Interim Report 2018 Summary of China Fangda Group Co., Ltd.
Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2018-34
China Fangda Group Co., Ltd. Interim Report 2018
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.
No objection from directors, supervisors and senior management
□ Applicable √ Inapplicable
Statement
All the Directors have attended the meeting of the board meeting at which this report was examined.
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
Modified stock ID (if any) None
Contacts and liaisons Secretary of the Board Representative of Stock Affairs
Name Zhou Zhigang Guo Linchen
20F, Fangda Technology Building, Kejinan 20F, Fangda Technology Building, Kejinan
Office address 12th Avenue, High-tech Zone, Hi-tech Park 12th Avenue, High-tech Zone, Hi-tech Park
South Zone, Shenzhen, PR China. South Zone, Shenzhen, PR China.
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) 1,442,050,896.53 1,399,710,941.29 3.02%
Net profit attributable to shareholders of
230,131,663.19 228,003,319.43 0.93%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 209,705,118.34 218,498,976.52 -4.02%
of non-recurring gain/loss (RMB)
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Interim Report 2018 Summary of China Fangda Group Co., Ltd.
Net cash flow generated by business
-31,426,267.64 215,263,207.38 -114.60%
operation (RMB)
Basic earnings per share (yuan/share) 0.1944 0.1926 0.93%
Diluted Earnings per share (yuan/share) 0.1944 0.1926 0.93%
Weighted average net income/asset ratio 6.99% 9.37% -2.38%
End of the report period End of last year Year-on-year change
Total asset (RMB) 7,892,969,369.92 7,625,422,688.63 3.51%
Net profit attributable to the shareholders
3,289,644,771.10 3,238,939,202.18 1.57%
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 67,440 0
voting rights recovered in the
report period
report period
Top 10 Shareholders
Nature of Shareholding Number of Conditional Pledging or freezing
Shareholder
shareholder percentage shares shares Share status Amount
Shenzhen Banglin Domestic
Technologies Development non-state legal 8.72% 103,161,409 0 Pledged 31,540,000
Co., Ltd. person
Foreign legal
Shengjiu Investment Ltd. 7.76% 91,820,182 0
person
GUOTAI JUNAN
Foreign legal
SECURITIES(HONGKONG) 3.39% 40,168,375 0
person
LIMITED
Gong Qing Cheng Shi Li He
Domestic
Investment Management
non-state legal 2.26% 26,791,488 0
Partnership Enterprise
person
(limited partner)
CITIC Securities Brokerage Foreign legal
2.20% 26,034,425 0
(Hong Kong) Co., Ltd. person
Shenwan Hongyuan Securities Foreign legal
1.58% 18,737,379 0
(Hong Kong) Co., Ltd. person
China Resource SZITIC Trust
– China Resource Trust No.13 Others 1.30% 15,383,404 0
Collective Trust Program
Yunnan International Trust
CO., Ltd. – Juxin No.5
Others 1.12% 13,229,635 0
Collective Fund Trust
Program
Yunnan International Trust
CO., Ltd. – Yunxia No.3
Others 0.73% 8,635,314 0
Collective Fund Trust
Program
VANGUARD EMERGING
Foreign legal
MARKETS STOCK INDEX 0.67% 7,946,483 0
person
FUND
Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd.
and Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen
Notes to top ten shareholder relationship or Banglin Technology Development Co., Ltd. and Gong Qing Cheng Shi Li He
"action in concert" Investment Management Partnership Enterprise are related parties. The
Company is not notified of other action-in-concert or related parties among the
other holders of current shares.
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Interim Report 2018 Summary of China Fangda Group Co., Ltd.
Statement of shareholders participating in margin
None
trade (if any)
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
Decoration
In the first half of 2018, the country has continued to decrease its leverage and reinforce the environmental protection policy.
The influence of Sino-US trade friction continued to deepen and the price fluctuations of major raw materials increased. The
Company overcame many unfavorable factors and maintained a good development trend. During the reporting period, the Company
achieved operating income of RMB1,442,500,900, a year-on-year increase of 3.02% and the net profit attributable to owners of the
parent company was RMB231,131,700, an increase of 0.93%. As of the end of the reporting period, the company had a reserve of
4.476 billion yuan (excluding real estate sales).
1. High-end curtain wall system and material business
In the first half of the year the company took advantage of its location in the core area of Dawan District of Guangdong Hong
Kong and Macao and continued to use Guangdong Hong Kong and Macau Dawan District as the main area for market expansion.
The market development has achieved remarkable results and the number of new orders and quality has improved significantly.In the
first half of the year, it signed the Shenzhen International Convention and Exhibition Center, Shenzhen Qianhai Hengchang Building,
Shenzhen Hualian City Business Center, Shenzhen Longguang Jiuzuan, Shenzhen Hongrongyuan Yicheng Center Garden, Zhuhai
Youte Square, Zhongshan Jiangbolong Science and Technology Park, Shanghai Pudong Shipyard Phase II, Nanchang Business
Alliance Center, Hefei Vanke Forest Park, Hangzhou Alibaba Xixi Park Phase IV, Wuhan Rongchuang Center Phase III, Suzhou
Huawei R&D Center and many other high-end curtain wall and materials projects totaling RMB1.232 billion. The year-on-year
growth was 9.47%. Among them, the orders in the Guangdong Hong Kong and Macao Dawan District amount to RMB905
million.The Company has abundant orders busy construction and sales of curtain wall system and material industry. Shenzhen Vanke
Yuncheng Project, Shenzhen Bay Innovation and Technology Center Project, Guangzhou Kaidal Hub International Plaza Tower,
Zhuhai Hengqin Star Art Wenchuang, Wuxi Wanda Mao, Hangzhou Huanglong Vanke Center and other projects are progressing
smoothly. In the first half of the year, the Company's curtain wall system and materials industry achieved operating income of
RMB813,932,200 with a year-on-year increase of 10.40%. The final order reserve reached RMB 310,292,700, which was 381.23%
of the curtain wall system and material industry operating income in the first half of the year, paving the way for the continuous
development of the Company's high-end curtain wall and material business.
In order to meet the Company's growing demand for orders, the Company continues to invest in hardware such as production
base construction. In June this year, the Fangda Western Headquarters Base in Chengdu Xinjin started construction. The base covers
an area of 45,000 square meters and has a total construction area of about 21,000 square meters. It will become the most modern
energy-saving and environmental protection curtain wall research and development and production base in western China. The
Company's production base in Songjiang Shanghai will start construction in September this year covering an area of 23,800 square
meters and a total construction area of about 43,000 square meters.After the completion of the two bases, the national industrial
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Interim Report 2018 Summary of China Fangda Group Co., Ltd.
layout of the upgrade company will be improved and the production capacity of the Company's energy-saving and environmental
protection curtain wall will be enhanced to provide guarantee for the Company's sustained and rapid development.
In the first half of the year, the company thoroughly implemented the “contract-centric” business management model, further
optimized resources, optimized business processes, strengthened management and control effectively, reduced costs comprehensively,
improved contract execution efficiency and enabled orders to be converted into sales revenue and profits as soon as possible.
2. Rail transport equipment business
With the “Belt and Road” Initiative of the country and the development strategy of Guangdong Hong Kong and Macau's Dawan
District continued to deepen during the reporting period, the Company's subway screen door industry has achieved fruitful expansion
at home and abroad and has successively obtained the first phase of the Ahmedabad Metro in India Shijiazhuang for the screen door
system of Metro Line 3, Wuhan Metro Line 8 and Phase 3, Chengdu Metro Line 3 Phase 2 and Phase 3 and Nanchang Metro Line 1,
Nanning Subway Line 1, Nanjing Metro Line 1 and Wuhan Intercity Railway and other projects screened the door maintenance
orders with a total amount of RMB317 million. Among them, the India Ahmedabad Metro Project is the second project of the
Company in the Indian market after the Noida Metro project in India. The Company will seize the opportunity of rapid development
of the Indian subway construction and take the “Belt and Road” express train to accelerate the overseas market. The layout has
enabled the Company's rail transit business to go hand in hand at the domestic and overseas markets, further consolidating the
Company's leading position in the industry.
In the first half of the year, in addition to Lanzhou Metro Line 1, Nanchang Subway Line 2, Wuhan Metro Line 11, Zhengzhou
Metro Line 5, BYD Cloud Trail and other domestic projects under construction, Hong Kong Subway Shazhong Line, India Noida
Metro, Malaysia subway screen doors such as the Kuala Lumpur Metro are also under construction. A total of 13 screen door
products are under construction. The subway screen door order reserve reached RMB1.373 billion at the end of the period laid a solid
foundation for the future quality and profitable growth of the Company's subway screen door industry.
In recent years, the Company's rail transit screen door has also achieved remarkable results in the maintenance of professional
services. As an extension of the industrial chain of the screen door project, it has become a new profit growth point for the Company.
During the reporting period, the Company's rail transit screen door maintenance service revenue reached RMB 12,328,600, an
increase of 24.92% over the previous year. As more and more subways are opened and operated, the weight of technical services for
subway screen doors will continue to increase. In the future, the Company will further innovate existing technologies and business
models, vigorously expand industry extensions, make full use of advanced technologies such as cloud data Internet and face
recognition and vigorously develop new products with the model of “technical and service” to further improve shielding. The
integration level of door system components will enhance the comprehensive competitiveness of the Company's rail transit business.
3. New energy industry
During the reporting period, the three solar photovoltaic power plants that the Company had connected to the grid were
operating safely and steadily. In the first half of the year, the total power generation was 10,095,900 kWh, the sales revenue was
RMB11.0426 million and the operating profit was RMB6,914,100, which reached the expected target. Among them, the 20MW
distributed photovoltaic power generation project of Chayu Village, Xuanfeng Town, Luxi County, Jiangxi Province and the
distributed photovoltaic power generation project of, Songshan Lake in Dongguan have been included in the Renewable Issue issued
by the Ministry of Finance the National Development and Reform Commission and the National Energy Administration. The
Company's solar photovoltaic power station will continue to bring long-term stable income and profits to the Company.
4. Real estate
In the reporting period, the Company focused on real estate and urban renewal projects in the core areas of Guangdong, Hong
Kong, and Macau Bay, and continued to grow and strengthen the Company's real estate business. In the first half of the year, the
Fangda Town project achieved a sales area of 8,751.56 square meters with a cumulative sales of 79,312.64 square meters; the
commercial signing rate reached 75%,while Huayi Brothers Cinema Fangda Town Store has opened.It is planned that before the end
of this year, Fangda Town will start the commercial operation and the second phase of the project will be completed and accepted. In
addition to the Company's own use, the 1# floor is about 70,000 square meters to earn rentals and capital appreciation. The part of the
property will be measured at fair value. According to current accounting standards and the Company's accounting policies, this will
increase the company's profit and net assets in 2018.
The Nanchang Honggutan Fenghuangzhou Fangda Center project started construction in May this year. The project covers an
area of about 17,000 square meters with a total construction area of about 93,000 square meters. The total construction area is 66,000
square meters. The commercial complex of hotels, apartments and office buildings is planned to be completed and pre-sold at the end
of 2019.The urban renewal project and major project declaration of the signed Shenzhen Fangda Bangshen project are being actively
promoted. The project covers an area of 20,714.9 square meters. In addition there are several key renovation projects in Shenzhen
being pushed forward by the Company. The land area of these projects is about 200,000 square meters.It is expected that the real
estate sales and property leasing will continue to contribute profits to the Company in the future.
5. Innovation
The Company has been adhering to the "echnology-based, innovation as the source" business philosophy, independent
innovation ability and technical level have remained the industry leader. During the reporting period, the Company applied for 27
new patents including 9 invention patents and 18 utility model patents. As of the end of the reporting period, the Company obtained a
total of 785 patents (of which 109 were invention patents), 4 international PCT patents, 8 software copyrights, and the total number
of patents ranked first in the nation's industry.
Scientific and technological innovation is an indispensable element in the long-term stable development of the Company. The
Company invests heavily in research and development every year. In the first half of the year, it invested RMB42.08 million in
research and development and completed the establishment of 21 science and technology projects including 18 new product
development projects, three technical transformation projects; completed 10 government science and technology project award
applications. The Company's research and development of "blue and white porcelain aluminum veneer" "free-form aluminum alloy
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Interim Report 2018 Summary of China Fangda Group Co., Ltd.
sun visor" have won the Jiangxi Province outstanding new product award. In the future, the Company will vigorously promote the
application and promotion of big data, new technologies, automation artificial intelligence and modern manufacturing technologies
and strive to achieve new improvements in technological innovation, system innovation and management innovation.
6. Awards
During the reporting period, the Company was awarded the honorary title of Shenzhen Outstanding Social Responsibility
Enterprise, China's Best Employer Enterprise Award, Guangdong Province Honesty Model Enterprise, Best Board of Directors and
the 2017 Information Disclosure Appraisal. Mr. Xiong Jianming was elected as the representative of the 13th National People's
Congress.
Fangda Automation Co. Ltd. a wholly-owned subsidiary was awarded the honorary title of “Excellent Contractor” issued by
Nanjing Metro Operation Company and Tianjin Metro Operation Company and “Excellent Contractor” issued by MTR Rail Transit
Co. Ltd.
Fangda Real Estate Co. Ltd., a wholly-owned subsidiary, was awarded the “Shenzhen Real Estate Development Industry Brand
Value Enterprise”.
Xu Weihua, an employee of Fangda Jiangxi New Materials Co. Ltd., a wholly-owned subsidiary, won the “Nanchang May 1st
Labor Medal” Fang Hongjian staff, Li Honglin and Wei Zhengpei were awarded the title of “Star Craftsman” in Shenzhen
Decoration Industry.
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
In the current period, Shanghai Fangda Jingling Technology Co. Ltd. and Shenzhen Fangda Cloud Rail Technology Co.
Ltd. have been newly established two new companies in the current consolidated statement.
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
07.08.18
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