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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)(更新后)

公告日期:2013-08-17

    China Fangda Group Co., Ltd.   2013Interim Report
    China Fangda Group Co., Ltd.
    2013 Interim Report
    Jul. 2013
    1
    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.
    2
    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 ............................................................................................26
    VIII Financial Statements ......................................................................................................................................................................28
    IX Documents for Reference ...............................................................................................................................................................130
    3
    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.
    4
    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
    5
    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
    6
    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)
    7
    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)
    8
    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
    9
    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
    10
    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,
    13
    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.
    14
    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)
    18
    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
    21
    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)
    22
    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
    Domestic natural
    Guo Tao                                                 0.70%        5,271,313 New                 0              5,271,313
    person
    Domestic natural
    Wang Nuo                                                0.66%        4,970,000 New                 0              4,970,000
    person
    Domestic natural
    He Yansong                                              0.64%        4,851,228 New                 0              4,851,228
    person
    Domestic natural
    Zhao Zuwen                                              0.59%        4,502,213 New                 0              4,502,213
    person
    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
    Shenzhen Shilihe Investment Co.,                                                     17,860,992 RMB common                     17,860,992
    25
    China Fangda Group Co., Ltd.         2013Interim Report
    Ltd.                                                                                             shares
    Huatai Securities Co., Ltd.'s agreed                                                             RMB common
    16,800,000                             16,800,000
    repurchase account                                                                               shares
    RMB common
    Guo Tao                                                                              5,271,313                              5,271,313
    shares
    RMB common
    Wang Nuo                                                                             4,970,000                              4,970,000
    shares
    RMB common
    He Yansong                                                                           4,851,228                              4,851,228
    shares
    RMB common
    Zhao Zuwen                                                                           4,502,213                              4,502,213
    shares
    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              Guo Tao and Wang Nuo hold 5,271,313 and 4,970,000 shares of the Company respectively
    participating in margin trade (if any) through Everbright Bank customer credit transaction guarantee securities account.
    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
    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.
    26
    China Fangda Group Co., Ltd.   2013Interim Report
    2. No Directors, supervisors or senior executives resigned or were dismissed during the report
    period
    27
    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
    31
    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
    39
    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
    40
    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
    41
    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,
    42
    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,
    43
    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
    44
    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
    45
    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
    46
    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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    China Fangda Group Co., Ltd.    2013Interim Report
    (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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    China Fangda Group Co., Ltd.    2013Interim Report
    (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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    China Fangda Group Co., Ltd.      2013Interim Report
    (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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    China Fangda Group Co., Ltd.        2013Interim Report
    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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    China Fangda Group Co., Ltd.     2013Interim Report
    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
    61
    China Fangda Group Co., Ltd.    2013Interim Report
    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.
    62
    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.
    63
    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
    64
    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
    65
    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
    66
    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
    67
    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
    69
    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
    70
    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
    71
    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
    83
    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
    86
    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
    87
    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
    --
    devices
    5. Total fixed assets book
    341,555,810.21                           --                                  514,373,558.80
    value
    Houses & buildings                247,064,652.32                           --                                  418,003,193.30
    Equipment &
    69,008,879.14                           --                                   71,497,147.78
    machinery
    Transportation
    7,480,683.87                           --                                    7,383,196.23
    facilities
    Electronics and other
    18,001,594.88                           --                                   17,490,021.49
    devices
    The depreciation amounts to RMB10,319,840.12. The original value of transfer of construction progress into the
    fixed original assets amounts to RMB174,951,006.71.
    (2) Temporary idle fixed assets
    In RMB
    Accumulative      Impairment
    Items              Book value                                              Net book value         Notes
    depreciation      provision
    Houses & buildings            46,273,742.05          3,029,722.87       277,744.50     42,966,274.68
    Equipment &                  105,602,040.98         62,096,527.67    12,648,794.93     30,856,718.38
    89
    China Fangda Group Co., Ltd.          2013Interim Report
    machinery
    Transportation
    358,087.84              334,308.75                                 23,779.09
    facilities
    Electronics and other
    7,800,618.30           5,429,615.90                              2,371,002.40
    devices
    Total                        160,612,095.03           70,890,175.19           12,926,539.43     76,217,774.55
    (3) Fixed assets leased through financial leasing
    In RMB
    Items                             Book value                  Accumulative depreciation             Net book value
    Electronics and other devices     24,500.00                            6,282.00                          18,218.00
    (4) Fixed assets lend through financial leasing
    None
    (5) Fixed assets held for sales at the end of the period
    None
    (6) Fixed assets without ownership certificate
    Items                                          Reason                                       Time
    Houses in Urumuqi for offsetting debt          Historical reasons
    Complex on the Beihuan Road, Nanshan
    To be renovated
    District, Shenzhen
    Office building on the Beihuan Road,
    To be renovated
    Nanshan District, Shenzhen
    No.5 automatic screen door factory,
    Nanchang Fangda High-tech park of              Applying for                                   The certificate can be obtained in 2013.
    Fangda Automatic
    Houses in Dalian of Fangda
    Negotiation                                    The certificate can be obtained in 2014.
    Decoration for offsetting debt
    No.2 factory on Beihuan Road, Nanshan
    To be renovated
    District, Shenzhen
    No.3 factory on Beihuan Road, Nanshan
    To be renovated
    District, Shenzhen
    Expanded workshop, dormitory and
    Entering into liquidation
    canteen of Shenyang Fangda
    90
    China Fangda Group Co., Ltd.              2013Interim Report
    Plant, dormitory and canteen of Dongguan Newly built, with the ownership certificate
    production base                                being applied for
    18.Construction in process
    (1) Construction in progress
    In RMB
    Closing amount                                               Opening amount
    Items                 Remaining            Impairment                            Remaining           Impairment
    Book value                                                  Book value
    book value           provision                             book value           provision
    Fangda Town reconstruction
    1,701,315.00                              1,701,315.00     1,701,315.00                             1,701,315.00
    project
    Liuxi spraying line renovation     1,466,675.36                              1,466,675.36
    Dongguan Songshan Lake
    Fangda Southern Technology                                                                  173,369,430.56                        173,369,430.56
    Garden
    Installation of machines and
    465,500.28                               465,500.28         67,948.72                               67,948.72
    equipment
    Total                              3,633,490.64                              3,633,490.64 175,138,694.28                          175,138,694.28
    (2) Changes in major construction in proces
    In RMB
    Proportio                           Includin
    n of                                g:
    Accumul
    Transferr               engineeri                           capitaliz Interest
    ative
    Opening                ed into      Other         ng       Project                   ed       capitaliz Capital      Closing
    Item    Budget               Increase                                                   capitaliz
    amount                 fixed       decrease investme progress                     interest ation rate source         amount
    ed
    assets                  nt in the                          for the       (%)
    interest
    budget                             current
    (%)                               period
    Donggua
    n
    Songsha
    n Lake
    181,194, 173,369, 1,581,57 174,951,                                                                                Raised
    Fangda                                                                90.57% 100                                                              0.00
    644.92    430.56        6.15     006.71                                                                           fund
    Southern
    Technolo
    gy
    Garden
    91
    China Fangda Group Co., Ltd.        2013Interim Report
    181,194, 173,369, 1,581,57 174,951,
    Total                                                             --           --                           --            --         0.00
    644.92         430.56     6.15   006.71
    The Dongguan Songshanhu Fangda Southern Sci & Tech Park will accounted as fixed assets after it is constructed
    and can be put into use.
    (3) Impairment provisions for construction in process
    None
    (4) Progress of major construction in process
    None
    (5) Notes to construction in process
    None
    19. Engineering materials
    None
    20. Disposal of fixed assets
    In RMB
    Items                     Opening book value              Closing book value             Reason for disposal
    Retirement of computers and
    0.00                         1,676.00 Unsettled fixed assets retired
    air-conditioners
    Total                                                                                      1,676.00                  --
    21. Productive biological assets
    None
    22. Petrolum assets
    None
    23. Intangible assets
    (1) Intangible assets
    In RMB
    Items                   Opening balance of            Increase                  Decrease          Closing balance of book
    92
    China Fangda Group Co., Ltd.   2013Interim Report
    book value                                                   value
    1. Original total book value       140,737,338.14      47,830.18                              140,785,168.32
    Land using rights of Fangda
    8,543,250.00                                               8,543,250.00
    Town (phase I)
    Land using rights of Fangda
    4,783,050.00                                               4,783,050.00
    Town (phase III)
    Land using rights of Fangda
    Tech Garden on Gaoxin               11,064,548.41                                              11,064,548.41
    Road Nanchang
    Shenyang Fangda land use
    42,038,791.23                                              42,038,791.23
    right
    Dongguan land using right           40,041,465.75                                              40,041,465.75
    Patent and classified tech          28,052,320.89      47,830.18                               28,100,151.07
    Computer software                    6,213,911.86                                               6,213,911.86
    2. Total accumulative
    32,831,092.16   1,785,132.61                               34,616,224.77
    amortization
    Land using rights of Fangda
    4,207,053.60      72,715.68                                4,279,769.28
    Town (phase I)
    Land using rights of Fangda
    1,522,604.25      47,830.50                                1,570,434.75
    Town (phase III)
    Land using rights of Fangda
    Tech Garden on Gaoxin                1,666,217.46     202,061.76                                1,782,515.09
    Road Nanchang
    Shenyang Fangda land use
    4,267,125.92     420,417.90                                4,687,543.82
    right
    Dongguan land using right            1,668,394.50     400,414.68                                2,068,809.18
    Patent and classified tech          17,080,497.90     381,550.01                               17,462,047.91
    Computer software                    2,419,198.53     345,906.21                                2,765,104.74
    3. Total net intangible assets
    107,906,245.98   -1,737,302.43                             106,168,943.55
    book value
    Land using rights of Fangda
    4,336,196.40     -72,715.68                                4,263,480.72
    Town (phase I)
    Land using rights of Fangda
    3,260,445.75     -47,830.50                                3,212,615.25
    Town (phase III)
    Land using rights of Fangda
    Tech Garden on Gaoxin                9,398,330.95    -202,061.76                                9,282,033.32
    Road Nanchang
    Shenyang Fangda land use            37,771,665.31    -420,417.90                               37,351,247.41
    93
    China Fangda Group Co., Ltd.   2013Interim Report
    right
    Dongguan land using right             38,373,071.25    -400,414.68                               37,972,656.57
    Patent and classified tech            10,971,822.99    -333,719.83                               10,638,103.16
    Computer software                      3,794,713.33    -345,906.21                                3,448,807.12
    4. Total impairment
    5,525,863.77                                               5,525,863.77
    provision
    Land using rights of Fangda
    Town (phase I)
    Land using rights of Fangda
    Town (phase III)
    Land using rights of Fangda
    Tech Garden on Gaoxin
    Road Nanchang
    Shenyang Fangda land use
    right
    Dongguan land using right
    Patent and classified tech             5,525,863.77                                               5,525,863.77
    Computer software
    Total book value of
    102,380,382.21   -1,737,302.43                             100,643,079.78
    intangible assets
    Land using rights of Fangda
    4,336,196.40     -72,715.68                                4,263,480.72
    Town (phase I)
    Land using rights of Fangda
    3,260,445.75     -47,830.50                                3,212,615.25
    Town (phase III)
    Land using rights of Fangda
    Tech Garden on Gaoxin                  9,398,330.95    -116,297.63                                9,282,033.32
    Road Nanchang
    Shenyang Fangda land use
    37,771,665.31    -420,417.90                               37,351,247.41
    right
    Dongguan land using right             38,373,071.25    -400,414.68                               37,972,656.57
    Patent and classified tech             5,445,959.22    -333,719.83                                5,112,239.39
    Computer software                      3,794,713.33    -345,906.21                                3,448,807.12
    The total amortization amounts to RMB1,785,132.61.
    (2) Development project expenses
    None
    94
    China Fangda Group Co., Ltd.       2013Interim Report
    24. Goodwill
    In RMB
    Closing
    Invested entity or item of
    Ending balance      Increase           Decrease      Beginning balance    impairment
    goodwill
    provision
    Shenzhen Woke                              8,197,817.29                                          8,197,817.29     8,197,817.29
    Fangda Yide                                 746,519.62                                             746,519.62      746,519.62
    Total                                      8,944,336.91                                          8,944,336.91     8,944,336.91
    Basis for impairment testing and provision of goodwill
    1. The Company acquired the 100% control power over Shenzhen Woke Co. by merger of enterprise
    under common control in May 2007. The difference between the initial investment cost and
    recognizable fair value of the investee has formed the goodwill of RMB8,197,817.29. As the company
    has stopped operating and obvious impairment has been caused, the goodwill was fully used to make
    the impairment provision in the previous year.
    2. The Company acquired the minority share equities of Fangda Yide Co. in August 2007. The difference
    between the initial investment cost and recognizable fair value of the investee has formed the goodwill
    of RMB746,519.62. For Fangda Yide was not in good business operation for successive years,
    impairment provision has been provided fully upon the goodwill.
    25. Long-term amortizable expenses
    In RMB
    Reason for other
    Items         Opening amount        Increase       Amortized       Other decrease   Closing amount
    decrease
    Décor of leased
    4,635,388.95      388,029.00     566,010.14                        4,457,407.81
    properties
    Others                         75,471.70      234,000.00     115,501.71                          193,969.99
    Total                       4,710,860.65      622,029.00     681,511.85                        4,651,377.80          --
    Notes to long-term amortizable expenses
    The amortization of long-term amortizable expenses amounts to RMB681,511.85.
    26 Deferred income tax assets and deferred income tax liabilities
    (1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
    Recognized deferred income tax assets and liabilities
    In RMB
    Items                             Closing amount                       Opening amount
    Deferred income tax assets:
    95
    China Fangda Group Co., Ltd.          2013Interim Report
    Assets impairment provision                                                    33,497,702.83                            32,418,119.65
    Deductible loss                                                                 2,641,974.00                             1,230,904.81
    Unrealizable gross profit                                                        999,329.06                                999,329.06
    Reserved expense                                                                 428,965.21                              1,126,545.59
    Reserved wage                                                                    298,302.69                                416,485.98
    Subtotal                                                                       37,866,273.79                            36,191,385.09
    Deferred income tax liabilities:
    Adjustment of fair value of investment real estate                             36,652,619.76                            36,210,286.40
    Subtotal                                                                       36,652,619.76                            36,210,286.40
    Details of unrecognized deferred income tax assets
    In RMB
    Items                                    Closing amount                            Opening amount
    Deductible temporary difference                                                68,055,013.87                            68,279,939.00
    Deductible loss                                                                70,112,015.09                            67,503,116.48
    Total                                                                         138,167,028.96                           135,783,055.48
    Deductible losses of the un-recognized deferred income tax asset will expire in the following years
    In RMB
    Year                    Closing amount               Opening amount                              Notes
    2013                                          9,604,482.62               9,604,482.62
    2014                                          7,864,870.78               7,864,870.78
    2015                                          7,695,652.54               7,695,652.54
    2016                                        22,158,289.57               22,158,289.57
    2017                                        17,634,699.52               20,179,820.97
    2018                                          5,154,020.06
    Total                                        70,112,015.09              67,503,116.48                         --
    Details of taxable differences and deductible differences
    In RMB
    Temporary difference
    Items
    End                           Beginning of the period
    Differences in taxable items
    Adjustment of fair value of investment real estate                             146,610,479.06                          144,841,145.61
    Subtotal                                                                       146,610,479.06                          144,841,145.61
    Deductible different items
    Assets impairment provision                                                    199,974,875.87                          191,819,859.24
    Deductible loss                                                                 13,035,019.71                            5,578,451.34
    96
    China Fangda Group Co., Ltd.        2013Interim Report
    Unrealizable gross profit                                                   4,288,919.75                          4,288,919.75
    Reserved expense                                                            2,859,768.04                          5,874,734.27
    Reserved wage                                                               1,988,684.61                          2,776,573.23
    Subtotal                                                                  222,147,267.98                        210,338,537.83
    27. Details of assets impairment provision
    In RMB
    Opening balance of                                 Decrease                  Closing balance of
    Items                                      Increase
    book value                             Write-back          Write-off         book value
    1. Bad debt provision               175,018,461.35      8,025,431.11                                            183,043,892.46
    2. Inventory depreciation
    5,473,317.81                                                              5,473,317.81
    provision
    7. Fixed assets impairment
    15,177,565.52                                               42,177.59       15,135,387.93
    provision
    12. Intangible assets
    5,525,863.77                                                              5,525,863.77
    impairment provision
    13. Goodwill impairment
    8,944,336.91                                                              8,944,336.91
    provision
    Total                               210,139,545.36      8,025,431.11                             42,177.59      218,122,798.88
    28. Other non-current assets
    None
    29. Short-term borrowings
    (1) Classification of short-term borrowings
    In RMB
    Items                            Closing amount                           Opening amount
    Loan by pledge                                                           1,970,000.00                             1,970,000.00
    Borrowings with security and security                                  200,000,000.00                           180,000,000.00
    Guarantee loan                                                          70,000,000.00
    Total                                                                  271,970,000.00                           181,970,000.00
    Notes to classification of short-term borrowings
    1. The remaining borrowing amounts to RMB1.97 million at the end of the period, pledged by discounting
    the commercial acceptance with recourse of the Fangda Decoration;
    97
    China Fangda Group Co., Ltd.   2013Interim Report
    2. The borrowings with security and security of RMB200 million are pledged with Fangda Science &
    Technology Building (with a pledge limit of RMB112,532,100). The remaining RMB87,467,900 is credit
    loans.
    3. The guaranteed loan amounted to RMB70 million by the end of the period, borrowed from the subsidiary
    Fangda Decoration, guaranteed by the Company.
    (2) Mature but not repaid short-term borrowings
    None
    30. Transactional financial liabilities
    None
    31. Notes payable
    In RMB
    Type                        Closing amount                    Opening amount
    Commercial acceptance                                          7,501,080.53                       20,537,464.06
    Bank acceptance                                              177,552,002.52                      140,242,312.97
    Total                                                        185,053,083.05                      160,779,777.03
    Amount due in next fiscal term will be RMB185,053,083.05.
    32. Account payable
    (1) Account payable
    In RMB
    Items                       Closing amount                    Opening amount
    Trade payable                                                303,090,286.81                      277,179,391.09
    Construction payable                                           7,062,516.35                       22,610,906.64
    Payable installation and implementation fees                  58,395,527.86                      104,893,985.61
    Equipment payment receivable                                   5,587,555.39
    Others                                                        15,290,124.01                        7,161,748.38
    Total                                                        389,426,010.42                      411,846,031.72
    (2) Accounts payable to shareholder holding 5% or above shares with voting rights of the Company in the report
    period
    None
    98
    China Fangda Group Co., Ltd.          2013Interim Report
    (3) Notes to large accounts payable aged over one year
    None
    33. Prepayment
    (1) Prepayment
    In RMB
    Items                              Closing amount                          Opening amount
    Engineering payment                                                   123,189,851.29                            70,888,842.64
    Material loan                                                           3,648,780.85                             6,099,951.68
    Others                                                                  2,374,735.47                               753,108.70
    Total                                                                 129,213,367.61                            77,741,903.02
    (2) Prepayments from shareholders holding 5% or above shares with voting rights of the Company in the report
    period
    None
    (3) Notes to large prepayments aged over one year
    None
    34. Employees wage payable
    In RMB
    Opening balance of                                                              Closing balance of book
    Items                                    Increase                     Decrease
    book value                                                                       value
    1. Wage, bonus,
    allowance and                    21,567,724.54       62,362,821.23                     72,791,985.97            11,138,559.80
    subsidies
    2. Employee
    0.00       2,567,144.18                      2,567,144.18                      0.00
    welfare
    3. Social
    0.00       5,849,866.79                      5,849,866.79                      0.00
    insurance
    Including:
    0.00       1,500,605.19                      1,500,605.19                      0.00
    medical insurance
    Basic pension                              0.00       3,733,471.62                      3,733,471.62                      0.00
    Unemployment                               0.00          315,437.82                      315,437.82                       0.00
    99
    China Fangda Group Co., Ltd.    2013Interim Report
    insurance
    Labor injury
    0.00        190,536.70                   190,536.70                   0.00
    insurance
    Breeding insurance                        0.00        109,815.46                   109,815.46                   0.00
    4. Housing fund                           0.00      1,789,687.95                  1,789,687.95                  0.00
    5. Others                         2,377,548.01        528,300.98                   808,043.13           2,097,805.86
    Total                            23,945,272.55     73,097,821.13                 83,806,728.02         13,236,365.66
    1. The Company does not own any wage to employees.
    2. The work union fund and staff education fund amount to RMB2,097,805.86 with a non-monetary welfare
    amount of RMB0 and compensation for termination of employment of RMB0.
    3. The remaining wage payable to employees at the end of the period is mainly prepayment of the wage for June
    2012 and will be made in July 2013.
    35. Taxes payable
    In RMB
    Items                            Closing amount                     Opening amount
    VAT                                                                    -6,594,928.98                   -4,757,677.68
    Business tax                                                          26,153,608.79                    23,400,077.35
    Enterprise income tax                                                  8,403,302.99                    10,068,399.05
    Personal income tax                                                    1,438,280.67                      444,142.16
    City maintenance and construction tax                                   1,621,304.11                    1,845,487.01
    Land using tax                                                           751,034.06                      639,180.73
    Property tax                                                             905,322.19                      909,940.53
    Education surtax                                                         862,919.63                      955,231.71
    Local education surtax                                                     67,230.59                       95,693.78
    Others                                                                     85,751.22                       86,103.34
    Total                                                                 33,693,825.27                    33,686,577.98
    Fangda Decoration and Fangda Automatic adopt the consolidated taxation basis for enterprise income tax. The
    parent consolidates the enterprise income tax of subsidiaries, which is paid by the subsidiaries according to the
    proportions approved by the tax bureau.
    36. Interest payable
    In RMB
    Items                            Closing amount                     Opening amount
    Short-term borrowing interests payable                                   438,500.00                       316,201.11
    100
    China Fangda Group Co., Ltd.   2013Interim Report
    Short-term bond interest payable                                        8,084,931.51                 1,638,356.16
    Total                                                                   8,523,431.51                 1,954,557.27
    37. Dividend payable
    None
    38. Other payables
    (1) Other payables
    In RMB
    Items                            Closing amount                    Opening amount
    Performance and quality deposit                                    18,880,756.63                    20,513,800.46
    Deposit                                                             9,096,910.96                     6,846,769.95
    Reserved expense                                                    6,397,693.75                     7,248,198.58
    Others                                                              5,416,317.50                     6,731,287.87
    Total                                                              39,791,678.84                    41,340,056.86
    (2) Other payables to shareholder holding 5% or above shares with voting rights of the Company in the report
    period
    None
    (3) Notes to large other payables aged over one year
    None
    (4) Description of large other payables
    None
    39. Anticipated liabilities
    None
    40. Non-current liabilities due within 1 year
    None
    101
    China Fangda Group Co., Ltd.     2013Interim Report
    41 Other current liabilities
    In RMB
    Items                      Closing balance of book value        Opening balance of book value
    Short-term debentures                                              200,000,000.00                        200,000,000.00
    Total                                                              200,000,000.00                        200,000,000.00
    On November 15, 2012, the Company issued the first short-term debenture in 2012:
    Short-term debenture                                        Fangda Groups First Short-term Debenture in 2012
    Abbreviation                                                                        12 FANGDA GROUP CP001
    Code                                         41260080                       Term                         365 days
    Interest          calculation Repayment of capital with              Issuing day             November 15, 2012
    basis                                          interest
    Actual amount of issue                 RMB200 million        Planned amount of                  RMB200 million
    issue
    Par price                         RMB100/par value of                Interest rate 6.50% (one-year shibor on the
    RMB100                                           issuing day+2.10%)
    Main underwriter                                                                        Industrial Bank Co., Ltd.
    42. Long-term borrowings
    None
    43. Bond payable
    None
    44. Long-term payables
    None
    45. Special payables
    None
    46. Other non-current liabilities
    In RMB
    Items                    Closing balance of book value        Opening balance of book value
    Deferred profit                                                      2,000,000.00                                     0.00
    Total                                                                2,000,000.00
    During the report period, the Company received a prize of RMB2 million for a significant and key investment
    102
    China Fangda Group Co., Ltd.        2013Interim Report
    project from Dongguan Finance Ministry, which will be amortize on average based on the service year of the
    asset.
    47. Capital share
    In RMB
    Change (+,-)
    Opening                                                                                     Closing
    Issued new                   Transferred
    amount                     Bonus shares                    Others          Subtotal         amount
    shares                    from reserves
    Total of capital
    756,909,905.00                                                                              756,909,905.00
    shares
    48. Shares in stock
    None
    49. Special reserves
    None
    50. Capital reserve
    In RMB
    Items                  Opening amount             Increase              Decrease              Closing amount
    Capital premium (share capital
    38,238,222.48                                                        38,238,222.48
    premium)
    Other capital reserves                     42,061,645.16                                                        42,061,645.16
    Total                                      80,299,867.64                                                        80,299,867.64
    51. Surplus reserves
    In RMB
    Items                  Opening amount             Increase              Decrease              Closing amount
    Statutory surplus reserves                 30,494,542.94                                                        30,494,542.94
    Total                                      30,494,542.94                                                        30,494,542.94
    52. Providing of common risk provisions
    None
    103
    China Fangda Group Co., Ltd.         2013Interim Report
    53. Retained profit
    In RMB
    Provided or distributed
    Items                                               Amount
    proportion
    Adjustment on retained profit of previous year                                            230,907,879.99                --
    Retained profit adjusted at beginning of year                                             230,907,879.99                --
    Plus: Net profit attributable to owners of the
    39,361,593.42             --
    parent
    Common share dividend payable                                                                 22,540,512.87
    Closing retained profit                                                                   247,728,960.54                --
    54. Operational revenue and costs
    (1) Operation incomes and costs
    In RMB
    Items                               Occurred in current period                   Occurred in previous period
    Major business turnover                                                   716,466,138.21                                507,471,233.33
    Other business income                                                         20,361,901.67                              21,818,364.47
    Operation cost                                                            584,493,820.44                                418,086,030.44
    (2) Business segments (on industries)
    In RMB
    Occurred in current period                        Occurred in previous period
    Industry
    Turnover               Operation cost                 Turnover            Operation cost
    Metal production                            671,324,125.17            549,199,043.56             471,976,293.23         379,891,380.74
    Railroad industry                            45,126,972.67             29,541,447.74              33,746,387.12          26,730,948.12
    Others                                            15,040.37                   24,382.00             1,748,552.98             3,139,240.03
    Total                                       716,466,138.21            578,764,873.30             507,471,233.33         409,761,568.89
    (3) Business segments (by products)
    In RMB
    Occurred in current period                        Occurred in previous period
    Product
    Turnover               Operation cost                 Turnover            Operation cost
    Curtain wall system and materials           671,324,125.17            549,199,043.56             471,976,293.23         379,891,380.74
    104
    China Fangda Group Co., Ltd.         2013Interim Report
    Metro screen door products              45,126,972.67              29,541,447.74            33,746,387.12           26,730,948.12
    Others                                       15,040.37                  24,382.00            1,748,552.98            3,139,240.03
    Total                                  716,466,138.21             578,764,873.30           507,471,233.33          409,761,568.89
    (4) Business segments (by regions)
    In RMB
    Occurred in current period                        Occurred in previous period
    Region
    Turnover              Operation cost                Turnover            Operation cost
    Domestic sales                         696,184,686.27             566,604,060.60           493,071,807.85          399,220,838.46
    Export revenue                          20,281,451.94              12,160,812.70            14,399,425.48           10,540,730.43
    Total                                  716,466,138.21             578,764,873.30           507,471,233.33          409,761,568.89
    (5) Revenue from top five customers
    In RMB
    Customer                 Major business turnover               Percentage in total turnover of the Company %
    No.1                                                      50,553,508.95                                                     6.86%
    No.2                                                      44,318,316.55                                                     6.01%
    No.3                                                      35,339,997.62                                                      4.8%
    No.4                                                      34,645,503.00                                                      4.7%
    No.5                                                      27,215,181.45                                                     3.69%
    Total                                                    192,072,507.57                                                    26.06%
    55. Income from contract projects
    None
    56. Business tax and surcharge
    In RMB
    Occurred in previous
    Items              Occurred in current period                                              Rate
    period
    See 5. Tax in VIII Financial Statements
    Business tax                                      9,460,385.99              6,663,166.07
    for details.
    City maintenance and construction
    1,836,559.18              1,285,464.47
    tax
    Education surtax                                   842,658.97                 560,548.10
    105
    China Fangda Group Co., Ltd.       2013Interim Report
    Property tax                          715,990.93                  656,968.35
    Land using tax                         83,890.57                   77,989.18
    Others                                693,752.45                  506,861.55
    Total                               13,633,238.09             9,750,997.72                   --
    57. Sales expense
    In RMB
    Items            Occurred in current period                Occurred in previous period
    Labor costs                                               8,844,748.71                              6,525,070.78
    Freight and miscellaneous charges                         3,197,506.17                              2,936,126.32
    Travel costs                                              1,840,093.38                              1,621,280.80
    Entertainment costs                                         945,025.75                              1,002,061.50
    Material consumption                                         22,755.35                                208,694.43
    Office costs                                                148,767.75                                273,463.26
    Rental                                                      279,843.66                                556,016.40
    Test and experiment costs                                                                             116,520.00
    Consultant costs                                            627,255.66
    Others                                                    1,708,990.66                              1,924,796.27
    Total                                                    17,614,987.09                             15,164,029.76
    58. Management expenses
    In RMB
    Items            Occurred in current period                Occurred in previous period
    Labor costs                                              30,286,559.39                             27,555,779.26
    Depreciation and amortization                            10,127,940.22                             10,072,250.43
    Agencies                                                    841,979.21                                335,473.20
    Tax                                                       1,599,803.72                              2,009,189.95
    Maintenance costs                                         1,822,143.23                              3,860,125.65
    Water and electricity                                       778,910.68                              1,075,987.51
    Office expenses                                             990,134.27                                596,772.29
    Travel costs                                              1,341,062.18                              1,206,897.05
    Entertainment costs                                         889,358.81                                952,150.00
    Rental                                                    1,177,344.49                              1,061,754.62
    Lawsuit                                                     396,663.42                                451,362.03
    106
    China Fangda Group Co., Ltd.         2013Interim Report
    Material consumption                                                       379,286.79                                  211,332.07
    Property management fee                                                    757,691.60                                  808,018.32
    Others                                                                   5,958,617.39                                5,699,134.96
    Total                                                                   57,347,495.40                               55,896,227.34
    59. Financial expenses
    In RMB
    Items                            Occurred in current period                  Occurred in previous period
    Interest expense                                                        11,981,599.56                               13,288,933.17
    Less: Interest income                                                   -1,237,905.09                               -1,964,237.49
    Exchange gain/loss                                                         549,645.66                                 -163,715.27
    Commission charges and others                                              920,182.27                                  200,478.84
    Total                                                                   12,213,522.40                               11,361,459.25
    60. Income from fair value fluctuation
    In RMB
    Source of income from fluctuation of fair value         Occurred in current period             Occurred in previous period
    Investment real estate measured at fair value                                                                        5,936,670.15
    Total                                                                                                                5,936,670.15
    61. Investment income
    None
    62. Assets impairment loss
    In RMB
    Items                             Occurred in current period           Occurred in previous period
    1. Bad debt loss                                                                 8,025,431.11                       -1,292,333.29
    2. Inventory depreciation loss                                                                                       4,322,567.44
    7. Fixed assets impairment loss                                                                                     14,847,286.30
    Total                                                                            8,025,431.11                       17,877,520.45
    107
    China Fangda Group Co., Ltd.             2013Interim Report
    63. Non-business income
    (1) Non-business income
    In RMB
    Occurred in current                                        Amount accounted into the
    Items                                                  Occurred in previous period
    period                                              current accidental gain/loss
    Total of gains from disposal of non-current
    144,075.88                           180.00                     144,075.88
    assets
    Including: Gains from disposal of fixed
    144,075.88                           180.00                     144,075.88
    assets
    Government subsidy                                            50,000.00                     703,700.00                        50,000.00
    Penalty income                                               104,162.32                         44,028.69                    104,162.32
    Penalty income                                                15,085.00                         62,385.25                     15,085.00
    Payable account not able to be paid                           65,309.08                     285,928.69                        65,309.08
    Others                                                     2,126,069.46                   2,058,771.87                     2,126,069.46
    Total                                                      2,504,701.74                   3,154,994.50                     2,504,701.74
    Major items in other non-business income include: 1. An insurance compensation of RMB1,037,879.57 received
    by Subsidiary Fangda Decoration.2. Income of RMB999,990.34 from disposal of wastes.
    (2) Details of government subsidies
    In RMB
    Occurred in previous
    Items                  Occurred in current period                                                 Notes
    period
    Well-known brand prize from
    Nanchang Quality Supervisory                          50,000.00
    Bureau
    2011 Significant Tax Contribution
    Prize from Hi-tech Finance                                                      100,000.00
    Ministry
    Inland freight subsidy from
    262,000.00
    Nanchang Hi-tech Finance Ministry
    Nanchang Financial Bureau 2011
    236,700.00
    on-job training subsidy
    Graphic background production
    and extension and chip making                                                       25,000.00
    prize
    Purchase of equipment for
    50,000.00
    semi-conductor lighting technical
    108
    China Fangda Group Co., Ltd.              2013Interim Report
    development project
    Fund for optical-electric product
    30,000.00
    projects
    Total                                                  50,000.00                   703,700.00                     --
    64. Non-business expenses
    In RMB
    Amount accounted into
    Occurred in previous
    Items                          Occurred in current period                                the current accidental
    period
    gain/loss
    Total of losses from disposal of non-current assets                  169,723.53                 134,421.19                    169,723.53
    Including: Losses from disposal of fixed assets                      169,723.53                 134,421.19                    169,723.53
    Donation                                                             305,000.00                                               305,000.00
    Others                                                               197,575.63                 285,884.02                    197,575.63
    Total                                                                672,299.16                 420,305.21                    672,299.16
    65. Income tax expenses
    In RMB
    Items                                  Occurred in current period         Occurred in previous period
    Income tax calculated according to the law and regulations of
    9,028,463.76                         4,997,874.74
    current term
    Adjustment of differed income tax                                                      -1,232,555.34                        2,909,582.30
    Total                                                                                  7,795,908.42                         7,907,457.04
    66. Calculation of basic earning per share and diluted earning per share
    Items                                                                  Code            Occurred         in   Occurred in previous
    current period        period
    Net profit attributable to common share holders of the Company         P1              39,361,395.42         12,643,297.40
    Accidental gain/loss attributable to common share holders of the       F               1,796,843.22          6,662,512.15
    Company
    Net profit attributable to the common owners of the PLC after          P2=P1-F         37,591,750.20         5,980,785.25
    deducting of non-recurring gains/losses
    Influence of diluting events on net profit attributable to common      P3
    share holders of the Company
    Influence of diluting events on net profit attributable to the         P4
    common owners of the PLC after deducting of non-recurring
    109
    China Fangda Group Co., Ltd.    2013Interim Report
    gains/losses
    Opening share number                                                  S0             756,909,905      756,909,905
    Amount of shares increased by capitalizing of common reserves or      S1
    share dividend
    Amount of shares increased by issuing of new shares or                Si
    transforming of debt to shares
    Number of months from the next month of share increasing by           Mi
    issuing of new shares or transferring of debts to the end of report
    term
    Amount of shares decreased by repurchasing of shares in the           Sj
    report term
    Number of months since the next month of share decreasing to the      Mj
    end of report term
    Amount of shares reduced                                              Sk
    Number of months in the report term                                   M0             6                6
    Weighted average of common shares issued outside                      S=S0+S1+       756,909,905      756,909,905
    Si*Mi/M0-
    Sj*Mj/M0-
    Sk
    Add: the weighted average of common shares increased assuming         X1
    the diluting potential common shares transferred into issued
    common shares
    Weighted average of common shares for calculating diluted             X2=S+X1        756,909,905      756,909,905
    earning per share
    Including: Weighted average of common shares increased by
    conversion of corporate bonds
    Weighted average of common shares increased by exercising of
    subscription warrants/options
    Weighted average of common shares increased by performance of
    repurchase promise
    Earning per share attributable to common share holders of the         Y1=P1/S        0.05             0.02
    Company
    Basic earning per share attributable to the common owners of the      Y2=P2/S        0.05             0.01
    PLC after deducting of non-recurring gains/losses
    Basic earning per share attributable to common share holders of       Y3=(P1+P3      0.05             0.02
    the Company                                                           )/X2
    Diluted earning per share attributable to the common owners of        Y4=(P2+P4      0.05             0.01
    the PLC after deducting of non-recurring gains/losses                 )/X2
    110
    China Fangda Group Co., Ltd.    2013Interim Report
    67. Other miscellaneous income
    In RMB
    Items                              Occurred in current period   Occurred in previous period
    1. Amount of gain (loss) from sellable financial assets                                                       -126,000.00
    Less: Income tax influence of available-for-sale financial
    -31,500.00
    assets
    Subtotal                                                                           -94,500.00
    2. Others                                                                                                       91,831.63
    Subtotal                                                                            91,831.63
    Total                                                                              -2,668.37
    68. Notes to the cash flow statement
    (1) Other cash inflow related to operation
    In RMB
    Items                                                   Amount
    Interest income                                                                                              1,257,838.51
    Subsidy income                                                                                               2,058,143.07
    Net acceptance deposit                                                                                       1,223,605.50
    Bidding deposit                                                                                             15,304,652.89
    Operating trade, net                                                                                           373,126.84
    Others                                                                                                       4,635,765.07
    Total                                                                  24,853,131.88
    (2) Other cash paid related to operation
    In RMB
    Items                                                   Amount
    Payment management cost                                                                                     12,349,700.79
    Payment sales cost                                                                                           2,847,912.86
    Deposit                                                                                                     19,621,874.65
    Personal borrowing                                                                                           5,353,401.76
    Others                                                                                                      14,859,709.26
    Total                                                                  55,032,599.32
    111
    China Fangda Group Co., Ltd.      2013Interim Report
    (3) Other cash received related to investment activities
    In RMB
    Items                                                    Amount
    Received deposit related to investment                                                                          371,500.00
    Total                                                                      371,500.00
    (4) Other cash paid related to investment activities
    In RMB
    Items                                                    Amount
    Paid deposit related to investment                                                                              960,000.00
    Total                                                                      960,000.00
    (5) Other cash received related to financing
    None
    (6) Other cash paid related to financing
    In RMB
    Items                                                    Amount
    Short-term financing bond registration fee                                                                       14,000.00
    Dividend commission                                                                                              67,621.53
    Total                                                                       81,621.53
    69. Supplementary data of cash flow statement
    (1) Supplementary data of cash flow statement
    In RMB
    Supplementary Info.                     Amount of the Current Term       Amount of the Previous Term
    1. Net profit adjusted to cash flow of business operation               --                               --
    Net profit                                                                   38,156,917.62                     1,917,235.24
    Plus: Asset impairment provision                                              8,025,431.11                    17,877,520.45
    Fixed asset depreciation, gas and petrol depreciation,
    10,377,321.56                     9,464,901.99
    production goods depreciation
    Amortizing of intangible assets                                               1,737,302.43                     2,659,969.08
    112
    China Fangda Group Co., Ltd.   2013Interim Report
    Amortizing of long-term amortizable expenses                                   681,511.85                   239,104.35
    Loss from disposal of fixed assets, intangible assets, and
    25,647.65                     77,564.55
    other long-term assets (“-“ for gains)
    Loss from fixed asset discard (“-“ for gains)                                                               56,676.64
    Loss from fair value fluctuation (“-“ for gains)                                                        -5,936,670.15
    Financial expenses (“-“ for gains)                                        11,981,599.56                 14,395,048.68
    Decrease of deferred income tax asset (“-“ for increase)                  -1,674,888.70                   910,087.39
    Increase of deferred income tax asset (“-“ for increase)                    442,333.36                   1,967,994.91
    Decrease of inventory (“-“ for increase)                                  -9,025,857.85                   333,008.92
    Decrease of operational receivable items (“-“ for increase)          -116,350,428.69                   -62,840,068.07
    Increase of operational receivable items (“-“ for decrease)               56,712,972.69                -49,192,126.91
    Cash flow generated by business operation, net                               1,089,862.59                -68,069,752.93
    2. Major investment and financing operation not involving
    --                            --
    with cash
    3. Net change of cash and cash equivalents                            --                            --
    Balance of cash at period end                                              247,623,800.14                285,781,351.89
    Less: Initial balance of cash                                              240,167,372.86                415,709,113.55
    Net increasing of cash and cash equivalents                                  7,456,427.28                -14,395,656.89
    (2) Information about acquisition or disposal of subsidiaries or businesses
    None
    (3) Composition of cash and cash equivalents
    In RMB
    Items                              Closing amount               Opening amount
    I. Cash                                                                    247,623,800.14                240,167,372.86
    Including: Cash in stock                                                        17,785.62                     29,127.30
    Bank savings can be used at any time                                  247,606,014.52                285,571,921.04
    3. Balance of cash and cash equivalents at end of term                     247,623,800.14                240,167,372.86
    70. Notes to statement of change in owners equity
    None
    113
    China Fangda Group Co., Ltd.      2013Interim Report
    (VIII) Accounting treatment of capital securitilizing
    1. State the main trade arrangement, accounting treatment, and bankruptcy isolating terms of capital securitization.
    None
    2. Entities on which the Company has no control power but undertake the risks
    None
    (IX) Related parties and transactions
    1. Parent of the Company
    Share of      Voting
    Ultimate
    Legal                             the parent   power of
    Relationsh Ownership Registered                          Registered                           holder of Organizati
    Parent                                     representat Business                co. in the the parent
    ip          type    address                           capital                               the          on code
    ive                              Company      company
    Company
    %            %
    Shenzhen
    Banglin
    Controllin
    Technologi
    g            Ltd.                 Chen       Industrial 30,000,000                                       72984005-
    es                                   Shenzhen                                           9.09%       9.09%
    shareholde liability              Jinwu      investment .00                                              5
    Developm
    r
    ent Co.,
    Ltd.
    Shenzhen Controllin
    Shilihe       g            Ltd.                 Wang       Industrial 19,780,992                                       72984450-
    Shenzhen                                           2.36%       2.36%
    Investment shareholde liability                 Shengguo investment .00                                                7
    Co., Ltd.     r
    Controllin
    Shengjiu                                                                                                               59046683-
    g            Ltd.      Hong       Xiong      Industrial HKD10,00
    Investment                                                                              2.82%       2.82%              000-10-11-
    shareholde liability   Kong       Jianming   investment 0.00
    Ltd.                                                                                                                   2
    r
    1. All of the investors of Shenzhen Banglin Technology Development Co., Ltd. – the holding shareholder of the
    Company, are natural persons. Among them, Chairman Xiong Jianming is holding 85% of the shares, and Mr.
    Xiong Xi – son of Mr. Xiong Jianming, is holding 15% of the shares.
    2. Among the top 10 shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
    Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology Development Co., Ltd. and
    Shenzhen Shilihe Investment Co., Ltd. are related parties. The Company is not notified of other action-in-concert
    or related parties among the other holders of current shares.
    114
    China Fangda Group Co., Ltd.   2013Interim Report
    2. Subsidiaries of the Company
    Legal
    Ownership Ownership Registered                                             Registered Shareholdin Proportion Organizatio
    Subsidiary                                               representati    Business
    type             type         address                                      capital   g (%)    of votes %   n code
    ve
    Designing,
    Shenzhen
    manufacturi
    Fangda
    Controlled                                  Xiong          ng, and        310,000,000
    Decoration                   Ltd. liability Shenzhen                                                     100%        100% 19244418-2
    subsidiaries                                Jianwei        installation .00
    Engineering
    of curtain
    Co., Ltd.
    walls
    Design,
    Shenzhen                                                                 R&D,
    Fangda                                                                   installation
    Controlled                                                                105,000,000
    Automatic                    Ltd. liability Shenzhen      Lin Kebin      and sales of                    100%        100% 75425429-3
    subsidiaries                                                              .00
    System Co.,                                                              railway
    Ltd.                                                                     screen door
    systems
    Production
    Shenzhen
    and
    Fangda                       Sino-foreig
    Controlled                                  Yang           distribution USD3,200,0
    Yide New                     n joint          Shenzhen                                                   100%        100% 61929454-0
    subsidiaries                                Xioazhuan of new-type 00.00
    Material                     venture
    composite
    Co., Ltd.
    materials
    Prodution
    joint
    and sales of
    venture by
    new-type
    Fangda                       the
    materials
    New                          Company
    Controlled                                  Yang           composite      USD12,000,
    Materials                    and              Nanchang                                                   100%        100% 74852611-7
    subsidiaries                                Xioazhuan materials           000.00
    (Jiangxi)                    companies
    and
    Co., Ltd.                    in Taiwan,
    production
    Hong Kong
    of curtain
    or Macao
    walls
    Ltd. liability                              Design,
    (joint                                      production,
    Jiangxi                      venture by                                  sales and
    Fangda                       the                                         installation
    Controlled                                  Yang                          20,000,000.
    New Type                     Company          Nanchang                   of curtain                      100%        100% 15830664-0
    subsidiaries                                Xioazhuan                     00
    Aluminum                     and                                         wall
    Co., Ltd.                    domestic                                    aluminium
    and                                         materials,
    overseas                                    doors,
    115
    China Fangda Group Co., Ltd.    2013Interim Report
    companies)                            windows
    and
    sectional
    materials
    Hong Kong
    BODY
    Junjia         Controlled                                                          HKD10,000                           3007554-20
    CORPORA Hong Kong                     Investment                     100%         100%
    Group Co., subsidiaries                                                            .00                                 00-04-10-4
    TE
    Ltd.
    Manufacturi
    ng of
    semiconduc
    tor lighting
    material and
    chips;
    lighting
    source
    Shenyang
    encapsulatio
    Fangda
    n;
    Semi-condu Controlled                                   Wang                       200,000,000
    Ltd. liability Shenyang               developing,                   64.58%       64.58% 66254891-3
    ctor           subsidiaries                             Shengguo                   .00
    designing,
    Lighting
    manufacturi
    Co., Ltd.
    ng,
    engineering,
    installation
    and trading
    of
    semiconduc
    tor lighting
    system
    Developing
    of hardware
    Ltd. liability
    Shenzhen                                                            and
    (Sole
    Kexunda        Controlled                                           software,      1,000,000.0
    investment Shenzhen       Lin Kebin                                  100%         100% 58409491-9
    Software       subsidiaries                                         system         0
    by legal
    Co., Ltd.                                                           integration,
    person)
    technical
    consulting
    Developme
    Shenzhen                      Ltd. liability
    nt and
    Fangda                        (Sole
    Controlled                                           operating of 10,000,000.
    Property                      investment Shenzhen       Lin Kebin                                  100%         100% 05895223-1
    subsidiaries                                         real           00
    Developme                     by legal
    estatement
    nt Co., Ltd.                  person)
    on land of
    116
    China Fangda Group Co., Ltd.   2013Interim Report
    which land
    use right is
    legally
    obtained by
    the
    Company;
    property
    managemen
    t
    3. Joint ventures and affiliates
    None
    4. Other related parties
    None
    5. Related transactions
    None
    6. Receivable and payables due with related parties
    None
    (X) Share payment
    None
    (XI) Contingent events
    1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
    Plaintiff       Defender             Case                      Court                   Target amount            Progress
    st
    Wang           Fangda            Engineering        The 1 Middle Court of         RMB17.07 million and
    Loss appraisal
    Weihong        Decoration           dispute               Chongqing                    its interest
    st
    Note: In 2010, Wang Weihong sued to the 1 Middle Court of Chongqing against Fangda Decoration – one
    of the Companys subsidiaries, claiming for payment RMB17 million project payment and interest, while Fangda
    Decoration claimed RMB18 million of project payment and related loss. At present the trial process has been
    completed. Wang Weihong demanded loss appraisal in the debate stage. And the bank deposit of RMB12 million
    of Fangda Decoration was frozen by the court. RMB12 million in Fangda Decorations bank deposit account was
    frozen by the court according to the application of the plaintiff for pre-action custody of property.
    117
    China Fangda Group Co., Ltd.     2013Interim Report
    2. Contingent liabilities formed by providing of guarantee to other companies debts and their influences on
    financial situation
    None
    (XII) Commitments
    1. Major commitments
    Company                      Amount                                       Notes
    Jiangxi New Material           50,000,000.00           No loan commitment under the credit item at the end
    of the report period
    70,800,000.00
    Fangda Automatic
    36,327,443.94           This amount is the part used but not due in last year.
    Fangda Decoration             452,440,773.86
    This amount is the part used but not due in last year.
    15,903,217.28
    This amount is the part used but not due in last
    Fangda Automatic               5,506,224.75
    year.
    630,977,659.83
    Total
    The Company has no other commitments that should be disclosed by 30.06.13.
    2. Fulfilling of commitments made in previous periods
    None
    (XIII) Post-balance-sheet events
    None
    (XIV) Other material events
    1. Non-monetary asset exchange
    None
    2. Debt reconstruction
    None
    118
    China Fangda Group Co., Ltd.     2013Interim Report
    3. Enterprise merger
    None
    5. Leasing
    The Company leases investment real estates and obtained a lease income of RMB1,4213,900 million in the report period.
    5. Financial instruments issued to outside, convertible to shares
    None
    6. Assets and liabilities measured at fair value
    In RMB
    Accumulative
    Gain/loss caused by    changes in fair     Impairment
    Items            Opening amount         changes in fair     value accounting   provided in the     Closing amount
    value           into the income        period
    account
    Financial assets
    Investment real estate         254,766,256.33                                                                   254,766,256.33
    Total                          254,766,256.33                                                                   254,766,256.33
    Financial liabilities                     0.00                                                                             0.00
    7. Foreign currency financial assets and liabilities
    In RMB
    Accumulative
    Gain/loss caused by    changes in fair     Impairment
    Items            Opening amount         changes in fair     value accounting   provided in the     Closing amount
    value          into the income        period
    account
    Financial assets
    3. Loans and receivables        41,726,895.45                                                  -459,706.58         9,921,916.01
    Subtotal                        41,726,895.45                                                  -459,706.58         9,921,916.01
    Financial liabilities                     0.00                                                                             0.00
    8. Main contents of annual rewarding plan and material changes
    None
    119
    China Fangda Group Co., Ltd.        2013Interim Report
    9. Others
    None
    (XV) Notes to Financial Statements of the Parent
    1. Account receivable
    (1) Account receivable
    In RMB
    Closing amount                                        Opening amount
    Remaining book value       Bad debt provision          Remaining book value       Bad debt provision
    Type
    Propo
    Proporti                   Proporti                Proporti
    Amount        rtion     Amount                       Amount                   Amount
    on (%)                     on (%)                   on (%)
    (%)
    Account receivable with
    major individual amount
    0.00      0%              0.00
    and bad debt provision
    provided individually
    Account receivable for which bad debt provision is made by group
    Receivable accounts not
    8,455,543.17 100%       3,298,401.79 39.01%          8,455,543.17      100%    3,298,401.79 34.86%
    consolidated
    Subtotal                     8,455,543.17 100%       3,298,401.79 39.01%          8,455,543.17      100%    3,298,401.79 34.86%
    Account receivable with
    minor individual amount
    0%              0.00
    and bad debt provision
    provided individually
    Total                        8,455,543.17 --         3,298,401.79 --              8,455,543.17 --           3,298,401.79 --
    Notes to account receivable
    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”.
    Account receivable with major individual amount and bad debt provision provided individually at the end of the
    period
    □ Applicable √ Inapplicable
    In the group, the account receivable of which bad debt provision is made through the account aging method:
    √ Applicable □ Inapplicable
    In RMB
    Age                          Closing amount                                              Opening amount
    120
    China Fangda Group Co., Ltd.             2013Interim Report
    Remaining book value                                        Remaining book value
    Proporti Bad debt provision                                  Proporti Bad debt provision
    Amount                                                       Amount
    on (%)                                                       on (%)
    Less than 1 year
    Including:     --                        --          --                  --                           --          --
    Subtotal for
    less than 1                490,582.84         5.8%          14,717.49                    490,582.84        5.8%                14,717.49
    year
    1-2 years                 1,196,767.80 14.15%              119,676.78                  1,196,767.80 14.15%                    119,676.78
    2-3 years                 1,100,443.75 13.01%              330,133.13                  1,100,443.75 13.01%                   330,133.13
    Over 3 years              5,667,748.78 67.03%             2,833,874.39                 5,667,748.78 67.03%                  2,833,874.39
    4-5 years                 5,667,748.78 67.03%             2,833,874.39                 5,667,748.78 67.03%                  2,833,874.39
    Total                     8,455,543.17        --          3,298,401.79                 8,455,543.17        --               3,298,401.79
    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
    □ Applicable √ Inapplicable
    (2) Written-back or recovered account receivable during the report period
    None
    (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) Nature and description of major other account receivable
    None
    (6) Top 5 account receivable entities
    In RMB
    121
    China Fangda Group Co., Ltd.          2013Interim Report
    Relationship with the                                                             Percentage in the total
    Entity                                               Amount                      Term
    Company                                                                      account receivable (%)
    Guangzhou Metro
    Customer                                 1,196,767.80 1-2 years                                        14.15%
    Company
    Guangzhou Metro
    Customer                                 1,100,443.75 2-3 years                                        13.01%
    Company
    Guangzhou Metro
    Customer                                 5,667,748.78 Over 3 years                                     67.03%
    Company
    Total                        --                         7,964,960.33               --                                 94.19%
    (7) Account receivable from affiliates
    None
    Amount of receivable transferred but not satisfying the conditions of termination recognition is RMB0.00.
    (9) If securitization is performed on target asset with purpose of receivable account, please brief the related
    arrangements.
    None
    2. Other receivables
    (1) Other receivables
    In RMB
    Closing amount                                     Opening amount
    Remaining book value         Bad debt provision       Remaining book value        Bad debt provision
    Type                                    Propo                    Propo                    Propo                     Propo
    Amount            rtion    Amount          rtion      Amount        rtion       Amount        rtion
    (%)                      (%)                      (%)                        (%)
    Other receivables with major
    individual amount and bad
    0.00      0%              0.00     0%
    debt provision provided
    individually
    Other receivables for which bad debt provision is made by group
    Including: receivable out of                                                    22.57                                              25.64
    2,580,815.58 0.68%          582,475.08              2,213,985.94 0.43%          567,657.33
    the consolidation                                                                   %                                                  %
    Receivable accounts                                                                                      99.55
    377,205,742.78 99.3%                 0.00     0%    510,652,461.91
    consolidated                                                                                                %
    Subtotal                            379,786,558.36 99.98          582,475.08 0.15%      512,866,447.85 99.98          567,657.33 0.11%
    122
    China Fangda Group Co., Ltd.                 2013Interim Report
    %                                                       %
    Other receivables with minor
    individual amount and bad
    77,046.00 0.02%                  77,046.00 100%               77,046.00 0.02%                  77,046.00 100%
    debt provision provided
    individually
    Total                               379,863,604.36 --                   659,521.08 --           512,943,493.85 --                      644,703.33 --
    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 the group, the other receivables of which bad debt provision are made through the account aging method
    √ 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
    1,320,012.04         0.35%                43,413.22                 953,182.40         0.18%                     28,595.47
    than 1 year
    1-2 years                      203,000.00          0.05%                20,300.00                 203,000.00         0.04%                     20,300.00
    2-3 years                       50,699.54          0.01%                15,209.86                  50,699.54         0.01%                     15,209.86
    Over 3 years                  1,007,104.00         0.27%               503,552.00                1,007,104.00        0.2%                     503,552.00
    3-4 years                        2,729.00                0%              1,364.50                   2,729.00               0%                   1,364.50
    4-5 years                              0.00              0%                  0.00
    Over 5 years                  1,004,375.00         0.26%               502,187.50                1,004,375.00        0.2%                     502,187.50
    Total                         2,580,815.58          --                 582,475.08                2,213,985.94         --                      567,657.33
    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
    123
    China Fangda Group Co., Ltd.     2013Interim Report
    (2) Written-back or recovered other receiables during the report period
    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 (%)
    Fangda Decoration          Related party                    260,635,017.26 Less than 1 year                              68.61%
    Fangda Decoration          Related party                        78,127,882.12 1-2 years                                  20.57%
    Fangda Decoration          Related party                          350,445.31 Over 3 years                                0.09%
    HK Junjia                  Related party                             9,759.56 Less than 1 year                               0%
    HK Junjia                  Related party                            49,352.88 1-2 years                                  0.01%
    HK Junjia                  Related party                        30,330,898.93 Over 3 years                               7.98%
    Shenyang Fangda            Related party                         6,674,389.28 1-2 years                                  1.76%
    Shenyang Fangda            Related party                          232,382.30 Over 3 years                                0.06%
    Shenzhen Longevity
    Non-affiliated party                   984,375.00 Over 3 years                                0.26%
    Pharmaceutical Co., Ltd.
    Fangda Automatic           Related party                          423,693.77 Less than 1 year                             0.11%
    Total                      --                   377,818,196.41                 --                            99.45%
    (7) Other receivables from affiliates
    In RMB
    Percentage in the total other
    Entity             Relationship with the Company               Amount
    receivables (%)
    124
    China Fangda Group Co., Ltd.              2013Interim Report
    Fangda Decoration                 Subsidiary                                          339,113,344.69                                89.27%
    HK Junjia                         Subsidiary                                           30,390,011.37                                    8%
    Shenyang Fangda                   Subsidiary                                               6,906,771.58                              1.82%
    Fangda Automatic                  Subsidiary                                                423,693.77                               0.11%
    Total                             --                                    376,833,821.41                                 99.2%
    (8) Amount of other account receivable transferred but not satisfying the conditions of termination recognition is
    RMB0.00.
    (9) If securitization is performed on target asset with purpose of other receivable account, please brief the related
    arrangements.
    None
    3. Long-term share equity investment
    In RMB
    Notes to
    inconsiste
    Proportio       nce
    n of       between
    Sharehold                                          Provision    Cash
    voting         the       Impairme
    Invested      Audit   Investme     Ending              Beginnin ing in the                                            made in     dividend
    Change                            rights in sharehold          nt
    entity    method    nt cost     balance             g balance invested                                               this       in the
    the        ing and     provision
    entity (%)                                          period      period
    invested      voting
    entity (%)     right
    proportio
    n
    Fangda
    305,000,0 305,000,0              305,000,0
    Decoratio Cost                                                        98.39%       98.39%
    00.00        00.00               00.00
    n
    Fangda
    19,800,00                                                                           19,800,00
    Aluminiu Cost                                                            99%          99%
    0.00                                                                                0.00
    m
    Fangda                 19,907,76                                                                           19,907,76
    Cost                                                        75%          75%
    Yide                        0.00                                                                                0.00
    HK
    Cost      10,600.00                                        100%         100%                  10,600.00
    Junhjia
    Fangda
    170,385,0 170,385,0              170,385,0
    Automati Cost                                                         94.08%       94.08%
    71.73        71.73               71.73
    c
    125
    China Fangda Group Co., Ltd.           2013Interim Report
    Jiangxi
    74,496,60 74,496,60                 74,496,60
    New        Cost                                                            75%        75%
    0.00        0.00                    0.00
    Material
    Shenyang              109,560,0 108,852,0                 108,852,0
    Cost                                                            65%        65%
    Fangda                   00.00        73.85                  73.85
    1,000,000 1,000,000                 1,000,000
    Kexunda Cost                                                            100%        100%
    .00         .00                     .00
    Fangda                50,000,00               40,000,00 50,000,00
    Cost                                                         100%        100%
    Property                   0.00                    0.00        0.00
    750,160,0 659,733,7 40,000,00 709,733,7                                          39,718,36
    Total            --                                                     --          --        --
    31.73        45.58        0.00      45.58                                          0.00
    4. Operational revenue and costs
    (1) Turnover
    In RMB
    Items                            Occurred in current period                       Occurred in previous period
    Other business income                                                 23,580,401.58                                       22,293,459.72
    Total                                                                 23,580,401.58                                       22,293,459.72
    Operation cost                                                         4,742,190.07                                        4,730,478.42
    (2) Business segments (by industries)
    None
    (3) Business segments (by products)
    None
    (4) Business segments (by regions)
    None
    (5) Revenue from top five customers
    In RMB
    Percentage in total
    Customer                                          Total operating revenue                turnover of the
    Company %
    No.1                                                                                           3,951,958.86                      16.76%
    126
    China Fangda Group Co., Ltd.      2013Interim Report
    No.2                                                                                         1,385,759.72                 5.88%
    No.3                                                                                          439,452.97                  1.86%
    No.4                                                                                          427,153.75                  1.81%
    No.5                                                                                          411,303.50                  1.74%
    Total                                                                                        6,615,628.80                28.05%
    5. Investment income
    None
    6. Supplementary data of cash flow statement
    In RMB
    Supplementary Info.                         Amount of the Current Term Amount of the Previous Term
    1. Net profit adjusted to cash flow of business operation                         --                          --
    Net profit                                                                              4,182,618.87                6,980,842.10
    Plus: Asset impairment provision                                                          14,817.75                  122,857.23
    Fixed asset depreciation, gas and petrol depreciation, production
    1,665,113.65                1,175,899.60
    goods depreciation
    Amortizing of intangible assets                                                          333,612.30                  327,558.28
    Amortizing of long-term amortizable expenses                                              10,482.19
    Loss from disposal of fixed assets, intangible assets, and other
    34,285.02
    long-term assets (“-“ for gains)
    Loss from fixed asset discard (“-“ for gains)                                                                       56,676.64
    Loss from fair value fluctuation (“-“ for gains)                                                                 -5,543,657.60
    Financial expenses (“-“ for gains)                                                    2,220,824.92                3,544,866.74
    Decrease of deferred income tax asset (“-“ for increase)                               552,106.63                  599,070.70
    Increase of deferred income tax asset (“-“ for increase)                               442,333.36                 1,950,480.76
    Decrease of operational receivable items (“-“ for increase)                     133,114,979.09                   24,604,419.01
    Increase of operational receivable items (“-“ for decrease)                      -23,492,415.59              -29,463,553.80
    Cash flow generated by business operation, net                                    119,078,758.19                    4,355,459.66
    2. Major investment and financing operation not involving with cash               --                          --
    3. Net change of cash and cash equivalents                                        --                          --
    Balance of cash at period end                                                          97,607,953.57               18,261,159.78
    Less: Initial balance of cash                                                          25,540,604.84               24,294,775.12
    Net increasing of cash and cash equivalents                                            72,067,348.73               -6,033,615.34
    127
    China Fangda Group Co., Ltd.             2013Interim Report
    7. Assets and liabilities accounted by valuation under counter purchase
    None
    (XVI) Supplementary Materials
    1. Detailed accidental gain/loss
    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)
    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
    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
    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
    128
    China Fangda Group Co., Ltd.          2013Interim Report
    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          1,120,196,674.36           1,103,375,593.81
    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. Net income on asset ratio and earning per share
    In RMB
    Earning per share
    Weighted average net
    Profit of the report period                                                                          Diluted earnings per
    income/asset ratio (%)      Basic earnings per share
    share
    Net profit attributable to common shareholders
    3.54%                         0.05                        0.05
    of the Company
    Net profit attributable to the common owners of
    the PLC after deducting of non-recurring                                   3.38%                         0.05                        0.05
    gains/losses
    4. Irregular situation and causes of items in the financial statements
    None
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    China Fangda Group Co., Ltd.   2013Interim Report
    IX Documents for Reference
    1. The Interim Report 2013 and the Summary with signature of the legal representative (Chinese and English);
    2. Financial statements signed and stamped by the legal representative, CFO and head of the CPA;
    3. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the
    websites as designated by China Securities Regulatory Commission.
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