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方大B(200055)公告正文

方 大B:2013年半年度报告(英文版)

公告日期:2013-07-30

                      China Fangda Group Co., Ltd.   2013Interim Report




China Fangda Group Co., Ltd.

     2013 Interim Report




          Jul. 2013




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                                               China Fangda Group Co., Ltd.   2013Interim Report




         I Important Statement, Table of Contents and Definitions


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

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.

    No cash or share dividend will be distributed, nor will any reserve

capitalized by the Company.

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

Financial Officer, and Mr. Chen Yonggang, the manager of accounting

department declare: the financial report carried in this report is authentic and

completed.

    Forward-looking statements involved in this report including future plans

do not make any material promise to investors. Investors should pay attention to

investment risks.




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                                                                                                                 China Fangda Group Co., Ltd.                          2013Interim Report




                                                                       Table of Contents



I Important Statement, Table of Contents and Definitions .......................................................................................................................2
II Company Profile ..................................................................................................................................................................................6
III Financial Highlight .............................................................................................................................................................................7
IV Board of Directors Report ...............................................................................................................................................................10
V Significant Events ..............................................................................................................................................................................20
VI Changes in Share Capital and Shareholders .....................................................................................................................................23
VII Particulars about the Directors, Supervisors and Senior Management ............................................................................................27
VIII Financial Statements ......................................................................................................................................................................28
IX Documents for Reference ...............................................................................................................................................................130




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                                                                China Fangda Group Co., Ltd.       2013Interim Report




                                             Definitions


                                     Define
                     Terms                                                   Description
                                      d as

                                     Define
Fangda Group, company, the Company            China Fangda Group Co., Ltd.
                                      d as

                                     Define
Articles of Association                       Articles of Association of China Fangda Group Co., Ltd.
                                      d as

                                     Define
Meeting of shareholders                       Meetings of shareholders of China Fangda Group Co., Ltd.
                                      d as

                                     Define
Board of Directors                            Board of Directors of China Fangda Group Co., Ltd.
                                      d as

                                     Define
Supervisory Committee                         Supervisory Committee of China Fangda Group Co., Ltd.
                                      d as

                                     Define
Banglin Co.                                   Shenzhen Banglin Technologies Development Co., Ltd.
                                      d as

                                     Define
Shilihe Co.                                   Shenzhen Shilihe Investment Co., Ltd.
                                      d as

                                     Define
Shengjiu Co.                                  Shengjiu Investment Ltd.
                                      d as

                                     Define
Fangda Decoration                             Shenzhen Fangda Decoration Engineering Co., Ltd.
                                      d as

                                     Define
Fangda Automatic                              Shenzhen Fangda Automatic System Co., Ltd.
                                      d as

                                     Define
Jiangxi New Material                          Fangda New Materials (Jiangxi) Co., Ltd.
                                      d as

                                     Define
Shenyang Fangda                               Shenyang Fangda Semi-conductor Lighting Co., Ltd.
                                      d as

                                     Define
Fangda Guoke                                  Shenzhen Fangda Guoke Optical & Electronics Co., Ltd.
                                      d as

                                     Define
Shenzhen Woke                                 Shenzhen Woke Semi-conductor Lighting Co., Ltd.
                                      d as

                                     Define
Hong Kong Junjia                              Hong Kong Junjia Group Co., Ltd.
                                      d as

Fangda Aluminium                     Define Jiangxi Fangda New Type Aluminum Co., Ltd.



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                                                           China Fangda Group Co., Ltd.       2013Interim Report


                                 d as

                                Define
Fangda Yide Co.                          Shenzhen Fangda Yide New Material Co., Ltd.
                                 d as

                                Define
Dongguan New Material                    Dongguan Fangda New Material Co., Ltd.
                                 d as

                                Define
Kexunda Co.                              Shenzhen Kexunda Software Co., Ltd.
                                 d as

                                Define
Fangda Property                          Shenzhen Fangda Property Development Co., Ltd.
                                 d as

                                Define
Chengdu New Material                     Chengdu Fangda New Material Co., Ltd.
                                 d as

                                Define
Shenyang Decoration                      Fangda Decoration Engineering (Shenyang) Co., Ltd.
                                 d as

                                Define
CSRC                                     China Securities Regulatory Commission
                                 d as

                                Define
SZSE                                     Shenzhen Stock Exchange
                                 d as

                                Define
Sponsor, Zhongshan Securities            Zhongshan Securities Co., Ltd.
                                 d as




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                                                                          China Fangda Group Co., Ltd.     2013Interim Report




                                                 II Company Profile

1. Company Profile

Stock ID                        Fangda Group, Fangda B                 Stock code                000055, 200055

Modified stock ID (if any)      None

Stock Exchange                  Shenzhen Stock Exchange

Chinese name                    China Fangda Group Co., Ltd.

Chinese abbreviation (if any)   Fangda Group

English name (if any)           CHINA FANGDA GROUP CO., LTD.

English abbreviation (if any)   CFGC

Legal representative            Xiong Jianming


2. Contacts and liaisons

                                                     Secretary of the Board              Representative of Stock Affairs

Name                                       Zhou Zhigang                             Guo Lingchen

                                           Fangda Town, Xili Longjing, Nanshan      Fangda Town, Xili Longjing, Nanshan
Address
                                           District, Shenzhen, PRC                  District, Shenzhen, PRC

Tel.                                       86(755)26788571 ext. 6622                86(755)26788571 ext. 6622

Fax                                        86(755)26788353                          86(755)26788353

Email                                      zqb@fangda.com                           zqb@fangda.com


3. Other information

1. Contact information

Whether the Companys registered address, office address and postal code, website or email has been changed
during the report period
□ Applicable √ Inapplicable
The Companys registered address, office address and postal code, website or email has remained unchanged
during the report period. For details, please refer to the 2012 Annual Report.

2. Information disclosure and inquiring

Whether the information disclosure and inquiry address has been changed during the report period
□ Applicable √ Inapplicable
Please refer to the 2012 annual report for the newspapers and websites where the Companys information is

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                                                                              China Fangda Group Co., Ltd.        2013Interim Report


disclosed. The inquiry address of the interim report has remained unchanged during the report period.

3. Registration changes

Whether the registration has changed during the report period
□ Applicable √ Inapplicable
Please refer to 2012 annual report for the Companys registration date and address, business license No., tax
registration No. and organization registration code, which have remained unchanged during the report period.

4. Other information

Whether other information is changed during the report period
□ Applicable √ Inapplicable



                                              III Financial Highlight

1. Financial Highlight

The Company retroactively adjusts or restates financial statistics of the previous years because of changes in
account policies and correction of accounting errors.
□ Yes √ No
                                                 This report period            Same period last year       Year-on-year change (%)

Turnover (yuan)                                          736,828,039.88                  529,289,597.80                     39.21%

Net profit attributable to shareholders of
                                                          39,361,593.42                   12,643,297.40                    211.32%
the listed company (yuan)

Net profit attributable to the shareholders
of the listed company and after deducting                 37,591,750.20                    5,980,785.25                    528.54%
of non-recurring gain/loss (RMB)

Net cash flow generated by business
                                                           1,089,862.59                  -68,069,752.93
operation (RMB)

Basic earnings per share (yuan/share)                                 0.05                          0.02                      150%

Diluted Earnings per share (yuan/share)                               0.05                          0.02                      150%

Weighted average net income/asset ratio
                                                                  3.54%                           1.17%                      2.37%
(%)

                                                                             End of the same period last
                                              End of this report period                                    Year-on-year change (%)
                                                                                        year

Total asset (RMB)                                      2,482,878,735.44                2,327,802,889.51                      6.66%

Net profit attributable to the shareholders
                                                       1,115,433,276.12                1,098,612,195.57                      1.53%
of the listed company (RMB)



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                                                                              China Fangda Group Co., Ltd.            2013Interim Report


2. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profits and assets in financial statements disclosed according to the international and Chinese
account standards

                                                                                                                                   In RMB

                                  Net profit attributable to the shareholders of the    Net profit attributable to the shareholders of the
                                                    listed company                                       listed company

                                       Current period          Previous period             Closing amount            Opening amount

On Chinese accounting
                                           39,361,593.42              12,643,297.40           1,115,433,276.12          1,098,612,195.57
standards

Items and amounts adjusted according International Accounting Standards

Capitalization of borrowing
                                                        0.00                     0.00             4,763,398.24               4,763,398.24
expenses

On international accounting
                                           39,361,593.42              12,643,297.40           1,120,196,674.36          1,103,375,593.81
standards


2. Differences in net profits and assets in financial statements disclosed according to the overseas and Chinese
account standards

                                                                                                                                   In RMB

                                  Net profit attributable to the shareholders of the    Net profit attributable to the shareholders of the
                                                    listed company                                       listed company

                                       Current period          Previous period             Closing amount            Opening amount

On Chinese accounting
                                           39,361,593.42              12,643,297.40           1,115,433,276.12          1,098,612,195.57
standards

Items and amounts adjusted according to overseas accounting standards


3. Explanation of the differences in accounting data under domestic and foreign accounting standards

     Net assets attributable to the listed companys shareholders calculated according to the IAS is
RMB4,763,398.24 higher than that calculated according to the domestic accounting standards, mainly attributable
to the capitalization of borrow expenses before the domestic Enterprise Accounting Standard was implemented on
January 1, 2007.

3. Accidental gain/loss item and amount

                                                                                                                                   In RMB

                               Items                                             Amount                              Notes

Non-current asset disposal gain/loss (including the write-off part
                                                                                          -25,647.65
for which assets impairment provision is made)


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                                                                  China Fangda Group Co., Ltd.   2013Interim Report


Subsidies accounted into the current income account (except the
government subsidy closely related to the enterprises business             50,000.00
and based on unified national standard quota)

Write-back of impairment provision of receivables for which
                                                                          250,000.00
impairment test is performed individually

Other non-business income and expenditures other than the above         1,808,050.23

Less: influenced amount of income tax                                     354,213.16

     Influenced amount of minority shareholders equity
                                                                          -41,653.80
(after-tax)

Total                                                                   1,769,843.22              --

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




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                                                                  China Fangda Group Co., Ltd.     2013Interim Report




                                   IV Board of Directors Report

1. Summary

     During the report period, the Chinese economic slowdown continues and the pressure on the economy is
likely to increase. Subdued by the tightened money supply, the Company has adhered to the its main business
including the curtain wall and screen door based on independent innovation and has increased the market share
thanks to its outstanding brand equity, technology and services. Increases in orders, projects, sales revenue and
profit margin reflect the Companys strong growth in various areas. During the report period, the Company
secured orders worth RMB1.578 billion, yielding operating revenue of RMB736,828,000, up 210% and 39.21%
year-on-year respectively. The net profit attributable to owners of the parent soared 211.32% to RMB39,361,600
and the net profit after deducting of non-recurring gain/loss grew 528.54%, showing strong growth of the
profitability of main businesses. By the end of the report period, the order reserve totals RMB2.048 billion, which
accounts for 277.95% of the operating revenue of the first half of the year, bolstering the full years business
operating.
      1. Explosive increase in curtain wall system and material orders
     During the report period, the curtain wall system and material business, as main contributors of sales
revenue and profits of the Company, have maintained strong growth momentum, with an explosive increase in
orders from across the country. The Company has won bids in high-end low-carbon curtain wall projects
including SOHO China Shanghai Bund project, Beijing Yanxi Lake International Club (Core Island) villa,
landscape tower and hotel, Hebei Langfang Sheraton Hotel, Hebei Sanheyanjiao Seoul Town Sweet Home Phase
I, Nanjing Heixi General Hospital (Heixi Children Hospital), Fuzhou Rongqiao Riverbank Plaza, Fuzhou Huaban
Building, Xiamen Anmei Optical-Electric R&D Building, Chengdu Huazhi Plaza residential buildings, Nanjing
Jiangsu Bank Building, Guangzhou G.T. Land Holdings Zhujiang New Town D3-2 District, Shenzhen Electronics
Group Hitachi Industry Zone Renovation project, Shenzhen Rainbow Headquarters Building, Shenzhen CITIC
Bank Building, Shenzhen Vanke One City 1st District, Wuhan Wanda Central Cultural Zone J1 Hanxiu Theatre.
In the first half of the year, new orders of the curtain wall system and materials totaled RMB1.488 billion,
generating sales revenue of RMB671,324,100, up 176% and 42.24% year on year respectively.
     Thanks to the outstanding technology, brand equity and services, Fangda curtain wall systems and material
products have emerged as the leading high-end products in China, boosting the market demand. To meeting the
expanding market demand, the Company has continued to improve the hardware facilities and boost the output
capacity. During the report period, the Dongguan Songshanhu Production Base was put into operation. The
curtain wall system and material business landscape has taken shape with Shenzhen as the headquarters,
Dongguan Songshanhu as the production base in the south, Beijing in the north, Chengdu in the southwest, and
Shanghai and Nanchang in the east. The production bases in Dongguan and Nanchang are the largest and most
modern ones in China and the world. Currently, all the five production bases have been put into operation,
boosting the Companys output capability and paving the way to increase the market share and elevate
competiveness. Given the Companys leading position in the curtain wall system and material industry, the curtain
wall system and material business is likely to maintain the fast growth over the past few years.
     During the report period, Fangda Decoration, a wholly-owned subsidiary specialized in curtain wall design
and engineering, won the 2012 Guangdong Construction Engineering High Quality Prize and the title of

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                                                                 China Fangda Group Co., Ltd.    2013Interim Report


Guangdong Nationwide Well-known Brand. Jiangxi New Material, a wholly-owned subsidiary specialized in
curtain wall material production, won the title of 2012 Leader Manufacturer and its product Fangda single
aluminum plate 2.0/2.5/3.0 won the title of Jiangxi Well-Known Products.
     2. Rail transport equipment business grasps opportunities to increase market shares
     As Chinas urbanization accelerates, the urban rail transport construction embraces a gold development
opportunity. Riding the tide of massive rail transport construction, the Company has made remarkable headway in
market development, further increasing its market shares. Thanks to the leading performance, stable quality, high
reliability and pleasant outer appearance, the Companys products have gained wide favor from customers. This
year, the Companys wholly-owned subsidiary Fangda Automation won bids in a serious screen door projects
including Xian railway line No.3, Fuzhou railway line No.1, Nanchang railway line No.1, Shenzhen railway
Longhua line (screen door renovation) and Hubei inter-city railway (Wuhan high-speed railway) project. Projects
won by the subsidiary accounted for 60% of all the screen door projects in China, reflecting the Companys strong
market position, brand equity and leading position in the domestic screen door industry. During the report period,
revenue from sales of screen doors has grown 33.72% year on year. After more than a decades innovation and
development, screen doors developed by the Company with intellectual property rights have been widely used in
more than 10 domestic cities including Beijing, Shenyang, Dalian, Tianjin, Shanghai, Nanjing, Fuzhou, Xian,
Wuhan, Nanchang, Guangzhou, Dongguan and Shenzhen as well as developed cities in the Asia-Pacific region
including Singapore, Hong Kong and Taipei. Currently, about 60% of metro cities have adopted Fangda's railway
screen doors, which have grasped the largest share in the domestic screen door market. As the Chinese economy
continues to grow and urbanization gathers steam, the country will further step up railway construction. Therefore,
the growth momentum for the domestic railway screen door industry will remain strong and bolster the
Companys screen door business.
      3. Vigorously pace up the Fangda Town Renovation Project
     The Companys Fangda Town project lying in Shenzhen Nanshan Xili Longjing has been fitted into 2012
Shenzhen Urban Renewal Plan The First Projects by Shenzhen Planning and Land Resources Committee and has
been ratified by Shenzhen City Government. Currently, the plan has been reviewed on the 2013 10th technical
session of the Shenzhen Urban Planning and Resources Commission and will be disclosed between June 25, 2013
and July 24, 2013. If the plan can be approved, the Company will implement it immediately, which will boost the
companys value and bolster the Companys long-term development.
     4. Play an active role in social charitable activities
     As an industry leader, the Company has continued playing an active role in social charitable activities and
seeing donations as part of its social responsibilities. After the earthquake in Ya'an on April 20, the Company
called on the staff to donate money for victims in the first place to help relieve the disaster. Employees of the
Company in cities across China including Beijing, Shanghai, Chengdu, Shenyang, Nanchang and Dongguan
donated nearly RMB270,000. In addition, the Company donated another RMB50,000 to the Jiangxi Anle Hope
Primary School and RMB60,000 to Shenzhen Polytechnic to support students from poor families. The Company
has also received titles including Active Company in Social Charity and Charitable Enterprise.

2. Main business analysis

Overview
       During the report period, the operating revenue totals RMB737 million, up 39.21% year on year. The
gross margin has remained on the same level as the previous year. Due to an increase in R&D investment, costs

                                                                                                                11
                                                                        China Fangda Group Co., Ltd.     2013Interim Report


climbed during the report period. Net cash flow from operating activities increases substantially from the previous
year.
Year-on-year changes in major financial statistics
                                                                                                                         In RMB

                             This report period     Same period last year     YOY change (% )          Cause of change

Turnover                           736,828,039.88          529,289,597.80                 39.21% Large increase in orders

                                                                                                   Same growth with the
Operation cost                     584,493,820.44          418,086,030.44                  39.8%
                                                                                                   revenue

Sales expense                       17,614,987.09            15,164,029.76                16.16%

Administrative expense              57,347,495.40            55,896,227.34                  2.6%

Financial expenses                  12,213,522.40            11,361,459.25                  7.5%

Income tax expenses                  7,795,908.42             7,907,457.04                -1.41%

                                                                                                   Increased investment in
R&D investment                      50,595,655.72            26,214,516.32                93.01% research and
                                                                                                   development

Cash flow generated by                                                                             Increased effects paid to
                                     1,089,862.59           -68,069,752.93
business operation, net                                                                            collect receivables

Cash flow generated by
                                   -55,371,598.84           -45,288,558.55
investment activities, net

                                                                                                   Cash dividends
Net cash flow generated
                                    61,738,199.71            98,954,951.32               -37.61% distributed during the
by financing
                                                                                                   report period

                                                                                                   Increase in net cash flow
Net increasing of cash
                                     7,456,427.28           -14,395,656.89                         generated by business
and cash equivalents
                                                                                                   operation

Major changes in profit composition or sources during the report period
□ Applicable √ Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in the Companys IPO prospectus, fund raising prospectus and
capital reorganization report into this report period
□ Applicable √ Inapplicable
No future development and plan disclosed in the Companys IPO prospectus, fund raising prospectus and capital
reorganization report is delayed into this report period.
Implementation of business plans disclosed in previous periods in this period
     Based on the plan of becoming a leader in the curtain wall system and material industry, the Company has
made remarkable headway in terms of sales turnover and order number. In this report period, new orders of the
curtain wall system and materials totaled RMB1.488 billion, generating sales revenue of RMB671,324,100, up
176% and 42.24% year on year respectively. Projects won by the subsidiary accounted for 60% of all the subway
screen door projects in China, reflecting the Companys strong market position, brand equity and leading position


                                                                                                                               12
                                                                        China Fangda Group Co., Ltd.        2013Interim Report


in the domestic screen door industry. During the report period, the Dongguan Songshanhu Production Base was
put into operation. The curtain wall system and material business landscape has taken shape with Shenzhen as the
headquarters, Dongguan Songshanhu as the production base in the south, Beijing in the north, Chengdu in the
southwest, and Shanghai and Nanchang in the east. The production bases in Dongguan and Nanchang are the
largest and most modern ones in China and the world. Currently, all the five production bases have been put into
operation, boosting the Companys output capability and paving the way to increase the market share and elevate
competiveness. During the report period, the plan has been reviewed on the 2013 10th technical session of the
Shenzhen Urban Planning and Resources Commission and will be disclosed between June 25, 2013 and July 24,
2013. Currently, the Fangda Town Renovation Project has been implemented as planned.

3. Business composition

                                                                                                                       In RMB

                                                                          Year-on-year     Year-on-year
                                                                                                               Year-on-year
                                                      Annual interest      change in         change in
                     Turnover        Operation cost                                                          change in gross
                                                         rate (%)       operating revenue operating costs
                                                                                                              profit rate (%)
                                                                              (%)               (%)

Industry

Metal production    671,324,125.17   549,199,043.56           18.19%             42.24%            44.57%              -1.32%

Railroad industry    45,126,972.67    29,541,447.74           34.54%             33.72%            10.51%              13.75%

Product

Curtain wall
system and          671,324,125.17   549,199,043.56           18.19%             42.24%            44.57%              -1.32%
materials

Metro screen
                     45,126,972.67    29,541,447.74           34.54%             33.72%            10.51%              13.75%
door

District

Domestic sales      696,184,686.27   566,604,060.60           18.61%             41.19%            41.93%              -0.42%

Export revenue       20,281,451.94    12,160,812.70           40.04%             40.85%            15.37%              13.24%


5 Core Competitiveness Analysis

(1) Curtain wall system and material
     1. Expertise and brand competitiveness
     In response to the national call for energy saving and emission reduction, the Company has aggressively
develop solar electric and optimal and energy-saving curtain walls, developing a series of domestic and global
leading solar and energy-saving curtain wall products. The Company owns 314 curtain wall and material patents
(including 20 invention patents) and one software copyright, ranking top among domestic peers. It has achieved
many firsts in the industry and created incomparable brand equity, making it an optimal choice in the domestic
high-end curtain wall and material market. Jiangxi New Material, a wholly-owned subsidiary specialized in
curtain wall material production, and Fangda Decoration, a wholly-owned subsidiary specialized in engineering,


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                                                                China Fangda Group Co., Ltd.    2013Interim Report


are both national hi-tech companies.
     2. Focusing on the high-end market to edge out competitors
     Amid the fierce market competition, the Company has focused on the high-end energy-saving curtain wall
market and technical integration to improve high-end project quality. Moreover, it has focused resources on
high-end curtain wall engineering and won several Luban awards, Zhan Tianyou Civil Engineering awards and
Classic Construction for the 50th Anniversary of the Foundation of the Peoples Republic of China, High-Quality
Construction, White Magnolia Prize and Customer Satisfactory Engineering and the title of “Top 50 Competitive
Chinese Curtain Wall Provider”. The Company has build a leading brand and created a clear edge in the high-end
curtain wall market.
     3. Well-developed industry base landscape
     Thanks to continued investment in facilities, the Company has established a national business landscape with
Shenzhen as the headquarters, Dongguan Songshanhu as the base in the south, Beijing in the north, Chengdu in
the southwest and Shanghai and Nanchang in the east. The Dongguan Songshanhu and Nanchang bases are the
largest and most advanced curtain wall system and material production bases in China and across the world,
fueling the Company to increase its market share and competitiveness.
(2) Rail transport equipment business
     1. Technical advantage
     Through continued independent innovation, the Company has developed the global leading metro screen
door system with full intellectual property right and broken the monopoly of overseas competitors. The Company
has also compiled the Rail Transport Station Screen Door Standard, which is the first of its kind in China. The
standard was approved in April 2006 and was implemented on March 1, 2007. As the first standard in the industry
in China, the standard has played a key role in guiding the development of Chinas rail transport screen door
industry and enabled the Company a dominant lead in the industry. Currently, the Company has 193 metro screen
door patents, including 29 invention patents. The Company also has four computer software copyrights.
Wholly-owned subsidiary Fangda Automation, which is specialized in screen door production, is a national
hi-tech company.
2. Brand equity and market share
     After more than a decades innovation and development, screen doors developed by the Company have been
widely used in more than 10 domestic cities including Beijing, Shenyang, Dalian, Tianjin, Shanghai, Nanjing,
Fuzhou, Xian, Wuhan, Nanchang, Guangzhou, Dongguan and Shenzhen as well as developed cities in the
Asia-Pacific region including Singapore, Hong Kong and Taipei. Currently, about 60% of metro cities have
adopted Fangda's railway screen doors, which have grasped the largest share in the domestic screen door market,
making the Company has the industry leader in terms of the market share, brand visibility, patent number,
standard and maintenance services.




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                                                                                China Fangda Group Co., Ltd.               2013Interim Report


V. Investment

1. External equity investment

(1) The Company has no external investment in the report period.

(2) The Company does not hold shares in financial enterprises in the report period.

(3) The Company does not invest in securities or hold any shares in other listed companies during the report
period.

2. Trust wealth management, investment in derivatives and entrustment loan

(1) Trust wealth management

                                                                                                                                 In RMB10,000

                                                                                 Commissi Principal Impairme                           Actual
                          Related
           Relations                  Product                                        on      recovered       nt           Estimated gain/loss
 Trustee                transactio               Amount Start date End date
               hip                      type                                     confirmat during the provision             profit    during the
                             n
                                                                                 ion mode     period       (if any)                    period

                                                                                 Confirme
                                                                                 d by
                                     Breakeve                                    investmen
Pingan     Non-affili                n and                  June 27,   August    t return
                        No                       2,000.00                                              0              0          23             0
Bank       ated party                flexible               2013       27, 2013 on assets
                                     return                                      after
                                                                                 deducting
                                                                                 costs

Total                                             2000,00       --        --         --                0              0          23             0

Source of trust wealth management capital Self-capital

Unrecovered overdue principal and return,
                                                                                                                                                0
accumulative

Lawsuit (if applicable)                         Inapplicable


(2) The Company has no investment in derivatives in the report period.

(3) The Company has no entrustment loan in the report period.

3. Use of raised capital

(1) Overview

                                                                                                                                 In RMB10,000


                                                                                                                                                15
                                                                                   China Fangda Group Co., Ltd.             2013Interim Report


Total amount of the raised capital                                                                                                      33,658.69

Total raised capital invested in the report period                                                                                       2,650.36

Total accumulative raised capital invested                                                                                              29,705.72

Amount of adjusted raised capital                                                                                                                  0

Accumulative amount of adjusted raised capital                                                                                               6,000

Proportion of accumulative adjusted raised capital (%)                                                                                    17.83%

                                                        Notes to use of raised capital

By the end of the report period, the Company has strictly comply with the Instruction on Standard Operation of PLCs on the Main
Board of Shenzhen Stock Exchange and provisions for use and management of raised capital of the Company to deposit and use the
raised capital. Accumulate adjusted raised capital: the RMB60 million previously for the metro screen door production expansion
project was transferred into the energy-saving curtain wall and optical-electric curtain wall production expansion project.


(2) Promised raised-capital-based projects

                                                                                                                                    In RMB10,000

                                 If                                                   Investme
                                                                                                     Date
                           investme Promised                             Accumul           nt
Project promised to be                                                                             when the                 Whether       Any
                           nt project     total    Adjusted Investme       ative      progress                 Profit
invested with the raised                                                                            project                   the        major
                                 is     investme     total    nt in the investme         by the               realized
capital and investment                                                                              become                  estimate change in
                           changed nt of the investme          report    nt by the end of the                  in the
of the excessive raised                                                                             useable                 profit is        the
                           (includin     raised      nt (1)    period   end of the period(%                   period
         capital                                                                                      as                    realized feasibility
                           g partial     capital                         period (2)      )(3)=
                                                                                                   proposed
                            change)                                                      (2)/(1)

Promised investment projects

Energy-saving and PV
                                                                                                   June 30,
curtain wall production Yes               21,000      27,000 2,416.48 23,882.31          88.45%                                         No
                                                                                                   2013
expansion project

                                                                                                   Decembe
2. PSD production
                           Yes          12,658.69 6,658.69      233.88 5,823.41          87.46% r 31,                                   No
expansion project
                                                                                                   2012

Subtotal of promised
                                 --     33,658.69 33,658.69 2,650.36 29,705.72             --          --                      --            --
investment projects

Investment of excessive raised capital

Total                            --     33,658.69 33,658.69 2,650.36 29,705.72             --          --               0      --            --

Reason or situation that
not on schedule (on        The construction completion of the Dongguan Technology Zone is later than planed.
specific project)

Notes to major changes
                           None
in project feasibility



                                                                                                                                                   16
                                                                           China Fangda Group Co., Ltd.        2013Interim Report


Amount, purpose and
use of excessive raised Inapplicable
capital

                        Applicable

                        Occurred in previous years
Changes in
implementation place    To improve the Company's industry landscape, simplify the Companys management and reduce

of investment funded    management costs, the 24th meeting of the 5th term of the Board of the Company approved the proposal of

by raised capital       changing the implementation place of the energy-saving and photo-electric curtain wall production
                        expansion project and increasing the implementation entities and changed the implementation place to
                        Dongguan, Guangdong.

                        Applicable
Adjustment of the
                        Occurred in previous years
implementation way of
investment funded by    On March 9, 2012, the 1st provisional shareholders meeting of the Company approved the adjustment

raised capital          proposal to put the RMB60 million for the metro screen door production expansion to the energy-saving
                        and photo-electric curtain wall production expansion project.

                        Applicable
Initial use of raised   On September 30, 2010, it was decided to use the raised capital of RMB4,347,753.09 to replace the
fund in projects and    investment made previously by Fangda Automatic RMB1,403,503.00 and Fangda Decoration
replacement             RMB2,944,250.09. This has been verified by CPA with the report Ascenda CPA (2010) Doc. No.020722.


                        Applicable

                        On March 28, 2011, payment of RMB20 million was made from idle proceeds to Fangda Decoration; and
                        RMB10 million was made to Fangda Automatic. On August 19, 2011, the returned idle capital RMB30
                        million was transferred to raised capital account. On August 23, 2011, payment of RMB20 million was
                        made from idle raised capital to Fangda Decoration; and RMB10 million was made to Fangda Automatic.
                         On February 16, 2012, the returned idle capital RMB30 million into the raised capital account. On
Idle raised capital used 22.02.12, payment of RMB20 million was made from idle proceeds to Fangda Decoration; and RMB10
as working capital       million was made to Fangda Automatic. On 15.08.12, the returned idle capital RMB30 million was
                        transferred to raised capital account. On August 17, 2012, payment of RMB20 million was made from idle
                        raised capital to Fangda Decoration; and RMB10 million was made to Fangda Automatic. On February 4,
                        2013, the returned self-owned capital RMB30 million into the raised capital account. On February 25,
                        2013, payment of RMB22 million was made from idle raised capital to Fangda Decoration; and RMB8
                        million was made to Fangda Automatic. On July 15, 2013, the returned self-owned capital RMB30 million
                        into the raised capital account.

                        Applicable

                        The project funded by the raised capital has completed with a raised fund balance of RMB27,437,151.69,
                        including the interest of RMB8,740,707.32 on the raised fund. The balance is due to following reasons: 1.
Surplus of investment
                        The Company has strictly implemented the multi-supplier purchase mode and project tendering mode,
and cause
                        which helped effectively control the costs of construction and equipment purchase. 2. During the
                        construction process, while ensuring the engineering quality, the Company has adhered to the principle of
                        reducing unnecessary costs to enhance engineering cost control, monitoring and management, thus

                                                                                                                                    17
                                                                                      China Fangda Group Co., Ltd.                2013Interim Report


                             trimming off the total engineering costs. 3. Based on the leading technology and rich experience, existing
                             production lines and equipment and resources, the Company continues to optimize the production process
                             and save project investment.

Use plan of retained         The balance of RMB27,437,151.69 is planned to be supplement to the working capital permanently except
fund from financing          for the final installment of the construction fee and deposit.

Problem or situation in
using of raised capital      None
and disclosing


(3) Altering of projects financed by raised capital

                                                                                                                                       In RMB10,000

                                      Total                     Accumulativ
                                                     Actual                      Investment       Date when   Profit Whether
                                    investment                    e actual                                                                 Any major
                 Correspondi                       investment                    progress by      the project realize       the
   Altered                           of raised                  investment                                                             change in the
                 ng promised                         in the                     the end of the     become      d in       estimate
    project                       capital in the                 by the end                                                           feasibility after
                    project                          report                     period(%)(3)= useable as        the       profit is
                                     altered                    of the period                                                          the alteration
                                                     period                        (2)/(1)        proposed    period realized
                                    project (1)                      (2)

Energy-saving Energy-savi
and PV curtain ng and PV
wall             curtain wall                                                                    June 30,
                                         27,000      2,416.48     23,882.31           88.45%                                          No
production       production                                                                      2013
expansion        expansion
project          project

2. PSD           2. PSD
production       production                                                                      December
                                       6,658.69        233.88       5,823.41          87.46%                                          No
expansion        expansion                                                                       31, 2012
project          project

Total                   --           33,658.69       2,650.36     29,705.72           --                --            0      --               --

                                                   The screen door project in Nanchang aimed to use a plant in Jiangxi new material
                                                   industry zone as the production base. This can reduce the investment of RMB60 million
                                                   for new plant, office and facilities. According to the resolution of the 24 th meeting of the
                                                   5th term of the Board, the proposal of changing the implementation place of the
Alteration reason, decision-making                 energy-saving and photo-electric curtain wall production expansion project and
process and information disclosure (by             increasing the implementation entities was approved to change the implementation place
project)                                           to Dongguan, Guangdong. As a new factory and part of the office and facilities must be
                                                   built in Dongguan, the investment is forecast to increase to RMB75 million. Given the
                                                   alteration of the two projects, the capital RMB 60 million for the screen door project will
                                                   be transferred to the curtain wall project, while the insufficient part made up by the
                                                   self-owned capital.

Reason or situation that not on schedule
                                                   The construction completion of the Dongguan Technology Zone is later than planned.
(on specific project)


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                                                                            China Fangda Group Co., Ltd.        2013Interim Report


Notes to major changes in project
                                             None
feasibility after the alteration


4. Analysis of major subsidiaries and joint-stock companies

Major subsidiaries and joint-stock companies
                                                                                                                               In RMB

                                      Main
                                                    Registered                                     Turnove Operation
 Company        Type      Industry products or                       Total assets     Net assets                           Net profit
                                                      capital                                         r      profit
                                     services

Fangda
                          Decorati Curtain wall                                       459,921,1 602,023, 30,994,648. 27,153,675.
Decoratio Subsidiary                              310,000,000.00   1,631,892,426.53
                          on       system                                                 26.12     979.65            92           62
n

Fangda                    Railroad Metro                                              195,446,5 47,738,1 6,096,576.0 5,053,069.9
             Subsidiary                           105,000,000.00    270,569,657.32
Automatic                 industry screen door                                            90.20      05.01            6                 4


5. The Company has no major project financed not by raised capital in the report period.

VI Performance Forecast for January to September 2013

Alert of loss or significant change in net profit from the beginning of year to the end of next report period or
comparing with the same period of last year, and statement of causations.
□ Applicable √ Inapplicable

VII Statement of the Board on the “non-standard auditors report” issued by the CPA on the current
report period

Inapplicable

VIII Statement of the Board on Non-Standard Auditors Report” Issued in the Previous Year

Inapplicable

IX Implementation of Profit Distribution of the Company in the Report Period

Profit distribution plans implemented during the report period, especially cash dividend and reserve capitalization
plans
√ Applicable □ Inapplicable
     The 2012 Profit Distribution Proposal was approved on the 19th meeting of the 6th session of the Board of
Director held on March 21, 2013 and will be confirmed after being reviewed at the 2012 General Shareholders'
Meeting held on April 18, 2013. A cash dividend of RMB0.30 (tax inclusive) will be paid on each ten shares to all
shareholders on the basis of 756,909,905 shares with a total amount of RMB22,540,512.87. The planning, review
and implementation procedure of the profit distribution complies with related laws and regulations and the

                                                                                                                                        19
                                                                    China Fangda Group Co., Ltd.   2013Interim Report


Companys Articles of Association. The profit distribution plan was implemented on June 13, 2013 (see the
Announcement on Implementation of the 2012 Equity Distribution Plan 2012-13).

X The Company Has No Profit Distribution or Reserve Capitalization Plan in the Report Period

XI Reception of investigations, communications, or interviews in the reporting period

                                                                                           Main content involved and
      Time/date             Place         Way             Visitor              Visitor
                                                                                               materials provided

Between Jan. 1, 2013   Off site     Telephone                                              Business and future
                                                    Individual           Public investor
and June 30, 2013      reception    communication                                          development




                                         V Significant Events

I. General Information

      The Company carried out its business operation strictly following with the Company Law, Securities Law
and relative regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange. And the
administration structure has been further improved without conflict with the laws and regulations. Particulars
about the administration of the Company in the report term: According to the Company Law, Securities Law,
Shenzhen Stock Exchange Share Listing Rules, Enterprise Accounting System and Enterprise Accounting
Standard, the Company has produced the Shareholders Meeting Criteria, Working Regulations of the Board of
Directors, Supervisory Committee Meeting Criteria, President Work Criteria, Independent Director Working
Criteria, Internal Control Criteria, Information Disclosure Criteria, Proceed Administration Regulations,
Accounting Criteria, Internal Auditing Criteria, Manpower Management Regulations, Legal Affair Administration
Rules, Purchase Regulations, Rules of Bidding Invitation, Investor Reception and Promotion, New Subscription
Internal Control, Hedge Operation Internal Control, CPA Selection and Employing, Accounting of Fair Value,
Information Insider Registration, External Information User Administration, Finance and Accounting
Responsibility Management, Rules of Related Transaction, External Investment Administration, and Internet
Information Disclosure. These have composed a mature and effective internal control system covering all aspects
of the business operation including investment decision-making, related transactions, financial management, R&D
management, HRM, executive management, purchase management, production and sales management and
information disclosure. All of them have been implemented smoothly and there isnt any major defect or
fraudulent practices in executing of the internal control system. The internal control system was designed under
principles of scientific, rational, and standardization, and with reference to the Companys practical business
operations.
      By the end of the reporting period, the corporate governance complies with the Chinese laws and
requirements regarding corporate governance of listed companies issued by CSRC.
   The Companys corporate governance complies with the Company Law and related requirements of CSRC




                                                                                                                    20
                                                                               China Fangda Group Co., Ltd.    2013Interim Report


II The Company has no major lawsuit or arbitration in the report period.

III The Company faces no public media questioning event during the report period.

IV The Company has no bankruptcy or reorganization event during the report period.

V The Company has no assets acquisition, sales or merger during the reporting period.

VI The Company has no incentive option scheme in the report period.

VII. The Company has no significant related transaction in the report period

VIII. Significant contracts and performance

1. Asset entrusting, leasing, contracting

(1) No asset entrusting in the report period

(2) No contracting in the report period

(3) Leasing

Leasing
The Company leases investment real estates and obtained a lease income of RMB1,4213,900 million in the report
period.
Projects that create gains accounting for over 10% of the Companys total profit in the report period
□ Applicable √ Inapplicable

2. Guarantee

                                                                                                                    In RMB10,000

                         External guarantees made by the Company (exclude those made for subsidiaries)

                                                Actual date of
                                                                                                                         Related
 Guarantee provided     Date of     Guarantee      occurring       Actual amount      Type of                 Complete
                                                                                                   Term                  party or
          to           disclosure    amount     (signing date of    of guarantee      guarantee               d or not
                                                                                                                           not
                                                 agreements)

                                                                   Total of external guarantee
Total of external guarantee
                                                               0 actually occurred in the report                                   0
approved in the report term (A1)
                                                                   term (A2)

Total of external guarantee                                        Total of external guarantee
approved as of end of report term                              0 actually occurred as of end of                                    0
(A3)                                                               report term (A4)

                                                Guarantee provided to subsidiaries


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                                                                                 China Fangda Group Co., Ltd.           2013Interim Report


                                                 Actual date of
                                                                                                                                  Related
Guarantee provided       Date of     Guarantee      occurring       Actual amount         Type of                      Complete
                                                                                                            Term                  party or
           to          disclosure     amount     (signing date of    of guarantee        guarantee                     d or not
                                                                                                                                       not
                                                  agreements)

                                                                                                        since engage
                                                                                                        of contract
                      July 5,
Fangda Decoration                     45,244.08 June 29, 2012            45,244.08 Joint liability to 2 years          No         No
                      2012
                                                                                                        upon due of
                                                                                                        debt

                                                                                                        since engage
                                                                                                        of contract
                      February
Fangda Decoration                      1,590.32 May 24, 2012               1,590.32 Joint liability to 2 years         No         No
                      21, 2012
                                                                                                        upon due of
                                                                                                        debt

                                                                                                        since engage
                                                                                                        of contract
                      February
Fangda Automatic                       3,632.74 July 27, 2012              3,632.74 Joint liability to 2 years         No         No
                      21, 2012
                                                                                                        upon due of
                                                                                                        debt

                                                                                                        since engage
                                                                                                        of contract
                      August 19,                 September 29,
Fangda Automatic                        550.62                               550.62 Joint liability to 2 years         No         No
                      2010                       2010
                                                                                                        upon due of
                                                                                                        debt

                                                                                                        since engage
                                                                                                        of contract
Jiangxi New           March 23,
                                          7,080 April 10, 2013             1,897.77 Joint liability to 2 years         No         No
Material              2013
                                                                                                        upon due of
                                                                                                        debt

Jiangxi New           February
                                          5,000 July 17, 2012                   1,304 Joint liability
Material              21, 2012

                                                                    Total of guarantee to
Total of guarantee to subsidiaries
                                                           7,080 subsidiaries actually occurred                                   38,071.51
approved in the report term (B1)
                                                                    in the report term (B2)

                                                                    Total of balance of guarantee
Total of guarantee to subsidiaries
                                                                    actually provided to the
approved as of the report term                          63,097.76                                                                 54,219.54
                                                                    subsidiaries as of end of report
(B3)
                                                                    term (B4)

Total of guarantee provided by the Company (total of the above two)

Total of guarantee approved in the                                  Total of guarantee occurred in
                                                           7,080                                                                  38,071.51
report term (A1+B1)                                                 the report term (A2+B2)


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                                                                              China Fangda Group Co., Ltd.      2013Interim Report


                                                                  Total of guarantee occurred as
Total of guarantee approved as of
                                                      63,097.76 of the end of report term                                54,219.54
end of report term (A3+B3)
                                                                  (A4+B4)

Percentage of the total guarantee occurred (A4+B4) on net asset
                                                                                                                           48.61%
of the Company (%)

Including:

The Company made no composite guarantee during the report period.

3. No other significant contract

4. No other significant transaction

IX Commitments of shareholders with over 5% of shares made in the report period or carried over
from previous periods

X Engaging and dismissing of CPA

Whether the interim financial report is audited
□ Yes √ No

XI The Company faces no penalty or correction notice during the report period

XII Other material events

   (1) On June 1, 2013, the Company published the 2012 Equity Distribution Plan on China Securities Journal,
Shanghai Securities Daily, Securities Times and HKCD.
   (2) On June 25, 2013, the Company published the Announcement on the Latest Progress of the Fangda Town
Renovation Project on China Securities Journal, Shanghai Securities Daily, Securities Times and HKCD.



                         VI Changes in Share Capital and Shareholders

1. Changes in shares

                             Before the change                             Change (+,-)                       After the change

                                                      Issued                  Transferre
                                         Proportion               Bonus                                                  Proportio
                          Amount                       new                     d from      Others Subtotal   Amount
                                            (%)                   shares                                                  n (%)
                                                      shares                   reserves

I. Shares with trade
                               104,442       0.01%                                                             104,442      0.01%
restriction conditions

1. Management shares           104,442       0.01%                                                             104,442      0.01%




                                                                                                                                  23
                                                                              China Fangda Group Co., Ltd.               2013Interim Report


II. Shares without
trading limited          756,805,463         99.99%                                                             756,805,463        99.99%
conditions

1. Common shares in
                         420,854,275         55.6%                                                              420,854,275            55.6%
RMB

2. Foreign shares in
                         335,951,188         44.39%                                                             335,951,188        44.39%
domestic market

III. Total of capital
                         756,909,905           100%                                                             756,909,905            100%
shares

Reasons for changes
□ Applicable √ Inapplicable
Approval of share changes
□ Applicable √ Inapplicable
Transfer of changed shares
□ Applicable √ Inapplicable
Impacts of share changes on financial data including basic and diluted earning per share and net assets per share
attributable to common shareholders in the recent year and period
□ Applicable √ Inapplicable
Information the Company deems necessary or required by the security regulator to be disclosed
□ Applicable √ Inapplicable
Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable √ Inapplicable

2. Shareholders and shareholding

                                                                                                                                       In share

Number of shareholders by the end
                                                                                                                                       62,994
of the report period

                                                       Top 10 Shareholders

                                                                 Number of                                                    Pledging or
                                                                                 Change
                                                                shares held at              Conditio Amount of shares           freezing
                                       Properties of   Shareh                     in the
     Name of the shareholder                                    the end of the                nal         without sales
                                       shareholder     olding                    reportin                                     Share Amo
                                                                  reporting                  shares        restriction
                                                                                 g period                                     status    unt
                                                                   period

                                    Domestic
Shenzhen Banglin Technologies
                                    non-state legal    9.09%       68,774,273 No                      0       68,774,273
Development Co., Ltd.
                                    person

                                    Domestic
Liaoning Fangda Group Industry
                                    non-state legal    4.06%       30,765,226 No                      0       30,765,226
Co., Ltd.
                                    person


                                                                                                                                              24
                                                                              China Fangda Group Co., Ltd.             2013Interim Report


                                   Foreign legal
Shengjiu Investment Ltd.                                2.82%      21,339,867 No                   0          21,339,867
                                   person

                                   Domestic natural
Huang Jupei                                             2.64%      20,012,177 Increase             0          20,012,177
                                   person

                                   Domestic
Shenzhen Shilihe Investment Co.,
                                   non-state legal      2.36%      17,860,992 No                   0          17,860,992
Ltd.
                                   person

Huatai Securities Co., Ltd.'s
                                   Others               2.22%      16,800,000 No                   0          16,800,000
agreed repurchase account

Everbright Securities Customer     Domestic
Credit Transaction Guarantee       non-state legal      1.71%      12,956,515 Increase             0          12,956,515
Securities Account                 person

                                   Domestic natural
He Yansong                                              0.64%        4,851,228 Increase            0              4,851,228
                                   person

                                   Domestic natural
Zhao Zuwen                                              0.59%        4,502,213 Increase            0              4,502,213
                                   person

                                   Domestic natural                              Decreas
Cao Yifan                                               0.41%        3,136,865                     0              3,136,865
                                   person                                        e

A strategic investor or ordinary legal person becomes
                                                        None
the Top10 shareholder due a stock issue (See Note 3).

                                                        Among the above-mentioned shareholders, Shenzhen Banglin Technology
                                                        Development Co., Ltd. and Shengjiu Investment Co., Ltd. are parties
Notes to top ten shareholder relationship or "action in action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and
concert"                                                Shenzhen Shilihe Investment Co., Ltd. are related parties. The Company is
                                                        not notified of other action-in-concert or related parties among the other
                                                        holders of current shares.

                                              Top 10 holders of unconditional shares

                                                                                                            Category of shares
                                      Amount of shares without sales restriction at the end of
       Name of the shareholder                                                                         Category of
                                                          the report period                                                   Amount
                                                                                                         shares

Shenzhen Banglin Technologies                                                                     RMB common
                                                                                     68,774,273                                68,774,273
Development Co., Ltd.                                                                             shares

Liaoning Fangda Group Industry                                                                    RMB common
                                                                                     30,765,226                                30,765,226
Co., Ltd.                                                                                         shares

                                                                                                  Foreign shares
Shengjiu Investment Ltd.                                                             21,339,867 listed in domestic             21,339,867
                                                                                                  exchanges

                                                                                                  RMB common
Huang Jupei                                                                          20,012,177                                20,012,177
                                                                                                  shares



                                                                                                                                       25
                                                                             China Fangda Group Co., Ltd.           2013Interim Report


Shenzhen Shilihe Investment Co.,                                                                 RMB common
                                                                                    17,860,992                            17,860,992
Ltd.                                                                                             shares

Huatai Securities Co., Ltd.'s agreed                                                             RMB common
                                                                                    16,800,000                            16,800,000
repurchase account                                                                               shares

Everbright Securities Customer
                                                                                                 RMB common
Credit Transaction Guarantee                                                        12,956,515                            12,956,515
                                                                                                 shares
Securities Account

                                                                                                 RMB common
He Yansong                                                                           4,851,228                              4,851,228
                                                                                                 shares

                                                                                                 RMB common
Zhao Zuwen                                                                           4,502,213                              4,502,213
                                                                                                 shares

                                                                                                 Foreign shares
Cao Yifan                                                                            3,136,865 listed in domestic           3,136,865
                                                                                                 exchanges

No action-in-concert or related
                                       Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and
parties among the top10
                                       Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology
unconditional shareholders and
                                       Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd. are related parties. The
between the top10 unconditional
                                       Company is not notified of other action-in-concert or related parties among the other holders
shareholders and the top10
                                       of current shares.
shareholders

Statement of shareholders
participating in margin trade (if any) None
(See Note 4)

Whether shareholders of the Company have conducted agreed repurchase transactions during the report period
√ Yes □ No
At the end of the report period, Huatai Securities Co., Ltd.'s agreed repurchase account among the top 10
shareholders of the Company performed agreed repurchase initial transaction for shareholder Wang Shaolin,
which involved 16,800,000 shares, accounting for 2.22% of all shares of the Company.

2. Change in controlling shareholder or substantial controller

Change in the controlling shareholder in the report period
□ Applicable √ Inapplicable
Change in the substantial controller in the report period
□ Applicable √ Inapplicable




                                                                                                                                       26
                                                            China Fangda Group Co., Ltd.   2013Interim Report




  VII Particulars about the Directors, Supervisors and Senior Management

1. Changes in shareholding of Directors, Supervisors and Senior Management

□ Applicable √ Inapplicable
The Companys Directors, supervisors and senior management shareholding has remained unchanged during the
report period. For details, please refer to the 2012 annual report.

2. No Directors, supervisors or senior executives resigned or were dismissed during the report
period




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                                                                       China Fangda Group Co., Ltd.   2013Interim Report




                                            VIII Financial Statements

1. Auditors report

Audit of the interim report
□ Yes √ No
The interim financial statements have not been audited.

2. Financial statements

Unit for statements in notes to financial statements: RMB yuan

1. Consolidated Balance Sheet

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

                  Items                          Beginning balance                          Ending balance

Current asset:

     Monetary capital                                          314,735,102.36                            278,283,968.61

     Settlement provision

     Outgoing call loan

     Transactional financial assets

     Notes receivable                                                5,976,417.51                             7,638,780.88

     Account receivable                                        870,702,460.22                            774,890,805.30

     Prepayment                                                 25,525,968.19                                22,006,159.22

     Insurance receivable

     Reinsurance receivable

     Provisions of Reinsurance
contracts receivable

     Interest receivable                                               20,583.33                                72,833.33

     Dividend receivable

     Other receivables                                          68,222,461.81                                57,339,556.28

     Repurchasing of financial assets

     Inventory                                                 278,018,154.56                            269,120,191.36

     Non-current asset due in 1 year

     Other current asset


                                                                                                                        28
                                                 China Fangda Group Co., Ltd.   2013Interim Report


Total of current asset                     1,563,201,147.98                      1,409,352,294.98

Non-current assets:

     Disburse of consigned loans

     Sellable financial assets

     Investment held until mature

     Long-term receivable

     Long-term share equity investment

     Investment real estate                 258,348,280.65                         258,405,762.09

     Fixed assets                           514,373,558.80                         341,555,810.21

     Construction in process                  3,633,490.64                         175,138,694.28

     Engineering materials

     Disposal of fixed assets                     1,676.00

     Productive biological assets

     Gas & petrol

     Intangible assets                      100,643,079.78                         102,380,382.21

     R&D expense                                159,850.00                              67,700.00

     Goodwill

     Long-term amortizable expenses           4,651,377.80                           4,710,860.65

     Deferred income tax assets              37,866,273.79                          36,191,385.09

     Other non-current assets

Total of non-current assets                 919,677,587.46                         918,450,594.53

Total of assets                            2,482,878,735.44                      2,327,802,889.51

Current liabilities

     Short-term loans                       271,970,000.00                         181,970,000.00

     Loans from Central Bank

     Deposit received and held for
others

     Call loan received

     Transactional financial liabilities

     Notes payable                          185,053,083.05                         160,779,777.03

     Account payable                        389,426,010.42                         411,846,031.72

     Prepayment received                    129,213,367.61                          77,741,903.02

     Selling of repurchased financial
assets

     Fees and commissions payable


                                                                                               29
                                                   China Fangda Group Co., Ltd.   2013Interim Report


       Employees wage payable                  13,236,365.66                          23,945,272.55

       Taxes payable                           33,693,825.27                          33,686,577.98

       Interest payable                         8,523,431.51                           1,954,557.27

       Dividend payable

       Other payables                          39,791,678.84                          41,340,056.86

       Reinsurance fee payable

       Insurance contract provision

       Entrusted trading of securities

       Entrusted selling of securities

       Non-current liabilities due in 1
year

       Other current liabilities              200,000,000.00                         200,000,000.00

Total of current liabilities                 1,270,907,762.36                      1,133,264,176.43

Non-current liabilities:

       Long-term loans

       Bond payable

       Long-term payable                            2,100.00                               7,700.00

       Special payables

       Anticipated liabilities

       Deferred income tax liabilities         36,652,619.76                          36,210,286.40

       Other non-current liabilities            2,000,000.00

Total of non-current liabilities               38,654,719.76                          36,217,986.40

Total liabilities                            1,309,562,482.12                      1,169,482,162.83

Owners equity (or shareholders
equity)

       Capital paid in (or share capital)     756,909,905.00                         756,909,905.00

       Capital reserves                        80,299,867.64                          80,299,867.64

       Less: Shares in stock

       Special reserves

       Surplus reserves                        30,494,542.94                          30,494,542.94

       Common risk provisions

       Retained profit                        247,728,960.54                         230,907,879.99

       Difference caused by translation of
foreign currency statements

Total of owners equity belong to the         1,115,433,276.12                      1,098,612,195.57


                                                                                                 30
                                                                             China Fangda Group Co., Ltd.   2013Interim Report


parent company

     Minor shareholders equity                                        57,882,977.20                                59,708,531.11

Total of owners equity (or
                                                                    1,173,316,253.32                         1,158,320,726.68
shareholders equity)

Total of liability and owners equity (or
                                                                    2,482,878,735.44                         2,327,802,889.51
shareholders equity)


Legal representative: Xiong Jianming       CFO: Lin Kebing    Accounting Manager: Chen Yonggang


2. Balance Sheet of the Parent Company

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

                    Items                              Beginning balance                          Ending balance

Current asset:

     Monetary capital                                                 97,846,203.00                                25,790,604.84

     Transactional financial assets

     Notes receivable

     Account receivable                                                    5,157,141.38                             5,157,141.38

     Prepayment                                                                                                       20,271.85

     Interest receivable

     Dividend receivable                                              39,356,000.00                                39,356,000.00

     Other receivables                                               379,204,083.28                            512,298,790.52

     Inventory

     Non-current asset due in 1 year

     Other current asset

Total of current asset                                               521,563,427.66                            582,622,808.59

Non-current assets:

     Sellable financial assets

     Investment held until mature

     Long-term receivable

     Long-term share equity investment                               709,733,745.58                            669,733,745.58

     Investment real estate                                          254,766,256.33                            254,766,256.33

     Fixed assets                                                     85,958,453.34                                87,649,932.55

     Construction in process                                               1,701,315.00                             1,701,315.00

     Engineering materials



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                                                   China Fangda Group Co., Ltd.   2013Interim Report


       Disposal of fixed assets

       Productive biological assets

       Gas & petrol

       Intangible assets                        9,066,594.42                           9,352,376.54

       R&D expense

       Goodwill

       Long-term amortizable expenses              62,893.07                              75,471.70

       Deferred income tax assets              11,781,107.49                          12,333,214.12

       Other non-current assets

Total of non-current assets                  1,073,070,365.23                      1,035,612,311.82

Total of assets                              1,594,633,792.89                      1,618,235,120.41

Current liabilities

       Short-term loans                       200,000,000.00                         180,000,000.00

       Transactional financial liabilities

       Notes payable

       Account payable                          1,849,090.36                           1,849,090.36

       Prepayment received                        693,045.60                            753,108.70

       Employees wage payable                     658,893.41                           1,479,449.88

       Taxes payable                            1,773,217.39                            826,456.83

       Interest payable                         8,406,764.84                           1,954,557.27

       Dividend payable

       Other payables                          51,311,664.08                          83,515,779.52

       Non-current liabilities due in 1
year

       Other current liabilities              200,000,000.00                         200,000,000.00

Total of current liabilities                  464,692,675.68                         470,378,442.56

Non-current liabilities:

       Long-term loans

       Bond payable

       Long-term payable

       Special payables

       Anticipated liabilities

       Deferred income tax liabilities         36,652,619.76                          36,210,286.40

       Other non-current liabilities




                                                                                                 32
                                                                           China Fangda Group Co., Ltd.   2013Interim Report


Total of non-current liabilities                                       36,652,619.76                          36,210,286.40

Total liabilities                                                     501,345,295.44                         506,588,728.96

Owners equity (or shareholders
equity)

     Capital paid in (or share capital)                               756,909,905.00                         756,909,905.00

     Capital reserves                                                  39,799,212.26                          39,799,212.26

     Less: Shares in stock

     Special reserves

     Surplus reserves                                                  30,494,542.94                          30,494,542.94

     Common risk provisions

     Retained profit                                                  266,084,837.25                         284,442,731.25

     Difference caused by translation of
foreign currency statements

Total of owners equity (or
                                                                    1,093,288,497.45                        1,111,646,391.45
shareholders equity)

Total of liability and owners equity (or
                                                                    1,594,633,792.89                        1,618,235,120.41
shareholders equity)


Legal representative: Xiong Jianming       CFO: Lin Kebing    Accounting Manager: Chen Yonggang


3. Consolidated Income Statement

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

                    Items                          Amount of the Current Term             Amount of the Previous Term

1. Total revenue                                                      736,828,039.88                         529,289,597.80

     Incl. Business income                                            736,828,039.88                         529,289,597.80

              Interest income

              Insurance fee earned

              Fee and commission
received

2. Total business cost                                                693,328,494.53                         528,136,264.96

     Incl. Business cost                                              584,493,820.44                         418,086,030.44

              Interest expense

              Fee and commission paid

              Insurance discharge
payment



                                                                                                                            33
                                                      China Fangda Group Co., Ltd.    2013Interim Report


                Net claim amount paid

                Net insurance policy
reserves provided

                Insurance policy dividend
paid

                Reinsurance expenses

                Business tax and surcharge         13,633,238.09                           9,750,997.72

                Sales expense                      17,614,987.09                          15,164,029.76

                Administrative expense             57,347,495.40                          55,896,227.34

                Financial expenses                 12,213,522.40                          11,361,459.25

                Asset impairment loss               8,025,431.11                          17,877,520.45

        Plus: gains from change of fair
                                                                                           5,936,670.15
value (“-“ for loss)

                Investment gains (“-“ for
loss)

                Incl. Investment gains from
affiliates and joint ventures

                Exchange gains (“-“ for
loss)

3. Operational profit (“-“ for loss)             43,499,545.35                           7,090,002.99

        Plus: non-operational income                2,504,701.74                           3,154,994.50

        Less: non-operational expenditure            672,299.16                             420,305.21

                Incl. Loss from disposal of
                                                     169,723.53                             134,421.19
non-current assets

4. Gross profit (“-“ for loss)                   45,331,947.93                           9,824,692.28

        Less: Income tax expenses                   7,795,908.42                           7,907,457.04

5. Net profit (“-“ for net loss)                 37,536,039.51                           1,917,235.24

        Including: Net profit realized by
the entity taken over before the takeover

        Net profit attributable to the
                                                   39,361,593.42                          12,643,297.40
owners of parent company

        Minor shareholders equity                  -1,825,553.91                         -10,726,062.16

6. Earnings per share:                        --                                 --

        (1) Basic earnings per share                        0.05                                   0.02

        (2) Diluted earnings per share                      0.05                                   0.02

7. Other misc. incomes                                                                        -2,668.37



                                                                                                     34
                                                                               China Fangda Group Co., Ltd.    2013Interim Report


8. Total of misc. incomes                                                  37,536,039.51                            1,914,566.87

        Total of misc. incomes attributable
                                                                           39,361,593.42                           12,640,629.03
to the owners of the parent company

        Total misc gains attributable to the
                                                                           -1,825,553.91                          -10,726,062.16
minor shareholders


Legal representative: Xiong Jianming           CFO: Lin Kebing    Accounting Manager: Chen Yonggang


4. Income Statement of the Parent Company

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

                    Items                              Amount of the Current Term             Amount of the Previous Term

1. Turnover                                                                23,580,401.58                           22,293,459.72

        Less: Operation cost                                                4,742,190.07                            4,730,478.42

             Business tax and surcharge                                     1,829,817.82                            1,801,110.33

             Sales expense                                                                                            -15,831.98

             Administrative expense                                        10,381,634.49                            9,113,577.56

             Financial expenses                                             2,086,644.86                            3,474,277.89

             Asset impairment loss                                             14,817.75                             122,857.23

        Plus: gains from change of fair
                                                                                                                    5,609,909.15
value (“-“ for loss)

             Investment gains (“-“ for
loss)

             Incl. Investment gains from
affiliates and joint ventures

2. Operational profit (“-“ for loss)                                      4,525,296.59                            8,676,899.42

        Plus: non-operational income                                        1,025,011.10                             910,170.78

        Less: non-operational expenditure                                     373,248.83                               56,676.64

             Incl. Loss from disposal of
                                                                               34,285.02                               56,676.64
non-current assets

3. Gross profit (“-“ for loss)                                            5,177,058.86                            9,530,393.56

        Less: Income tax expenses                                             994,439.99                            2,549,551.46

4. Net profit (“-“ for net loss)                                          4,182,618.87                            6,980,842.10

5. Earnings per share:                                             --                                     --

        (1) Basic earnings per share

        (2) Diluted earnings per share



                                                                                                                                35
                                                                            China Fangda Group Co., Ltd.   2013Interim Report


6. Other misc. incomes                                                           0.00                               -2,668.37

7. Total of misc. incomes                                                4,182,618.87                            6,978,173.73


Legal representative: Xiong Jianming        CFO: Lin Kebing    Accounting Manager: Chen Yonggang


5. Consolidated Cash Flow Statement

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

                   Items                            Amount of the Current Term             Amount of the Previous Term

1. Cash flow from business operation

       Cash received from sales of
                                                                       746,305,400.55                         488,949,208.73
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
insurance contract

       Net cash received from reinsurance
business

       Net increase of client deposit and
investment

       Net increase of trade financial
asset disposal

       Cash received as interest,
processing fee, and commission

       Net increase of inter-bank fund
received

       Net increase of repurchasing
business

       Tax returned                                                      1,402,420.40                            1,171,203.29

       Other cash received from business
                                                                        24,853,131.88                          31,104,199.38
operation

Sub-total of cash inflow from business
                                                                       772,560,952.83                         521,224,611.40
activities

       Cash paid for purchasing of                                     596,363,985.36                         415,468,117.93


                                                                                                                             36
                                                  China Fangda Group Co., Ltd.   2013Interim Report


merchandise 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

     Cash paid for interest, processing
fee and commission

     Cash paid for policy dividend

     Cash paid to staffs or paid for
                                              80,075,568.67                          59,680,101.99
staffs

     Taxes paid                               39,998,936.89                          43,842,326.44

     Other cash paid for business
                                              55,032,599.32                          70,303,817.97
activities

Sub-total of cash outflow from business
                                             771,471,090.24                         589,294,364.33
activities

Cash flow generated by business
                                               1,089,862.59                         -68,069,752.93
operation, net

2. Cash flow generated by investment:

     Cash received from investment
recovery

     Cash received as investment profit

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other      230,729.00                            1,098,900.00
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
                                                371,500.00                            2,180,644.64
received

Sub-total of cash inflow due to
                                                602,229.00                            3,279,544.64
investment activities

     Cash paid for construction of fixed
assets, intangible assets and other           35,013,827.84                          47,681,003.19
long-term assets

     Cash paid as investment                  20,000,000.00

     Net increase of loan against pledge

     Net cash received from


                                                                                                37
                                                                         China Fangda Group Co., Ltd.   2013Interim Report


subsidiaries and other operational units

     Other cash paid for investment
                                                                       960,000.00                             887,100.00
activities

Subtotal of investment activity cash
                                                                     55,973,827.84                          48,568,103.19
outflows

Cash flow generated by investment
                                                                    -55,371,598.84                         -45,288,558.55
activities, net

3. Cash flow generated by financing:

     Cash received from investment

     Incl. Cash received as investment
from minor shareholders

     Cash received as loans                                         160,000,000.00                         359,500,000.00

     Cash received from bond placing

     Other financing-related cash
received

Subtotal of cash inflow from financing
                                                                    160,000,000.00                         359,500,000.00
activities

     Cash to repay debts                                             70,000,000.00                         231,000,000.00

     Cash paid as dividend, profit, or
                                                                     28,180,178.76                          14,395,048.68
interests

     Incl. Dividend and profit paid by
subsidiaries to minor shareholders

     Other cash paid for financing
                                                                         81,621.53                          15,150,000.00
activities

Subtotal of cash outflow due to
                                                                     98,261,800.29                         260,545,048.68
financing activities

Net cash flow generated by financing                                 61,738,199.71                          98,954,951.32

4. Influence of exchange rate alternation
                                                                            -36.18                               7,703.27
on cash and cash equivalents

5. Net increase of cash and cash
                                                                      7,456,427.28                         -14,395,656.89
equivalents

     Plus: Balance of cash and cash
                                                                    240,167,372.86                         300,177,008.78
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                    247,623,800.14                         285,781,351.89
at the end of term


Legal representative: Xiong Jianming       CFO: Lin Kebing   Accounting Manager: Chen Yonggang




                                                                                                                       38
                                                                     China Fangda Group Co., Ltd.   2013Interim Report


6. Cash Flow Statement of the Parent Company

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

                   Items                     Amount of the Current Term             Amount of the Previous Term

1. Cash flow from business operation

     Cash received from sales of
                                                                 17,270,087.97                          17,684,620.78
products and providing of services

     Tax returned

     Other cash received from business
                                                                297,539,451.29                          94,772,888.12
operation

Sub-total of cash inflow from business
                                                                314,809,539.26                         112,457,508.90
activities

     Cash paid for purchasing of
                                                                  5,883,177.71                            5,635,577.54
merchandise and services

     Cash paid to staffs or paid for
                                                                  5,654,402.78                            4,570,911.79
staffs

     Taxes paid                                                   2,290,978.47                            2,169,865.52

     Other cash paid for business
                                                                181,902,222.11                          95,725,694.39
activities

Sub-total of cash outflow from business
                                                                195,730,781.07                         108,102,049.24
activities

Cash flow generated by business
                                                                119,078,758.19                            4,355,459.66
operation, net

2. Cash flow generated by investment:

     Cash received from investment
recovery

     Cash received as investment profit

     Net cash retrieved from disposal of
fixed assets, intangible assets, and other                                729.00                                  900.00
long-term assets

     Net cash received from disposal of
subsidiaries or other operational units

     Other investment-related cash
received

Sub-total of cash inflow due to
                                                                          729.00                                  900.00
investment activities

     Cash paid for construction of fixed                             73,788.50                            3,037,035.00



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                                                                        China Fangda Group Co., Ltd.   2013Interim Report


assets, intangible assets and other
long-term assets

     Cash paid as investment                                         40,000,000.00

     Net cash received from
subsidiaries and other operational units

     Other cash paid for investment
activities

Subtotal of investment activity cash
                                                                     40,073,788.50                          3,037,035.00
outflows

Cash flow generated by investment
                                                                    -40,073,059.50                         -3,036,135.00
activities, net

3. Cash flow generated by financing:

     Cash received from investment

     Cash received as loans                                          90,000,000.00

     Cash received from bond placing

     Other financing-related cash
received

Subtotal of cash inflow from financing
                                                                     90,000,000.00
activities

     Cash to repay debts                                             70,000,000.00

     Cash paid as dividend, profit, or
                                                                     26,856,728.43                          7,352,940.00
interests

     Other cash paid for financing
                                                                        81,621.53
activities

Subtotal of cash outflow due to
                                                                     96,938,349.96                          7,352,940.00
financing activities

Net cash flow generated by financing                                 -6,938,349.96                         -7,352,940.00

4. Influence of exchange rate alternation
on cash and cash equivalents

5. Net increase of cash and cash
                                                                     72,067,348.73                         -6,033,615.34
equivalents

     Plus: Balance of cash and cash
                                                                     25,540,604.84                         24,337,261.80
equivalents at the beginning of term

6. Balance of cash and cash equivalents
                                                                     97,607,953.57                         18,303,646.46
at the end of term


Legal representative: Xiong Jianming       CFO: Lin Kebing   Accounting Manager: Chen Yonggang




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                                                                                  China Fangda Group Co., Ltd.          2013Interim Report


7. Statement of Change in Owners Equity (Consolidated)

Prepared by: China Fangda Group Co., Ltd.
Amount of the Current Term
                                                                                                                                     In RMB

                                                                          Amount of the Current Term

                                               Owners Equity Attributable to the Parent Company

                                   Capital
                                                                                        Commo                         Minor        Total of
               Items               paid in                Less:
                                              Capital               Special Surplus     n risk   Retaine             sharehold     owners
                                     (or                 Shares                                             Others
                                              reserves              reserves reserves provisio d profit              ers equity    equity
                                    share                in stock
                                                                                         ns
                                   capital)

1. Balance at the end of last      756,909 80,299,8                           30,494,            230,907,            59,708,53 1,158,320,
year                               ,905.00      67.64                         542.94              879.99                  1.11       726.68

       Plus: Change of
accounting policy

            Correcting of
previous errors

            Others

2. Balance at the beginning of     756,909 80,299,8                           30,494,            230,907,            59,708,53 1,158,320,
current year                       ,905.00      67.64                         542.94              879.99                  1.11       726.68

3. Amount of change in current                                                                   16,821,0            -1,825,55 14,995,526
term (“-“ for decrease)                                                                          80.55                  3.91           .64

                                                                                                 39,361,5            -1,825,55 37,536,039
(1) Net profit
                                                                                                   93.42                  3.91           .51

(2) Other misc. income

                                                                                                 39,361,5            -1,825,55 37,536,039
Total of (1) and (2)
                                                                                                   93.42                  3.91           .51

(3) Investment or decreasing of
capital by owners

1. 1. Capital input by owners

2. Amount of shares paid and
accounted as owners equity

3. Others

                                                                                                 -22,540,                         -22,540,51
(4) Profit allotment
                                                                                                  512.87                                2.87

1. Providing of surplus reserves

2. Common risk provision



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                                                                                 China Fangda Group Co., Ltd.          2013Interim Report


3. Allotment to the owners (or                                                                  -22,540,                         -22,540,51
shareholders)                                                                                    512.87                                2.87

4. Others

(5) Internal transferring of
owners equity

1. Capitalizing of capital
reserves (or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)

3. Making up losses by surplus
reserves

4. Others

(6) Special reserves

1. Provided this year

2. Used this term

(7) Others

4. Balance at the end of this     756,909 80,299,8                           30,494,            247,728,            57,882,97 1,173,316,
term                              ,905.00      67.64                         542.94              960.54                  7.20       253.32

Amount of Last Year
                                                                                                                                    In RMB

                                                                            Amount of Last Year

                                              Owners Equity Attributable to the Parent Company

                                  Capital
                                                                                       Commo                         Minor        Total of
               Items              paid in                Less:
                                             Capital               Special Surplus     n risk   Retaine             sharehold     owners
                                    (or                 Shares                                             Others
                                             reserves              reserves reserves provisio d profit              ers equity    equity
                                   share                in stock
                                                                                        ns
                                  capital)

1. Balance at the end of last     756,909 80,479,4                           24,676,            211,777,            78,213,66 1,152,057,
year                              ,905.00      93.92                         077.16              968.57                  5.93        110.58

       Plus: Retrospective
adjustment caused by merger of
entities under common control

       Plus: Change of
accounting policy

            Correcting of
previous errors

            Others

2. Balance at the beginning of    756,909 80,479,4                           24,676,            211,777,            78,213,66 1,152,057,


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                                                          China Fangda Group Co., Ltd.      2013Interim Report


current year                       ,905.00    93.92    077.16          968.57                 5.93      110.58

3. Amount of change in current               -179,62   5,818,4       19,129,9            -18,505,1 6,263,616.
term (“-“ for decrease)                       6.28    65.78           11.42               34.82           10

                                                                     24,948,3            -18,505,1 6,443,242.
(1) Net profit
                                                                        77.20               34.82           38

                                             -179,62                                                 -179,626.2
(2) Other misc. income
                                                6.28                                                         8

                                             -179,62                 24,948,3            -18,505,1 6,263,616.
Total of (1) and (2)
                                                6.28                    77.20               34.82           10

(3) Investment or decreasing of
capital by owners

1. Capital input by owners

2. Amount of shares paid and
accounted as owners equity

3. Others

                                                       5,818,4        -5,818,4
(4) Profit allotment
                                                        65.78           65.78

                                                       5,818,4        -5,818,4
1. Providing of surplus reserves
                                                        65.78           65.78

2. Common risk provision

3. Allotment to the owners (or
shareholders)

4. Others

(5) Internal transferring of
owners equity

1. Capitalizing of capital
reserves (or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)

3. Making up losses by surplus
reserves

4. Others

(6) Special reserves

1. Provided this year

2. Used this term

(7) Others

4. Balance at the end of this      756,909 80,299,8    30,494,       230,907,            59,708,53 1,158,320,



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                                                                                China Fangda Group Co., Ltd.          2013Interim Report


term                                 ,905.00       67.64                     542.94            879.99                   1.11        726.68


Legal representative: Xiong Jianming      CFO: Lin Kebing          Accounting Manager: Chen Yonggang


8. Statement of Change in Owners Equity (Parent Company)

Prepared by: China Fangda Group Co., Ltd.
Amount of the Current Term
                                                                                                                                    In RMB

                                                                          Amount of the Current Term

                                       Capital
                                                                  Less:                              Common                       Total of
                 Items               paid in (or     Capital                  Special    Surplus                  Retained
                                                                 Shares in                              risk                      owners
                                        share        reserves                reserves    reserves                   profit
                                                                  stock                              provisions                   equity
                                       capital)

                                     756,909,90 39,799,212                              30,494,542                284,442,73 1,111,646,
1. Balance at the end of last year
                                            5.00           .26                                 .94                      1.25        391.45

       Plus: Change of accounting
policy

            Correcting of previous
errors

            Others

2. Balance at the beginning of       756,909,90 39,799,212                              30,494,542                284,442,73 1,111,646,
current year                                5.00           .26                                 .94                      1.25        391.45

3. Amount of change in current                                                                                    -18,357,89 -18,357,89
term (“-“ for decrease)                                                                                               4.00           4.00

                                                                                                                  4,182,618. 4,182,618.
(1) Net profit
                                                                                                                             87            87

(2) Other misc. income

                                                                                                                  4,182,618. 4,182,618.
Total of (1) and (2)
                                                                                                                             87            87

(3) Investment or decreasing of
capital by owners

1. Capital input by owners

2. Amount of shares paid and
accounted as owners equity

3. Others

                                                                                                                  -22,540,51 -22,540,51
(4) Profit allotment
                                                                                                                        2.87           2.87

1. Providing of surplus reserves


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                                                                                 China Fangda Group Co., Ltd.          2013Interim Report


2. Common risk provision

3. Allotment to the owners (or                                                                                     -22,540,51 -22,540,51
shareholders)                                                                                                            2.87        2.87

4. Others

(5) Internal transferring of
owners equity

1. Capitalizing of capital reserves
(or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)

3. Making up losses by surplus
reserves

4. Others

(6) Special reserves

1. Provided this year

2. Used this term

(7) Others

                                      756,909,90 39,799,212                              30,494,542                266,084,83 1,093,288,
4. Balance at the end of this term
                                            5.00           .26                                  .94                      7.25     497.45

Amount of Last Year
                                                                                                                                  In RMB

                                                                              Amount of Last Year

                                       Capital
                                                                   Less:                              Common                    Total of
                Items                 paid in (or     Capital                 Special     Surplus                   Retained
                                                                  Shares in                              risk                   owners
                                        share        reserves                 reserves    reserves                   profit
                                                                   stock                              provisions                equity
                                       capital)

                                      756,909,90 41,078,838                              24,676,077                232,076,53 1,054,741,
1. Balance at the end of last year
                                            5.00            .54                                 .16                      9.24     359.94

     Plus: Change of accounting
policy

            Correcting of previous
errors

            Others

2. Balance at the beginning of        756,909,90 41,078,838                              24,676,077                232,076,53 1,054,741,
current year                                5.00            .54                                 .16                      9.24     359.94

3. Amount of change in current                      -1,279,626.                          5,818,465.                52,366,192 56,905,031
term (“-“ for decrease)                                   28                                   78                       .01         .51




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                                                                            China Fangda Group Co., Ltd.   2013Interim Report


                                                                                                       58,184,657 58,184,657
(1) Net profit
                                                                                                              .79           .79

                                                   -1,279,626.                                                       -1,279,626.
(2) Other misc. income
                                                           28                                                                28

                                                   -1,279,626.                                         58,184,657 56,905,031
Total of (1) and (2)
                                                           28                                                 .79           .51

(3) Investment or decreasing of
capital by owners

1. 1. Capital input by owners

2. Amount of shares paid and
accounted as owners equity

3. Others

                                                                                    5,818,465.         -5,818,465.
(4) Profit allotment
                                                                                           78                  78

                                                                                    5,818,465.         -5,818,465.
1. Providing of surplus reserves
                                                                                           78                  78

2. Common risk provision

3. Allotment to the owners (or
shareholders)

4. Others

(5) Internal transferring of
owners equity

1. Capitalizing of capital reserves
(or to capital shares)

2. Capitalizing of surplus
reserves (or to capital shares)

3. Making up losses by surplus
reserves

4. Others

(6) Special reserves

1. Provided this year

2. Used this term

(7) Others

                                      756,909,90 39,799,212                        30,494,542          284,442,73 1,111,646,
4. Balance at the end of this term
                                            5.00          .26                              .94               1.25        391.45


Legal representative: Xiong Jianming      CFO: Lin Kebing        Accounting Manager: Chen Yonggang




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                                                                   China Fangda Group Co., Ltd.    2013Interim Report


III. General Information

China Fangda Group Co., Ltd. (the “Company” or the “Group”) is a joint stock company registered in Shenzhen,
Guangdong and was approved by the Government of Shenzhen with Document Gov. Office Doc. (1995) No.194,
and was founded, on the basis of Shenzhen Fangda Construction Material Co., Ltd., by way of share issuing in
October 1995. The Registration No. of the Companys business license is: 440301501124785; registered address:
Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is the legal representative.

The Company issued foreign currency shares (B shares) and local currency shares (A shares) and listed in
November 1995 and April 1996 respectively in Shenzhen Stock Exchange. On June 12, 1997, as approved by
Shenzhen Bureau of Commerce with Document Shenzhen Business Introduction [1997] No.0192, the Company
was re-registered to a sino-foreign joint venture. Registration routines were completed with Shenzhen Commerce
and Industry Administration on November 12, 1997. In October 1999, the Company started to use the current
name.

The “profit distribution and capitalizing plan 2010" was adopted on the Shareholders Annual Meeting 2010.
Which was: basing on the total capital shares of 504,606,604 shares, 5 bonus share was added to each 10 shares to
all shareholders, totally 252,303,301 shares was capitalized with face value of RMB1. In May 2011,the
Companys registered capital was changed to RMB756,909,905.

The Company has established a corporate governance structure that comprises shareholders meeting, board of
directors and supervisory committee. Currently, the Company sets up the President Office, Administrative
Department, HR Department, Enterprise Management Department, Financial Department, Audit and Supervisory
Department, Securities Department, Technology Department and IT Department and has established subsidiaries
including Fangda Decoration, Fangda Automatic, Jiangxi New Material, Shenyang Fangda and Fangda Property.

The business scope includes new-type building materials, composite materials, metal wares, metal frames,
environmental equipment and apparatus, fire fighting equipment, optical-mechanical-electrical integrated products,
polymer materials and their products, fine chemical products, mechanical equipment, optical materials and
devices, electronic displayer, audio-visual device, transport facilities (exclude restricted items and produces under
export certification, and their design, developing, installation, construction, technical consulting, and training.
Managing and leasing of properties under possession (Fangda Building at Ke-Ji-Nan Road 12, and Fangda Town
at Longzhu Road 4), parking services of Fangda Building.

IV. Main Accounting Policies, Estimations and Retrospection of Previous Accounting Errors

(I) Basis for the preparation of financial statements

     The financial statements have been prepared in accordance with the Enterprise Accounting Standard – Basic
Standards and 38 specific accounting principles issued in February 2006 by the Ministry of Finance and its
application guide, interpretation and other related provision (collectively “Enterprise Accounting Standards”). The
Company has also disclosed related financial information according to the requirement of the Regulations of
Information Disclosure No.15 – Gerenal Provisions for Financial Statements (Revised in 2010) issued by the
CSRC.
     Except for subsidiaries that have stopped operating, the financial statements are prepared on the basis of
continuous operation. The financial statements for subsidiaries that have stopped operating (Shenyang Fangda,

                                                                                                                  47
                                                                   China Fangda Group Co., Ltd.    2013Interim Report


Fangda Aluminium and Fang Yide) are prepared on the basis of non-continuous operation.
      The Company's audit is based on the accrual basis. Except for some financial instruments and property held
for investment, which will be further measured based on the fair value mode, the financial statements are prepared
based on historical costs. In case of any asset impairment, the impairment provision will be made as required.

(II). Statement of compliance to the Enterprise Accounting Standard

     The financial report and statements are prepared with compliance to the requirement of the Enterprise
Accounting Standard. They reflect the financial position as of 30.06.13, and business performance and cash flow
situation in the first half of year 2013 of the Company frankly and completely.

(III). Fiscal Period

     The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.

(IV). Bookkeeping standard money

     The Company takes RMB as the standard currency for bookkeeping.

(V). Accounting treatment of the entities under common and different control

(1) Consolidation of entities under common control

     Assets and liabilities obtained by the merging party are calculated at their book value with the merged parties
at the merger day in addition to the adjustment made given the difference in accounting policies. The differences
between the book value of net assets and the book value of consideration price (or the total of face value of share
issued) are adjusted to the capital reserve (share capital premium). If the share capital premium is not enough to
offset the difference, it will be adjusted to the retained gains.
     The direct expenses arising from the merger are included in profits and losses in the current period.

(2) Consolidation of entities under different control

      For merger of entities under different control, the merger cost is the fair value of the asset paid, liability
undertaken, and equity securities issued for exchanging of control power over the entities at the day of acquisition.
On the acquisition day, the assets and liabilities (if any) acquired by the Company from the acquired party are
recognized on the fair value.
      Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisal services
occurred relating to the merger of entities are accounted into current income account when occurred. The
transaction fees of equity certificates or liability certificates issued by the purchaser for payment for the
acquisition are accounted at the initial amount of the certificates.
      If the merger costs exceed the fair value of the recognizable net assets of the acquired party in the merger, it
is recognized as goodwill and measured based the costs after the accumulative impairment provision is deducted;
if the fair value exceeds the costs, it is included in the income statement for the period after being re-examined.




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(VI). Preparation of Consolidated Financial Statements

(1). Preparation of Consolidated Financial Statements

     The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries.
     The consolidated financial statements are prepared by the Company based on financial statements of the
Company and subsidiaries and according to other related information and adjusted as long-term equity investment
of subsidiaries through the equity method. During preparation of consolidated financial statements, the accounting
policies and period of the Company and subsidiaries must be the same. Major transactions and balances between
companies are offset.
     The part of the shareholders equity in subsidiaries not owned the Company are separately listed under the
shareholders equity as minority shareholders equity in the consolidated balance sheet.The part of the
subsidiaries net profits and losses for the current period that belongs to minority shareholders is listed as minority
shareholders profits and losses under net profit in the consolidated income statement. If the losses of subsidiaries
shared by the minority shareholders exceed the part of the owners equity of the subsudiaries at the beginning of
the period, the excessive part will offset the minority shareholders equity.

(2) Accounting methods for the share equity of the same subsidiary purchased and sold in two consecutive
accounting years

(VII) Recognition of cash and cash equivalents

     Cash refers to cash on hand and deposits that can be used at any time for payment. Cash equivalent refers to
the investments with short term, strong liquidity and small risk of value fluctuation that are held by the Company
and easily converted into cash with known amount.

(VIII) Foreign exchange business and foreign exchange statement translation

(VIII) Foreign currencies

      Trades of the Company made in foreign currencies are translated into RMB basing on the spot exchange rate
on the date when the trade is conducted.
      At the balance sheet date, foreign currency items are translated on the spot exchange rate of the balance sheet
date. The exchange differences caused by the difference in exchange rates on the balance sheet date and initial
recognizing date or previous balance sheet date is included in the current profits and losses. Non-monetary items
accounted in foreign currency and on historical costs are exchanged with the spot exchange rate on the transaction
date.

(2) Translation of foreign exchange statement

(IX) Financial instrument

      Financial instrument refers to a companys financial assets and contracts that form other units of financial
liabilities or equity instruments.



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(1) Classification of financial instruments

     Financial assets are categorized as: financial assets measured at fair value with variations accounted into
current income account, loans, account receivables and disposable financial assets.
Receivables
     Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount or
can be confirmed, including receivable accounts and other receivables. Receivables adopt the effective interest
method and are further measured by amortized cost. Gain/loss generated at final recognition, impairment or
amortization is accounted into the current gain/loss account.
Sellable financial assets
     Sellable financial asset refers to those sellable non-derivate financial assets recognized initially and financial
assets otherthan the above-mentioned types of financial assets. Sellable financial assets are further measured by
fair value and the premium/discount is amortized by the effective interest method and recognized as interest
income. Other than the exchange difference of impairment loss and foreign exchange monetary financial assets,
which is recognized as current gain and loss, the variations in fair value of sellable financial assets is recognized
as other comprehensive gain and accounted in capital reserve. When it is derecognized and transferred out, it is
accounted into the current gain/loss account.Dividends and interest income related to selleable financial assets are
accounted into the current gain/loss account.
     The Companys financial liabilities are mainly other financial liabilitiesOther financial liabilities adopt the
effective interest method and are further measured by amortized cost. Gain/loss generated at final recognition or
amortization is accounted into the current gain/loss account.

(2) Recognition and measurement of financial instruments

     The Company recognizes a financial asset or liability when it becomes one party in the financial instrument
contract.
     Financial asset is derecognized when:
     (1) The contractual right to receive the cash flows of the financial assets is terminated;
     (2) The financial asset is transferred and meets the following derecognition condition.
     Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.

(3) Recognition and measurement of financial assets transfer

      The transfer of financial assets refers to transferring or delivering the financial assets to another party
(receiver) other than the issuing party of the financial assets.
      Recognition of the financial asset is terminated as soon as all of the risks and rewards attached to the
financial asset have been transferred to the receiver. Whereas if all of the risks and rewards attached to the
financial assets are reserved, recognition of the financial asset shall not be terminated.
      When the Company neither transfers nor reserve almost all risks and rewards attached to the financial assets,
it will be handled as: When the controlling power over the financial asset is given up, the financial assets will be
derecognized and the generated assets and liabilities will be recognized; when the controlling power is not given
up, financial asset and related liability shall be recognized according to the extend the Company is involving in
the financial asset.




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(4) De-recognition conditions of financial liabilities

     When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of the
financial liabilities are derecognized. When the Company (debtor) and creditor enter into an agreement to replace
the existing financial liabilities by undertaking new financial liabilities and the contract terms for the new
financial liabilities are essentially different from those for the existing one, the existing financial liabilities will be
derecognized and new financial liabilities will be recognized.

(5) Recognition of fair value of financial assets and liabilities

     For financial assets in an active market, the Company uses the prevailing quotations or asking prices to
determine the fair value.
     If there is no active market, the Company uses evaluation techniques to determine the fair value. The results
derived from the adoption of valuation technologies reflect the trading prices that may be adopted in arms length
basis transactions on the valuation date. Valuation techniques include using recent arms length market
transactions between knowledgeable, willing parties, if available, reference to the current fair value of another
instrument that is substantially the same, a discounted cash flow analysis and option pricing models.
     The Company has adopted valuation techniques that have been widely accepted by market participants and
proven reliable by previous effective transaction prices. When using valuation techniques to determine financial
instruments fair value, the Company has managed to use all market parameters that market participants would
consider during financial instrument pricing and transaction prices observable in the current market for same
financial instruments to examine the effectiveness of the valuation techniques.

(6) Impairment test and provision of financial assets (excluding receivables)

     The Company checks the book value of financial assets on the balance sheet date. Impairment provision will
be made in case of objective evidence proving impairment to the financial assets. Objective evidence proving
impairment to the financial assets refers to events actually occur after the initial recognition of financial assets,
with influence on the estimated future cash flows of the financial assets and can be reliably measured by the
Company.

Financial assets measured at amortized cost

      If there is objective evidence proving impairment to the financial assets, the book value of the financial assets
will be written down to the present value of the estimated future cash flow (excluding undiscovered future credit
loss). The write-down amount is accounted into the current gain/loss account. The present value of the estimated
future cash flow is determined by the original effective discount rate with the value of the guanrantee considered.
      Conduct impairment test separately for major financial assets. If there is objective evidence suggesting
impairement, determine the impairment loss and account it into the current gain/loss account. Conduct impairment
test for other financial assets including financial assets combination with similar credit risk features. Test financial
assets without impairment separately (including major and minor financial assets) and conduct impairment test in
the financial assets combination with similar credit risk features. Conduct impairment test for financial assets
separately recognized as impaired excluding financial assets combination with similar credit risk features.
      After the Company recognizes impair loss to financial assets measured by amortized cost, if there is object
evidence suggesting that the value of the financial assets is restored objectively due to an event after the loss, the

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recognized impairment loss can be reversed and accounted into the current gain/loss account. The book value after
the reversal must not exceed the amortized cost of the financial assets on the reversal date assuming that no
impairment provision was made.

Sellable financial assets

     If there is objective evidence suggesting impairment to the financial assets, the accumulative loss generated
by the decrease in the fair value that has been directed accounted into capital reserve should be transferred out and
accounted into the current gain/loss account. The transferred accumulative loss is the balance of the initial
acquisition cost of the selleable financial assets after the recovered principal and amortized amount, current fair
value and impair loss that has been accounted into the gain/loss account are deducted.
     For the sellable debt instruments recognized as impaired, if the fair value increases in the following
accounting period objectively due to an event after the original impair loss is recognized, the impairment loss will
be reversed and accounted into the current gain/loss account. Impairment loss incurred in investment of sellable
equity instrument is not reversed through the gain/loss account.

Financial assets measured at cost

     If there is no quotation in an active market and its fair value cannot be measured reliably or the derivative
financial assets that linked to the equity instrument and can only settled by delivering the equity instrument is
impaired, the difference between the book value of the financial assets and the current value recognized by
discounting the future cash flow against the market yield of similar financial assets in the current market is
recognized as the impairment loss and accounted into the current gain/loss account. The impairment loss cannot
be reversed after being recognized.



(7) The basis of reclassifying the immature investment held until maturity as sellable financial assets, indicating
changes in the intention or capability of holding the investment

10. Recognition standard and provision method for receivable bad debt provision

     Receivables include receivable accounts, other receivables and prepayment.
     The Company divides receivable accounts into project receivables and product receivables. Project
receivables are those recognized at percentage according to the construction contract, product receivables are
those formed in other ways.

(1) Receivables with major individual amount and bad debt provision provided individually


                                                             For the current year, the Company recognizes project
                                                             receivables over RMB8 million (inclusive) as “individual
                                                             receivable with large amount” while recognizes product
Judging basis or standard of major individual amount
                                                             receivables over RMB2 million (included) as “individual
                                                             receivable with large amount” and other receivables over
                                                             RMB1 million (included) as “individual receivable with large



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                                                                             China Fangda Group Co., Ltd.        2013Interim Report


                                                                     amount”.

                                                                     The Company performs impairment examination individually
                                                                     on each large amount receivables, and recognizes impairment
Provision method for account receivable with major individual        and provides bad debt provision when the impairment is
amount and bad debt provision provided individually                  recognized based on objective evidence. Those not impaired
                                                                     are accounted along with the minor amount receivables and
                                                                     recognized in risk groups.


(2) Recognition and providing of bad debt provisions on groups


               Group                      Providing method                                 Grouping basis

Account age                        Aging method                   Account age

Receivable accounts consolidated Other method                     Consolidation scope

Receivables adopting the aging method in the group
√ Applicable □ Inapplicable

                Age                Providing rate for receivable account %            Providing rate for other receivables %

Within 1 year (inclusive)                                               3%                                                        3%

1-2 years                                                              10%                                                     10%

2-3 years                                                              30%                                                     30%

Over 3 years                                                           50%                                                     50%

3-4 years                                                              50%                                                     50%

4-5 years                                                              50%                                                     50%

Over 5 years                                                           50%                                                     50%

Receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Receivables adopting other methods in the group
√ Applicable □ Inapplicable

                        Group                                                            Method

Receivable accounts consolidated                      Individual recognition method


(3) Account receivable with minor individual amount and bad debt provision provided individually


Reasons for separate bad debt provision       Long account age or deterioration of customer creditability

                                              According to the difference between the present value of future cash flow and the
Method of bad debt provision
                                              book value




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11. Inventories

(1) Classification of inventories

    The Companys inventories include purchased materials, raw materials, low-value consumables, OEM
materials, products in process, semi-finished goods, finished goods, agency goods, and construction in process.

(2) Pricing of delivering inventory

Weighted average method

      Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks and
goods shipped in transit are measured by the weighted average method.
      Construction contracts are measured by the effective cost, including direct and indirect expenses generated
before the contracts are fulfilled. Costs generated and recognized accumulatively by construction in process and
settled payment are listed in the balance sheet as offset net amounts.The excessive part of the sum of the generated
costs and recognized gross profit (loss) over the settled payment is listed inventories; the excessive part of the
settled payment over the sum of the generated costs and recognized gross profit (loss) is listed as the prepayment
received.
      Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably
measured and it is likely to enter into contracts, are accounted as the contract cost when the contracts are entered
into; or into the current gain/loss account if the conditions are not met.

(3) Recognition of inventory realizable value and providing of impairment provision

      On the balance sheet date, inventories are accounted depending on which is lower between the cost and the
net realizable value. If the cost is higher than the net realizable value, the impairment provision will be made.
      At overall verification of inventories at the end of year, when the net realizable value is lower than the cost,
provisions for impairment of inventories shall be drawn. Provisions for impairment of inventories shall be
accounted according to the difference between the cost of individual inventory items and the net realizable value.
      The Company generally made inventory impairment provision individually or by categories. Including: for
inventories such as finished products or materials which will be directly sold, in the normal operation, the
realizable net value will be the balance of estimated selling price less sales expenses and relative taxations; For
those inventories need further processing, in the normal operation, the realizable net value will be the balance of
estimated sales price less costs to make it finished, less estimated sales expenses, and less relative taxation. At the
balance sheet day, inventories with contract prices will be determined for realizable value separately from those
without contract prices. Inventories with similar purpose or final use, produced and to be sold in the same district
and cannot be separated for valuation will be provided together; inventory of a large quantity and with low prices
are provided by categories. On the balance sheet day, if the influence of the inventory value write-down has
disappeared, the impairment provision will be reversed within the provided amount.

(4) Inventory system

The Company uses perpetual inventory system.
The Company uses perpetual inventory system.


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(5) Amortizing of low-value consumables and packaging materials

Low price consumable
On-off amortization basis
Low-value consumables are amortized on on-off amortization basis at using.
Package
On-off amortization basis
Packages are amortized on on-off amortization basis at using.

12. Long-term share equity investment

(1) Recognition of initial investment costs

All the long-term share equity investments of the Company are the investment in subsidiaries: Investment of the
Company in subsidiaries is valued at investment costs. For long-term share equity investment formed by
shareholding and merger. Retrospective or retrieved investment is adjusted to the cost of long term equity
investment.

2. Subsequent measurement and recognition of gain/loss

The Company uses cost basis in subsequent measurement of investment in subsidiaries, and adjusted on equity
basis when preparing the consolidated financial statement. For the long-term equity investment measured on the
cost basis, except for the announced cash dividend or profit included in the practical cost or price when the
investment was made, the cash dividends or profit distributed by the invested entity are recognized as investment
gains in the current gain/loss account.

(3) Basis for recognition of common control and major influence on invested entities

(4) Impairment examination and providing of impairment provision

The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists,
the Company estimates the recoverable amount and conducts the impairment test. Impairment test is conducted
annually for goodwill generated by mergers and intangible assets that have not reached the useful condition no
matter whether the impairment sign exists. The recoverable amount is determined by the higher of the net of fair
value minus disposal expense and the present value of the predicted future cash flow. The Company estimates the
recoverable amount on the individual asset item basis; whether it is hard to estimate the recoverable amount on the
individual asset item basis, determine the recoverable amount based on the asset group that the assets belong to.
The assets group is determined by whether the main cash flow generated by the group is independent from those
generated by other assets or assets groups. When the recoverable amount of the assets or assets group is lower
than its book value, the Company writes down the book value to the recoverable amount, the write-down amount
is accounted into the current income account and the assets impairment provision is made. For goodwill
impairment test, the book value of goodwill generated by mergers is amortized through reasonable measures since
the purchase day to related asset groups; those cannot be amortized to related assets groups are amortized to
related combination of asset groups. The related asset groups or combination of asset groups refer to those that can

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benefit from the synergistic effect of mergers and must not exceed to the reporting range determined by the
Company. When the impairment test is conducted, if there is sign of impairment to the asset group or combination
of asset groups related to goodwill, first perform impair test for asset group or combination of asset groups
without goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable
amount is lower than the book value, recognize the impairment loss of the goodwill. Once recognized, the asset
impairment loss cannot be written back in subsequent accounting period.

13. Investment real estates

      Investment real estates are held for rent or capital appreciation, or both. The Companys investment real
estates include land use right, land use right held for appreciation and transfer and leased buildings.
      For investment real estates with an active real estate transaction market and the Company can obtain market
price and other information of same or similar real estates to reasonably estimate the investment real estates fair
value, the Company will use the fair value mode to measure the investment real estates subsequently. Variations
in fair value are accounted into the current gain/loss account.
      The fair value of investment real estates is determined with reference to the current market prices of same or
similar real estates in active markets; when no such price is available, with reference to the recent transaction
prices and consideration of factors including transaction background, date and district to reasonably estimate the
fair value; or based on the estimated lease gains and present value of related cash flows.
      For an investment real estate whose fair value is proven unable to be obtained continuously and reliably by
objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains
as assumed.
      The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with
book value and related taxes deducted is accounted into the current gain/loss account.

14. Fixed assets

(1) Conditions for fixed asset recognition

Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one accounting year of service life.The fixed
assets can only be recognized hen economic interests related to the fixed assets are very likely to flow into the
company and the costs of the fixed assets can be reliably measured. The Company measures fixed assets at the
actual costs when the fixed assets are obtained

(3) Recognition and pricing of financing leased fixed assets

The Company measures the leased assets as the lower of the fair value and the present value of minimum lease
payment of the leased assets on the starting date of the lease and records the minimum lease payment as long-term
payable and the difference between the two as unrecognized financing expense. The initial directo expense is
accounted into asset value. Unrecognized financial cost is recognized as financial cost at actual interest basis to
the periods of the leasing period. The Company adopts the depreciation policy same as the self-owned fixed assets
to made provision for depreciation of leased asssets.


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(3) Depreciation of fixed assets

     The Company adopts the straight age average basis to make depreciation provision. The Company will start
to make the depreciation provision when the fixed assets reach the preset serviceable condition and stop to make
the depreciation provision when it is derecognized or categorized as non-current assets held for sales. Without
considering depreciation provision, the Company determines annual depreciation rates for various fixed assets
according to types, predicted service life and residual value:
             Type                  Service year (year)       Residual rate %             Annual depreciation rate %

Houses & buildings            30-45                                            10% 2%-2.57%

Equipment & machinery         10                                               10% 9%

Electronic equipment          5                                                10% 18%

Transport equipment           5                                                10% 18%


(4) Impair test and impairment provision for fixed assets

     The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test. Impairment test is
conducted annually for goodwill generated by mergers and intangible assets that have not reached the useful
condition no matter whether the impairment sign exists.
     The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is
determined by whether the main cash flow generated by the group is independent from those generated by other
assets or assets groups.
     When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
     For goodwill impairment test, the book value of goodwill generated by mergers is amortized through
reasonable measures since the purchase day to related asset groups; those cannot be amortized to related assets
groups are amortized to related combination of asset groups. The related asset groups or combination of asset
groups refer to those that can benefit from the synergistic effect of mergers and must not exceed to the reporting
range determined by the Company.
     When the impairment test is conducted, if there is sign of impairment to the asset group or combination of
asset groups related to goodwill, first perform impair test for asset group or combination of asset groups without
goodwill and calculate the recoverable amount and recognize the related impairment loss. Then conduct
impairment test on those with goodwill, compare the book value with recoverable amount. If the recoverable
amount is lower than the book value, recognize the impairment loss of the goodwill.
     Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.

(5) Others

     For fixed assets for which depreciation provision is made, the depreciation rate will be determined after the

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accumulative depreciation provision amount is deducted.
     At end of each fiscal year, verification will be made on the useful life, predicted retained value, and
depreciation basis.
     The useful life will be adjusted if the useful life is different from the predicted one; the net residual value will
be adjust if the net residual value is different from the predicted one.
     Overhaul cost generated by regular examination on fixed assets is recognized as fixed assets costs when there
is evidence proving that it meets fix assets recognition conditions. If not, it will be accounted into the current
gain/loss account. Depreciation provision will be made for fixed assets between two regular overhauls.

15.Construction in process

(1) Categories of construction in process

The Company recognizes the cost of construction in process according to the actual construction expense,
including necessary engineering expenses, borrowing costs to be capitalized before the engineering reaches the
preset service condition and other related costs.

(2) Standard and timing for transferring construction in process into fixed assets

Construction in process will be transferred to fixed assets when it reaches the preset service condition.

(3) Impair test and impairment provision for construction in process

     The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test.
     The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow.
     When the recoverable amount of the construction in process is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
     Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.

(XVI) Borrowing expenses

(1) Recognition principles for capitalization of borrowing expenses

      Borrowing expenses occurred to the Company that can be accounted as purchasing or production of asset
satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.Borrowing expenses
start to be capitalized when all of the followings are satisfied:
      (1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or
undertaking of debt with interest done for purchasing or producing of assets;
      (2) The borrowing expense has already occurred;
      (3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has already
started.


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(2) During borrowing expense capitalization

     When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of
borrowing expenses shall be terminated. Borrowing expenses incurred after assets that meet capitalization
conditions reach the service or sales conditions are accounted into the current gain/loss account according to the
actual amounts.

(3) Capitalization suspension period

     If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for
over 3 months, capitalizing of borrowing expenses shall be suspended. During the normal suspension period,
borrowing expenses will be capitalized continuously.

(4) Calculation of the capitalization amount of borrowing expense

(XVII) Biological assets

18. Petrolum assets

19. Intangible assets

(1) Pricing of intangible assets

Intangible assets are initially measured based on costs.




(2) Useful life of intangible assets with limited useful life

     Where the useful life is limited, the intangible assets will be amortized within the predicted useful life by
using the amortization method that can reflect predicted realization way of the economic benefit of the assets;
whether the realization way cannot be reliably confirmed, use the straight-line method. If the useful life is
uncertain, the intangible assets are not amortized.
            Items                  Estimated useful life                               Basis

Land using right             Beneficial age                Contract

Patent                       10 years                      Forecast beneficial age

Proprietary technology       10 years                      Forecast beneficial age

Software                     5, 10 years                   Forecast beneficial age

Other intangible assets      10 years or beneficial age    Forecast beneficial age




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(3) Judgment basis of intangible assets without definite useful life

(4) Provision of intangible assets impairment

     The Company judges whether there is a sign of impairment to assets on the balance sheet day. If such sign
exists, the Company estimates the recoverable amount and conducts the impairment test.
     The recoverable amount is determined by the higher of the net of fair value minus disposal expense and the
present value of the predicted future cash flow. The Company estimates the recoverable amount on the individual
asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis,
determine the recoverable amount based on the asset group that the assets belong to. The assets group is
determined by whether the main cash flow generated by the group is independent from those generated by other
assets or assets groups.
     When the recoverable amount of the assets or assets group is lower than its book value, the Company writes
down the book value to the recoverable amount, the write-down amount is accounted into the current income
account and the assets impairment provision is made.
     Once recognized, the asset impairment loss cannot be written back in subsequent accounting period.

(3) Specific standard for distinguish between research and development stage

(6) Audit of internal research and development expenses

     The research expenses are accounted the current gain/loss account.
     Development expenses are capitalized if they meet the capitalization conditions; if not, accounted into the
current income account.
     Expenses in the development stage capitalized are listed as development expense on the balance sheet and
transferred to intangible assets when the project reaches the useful condition.



20. Long-term amortizable expenses

     The Companys long-term amortizable expenses are measured at the actual costs and amortized averagely
based on the beneficial term. For long-term amortizable expenses that are not beneficial in the subsequent account
periods, the residual value is fully accounted into the current gain/loss account.

(21) Transfer of assets without repurchase conditions

(22) Anticipated liabilities

(1) Recognition standards of anticipated liabilities

      When responsibilities occurred in connection to contingent issues, and all of the following conditions are
satisfied, they are recognized as expectable liability in the balance sheet:
      (1) This responsibility is a current responsibility undertaken by the Company;
      (2) Execution of this responsibility may cause financial benefit outflow from the Company;
      (3) Amount of the liability can be reliably measured.

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(3) Measurement of anticipated liabilities

     Expected liabilities are initially measured at the best estimation on the expenses to exercise the current
responsibility, and with considerations to the relative risks, uncertainty, and periodic value of currency. When the
periodic value of currency is with major influence, then the best estimation will be determined at the discount of
future cash outflow.The book value of expected liability is revised at balance sheet day, and adjustment will be
made to reflect current best estimation.

23 Share payment and equity instruments

(1) Share payment category

(2) Recognition of fair value of equity instruments

(3) Basis for recognition of the best estimation of realizable equity instruments

(4) Related accounting treatment of implementation, modification and suspension share payment plan

 24 Repurchase of the Companys shares

25 Revenue

(1) Specific judgment standard of recognition time of goods sales revenue

When all of the following conditions are satisfied, the sales of goods are recognized as sales income according to
the contract amount received or receivable from the buyer: (1) Main risks and rewards attached to the ownership
of the goods have been transferred to the buyer; (2) No succeeding power of administration or effective control is
reserved which are usually attached to ownership; (3) Amount received can be reliably measured; (4) Related
financial benefit may inflow to the Company; (5) Relative costs, occurred or will occur, can be reliably measured.

(2) Basis for recognition of revenue from demising of asset using rights

     The revenue is recognized when the financial benefit in connection with the demising of asset using right
was received and the amount can be reliably measured.

(3) Basis for recognition of revenue from providing of labor services

     If they are not in the same year, then use the estimation on percentage basis when it is possible.
     The completion percentage is the costs occurred on the total cost.
     The reliable estimation of the result of providing of labor service must meet the following conditions: A. the
revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the
completion can be determined reliably; D. costs incurred or will be incurred can be reliably measured.
     If the result cannot be reliably estimated, use the service cost amount of the compensation obtained or will be
obtained to recognize the revenue of the providing of labor service and recognize the incurred laber service cost as
the current expense. If no compensation can be obtained for incurred labor service cost, no revenue can be

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recognized.

(4) Basis and method for recognition of contract completion progress when the revenue from providing of labor
service and construction contracts is recognized on the competition percentage.

      On the balance sheet day, the Company recognizes the contract income and costs using the completion
percentage method if the result of the construction contract can be reliably estimated. If not, such contracts are
treated differently. If the contract cost can be recovered, the revenue is recognized according to the actual contract
costs that can be recovered and the contract cost is recognized as the current expense; if not, the contract cost is
recognized as the current expense and no revenue is recognized.
      If the estimated total costs exceed the total revenue, the Company recognizes the estimated loss as the current
expense.
      The competition percentage is determined by the share of the costs incurred in the total cost.
      The reliable estimation of the result of a construction contract must meet the following conditions: A. the
revenue can be reliably measured; B. the economic benefit is very likely to flow into the company; C. the
completion cost can be clearly distinguished and determined reliably; D. the completion and costs that will be
incurred for completion of the contract can be reliably recognized.
      Metro screen door projects of the Company and Shenzhen Fangda Automatic System, and curtain wall
project of Fangda Decoration are individual construction contracts. They are accounted by the following means:
      Construction contracts completed within a fiscal year are recognized for their income and cost upon
completion.
      Income and expenses of the construction contracts carried over-year are recognized on percentage basis at
balance sheet day when all of the following conditions are satisfied: contract income can be reliably measured,
relative financial benefit can inflow to the Company; progress of the project and costs to complete the contract can
be reliably recognized; cost occurred to complete the contract can be clearly distinguished and reliably measured,
which enables comparing of actual cost with predicted cost.
      Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the
completion day. The competition percentage is determined by the share of the costs incurred in the total cost.
      Construction contracts completed in current term are recognized for income according to the actual total
income of the contract less income recognized in previous terms; meanwhile, the total costs of the contract less
costs recognized in previous terms are recognized as current contract costs. If the total contract cost is predicted to
be greater than the predicted total income, the predicted loss shall be recognized as current cost instantly.
      Parts of the curtain wall project under Fangda Decoration are outsourced, and administrative fees are
collected at the agreed rate. For these construction contracts, income will be recognized when ongoing payment
for the project is received and corresponding costs are transferred.
      Revenue of products for domestic sales is recognized when the Company delivers the products and receives
the sales payment or obtains the payment voucher; revenue for products for overseas sales is recognized at
departure of the products.




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                                                                    China Fangda Group Co., Ltd.     2013Interim Report


26 Government subsidy

(1) Type

(2) Accounting method

      Government subsidy is only recognized when the required conditions are met and the subsidy is received.
      When a government subsidy is monetary capital, it is measured at the received or receivable amount. If there
is objective evidence indicating that the subsidy is given based on fixed amount, it can be measured at the
receivable amount, otherwise it is recognized at the received amount. None monetary capital are measured at fair
value; if no reliable fair value available, recognized at RMB1.
      Government subsidies in connection with capital are recognized as differed income, and amortized straight to
its useful life, and accounted into current income account. Government subsidies in connection with gains, which
are used to cover current expenses or losses, are recognized as current gain/loss, if used to cover future expenses
or losses, recognized as differed gains, and recorded to current income account to the period when the expenses
are recognized. Government subsidy measured at the nominal amount is accounted into current income
account.
     If a recognized government subsidy needs to be returned, if there are relative differed gains, the balance of
differed gains will be setoff, the exceeded part shall be recorded into current income account; if there is no relative
differed gain, record to current income account directly.

27 Deferred income tax assets and deferred income tax liabilities

(1) Basis for recognition of deferred income tax assets

For deductable temporary difference, deductible loss and tax deduction that can be accounted in subsequent years,
the Company recognizes the incurred deferred income tax assets to the extent to the future income tax proceeds
that is very likely to be received for deducting deductable temporary difference, deductable loss and tax deduction,
unless the deductable temporary difference is generated in following transactions: (1) the transaction is not a
merger and the transaction does not affect the accounting profit or taxable proceeds; (2) for the taxable temporary
difference related to investment in subsidiaries, the corresponding deferred income tax assets are recognized when
the following condition is met: the temporary difference is very likely to be reversed in the foreseeable future and
it is very likely to receive the taxable proceeds that can be used to deduct the deductable temporary difference.

(2) Basis for recognition of deferred income tax liabilities

The taxable temporary difference recognizes the related deferred income tax liabilities, unless the taxable
temporary difference is created by the following transactions: (1) Initial recognition of goodwill, or of assets or
liabilities generated in transactions with the following features: the transaction is not a merger and the transaction
does not affect the accounting profit or taxable proceeds; (2) For taxable temporary difference related to
investment in subsidiaries, the reversal timing for the temporary difference can be controlled and the difference is
unlikely to be reversed in the foreseeable future.




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                                                                  China Fangda Group Co., Ltd.    2013Interim Report


28 Operational leasing and financial leasing

(1) Accounting of operational leasing

     The Company as the leasor: Rentals from operational leasing are recognized as current gains on straight basis
to the periods of leasing. Initial direct expenses are recorded to current income account.
     The Company as the leasee: Rentals in operational leasing are recorded to relative capital cost or current
income account on straight basis to the periods of leasing. Initial direct expenses are recorded to current income
account.

(2) Accounting of financial leasing

     The Company as the leasor: In financial leasing, the book value of financial rental is the sum of lowest
amount of the rent and the initial expenses since the date when the lease is started.The difference between the sum
of lowest rental, initial direct expense and unsecured balance and the current value is recognized as the unrealized
financial income. Unrealized financial income is recognized as financial income at actual interest basis to the
periods of the leasing period.
     The Company as the leasee: The Company measures the leased assets as the lower of the fair value and the
present value of minimum lease payment of the leased assets on the starting date of the lease and records the
minimum lease payment as long-term payable and the difference between the two as unrecognized financing
expense. The initial direct expense is accounted into asset value. Unrecognized financial cost is recognized as
financial cost at actual interest basis to the periods of the leasing period. The Company adopts the depreciation
policy same as the self-owned fixed assets to made provision for depreciation of leased asssets.

(3) Accounting of sale and lease-back

29 Assets held for sales

(1) Recognition standard

(2) Accounting treatment

30 Asset securitization

31 Accounting of hedging

32 Major changes in accounting policies and estimates

Changes in major accounting estimates in the report period
□ Yes √ No
No change in major accounting policies and estimates in the report period

(1) Changes in accounting policies

Changes in major accounting policies in the report period: no

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                                                                        China Fangda Group Co., Ltd.   2013Interim Report


□ Yes √ No

(2) Changes in accounting estimates

Changes in major accounting estimates in the report period
□ Yes √ No

33 Correction of previous accounting faults

Faults in previous accounts in the current report period
□ Yes √ No
None

(1) Retrospective restatement method

Faults in adoption of the retrospective restatement method in the report period
□ Yes √ No

(2) Prospective application method

Faults in adoption of the prospective application method in the report period
□ Yes √ No

34 Other major accounting policies, accounting estimates and preparation of financial statements

V Taxation

1. Major taxes and tax rates


                        Tax                                 Tax basis                             Tax rate

VAT                                        Taxable income                           6%, 13% and 17%

Business tax                               Taxable income                           3% and 5%

City maintenance and construction tax      Taxable turnover                         7%

Enterprise income tax                      Taxable income                           15% and 25%


2. Tax preference and approval

      (1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Scientific
Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau
on September 12, 2012, Fangda Decoration was entitled to enjoy a tax preference of enterprise income tax of 15%
for three years (2012-2014) since the qualifications were awarded.
    (2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Scientific
Innovation, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and Shenzhen Local Tax Bureau

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                                                                                  China Fangda Group Co., Ltd.            2013Interim Report


on September 12, 2012, Fangda Automation was entitled to enjoy a tax preference of enterprise income tax of
15% for three years (2012-2014) since the qualifications were awarded.
    (3) According to the Certification of High-tech Enterprise issued by Jiangxi Department of Science and
Technology, Jiangxi Finance Department, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau on
November 7, 2012, Jiangxi New Material was entitled to enjoy a tax preference of enterprise income tax of 15%
for three years (2012-2014) since the qualifications were awarded.

VI Merger of enterprises and consolidated financial statements

1. Subsidiaries

(1) Subsidiaries founded or acquired from investment

                                                                                                                                       In RMB

                                                                                                                                        The
                                                                                                                                      balance
                                                                                                                                       of the
                                                                                                                                      owners
                                                                                                                                      interest
                                                                                                                                       in the
                                                                                                                                       parent
                                                                                                                                        after
                                                                                                                                      deductin
                                                                                                                                       g the
                                                                                                                                      excessiv
                                                                       Balance                                            Amount
                                                                                                                                      e part of
                                                                       of other                                              for
                                                             Actual                                                                   the loss
                                                                        items                                             deductin
                                                             investm                                 Consoli Minor                    shared
                   Register             Register                       composi Shareho Proporti                               g
Subsidia Owners               Busines              Busines    ent at                                  date     sharehol                  by
                     ed                   ed                           ng net      lding    on of                         minority
   ry   hip type                 s                 s scope the end                                   stateme    ders                  minority
                   address              capital                        investm     (%)     votes %                         gain/los
                                                             of the                                    nts      equity                sharehol
                                                                        ent in                                             s in the
                                                             period                                                                     ders
                                                                       subsidia                                           minority
                                                                                                                                      over the
                                                                         ries                                             interests
                                                                                                                                      share of
                                                                                                                                      profits
                                                                                                                                       in the
                                                                                                                                      owners
                                                                                                                                      interest
                                                                                                                                       in the
                                                                                                                                      subsidia
                                                                                                                                       ry of
                                                                                                                                      minority
                                                                                                                                      sharehol
                                                                                                                                       der at


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                                                                             China Fangda Group Co., Ltd.   2013Interim Report


                                                                                                                       the
                                                                                                                     beginni
                                                                                                                      ng of
                                                                                                                     the year

Shenzhe                        Designi                Designi
n                              ng,                    ng,
Fangda                         manufac                manufac
           Fully-o
Decorati                       turing,                turing,
           wned      Shenzhe                310,000                310,000
on                             and                    and                      100%    100% Yes
           subsidia n                       ,000.00                ,000.00
Enginee                        installati             installati
           ry
ring                           on of                  on of
Co.,                           curtain                curtain
Ltd.                           walls                  walls

                               Design,                Design,
Shenzhe
                               R&D,                   processi
n
                               installati             ng and
Fangda Fully-o
                               on and                 installati
Automa wned          Shenzhe                105,000                183,777
                               sales of               on of                    100%    100% Yes
tic        subsidia n                       ,000.00                ,271.73
                               railway                railway
System ry
                               screen                 screen
Co.,
                               door                   door
Ltd.
                               systems                systems

                                                      R&D,
                               Producti
                                                      design
Shenzhe                        on and
                                                      and
n                              distribut
                                                      producti
Fangda Fully-o                 ion of
                                            USD3,2 on of
Yide       wned      Shenzhe new-typ                               3,200,0
                                            00,000. new-typ                    100%    100% Yes
New        subsidia n          e                                     00.00
                                            00        e
Material ry                    composi
                                                      composi
Co.,                           te
                                                      te
Ltd.                           material
                                                      material
                               s
                                                      s

                               Produtio               Producti
                               n and                  on and
Fangda
                               sales of               sales of
New
           Fully-o             new-typ                new-typ
Material                                    USD12,
           wned      Nancha e                         e            12,000,
s                                           000,000                            100%    100% Yes
           subsidia ng         material               material      000.00
(Jiangxi                                    .00
           ry                  sm                     s,
) Co.,
                               composi                composi
Ltd.
                               te                     te
                               material               material


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                                                                        China Fangda Group Co., Ltd.   2013Interim Report


                           s and                 s,
                           producti              producti
                           on of                 on of
                           curtain               curtain
                           walls                 walls,
                                                 window
                                                 s, metal
                                                 structur
                                                 es and
                                                 compon
                                                 ents,
                                                 metail
                                                 products
                                                 and
                                                 environ
                                                 mental
                                                 protecti
                                                 on
                                                 material
                                                 s and
                                                 products

                           Design,               Design,
                           producti              producti
                           on, sales             on, sales
                           and                   and
                           installati            installati
                           on of                 on of
Jiangxi
                           curtain               curtain
Fangda
          Fully-o          wall                  wall
New
          wned      Nancha alumini 20,000, alumini            20,000,
Type                                                                      100%    100% Yes
          subsidia ng      um           000.00   um           000.00
Alumin
          ry               material              material
um Co.,
                           s, doors,             s, doors,
Ltd.
                           window                window
                           s and                 s and
                           sectiona              sectiona
                           l                     l
                           material              material
                           s                     s

Hong
          Fully-o
Kong
          wned      Hong   Investm HKD10, Investm             10,000.
Junjia                                                                    100%    100% Yes
          subsidia Kong    ent          000.00   ent              00
Group
          ry
Co.,

                                                                                                                      68
                                                                            China Fangda Group Co., Ltd.   2013Interim Report


Ltd.

                              Manufa                 Manufa
                              cturing                cturing
                              of                     of
                              semicon                semicon
                              ductor                 ductor
                              lighting               lighting
                              material               material
                              and                    and
                              chips;                 chips;
                              lighting               lighting
                              source                 source
Shenyan
                              encapsu                encapsu
g
                              lation;                lation;
Fangda Controll
                              developi               developi
Semi-co ed          Shenyan                200,000                108,852                           57,882, -1,825,5
                              ng,                    ng,                    64.58% 64.58% Yes
nductor subsidia g                         ,000.00                ,073.85                            977.20   53.91
                              designin               designin
Lighting ries
                              g,                     g,
Co.,
                              manufac                manufac
Ltd.
                              turing,                turing,
                              engineer               engineer
                              ing,                   ing,
                              installati             installati
                              on and                 on and
                              trading                trading
                              of                     of
                              semicon                semicon
                              ductor                 ductor
                              lighting               lighting
                              system                 system

                                                     Comput
                              Develop                er
                              ing of                 software
                              hardwar                and
Shenzhe
                              e and                  hardwar
n
          Fully-o             software               e
Kexund
          wned      Shenzhe , system 1,000,0 develop              1,000,0
a                                                                             100%    100% Yes
          subsidia n          integrati 00.00        ment           00.00
Softwar
          ry                  on,                    and
e Co.,
                              technica               sales,
Ltd.
                              l                      compute
                              consulti               r
                              ng                     software
                                                     develop

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                                                                        China Fangda Group Co., Ltd.   2013Interim Report


                                                  ment,
                                                  system
                                                  integrati
                                                  on and
                                                  technica
                                                  l
                                                  consulti
                                                  ng

                            Develop               Develop
                            ment                  ment
                            and                   and
                            operatin              operatin
                            g of real             g of real
                            estatem               estatem
Shenzhe
                            ent on                ent on
n
                            land of               land of
Fangda Fully-o
                            which                 which
Property wned     Shenzhe               50,000,               50,000,
                            land use              land use                100%    100% Yes
Develop subsidia n                      000.00                000.00
                            right is              right is
ment      ry
                            legally               legally
Co.,
                            obtained              obtained
Ltd.
                            by the                by the
                            Compan                Compan
                            y;                    y;
                            property              property
                            manage                manage
                            ment                  ment

Notes to subsidiaries founded or acquired from investment
None


(2) Subsidiaries acquired by mergers of companies under the common control

None


(3) Subsidiaries acquired by mergers of companies not under the common control

None


2. Operational entities of control powers generated by special purpose entities or trust operation or lease

None




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                                                                    China Fangda Group Co., Ltd.   2013Interim Report


3. Notes to changes in the consolidation scope

None
□ Applicable √ Inapplicable


4. New entities added to the consolidation and removed from the consolidation during the report period

None


5. Merger of companies under the common control during the report period

None


6. Merger of companies not under the common control during the report period

None


7. Subsidiaries lost due to loss of control in shares during the report period

None


8. Repurchase in the report period

None


9. Merger by absorption in the report period

None


10. Foreign exchange rate of major statement items of overseas operational entities

None


VII Notes to the consolidated financial statements

1. Monetary capital

                                                                                                             In RMB

                                           Closing amount                             Opening amount
           Items                Foreign     Exchange                       Foreign     Exchange
                                                            RMB                                        RMB
                                exchange       rate                        exchange      rate

Cash:                              --           --           17,785.62           --       --               10,565.48

RMB                                --           --           17,303.26           --       --                9,340.48



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                                                                      China Fangda Group Co., Ltd.        2013Interim Report


HK Dollar                             566.96 0.85                 482.36         1,510.76 0.81                       1,225.00

Bank deposits:                   --                 --   259,725,449.78         --                 --        252,155,936.57

RMB                              --                 --   259,724,326.47         --                 --        252,087,857.82

US Dollar                               0.99 6.18                   6.12       10,831.08 6.29                       68,078.75

Canadian Dollar                       230.49 4.85                1,117.19              0.00 0.00                         0.00

Other monetary capital:          --                 --    54,991,866.96         --                 --         26,117,466.56

RMB                              --                 --    54,991,056.74         --                 --         26,116,643.85

US Dollar                             131.13 6.18                 810.22             130.89 6.29                      822.71

Total                            --                 --   314,735,102.36         --                 --        278,283,968.61

      1. In a lawsuit, the court accepted the plaintiffs claim to freeze the subsidiary Fangda Decorations RMB12
million in the bank deposit balance at the end of the year.
      2. The book balance of other monetary fund of RMB54,991,866.96 by the end of the year mainly includes
bank acceptance, deposit for bank accepted notes and purchased financial products. When the cash flow statement
is prepared, bank acceptance and deposit for bank accepted notes and the above-mentioned frozen deposit will not
be accounted as cash equivalent.

2. Transactional financial assets

(1) Transactional financial assets

None


(2) Transactional financial assets with realization limitation

None


(3) Notes to hedging tools and related hedging transactions

None


3. Notes receivable

(1) Classification of notes receivable

                                                                                                                      In RMB

                          Type                             Closing amount                          Opening amount

Bank acceptance                                                         4,006,417.51                           5,668,780.88

Commercial acceptance                                                   1,970,000.00                           1,970,000.00

Total                                                                   5,976,417.51                           7,638,780.88




                                                                                                                           72
                                                                          China Fangda Group Co., Ltd.     2013Interim Report


(2) Pledged notes receivable at the end of period

None


(3) Notes of which the issuer is unable to perform and transferred into account receivable, and notes endorsed to
other parties but remains immature

Notes transferred into account receivable due to the failure of the issuer to perform
Notes endorsed to other parties but remaining immature
                                                                                                                       In RMB

          Issuer                Date of issue                 Due date              Amount                    Notes

CRCC 11 Construction
and Installation          April 23, 2013              October 23, 2013                 2,000,000.00
Engineering Co., Ltd.

Nanjing Xinjiekou
Department Store Co.,     April 24, 2013              July 24, 2013                      872,582.62
Ltd.

Zhejiang Jiayue
                          February 6, 2013            August 6, 2013                     800,000.00
Industrial Co., Ltd.

China Construction
(Changsha) Fuji Curtain
                          May 30, 2013                November 30, 2013                  780,000.00
Wall Decoration Co.,
Ltd.

China Construction 3rd
                          May 27, 2013                August 27, 2013                    602,941.62
Decoration Co., Ltd.

Total                                --                          --                    5,055,524.24             --

Notes to discounted or pledge commercial acceptance
The commercial acceptance worth RMB1.97 million received from Shenzhen Vanke Binhai Real Estate
Development has not matured but has been discounted.

4. Receivable dividend

None


5. Receivable interest

(1) Receivable interest

                                                                                                                       In RMB

          Items              Opening amount                 Increase             Decrease                Closing amount

Deposit interest                          72,833.33              233,765.31           286,015.31                     20,583.33



                                                                                                                            73
                                                                              China Fangda Group Co., Ltd.          2013Interim Report


Total                                     72,833.33              233,765.31                   286,015.31                       20,583.33


(2) Overdue interest

None


(3) Notes to receivable interest

None


6. Account receivable

(1) Account receivable disclosed by categories

                                                                                                                                  In RMB

                                             Closing amount                                            Opening amount

                            Remaining book value         Bad debt provision       Remaining book value          Bad debt provision
           Type
                                          Proportion                 Proportion               Proportion                     Proportion
                             Amount                     Amount                    Amount                      Amount
                                             (%)                        (%)                      (%)                            (%)

Account receivable with
major individual amount     8,819,368.5                4,646,868.1                9,063,813
                                              0.85%                     52.69%                    0.97% 4,399,850.00             48.54%
and bad debt provision                1                          8                      .50
provided individually

Account receivable for which bad debt provision is made by group

Including: receivable out   1,004,826,4                138,296,53                 902,557,0                 132,330,232.
                                             97.07%                     13.76%                   96.68%                          14.66%
of the consolidation             99.62                        9.73                   74.71                              91

                            1,004,826,4                138,296,53                 902,557,0                 132,330,232.
Subtotal                                     97.07%                     13.76%                   96.68%                          14.66%
                                 99.62                        9.73                   74.71                              91

Account receivable with
minor individual amount     21,520,793.                21,520,793.                21,956,50                 21,956,506.8
                                              2.08%                       100%                    2.35%                               100%
and bad debt provision              22                         22                      6.84                             4
provided individually

                            1,035,166,6                164,464,20                 933,577,3                 158,686,589.
Total                                         --                         --                       --                             --
                                 61.35                        1.13                   95.05                              75

Notes to account receivable
The Company divides receivable accounts into project receivables and product receivables. Project receivables are
those recognized at percentage according to the construction contract, product receivables are those formed in
other ways.
For the current year, the Company recognizes project receivables over RMB8 million (inclusive) as “individual
receivable with large amount” while recognizes product receivables over RMB2 million (included) as “individual
receivable with large amount”.


                                                                                                                                          74
                                                                               China Fangda Group Co., Ltd.               2013Interim Report


Account receivable with major individual amount and bad debt provision provided individually at the end of the
period
√ Applicable □ Inapplicable
                                                                                                                                        In RMB

                                              Remaining book
               Description                                            Bad debt provision     Providing rate (%)               Reason
                                                      value

                                                                                                                     Most likely
                                                                                                                     recoverable amount
                                                                                                                     according to the
                                                                                                                     arbitration
Gulf international trading FZE                        8,819,368.51           4,646,868.18                  52.69%
                                                                                                                     agreement, bad debt
                                                                                                                     provision for forecast
                                                                                                                     unrecoverable
                                                                                                                     amount

Total                                                 8,819,368.51           4,646,868.18            --                         --

In the group, the account receivable of which bad debt provision is made through the account aging method:
√ Applicable □ Inapplicable
                                                                                                                                        In RMB

                                         Closing amount                                             Opening amount

                         Remaining book value                                         Remaining book value
        Age
                                             Proportion       Bad debt provision                          Proportion Bad debt provision
                             Amount                                                    Amount
                                                (%)                                                          (%)

Less than 1 year

Including:                     --                --                   --                    --                --                   --

Subtotal for less
                         515,040,571.00         49.75%              15,361,307.17    457,699,537.55          49.03%           13,730,986.12
than 1 year

1-2 years                262,392,504.82         25.35%              26,251,856.47    239,346,914.90          25.64%           23,934,691.50

2-3 years                    85,066,676.94       8.22%              25,520,003.09      40,453,779.30          4.33%           12,136,133.80

Over 3 years             142,326,745.97         13.75%              71,163,373.00    165,056,842.96          17.68%           82,528,421.49

3-4 years                    38,568,791.76       3.73%              19,284,395.88      52,041,465.65          5.58%           26,020,732.83

4-5 years                    48,118,094.78       4.65%              24,059,047.40      44,852,453.92               4.8%       22,426,226.96

Over 5 years                 55,639,859.43       5.37%              27,819,929.72      68,162,923.39               7.3%       34,081,461.70

Total                  1,004,826,499.62          --                138,296,539.73    902,557,074.71           --             132,330,232.91

Account receivable adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Account receivable adopting other methods in the group
□ Applicable √ Inapplicable
Account receivable with minor individual amount and bad debt provision provided individually


                                                                                                                                            75
                                                                              China Fangda Group Co., Ltd.            2013Interim Report


√ Applicable □ Inapplicable
                                                                                                                                     In RMB

        Description        Remaining book value        Bad debt provision            Providing rate (%)                 Reason

                                                                                                               Aged over 5 years, unlike
Trade receivable                      1,373,041.48                1,373,041.48                        100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        803,340.45                     803,340.45                     100%
                                                                                                               to be recovered

Curtain wall project                                                                                           Aged over 5 years, unlike
                                        660,625.41                     660,625.41                     100%
payment                                                                                                        to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        648,100.95                     648,100.95                     100%
                                                                                                               to be recovered

                                                                                                               Litigation-related,
Trade receivable                        563,320.60                     563,320.60                     100%
                                                                                                               unlikely to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        487,785.66                     487,785.66                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        433,868.60                     433,868.60                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        430,629.58                     430,629.58                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                        337,968.00                     337,968.00                     100%
                                                                                                               to be recovered

Subtotal of other minor                                                                                        Aged over 5 years, unlike
                                     15,782,112.49               15,782,112.49                        100%
receivables                                                                                                    to be recovered

Total                                21,520,793.22               21,520,793.22               --                            --


(2) Written-back or recovered account receivable during the report period

                                                                                                                                     In RMB

                                                     Basis for recognition of       Accumulative provided
                                                                                                                    Written-back or
          Description                Reason              original bad debt            amount before the
                                                                                                                   recovered amount
                                                               provision            write-back or recovery

                                                     Lawsuit, unlike to
Loan                         Loan recovered                                                       435,713.62                    250,000.00
                                                     recover

Total                                   --                        --                              435,713.62               --

Bad debt provision for account receivable with major individual amount or with minor individual amount but independent
impairment test
                                                                                                                                     In RMB

        Description        Remaining book value         Bad debt amount              Providing rate (%)                 Reason

Engineering receivables              40,277,753.78                1,208,332.61                            3% Provided based on the


                                                                                                                                          76
                                                   China Fangda Group Co., Ltd.     2013Interim Report


                                                                              account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   29,029,057.98    870,871.74                    3% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   27,545,878.83   1,418,157.36                5.15% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   26,428,063.73   4,556,395.93               17.24% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   22,711,356.02   4,542,271.20                 20% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   22,649,465.92   1,260,109.61                5.56% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   21,669,336.58   4,086,918.21               18.86% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   21,604,598.64    648,137.96                    3% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   20,266,534.66   1,094,651.59                 5.4% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   19,232,216.37   1,250,094.06                 6.5% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   18,822,892.79   3,750,555.85               19.93% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   16,469,145.03    494,074.35                    3% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   15,208,841.42    456,265.24                    3% account age in the
                                                                              normal settlement period

                                                                              Provided based on the
Engineering receivables   12,411,036.73   2,232,304.49               17.99%
                                                                              account age in the



                                                                                                      77
                                                   China Fangda Group Co., Ltd.     2013Interim Report


                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables   12,352,763.48    802,929.63                  6.5% account age in the
                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables   11,964,156.25    777,670.16                  6.5% account age in the
                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables   11,462,804.94    343,884.15                    3% account age in the
                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables   10,367,025.03   1,918,471.04               18.51% account age in the
                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables    9,550,635.11    286,519.05                  50% account age in the
                                                                             normal settlement period

                                                                             Provided based on the
Engineering receivables    9,460,014.73    415,669.74                 4.39% account age in the
                                                                             normal settlement period

                                                                             With an account age of
Engineering receivables    8,324,246.86   4,162,123.43                 50%
                                                                             over 3 years

                                                                             Provided based on the
Engineering receivables    8,235,152.91    501,060.98                 6.08% account age in the
                                                                             normal settlement period

                                                                             Aged over 5 years, unlike
Trade receivable           1,373,041.48   1,373,041.48                100%
                                                                             to be recovered

                                                                             Aged over 5 years, unlike
Trade receivable            803,340.45     803,340.45                 100%
                                                                             to be recovered

Curtain wall project                                                         Aged over 5 years, unlike
                            660,625.41     660,625.41                 100%
payment                                                                      to be recovered

                                                                             Aged over 5 years, unlike
Trade receivable            648,100.95     648,100.95                 100%
                                                                             to be recovered

                                                                             Litigation-related,
Trade receivable            563,320.60     563,320.60                 100%
                                                                             unlikely to be recovered

                                                                             Aged over 5 years, unlike
Trade receivable            487,785.66     487,785.66                 100%
                                                                             to be recovered

                                                                             Aged over 5 years, unlike
Trade receivable            433,868.60     433,868.60                 100%
                                                                             to be recovered

Trade receivable            430,629.58     430,629.58                 100% Aged over 5 years, unlike



                                                                                                        78
                                                                            China Fangda Group Co., Ltd.         2013Interim Report


                                                                                                          to be recovered

                                                                                                          Aged over 5 years, unlike
Trade receivable                           337,968.00              337,968.00                      100%
                                                                                                          to be recovered

Subtotal of other minor                                                                                   Aged over 5 years, unlike
                                      15,782,112.49             15,782,112.49                      100%
receivables                                                                                               to be recovered

Total                                417,563,771.01             58,598,261.60              --                         --

Notes to account receivable with minor individual amount but triggering substantial risks after being grouped


(3) Written-off account receivable during the report period

None


(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any account receivable
to the Company at the end of period

None


(5) Top 5 account receivable entities

                                                                                                                             In RMB

                             Relationship with the                                                          Percentage in the total
           Entity                                             Amount                      Term
                                  Company                                                                  account receivable (%)

Nanjing News Center       Non-affiliated party                  40,277,753.78 Less than 1 year                                3.89%

Zhangzhou Hilton          Non-affiliated party                  29,029,057.98 Less than 1 year                                 2.8%

Shenzhen Airport T3
                          Non-affiliated party                  27,545,878.83 1-2 years                                       2.66%
Terminal

Shenyang National
                          Non-affiliated party                  27,409,559.37 Less than 1 year                                2.65%
Games Operation Center

Sanya Fenghuang Island
curtain wall 1# and 2#    Non-affiliated party                  26,428,063.73 2-3 years                                       2.55%
building

Total                                 --                       150,690,313.69              --                               14.55%


(6) Account receivable from affiliates

None


(7) De-recognized account receivable

None




                                                                                                                                      79
                                                                             China Fangda Group Co., Ltd.             2013Interim Report


(8) Amounts of assets and liabilities involved continuously in securitization of account receivable

None


7. Other receivables

(1) Other receivables disclosed by categories

                                                                                                                                    In RMB

                                           Closing amount                                           Opening amount

                          Remaining book value        Bad debt provision         Remaining book value             Bad debt provision
           Type
                                         Proportio                  Proportio                   Proportion                        Proportio
                            Amount                    Amount                     Amount                           Amount
                                          n (%)                      n (%)                          (%)                            n (%)

Other receivables with
major individual amount
                          1,220,316.84      1.43% 1,220,316.84         100% 1,220,316.84             1.68%       1,220,316.84        100%
and bad debt provision
provided individually

Other receivables for which bad debt provision is made by group

Including: receivable out 81,373,109.2               13,150,647.4               68,469,392.4
                                           95.19%                     16.16%                        94.33% 11,129,836.15            16.26%
of the consolidation                 2                         1                          3

                          81,373,109.2               13,150,647.4               68,469,392.4
Subtotal                                   95.19%                     16.16%                        94.33% 11,129,836.15            16.26%
                                     2                         1                          3

Other receivables with
minor individual amount
                          2,895,928.16      3.39% 2,895,928.16         100% 2,895,928.16             3.99%       2,895,928.16        100%
and bad debt provision
provided individually

                          85,489,354.2               17,266,892.4               72,585,637.4
Total                                       --                         --                           --          15,246,081.15        --
                                     2                         1                          3

Notes to other receivables
Other receivables with an individual amount of RMB1 million (inclusive) are receivables with major individual
amount.
Other receivables with major individual amount and bad debt provision provided individually at the end of the
period
√ Applicable □ Inapplicable
                                                                                                                                    In RMB

        Description        Remaining book value          Bad debt amount            Providing rate (%)                  Reason

                                                                                                                Aged over 5 years, unlike
Receivable deposit                    1,220,316.84                1,220,316.84                           100%
                                                                                                                to be recovered

Total                                 1,220,316.84                1,220,316.84                 --                          --

In the group, the other receivables of which bad debt provision are made through the account aging method

                                                                                                                                           80
                                                                               China Fangda Group Co., Ltd.          2013Interim Report


√ Applicable □ Inapplicable
                                                                                                                                 In RMB

                                         Closing amount                                           Opening amount

                             Remaining book value                                   Remaining book value
             Age
                                                  Proporti Bad debt provision                         Proporti     Bad debt provision
                                Amount                                                 Amount
                                                  on (%)                                              on (%)

Less than 1 year

Including:

Subtotal for less than 1
                                  38,163,710.08 44.64%             1,149,597.82       31,319,141.04 43.15%                   942,761.14
year

1-2 years                         19,564,199.05 22.88%             1,956,419.90       18,616,091.35 25.64%                 1,861,609.14

2-3 years                          8,889,850.43    10.4%           2,666,955.12        4,708,070.26      6.49%             1,412,421.08

Over 3 years                      14,755,349.66 17.26%             7,377,674.56       13,826,089.78 19.05%                 6,913,044.79

3-4 years                          3,956,200.34    4.63%           1,978,100.17        5,706,414.82      7.86%             2,949,520.79

4-5 years                          3,935,685.74     4.6%           1,967,842.87        2,220,633.18      3.06%             1,110,316.59

Over 5 years                       6,863,463.58    8.03%           3,431,731.52        5,899,041.78      8.13%             2,853,207.41

Total                             81,373,109.22      --           13,150,647.41       68,469,392.43       --              11,129,836.15

Other receivables adopting the balance percentage method in the group
□ Applicable √ Inapplicable
Other receivables adopting other methods in the group
□ Applicable √ Inapplicable
Other receivables with minor individual amount and bad debt provision provided individually
√ Applicable □ Inapplicable
                                                                                                                                 In RMB

        Description        Remaining book value           Bad debt provision        Providing rate (%)                 Reason

                                                                                                               Aged over 5 years, unlike
Receivable deposit                    300,000.00                    300,000.00                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Receivable deposit                    224,875.84                    224,875.84                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Receivable deposit                    159,800.00                    159,800.00                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Receivable deposit                    150,000.00                    150,000.00                     100%
                                                                                                               to be recovered

                                                                                                               Aged over 5 years, unlike
Trade receivable                      101,282.55                    101,282.55                     100%
                                                                                                               to be recovered

Total of other small                                                                                           Aged over 5 years, unlike
                                    1,959,969.77                  1,959,969.77                     100%
amounts                                                                                                        to be recovered



                                                                                                                                        81
                                                                   China Fangda Group Co., Ltd.          2013Interim Report


Total                             2,895,928.16          2,895,928.16             --                            --


(2) Written-back or recovered other receiables during the report period

None
Bad debt provision for other receivables with major individual amount or with minor individual amount but
independent impairment test
                                                                                                                     In RMB

        Description     Remaining book value     Bad debt amount          Providing rate (%)                Reason

                                                                                                    Aged over 5 years,
Receivable deposit                1,220,316.84           1,220,316.84                     100%
                                                                                                    unlike to be recovered

                                                                                                    Normal, provided by the
Receivable deposit                1,800,000.00            180,000.00                       10%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                1,120,543.15            336,162.95                       30%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                1,100,000.00            330,000.00                       30%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                6,898,000.00            689,800.00                       10%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                3,158,000.00             94,740.00                           3%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                2,278,926.90            683,678.07                       30%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                1,907,624.65             57,228.74                           3%
                                                                                                    account age

                                                                                                    Normal, provided by the
Receivable deposit                1,720,000.00             51,600.00                           3%
                                                                                                    account age

                                                                                                    Aged over 5 years,
Receivable deposit                 300,000.00             300,000.00                      100%
                                                                                                    unlike to be recovered

                                                                                                    Aged over 5 years,
Receivable deposit                 224,875.84             224,875.84                      100%
                                                                                                    unlike to be recovered

                                                                                                    Aged over 5 years,
Receivable deposit                 159,800.00             159,800.00                      100%
                                                                                                    unlike to be recovered

                                                                                                    Aged over 5 years,
Receivable deposit                 150,000.00             150,000.00                      100%
                                                                                                    unlike to be recovered

                                                                                                    Aged over 5 years,
Trade receivable                   101,282.55             101,282.55                      100%
                                                                                                    unlike to be recovered

Total of other small                                                                                Aged over 5 years,
                                  1,959,969.77           1,959,969.77                     100%
amounts                                                                                             unlike to be recovered


                                                                                                                             82
                                                                            China Fangda Group Co., Ltd.            2013Interim Report


Total                                 24,099,339.70               6,539,454.76              --                            --

Notes to other receivables with minor individual amount but triggering substantial risks after being grouped
None


(3) Written-off other receivables during the report period

None


(4) Shareholder holding 5% or above shares with voting rights of the Company and owing any other receivables to
the Company at the end of period

None


(5) Nature and description of major other receivables

None


(6) Top 5 other receivable entities

                                                                                                                                In RMB

                             Relationship with the                                                             Percentage in the total
           Entity                                             Amount                       Term
                                   Company                                                                     other receivables (%)

Zhejiang Jiayue
                           Non-affiliated party                   6,898,000.00 1-2 years                                         8.07%
Industrial Co., Ltd.

Hainan Greentown Gaodi
                           Non-affiliated party                   3,158,000.00 Less than 1 year                                  3.69%
Investment Co., Ltd.

Xin Song                   Non-affiliated party                   2,707,327.61 2-3 years                                         3.17%

Nanjing Xinhua Daily
                           Non-affiliated party                   2,451,804.00 Less than 1 year                                  2.87%
(Nanjing News Center)

Wang Weihong               Non-affiliated party                   2,441,865.93 1-3 years                                         2.86%

           Total                       --                        17,656,997.54              --                                 20.66%


(7) Other receivables from affiliates

None


(8) De-recognized other receivables

None




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                                                                         China Fangda Group Co., Ltd.         2013Interim Report


(9) Amounts of assets and liabilities involved continuously in securitization of other receivables

None


8. Prepayment

(1) Account age of prepayments

                                                                                                                          In RMB

                                   Closing amount                                            Opening amount
        Age                                                 Proportion                                               Proportion
                                Amount                                                  Amount
                                                               (%)                                                       (%)

Less than 1
                                           23,180,856.69        90.81%                             19,468,827.77         88.47%
year

1-2 years                                      646,542.87        2.53%                              1,166,643.73              5.3%

2-3 years                                      744,279.73        2.92%                               373,124.18               1.7%

Over 3 years                                   954,288.90        3.74%                               997,563.54           4.53%

Total                                      25,525,968.19        --                                 22,006,159.22         --




(2) Top 5 prepayment entities

                                                                                                                          In RMB

                          Relationship with the
            Entity                                          Amount                    Time                      Reason
                                Company

Henan Tiancheng Color
                        Non-affiliated party                   2,484,602.43 Less than 1 year          Unsettled
Aluminum Co., Ltd.

Litong Aluminum
Industry (Guangdong)    Non-affiliated party                   1,674,860.25 Less than 1 year          Unsettled
Co., Ltd.

Qinghuangdao Wanxiang
                        Non-affiliated party                   1,070,751.02 Over 3 years              Unsettled
Aluminum Co., Ltd.

Guangdong Xingfa                                                                                      Right to the cargo not
                        Non-affiliated party                   1,282,943.29 Less than 1 year
Aluminium Co., Ltd.                                                                                   transferred

Yantai Kaichen Labor
                        Non-affiliated party                   1,010,000.00 Less than 1 year          Unsettled
Service Co., Ltd.

Total                               --                         7,523,156.99            --                           --




                                                                                                                                  84
                                                                              China Fangda Group Co., Ltd.           2013Interim Report


(3) Shareholders holding 5% or above shares with voting rights of the Company and involved in any prepayment
of the Company at the end of period

                                                                                                                                 In RMB

                                                       Closing amount                                  Opening amount
                 Entity                                          Bad debt provision                                Bad debt provision
                                      Remaining book value                              Remaining book value
                                                                        amount                                          amount


(4) Notes to prepayment

None


9. Inventories

(1) Classification of inventories

                                                                                                                                 In RMB

                                            Closing amount                                          Opening amount
        Items             Remaining book     Depreciation                         Remaining book     Depreciation
                                                               Book value                                                Book value
                              value            provision                              value            provision

Raw materials               52,110,749.88      1,474,828.11     50,635,921.77       43,426,271.98      1,474,828.11      41,951,443.87

Product in process           7,214,876.34                        7,214,876.34        6,219,310.56                         6,219,310.56

Finished goods in
                            15,675,036.22      1,984,145.11     13,690,891.11       10,455,612.27      1,984,145.11       8,471,467.16
stock

Asset formed by
                           206,084,359.94      2,014,344.59   204,070,015.35       212,353,564.65      2,014,344.59     210,339,220.06
construction contract

Low price consumable             1,081.82                              1,081.82          8,043.45                             8,043.45

OEM materials                1,832,348.34                        1,832,348.34        2,130,706.26                         2,130,706.26

Development cost               573,019.83                          573,019.83

Total                      283,491,472.37      5,473,317.81   278,018,154.56       274,593,509.17      5,473,317.81     269,120,191.36


(2) Inventory depreciation provision

                                                                                                                                 In RMB

                          Opening balance of     Provision made in                    Decrease                     Closing balance of
         Item
                              book value          the current period       Write-back            Write-off            book value

Raw materials                    1,474,828.11                                                                             1,474,828.11

Finished goods in
                                 1,984,145.11                                                                             1,984,145.11
stock



                                                                                                                                        85
                                                                   China Fangda Group Co., Ltd.    2013Interim Report


Asset formed by
                                2,014,344.59                                                             2,014,344.59
construction contract

Total                           5,473,317.81                                                             5,473,317.81


(3) Inventory depreciation provision


                                                                                         Proportion of written-back
             Items                             Basis                 Reason            amount in the closing balance
                                                                                         of the inventory item (%)

                                Realizable net value is lower
Raw materials
                                the cost


10. Other current assets

None


11. Sellable financial assets

(1) Sellable financial assets

None


(2) Long-term creditor's investment in sellable financial assets

None


12. Investment held until mature

(1) Investment held until mature

None


(2) Investment held until mature remaining immature and sold in the report period

None


13. Long-term receivables

None


14. Investment in joint venture and associated companies

None



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                                                                             China Fangda Group Co., Ltd.       2013Interim Report


15. Long-term share equity investment

(1) Details of long-term share equity investment

None


(2) Restriction for transfer of capital to invested companies

None


16. Investment real estates

(1) Investment real estate measured at costs

                                                                                                                            In RMB

                         Opening balance of book                                                        Closing balance of book
         Items                                             Increase                 Decrease
                                  value                                                                          value

1. Original total book
                                    4,428,890.85                                                                     4,428,890.85
value

1. Houses & buildings               4,428,890.85                                                                     4,428,890.85

II Accumulative total
depreciation and                      789,385.09                 57,481.44                                               846,866.53
amortization

1. Houses & buildings                 789,385.09                 57,481.44                                               846,866.53

III Total net book
value of investment                 3,639,505.76                -57,481.44                                           3,582,024.32
real estate

1. Houses & buildings               3,639,505.76                -57,481.44                                           3,582,024.32

IV Total book value of
                                    3,639,505.76                -57,481.44                                           3,582,024.32
investment real estate

1. Houses & buildings               3,639,505.76                -57,481.44                                           3,582,024.32

                                                                                                                            In RMB

                                                                                               Current period

Depreciation and amortized amount for the current period                                                                  57,481.44


(2) Investment real estate measured at fair value

                                                                                                                            In RMB

                                    Opening fair                  Increase                        Decrease           Closing fair
                 Items
                                          value    Purchase Transferred        Gain/loss   Disposal     Transferre        value



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                                                                               China Fangda Group Co., Ltd.        2013Interim Report


                                                         d        from own       caused by                 d to own
                                                                   use or        changes in                  use
                                                                  inventory      fair value

1. Total costs                        182,729,175.48                                                                    182,729,175.48

(1) Houses & buildings                182,729,175.48                                                                    182,729,175.48

2. Total changes in fair value         72,037,080.85                                                                     72,037,080.85

(1) Houses & buildings                 72,037,080.85                                                                     72,037,080.85

3. Total book value of investment
                                      254,766,256.33                                                                    254,766,256.33
real estate

(1) Houses & buildings                254,766,256.33                                                                    254,766,256.33

Among the investment property, the workshop No.2 and No.3 located on Beihuan Road in Nanshan
Shenzhen have not been granted the certificate of property, their book value at end of period was
RMB32,057,585.40. After the renovation, the Company will not apply for an ownership certificate.

17. Fixed assets

(1) Fixed assets

                                                                                                                              In RMB

                                 Opening balance                                                                   Closing balance of
              Items                                               Increase                      Decrease
                                  of book value                                                                       book value

1. Original total book value:      579,485,800.91                            185,320,124.30      9,641,638.89         755,164,286.32

Houses & buildings                 287,520,705.05                            174,970,065.73                0.00       462,490,770.78

          Equipment &
                                   237,818,748.42                              6,983,181.63      8,264,173.18         236,537,756.87
machinery

          Transportation
                                    15,786,606.33                              1,128,593.04      1,055,882.78          15,859,316.59
facilities

Electronics and other
                                    38,359,741.11                              2,238,283.90        321,582.93          40,276,442.08
devices

                                 Opening balance
                 --                                    Increase              Provision          Decrease            Closing balance
                                  of book value

2. Total accumulative
                                   222,752,425.18                             10,319,840.12      7,416,925.71         225,655,339.59
depreciation:

Houses & buildings                  39,324,489.23                              4,031,524.75                0.00        43,356,013.98

          Equipment &
                                   154,763,867.26                              2,851,168.10      6,578,250.70         151,036,784.66
machinery

          Transportation
                                     8,305,922.46                               754,987.89         584,789.99           8,476,120.36
facilities




                                                                                                                                      88
                                                                        China Fangda Group Co., Ltd.        2013Interim Report


Electronics and other
                                   20,358,146.23                        2,682,159.38           253,885.02       22,786,420.59
devices

                                Opening balance
                  --                                                       --                                Closing balance
                                 of book value

3. Total net fixed assets
                                  356,733,375.73                           --                                  529,508,946.73
book value

Houses & buildings                248,196,215.82                           --                                  419,134,756.80

          Equipment &
                                   83,054,881.16                           --                                   85,500,972.21
machinery

          Transportation
                                    7,480,683.87                           --                                    7,383,196.23
facilities

Electronics and other
                                   18,001,594.88                           --                                   17,490,021.49
devices

4. Total impairment
                                   15,177,565.52                           --                                   15,135,387.93
provision

Houses & buildings                  1,131,563.50                           --                                    1,131,563.50

          Equipment &
                                   14,046,002.02                           --                                   14,003,824.43
machinery

Electronics and other
                                                                          &nb