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方大B:2019年第三季度报告全文(英文版)2019-10-26  

						                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)




China Fangda Group Co., Ltd.

2019 Third Quarter Report (Full)




         October 2019




                                                                     1
                                                China Fangda Group Co., Ltd. 2019 Q3 Report (Full)




                            I Important Statement


    The members of the Board and the Company guarantee that the quarterly

report is free from any false information, misleading statement or material

omission and are jointly and severally liable for the information’s truthfulness,

accuracy and integrity.

    All the Directors have attended the meeting of the board meeting at which

this report was examined.

    Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief

Financial Officer, and Mr. Wu Bohua, the manager of accounting department

declare: the Financial Report carried in this report is authentic and completed.




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                                                                                 China Fangda Group Co., Ltd. 2019 Q3 Report (Full)




                                           II. General Information

1. Financial Highlight

Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years
□ Yes √ No

                                        End of the report period               End of last year                Year-on-year change

Total asset (RMB)                                    10,888,421,106.10             10,658,854,133.73                               2.15%

Net profit attributable to the
shareholders of the listed company                    5,051,483,434.60               5,195,187,621.88                             -2.77%
(RMB)

                                                                                         Between beginning of
                                                                 Year-on-year change                               Change from the same
                                       This report period                                the year to the end of
                                                                         (%)                                          period last year
                                                                                           the report period

Turnover (yuan)                             699,243,342.82                     -11.85%       2,125,134,289.81                     -4.93%

Net profit attributable to
shareholders of the listed company            27,468,258.38                    -69.93%            156,050,013.39                 -51.46%
(yuan)

Net profit attributable to the
shareholders of the listed company
                                              15,661,279.22                    -81.76%            129,038,343.28                 -56.34%
and after deducting of
non-recurring gain/loss (RMB)

Net cash flow generated by
                                                --                       --                    -408,455,390.94                 -462.71%
business operation (RMB)

Basic earnings per share
                                                          0.02                 -75.00%                      0.14                 -50.00%
(yuan/share)

Diluted Earnings per share
                                                          0.02                 -75.00%                      0.14                 -50.00%
(yuan/share)

Weighted average net income/asset
                                                        0.55%                   -2.22%                    3.11%                   -6.66%
ratio

  Notes:
  1. The above-mentioned decrease in “net profit attributable to shareholders of the listed company” was mainly due to the fact
  that the Shenzhen Fangda Town project which had a higher gross profit during the reporting period and contributed more to the
  profit in the previous year, was nearing the end of the planned sales area resulting in a decrease in operating income and profit. In
  addition, the operating income, net profit and gross profit margin of the curtain wall systems and materials industries and rail
  transit screen door equipment businesses have increased, as follows:
  1. The real estate industry realized operating income of RMB 236,817,200 in the first three quarters of 2019,
  a decrease of 62.79% over the same period of the previous year; net profit of RMB 59,435,400 was reduced by
  RMB169,668,700 compared with the same period of the previous year with a decrease of 74.06%;

                                                                                                                                           3
                                                                                China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


  2. In the first three quarters of 2019, the curtain wall system and materials industry realized operating
  income of RMB1,537,801,300, an increase of 13.66% over the same period of the previous year; the net profit
  was RMB57,849,500, an increase of 4.48%; with a gross margin of 14.49%, up0.89 percentages over the same period
  of last year;
  3. In the first three quarters of 2019, the rail transit equipment industry realized operating income of
  RMB319,264,800, an increase of 51.99% over the same period of the previous year; the net profit was RMB52,927,400,
  an increase of 61.45%; with a gross margin of 28.03%, up 0.89 percentages over the same period of the previous
  year.


  2. The decrease in the above-mentioned “net cash flow from operating activities” was mainly due to the decrease in the revenue
  of the Shenzhen Fangda town project due to the decrease in operating income during the reporting period, the annual corporate
  income tax settlement and payment of taxes, and the development investment of new projects. In addition, the cash flow of the
  curtain wall system and materials industry declined from the same period last year.
       The cash flow of the rail transit equipment industry increased from the same period last year. The changes
  in the cash flow of the curtain wall system and material business and rail transit equipment business are within the reasonable
  range of fluctuations.
       The details are disclosed as follows:
  1. The net cash flow generated by the real estate industry in the first three quarters of 2019 was RMB-220,978,800, compared with
RMB239,685,600 in the same period of the previous year, a decrease of RMB460,664,300 over the same period of the previous year;
  2. The net cash flow generated by the operating activities of the curtain wall system and materials industry in the first three
quarters of 2019 was RMB -188,369,400, compared with RMB-86,261,000 in the same period of last year, a decrease of
RMB102,108,500 from the same period of the previous year;
  3. The net cash flow generated by the operating activities of the rail transit screen door equipment industry in the first three
  quarters of 2019 was RMB-5,498,400, compared with RMB-36,846,700 in the same period of last year, which was improved
  compared with the same period of the previous year.


Accidental gain/loss item and amount
√ Applicable □ Inapplicable
                                                                                                                                    In RMB

                                                                      Amount from beginning of
                               Item                                     the year to the end of the                  Notes
                                                                              report period

Non-current asset disposal gain/loss (including the write-off part
                                                                                         -35,159.35
for which assets impairment provision is made)

Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprise’s business                       4,712,514.15
and based on unified national standard quota)

Capital using expense charged to non-financial enterprises and
                                                                                         585,760.51
accounted into the current income account

Gain from entrusted investment or assets management                                    5,533,960.61

Gain/loss from change of fair value of transactional financial
                                                                                       1,494,278.09
asset and liabilities, and investment gains from disposal of


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                                                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


transactional and derivative financial assets and liabilities and
sellable financial assets, other than valid period value instruments
related to the Company’s common businesses

Gain/loss from commissioned loans                                                             301,965.98

Other non-business income and expenditures other than the above                             4,603,867.26

Less: Influenced amount of income tax                                                      -9,786,470.36

     Influenced amount of minority shareholders’ equity
                                                                                              -28,012.50
(after-tax)

Total                                                                                      27,011,670.11                  --

Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular
gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
□ Applicable √ Inapplicable
No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information
Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.




2. Total number of shareholders and shareholding of top 10 shareholders by the end of the
report period

1. Ordinary shareholders, preference shareholders with resumed voting rights and top 10 shareholders

                                                                                                                                       In share

                                                                             Number of shareholders of
Number of shareholders of common                                             preferred stocks of which
                                                                    70,369                                                                  0
shares at the end of the report period                                       voting rights recovered in the
                                                                             report period (if any)

                                                          Top 10 Shareholders

                        Nature of         Shareholding        Shareholding             Conditional              Pledging or freezing
Shareholder name
                       shareholder         percentage               number               shares            Share status        Quantity

Shenzhen
Banglin            Domestic
Technologies       non-state legal                10.08%            113,202,154                       Pledged                    32,860,000
Development        person
Co., Ltd.

Shengjiu           Foreign legal
                                                    8.52%            95,688,766
Investment Ltd.    person

                   Domestic natural
Fang Wei                                            3.03%            34,071,739
                   person

Gong Qing          Domestic
                                                    2.38%            26,791,488
Cheng Shi Li He non-state legal


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                                                                       China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


Investment          person
Management
Partnership
Enterprise
(limited partner)

Shenwan
Hongyuan            Foreign legal
                                           1.22%         13,705,232
Securities (Hong person
Kong) Co., Ltd.

VANGUARD
EMERGING
                    Foreign legal
MARKETS                                    0.71%           7,946,483
                    person
STOCK INDEX
FUND

VANGUARD
TOTAL
                    Foreign legal
INTERNATION                                0.52%           5,872,007
                    person
AL STOCK
INDEX FUND

                    Domestic natural
Qu Chunlin                                 0.38%           4,236,961
                    person

First Shanghai
                    Foreign legal
Securities                                 0.36%           4,001,704
                    person
Limited

Essence
International       Foreign legal
                                           0.33%           3,757,707
Securities (Hong person
Kong) Co., Ltd.

                                        Top 10 holders of unconditional shares

                                                                                                  Category of shares
          Shareholder name             Amount of shares without sales restriction           Category of
                                                                                                               Quantity
                                                                                              shares

Shenzhen Banglin Technologies                                                            RMB common
                                                                           113,202,154                           113,202,154
Development Co., Ltd.                                                                    shares

                                                                                         Foreign shares
Shengjiu Investment Ltd.                                                    95,688,766 listed in domestic         95,688,766
                                                                                         exchanges

                                                                                         RMB common
Fang Wei                                                                    34,071,739                            34,071,739
                                                                                         shares

Gong Qing Cheng Shi Li He                                                   26,791,488 RMB common                 26,791,488



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                                                                                 China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


Investment Management Partnership                                                                     shares
Enterprise (limited partner)

                                                                                                      Foreign shares
Shenwan Hongyuan Securities
                                                                                      13,705,232 listed in domestic          13,705,232
(Hong Kong) Co., Ltd.
                                                                                                      exchanges

                                                                                                      Foreign shares
VANGUARD EMERGING
                                                                                        7,946,483 listed in domestic          7,946,483
MARKETS STOCK INDEX FUND
                                                                                                      exchanges

VANGUARD TOTAL                                                                                        Foreign shares
INTERNATIONAL STOCK INDEX                                                               5,872,007 listed in domestic          5,872,007
FUND                                                                                                  exchanges

                                                                                                      RMB common
Qu Chunlin                                                                              4,236,961                             4,236,961
                                                                                                      shares

                                                                                                      Foreign shares
First Shanghai Securities Limited                                                       4,001,704 listed in domestic          4,001,704
                                                                                                      exchanges

                                                                                                      Foreign shares
Essence International Securities
                                                                                        3,757,707 listed in domestic          3,757,707
(Hong Kong) Co., Ltd.
                                                                                                      exchanges

                                         Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
                                         Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
Notes to top ten shareholder
                                         Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership
relationship or "action in concert"
                                         Enterprise are related parties. The Company is not notified of other action-in-concert or
                                         related parties among the other holders of current shares.

Top-10 common share shareholders
                                         None
participating in margin trade (if any)

Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
□ Yes √ No
No agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional
common shares in the report period


2. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of
the report period

□ Applicable √ Inapplicable




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                                                                       China Fangda Group Co., Ltd. 2019 Q3 Report (Full)




                                             III Significant Events

   1. Major changes in accounting items and financial data in the report period and reasons

   √ Applicable □ Inapplicable
In RMB
                                   Balance on September   Balance on December    YOY change
            Item                                                                                       Cause of change
                                         30, 2019              31, 2018             (% )
                                                                                               Due to payment of mature
Notes receivable                          90,091,337.35         140,139,692.84       -35.71%
                                                                                               notes
                                                                                               Mainly due to the increase
Other current assets                     119,263,124.05          51,698,111.14       130.69%   in the input tax to be
                                                                                               verified and to be deducted
                                                                                               mainly due to the increase
                                                                                               in investment in
Construction in process                   95,403,024.12          58,269,452.72        63.73%
                                                                                               construction of the
                                                                                               Shanghai East China Base.
                                                                                               Mainly due to increase in
Short-term loans                         724,000,000.00         208,000,000.00       248.08%
                                                                                               bank borrowings
                                                                                               Due to the transfer for
Prepayment received                      138,808,823.95         278,577,848.54       -50.17%   sales to settlement in the
                                                                                               period
Employees' wage payable                   24,458,669.74          44,513,062.17       -45.05%   Annual bonus paid
                                                                                               Mainly due to the annual
Taxes payable                             20,872,749.79         107,709,999.19       -80.62%   final settlement of the
                                                                                               corporate income tax
Non-current liabilities due                                                                    Reclassified long-term
                                         850,000,000.00         200,000,000.00       325.00%
in 1 year                                                                                      loans due within 1 year
                                                                                               Mainly due to the repayment
                                                                                               and reclassification of
Long-term loans                          599,198,144.39       1,193,978,153.39       -49.81%
                                                                                               non-current liabilities
                                                                                               due in 1 year
                                                                                               Mainly due to the
Surplus reserves                          54,042,195.07         120,475,221.40       -55.14%   repurchase of B shares in
                                                                                               the current period
                                   Total amount in this                          YOY change
            Item                                              Last period                              Cause of change
                                           year                                     (% )
                                                                                               Mainly due to the decrease
                                                                                               in real estate income which
Taxes and surcharges                      47,749,346.11         139,027,527.35       -65.65%
                                                                                               is due to the decrease in
                                                                                               provision of the land VAT.



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                                                                                China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


                                                                                                            Due to increased investment
R&D cost                                   35,163,348.44                11,567,916.09          203.97%
                                                                                                            in research and development
                                                                                                            Due to the increase in
                                                                                                            borrowings during the
                                                                                                            period and the suspension
Financial expenses                         75,982,086.31                51,121,831.76            48.63%
                                                                                                            of capitalization of
                                                                                                            interest expenses of Fangda
                                                                                                            Town project
                                                                                                            Due to the decrease in the
Investment income                            6,163,431.10               57,877,044.56          -89.35%      current wealth management
                                                                                                            investment
                                                                                                            Changes in the fair value of
Gain caused by changes in
                                                          -            -34,326,342.25          100.00%      the fund investment in the
fair value
                                                                                                            previous period
                                                                                                            Mainly due to the decrease
Income tax expenses                        14,924,568.34                84,216,677.45          -82.28%      in profits which is due to
                                                                                                            the decrease in income tax
                                                                                                            Mainly due to recognition
                                                                                                            of income from the Shenzhen
Net profit                                156,050,013.39               321,470,008.08          -51.46%
                                                                                                            Fangda Town project and
                                                                                                            decrease in the net profit
                                                                                                            Mainly due to the decrease
Cash flow generated by
                                         -408,455,390.94               112,612,558.74         -462.71%      in cash flow from real
business operations, net
                                                                                                            estate business activities
                                                                                                            Mainly due to the increase
                                                                                                            in net investment
                                                                                                            expenditure during the
                                                                                                            period, the increase in
Cash flow generated by
                                         -398,879,702.81                91,103,672.34         -537.83%      construction investment in
investment activities, net
                                                                                                            construction projects and
                                                                                                            investment real estate, and
                                                                                                            the increase in investment
                                                                                                            expenses of subsidiaries.
                                                                                                            Mainly due to net increase
Net cash flow generated by
                                          232,130,880.90              -431,042,206.35          153.85%      in current period bank
financing activities
                                                                                                            borrowings




   2. Progress of key issues and its impacts and solutions

   □ Applicable √ Inapplicable
   Progress in the implementation of share repurchase
   □ Applicable √ Inapplicable
   Progress in the implementation of the reduction of shareholding shares by means of centralized bidding


                                                                                                                                    9
                                                                                       China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


□ Applicable √ Inapplicable


3. Commitments that have not been fulfilled by actual controller, shareholders, related parties,
acquirers of the Company

□ Applicable √ Inapplicable
There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company


4. Forecast of operating performance in 2019

Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end of
the next report period
√ Applicable □ Inapplicable
Forecast: substantial decrease from the same period last year
Data type: within a period of time

                                     Between beginning of the           Same period last                      Change
                                     year to the end of the next             year
                                           report period

Net profit forecast (in                20,000     to       30,000            224,616.46        Decrease         91.10%     t     86.64%
RMB10,000)                                                                                                                 o

Basic earnings per share                  0.18    to           0.27                  1.91      Decrease         90.58%     t     85.86%
(yuan/share)                                                                                                               o

Result forecast note                  The main reason for the expected decline in 2019 results:
                                      1. The sales of Shenzhen Fangda Town project is nearly completed, resulting in a decrease in
                                      operating income and net profit;
                                      2. In 2018, as the 1# building of Shenzhen Fangda Town Project wasrecognized as an
                                      investment real estat, at the end of the period, the non recurring income of fair value change
                                      generated by the end of the period's evaluation and appreciation increased the net profit
                                      increased by approximately RMB 2.2 billion. In 2019, there was no such income from the
                                      above business.


5. Securities investment

√ Applicable □ Inapplicable
                                                                                                                                   In RMB

                                                                          Accumu
                                                               Gain/los
                                                                           lative
                                                               s caused              Amount Amount
                               Initial Account Opening                    changes                               Closing
Securiti            Abbrevi                                        by                purchas sold in Gain/los             Account Capital
            Code               investm      ing        book                in fair                               book
   es                  ation                                   changes               ed in the    the     s               ing item source
                               ent cost method         value               value                                 value
                                                                in fair               period     period
                                                                          accounti
                                                                value
                                                                           ng into



                                                                                                                                            10
                                                                                 China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


                                                                       the
                                                                     income
                                                                     account

                                            Measure                                                                  Transact
                     Jinxin
                                 200,000 ment at                                200,000 200,000 761,235              ional      Self-ow
Fund     004400 Minxing                               0.00                                                    0.00
                                  ,000.00 fair                                  ,000.00 ,000.00       .04            financia ned fund
                     Bond A
                                            value                                                                    l assets

                     Dongfan
                     g Huixin
                     Flexible
                     Configu
                     ration                 Measure                                                                  Transact
                     Compou 200,000 ment at                                     200,000 200,000 783,043              ional      Self-ow
Fund     002163                                       0.00                                                    0.00
                     nd           ,000.00 fair                                  ,000.00 ,000.00       .06            financia ned fund
                     Securitie              value                                                                    l assets
                     s
                     Investm
                     ent Fund
                     Class C

                                 400,000                                        400,000 400,000 1,544,2
Total                                            --   0.00    0.00      0.00                                  0.00      --         --
                                  ,000.00                                       ,000.00 ,000.00    78.10

Disclosure date of approval
by the Board of Directors        September 10, 2018
of securities investment

Disclosure date of
securities investment
approval by the                  None
Shareholders’ Meeting (if
any)


6. Entrusted wealth management

√ Applicable □ Inapplicable
                                                                                                                          In RMB10,000

                                                                                                                Due balance to be
             Type                  Source of fund              Amount                   Undue balance
                                                                                                                     recovered

Bank financial products Self-owned fund                                      54,828                  499.09                             0

Total                                                                        54,828                  499.09                             0

Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost
protection
□ Applicable √ Inapplicable



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                                                                                              China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


Entrusted financial management expected to fail to recover the principal or likely result in impairment
□ Applicable √ Inapplicable


7. Derivative investment

√ Applicable □ Inapplicable
                                                                                                                                               In RMB10,000

                                                                                                                                           Proporti
                                                                                                                                            on of
                                                                                                                                           closing
                                                                                                                                           investm
Derivati                                                                                                            Impairm                  ent       Actual
                                                                               Initial                 Amount                  Closing
     ve               Related                                                                Amount                   ent                  amount gain/los
           Relation                           Initial       Start     End      investm                 sold in                 investm
investm               transacti       Type                                                   in this                provisio                in the     s in the
             ship                            amount         date      date       ent                    this                     ent
     ent                   on                                                                period                  n (if                 closing     report
                                                                               amount                  period                  amount
operator                                                                                                             any)                    net       period
                                                                                                                                           assets in
                                                                                                                                             the
                                                                                                                                            report
                                                                                                                                            period

Shangha
                                  Shangha
i                                                                   January
                                  i           2,535.7 July 13,                 2,535.7 13,096. 12,059.                         3,573.2
Futures No            No                                            31,                                                                      0.71% 104.64
                                  aluminu               6 2018                           6        92           39                      9
Exchan                                                              2020
                                  m
ge

                                              2,535.7                          2,535.7 13,096. 12,059.                         3,573.2
Total                                                        --           --                                                                 0.71% 104.64
                                                        6                                6        92           39                      9

Capital source                               Self-owned fund

Lawsuit (if any)                             None

Disclosure date of derivative
investment approval by the Board of October 31, 2017
Directors (if any)

Disclosure date of derivative
investment approval by the                   None
Shareholders’ Meeting (if any)

Risk analysis and control measures
                                             To prevent the risk of fluctuation of raw material prices, the Company adopted the aluminum
for the derivative holding in the
                                             futures exchanged at the domestic futures exchange to provide hedging for aluminum as a
report period (including without
                                             raw material for the Company. The Company has set up and implemented the Provincial
limitation market, liquidity, credit,
                                             Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.
operation and legal risks)

Changes in the market price or fair          Fair value of derivatives are measured at open prices in the futures market



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                                                                                China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


value of the derivative in the report
period, the analysis of the derivative’
s fair value should disclose the
method used and related assumptions
and parameters.

Material changes in the accounting
policies and rules related to the
                                          None
derivative in the report period
compared to last period

Opinions of independent directors on
the Company’s derivative                 None
investment and risk controlling


8. Reception of investigations, communications, or interviews in the reporting period

√ Applicable □ Inapplicable

           Time/date                          Way                         Visitor                 Disclosure of information

                                                                                           Investor Relationship Record Form on
August 28, 2019                   Onsite investigation      Institution
                                                                                           www.cninfo.com.cn


9. Incompliant external guarantee

□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.


10. Non-operating capital use by the controlling shareholder or related parties in the
reporting term

□ Applicable √ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.


11. Performance of poverty relieving responsibilities

(I) As of the disclosure date of this report, the Company has donated RMB824,000 for the precision poverty
alleviation project in 2019, as follows:
(1) Donated RMB100,000 to the Ganzhou Charity Federation of Jiangxi Province to fund the Ruijin City Charity Association to
purchase defibrillators at the Red Spot;
(2) donated RMB20,000 to two poverty-stricken villages in Luxi County, Pingxiang City, Jiangxi Province for the construction of
public facilities;
(3) Donated RMB2,000 to the Social Assistance Center of Luxiang Town, Jinshan District, Shanghai for charity assistance activities.
(4) In order to help the Lianhua County of Pingxiang City, Jiangxi Province to achieve poverty alleviation, the Company donated
500,000 yuan to Pingxiang City Charity Association of Jiangxi Province for the development of lily industry in Shanbei Village,
Liushi Township, Lianhua County, and Tianyu Village, Fanglou Town, Lianhua County.

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                                                                                China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


(5) The Company donated RMB102,500 to the Jiangxi Kaixuan Foundation to help the poor students in Suichuan county, Ji'an city
and Jiangxi province.
(6) The Company donated RMB53,000 to the elder caring activity of the Shenzhen Longgang Dakang community.
(7) The Company donated RMB30,000 to the teenagers activity of the Shenzhen Longgang Dakang community.
(8) The Company donated RMB15,000 to the poor students at Zhenglong village, Shahe county, Zhanggong district, Ganzhou city,
Jiangxi province.
(9) The Company donated RMB1,500 to the CPC Shenzhen Property Management Industry Committee to purchase measure
equipment for the health center in the Liangshan Yi Autonomous Prefecture, Sichuan province.
(II) The Company will continue to fulfill its social responsibility for precision poverty alleviation, and make
donations from time to time based on business development.




12. Others

Real estate:
    (1) Shenzhen Fangda Town Project: In the first three quarters of 2019, the Fangda Town project achieved a sales area of
2,966.37 square meters and an accumulated sales area of 85,376.87 square meters.
    (2) Nanchang Fangda Center Project (Fangda Center Project: The project is located in Fenghuangzhou Area, Honggutan New
District, Nanchang City. Construction started in May 2018. The project covers an area of about 17,000 square meters and has a total
construction area of about 93,000 square meters. With a total construction area of 66,000 square meters, Jirong is a commercial
complex covering commercial, apartment and office buildings. The project plans to start pre-sale in the early 2020 and to complete at
the end of 2020. At present, the project construction is progressing in accordance with the expected engineering
nodes.
    (3) Shenzhen Fangda Bangshen Industrial Park Project: The project is located in Fuhai sub-district, Bao'an District, Shenzhen. It
covers an area of 20,714.9 square meters and is currently an industrial plant. As of the end of the third quarter of 2019, the project has
been approved and established. The special planning phase has been applied for.
    (4) Urban renewal project along the Dagang River in Henggang, Shenzhen: The project is located in Dakang Village, Yuanshan
Street, Longgang District, Shenzhen. The area of the project to be demolished is about 80,000 square meters. The update direction is
mainly residential function, and finally subject to government approval. The project work is currently being actively
promoted.




                                                                                                                                       14
                                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)




                                         IV Financial Statements

1. Financial statements

1. Consolidated Balance Sheet

Prepared by: China Fangda Group Co., Ltd.
                                                September 30, 2019
                                                                                                               In RMB

                   Item                       September 30, 2019                        December 31, 2018

Current asset:

     Monetary capital                                      1,103,139,175.15                          1,389,062,083.76

     Settlement provision

     Outgoing call loan

     Transactional financial assets                            9,990,899.17

     Financial assets measured at fair
value with variations accounted into
current income account

     Derivative financial assets                                   166,875.00

     Notes receivable                                         90,091,337.35                            140,139,692.84

     Account receivable                                    2,136,208,395.20                          1,920,075,031.85

     Receivable financing

     Prepayment                                               46,395,302.30                             46,454,844.74

     Insurance receivable

     Reinsurance receivable

     Provisions of Reinsurance
contracts receivable

     Other receivables                                       149,672,873.43                            139,990,188.26

       Including: interest receivable

                 Dividend receivable

     Repurchasing of financial assets

     Inventory                                               826,209,926.06                            651,405,832.29

     Contract assets

     Assets held for sales

     Non-current assets due in 1 year


                                                                                                                    15
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Other current assets                     119,263,124.05                            51,698,111.14

Total current assets                         4,481,137,907.71                        4,338,825,784.88

Non-current assets:

     Loan and advancement provided

     Debt investment

     Sellable financial assets                                                          21,674,008.23

     Other debt investment

     Investment held until mature

     Long-term receivable

     Long-term share equity investment         60,623,286.80                            70,105,657.88

     Investment in other equity tools          21,674,008.23

     Other non-current financial assets

     Investment real estate                  5,287,170,813.77                        5,256,442,406.63

     Fixed assets                             473,321,353.16                           455,274,241.83

     Construction in process                   95,403,024.12                            58,269,452.72

     Productive biological assets

     Gas & petrol

     Use right assets

     Intangible assets                         79,042,376.96                            80,313,240.67

     R&D expense

     Goodwill

     Long-term amortizable expenses              2,848,412.67                            2,114,331.46

     Deferred income tax assets               363,287,360.68                           356,474,925.76

     Other non-current assets                  23,912,562.00                            19,360,083.67

Total of non-current assets                  6,407,283,198.39                        6,320,028,348.85

Total of assets                             10,888,421,106.10                       10,658,854,133.73

Current liabilities

     Short-term loans                         724,000,000.00                           208,000,000.00

     Loans from Central Bank

     Call loan received

     Transactional financial liabilities

     Financial liabilities measured at
fair value with variations accounted into
current income account

     Derivative financial liabilities                                                    1,625,725.00


                                                                                                    16
                                                  China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


       Notes payable                       574,310,069.62                           507,864,518.19

       Account payable                     942,136,009.60                         1,039,630,798.64

       Prepayment received                 138,808,823.95                           278,577,848.54

       Contract liabilities

       Selling of repurchased financial
assets

       Deposit received and held for
others

       Entrusted trading of securities

       Entrusted selling of securities

       Employees' wage payable              24,458,669.74                            44,513,062.17

       Taxes payable                        20,872,749.79                           107,709,999.19

       Other payables                      842,141,293.22                           813,118,699.84

         Including: interest payable          2,411,435.97                            2,098,971.44

                 Dividend payable

       Fees and commissions payable

       Reinsurance fee payable

       Liabilities held for sales

       Non-current liabilities due in 1
                                           850,000,000.00                           200,000,000.00
year

       Other current liabilities            10,048,033.18                             9,328,682.25

Total current liabilities                 4,126,775,649.10                        3,210,369,333.82

Non-current liabilities:

       Insurance contract provision

       Long-term loans                     599,198,144.39                         1,193,978,153.39

       Bond payable

         Including: preferred stock

                 Perpetual bond

       Lease liabilities

       Long-term payable

       Long-term employees’ wage
payable

       Anticipated liabilities               6,012,597.12                             6,831,162.99

       Deferred earning                     10,879,551.33                            10,401,161.30

       Deferred income tax liabilities    1,043,689,588.60                        1,042,086,700.35



                                                                                                 17
                                                                          China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Other non-current liabilities

Total of non-current liabilities                                  1,659,779,881.44                        2,253,297,178.03

Total liabilities                                                 5,786,555,530.54                         5,463,666,511.85

Owner’s equity:

     Share capital                                                1,123,384,189.00                        1,155,481,686.00

     Other equity tools

        Including: preferred stock

                 Perpetual bond

     Capital reserves                                                 1,454,191.59                            1,454,191.59

     Less: Shares in stock                                                                                   10,831,437.66

     Other miscellaneous income                                       3,832,489.79                            7,382,087.59

     Special reserves

     Surplus reserves                                                54,042,195.07                          120,475,221.40

     Common risk provisions

     Retained profit                                              3,868,770,369.15                        3,921,225,872.96

Total of owner’s equity belong to the
                                                                  5,051,483,434.60                        5,195,187,621.88
parent company

     Minor shareholders’ equity                                     50,382,140.96

Total of owners’ equity                                          5,101,865,575.56                        5,195,187,621.88

Total of liabilities and owner’s interest                       10,888,421,106.10                       10,658,854,133.73


Legal representative: Xiong Jianming         CFO: Lin Kebing         Accounting Manager: Wu Bohua


2. Balance Sheet of the Parent Company

                                                                                                                    In RMB

                    Item                             September 30, 2019                      December 31, 2018

Current asset:

     Monetary capital                                               122,357,849.68                          410,118,157.55

     Transactional financial assets

     Financial assets measured at fair
value with variations accounted into
current income account

     Derivative financial assets

     Notes receivable                                                                                       200,000,000.00

     Account receivable                                                                                          471,039.12



                                                                                                                         18
                                                  China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Receivable financing

     Prepayment                                369,977.96                             6,733,047.16

     Other receivables                    2,381,200,854.60                          822,543,653.04

       Including: interest receivable

                  Dividend receivable                                               100,000,000.00

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due in 1 year

     Other current assets                      789,549.44                               919,388.18

Total current assets                      2,504,718,231.68                        1,440,785,285.05

Non-current assets:

     Debt investment

     Sellable financial assets                                                       21,674,008.23

     Other debt investment

     Investment held until mature

     Long-term receivable

     Long-term share equity investment    1,013,339,495.35                          983,339,494.35

     Investment in other equity tools       21,674,008.23

     Other non-current financial assets

     Investment real estate                293,570,141.37                           309,189,866.37

     Fixed assets                           67,948,275.98                            53,784,811.23

     Construction in process

     Productive biological assets

     Gas & petrol

     Use right assets

     Intangible assets                       1,878,062.26                             2,112,301.97

     R&D expense

     Goodwill

     Long-term amortizable expenses            707,499.62                               917,499.68

     Deferred income tax assets             41,874,360.60                            34,555,598.81

     Other non-current assets

Total of non-current assets               1,440,991,843.41                        1,405,573,580.64

Total of assets                           3,945,710,075.09                        2,846,358,865.69



                                                                                                 19
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


Current liabilities

       Short-term loans                       300,000,000.00                           200,000,000.00

       Transactional financial liabilities

       Financial liabilities measured at
fair value with variations accounted into
current income account

       Derivative financial liabilities

       Notes payable

       Account payable                            606,941.85                               676,941.85

       Prepayment received                        694,791.63                               733,274.16

       Contract liabilities

       Employees' wage payable                  1,037,729.43                             2,145,763.39

       Taxes payable                             1,119,390.01                              341,004.65

       Other payables                         545,462,539.20                           300,006,406.51

         Including: interest payable            1,207,576.41                               740,208.33

                 Dividend payable

       Liabilities held for sales

       Non-current liabilities due in 1
                                              500,000,000.00
year

       Other current liabilities

Total current liabilities                    1,348,921,392.12                          503,903,390.56

Non-current liabilities:

       Long-term loans                         90,000,000.00                           500,000,000.00

       Bond payable

         Including: preferred stock

                 Perpetual bond

       Lease liabilities

       Long-term payable

       Long-term employees’ wage
payable

       Anticipated liabilities

       Deferred earning

       Deferred income tax liabilities         63,979,716.40                            64,130,617.41

       Other non-current liabilities

Total of non-current liabilities              153,979,716.40                           564,130,617.41



                                                                                                    20
                                                                            China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


Total liabilities                                                  1,502,901,108.52                          1,068,034,007.97

Owner’s equity:

       Share capital                                               1,123,384,189.00                          1,155,481,686.00

       Other equity tools

         Including: preferred stock

                 Perpetual bond

       Capital reserves                                                  360,835.52                                360,835.52

       Less: Shares in stock                                                                                    10,831,437.66

       Other miscellaneous income                                      3,590,127.88                              8,756,553.46

       Special reserves

       Surplus reserves                                               54,042,195.07                           120,475,221.40

       Retained profit                                             1,261,431,619.10                           504,081,999.00

Total of owners’ equity                                           2,442,808,966.57                          1,778,324,857.72

Total of liabilities and owner’s interest                         3,945,710,075.09                          2,846,358,865.69


3. Consolidated Income Statement of the Report Period

                                                                                                                         In RMB

                       Item                  Amount occurred in the current period         Occurred in previous period

1. Total revenue                                                     699,243,342.82                           793,250,321.93

       Incl. Business income                                         699,243,342.82                           793,250,321.93

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                                               666,684,444.58                           674,600,862.14

       Incl. Business cost                                           562,481,963.87                           568,150,146.71

              Interest expense

              Fee and commission paid

              Insurance discharge payment

              Net claim amount paid

              Net insurance policy
responsibility reserves provided

              Insurance policy dividend
paid

              Reinsurance expenses


                                                                                                                             21
                                                      China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


                Taxes and surcharges             6,268,346.04                            37,823,332.32

                Sales expense                   13,562,766.99                            10,702,477.61

                Administrative expense          37,409,946.41                            37,002,879.24

                R&D cost                        20,460,675.32                             3,572,516.18

                Financial expenses              26,500,745.95                            17,349,510.08

                  Including: interest cost      23,424,082.73                            25,702,800.18

                           Interest income       1,208,273.71                             3,207,162.41

        Add: other gains                         2,131,742.20                             1,058,639.79

             Investment gains “-” for loss)    2,107,033.94                            31,632,282.15

             Incl. Investment gains from
                                                  -156,637.53                              -159,703.29
affiliates and joint ventures

                  Financial assets
derecognised as a result of amortized cost

             Exchange gains ("-" for loss)

             Net open hedge gains (“-” for
loss)

             Gains from change of fair value
                                                  -121,506.67                            -25,429,705.00
(“-“ for loss)

             Credit impairment ("-" for loss)   -18,366,483.61

             Investment impairment loss
                                                                                         -11,717,054.18
("-" for loss)

             Investment gains ("-" for loss)         -8,050.57                            -1,981,867.64

3. Operational profit ("-" for loss)            18,301,633.53                           112,211,754.91

        Plus: non-operational income             1,061,813.66                               464,154.45

        Less: non-operational expenditure          953,272.75                               167,066.97

4. Gross profit ("-" for loss)                  18,410,174.44                           112,508,842.39

        Less: Income tax expenses                -9,094,691.37                           21,170,497.50

5. Net profit ("-" for net loss)                27,504,865.81                            91,338,344.89

  (1) By operating consistency

        1. Net profit from continuous
                                                27,504,865.81                            91,338,344.89
operation ("-" for net loss)

        2. Net profit from discontinuous
operation ("-" for net loss)

  (2) By ownership

        1. Net profit attributable to the
                                                27,468,258.38                            91,338,344.89
owners of parent company



                                                                                                     22
                                                 China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     2. Minor shareholders’ equity             36,607.43

6. After-tax net amount of other misc.
                                              227,053.45                             1,286,962.78
incomes

  After-tax net amount of other misc.
                                              227,053.45                             1,286,962.78
incomes attributed to parent's owner

     (1) Other misc. incomes that cannot
be re-classified into gain and loss

             1. Re-measure the change in
the defined benefit plan

             2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

             3. Fair value change of
investment in other equity tools

             4. Fair value change of the
company's credit risk

             5. Others

     (2) Other misc. incomes that will be
                                              227,053.45                            1,286,962.78
re-classified into gain and loss

             1. Other comprehensive
income that can be transferred to profit or
loss under the equity method

             2. Fair value change of other
debt investment

             3. Change in the fair value of
financial asset for sale

             4. Gains and losses from
changes in fair value of available-for-sale
financial assets

             5. Held-to-mature
investment reclassified as gain and loss in
the financial assets for sales

             6. Other credit investment
credit impairment provisions

             7. Cash flow hedge reserve       127,075.00                             1,232,080.00

             8. Translation difference of
                                                99,978.45                               54,882.78
foreign exchange statement

             9. Others




                                                                                                23
                                                                               China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


  After-tax net of other misc. income
attributed to minority shareholders

7. Total of misc. incomes                                                27,731,919.26                              92,625,307.67

        Total of misc. incomes attributable
                                                                         27,695,311.83                              92,625,307.67
to the owners of the parent company

        Total misc gains attributable to the
                                                                             36,607.43
minor shareholders

8. Earnings per share:

        (1) Basic earnings per share                                               0.02                                       0.08

        (2) Diluted earnings per share                                             0.02                                       0.08

Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.


Legal representative: Xiong Jianming           CFO: Lin Kebing           Accounting Manager: Wu Bohua


4. Consolidated Income Statement of the Report Period

                                                                                                                            In RMB

                     Item                      Amount occurred in the current period          Occurred in previous period

1. Turnover                                                               7,375,435.58                               7,795,537.50

        Less: Operation cost                                                106,833.17                                 559,020.48

             Taxes and surcharges                                           323,375.21                                 324,914.12

             Sales expense                                                        0.00

             Administrative expense                                       5,985,937.55                               5,790,565.51

             R&D cost                                                             0.00

             Financial expenses                                          12,747,466.71                               9,138,885.73

               Including: interest cost                                  11,186,191.67                               9,896,208.34

                       Interest income                                       72,058.89                                 408,881.16

        Add: other gains                                                     73,719.18

             Investment gains (“-” for
                                                                      1,000,481,381.24                              11,500,427.84
loss)

             Incl. Investment gains from
                                                                                  0.00
affiliates and joint ventures

                  Financial assets
derecognised as a result of amortized
cost

             Net open hedge gains (“-”
for loss)


                                                                                                                                  24
                                                    China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


            Gains from change of fair
                                                        0.00                           -10,171,856.57
value (“-“ for loss)

            Credit impairment ("-" for
                                                    1,191.25
loss)

            Investment impairment loss
                                                        0.00                               17,615.04
("-" for loss)

            Investment gains ("-" for loss)             0.00                               -55,328.84

2. Operational profit (“-” for loss)        988,768,114.61                            -6,726,990.87

        Plus: non-operational income                    0.00                                2,500.00

        Less: non-operational expenditure        607,774.57                                 5,494.62

3. Gross profit (“-” for loss)              988,160,340.04                            -6,729,985.49

        Less: Income tax expenses              -2,951,715.89

4. Net profit (“-” for net loss)            991,112,055.93                            -6,729,985.49

        (1) Net profit from continuous
                                              991,112,055.93                            -6,729,985.49
operation ("-" for net loss)

        (2) Net profit from discontinuous
                                                        0.00
operation ("-" for net loss)

5. After-tax net amount of other misc.
incomes

        (1) Other misc. incomes that
cannot be re-classified into gain and
loss

               1. Re-measure the change
in the defined benefit plan

               2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

               3. Fair value change of
investment in other equity tools

               4. Fair value change of the
company's credit risk

               5. Others

        (2) Other misc. incomes that will
be re-classified into gain and loss

               1. Other comprehensive
income that can be transferred to profit
or loss under the equity method

               2. Fair value change of


                                                                                                   25
                                                                           China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


other debt investment

             3. Change in the fair value
of financial asset for sale

             4. Gains and losses from
changes in fair value of
available-for-sale financial assets

             5. Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales

             6. Other credit investment
credit impairment provisions

             7. Cash flow hedge reserve

             8. Translation difference of
foreign exchange statement

             9. Others

6. Total of misc. incomes                                           991,112,055.93                             -6,729,985.49

7. Earnings per share:

     (1) Basic earnings per share

     (2) Diluted earnings per share


5. Consolidated Income Statement Between the Beginning of the Year and End of the Report Period

                                                                                                                        In RMB

                    Item                    Amount occurred in the current period         Occurred in previous period

1. Total revenue                                                  2,125,134,289.81                          2,235,301,218.46

     Incl. Business income                                        2,125,134,289.81                          2,235,301,218.46

             Interest income

             Insurance fee earned

             Fee and commission
received

2. Total business cost                                            1,948,269,844.75                          1,846,658,281.62

     Incl. Business cost                                          1,628,547,934.43                          1,503,636,322.43

             Interest expense

             Fee and commission paid

             Insurance discharge payment

             Net claim amount paid

             Net insurance policy


                                                                                                                            26
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


responsibility reserves provided

               Insurance policy dividend
paid

               Reinsurance expenses

               Taxes and surcharges             47,749,346.11                          139,027,527.35

               Sales expense                    40,738,405.49                           37,762,618.85

               Administrative expense          120,088,723.97                          103,542,065.13

               R&D cost                         35,163,348.44                           11,567,916.09

               Financial expenses               75,982,086.31                           51,121,831.76

                 Including: interest cost       63,900,969.21                           56,940,394.38

                           Interest income       3,647,364.62                            6,869,263.66

        Add: other gains                         6,133,192.71                            3,757,831.37

            Investment gains “-” for loss)     6,163,431.10                           57,877,044.56

            Incl. Investment gains from
                                                  -482,371.08                            -1,230,704.06
affiliates and joint ventures

                 Financial assets
derecognised as a result of amortized cost

            Exchange gains ("-" for loss)

            Net open hedge gains (“-” for
loss)

            Gains from change of fair value
                                                                                        -34,326,342.25
(“-“ for loss)

            Credit impairment ("-" for loss)   -22,736,143.99

            Investment impairment loss
                                                                                        -13,572,017.23
("-" for loss)

            Investment gains ("-" for loss)        -35,159.35                            -3,533,733.22

3. Operational profit ("-" for loss)           166,389,765.53                          398,845,720.07

        Plus: non-operational income             5,935,705.81                            7,530,192.86

        Less: non-operational expenditure        1,331,838.55                              689,227.40

4. Gross profit ("-" for loss)                 170,993,632.79                          405,686,685.53

        Less: Income tax expenses               14,924,568.34                           84,216,677.45

5. Net profit ("-" for net loss)               156,069,064.45                          321,470,008.08

  (1) By operating consistency

        1. Net profit from continuous
                                               156,075,582.20                          321,470,008.08
operation ("-" for net loss)

        2. Net profit from discontinuous            -6,517.75


                                                                                                    27
                                                    China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


operation ("-" for net loss)

  (2) By ownership

     1. Net profit attributable to the
                                              156,050,013.39                          321,470,008.08
owners of parent company

     2. Minor shareholders’ equity                19,051.06

6. After-tax net amount of other misc.
                                                1,616,827.78                             -592,793.39
incomes

  After-tax net amount of other misc.
                                                1,616,827.78                             -592,793.39
incomes attributed to parent's owner

     (1) Other misc. incomes that cannot
be re-classified into gain and loss

             1. Re-measure the change in
the defined benefit plan

             2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

             3. Fair value change of
investment in other equity tools

             4. Fair value change of the
company's credit risk

             5. Others

     (2) Other misc. incomes that will be
                                                1,616,827.78                             -592,793.39
re-classified into gain and loss

             1. Other comprehensive
income that can be transferred to profit or
loss under the equity method

             2. Fair value change of other
debt investment

             3. Change in the fair value of
financial asset for sale

             4. Gains and losses from
changes in fair value of available-for-sale
financial assets

             5. Held-to-mature
investment reclassified as gain and loss in
the financial assets for sales

             6. Other credit investment
credit impairment provisions

             7. Cash flow hedge reserve         1,523,710.00                             -606,921.25


                                                                                                   28
                                                                               China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


               8. Translation difference of
                                                                             93,117.78                                  14,127.86
foreign exchange statement

               9. Others

  After-tax net of other misc. income
attributed to minority shareholders

7. Total of misc. incomes                                               157,685,892.23                             320,877,214.69

        Total of misc. incomes attributable
                                                                        157,666,841.17                             320,877,214.69
to the owners of the parent company

        Total misc gains attributable to the
                                                                             19,051.06
minor shareholders

8. Earnings per share:

        (1) Basic earnings per share                                               0.14                                       0.28

        (2) Diluted earnings per share                                             0.14                                       0.28

Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties
merged during the previous period is RMB0.00.


Legal representative: Xiong Jianming           CFO: Lin Kebing           Accounting Manager: Wu Bohua


6. Income Statement of the Parent Between the Beginning of the Year and to of the Report Period

                                                                                                                            In RMB

                     Item                      Amount occurred in the current period          Occurred in previous period

1. Turnover                                                              24,517,458.46                              22,907,827.70

        Less: Operation cost                                              3,603,421.23                               1,232,598.73

             Taxes and surcharges                                           969,078.70                                 975,716.94

             Sales expense

             Administrative expense                                      17,272,507.40                              15,924,036.36

             R&D cost

             Financial expenses                                          34,116,846.72                              16,687,577.76

               Including: interest cost                                  28,509,177.79                              18,446,237.53

                       Interest income                                      423,187.78                               1,990,291.21

        Add: other gains                                                    307,786.17                                 114,556.59

             Investment gains (“-” for
                                                                      1,001,636,564.66                              19,638,911.06
loss)

             Incl. Investment gains from
affiliates and joint ventures

                  Financial assets
derecognised as a result of amortized

                                                                                                                                  29
                                                    China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


cost

            Net open hedge gains (“-”
for loss)

            Gains from change of fair
                                                                                       -13,600,985.30
value (“-“ for loss)

            Credit impairment ("-" for
                                                    5,923.64
loss)

            Investment impairment loss
                                                                                           -81,061.84
("-" for loss)

            Investment gains ("-" for loss)                                                -55,902.90

2. Operational profit (“-” for loss)        970,505,878.88                            -5,896,584.48

        Plus: non-operational income               13,947.68                              261,144.66

        Less: non-operational expenditure        714,163.21                                 6,232.62

3. Gross profit (“-” for loss)              969,805,663.35                            -5,641,672.44

        Less: Income tax expenses              -7,497,054.35                            1,531,510.40

4. Net profit (“-” for net loss)            977,302,717.70                            -7,173,182.84

        (1) Net profit from continuous
                                              977,302,717.70                            -7,173,182.84
operation ("-" for net loss)

        (2) Net profit from discontinuous
operation ("-" for net loss)

5. After-tax net amount of other misc.
incomes

        (1) Other misc. incomes that
cannot be re-classified into gain and
loss

               1. Re-measure the change
in the defined benefit plan

               2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method

               3. Fair value change of
investment in other equity tools

               4. Fair value change of the
company's credit risk

               5. Others

        (2) Other misc. incomes that will
be re-classified into gain and loss

               1. Other comprehensive


                                                                                                   30
                                                                             China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


income that can be transferred to profit
or loss under the equity method

              2. Fair value change of
other debt investment

              3. Change in the fair value
of financial asset for sale

              4. Gains and losses from
changes in fair value of
available-for-sale financial assets

              5. Held-to-mature
investment reclassified as gain and loss
in the financial assets for sales

              6. Other credit investment
credit impairment provisions

              7. Cash flow hedge reserve

              8. Translation difference of
foreign exchange statement

              9. Others

6. Total of misc. incomes                                             977,302,717.70                             -7,173,182.84

7. Earnings per share:

       (1) Basic earnings per share

       (2) Diluted earnings per share


7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period

                                                                                                                          In RMB

                    Item                     Amount occurred in the current period          Occurred in previous period

1. Net cash flow from business
operations:

       Cash received from sales of
                                                                    1,891,062,422.83                          2,207,987,021.72
products and providing of services

       Net increase of customer deposits
and capital kept for brother company

       Net increase of loans from central
bank

       Net increase of inter-bank loans
from other financial bodies

       Cash received against original



                                                                                                                              31
                                                  China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


insurance contract

     Net cash received from reinsurance
business

     Net increase of client deposit and
investment

     Cash received as interest,
processing fee, and commission

     Net increase of inter-bank fund
received

     Net increase of repurchasing
business

     Net cash received from trading
securities

     Tax refunded                            3,159,514.49                             4,988,463.29

     Other cash received from business
                                            79,255,080.98                           292,273,568.66
operation

Sub-total of cash inflow from business
                                          1,973,477,018.30                        2,505,249,053.67
operations

     Cash paid for purchasing products
                                          1,499,926,065.43                        1,429,144,992.91
and services

     Net increase of client trade and
advance

     Net increase of savings in central
bank and brother company

     Cash paid for original contract
claim

     Net increase in funds dismantled

     Cash paid for interest, processing
fee and commission

     Cash paid for policy dividend

     Cash paid to and for the staff        237,800,254.07                           210,878,995.88

     Taxes paid                            211,775,200.67                           272,518,173.65

     Other cash paid for business
                                           432,430,889.07                           480,094,332.49
activities

Sub-total of cash outflow from business
                                          2,381,932,409.24                        2,392,636,494.93
operations

Cash flow generated by business
                                          -408,455,390.94                           112,612,558.74
operations, net


                                                                                                 32
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


2. Cash flow generated by investment:

     Cash received from investment
                                             4,552,412,407.01                        6,215,580,000.00
recovery

     Cash received as investment profit        57,732,090.85                            64,596,027.07

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other     13,225,319.48                            16,523,904.33
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
received

Sub-total of cash inflow generated from
                                             4,623,369,817.34                        6,296,699,931.40
investment

     Cash paid for construction of fixed
assets, intangible assets and other           138,895,689.84                            49,609,863.23
long-term assets

     Cash paid as investment                 4,821,419,000.00                        6,155,986,395.83

     Net increase of loan against pledge

     Net cash paid for acquiring
                                               61,934,830.31
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                    5,022,249,520.15                        6,205,596,259.06

Cash flow generated by investment
                                             -398,879,702.81                            91,103,672.34
activities, net

3. Cash flow generated by financing
activities:

     Cash received from investment

     Incl. Cash received from
investment attracted by subsidiaries
from minority shareholders

     Cash received from borrowed
                                              939,219,991.00                           708,000,000.00
loans

     Other cash received from financing
                                                   39,406.61
activities

Subtotal of cash inflow from financing
                                              939,259,397.61                           708,000,000.00
activities

     Cash paid to repay debts                 368,000,000.00                           780,577,298.43

     Cash paid as dividend, profit, or        299,128,516.71                           258,660,130.40


                                                                                                    33
                                                                          China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


interests

     Incl. Dividend and profit paid by
subsidiaries to minority shareholders

     Other cash paid for financing
                                                                    40,000,000.00                             99,804,777.52
activities

Subtotal of cash outflow from financing
                                                                   707,128,516.71                          1,139,042,206.35
activities

Net cash flow generated by financing
                                                                   232,130,880.90                           -431,042,206.35
activities

4. Influence of exchange rate changes
                                                                       506,834.88                              3,084,851.98
on cash and cash equivalents

5. Net increase in cash and cash
                                                                  -574,697,377.97                           -224,241,123.29
equivalents

     Plus: Balance of cash and cash
                                                                   956,190,890.68                            931,285,535.55
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                   381,493,512.71                            707,044,412.26
at the end of the period


8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period

                                                                                                                       In RMB

                  Item                    Amount occurred in the current period          Occurred in previous period

1. Net cash flow from business
operations:

     Cash received from sales of
                                                                    19,933,171.21                            153,999,350.74
products and providing of services

     Tax refunded

     Other cash received from business
                                                                 2,110,545,435.02                          1,409,325,820.93
operation

Sub-total of cash inflow from business
                                                                 2,130,478,606.23                          1,563,325,171.67
operations

     Cash paid for purchasing products
                                                                     2,295,025.64                              1,250,558.30
and services

     Cash paid to and for the staff                                 12,369,917.61                             10,320,094.96

     Taxes paid                                                      1,788,240.77                             19,134,230.81

     Other cash paid for business
                                                                 3,522,929,091.82                          1,684,835,834.03
activities

Sub-total of cash outflow from business                          3,539,382,275.84                          1,715,540,718.10



                                                                                                                           34
                                                      China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


operations

Cash flow generated by business
                                             -1,408,903,669.61                         -152,215,546.43
operations, net

2. Cash flow generated by investment:

     Cash received from investment
                                             1,805,000,000.00                         2,273,880,000.00
recovery

     Cash received as investment profit      1,101,636,564.66                            20,659,911.06

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other                                                    5,000.00
long-term assets

     Net cash received from disposal of
                                                                                         10,000,000.00
subsidiaries or other operational units

     Other investment-related cash
received

Sub-total of cash inflow generated from
                                             2,906,636,564.66                          2,304,544,911.06
investment

     Cash paid for construction of fixed
assets, intangible assets and other                 52,697.00                               576,678.00
long-term assets

     Cash paid as investment                 1,835,000,001.00                         2,321,870,000.00

     Net cash paid for acquiring
subsidiaries and other operational units

     Other cash paid for investment

Subtotal of cash outflows                    1,835,052,698.00                         2,322,446,678.00

Cash flow generated by investment
                                             1,071,583,866.66                            -17,901,766.94
activities, net

3. Cash flow generated by financing
activities:

     Cash received from investment

     Cash received from borrowed
                                               400,000,000.00                           700,000,000.00
loans

     Other cash received from financing
                                                    39,406.61
activities

Subtotal of cash inflow from financing
                                               400,039,406.61                           700,000,000.00
activities

     Cash paid to repay debts                   10,000,000.00                           250,000,000.00

     Cash paid as dividend, profit, or
                                               252,206,781.54                           199,919,295.82
interests


                                                                                                     35
                                                                        China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Other cash paid for financing
                                                                                                           99,804,777.52
activities

Subtotal of cash outflow from financing
                                                                 262,206,781.54                           549,724,073.34
activities

Net cash flow generated by financing
                                                                 137,832,625.07                           150,275,926.66
activities

4. Influence of exchange rate changes
                                                                         405.76                              -169,472.11
on cash and cash equivalents

5. Net increase in cash and cash
                                                                 -199,486,772.12                           -20,010,858.82
equivalents

     Plus: Balance of cash and cash
                                                                 281,594,621.80                           310,049,329.68
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                  82,107,849.68                           290,038,470.86
at the end of the period


II. Financial Statement Adjustment

1. The first implementation of the new financial instruments guidelines, new income standards, new lease
standards, adjustments the first implementation of the financial statements at the beginning of the year

√ Applicable □ Inapplicable
Consolidated Balance Sheet
                                                                                                                  In RMB

              Item                     December 31, 2018            January 1, 2019                 Adjustment

Current asset:

     Monetary capital                         1,389,062,083.76            1,389,062,083.76

     Settlement provision

     Outgoing call loan

     Transactional financial
assets

     Financial assets
measured at fair value with
variations accounted into
current income account

     Derivative financial
assets

     Notes receivable                           140,139,692.84              140,139,692.84

     Account receivable                       1,920,075,031.85            1,932,765,689.04                 12,690,657.19

     Receivable financing


                                                                                                                       36
                                                    China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Prepayment                    46,454,844.74         46,454,844.74

     Insurance receivable

     Reinsurance receivable

     Provisions of
Reinsurance contracts
receivable

     Other receivables            139,990,188.26       142,135,200.55                   2,145,012.29

         Including: interest
receivable

                 Dividend
receivable

     Repurchasing of
financial assets

     Inventory                    651,405,832.29       651,405,832.29

     Contract assets

     Assets held for sales

     Non-current assets due
in 1 year

     Other current assets           51,698,111.14        51,698,111.14

Total current assets             4,338,825,784.88     4,353,661,454.36                 14,835,669.48

Non-current assets:

     Loan and advancement
provided

     Debt investment

     Sellable financial assets     21,674,008.23                                       -21,674,008.23

     Other debt investment

     Investment held until
mature

     Long-term receivable

     Long-term share equity
                                   70,105,657.88         70,105,657.88
investment

     Investment in other
                                                         21,674,008.23                 21,674,008.23
equity tools

     Other non-current
financial assets

     Investment real estate      5,256,442,406.63     5,230,896,067.50

     Fixed assets                 455,274,241.83       455,274,241.83


                                                                                                   37
                                                    China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Construction in process       58,269,452.72         58,269,452.72

     Productive biological
assets

     Gas & petrol

     Use right assets

     Intangible assets             80,313,240.67         80,313,240.67

     R&D expense

     Goodwill

     Long-term amortizable
                                     2,114,331.46         2,114,331.46
expenses

     Deferred income tax
                                  356,474,925.76       356,474,925.76                   -3,305,914.45
assets

     Other non-current assets      19,360,083.67         19,360,083.67

Total of non-current assets      6,320,028,348.85     6,316,722,434.40                  -3,305,914.45

Total of assets                 10,658,854,133.73    10,670,383,888.76                 11,529,755.03

Current liabilities

     Short-term loans             208,000,000.00       208,000,000.00

     Loans from Central
Bank

     Call loan received

     Transactional financial
liabilities

     Financial liabilities
measured at fair value with
variations accounted into
current income account

     Derivative financial
                                     1,625,725.00         1,625,725.00
liabilities

     Notes payable                507,864,518.19       507,864,518.19

     Account payable             1,039,630,798.64     1,039,630,798.64

     Prepayment received          278,577,848.54       278,577,848.54

     Contract liabilities

     Selling of repurchased
financial assets

     Deposit received and
held for others

     Entrusted trading of


                                                                                                   38
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


securities

     Entrusted selling of
securities

     Employees' wage
                                    44,513,062.17         44,513,062.17
payable

     Taxes payable                 107,709,999.19       107,709,999.19

     Other payables                813,118,699.84       813,118,699.84

        Including: interest
                                     2,098,971.44          2,098,971.44
payable

                Dividend
payable

     Fees and commissions
payable

     Reinsurance fee payable

     Liabilities held for sales

     Non-current liabilities
                                   200,000,000.00       200,000,000.00
due in 1 year

     Other current liabilities       9,328,682.25          9,328,682.25

Total current liabilities         3,210,369,333.82     3,210,369,333.82

Non-current liabilities:

     Insurance contract
provision

     Long-term loans              1,193,978,153.39     1,193,978,153.39

     Bond payable

        Including: preferred
stock

                Perpetual
bond

     Lease liabilities

     Long-term payable

     Long-term employees’
wage payable

     Anticipated liabilities         6,831,162.99          6,831,162.99

     Deferred earning               10,401,161.30         10,401,161.30

     Deferred income tax
                                  1,042,086,700.35     1,042,086,700.35
liabilities

     Other non-current


                                                                                                    39
                                                                                  China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


liabilities

Total of non-current
                                                 2,253,297,178.03                   2,253,297,178.03
liabilities

Total liabilities                                5,463,666,511.85                   5,463,666,511.85

Owner’s equity:

     Share capital                               1,155,481,686.00                   1,155,481,686.00

     Other equity tools

         Including: preferred
stock

                Perpetual
bond

     Capital reserves                                 1,454,191.59                       1,454,191.59

     Less: Shares in stock                          10,831,437.66                       10,831,437.66

     Other miscellaneous
                                                      7,382,087.59                       2,215,662.01                       -5,166,425.58
income

     Special reserves

     Surplus reserves                              120,475,221.40                     121,000,081.43                          524,860.03

     Common risk provisions

     Retained profit                             3,921,225,872.96                   3,937,397,193.54                       16,171,320.58

Total of owner’s equity
                                                 5,195,187,621.88                   5,206,717,376.91                       11,529,755.03
belong to the parent company

     Minor shareholders’
equity

Total of owners’ equity                         5,195,187,621.88                   5,206,717,376.91                       11,529,755.03

Total of liabilities and
                                               10,658,854,133.73                   10,670,383,888.76                       11,529,755.03
owner’s interest

About the adjustment
     In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37
- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires
enterprises listed in China to implement the above accounting standards from January 1, 2019.
     In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets.    Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other

                                                                                                                                         40
                                                                      China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


comprehensive income at the beginning of 2019.


Balance Sheet of the Parent Company
                                                                                                                In RMB

              Item                 December 31, 2018              January 1, 2019                 Adjustment

Current asset:

     Monetary capital                            410,118,157.55           410,118,157.55

     Transactional financial
assets

     Financial assets
measured at fair value with
variations accounted into
current income account

     Derivative financial
assets

     Notes receivable                        200,000,000.00               200,000,000.00

     Account receivable                             471,039.12                471,039.12                       8,595.25

     Receivable financing

     Prepayment                                    6,733,047.16             6,733,047.16

     Other receivables                       822,543,653.04               822,543,653.04                    100,970.95

         Including: interest
receivable

                 Dividend
                                             100,000,000.00               100,000,000.00
receivable

     Inventory

     Contract assets

     Assets held for sales

     Non-current assets due
in 1 year

     Other current assets                           919,388.18                919,388.18

Total current assets                        1,440,785,285.05            1,440,894,851.25                    109,566.20

Non-current assets:

     Debt investment

     Sellable financial assets                    21,674,008.23                                          -21,674,008.23

     Other debt investment

     Investment held until
mature


                                                                                                                     41
                                                   China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Long-term receivable

     Long-term share equity
                                 983,339,494.35       983,339,494.35
investment

     Investment in other
                                                        21,674,008.23                 21,674,008.23
equity tools

     Other non-current
financial assets

     Investment real estate      309,189,866.37       309,189,866.37

     Fixed assets                 53,784,811.23         53,784,811.23

     Construction in process

     Productive biological
assets

     Gas & petrol

     Use right assets

     Intangible assets              2,112,301.97         2,112,301.97

     R&D expense

     Goodwill

     Long-term amortizable
                                     917,499.68           917,499.68
expenses

     Deferred income tax
                                  34,555,598.81         34,528,207.26                    -27,391.55
assets

     Other non-current assets

Total of non-current assets     1,405,573,580.64     1,405,546,189.09                    -27,391.55

Total of assets                 2,846,358,865.69     2,846,441,040.34                     82,174.65

Current liabilities

     Short-term loans            200,000,000.00       200,000,000.00

     Transactional financial
liabilities

     Financial liabilities
measured at fair value with
variations accounted into
current income account

     Derivative financial
liabilities

     Notes payable

     Account payable                 676,941.85           676,941.85

     Prepayment received             733,274.16           733,274.16


                                                                                                  42
                                                     China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Contract liabilities

     Employees' wage
                                     2,145,763.39          2,145,763.39
payable

     Taxes payable                     341,004.65           341,004.65

     Other payables                300,006,406.51       300,006,406.51

        Including: interest
                                       740,208.33           740,208.33
payable

                Dividend
payable

     Liabilities held for sales

     Non-current liabilities
due in 1 year

     Other current liabilities

Total current liabilities          503,903,390.56       503,903,390.56

Non-current liabilities:

     Long-term loans               500,000,000.00       500,000,000.00

     Bond payable

        Including: preferred
stock

                Perpetual
bond

     Lease liabilities

     Long-term payable

     Long-term employees’
wage payable

     Anticipated liabilities

     Deferred earning

     Deferred income tax
                                    64,130,617.41         64,130,617.41
liabilities

     Other non-current
liabilities

Total of non-current
                                   564,130,617.41       564,130,617.41
liabilities

Total liabilities                 1,068,034,007.97     1,068,034,007.97

Owner’s equity:

     Share capital                1,155,481,686.00     1,155,481,686.00




                                                                                                    43
                                                                                  China Fangda Group Co., Ltd. 2019 Q3 Report (Full)


     Other equity tools

         Including: preferred
stock

                Perpetual
bond

     Capital reserves                                  360,835.52                          360,835.52

     Less: Shares in stock                          10,831,437.66                       10,831,437.66

     Other miscellaneous
                                                      8,756,553.46                       3,590,127.88                       -5,166,425.58
income

     Special reserves

     Surplus reserves                              120,475,221.40                     121,000,081.43                          524,860.03

     Retained profit                               504,081,999.00                     508,805,739.20                         4,723,740.20

Total of owners’ equity                         1,778,324,857.72                   1,778,407,032.37                            82,174.65

Total of liabilities and
                                                 2,846,358,865.69                   2,846,441,040.34                            82,174.65
owner’s interest

About the adjustment
     In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",
"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37
- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires
enterprises listed in China to implement the above accounting standards from January 1, 2019.
     In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,
2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument
investments and other non-current financial assets.    Non-transaction equity instrument investment is designated as financial assets
measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the
same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new
financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when
preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other
comprehensive income at the beginning of 2019.


2. Description of the 2019 implementation of the new financial instrument criteria, new lease standard
retrospective adjustment of the previous period comparison data

□ Applicable √ Inapplicable


3. Auditor’s Report

Whether the Q3 report is audited
□ Yes √ No
The Q3 Report is not audited.



                                                                                                                                         44