 20,448,473
person
(Hong Kong)
Co., Ltd.
Domestic
Zhou Shijian 1.69% 20,000,000
natural person
China Resource
SZITIC Trust –
China Resource
Others 1.23% 14,559,204
Trust No.13
Collective Trust
Program
Yunnan
International Others 1.12% 13,229,635
Trust CO., Ltd.
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Interim Report 2017 Summary of China Fangda Group Co., Ltd.
– Juxin No.5
Collective Fund
Trust Program
First Capital
Securities –
Guosen
Securities –
Mutual Win
Dayan
Quantization Others 0.82% 9,657,534 9,657,534
Private
Placement
Collective
Assets
Management
Program
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development
Notes to top ten shareholder
Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership Enterprise are
relationship or "action in concert"
related parties. The Company is not notified of other action-in-concert or related parties among
the other holders of current shares.
Statement of shareholders Huang Jupei holds 33,500,000 shares of the Company through the client credit trade securities
participating in margin trade (if account of GF Securities; Zhou Shijian holds 20,000,000 shares of the Company through the
any) client credit trade securities account of GF Securities;
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
5. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of
the report period
□ Applicable √ Inapplicable
No shareholder of preferred shares in the report period
6. Bonds
Bonds publicly issued and listed in a securities exchange, immature or not fully paid by the approval date of the annual report
No
III. Operation Discussion and Analysis
1. Business status in the report period
Whether the Company needs to comply with disclosure requirements of special industries
Yes
Property development and decoration industries
In the first half of 2017, the Company has stuck to the annual operation target and the management theme of innovation and has
taken a series internal evolution, organization optimization and process streamlining measures. The operation target for the first half
of 2017 has been basically fulfilled. During the report period, the Company recorded operating revenue of RMB1,399,710,900, up
38.66% year on year. The net profit attributable to owners of the parent company is RMB228,003,300, up 328.93% year on year. The
net profit after deducting accidental gain/loss is RMB218,499,000, up 393.61% year on year. The cash flow from main business
reached RMB215,263,200. The order reserve is worth RMB4,016,000,000 (including orders that has won without signing) at the end
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Interim Report 2017 Summary of China Fangda Group Co., Ltd.
of the report period.
1. High-end curtain wall system and material business
In the first half of 2017, the Company maintained its outstanding performance in the high-end energy-saving curtain wall
market and won bids in a series of high-end curtain wall engineering and aluminum plate projects including the Shenzhen Vanke
Coast Land Building, Shenzhen Vanke Yuncheng, Shenzhen Jinlitong Financial Center, Guangzhou Kaidaer International Traffic
Center, Hangzhou Huanglong International Center, Yunnan Qujing Economic Development Zone Vanda Plaza. In the report period,
the Company has taken a series of measures including engineering site management, design and engineering optimization, and
improved engineering efficiency in projects including Shenzhen Shum Yip Uptown south zone, Guangzhou Baosteel Building,
Wenzhou Qingshan Holding Group Headquarters Building, Chengdu Lindi Global Center, Shanghai CapitalLand Tianmu West Road
and Suzhou CapitalLand Center. Currently, the Company is an industry leader in terms of the design, production and installation of
high-end shaped curtain wall systems. By the end of the report period, the Company has high-end curtain wall and material orders
worth RMB2.784 billion (including orders that has won without signing), which is 332% of the sales income from the high-end
curtain wall system and material business in the first half of 2017, paving the way for the Company to continuously developing the
business.
In the report period, the Beijing Yanxihu Lake International Convention and Exhibition Center undertaken by the Company
served as the main venue for the 2017 “the Belt and Road” cooperation summit and attract attention around the world, reflecting
Fangda’s outstanding expertise as a supplier of high-end curtain wall systems. The curtain wall engineering projects of Shenzhen
Excellence Meilin Center Plaza south zone and Shenzhen Alibaba Building won the China Building High-quality Curtain Wall
Engineering Prize and Guangdong Outstanding Building Decoration Engineering Prize respectively.
Since curtain walls have specific service life and need to be examined and serviced after being used for a specific number of
years. As the industry has developed for more than 2 decades, more and more curtain walls have entered the maintenance and service
stage. In the report period, the Company has taken advantage of its technological lead to explore into the curtain wall examination
and maintenance business through standard preparation, industry promotion and pilot projects. Currently, the Company has
undertaken examination and service businesses for Shenzhen Bao’an Airport and Shenzhen News Building. In the future, the
Company will increase investment in the examination and maintenance business to upgrade the business competitiveness and
increase driving force for its business development.
2. Rail transport equipment business
In the first half of 2017, the Company won screen door system orders in projects including the Shenzhen subway line No.6,
No.10, No.20, Wuhan subway No.11 east extension line, No.2 south extension line, No.7 south extension line, and Zhengzhou
subway line No.5 and screen door service orders for Shenzhen subway line No.1, No.2 and No.5, and Nanchang subway line No.2,
ranking No.1 in the Chinese screen door market in terms of the order volume in the first half of 2017, further consolidating the
Company’s dominating market position in the business. By the end of the report period, the Company has rail transport equipment
order worth RMB1.232 billion (including orders that has won without signing), which is 797% of the operating income from this
business in the first half.
To further consolidate the Company’s lead in this business and expand the industry chain, the Company and Shenzhen BYD
Supply Chain Management Co., Ltd have signed the Cloud Rai Station Screen Door Purchase Contract as of the disclosure date of
this report. According the contract, the Company will provide screen door products and services for BYD Cloud Rail Guang’an Line,
Shantou Line and Xi’an Line. Cloud Rail is one of the main businesses of BYD. The cooperation between the Company and BYD
will give a strong boost to the development of this business.
As increasing investment is made in urban subway, the screen door maintenance service market is growing rapidly, profiting
leaders of the screen door industry. The income from this business in the first half grew 85% year-on-year. The business is likely to
continue growing and take a greater share among the Company's businesses continuously.
As the government continues implementing the “Belt and Road” strategy and "13th Five-Year Plan”, the construction of rail
transport in Chinese cities will explode. Currently, the Company’s screen door systems have been used in 27 cities around the world,
most of which are used in nations and cities along the “Belt and Road”. As the world’s largest screen door system supplier, the
Company is likely to maintain the continuous growth in this industry over the next few years.
3. New energy industry
Since the PV power generation policy has changed radically, the Company made promptly adjustment in the report period to
terminate PV power plant projects that are to be funded by raised capital but have been not started. The residual raised fund will be
used to replenish the working capital permanently (see the Notice on Terminating Part of the Projects Funded by Raised Capital and
Using the Residual Fund to Replenish the Working Capital disclosed on March 21, 2017). Currently, three PV power plants have
been connected to the power grid with a power generation capacity of about 19.5MWp. The projects will bring long-term and stable
income and profit for the Company. In the report period, the PV power plants constructed by the Company have met the production
efficiency expectation.
4. Real estate
Currently, the Company is running two real estate projects: Shenzhen Fangda Town project and Nanchang Phoenix Land
project. By the end of the report period, the total sales area was 62,500 m2, of which 61,100 m2 area has recognized income.
Meanwhile, the Company has actively initiated the introduction of businesses, which will create stable rent income. The Nanchang
Phoenix Land project is in the preliminary planning and construction preparation stage. As of the disclosure date of the reporting
period, the Company and Bangshen Electronics (Shenzhen) Co., Ltd. have signed the cooperation framework agreement for the
Fangda Bangshen Industry Park renovation project. The project is located in Furong, Shenzhen and covers 20,714.9m2. Currently, the
land is used as industrial plant and will be renovated as an M0 new-type industry project. The Company will continue exploring real
estate projects and developing the real estate business to bring profits continuously.
5. Awards
In the report period, the Company won a series of titles and prizes including the Guangdong Trustworthy Enterprise, Shenzhen
Outstanding Entity, Shenzhen Outstanding Quality Prize, Shenzhen Intellectual Property Right Gold Prize and Best Innovative
Tradename Prize. The tradename “Fangda” won the title of Shenzhen Well-known Tradename for the fourth time.
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Interim Report 2017 Summary of China Fangda Group Co., Ltd.
In the report period, Fangda Jianke won a series of honors and prizes including the Outstanding Supplier, National
High-Quality Project Prize, China High-Quality Curtain Wall Project Prize, Guangdong Outstanding Building Decoration Project
Prize, My Favorite Curtain Wall Project Prize and Shenzhen Building Decoration Engineering Safety Prize.
In the report period, Fangda Automation won the title of Wuhan Rail Transport No.6 Line Phase I Outstanding Constructor and
the title of Outstanding Partner from Nanjing and Tianjin subway operation companies.
In the report period, Fangda Property was given the titles of Shenzhen High Potential Real Estate Developer and Shenzhen Top-100
Real Estate Developers.
2. Related issues involved the financial report
(1) Statement of changes to accounting policies, estimates and audit methods compared with the financial
report of the report period
□ 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
Shenzhen Hongjun Investment Co., Ltd. and Fangda Australia Co., Ltd. were newly established in this period. The two companies
are consolidated in this period/
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
August 1, 2017
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