China Fangda Group Co., Ltd.
2013
Auditors’ report
Grant Thornton (special general partner)
Table of Contents
Auditors’ report
Balance Sheet and Consolidated Balance Sheet 1-2
Income Statement and Consolidated Income Statement 3
Cash Flow Statement and Consolidated Cash Flow Statement 4
Statement on Change ofShareholders’ Equity, Consolidated
5-8
Statement on Change ofShareholders’ Equity
Notes to Financial Statements 9-70
Grant Thornton (special general partner)
No.22, Jianguomenwai Road, Chaoyang District, Beijing, China Saite Plaza 5F Post Code 100004 Tel.+86 10 8566 5588 Fax+86 10 8566 5120 www.grantthornton.cnAuditors’ report
Grant Thornton (2014) No.350ZA0056 To the shareholders of China Fangda Group Co., Ltd.:
We have audited the Financial Statements of China Fangda Group Co., Ltd. (“Fangda Group”) attached hereafter, including the Balance Sheet and Consolidated Balance Sheet ended December 31, 2013 and the Income Statement, Consolidated Income Statement, Cash Flow Statement, Consolidated Cash Flow Statement, Statement on Change ofShareholders’ Equity, Consolidated Statement on Change ofShareholders’ Equity of the year 2013, as well as the Notes to the Financial Statements.
1.Executives’ responsibilities on the Financial Statements
Preparing of the Financial Statements according to Enterprise Accounting Standard is the responsibility of the management of the Company. This responsibility includes: (1) to prepare the financial statements according to the accounting standard, and ensure its fair reflection of business position; (2) to design, implement and maintain the internal control system related to producing of the Financial Statements, to prevent the Financial Statements from major false presentation due to cheating or error.
2. Responsibilities of the CPA
Our responsibility is to express an auditing opinion on the financial statements basing on our audit. We carried out the auditing works with compliance to Chinese CPA
Auditing Standard, which requires us to plan and implement our works on the basis of
professional ethic standards, and obtain reasonable guarantee that the Financial
Statements are free of major false statements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to theentity’s preparation of financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting polices used and the
reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3.Auditors’ Opinions
We believe that Fangda Group has been following with the Enterprise Accounting Standard in preparing of the Financial Statements. The Financial Statements is reflecting, in all important aspects, the financial situation of Fangda Group as of December 31, 2013, and the business performance and cash flow of year 2013.
Grand Thornton CPA CPA China
(limited liability
partnership)
CPA China
Beijing, China March 7, 2014
Consolidated and Corporate Balance Sheet
31-Dec-13
Prepared by: China Fangda Group Co., Ltd. In RMB yuan
|||||||
|-|-|-|-|-|-|
|||Closing amount||||
|Item|Note|Consolidated|Company|Consolidated|Company|
||V 1V 2V3XI 1V 4V 5XI 2V 6V 8XI 3V 9V 10V 11V 12V 13V 14V 15V 16V 18|333,876,921.9721,898,770.43898,780,981.9328,364,016.213 6,387.5066,298,730.17428,537,851.821,777,793,660.039 ,994,565.55195,249,069.13462,930,269.989 40,841.001 77,298.1191,527,650.523 ,799,354.7941,166,043.5615,978,789.90821,763,882.542,599,557,542.57|68,223,808.766 04,459.492 18,984.0739,356,000.00571,620,659.73680,023,912.05719,728,311.13174,778,756.6248,117,849.199 14,126.001 ,351,845.985 0,314.4312,342,430.37957,283,633.721,637,307,545.77|278,283,968.617 ,638,780.88774,890,805.3022,006,159.227 2,833.3357,339,556.28269,120,191.361,409,352,294.98258,405,762.09341,555,810.21175,138,694.28102,380,382.216 7,700.004 ,710,860.6536,191,385.09918,450,594.532,327,802,889.51||

Consolidated and Corporate Balance Sheet (Continued)
31-Dec-13
|||||
|-|-|-|-|
|Note|Closing amount|||
||Consolidated|Company|Consolidated|
|||104,000,000.001 ,849,090.367 98,586.701 ,881,681.862 60,761.301 93,930.00192,765,065.68301,749,115.9088,615,374.2688,615,374.26390,364,490.16756,909,905.0038,690,396.6346,389,142.21404,953,611.771,246,943,055.611,246,943,055.611,637,307,545.77|181,970,000.00160,779,777.03411,846,031.7277,741,903.0223,945,272.5533,686,577.981 ,954,557.2741,340,056.86200,000,000.001,133,264,176.437,700.0036,210,286.4036,217,986.401,169,482,162.83756,909,905.0080,299,867.6430,494,542.94230,907,879.991,098,612,195.5759,708,531.111,158,320,726.682,327,802,889.51|

Consolidated and Corporate Income Statement
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan
|||||
|-|-|-|-|
|Note|This period|||
||Consolidated|Company|Consolidated|
|V 34XI 4V 34XI 4V 35V 36V 37V 38V 39V 40XI 5V 41XI 5V 42V 43V 44V 45V 46|1,747,620,845.741,425,369,204.4223,272,313.8437,383,041.60127,254,247.2623,108,586.3933,783,118.6716,647,859.743 00,866.92-5,434.4594,399,060.227 ,595,856.241 ,344,375.306 17,106.70100,650,541.1619,249,761.6081,400,779.5685,676,863.78- 4,276,084.220.11- 1,108,815.6380,291,963.9384,568,048.15-4,276,084.22|4 5,659,921.071 0,980,932.523 ,415,837.542 2,773,847.971 0,054,285.40- 3,228,252.951 6,647,859.74-5,434.45-5,434.451 8,305,695.88193,478,232.514 42,064.1237,992.07211,341,864.275 2,395,871.61158,945,992.66- 1,108,815.63157,837,177.03|1,397,901,424.591,145,066,535.4323,902,902.3535,114,854.91122,677,890.2424,771,976.7650,714,112.5512,290,834.223 ,448,207.9911,392,194.5611,817,267.063 ,662,524.432 20,018.0419,546,937.1913,103,694.816 ,443,242.3824,948,377.20- 18,505,134.820.03- 179,626.286 ,263,616.1024,768,750.92-18,505,134.82|

Legal representative: CFO: Accounting manager:
Consolidated and Corporate Cash Flow Statement
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan
|||||
|-|-|-|-|
|Note|This period|||
||Consolidated|Company|Consolidated|
|||4 4,496,139.395 80,085,321.106 24,581,460.491 2,790,698.851 0,045,800.124,659,170.872 17,012,897.352 44,508,567.193 80,072,893.303 3,241,974.203 3,241,974.201,359,102.965 0,000,000.005 1,359,102.96-18,117,128.761 94,000,000.001 94,000,000.004 70,000,000.004 3,525,867.315 13,525,867.31- 319,525,867.313,306.694 2,433,203.922 5,540,604.846 7,973,808.76|1,282,311,735.701,234,080.0924,427,611.051,307,973,426.84951,259,916.91131,600,289.6665,938,208.3999,912,940.511,248,711,355.4759,262,071.371,500,000.003,448,207.9911,002,219.004,022,500.0019,972,926.99105,572,445.602,050,000.00107,622,445.60-87,649,518.61570,368,873.33200,000,000.00770,368,873.33775,500,000.0025,336,873.471,100,000.00801,936,873.47-31,568,000.14- 54,188.54-60,009,635.92300,177,008.78240,167,372.86|

Legal representative: CFO: Accounting manager:
Statement of Change inShareholders’ Equity (Consolidated)
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan This period
|||||||||
|-|-|-|-|-|-|-|-|
|Shareholders’ Equity Attributable to the Parent Company|||||||Minorshareholders’equity|
|Share capital|Capital reserves|Less: Sharesin stock|Specialreserves|Surplus reserves|Retained profit|Others||
||80,299,867.6480,299,867.64-1,108,815.63-1,108,815.63-1,108,815.63---79,191,052.01|--------|---------|3 0,494,542.943 0,494,542.941 5,894,599.27--1 5,894,599.271 5,894,599.27-4 6,389,142.21|230,907,879.99230,907,879.9947,241,751.6485,676,863.7885,676,863.78--38,435,112.14-15,894,599.27-22,540,512.87-278,149,631.63|--------|59,708,531.1159,708,531.11-4,276,084.22-4,276,084.22-4,276,084.22----55,432,446.89|

Statement of Change inShareholders’ Equity (Consolidated)
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan Last period
|||||||||
|-|-|-|-|-|-|-|-|
|Shareholders’ Equity Attributable to the Parent Company|||||||Minorshareholders’equity|
|Share capital|Capital reserves|Less: Sharesin stock|Specialreserves|Surplus reserves|Retained profit|Others||
||80,479,493.9280,479,493.92-179,626.28-179,626.28-179,626.28---80,299,867.64|-------|--------|2 4,676,077.162 4,676,077.165,818,465.78--5,818,465.785,818,465.78-3 0,494,542.94|211,777,968.57211,777,968.5719,129,911.4224,948,377.2024,948,377.20-- 5,818,465.78- 5,818,465.78-230,907,879.99|-------|78,213,665.9378,213,665.93-18,505,134.82-18,505,134.82-18,505,134.82-----59,708,531.11|

Statement of Change inShareholders’ Equity
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan This period
|||||||
|-|-|-|-|-|-|
|Share capital|Capitalreserves|Less: Sharesin stock|Specialreserves|Surplusreserves|Retained profit|
||39,799,212.2639,799,212.26-1,108,815.63-1,108,815.63-1,108,815.63----38,690,396.63|---------|---------|30,494,542.9430,494,542.9415,894,599.27--15,894,599.2715,894,599.27--46,389,142.21|284,442,731.25284,442,731.25120,510,880.52158,945,992.66158,945,992.66--38,435,112.14-15,894,599.27-22,540,512.87--404,953,611.77|

Legal representative: C F O : Accounting manager:
Statement of Change inShareholders’ Equity
2013
Prepared by: China Fangda Group Co., Ltd. In RMB yuan This period
|||||||
|-|-|-|-|-|-|
|Share capital|Capitalreserves|Less: Sharesin stock|Specialreserves|Surplusreserves|Retained profit|
||39,799,212.2639,799,212.26-1,108,815.63-1,108,815.63-1,108,815.63----38,690,396.63|---------|---------|30,494,542.9430,494,542.9415,894,599.27--15,894,599.2715,894,599.27--46,389,142.21|284,442,731.25284,442,731.25120,510,880.52158,945,992.66158,945,992.66--38,435,112.14-15,894,599.27-22,540,512.87--404,953,611.77|

Legal representative: C F O : Accounting manager:
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Notes to Financial Statements
I. 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深府办函（1995）194号, 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 theCompany’s business license is: 440301501124785; with a registered capital of RMB756,909,905; 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深招商复[1997]0192号, 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 Company has established a corporate governance structure that comprisesshareholders’ 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, Fangda 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. II. 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– General 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
－7－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
operating (Shenyang Fangda, 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, 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 December 31, 2013, and business performance and cash flow situation in 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.
－8－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(VI). Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries.
(2) Preparation of Consolidated Financial Statements
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 theshareholders’ equity in subsidiaries not owned the Company are separately listed under theshareholders’ equity as minorityshareholders’ equity in the consolidated balance sheet.The part of thesubsidiaries’ net profits and losses for the current period that belongs to minority shareholders is listed as minorityshareholders’ 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 theowners’ equity of the subsidiaries at the
beginning of the period, the excessive part will offset the minorityshareholders’ equity. (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 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 are 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. Non-monetary items accounted in foreign currency and on fair value are exchanged with the spot exchange rate on the determination date of the fair value. The exchange difference between the accounting standard-currency amount and the original accounting standard- currency amount are included in the current profits and losses.
(IX) Financial instrument
Financial instrument refers to acompany’s financial assets and contracts that form other units of financial liabilities or equity instruments.
1. Recognition and derecognition of financial instrument
－9－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
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.
When partial or all of the current responsibilities attached to such financial liabilities, the partial or all of the financial liabilities are derecognized.
Financial asset transactions in regular ways are recognized and de-recognized on the
transaction date.
(2) Classification and measurement of financial assets
The Company's financial assets mainly include receivables, which refer to non-derivative financial assets without quotations but with fixed recoverable amount or can be confirmed, including receivable accounts and other receivables (Note 2. 10).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. (3) Classification and measurement of financial liabilities
TheCompany’s financial liabilities are mainly other financial liabilities
Other 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.
(4) Transfer of financial assets
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. (X) Receivables
Receivables include receivable accounts, other receivables and prepayment.
(1) Receivables with major individual amount and bad debt provision provided individually
－10－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
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” and other
receivables over RMB1 million (included) as “individual receivable with large amount”. The Company performs impairment examination individually on each large amount
receivables, and recognizes impairment and provides bad debt provision when the impairment is recognized based on objective evidence.
Those not impaired are accounted along with the minor amount receivables and recognized in risk groups.
(2) Receivables with minor individual amount and bad debt provision provided individually Reasons for separate bad debt
Long account age or deterioration of customer creditability provision
According to the difference between the present value of Method of bad debt provision
future cash flow and the book value (3) Recognition and providing of bad debt provisions on groups
Receivables (including receivables with major and minor individual amount) tested as not impaired and receivables with minor individual amount not tested are provided according to the following group of credit risk features:
Group type Grouping basis
Providing method Account age Account age Aging method Receivable accounts
Consolidation scope Separate test method consolidated
The providing rate is as follows for the group that adopts the aging method:
Providing rate for Providing rate for other Age
receivable account% receivables% Less than 1 year 3.00 3.00 1-2 years 10.00 10.00 2-3 years 30.00 30.00 Over 3 years 50.00 50.00 (XI) Inventories
(1) Classification of inventories
TheCompany’s inventories include purchased materials, raw materials, low-value
consumables, OEM materials, products in process, semi-finished goods, finished goods, inventory, development products, and construction in process.
－11－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(2) Pricing of inventory
Inventories are measured at cost when procured. Raw materials, products in process and commodity stocks 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.
The actual costs of development products include land transfer payment, infrastructure and facility costs, installation engineering costs, borrows before completion of the development and other costs during the development process. The actual costs of the development product is priced using the separate pricing method.
(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.
(5) Amortizing of low-value consumables and packaging materials
－12－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Low-value consumables are amortized on on-off amortization basis at using.
12. Long-term share equity investment
Long-term share equity investment of the Company includes investment in subsidiaries and joint ventures.
(1) Recognition of initial investment costs
Long-term share equity investment is measured at the investment cost when it is obtained. The investment cost is generally is assets, liabilities occurred or borne to obtained the
investment, including direct related costs. The investment cost of long-term share equity investment formed by entities under common control is the share of the book value of the owner's equity of the merged party on the date of the merger.
2. Subsequent measurement and recognition of gain/loss
The Company uses the cost method to measure long-term share equity investment in which the Company can control the invested entity; and uses the equity method to measure long- term share equity investment in which the Company has substantial influence on the invested entity.
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 major influence on invested entities
Major influence refers to the power to participate in decision-making of financial and
operation policies of a company, but cannot control or jointly control the making of the policies. If the Company directly or through subsidiaries holds more than20% (inclusive) but less than50% of the shares with voting rights of the invested entity, unless there is clear evidence proving that the Company cannot participate the decision-making of production and operation of the invested entity, the Company has major influence on the invested entity. (4) Impairment examination and providing of impairment provision
See Note II 25 for the assets impairment provision method for investment in subsidiaries and joint ventures.
(XIII) Investment real estate
Investment real estate is held for rent or capital appreciation, or both. Investment real estate of the Company are buildings leased.
For investment real estate with an active real estate transaction market and the Company can obtain market price and other information of same or similar real estate to reasonably estimate the investment realestate’ fair value, the Company will use the fair value mode to measure the investment real estate subsequently. Variations in fair value are accounted into the current
gain/loss account.
－13－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
The fair value of investment real estate is determined with reference to the current market prices of same or similar real estate 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 estate with book value and related taxes deducted is accounted into the current gain/loss account.
See Note II 25 for the assets impairment provision method for the investment real estate that are subsequently measured using the cost model.
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 (2) 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:
Annual Service year Residual rate
Type depreciation rate (year) %
% Houses& buildings 35-45 10 2-2.57 Mechanical equipment 10 10 9 Transportation facilities 5 10 18 Electronics and other
5 10 18
devices
－14－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
For fixed assets for which depreciation provision is made, the depreciation rate will be determined after the accumulative depreciation provision amount is deducted.
(3) See Note II 25 for the depreciation testing and provision method for fixed assets.
(4) 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. (5) Overhaul cost
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
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. Construction in process will be transferred to fixed assets when it reaches the preset service condition.
See Note II 25 for the provision method for construction in process.
(XVI) Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing 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 assets;
(2) The borrowing expense has already occurred;
(3) Purchasing activity, which is necessary for the asset to reach the useful status, has already started.
(2) During borrowing expense capitalization
When the asset satisfying the capitalizing conditions has reached its usable status, capitalizing of borrowing expenses shall be terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service conditions are accounted into the current gain/loss account according to the actual amounts.
－15－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
If the construction 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.
17. Intangible assets
TheCompany’s intangible assets include land using rights, patent, industry property, special technologies, and software.
Intangible assets are initially measured at costs and the useful life will be determined when obtained. 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.
Intangible assets with limited useful life are amortized as followings:
Basis of
Type Useful life Notes amortization
Land using right Beneficial age Average age
Patent 10 years Average age
Proprietary technology 10 years Average age InternalR&D Software 5, 10 years Average age
10 years or
Other intangible assets Average age
beneficial age
At the end of each year, the Company will reexamine the useful life and amortization basis of intangible assets with limited useful life. If they change, adjust the prediction and handle it according to accounting estimate changes.
On the balance sheet day, if the intangible assets become unlikely to bring future economic benefits for the Company, transfer all the intangibleassets’ book value into the current gain/loss account.
See Note II 25 for the impairment provision method for intangible assets.
(XVIII)R&D expenses
The Company divides internalR&D project expenses into research and development expenses. The research expenses are accounted the current gain/loss account.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales; there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is
useful; with necessary technical and financial resources and other resources to complete the
－16－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
development of the intangible assets and the intangible assets can be used or sold; the
development expense can be reliably measured. If not, the development expense is accounted into the current gain/loss account.
If a research project meets the above-mentioned conditions and passes the technical and economic feasibility study, the project will enter the development stage.
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.
19. Long-term amortizable expenses
TheCompany’s 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.
(XX) 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.
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.
(XXI) Revenue
(1) General principles
1. Sales of goods
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
－17－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
benefit may inflow to the Company; (5) Relative costs, occurred or will occur, can be reliably measured.
2. Providing of labor service
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 labor service cost as the current expense. If no compensation can be obtained for incurred labor service cost, no revenue can be recognized.
3. 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.
4. Construction contracts
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.
(2) Specific revenue recognition method
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:
－18－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
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.
(XXII) Government subsidy
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. When there is no clear evidence indicating compliance with related conditions for governmental support and it is estimated that the Company can receive a government subsidy, it will be measured at the receivable amount. Otherwise, it is measured at the amount actually received.
Government subsidies related to assets are obtained by the Company to purchase, build or formulate in other manners long-term assets; or subsidies related to benefits.
For subsidies that can formulate long-term assets without clear government regulations, the part of the subsidies corresponding to the asset value will be measured as assets-related government subsidies, while the rest of them will be measured as benefit-related government subsidies. Where it is difficult to distinguish them from each them, the whole subsidies will be measured as benefit-related government subsidies.
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
－19－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
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 set off, the exceeded part shall be recorded into current income account; if there is no relative differed gain, record to current income account directly. (XXIII) Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income taxExcept for the adjustment goodwill generated by mergers or deferred income tax related to transactions or events directly
accounted into theowners’ equity, income tax is accounted as income tax expense into the current gain/loss account.
The Company uses the temporary difference between the book value of the assets and
liabilities on the balance sheet day and the tax base and the liabilities method to recognize the deferred income tax.
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 and affiliates, the reversal timing for the temporary difference can be controlled and the difference is unlikely to be reversed in the foreseeable future.
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 and affiliates, 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.
On the balance sheet day, the Company measures the deferred income tax assets and liabilities with the tax rate applicable during the predicted period during which the assets are recovered or the liabilities are paid off and reflects the income tax influence of the assets recovery and liabilities repayment way on the balance sheet day.
－20－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
On the balance sheet day, the Company re-examines the book value of the deferred income tax assets. If it is unlikely to have adequate taxable proceeds to reduce the benefits of the deferred income tax assets, less the deferred income taxassets’ book value. When there is adequate taxable proceeds, the lessened amount will be reversed.
(XXIV) Operational leasing and financial leasing
The Company transfers all the risks and rewards attached to the asset at substantially
transferred to the lessee, it is recognized as financial leasing, and the others are operational leasing.
(1) The Company is 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.
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.
(2) The Company as 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 assets.
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.
(XXV) Assets impairment
The Company uses the cost mode to continue measuring the assets impairment to investment real estate, fixed assets construction in progress, intangible assets and goodwill (except for the inventories, investment real estate measured by the fair value mode, deferred income tax assets and financial assets). The method is determined as follows:
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
－21－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
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.
(XXVI) Staff remuneration
During the account period during which the staff work for the Company, the Company recognizes the payable remuneration as liabilities.
The Company participates in the social security system established by the government as required, including basic retirement pension, medical insurance, housing reserve and other social security programs. Related expenses are accounted into related capital costs or current income account when the expenses occur.
The Company may terminate the employment prior to the expiration of the employment contract or propose compensation to persuade employees to accept a job-cut plan. If the Company cannot unilateral withdraw the employment termination plan or immediately implement to job-cut compensation plan, the estimated liabilities generated by the
compensation made for termination of employment is accounted into the current income account.
(XXVII) Significant accounting judgment and estimate
The Company continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future events based on its historical experience and other factors.
－22－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Significant accounting judgment and assumptions that may lead to major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows:
(1) Goodwill impairment
The Company judges whether there is impairment to goodwill at least annually. This required valuation of the use value of the asset groups with goodwill. While estimating the use value, the Company needs to estimate the cash flow from the asset group in the future and choose the proper discount rate to calculate the present value of the future cash flow.
(2) Result of construction contract
The recognition of revenue of the Company's construction contract needs to reasonably estimate the contract cost and gross margin rate. This requires a log of judgment by the management to forest the future costs of the contract.
(3) Estimate of fair value
The Company uses fair value to measure investment real estate and needs to estimate the fair value of investment real estate at least quarterly. This requires the management to reasonably estimate the fair value of the investment real estate with the help of valuation experts.
(4) Deferred income tax assets
If there is adequate taxable profit to deduct the loss, the deferred income tax assets should be recognized by all the unused tax loss. This requires the management to make a lot of
judgment to forecast the time and amount of future taxable profit and determine the amount of the deferred tax assets based on the taxation strategy.
(XXVIII) Major changes in accounting policies and estimates
(1) Changes in accounting policies
Changes in major accounting policies in the report period: no
(2) Changes in accounting estimates
Changes in major accounting estimates in the report period: no
(XXIX) Correction of previous accounting faults
(1) Retrospective restatement method
Faults in adoption of the retrospective restatement method in the report period: No
(2) Prospective application method
Faults in adoption of the prospective application method in the report period: No
III. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate%
－23－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
VAT Taxable income 6, 13, 17 Business tax Taxable income 3, 5 City maintenance and
Taxable turnover 1, 5, 7 construction tax
See the Enterprise income tax Taxable income following table Enterprise income tax rates
Company Tax rate Notes The Company 25%
Shenzhen Fangda Decoration Engineering Co., Ltd. (hereinafter
15% See III 2 (1) Fangda Decoration)
Shenzhen Fangda Automatic System Co., Ltd. (hereinafter
15% See III 2 (2) Fangda Automatic)
Shenzhen Fangda Yide New Material Co., Ltd. (hereinafter
25%
Fangda Yide)
Shenzhen Woke Semi-conductor Lighting Co., Ltd. (hereinafter
25%
Shenzhen Woke)
Fangda New Material (Jiangxi) Co., Ltd. (hereinafter Fangda
15% See III 2 (3) New Material)
Jiangxi Fangda New Type Aluminum Co., Ltd. (hereinafter
25%
Fangda Aluminum)
Shenyang Fangda Semi-conductor Lighting Co., Ltd.
25%
(hereinafter Shenyang Fangda)
Dongguan Fangda New Material Co., Ltd. (hereinafter
25%
Dongguan New Material)
Shenzhen Kexunda Software Co., Ltd. (hereinafter Kexunda) 25% See III 2 (4) Chengdu Fangda New Material Co., Ltd. (hereinafter Chengdu
25%
Fangda)
Fangda Decoration Engineering (Shenyang) Co., Ltd.
25%
(hereinafter Shenyang Decoration)
Shenzhen Fangda Property Development Co., Ltd. (hereinafter
25%
Fangda Property Development)
2. Tax preference and approval
(1) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological 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 of15% for three years (2012-2014) since the qualifications were awarded.
(2) According to the Certification of High-tech Enterprise issued by Shenzhen Commission of Technological 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 of15% for three years (2012-2014) since the qualifications were awarded.
－24－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(3) According to the Certification of High-tech Enterprise issued by Jiangxi Ministry of Science and Technology, Jiangxi Ministry of Finance, Jiangxi National Tax Bureau, and Jiangxi Local Tax Bureau on November 7, 2012, Fangda New Material was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2012-2014) since the
qualifications were awarded.
(4) On December 25, 2013, Kexunda was certified by Shenzhen Nanshan National Tax Bureau as a software and integrated circuit designer according to the Shenzhen National Tax Reduction Registries[2013] No.739 and will enjoy exemption from the enterprise income tax for two years and50% reduction of the same tax for another three years from the year that the company starts making a net profit. Kexunda started making profits in 2013 and therefore starts to enjoy the exemption.
IV Merger of enterprises and consolidated financial statements
1. Profiles of the subsidiaries
(1) Subsidiaries founded or acquired from investment (including companies controlled by
subsidiaries)
Type of
Legal Registered subsidiar Ownership Registere
Company representativ Business capital (in y type d address
e RMB10,000) Designing,
Fully- manufacturing
Fangda
owned Ltd. liability Shenzhen Xiong Jianwei , and 31,000.00 Decoration
subsidiary installation of
curtain walls
Installation
Fully- and
Fangda
owned Ltd. liability Shenzhen Lin Kebin processing of 10,500.00 Automatic
subsidiary metro screen
door
Production
and
Fully-
Fangda Sino-foreign distribution of
owned Shenzhen Yang Xioazhuan USD320.00 Yide joint venture new-type
subsidiary
composite
materials
Production
joint venture
and sales of
by the
new-type
Fangda Fully- Company and
materialism USD1,200.0 New owned companies in Nanchang Yang Xioazhuan
composite 0 Material subsidiary Taiwan, Hong
materials and
Kong or
production of
Macao
curtain walls
Design,
Ltd. liability
production,
(joint venture
sales and
Fangda Fully- by the
installation of
Aluminiu owned Company and Nanchang Yang Xioazhuan 2,000.00 curtain wall
m subsidiary domestic and
aluminium
overseas
materials,
companies)
doors,
－25－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Type of
Legal Registered subsidiar Ownership Registere
Company representativ Business capital (in y type d address
e RMB10,000) windows and
sectional
materials
Fully- BODY
HK Junjia owned CORPORAT Hong Kong Investment HKD1.00 subsidiary E
Manufacturing
of
semiconductor
lighting
material and
chips; lighting
source
encapsulation;
Shenyang Controlled
Ltd. liability Shenyang Wang Shengguo developing, 20,000.00 Fangda subsidiaries
designing,
manufacturing
, engineering,
installation
and trading of
semiconductor
lighting
system
Developing of
hardware and
Ltd. liability
Fully- software,
(Sole
Kexunda owned Shenzhen Lin Kebin system 100.00 investment by
subsidiary integration,
legal person)
technical
consulting
Development
and operating
of real estate
on land of
Ltd. liability
Fully- which land
Fangda (Sole
owned Shenzhen Lin Kebin use right is 5,000.00 Property investment by
subsidiary legally
legal person)
obtained by
the Company;
property
management
Continued:
Scope of Voting Consolidate Organization code Shareholding%
Company business rights% statement Designing,
Fangda manufacturing,
19244418-2 100.00 100.00 Yes Decoration and installation
of curtain walls
Designing,
Fangda technical
75425429-3 100.00 100.00 Yes Automatic developing,
installation, and
－26－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Scope of Voting Consolidate Organization code Shareholding%
Company business rights% statement sales of PSD
system; import
& export;
installation and
processing of
PSD.
R&D, design
and production
Fangda
61929454-0 of new-type -{}-100.00 100.00 Yes Yide
composite
materials
Production and
sales of new-
type materials,
composite
materials,
production of
curtain walls,
Fangda New windows, metal
74852611-7 100.00 100.00 Yes Material structures and
components,
metal products
and
environmental
protection
materials and
products
Design,
production, sales
and installation
of curtain wall
Fangda
15830664-0 aluminium 100.00 100.00 Yes Aluminium
materials, doors,
windows and
sectional
materials
HK Junjia 30075542-000-04-12-3 Investment 100.00 100.00 Yes Manufacturing
of
semiconductor
lighting material
and chips;
lighting source
encapsulation;
Shenyang
66254891-3 developing, 64.58 64.58 Yes Fangda
designing,
manufacturing,
engineering,
installation and
trading of
semiconductor
lighting system
Computer
software and
Kexunda 58409491-9 100.00 100.00 Yes
hardware
development and
－27－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Scope of Voting Consolidate Organization code Shareholding%
Company business rights% statement sales, computer
software
development,
system
integration and
technical
consulting
Development
and operating of
real estate on
land of which
Fangda
05895223-1 land use right is 100.00 100.00 Yes Property
legally obtained
by the Company;
property
management
Continued:
Actual capital Amount for Balance of
contribution at deducting other items Minor
the end of the minority Company composing net shareholders’
period (in gain/loss in investment in equity
RMB10,000) the minority subsidiaries
interests Fangda Decoration 31,000.00
Fangda Automatic 18,377.73
Fangda Yide USD320.00
Fangda New Material USD1,200.00
Fangda Aluminium 2,000.00
HK Junjia HKD1.00
Shenyang Fangda 10,885.21 55,432,446.89 -4,276,084.22 Kexunda 100.00
Fangda Property 5,000.00
Notes:
① Companies founded or acquired by Fangda Decoration
Type of
Ownership Registered Legal
Subsidiary subsidiary Business type address representative
Installation and sales Dongguan Fully-owned
Ltd. liability Dongguan Xiong Jianwei of building curtain New Material subsidiary
walls Trusted processing of Chengdu Fully-owned
Ltd. liability Chengdu Xiong Jianwei building curtain wall
Fangda subsidiary
materials
－28－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Ltd. liability Designing, Shenyang Fully-owned (Sole manufacturing, and Shenyang Wei Yuexing
Decoration subsidiary investment by installation of curtain legal person) walls Continued:
Registere
Proportio Consolidat d capital Organizatio Business Shareholding
Subsidiar n of e (in n code scope %
y votes% statements RMB10,000
)
Developing,
designing and
sales of new
construction
material;
developing,
designing,
installation
and trading of
Dongguan
curtain walls,
New 27,280.00 56457096-5 100.00 100.00 Yes PSD systems,
Material
LED
products,
metal roof
products, and
solar-energy
products and
photo-thermal
application
products
Trusted
processing of
Chengdu
2,000.00 59024979-6 building 100.00 100.00 Yes Fangda
curtain wall
materials
Designing,
manufacturin
Shenyang
500.00 05076791-2 g, and 100.00 100.00 Yes Decoration
installation of
curtain walls
Continued:
Actual capital
Balance of other Amount for contribution at Minor
items composing deducting minority Subsidiary the end of the shareholders’
net investment gain/loss in the period (in equity
in subsidiaries minority interests RMB10,000)
Dongguan New
27,280.00
Material
Chengdu
2,000.00
Fangda
Shenyang
500.00
Decoration
② Subsidiaries controlled by Shenyang Fangda through merger of companies under the
common control
－29－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Type of
Ownership Registered Legal
Subsidiary subsidiary Business type address representative
Installation of LED Controlled
Shenzhen Woke Ltd. liability Shenzhen Wang Shengguo color curtain wall, subsidiaries
city and road lamps Continued:
Registere
Proportio Consolidat d capital Organizatio Business Shareholding
Subsidiar n of e (in n code scope %
y votes% statements RMB10,000
)
Developmen
t, design and
production
of LED
products and
Shenzhen after-sales
1,000.00 72855858-4 64.58 64.58 Yes Woke service;
installation
of LED color
curtain wall,
city and road
lamps
Continued:
Amount for Actual capital
Balance of other deducting contribution at Minor
items composing minority Subsidiary the end of the shareholders’
net investment gain/loss in the period (in equity
in subsidiaries minority RMB10,000)
interests Shenzhen
1,899.13 See note See note Woke
Note: Shenzhen Woke was a subsidiary directly controlled by Fangda Guoke. After Fangda Guoke was merged by Shenyang Fangda, the shares held were acquired by Shenyang Fangda. The company is currently handling the share transfer formalities. Before and after the merger, Shenzhen Woke is controlled by Shenyang Fangda. The minority interests of Shenyang Fangda includes the minority interests of Shenzhen Woke.
2. Operational entities of control powers generated by special purpose entities or trust operation or lease
2. Operational entities of control powers generated by special purpose entities or trust
operation or lease
3. New entities added to the consolidation and removed from the consolidation during the report period
The scope of merger is not changed in the period.
V Notes to the consolidated financial statements
－30－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
1. Monetary capital
Item Closing amount Opening amount
Foreign Exchange Foreign Exchange
RMB RMB exchange rate exchange rate
Cash: -- -- 33,975.32 -- -- 10,565.48 RMB -- -- 29,296.71 -- -- 9,340.48 HK Dollar 5,950.69 0.78623 4,678.61 1,510.76 0.81085 1,225.00 Bank
-- -- 297,145,634.33 -- -- 252,155,936.57 deposits:
RMB -- -- 296,625,709.31 -- -- 252,087,857.82 USD 10,734.32 6.0969 65,446.08 10,831.08 6.2855 68,078.75 SGD 94,989.85 4.7845 454,478.94
Other
monetary -- -- 36,697,312.32 -- -- 26,117,466.56 capital:
RMB -- -- 36,697,312.32 -- -- 26,116,643.85 USD -- -- 130.89 6.2855 822.71 Total 333,876,921.97 278,283,968.61 Notes:
① RMB12 million among the balance of bank deposit at end of year was frozen by the court for the lawsuit involved by Fangda Decoration. For details of the case please see Note VII-1.
② Balance of RMB36,697,312.32 under other monetary capital was mainly deposit for bank accepted notes and letter of guarantee, including deposit of RMB36,639,666.59 for accepted notes and guarantee letter which are not regarded as cash equivalent at preparing of cash flow statement.
II. Notes receivable
Type Closing amount Opening amount B
a
n
k
a
c
21,89c8,770.43 5,668,780.88 e
p
t
a
n
c
e
Commercial acceptance 1,970,000.00
Total 21,898,770.43 7,638,780.88
－31－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Note: Notes endorsed but not due yet amount to RMB41,756,881.52, with the top 5 notes listed as follows:
Date of
Issuer Due date Amount Notes issue
S
h
e
n
y
a
n
g
Z
h
o
n
g
y
i B a A n v k i
a a t c 2013-12-2 201i4-5-30 6,390,161.97 c o e n p t P a l n a c n e e
E
n
g
i
n
e
e
r
i
n
g
C
－32－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
o
.
,
L
t
d
.
S
h
e
n
y
a
n
g
X
B i
a n
n r
k u
f
a e
c n
2013-7-8 2014-1-8 2,061,425.41 c g
e p T
t r
a a
n d
c e
e C
o
.
,
L
t
d
.
C B h a 2013-10- i n 2014-4-30 1,000,000.00
30 n k a
a
－33－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
C c o c n e s p t t r a u n c c t e i
o
n
S
e
c
o
n
d
E
n
g
i
n
e
e
r
i
n
g
B
u
r
e
a
u
L
t
d
.
,
S
h
a
n
g
－34－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
h
a
i
B
r
a
n
c
h
S
h
e
n
y
a
n
g
Y
u
a
n
B d
a a
n k A
l
a u
c 2013-10- m
2014-4-24 1,000,000.00 c 24 i
e n
p i
t u
a m
n c I
e n
d
u
s
t
r
y
E
n
g
i
n
－35－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
e
e
r
i
n
g
C
o
.
,
L
t
d
.
S
h
e
n
y
a
n
g
Y
B u
a a
n n
k d
a
a c 2013-11- A
2014-4-28 1,000,000.00 c 29 l
e u
p m
t i
a n
n i
c u
e m
I
n
d
u
s
t
r
y
－36－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
E
n
g
i
n
e
e
r
i
n
g
C
o
.
,
L
t
d
.
11,451,587.3
Total -- -- -- 8
(2) The closing number of receivable bank acceptance increased186.68%, mainly attributable to increase of bank acceptance settlement by Fangda Automatic and Fangda Decoration. 3. Account receivable
(1) Account receivable are disclosed by categories
Closing amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Account receivable with
major individual
amount and bad debt
provision provided
individually
Account receivable for
which bad debt
1,059,935,942.75 98.00 161,204,960.82 15.21 898,730,981.93 provision is made by
group
Including: account
receivable out of the 1,059,935,942.75 98.00 161,204,960.82 15.21 898,730,981.93 consolidation
Subtotal 1,059,935,942.75 98.00 161,204,960.82 15.21 898,730,981.93 Account receivable with
minor individual
amount and bad debt 21,620,471.60 2.00 21,570,471.60 99.77 50,000.00 provision provided
individually
Total 1,081,556,414.35 100.00 182,775,432.42 16.90 898,780,981.93
－37－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Account receivable are disclosed by categories (Continued)
Opening amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Account receivable with
major individual amount
9,063,813.50 0.97 4,399,850.00 48.54 4,663,963.50 and bad debt provision
provided individually
Account receivable for
which bad debt provision 902,557,074.71 96.68 132,330,232.91 14.66 770,226,841.80 is made by group
Including: account
receivable out of the 902,557,074.71 96.68 132,330,232.91 14.66 770,226,841.80 consolidation
Subtotal 902,557,074.71 96.68 132,330,232.91 14.66 770,226,841.80 Account receivable with
minor individual amount
21,956,506.84 2.35 21,956,506.84 100.00
and bad debt provision
provided individually
Total 933,577,395.05 100.00 158,686,589.75 17.00 774,890,805.30 Notes:
① In the group, the account receivable of which bad debt provision is made through the account aging method:
Closing amount Opening amount
Age
Bad debt Bad debt Amount Proportion% Amount Proportion%
provision provision Less
than
549,013,214.34 51.80 16,472,504.90 457,699,537.55 50.71 13,730,986.12 1
year
1-2
209,253,623.01 19.74 20,925,362.29 239,346,914.90 26.52 23,934,691.50 years
2-3
135,137,295.40 12.75 40,541,188.60 40,453,779.30 4.48 12,136,133.80 years
Over
3 166,531,810.00 15.71 83,265,905.03 165,056,842.96 18.29 82,528,421.49 years
Total 1,059,935,942.75 100.00 161,204,960.82 902,557,074.71 100.00 132,330,232.91② Account receivable with minor individual amount and bad debt provision provided individually at the end of the period are listed as follows:
Remaining Bad debt Provision rate
Description Reason book value provision %
Aged over 5 years, Trade
4,578,919.79 4,578,919.79 100.00 unlike to be receivable
recovered
Litigation-related, Trade
634,619.39 634,619.39 100.00 unlikely to be receivable
recovered
Curtain wall Aged over 5 years,
3,160,003.20 3,160,003.20 100.00
project unlike to be
－38－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
payment recovered
Curtain wall Litigation-related, project 430,629.58 430,629.58 100.00 unlikely to be payment recovered
Total 8,804,171.96 8,804,171.96 100.00
Note: As of December 31, 2013, the account receivable, on which the Company has provided bad debt provisions, amount to RMB21,242,046.30. Account receivables with large bad debt provision ratios total RMB378,425.30.
(2) There is no receivable account that has been fully provided of bad debt, or with a great providing percentage, and recovered or written back in the same year, or such account with major amount.
(3) The account receivable written off this period amounts to RMB4,885,114.53, with details disclosed as follows:
Related Entity Nature Amount Reason transaction Gulf international trading
Loan 4,379,115.65 No FZE Unrecoverable
Shanghai Bading Real
Engineering
Estate Development Co., 254,096.95 No payment Unrecoverable
Ltd.
Urumqi Xiancao Industry
and Trade Ltd. (Xingjiang Loan 243,873.86 Unrecoverable No Cigarettes Factory)
4,877,086.
Total
46
Note: On April 26, 2012, the dispute over the material account USD1,414,083.27 for the PNU project undertaken by Fangda New Material, subsidiary of the Company was filed to the South China International Economic and Trade Arbitration Commission for arbitration. The file was accepted by the commission on November 9, 2012. On April 8, 2013, two parties reached an agreement under which Fangda New Material will receive USD700,000 from Gulf international trading FZE and the debt between two parties will be cancelled. By December 31, 2013, Fangda New Material has recovered the USD700,000 and RMB4,379,115.65 has been cancelled.
(4) No shareholder or affiliate holding5% or above shares with voting rights of the Company owes any account receivable to the Company at the end of period.
(5) Top 5 account receivable
Percentage in the total Entit Relationship with the
Amount Term account receivable% y Company
7,252,738.29 1-2 years 0.67 No.1 Non-affiliated party
2-3 years 2.87
31,086,362.17
－39－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Percentage in the total Entit Relationship with the
Amount Term account receivable% y Company
Less than
No.2 Non-affiliated party 3.14 33,964,082.03 1 year
Less than
No.3 Non-affiliated party 2.98 32,263,521.85 1 year
Less than
1.89 20,392,272.13 1 year
No.4 Non-affiliated party
1-2 years 1.00 10,771,394.21
Less than
No.5 Non-affiliated party 2.45 26,520,305.61 1 year
Total 162,250,676.29 15.00 IV. Prepayment
(1) Account age of prepayment
Closing amount Opening amount
Age
Proport Bad debt Proportio Bad debt Amount Amount
ion% provision n% provision Less than 1 24,093,399.4
81.30 7,097.97 19,473,027.11 84.33 4,199.34 year 7
1-2 years 2,748,471.19 9.27 166,268.27 1,177,954.16 5.10 11,310.43 2-3 years 521,179.53 1.76 34,716.20 404,448.11 1.75 31,323.93 Over 3 1,062,544.9 1,038,956.7 2,271,593.43 7.67 2,036,520.29 8.82
years 7 5 29,634,643.6 100.0 1,270,627.4 1,085,790.4 Total 23,091,949.67 100.00
2 0 1 5 (2) Top 5 prepayment entities
Relationship with
Entity Amount Term Reason the Company
Foshan Jianmei Aluminium Less than Goods not Non-affiliated party
Co., Ltd. 2,716,933.95 1 year delivered Guangdong Xingfa Less than Goods not Non-affiliated party
Aluminium Co., Ltd. 1,755,186.89 1 year delivered Dongguan Nanbo Less than Goods not Non-affiliated party
Engineering Glass Co., Ltd. 1,447,061.91 1 year delivered Wujiang Nanbo Less than Goods not Non-affiliated party
Engineering Glass Co., Ltd. 1,423,390.26 1 year delivered Guangdong Jianmei
Less than Goods not Aluminium Material Non-affiliated party 1,180,000.14
1 year delivered (Group) Co., Ltd.
Total 8,522,573.15
(3) No shareholder or affiliate holding5% or above shares with voting rights of the Company receives any prepayment from the Company at the end of period.
－40－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
5. Other receivables
(1) Other receivables are disclosed by categories
Closing amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Other receivables with
major individual
amount and bad debt 1,220,316.84 1.47 1,220,316.84 100.00
provision provided
individually
Other receivables for
which bad debt
79,642,281.33 96.15 13,343,551.16 16.75 66,298,730.17 provision is made by
group
Including: other receivables
79,642,281.33 96.15 13,343,551.16 16.75 66,298,730.17 out of the consolidation
Subtotal 79,642,281.33 96.15 13,343,551.16 16.75 66,298,730.17 Other receivables with
minor individual
amount and bad debt 1,971,822.77 2.38 1,971,822.77 100.00
provision provided
individually
Total 82,834,420.94 100.00 16,535,690.77 19.96 66,298,730.17 Other receivables are disclosed by categories (Continued)
Opening amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Other receivables with
major individual
amount and bad debt 1,220,316.84 1.68 1,220,316.84 100.00
provision provided
individually
Other receivables for
which bad debt
68,469,392.43 94.33 11,129,836.15 16.26 57,339,556.28 provision is made by
group
Including: other receivables
68,469,392.43 94.33 11,129,836.15 16.26 57,339,556.28 out of the consolidation
Subtotal 68,469,392.43 94.33 11,129,836.15 16.26 57,339,556.28 Other receivables with
minor individual
amount and bad debt 2,895,928.16 3.99 2,895,928.16 100.00
provision provided
individually
Total 72,585,637.43 100.00 15,246,081.15 21.00 57,339,556.28 Notes:
① In the group, the other receivables of which bad debt provision are made through the account aging method:
Closing amount Opening amount
Age
Proportion Bad debt Proportion Bad debt
Amount Amount
% provision % provision
－41－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Less
than
37,490,912.58 47.07 1,124,727.37 31,319,141.04 45.74 942,761.14 1
year
1-2
16,166,703.85 20.30 1,616,670.39 18,616,091.35 27.19 1,861,609.14 years
2-3
11,950,894.86 15.01 3,585,268.47 4,708,070.26 6.88 1,412,421.08 years
Over
3 14,033,770.04 17.62 7,016,884.93 13,826,089.78 20.19 6,913,044.79 years
Total 79,642,281.33 100.00 13,343,551.16 68,469,392.43 100.00 11,129,836.15② Other receivables with major individual amount and bad debt provision provided individually at the end of the period
Remaining Bad debt Provision rate
Description Reason book value provision %
Aged over 5 Receivable
1,220,316.84 1,220,316.84 100.00 years, unlike to deposit
be recovered③ Other receivables with minor individual amount and bad debt provision provided individually at the end of the period are listed as follows:
Remaining Bad debt Provision rate
Description Reason book value provision %
Prepaid Aged over 5 engineering 834,065.01 834,065.01 100.00 years, unlike to amount be recovered Aged over 5 Receivable
550,000.00 550,000.00 100.00 years, unlike to deposit
be recovered Aged over 5 Prepaid account 100,000.00 100,000.00 100.00 years, unlike to be recovered Total 1,484,065.01 1,484,065.01 100.00
Note: As of December 31, 2013, the minor other receivables, on which the Company has fully provided bad debt provisions, amount to RMB1,971,822.77.
(2) There is no receivable account that has been fully provided of bad debt, or with a great providing percentage, and recovered or written back in the same year, or such account with major amount.
(3) The account receivable written off this period amounts to RMB3,294,460.00, with details disclosed as follows:
Related Nature
Entity Amount Reason transaction
－42－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Business fee
Ma Weihua 119,318.88 Unrecoverable No borrowing
Bidding
Xing Tong 610,326.46 Unrecoverable No deposit
Business fee
Lan Wenping 154,350.00 Unrecoverable No borrowing
Business fee
Wang Xiaolin 114,012.50 Unrecoverable No borrowing
Business fee
Jin Yimin 315,707.48 Unrecoverable No borrowing
Business fee
Zhao Jun 481,368.62 Unrecoverable No borrowing
China Construction First
Division Group Labor Deposit 159,800.00 Unrecoverable No Service Company
Total -- 1,954,883.94 -- -- (4) No shareholder or affiliate holding5% or above shares with voting rights of the Company owes any other receivable to the Company at the end of period.
(5) Top 5 other receivable
Relationship Nature or
with the description Proportion Entity Amount Term
Company % Less
Zhejiang Jiayue 500,000.00 than 1 0.60 Non-affiliated
Industrial Co., year Deposit
party
Ltd. 1-2
6,898,000.00 8.33 years
Hainan
Less
GreenTown Non-affiliated
4,346,000.00 than 1 Deposit 5.25 Investment Co., party
year
Ltd.
2-3 Advancement
1,150.00
Non-affiliated years of OEM
Xin Song
party Over 3 engineering
2,688,177.61 3.25 years fees
Less
352,178.17 than 1 Advancement 0.43 Non-affiliated year of OEM
Wang Weihong
party 1-2 engineering
564,963.00 0.68 years fees
1,682,246.982-3年 2.03 Nanjing
Construction and Less
Non-affiliated
Engineering 2,421,804.00 than 1 Deposit 2.92 party
Social Deposit year
Management
－43－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Office
19,454,519.7
Total -- -- 23.49 6
VI. Inventories
(1) Details of inventories
Closing amount Opening amount
Item Remaining Depreciation Remaining Depreciation
Book value Book value book value provision book value provision
Raw
47,592,162.78 1,492,798.29 46,099,364.49 43,426,271.98 1,474,828.11 41,951,443.87 materials
Product in
5,992,333.49 5,992,333.49 6,219,310.56 6,219,310.56 process
Finished
goods in 10,246,627.50 1,984,145.11 8,262,482.39 10,455,612.27 1,984,145.11 8,471,467.16 stock
Asset formed
by
229,499,318.33 1,830,742.67 227,668,575.66 212,353,564.65 2,014,344.59 210,339,220.06 construction
contract
Low price
51,278.67 51,278.67 8,043.45 8,043.45 consumable
OEM materials 873,790.05 873,790.05 2,130,706.26 2,130,706.26 Development
139,590,027.07 13 9,590,027.07
cost
Total 433,845,537.89 5,307,686.07 428,537,851.82 274,593,509.17 5,473,317.81 269,120,191.36 Note: The closing book value of inventory increased58.00% from the open value, mainly attributable to increases in the development costs of the Fangda Town renovation project and projects in progress of Fangda Decoration.
(2) Inventory depreciation provision
Provision Decrease
Opening made in the Closing Item
amount current Write-back Write-off amount period
Raw materials 1,474,828.11 40,254.89 22,284.71 1,492,798.29 Finished goods in
1,984,145.11 1,984,145.11 stock
Asset formed by
construction 2,014,344.59 183,601.92 1,830,742.67 contract
Total 5,473,317.81 40,254.89 205,886.63 5,307,686.07 Inventory depreciation provision (Continued)
Proportion of written-back amount Basis Reason
Item in the closing balance of the
inventory item(%)
－44－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Realizable net value
Raw materials
is lower the cost
Finished goods in Realizable net value
stock is lower the cost
Predicted
Asset formed by
construction
construction contract
contract loss
Total -- X.XX --
7. Investment in affiliates
Name of Register Legal Register
Ownersh Relationsh Organizati invested ed representat Business ed
ip type ip on code entity address ive capital
Domestic
tradel
investmen
t
managemen
t;
investmen
Shenzhen t
Ganshang consultin
Joint Co., Xiong g; RMB49 Affiliated
Shenzhen 080140993 Investme Ltd. Jianming enterpris million party
nt Co., e
Ltd. managemen
t
consultin
g; equity
investmen
t; assets
managemen
t
Continued:
Proportio
n of Net Closing Total
Name of voting Closing Closing profit Shareholdi total operatin
invested rights of total total net of the ng(%) liabilitie g
entity the assets assets current s revenue
Company period(%)
Shenzhen
Ganshang
- 48,973,360. 48,973,360.
Joint 20.40 20.40 26,639.4 52 52
Investmen 8
t Co.,
－45－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Ltd.
8. Long-term share equity investment
Opening Closing Item Increase Decrease
amount amount Investment in
10,000,000.00 5,434.45 9,994,565.55 affiliates
Total 10,000,000.00 5,434.45 9,994,565.55 IX. Investment real estate
(1) Investment real estate measured at costs
Increase Decrease
Opening
Transfe
Closing Item
Transferred
amount
Provision Disposal rred to
amount from own use
own use
1. Original total book value 4,428,890.85 21,722,042.60 26,150,933.45 Houses& buildings 4,428,890.85 21,722,042.60 26,150,933.45 2. Accumulative total
depreciation and 789,385.09 165,488.15 4,725,747.70 5,680,620.94 amortization
Houses& buildings 789,385.09 165,488.15 4,725,747.70 5,680,620.94 3. Total net book value of
3,639,505.76 20,470,312.51 investment real estate
Houses& buildings 3,639,505.76 20,470,312.51 4. Total accumulative
provision for impairment to
investment real estate
Houses& buildings
5. Total book value of
3,639,505.76 20,470,312.51 investment real estate
Houses& buildings 3,639,505.76 20,470,312.51 Notes:
1. The total amortization amounts to RMB165,488.15.
②By December 31, 2013, there is no sign of impairment to theCompany’s investment real estate measured at costs.
(2) Investment real estate measured at fair value
Increase Decrease
Opening fair Closing fair Item Gain/loss caused by changes Transferred
value value in fair value to own use
158,197,488.4
1. Total costs 56,885,940.17 101,311,548.23 0
158,197,488.4
Houses& buildings 56,885,940.17 101,311,548.23 0
2. Total changes in fair value 96,568,767.93 1,639,371.55 24,740,931.09 73,467,208.39 Houses& buildings 96,568,767.93 1,639,371.55 24,740,931.09 73,467,208.39 3. Total net book value of 254,766,256.3
1,639,371.55 81,626,871.26 174,778,756.62
investment real estate 3
Houses& buildings 254,766,256.3 1,639,371.55 81,626,871.26 174,778,756.62
－46－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
3
Notes:
① Properties of RMB56,885,940.17 were transferred to self-use real-estate properties during the period, which is attributable to the renovation of Fangda Town. The transfer causes a decrease of RMB56,885,940.17 in the cost of investment real estate and a change of RMB24,740,931.09 in the fair value.
② The fair value of the investment real estate is determined based on Shenzhen TOUCHSTONE Evaluation Doc. (2013A) 12DQB No.0046 Real Estate Valuation Report issued by TOUCHSTONE.
(3) Failure to obtain the ownership certificate
By December 31, 2013, no property ownership certificate has been applied for any of the investment real estate.
(4) Transfer of real estate and change of measurement basis
① The original value of the investment real estate measured at costs increased RMB21,722,042.60 in the period, attributable to the resolution made at the
25th
meeting of the
6th
Board of Directors to transfer part of the plants in Jiangxi Nanchang Fangda Hi- Tech Park from self-use to lease.
② The investment real estate measured at fair value decreased RMB81,626,871.26 in the period, attributable to the resolution made at the
24th
meeting of the
6th
Board of Directors to transfer professional plants, plant No.2 and No.3 and single dormitory in the Fangda Town from lease to self-use.
10. Fixed assets
(1) Fixed assets
Opening Closing Item Increase Decrease
amount amount 1. Original total book
579,485,800.91 294,742,600.18 188,532,581.44 685,695,819.65 value
Houses& buildings 287,520,705.05 275,898,020.28 169,472,336.24 393,946,389.09 Mechanical
237,818,748.42 8,550,904.58 12,600,427.70 233,769,225.30 equipment
Transportation
15,786,606.33 2,377,623.56 1,001,116.61 17,163,113.28 facilities
Electronics and other
38,359,741.11 7,916,051.76 5,458,700.89 40,817,091.98 devices
Increase Provision
2. Total accumulative
222,752,425.18 23,712,510.06 38,834,133.50 207,630,801.74 depreciation:
Houses& buildings 39,324,489.23 9,912,737.43 22,633,133.21 26,604,093.45 Mechanical
154,763,867.26 6,239,181.07 10,211,050.10 150,791,998.23 equipment
Transportation
8,305,922.46 1,509,824.23 636,189.27 9,179,557.42 facilities
Electronics and other
20,358,146.23 6,050,767.33 5,353,760.92 21,055,152.64 devices
3. Total of net book 356,733,375.73 478,065,017.91
－47－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
value of fixed assets
Houses& buildings 248,196,215.82 367,342,295.64 Mechanical
83,054,881.16 82,977,227.07 equipment
Transportation
7,480,683.87 7,983,555.86 facilities
Electronics and other
18,001,594.88 19,761,939.34 devices
4. Total impairment
15,177,565.52 42,817.59 15,134,747.93 provision
Houses& buildings 1,131,563.50 1,131,563.50 Mechanical
14,046,002.02 42,817.59 14,003,184.43 equipment
Transportation
facilities
Electronics and other
devices
5. Total of the book
341,555,810.21 462,930,269.98 value of fixed assets
Houses& buildings 247,064,652.32 366,210,732.14 Mechanical
69,008,879.14 68,974,042.64 equipment
Transportation
7,480,683.87 7,983,555.86 facilities
Electronics and other
18,001,594.88 19,761,939.34 devices
Notes:
① The total amortization amounts to RMB23,712,510.06.
② The original value of transfer of construction progress into the fixed original assets amounts to RMB179,353,222.01. The original value of transfer of investment real estate into self-use real estate is RMB96,635,359.45. The original value of transfer into in fixed assets due to the renovation of Fangda Town is RMB157,077,404.36. The original value of the transfer of self-use real estate into investment real estate is RMB21,722,042.60. (2) Temporary idle fixed assets
Accumulative Impairment Net book Item Book value
depreciation provision value Houses& buildings 46,268,742.05 3,694,658.85 277,744.50 42,296,338.70 Mechanical
105,591,939.34 62,879,828.71 12,648,794.93 30,063,315.70 equipment
Transportation
358,087.84 334,758.73 23,329.11 facilities
Electronics and other
7,822,284.94 7,032,602.06 789,682.88 devices
Total 160,041,054.17 73,941,848.35 12,926,539.43 73,172,666.39 Note: Shenyang Fangda entered the liquidation procedure in the period. All related assets have been frozen and suspended for use.
(3) Fixed assets without ownership certificate
－48－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Item Reason Time
1. Houses in Urumuqi for offsetting The certificate can be obtained in Applying for
debt 2014
2. No.5 automatic screen door factory,
The certificate can be obtained in Nanchang Fangda High-tech park of Applying for
2014
Fangda Automatic
3. Houses in Dalian of Fangda The certificate can be obtained in Applying for
Decoration for offsetting debt 2014
4. Shenyang Fangda extension
Entering into liquidation
workshop
5. Shenyang Fangda dorm and
Entering into liquidation
workshop2#
6. Dinning hall and power station of
Entering into liquidation
Shenyang Fangda
7. Yuehai Office Building C 502 Historical reasons
Applying for The certificate can be obtained in 8. Canteen of Dongguan New Material
2014
9. Dormitory of Dongguan New Applying for The certificate can be obtained in Material 2014
10. Plant No.1 of Dongguan New Applying for The certificate can be obtained in Material 2014
11. Plant No.2 of Dongguan New Applying for The certificate can be obtained in Material 2014
12. Plant No.3 of Dongguan New Applying for The certificate can be obtained in Material 2014
13.R&D building of Dongguan New Applying for The certificate can be obtained in Material 2014
11. Construction in process
(1) Construction in progress
Closing amount Opening amount
Item Remaining Impairment Net book Remaining Impairment Net book book value provision value book value provision value Dongguan
Songshan Lake
Fangda
Southern 173,369,430.5 173,369,430.5 Technology 6 6 Garden
Fangda Town
reconstruction 1,701,315.00 1,701,315.00 project
Installation of
machines and 67,948.72 67,948.72 equipment
Chengdu
Fangda’s
Xinjin energy-
26,715.00 26,715.00
saving green
curtain wall
project
Decoration of
Fangda
914,126.00 914,126.00
Building 5F
and 20F
－49－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
175,138,694.2 175,138,694.2 Total 940,841.00 940,841.00
8 8 Note: The amount of construction in process at the end of the period decreased by99.46% from the beginning of the period, mainly attributable that the Dongguan Songshan Lake Fangda Southern Technology Garden project of Dongguan New Material is available for use and is transferred into fixed assets.
(2) Changes in major construction in process
Accumu
lative
Including:
Interest
Construction
O ap me on uin ng
t
Increase
Tra inn ts of
a
e
f
sr
i
sxr ee
e
tdd
s
deO crth eaer
es
c ia np ti et ra el
e
si dz
t
ic na tp erit ea sl ti z tfe hod
r
e
capi ota nl i
r
(z%aa tt
e
)i
aC mlo os uin ng t current
period
Dongguan
Songshan
Lake Fangda 173,369,430.5 4,084,802.4 177,454,232.9
Southern 6 0 6
Technology
Garden
Changes in major construction in process (Continued)
Proportion of
engineering
Construction Budget investment in the Project progress Capital source budget(%)
Dongguan Songshan
Lake Fangda Raised and self- 197,102,366.05 90.03 100.00
Southern Technology raised fund
Garden
(3) There is no sign of impairment to theCompany’s construction in process by December 31, 2013.
12. Disposal of fixed assets
Opening
Item Closing amount Reason for disposal amount
Tools and apparatus 3,761.50 Retirement Mechanical equipment 144,421.47 Retirement Other equipment 26,285.39 Retirement Transport equipment 2,829.75 Retirement Total 177,298.11
13. Intangible assets
Opening Closing Item Increase Decrease
amount amount 140,737,338.1 127,766,601.1 1. Original total book value 485,408.04 13,456,145.00
4 8
－50－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Land using rights of Fangda Town
8,543,250.00 8,543,250.00
(phase I)
Land using rights of Fangda Town
4,783,050.00 4,783,050.00
(phase III)
Land using rights of Fangda Tech
11,064,548.41 11,064,548.41 Garden on Gaoxin Road Nanchang
Shenyang Fangda land use right 42,038,791.23 42,038,791.23 Dongguan land using right 40,041,465.75 40,041,465.75 Patent and classified tech 28,052,320.89 272,567.78 129,845.00 28,195,043.67 Computer software 6,213,911.86 212,840.26 6,426,752.12 2. Total accumulative
32,831,092.16 3,920,173.92 6,038,179.19 30,713,086.89 amortization
Land using rights of Fangda Town
4,207,053.60 133,311.97 4,340,365.57
(phase I)
Land using rights of Fangda Town
1,522,604.25 87,689.25 1,610,293.50
(phase III)
Land using rights of Fangda Tech
1,666,217.46 232,595.24 1,898,812.70 Garden on Gaoxin Road Nanchang
Shenyang Fangda land use right 4,267,125.92 840,895.78 5,108,021.70 Dongguan land using right 1,668,394.50 800,829.36 2,469,223.86 Patent and classified tech 17,080,497.90 1,114,968.95 87,520.12 18,107,946.73 Computer software 2,419,198.53 709,883.37 3,129,081.90 3. Total net intangible assets 107,906,245.9
97,053,514.29 book value 8
Land using rights of Fangda Town
4,336,196.40
(phase I)
Land using rights of Fangda Town
3,260,445.75
(phase III)
Land using rights of Fangda Tech
9,398,330.95 9,165,735.71 Garden on Gaoxin Road Nanchang
Shenyang Fangda land use right 37,771,665.31 36,930,769.53 Dongguan land using right 38,373,071.25 37,572,241.89 Patent and classified tech 10,971,822.99 10,087,096.94 Computer software 3,794,713.33 3,297,670.22 4. Total impairment provision 5,525,863.77 5,525,863.77 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
5. Total book value of 102,380,382.2
91,527,650.52 intangible assets 1
Land using rights of Fangda Town
4,336,196.40
(phase I)
Land using rights of Fangda Town
3,260,445.75
(phase III)
Land using rights of Fangda Tech
9,398,330.95 9,165,735.71 Garden on Gaoxin Road Nanchang
Shenyang Fangda land use right 37,771,665.31 36,930,769.53
Dongguan land using right 38,373,071.25 37,572,241.89
－51－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Patent and classified tech 5,445,959.22 4,561,233.17 Computer software 3,794,713.33 3,297,670.22 Notes:
① The total amortization amounts to RMB3,920,173.92.
② The original value of the land use right of Fangda Town reduced RMB13,326,300.00 during this period, the accumulative amortization decreased RMB5,950,659.07 and the net value decreased RMB7,375,640.93, attributable to that the land use right is canceled with the value calculated into the development cost.
③ By December 31, 2013, the Company has no intangible asset with uncertain useful life;
④ By December 31, 2013, the Company has not land use right use as pledge or guarantee;
⑤ Shenyang Fangda, a subsidiary of the Company, entered the liquidation procedure in the period. The amortizable value RMB5,525,863.77 of non-patent technology without realizable value is fully provided for intangible assets impairment.
14. Goodwill
Closing Invested entity or Opening Closing impairment Increase Decrease
item of goodwill amount amount provision Shenzhen Woke 8,197,817.29 Fangda Yide 746,519.62 Total 8,944,336.91 Notes:
① The Company acquired the100% 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. For Shenzhen Woke was not in good business operation for successive years, impairment provision has been provided fully upon the goodwill.
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.
15. Long-term amortizable expenses
Reason for Opening Other Closing other Item Increase Amortized
amount decrease amount decrease
－52－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Epoxy
1,282,535.6 1,120,531.1
floor 162,004.52
5 3
Factory
and
dormitory
1,563,803.3 328,000.0 1,482,723.3
decoration 409,079.97
4 0 7
of Fangda
Automatic
Upgrading
of
workshop
rented by
Dismantleme Fangda
171,084.0
518,932.66 63,512.61 284,336.02 nt of the Decoratio 3
gluing plant n
Nanchang
Branch
Upgrading
of
workshop
rented by
345,939.47 138,636.40 207,303.07
Fangda
Decoratio
n
Upgrading
of
workshop
rented by
Fangda 33,696.82 33,696.82
Decoratio
n Sanhe
Branch
Lifting fee
for the
Anhui 24,000.00 12,000.00 12,000.00
SASAC
project
Renovatio
n of office
and plants
210,000.0
rented by 319,726.91 409,482.96 120,243.95
0
Chengdu
Fangda
Kingdee
after-sales
service of
75,471.70 25,157.27 50,314.43
Fangda
Group
Jinshan
factory
60,029.0 108,880.2
renovation 570,754.10 521,902.82
0 8
of Fangda
Decoratio
－53－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
n
Shanghai
Branch
4,710,860.6 622,029.0 171,084.0 3,799,354.7
Total 1,362,450.83
5 0 3 9
Note: The amortization of long-term amortizable expenses amounts to RMB1,362,450.83. 16. Differed income tax assets and differed income tax liabilities
(1) Recognized deferred income tax assets and liabilities
Item Closing amount Opening amount Deferred income tax assets:
Assets impairment provision 35,815,369.06 32,418,119.65 Deductible loss 2,365,000.74 1,230,904.81 Unrealizable gross profit 1,636,018.35 999,329.06 Deferred earning 535,832.20
Reserved expense 354,228.28 1,126,545.59 Reserved wage 459,594.93 416,485.98 Subtotal 41,166,043.56 36,191,385.09 Deferred income tax liabilities:
Gain/loss caused by changes in fair value 40,656,763.97 36,210,286.40 Subtotal 40,656,763.97 36,210,286.40 (2) Deductible temporary difference and deductable loss of unrecognized deferred income tax assets
Item Closing amount Opening amount Deductible temporary difference 58,902,435.47 58,238,046.12 Deductible loss 69,150,558.57 67,503,116.48 Total 128,052,994.04 125,741,162.60 Note: Fangda Yi, Fangda Aluminum, Shenyang Fangda, Shenzhen Woke and Shenyang Decoration may not be able to obtain adequate taxable proceeds to deduct the deferred income taxassets’ interest in the future period of write-back of deductible temporary difference.
(3) Deductible losses of the un-recognized deferred income tax asset will expire in the
following years
Year Closing amount Opening amount Notes 2013 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 20,241,373.78 20,179,820.97
2018 11,190,371.90
Total 69,150,558.57 67,503,116.48
Note: The form does not include suspension of subsidiaries in advance.
(4) Details of taxable differences and deductible differences
Item Amount
－54－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Differences in taxable items
Adjustment of gain/loss caused by changes in fair value 162,627,055.88 Subtotal 162,627,055.88 Deductible different items
Assets impairment provision 216,510,309.81 Deductible loss 9,460,002.94 Unrealizable gross profit 6,715,484.36 Deferred earning 2,261,103.48 Reserved expense 2,361,521.89 Reserved wage 3,063,966.18 Subtotal 240,372,388.66 17. Details of assets impairment provision
Consolidation Decrease
Opening Closing Item scope Provision Write-
amount Write-off amount Increase back
(1) Bad debt
175,018,461.35 33,742,863.78 8,179,574.53 200,581,750.60 provision
(2) Inventory
depreciation 5,473,317.81 40,254.89 205,886.63 5,307,686.07 provision
(3) Fixed
assets
15,177,565.52 42,817.59 15,134,747.93 impairment
provision
(4)
Intangible
assets 5,525,863.77 5,525,863.77 impairment
provision
(5) Goodwill
impairment 8,944,336.91 8,944,336.91 provision
Total 210,139,545.36 33,783,118.67 8,428,278.75 235,494,385.28 18. Other non-current assets
Opening Closing Item Increase Decrease
amount amount Prepaid house amount 15,978,789.90 15,978,789.90 Note: The increase in other non-current assets in the period is attributable to the amount repaid by the Fangda Decoration to Dalian Gaoxing Wanda Plaza Investment Co., Ltd.
19. Ownership-restricted assets
Opening
Assets Increase Decrease Closing amount amount
1. Assets used as pledge
Fangda Building (the leased
167,178,285.07 1,639,371.55 168,817,656.62
part)
－55－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Fangda Building (the part for 44,520,837.5 45,667,566.02 1,146,728.46
own use) 6 2. Assets used as security
Receivable commercial
1,970,000.00 1,970,000.00
acceptance
3. Assets with ownership
restriction due to other
reasons
Bank deposits 12,000,000.00 12,000,000.00 Total 226,815,851.09 1,639,371.55 3,116,728.46 225,338,494.18 20. Short-term borrowings
Item Closing amount Opening amount Loan by pledge 104,000,000.00
Borrowings with security and
180,000,000.00 credit
Loan by pledge 1,970,000.00 Guarantee loan 265,000,000.00
Total 369,000,000.00 181,970,000.00 Notes:
① The pledged loan RMB104 million at the end of the period is a pledged loan borrowed by the Company with Fangda Science& Technology Building pledged.
② The guarantee loan is guaranteed by the Company and Fangda New Materials. For details, see Note VI 4.
③ The increase of102.78% in the short-term borrowing at the end of the period is attributable to new borrows for increasing the Company's working capital.
21. Notes payable
Type Closing amount Opening amount Commercial acceptance 9,356,905.04 20,537,464.06 Bank acceptance 179,213,945.59 140,242,312.97 Total 188,570,850.63 160,779,777.03 Notes:
(1) Amount due in next fiscal term will be RMB188,570,850.63.
(2) Top 5 notes repayable
Date of
Receiver Due date Amount Notes issue
Shandong Xintong Bank 2013-9-3 2014-3-3 8,000,000.00
Aluminium Co., Ltd. acceptance Shandong Xintong Bank 2013-8-8 2014-2-8 6,022,171.22
Aluminium Co., Ltd. acceptance Shandong Xintong 2013-10- Bank
2014-4-23 4,560,995.00
Aluminium Co., Ltd. 23 acceptance
－56－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Shandong Xintong Bank 2013-9-26 2014-3-26 2,698,000.00
Aluminium Co., Ltd. acceptance Guangdong Xingfa Bank 2013-9-26 2014-3-26 2,232,772.96
Aluminium Co., Ltd. acceptance 23,513,939.1
Total -- -- -- 8
22. Account payable
Item Closing amount Opening amount Account repayable and engineering repayable 366,465,573.67 277,179,391.09 Construction payable 10,418,557.07 22,610,906.64 Payable installation and implementation fees 107,489,398.01 104,893,985.61 Others 4,842,611.57 7,161,748.38 Total 489,216,140.32 411,846,031.72 (1) Aging analysis
Closing amount Opening amount Age Proportion Amount Proportion% Amount
% L
e
s
s
t
h
a
207,436,018.51 42.40 282,303,495.94 68.55 n
1
y
e
a
r
1
-
2
169,841,783.38 3y4.72 86,659,648.22 21.04 e
a
r
s
－57－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
2
-
3
69,813,417.95 1y4.27 26,682,474.91 6.48 e
a
r
s
O
v
e
r
3
42,124,920.48 8.61 16,200,412.65 3.93 y
e
a
r
s
Total 489,216,140.32 100.00 411,846,031.72 100.00 (2) No shareholder or affiliate holding5% or above shares with voting rights of the Company had any account repayable from the Company at the end of period.
23. Prepayment received
Item Closing amount Opening amount Engineering payment 163,602,896.86 70,888,842.64 Material loan 1,970,928.42 6,099,951.68 Others 2,812,426.66 753,108.70 Total 168,386,251.94 77,741,903.02 (1) Aging analysis
Closing amount Opening amount Age
Amount Proportion% Amount Proportion%
－58－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
L
e
s
s
t
h
a
143,807,899.80 85.40 48,938,161.88 62.95 n
1
y
e
a
r
1
-
2
7,609,253.29 4.y52 25,398,423.43 32.67 e
a
r
s
2
-
3
14,008,996.41 8.y32
e
a
r
s
O
v
e
r
3
2,960,102.44 1.76 3,405,317.71 4.38 y
e
a
r
s
Total 168,386,251.94 100.00 77,741,903.02 100.00 (2) No shareholder or affiliate holding5% or above shares with voting rights of the Company
made any prepayment to the Company at the end of period.
－59－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(3) The116.60% increase in the prepayment received by the end of the period is attributable to additional prepayment for new products received by Fangda Decoration and Fangda Automatic this year.
24.Employees’ wage payable
Openin
Closing Item g Increase Decrease
amount amount
1. Wage, bonus, allowance and 21,567,724.5150,495,770.7144,256,100.0
27,807,395.20 subsidies 4 2 6
2. Employee welfare 5,768,171.14 5,736,106.58 32,064.56 3. Social insurance 14,007,668.00 13,870,940.05 136,727.95 Including: 1. medical insurance 3,425,376.33 3,374,314.00 51,062.33 2. Basic pension 8,980,888.11 8,909,857.39 71,030.72 3. Annuity 91,676.52 88,865.16 2,811.36 4. Unemployment
675,912.63 669,260.75 6,651.88 insurance
5. Labor injury insurance 353,904.63 350,475.45 3,429.18 6. Breeding insurance 479,909.78 478,167.30 1,742.48 4. Housing fund 3,790,847.47 3,691,239.97 99,607.50 5. Labor union budget and staff 2,377,548.0
614,845.14 885,336.56 2,107,056.59 education fund 1
174,677,302.4168,439,723.2
Total 23,945,272.55 30,182,851.80 7 2
Notes:
(1) The ending payableemployees’ wage is not delay in payment ofemployees’ wages. (2) The wage for December 2013 and annual bonus for 2013 are reserved in the balance ofemployees’ wage payable and will be paid in January to March 2014.
25. Taxes payable
Item Closing amount Opening amount VAT -1,250,348.83 -4,757,677.68 Business tax 23,221,596.65 23,400,077.35 Enterprise income tax 15,884,641.78 10,068,399.05 Personal income tax 902,435.66 444,142.16 City maintenance and construction tax 1,895,518.80 1,845,487.01 Land using tax 1,515,989.53 639,180.73 Property tax 1,477,538.33 909,940.53 Education surtax 907,151.22 955,231.71 Local education surtax 148,031.74 95,693.78 Others 137,392.89 86,103.34 Total 44,839,947.77 33,686,577.98① Note: 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.
－60－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
② The enterprise income tax payable this year is to be consolidated by the tax department.③ Taxes payable at the end of the period increased33.11% from the beginning of the year, mainly attributable to increase in the operating revenue and profit, which leads to increase in VAT and income tax.
26. Interest payable
Item Closing amount Opening amount Short-term bond interest payable 1,638,356.16 Short-term borrowing interests
689,153.75 316,201.11 payable
Total 689,153.75 1,954,557.27 Note: The payable interest at the end of the period decreased by64.74% from the beginning of the year, mainly attributable to the repayment of the short-term financing bonds in
November 2013 and corresponding accrued interest.
27. Other payables
Item Closing amount Opening amount Performance and quality deposit 20,142,316.44 20,513,800.46 Deposit 6,931,340.61 6,846,769.95 Reserved expense 6,587,792.11 7,248,198.58 Others 8,026,131.56 6,731,287.87 Total 41,687,580.72 41,340,056.86 (1) Aging analysis
Closing amount Opening amount Age Proportion
Amount Amount Proportion%%
L
e
s
s
t
h
a
16,756,489.99 40.20 9,251,480.15 22.38 n
1
y
e
a
r
－61－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
1
-
2
3,861,392.32 y9.26 21,856,687.13 52.87 e
a
r
s
2
-
3
12,385,793.89 2y9.71 1,190,000.81 2.88 e
a
r
s
O
v
e
r
3
8,683,904.52 20.83 9,041,888.77 21.87 y
e
a
r
s
Total 41,687,580.72 100.00 41,340,056.86 100.00 (2) No shareholder or affiliate holding5% or above shares with voting rights of the Company had any other repayable from the Company at the end of period.
28. Other current liabilities
Item Closing amount Opening amount Short-term debentures 200,000,000.00 Note: The phase I RMB200,000,000.00 of short-term financing bonds in 2012 has matured and been repaid in this period.
29. Other non-current liabilities
Item Closing amount Opening amount Major investment project prize
from Industry and Trade
1,966,666.70
Development Division of
Dongguan Finance Bureau
Railway transport screen door 294,436.78
－62－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
controlling system and information
transmission technology
National Industry Revitalization
and Technology Renovation Project 7,994,720.45
fund
Total 10,255,823.93
Including: Deferred earning– government subsidies
Amount
Other Closing
Ending Amount of included in Related to Item change balance
balance new subsidy non-operating assets/earning revenue
Major
investment
project prize
from Industry
and Trade
2 ,000,000.00 33,333.30 1,966,666.70 Assets-related Development
Division of
Dongguan
Finance
Bureau
Massive
production
project of air-
breathing
8 ,020,000.00 25,279.55 7,994,720.45 Assets-related double-layer
hollow glass
energy-saving
curtain call
Railway
transport
screen door
controlling
300,000.00 5,563.22 294,436.78 Assets-related system and
information
transmission
technology
Total 10,320,000.00 64,176.07 10,255,823.93
Note: (1) The Dongguan Finance Bureau Industry and Trade Development Division major subsidy project is a subsidized project not stipulated in Dongguan Financial Circular[2013] No.779. As the project has formed into long-term assets, the Company treats it as an assets- related government subsidy.
(2) The massive production project of air-breathing double-layer hollow glass energy-saving curtain wall is a subsidized project stipulated in Guangdong Financial Doc[2013] No.183. As the project has formed into long-term assets, the Company treats it as an assets-related
government subsidy.
－63－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(3) The railway transport screen door controlling system and information transmission
technology is a subsidized project stipulated in Shenzhen Tech Innovation[2013] No.242. RMB300,000 is used to purchase equipment and RMB900,000 is used to purchase materials and for travel fees. As the project has formed into long-term assets, the Company treats RMB300,000 as assets-related government subsidy and RMB900,000 as earning-related government subsidy.
30. Share capital (in 10,000 shares)
Opening Increase/decrease(+/-) Closing Item amount amount Issued new Transferred
Bonus shares Others Subtotal
shares from reserves
Total of capital
75,690.99 75,690.99 shares
Notes:
① There is no change in theCompany’s capital shares in the year.
② By December 31, 2013, the Company has 779,292 restricted shares, all of which are held by senior management natural person.
31. Capital reserve
Item Opening amount Increase Decrease Closing amount Share capital
38,238,222.48 38,238,222.48 premium
Other capital
42,061,645.16 1,108,815.63 40,952,829.53 reserves
Total 80,299,867.64 1,108,815.63 79,191,052.01 Note: Other capital servers increased RMB1,108,815.63 in this period, which is attributable to changes in the accumulative fair value due to transfer of the original value into equity for lease of Fangda Town.
32. Surplus reserves
Opening Closing Item Increase Decrease
amount amount Statutory
30,494,542.94 15,894,599.27 46,389,142.21 surplus reserves
Note: The increase in the surplus reserve is attributable to the10% provision on the
after-tax net profit of the parent according to Articles of Association of the Company.
33. Retained profit
Amount
occurred in Occurred in Item
the current previous period period
Adjustment on retained profit of previous period 230,907,879.99 211,777,968.57 Total of retained profit at beginning of year adjusted(+
for increase, - for decrease)
－64－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Retained profit adjusted at beginning of year 230,907,879.99 211,777,968.57 Plus: Net profit attributable to owners of the parent 85,676,863.78 24,948,377.20 Less: Statutory surplus reserves 15,894,599.27 5,818,465.78 Withdrawn surplus reserve
Common share dividend payable 22,540,512.87
Common share dividend converted into shares
Closing retained profit 278,149,631.63 230,907,879.99 34. Operational revenue and costs
(1) Turnover
Amount occurred in the current Occurred in previous Item
period period Major business
1,697,728,577.19 1,346,239,883.78 turnover
Other business
49,892,268.55 51,661,540.81 income
Operation cost 1,425,369,204.42 1,145,066,535.43 (2) Business segments (on industries)
Amount occurred in the current
Occurred in previous period Industry period
Turnover Operation cost Turnover Operation cost Metal
1,600,231,106.65 1,338,413,530.78 1,260,903,466.71 1,058,970,944.76 production
Railroad
97,497,470.54 74,411,698.93 83,977,888.26 60,474,460.25 industry
Light
1,358,528.81 4,238,572.08 production
Total 1,697,728,577.19 1,412,825,229.71 1,346,239,883.78 1,123,683,977.09 (3) Business segments (by regions)
Amount occurred in the current
Occurred in previous period Region period
Turnover Operation cost Turnover Operation cost Domestic 1,663,142,782.51 1,390,561,924.48 1,218,323,612.70 1,033,772,604.56 Overseas 34,585,794.68 22,263,305.23 127,916,271.08 89,911,372.53 Total 1,697,728,577.19 1,412,825,229.71 1,346,239,883.78 1,123,683,977.09 (4) Revenue from top five customers
Customer Total operating revenue Percentage in total turnover of the Company% No.1 102,920,098.22 5.89 No.2 80,919,624.45 4.63 No.3 80,906,763.16 4.63 No.4 59,901,925.25 3.43 No.5 58,457,696.28 3.34 Total 383,106,107.36 21.92
35. Business tax and surcharge
－65－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Amount occurred in the Occurred in previous Item
current period period Business tax 13,788,191.30 16,383,394.34 City maintenance and
4,071,880.14 3,229,213.03 construction tax
Property tax 1,232,548.46 1,420,866.42 Land using tax 150,753.68 160,203.19 Education surtax 2,882,345.50 1,874,597.52 Others 1,146,594.76 834,627.85 Total 23,272,313.84 23,902,902.35 Notes: See III. Tax for the calculation standard of business tax and surcharges.
36. Sales expense
Amount occurred in the Occurred in previous Item
current period period Labor costs 20,594,907.02 15,069,546.86 Freight and miscellaneous
6,061,750.15 7,060,994.29 charges
After-sales service 2,917.32 29,568.03 Travel expense 3,211,228.05 3,835,444.59 Entertainment expense 1,956,831.61 2,917,590.98 Material consumption 911,912.24 732,100.87 Office costs 1,856,349.96 1,843,898.62 Rental 975,957.59 940,454.70 Test and experiment costs 103,587.08 475,562.36 Consultant costs 629,355.08 397,084.13 Export credit insurance 39,456.00 Others 1,078,245.50 1,773,153.48 Total 37,383,041.60 35,114,854.91 37. Management expenses
Amount occurred in the Occurred in previous Item
current period period Labor costs 61,712,341.07 57,492,415.23 Depreciation and
20,496,282.99 21,703,660.11 amortization
Agencies 1,934,253.99 2,197,604.30 Tax 5,462,000.30 4,716,869.72 Maintenance costs 2,775,338.16 6,376,839.36 Water and electricity 1,552,664.57 1,777,188.22 Office expense 3,588,714.66 2,249,701.54 Travel expense 2,357,134.52 2,675,487.85R&D 9,671,242.90 4,596,146.75 Entertainment expense 1,653,162.04 1,872,551.30 Rental 3,591,131.18 2,743,677.38 Lawsuit 2,411,335.91 3,680,011.46 Material consumption 470,234.11 653,471.63
Property management fee 2,357,853.90 1,670,194.62
－66－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Others 7,220,556.96 8,272,070.77 Total 127,254,247.26 122,677,890.24 38. Financial expenses
Amount occurred in the Occurred in previous Item
current period period Interest expense 24,548,276.25 25,243,962.12 Less: Interest income 3,054,605.10 3,502,021.02 Acceptant discount 1,266,488.89 Exchange gain/loss 861,872.66 -12,022.85 Commission charges and others 753,042.58 1,775,569.62 Total 23,108,586.39 24,771,976.76 39. Assets impairment loss
Amount occurred in Occurred in previous Item
the current period period (1) Bad debt loss 33,742,863.78 18,054,107.66 (2) Inventory depreciation loss 40,254.89 6,009,784.40 (3) Fixed assets impairment loss 12,926,539.43 (4) Intangible asset impairment loss 5,525,863.77 (5) Goodwill impairment loss 8,197,817.29 Total 33,783,118.67 50,714,112.55 Note: The assets impairment loss for the current period decreased by33.39% from the last period, mainly attributable to the liquidation of Shenyang Fangda and impairment loss
provision made for goodwill generated by fixed assets, intangible assets and equity investment. 40. Income from fair value fluctuation
Source of income from Amount occurred in the Occurred in previous fluctuation of fair value current period period Investment real estate measured
16,647,859.74 12,290,834.22 at fair value
Note: The gains from change of fair value increased35.45% from last period, mainly attributable to appreciation of investment real estate properties.
41. Investment income
Amount
Occurred in Item occurred in the
previous period current period
Gains from long-term equity investment
-5,434.45
measured by equity
Gains from sellable financial assets and similar 3,448,207.99 Other investment gain (financial product gain) 306,301.37
Total 300,866.92 3,448,207.99
－67－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Note: the investment gains decreased91.27% from last period, mainly attributable to the sales of 700,000.00 tradable shares in Tianjin Global Magnetic Card Co., Ltd. 42. Non-business income
Amount occurred Amount accounted Occurred in
Item in the current into the current previous period
period accidental gain/loss Gains from disposal of fixed
154,552.62 1,082.24 154,552.62 assets
Government subsidy 1,815,855.07 6,275,756.00 1,815,855.07 Penalty income 228,295.79 365,324.04 228,295.79 Payable account not able to be
250,648.50 416,900.14 250,648.50 paid
Compensation received 190,428.00 3,920.00 190,428.00 VAT rebated into revenue 818,825.27
Others 4,137,250.99 4,754,284.64 4,137,250.99 Total 7,595,856.24 11,817,267.06 6,777,030.97 Notes:
(1) Major projects are disclosed as follows:
① Fangda Decoration recovered the revenue of RMB1,173,180.00 related to the Taiyuan traffic police engineering project.
② Fangda Decoration recovered the revenue of RMB976,240.09 related to the Shanxi Insurance engineering project.
③ Income of RMB1,763,401.44 from disposal of wastes.
(2) Government subsidy details are listed as follows:
Assets-
Amount Occurred in
related/
Item occurred in the previous Notes Earning-
current period period
related
Railway transport screen
door controlling system and
935,563.22 See Note V 29 information transmission
technology
Private enterprise and SME
Earning- Shenzhen SME development fund IT 570,000.00 450,000.00
related Service Center construction project subsidy
2012 High-quality foreign Shenzhen trade export subsidy granted Earning- Economic Trade 188,179.00
by Shenzhen Finance related and Information Commission Commission Nanchang Quality and
Nanchang High- Technology Supervision Earning-
50,000.00 Tech District Bureau well-known brand related
Financial Bureau
product prize
－68－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Major investment project
prize from Industry and Assets-
33,333.30 See Note V 29 Trade Development Division related
of Dongguan Finance Bureau
Massive production project
of air-breathing double-layer Assets-
25,279.55 See Note V 29 hollow glass energy-saving related
curtain call
Photon crystal project 1,200,000.00
High Luminance low
reduction direct plug LED 800,000.00
industrial development
Purchase of equipment for
semi-conductor lighting
650,000.00
technical development
project
Environment and energy-
500,000.00
saving projects
Graphic background
production and extension and 450,000.00
chip making
Fund for optical-electric
420,000.00
product projects
Shenzhen hi-tech industry
349,339.00
subsidy
Nanchang Hi-Tech District
Financial Bureau export 327,200.00
credit insurance subsidy
Nanchang Hi-Tech inland
262,000.00
freight subsidy
Nanchang Financial Bureau
236,700.00
2011 on-job training subsidy
Nanchang Hi-Tech 2011
184,800.00
inland freight subsidy
Shenzhen Nanshan District
science and technology 150,000.00
development fund
Nanchang Hi-Tech District
120,000.00
export subsidy
Nanchang Hi-Tech District
2011 Award for Great Tax 100,000.00
Contribution
Others 13,500.00 75,717.00
Total 1,815,855.07 6,275,756.00
43. Non-business expenses
Amount occurred Amount accounted Occurred in
Item in the current into the current previous period
period accidental gain/loss
－69－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Total of losses from disposal of
617,106.70 220,018.04 617,106.70 non-current assets
其中：Fixed assets
impairment loss 446,022.67 220,018.04
Donation 367,000.00 120,000.00 367,000.00 Penalty and overdue fine 173,744.23 99,350.01 173,744.23 Others 186,524.37 3,223,156.38 186,524.37 Total 1,344,375.30 3,662,524.43 1,344,375.30 44. Income tax expenses
Amount occurred in the Occurred in previous Item
current period period Income tax calculated according to the
19,777,942.50 11,618,150.98 law and regulations of current term
Adjustment of differed income tax -528,180.90 1,485,543.83 Total 19,249,761.60 13,103,694.81 Note: The income tax expense increased by46.90%, mainly attributable to increase in the business profit.
45. Calculation of the basic earning per share
Amount
Occurred in Item Code occurred in the
previous period current period
Net profit attributable to common share holders
P1 85,676,863.78 24,948,377.20 of the Company
Accidental gain/loss attributable to common
F 17,587,102.82 share holders of the Company 17,283,472.22
Net profit attributable to the common owners of
the PLC after deducting of non-recurring P2=P1-F 7,361,274.38 68,393,391.56
gains/losses
Influence of diluting events on net profit
attributable to common share holders of the P3
Company
Influence of diluting events on net profit
attributable to the common owners of the PLC P4
after deducting of non-recurring gains/losses
Opening share number S0 756,909,905 756,909,905 Amount of shares increased by capitalizing of
S1
common reserves or share dividend
Amount of shares increased by issuing of new
Si
shares or transforming of debt to shares
Number of months from the next month of share
increasing by issuing of new shares or Mi
transferring of debts to the end of report term
Amount of shares decreased by repurchasing of
Sj
shares in the report term
Number of months since the next month of
Mj
share decreasing to the end of report term
Amount of shares reduced Sk
Number of months in the report term M0 12 12
Weighted average of common shares issued S=S0+S1+Si*M 756,909,905 756,909,905
－70－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
outside i/M0-
Sj*Mj/M0-Sk
Add: the weighted average of common shares
increased assuming the diluting potential
X1
common shares transferred into issued common
shares
Weighted average of common shares for
X2=S+X1 756,909,905 756,909,905 calculating diluted earnings 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
Earnings per share attributable to common share
Y1=P1/S 0.11 0.03 holders of the Company
Basic earnings per share attributable to the
common owners of the PLC after deducting of Y2=P2/S 0.09 0.01 non-recurring gains/losses
Notes: There is no dilution factor in the Company; Shenyang Fangda's business has been suspended. The basic and diluted earnings per share from continuous and suspended business attributable to common shareholders are calculated after deducting the net profit of suspended business:
Amount occurred
Occurred in Calculation of earnings per share in the current
previous period period
Net profit attributable to common shareholders
85,676,863.78 24,948,377.20 of the parent company
Including: continuous operating net profit 93,408,134.64 59,427,097.73 Net profit from suspended business -7,731,270.86 -34,478,720.53 Basic earnings per share 0.11 0.03 Including: basic earnings per share from
0.12 0.08 continuous business
Basic earnings per share from suspended
-0.01 -0.05 business
Notes:
① The net profit from suspended business in 2013 includes: the net project of RMB- 12,072,513.31 of Shenyang Fangda and its subsidiaries, RMB583,874.95 of Fangda Yide and RMB-44,689.47 of Fangda Aluminium.
② The net profit from suspended business in 2012 includes: the net project of RMB- 52,244,875.27 of Shenyang Fangda and its subsidiaries, RMB583,874.95 of Fangda Yide and RMB-1,322,855.03 of Fangda Aluminium.
46. Other miscellaneous income
－71－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Amount
Occurred in Item occurred in the
previous period current period
1. Amount of gain (loss) from sellable financial assets 1,533,000.00 Less: Income tax influence of available-for-sale
383,250.00 financial assets
Net amount written into other gains and
1,398,250.00 transferred into gain/loss in previous terms
Subtotal -248,500.00 5. Others 91,831.63 Less: Income tax influence by other accounted into
22,957.91 other misc. incomes
Net amount written into other gains and
1,108,815.63
transferred into gain/loss in previous terms
Subtotal -1,108,815.63 68,873.72 Total -1,108,815.63 -179,626.28 47. Notes to cash flow statement items
(1) Other cash inflow related to operation
Amount occurred in Occurred in Item
the current period previous period Interest income 3,091,050.93 3,631,146.87 Subsidy income 12,041,679.00 2,255,756.00 Retrieving of deposits for exchange bills 174,858.62 141,419.27 Retrieving of bidding deposits 4,508,546.79 4,280,000.00 Other operating accounts 21,236,605.34 14,119,288.91 Total 41,052,740.68 24,427,611.05 (2) Other cash paid related to operation
Amount occurred in Occurred in Item
the current period previous period Sales expense 16,096,357.83 17,220,430.72 Administrative expense 39,553,659.77 40,350,093.26 Bidding deposit paid 9,952,466.34 12,009,571.37 Net draft deposit net paid 10,697,929.46 6,517,836.18 Other trades 14,449,566.74 23,815,008.98 Total 90,749,980.14 99,912,940.51 (3) Other cash received related to investment activities
Amount occurred in Occurred in Item
the current period previous period Bidding and contract deposit related to
429,055.00 4,022,500.00 construction projects
(4) Other cash paid related to investment activities
－72－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Amount occurred in Occurred in Item
the current period previous period Bidding deposit paid related to construction
1,659,058.00 2,050,000.00 projects
(5) Other cash paid related to financing
Amount occurred in Occurred in Item
the current period previous period Short-term bond financing costs 1,100,000.00 48. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
Amount occurred in the Occurred in previous Supplementary information
current period period 1. Net profit adjusted to cash flow of business
operation
Net profit 81,400,779.56 6,443,242.38 Plus: Asset impairment provision 33,783,118.67 50,714,112.55 Fixed asset and investment real estate depreciation 23,877,998.21 21,459,062.00 Amortization of intangible assets 3,920,173.92 4,557,857.66 Amortization of long-term amortizable expenses 1,362,450.83 716,916.61 Loss from disposal of fixed assets, intangible assets,
410,730.16 -910,370.11 and other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 51,823.92 67,888.91 Loss from fair value fluctuation (“-“ for gains) -16,647,859.74 -12,290,834.22 Financial expenses (“-“ for gains) 25,012,994.14 27,664,639.55 Investment losses (“-“ for gains) -300,866.92 -3,448,207.99 Decrease of deferred income tax asset (“-“ for increase) -4,974,658.47 -2,553,647.50 Increase of deferred income tax asset (“-“ for increase) 4,446,477.57 4,039,191.33 Decrease of inventory (“-“ for increase) -22,336,480.28 -16,572,487.74 Decrease of operational receivable items (“-“ for
-198,931,167.94 -127,562,194.03 increase)
Increase of operational receivable items (“-“ for
235,992,177.52 123,663,306.62 decrease)
Others -10,523,070.84 -16,726,404.65 Cash flow generated by business operations, net 156,544,620.31 59,262,071.37 2. Major investment and financing operation not
involving with cash
Debt transferred to assets
Convertible corporate bonds due within one year
Fixed assets under finance leases
3. Net change of cash and cash equivalents
Balance of cash at period end 285,237,255.38 240,167,372.86 Less: Initial balance of cash 240,167,372.86 300,177,008.78 Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents 45,069,882.52 -60,009,635.92 (2) Composition of cash and cash equivalents
－73－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Item Closing amount Opening amount 285,237,255.3 240,167,372.86 I. Cash
8
Including: Cash in stock 33,975.32 10,565.48 285,145,634.3
Bank savings can be used at any time 240,155,936.57 3
Other monetary capital can be used at
57,645.73 870.81 any time
2. Cash equivalents
Including: bond investment due within three
months
3. Balance of cash and cash equivalents at 285,237,255.3
240,167,372.86 end of term 8
(3) Adjustment of monetary capital and cash and cash equivalent
Cash and cash equivalent listed in the cash flow
Amount statement include:
Monetary capital in the end of the period 333,876,921.97 Less: Deposit of which use is limited 48,639,666.59 Add: Treasure bonds held for less than 3 months
Balance of cash and cash equivalents at end of period 285,237,255.38 (VI) Related parties and transactions
1. Major shareholders
Register Legal Organizatio Major Relatio Ownership
ed representa Business n code shareholder nship type
address tive
Shenzhen Banglin
Technologies Affiliat Shenzhe Chen Industrial
Ltd. liability 72984005-5 Development Co., ed party n Jinwu investment
Ltd.
Shenzhen Shilihe
Affiliat Shenzhe Wang Industrial
Investment Co., Ltd. liability 72984450-7 ed party n Shengguo investment
Ltd.
Shengjiu Affiliat Hong Xiong Industrial 59046683- Ltd. liability
Investment Ltd. ed party Kong Jianming investment 000-10-12-7 Major shareholders (Continued):
Registered capital Shareholding in the Voting rights in the Major shareholder
(in RMB10,000) Company% Company% Shenzhen Banglin Technologies
3,000.00 9.09 9.09 Development Co., Ltd.
Shenzhen Shilihe Investment
1,978.0992 2.36 2.36 Co., Ltd.
Shengjiu Investment Ltd. HKD1.00 3.52 3.52 Notes:
① All of the investors of Shenzhen Banglin Technology Development Co., Ltd., the
－74－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
holding shareholder of the Company, are natural persons. Among them, Chairman Xiong Jianming is holding85% of the shares, and Mr. Xiong Xi– son of Mr. Xiong Jianming, is holding15% 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.
2. Profiles of the subsidiaries
See Note IV 1.
3. Affiliates of the Company
See Note V 7.
4. Related transactions
Related guaranteed loans are listed as follows by December 31, 2013:
Beneficiary Amount Completed Guarantor Start date End date
party guaranteed or not The Fangda 50,000,000.0
2013-11-5 2014-11-5 No Company Decoration 0
The Fangda 50,000,000.0
2013-10-31 2014-10-31 No Company Decoration 0
The
Company
Fangda 50,000,000.0
Fangda 2013-10-30 2014-10-29 No Decoration 0
New
Material
The Fangda 40,000,000.0
2013-11-1 2014-10-22 No Company Decoration 0
The Fangda 42,000,000.0
2013-11-1 2014-10-28 No Company Decoration 0
The Fangda 18,000,000.0
2013-11-1 2014-9-11 No Company Decoration 0
The
Company
Fangda 15,000,000.0
Fangda 2013-9-29 2014-9-28 No Automatic 0
New
Material
VII. Contingencies
1. Contingent liabilities formed by material lawsuit or arbitration, and their influences on the
financial position
－75－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Target
Plaintiff Defender Case Court Progress amount
The 1st RMB17.07
Engineering First Wang Weihong Fangda Decoration Middle Court million and
dispute instance of Chongqing its interest
Note: In 2010, Wang Weihong sued to the
1st
Middle Court of Chongqing against Fangda Decoration– one of theCompany’s subsidiaries, claiming for payment RMB17 million project payment and interest, while Fangda Decoration claimed RMB18 million of project payment and related loss. Currently, the process of evidence challenging has completed with damage verified. The case is yet to enter the debating procedure. An amount of RMB12 million in the bank account of Fangda Decoration has been frozen by the court.
2. Pending major lawsuits
On January 2, 2003, Guangzhou Middle Court issued a civil case conciliation statement (2002)穗中法民三初字 No. 00596 to rule that the Guangzhou Yi An Square Real Estate
Development Co., Ltd. to make the engineering payment of RMB5,621,329.63 to Fangda Decoration within 15 days of the effectiveness of the conciliation statement. By December 31, 2014 , Fangda Decoration has recovered RMB1,950,000.00.
3. Contingent liabilities formed by providing of guarantee to othercompanies’ debts and their influences on financial situation
By December 31, 2013, the Company has provided loan guarantees for the following entities: Name of
Guarantee Amount Term Notes guaranteed entity
Fangda Decoration Guarantee 50,000,000.00 2013.11.5-2014.11.5 Borrowing Fangda Decoration Guarantee 50,000,000.00 2013.10.31-2014.10.31 Borrowing Fangda Decoration Guarantee 50,000,000.00 2013.10.30-2014.10.29 Borrowing Fangda Decoration Guarantee 40,000,000.00 2013.11.1-2014.10.22 Borrowing Fangda Decoration Guarantee 42,000,000.00 2013.11.1-2014.10.28 Borrowing Fangda Decoration Guarantee 18,000,000.00 2013.11.1-2014.9.11 Borrowing Fangda Automatic Guarantee 15,000,000.00 2013.9.29-2014.9.28 Borrowing Total 265,000,000.00
The Company has no other contingent events that should be disclosed by December 31, 2013. VIII. Commitments
The Company has no other commitments that should be disclosed by December 31, 2013. IX. Post-balance-sheet events
1. Notes to profit distribution in post balance sheet period
The Company held the
28th
meeting of
6th
Board of Directors on March 7, 2014 to vote for the proposal of dividend distribution for year 2013. According to the resolution of the meeting,
the Company will distribute a cash dividend of RMB0.30 (including tax) for each ten shares
－76－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
to all shareholders on the basis of 756,909,905 shares with a total amount of
RMB22,707,297.15. No dividend share or capitalization share is issued in the year.
2. Notes to other issues in post balance sheet period
The Company has no other issues in post balance sheet period that need to be disclosed on March 7, 2014 (report date approved by the Board of Directors).
X. Other material events
1. Fangda Town reconstruction project
According to Announcement “2012 Shenzhen Urban Renewal Plan The First Projects” (Draft) issued by the Shenzhen Planning and Land Resources Committee on February 2, 2012, theCompany’s Fangda Town project in Longjing, Xili, Nanshan District has been incorporated into the “2012 Shenzhen Urban Renewal Plan The First Projects” (Draft) by developed by Shenzhen Planning and Land Resources Committee.
The Nanshan Taoyuan Fangda Town Renovation Plan submitted by the Company has been principally approved by the Building and Environment Art Commission of Shenzhen Urban Planning Commission. The Company will fund the construction of the project through its wholly-owned subsidiary Fangda Property Development with a total investment of about RMB2.5 billion.
2. Assets and liabilities measured at fair value
(1) The investment real estate measured by fair value at the end of the period. If there is quotation in an active market for similar assets or in an inactive market for same or similar assets, adjust the fair value based on the quotation. The ending value amounted to
RMB174,778,756.62.
(2) Assets measured at fair value
Accumulativ
Impairme
e changes in
Gain/loss nt
fair value
caused by provided
Item Opening amount accounting Closing amount changes in in the
into the
fair value period
income
account
Investment real
16,647,859.7 91,831.6 174,778,756.6 254,766,256.33
estate 4 3 2 XI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable are disclosed by categories
Closing amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Account receivable with major
individual amount and bad debt
provision provided individually
－77－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Account receivable for which bad
623,154.11 100.00 18,694.62 3.00 604,459.49 debt provision is made by group
Including: receivable out of the
623,154.11 100.00 18,694.62 3.00 604,459.49 consolidation
Subtotal 623,154.11 100.00 18,694.62 3.00 604,459.49 Account receivable with minor
individual amount and bad debt
provision provided individually
Total 623,154.11 100.00 18,694.62 3.00 604,459.49 Account receivable are disclosed by categories (Continued)
Opening amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Account receivable with
major individual amount
and bad debt provision
provided individually
Account receivable for
which bad debt provision is 8,455,543.17 100.00 3,298,401.79 39.01 5,157,141.38 made by group
Including: receivable out of
8,455,543.17 100.00 3,298,401.79 39.01 5,157,141.38 the consolidation
Subtotal 8,455,543.17 100.00 3,298,401.79 39.01 5,157,141.38 Account receivable with
minor individual amount
and bad debt provision
provided individually
Total 8,455,543.17 100.00 3,298,401.79 39.01 5,157,141.38 Notes:
① In the group, the account receivable of which bad debt provision is made through the account aging method:
Closing amount Opening amount
Age
Bad debt Bad debt Amount Proportion% Amount Proportion%
provision provision Less
623,154.1
than 1 100.00 18,694.62 490,582.84 5.80 14,717.49 1
year
1-2 1,196,767.8
14.15 119,676.78 years 0
2-3 1,100,443.7
13.01 330,133.13 years 5
Over 3 5,667,748.7 2,833,874.3 67.04
years 8 9 623,154.1 8,455,543.1 3,298,401.7 Total 100.00 18,694.62 100.00
1 7 9 (2) There is no receivable account that has been fully provided of bad debt, or with a great providing percentage, and recovered or written back in the same year, or such account with major amount.
(3) No written-off account receivable during the period
－78－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(4) No shareholder or affiliate holding5% or above shares with voting rights of the Company owes any account receivable to the Company at the end of period.
(5) Top 5 account receivable
Percentage in the Relationship with
Entity Amount Term total account the Company
receivable% Less
Non-affiliated
Sky Solutions 105,171.00 than 1 16.88 party
year
Less
Shenzhen Aidong Non-affiliated
79,087.50 than 1 12.69 Investment party
year
Less
Shenzhen Gaojian Non-affiliated
68,979.55 than 1 11.07 Industrial Co., Ltd. party
year
Less
Shenzhen Dianlitong Non-affiliated
67,332.04 than 1 10.81 Technologies Co., Ltd. party
year
Shenzhen Less
Non-affiliated
Fuchuangtong 53,207.88 than 1 8.54 party
Technology Co., Ltd. year
Total 59.99 373,777.97
2. Other receivables
(1) Other receivables are disclosed by categories
Closing amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Other receivables with
major individual
amount and bad debt
provision provided
individually
Other receivables for
which bad debt
572,239,771.28 99.99 619,111.55 0.11 571,620,659.73 provision is made by
group
Including: receivable
1,900,854.89 0.33 619,111.55 32.57 1,281,743.34 out of the consolidation
Receivable
570,338,916.39 99.66 570,338,916.39 accounts consolidated
Subtotal 572,239,771.28 99.99 619,111.55 0.11 571,620,659.73 Other receivables with
minor individual
amount and bad debt 77,046.00 0.01 77,046.00 100.00
provision provided
individually
Total 572,316,817.28 100.00 696,157.55 0.12 571,620,659.73
Other receivables are disclosed by categories (Continued)
－79－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Opening amount
Type Proportion Bad debt Proportion
Amount Net% provision %
Other receivables with
major individual
amount and bad debt
provision provided
individually
Other receivables for
which bad debt
512,866,447.85 99.98 567,657.33 0.11 512,298,790.52 provision is made by
group
Including: receivable
2,213,985.94 0.43 567,657.33 25.64 1,646,328.61 out of the consolidation
Receivable
510,652,461.91 99.55 510,652,461.91 accounts consolidated
Subtotal 512,866,447.85 99.98 567,657.33 0.11 512,298,790.52 Other receivables with
minor individual
amount and bad debt 77,046.00 0.02 77,046.00 100.00
provision provided
individually
Total 512,943,493.85 100.00 644,703.33 0.13 512,298,790.52 Notes:
① In the group, the other receivables of which bad debt provision are made through the account aging method:
Closing amount Opening amount
Age
Bad debt Bad debt Amount Proportion% Amount Proportion%
provision provision Less than
495,648.00 26.08 14,869.44 953,182.40 43.05 28,595.47 1 year
1-2 years 144,403.35 7.60 14,440.34 203,000.00 9.17 20,300.00 2-3 years 203,000.00 10.68 60,900.00 50,699.54 2.29 15,209.86 Over 3
1,057,803.5 1,007,104.0
55.64 528,901.77 45.49 503,552.00 years 4 0
1,900,854.8 2,213,985.9
Total 100.00 619,111.55 100.00 567,657.33 9 4
② Other receivables with minor individual amount and bad debt provision provided
individually
Remaining Bad debt Provision rate
Description Reason book value provision %
Unlikely to Trade receivable 44,546.00 44,546.00 100.00
recover Engineering Unlikely to 24,000.00 24,000.00 100.00
receivables recover Unlikely to Receivable deposit 4,500.00 4,500.00 100.00
recover Engineering Unlikely to 4,000.00 4,000.00 100.00
receivables recover
Total 77,046.00 77,046.00 100.00
－80－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
(2) There is no receivable account that has been fully provided of bad debt, or with a great providing percentage, and recovered or written back in the same year, or such account with major amount.
(3) No other receivable is written off in the current period.
(4) No shareholder holding5% or above shares with voting rights of the Company owes any other receivable to the Company at the end of period.
(5) Top 5 other receivable
Relationship Nature or
Percentage in with the description
Entity Amount Term the total other Company
receivables% Less
Fangda
Affiliated party 297,383,545.30 than 1 Trades 51.96 Property
year
Less
Fangda
Affiliated party 223,254,619.46 than 1 Trades 39.01 Decoration
year
Less
Affiliated party 3,230.28 than 1 Trades
year
1-2
Affiliated party 6,529.28 Trades
HK Junjia years
2-3
Affiliated party 49,352.88 Trades 0.01 years
Over 3
Affiliated party 30,330,898.93 Trades 5.30 years
Less
Kexunda Affiliated party 12,295,215.27 than 1 Trades 2.15 year
2-3
Affiliated party 6,674,389.28 Trades 1.17 Shenyang years
Fangda Over 3
Affiliated party 232,382.30 Trades 0.04 years
Total -- 570,230,162.98 -- -- 99.64 (6) Nature and description of major other receivables
Entity Amount Nature or description Shenzhen Longevity Pharmaceutical Co., Ltd. 984,375.00 Building compensation (7) Receivables from affiliates
Percentage in the total other Relationship with the
Entity Amount receivables% Company
Fangda
Affiliated party 223,254,619.46 39.01 Decoration
HK Junhjia Affiliated party 30,390,011.37 5.31
－81－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Shenyang
Affiliated party 6,906,771.58 1.21 Fangda
Kexunda Affiliated party 12,295,215.27 2.15 Shenzhen
Affiliated party 108,753.41 0.02 Woke
Fangda
Affiliated party 297,383,545.30 51.96 Property
Total -- 570,338,916.39 99.66 3. Long-term share equity investment
－82－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Notes to
Proporti inconsisten
on of ce between Cash Provisi
Name of Audit
Shareholdi voting
the dividen Investment Ending Closing
ng in the rights in
Impairment on made
invested metho Change shareholdin d in cost balance balance invested the provision in this
entity d g and the entity(%) invested
period
entity
voting period(%) right
proportion
①
Investment
in
subsidiari
es
Fangda Cost 305,000,000. 305,000,000. 305,000,000.
98.39 98.39
Decoration 00 00 00
Fangda Cost 19,800,000.0 19,800,000.0 19,800,000.0 19,800,000.
99.00 99.00
Aluminium 0 0 0 00
Fangda Yide Cost 19,907,760.0 19,907,760.0 19,907,760.0 19,907,760.
75.00 75.00
0 0 0 00
HK Junhjia Cost
10,600.00 10,600.00 10,600.00 100.00 100.00 10,600.00
Fangda Cost 170,385,071. 170,385,071. 170,385,071.
94.08 94.08
Automatic 73 73 73
Fangda New Cost 74,496,600.0 74,496,600.0 74,496,600.0
75.00 75.00
Material 0 0 0
Shenyang Cost 109,560,000. 108,852,073. 108,852,073.
64.58 64.58
Fangda 00 85 85
Kexunda Cost
1,000,000.00 1,000,000.00 1,000,000.00 100.00 100.00
Fangda Cost
50,000,000.0 10,000,000.0 40,000,000. 50,000,000.0
100.00 100.00
Property
0 0 00 0
②
Investment
in
affiliates
－83－
China Fangda Group Co., Ltd.
Notes to Financial Statements
2013 (Unless otherwise stated, all the amounts are nominated in RMB)
Shenzhen
Ganshang
Equit 10,000,000.0
Joint 9,994,565.55 9,994,565.55 20.40 20.40
y 0
Investment
Co., Ltd.
Total 760,160,031.73 709,452,105.58 49,994,565.55 759,446,671.13 39,718,360.00
－84－
方大集团股份有限公司
财务报表附注
2013年度（除特别注明外，金额单位为人民币元）
4. Operational revenue and costs
(1) Turnover
Amount occurred in the current Occurred in previous Item
period period Major business
turnover
Other business
45,659,921.07 46,185,831.72 income
Operation cost 10,980,932.52 11,267,937.63 (2) Business segments (on industries)
Amount occurred in the current period Occurred in previous period Industry
Turnover Operation cost Turnover Operation cost House lease 45,659,921.07 10,980,932.52 46,185,831.72 11,267,937.63 (4) Business segments (by regions)
Amount occurred in the current period Occurred in previous period Region
Turnover Operation cost Turnover Operation cost Domestic 45,659,921.07 10,980,932.52 46,185,831.72 11,267,937.63 (5) Revenue from top five customers
Customer Total operating revenue Percentage in total turnover of the Company% No.1 7,903,917.72 17.31 No.2 7,828,181.00 17.14 No.3 1,835,584.20 4.02 No.4 987,064.20 2.16 No.5 980,786.91 2.15 Total 19,535,534.03 42.78 5. Investment income
Amount Occurred in Item occurred in the previous current period period Gains from long-term equity investment measured by
3 9,356,000.00 costs
Gains from long-term equity investment measured by
-5,434.45
equity
Gains from sellable financial assets and similar 4,548,207.99 Total -5,434.45 43,904,207.99 6. Supplementary data of cash flow statement
Amount occurred in Occurred in previous Supplementary information
the current period period 1. Net profit adjusted to cash flow of business
operation
－85－
方大集团股份有限公司
财务报表附注
2013年度（除特别注明外，金额单位为人民币元）
Net profit 158,945,992.66 58,184,657.79 Plus: Asset impairment provision -3,228,252.95 326,187.02 Fixed asset and investment real estate depreciation 3,544,338.93 2,768,825.10 Amortization of intangible assets 633,639.50 658,245.20 Amortization of long-term amortizable expenses 25,157.27
Loss from disposal of fixed assets, intangible assets,
-191,838,123.97 -6,525.64 and other long-term assets (“-“ for gains)
Loss from fixed asset discard (“-“ for gains) 36,756.07 67,888.91 Loss from fair value fluctuation (“-“ for gains) -16,647,859.74 -13,791,134.22 Financial expenses (“-“ for gains) 19,221,420.48 14,606,321.17 Investment losses (“-“ for gains) 5,434.45 -43,904,207.99 Decrease of deferred income tax asset (“-“ for increase) -9,216.25 2,082,082.91 Increase of deferred income tax asset (“-“ for increase) 52,405,087.86 4,450,464.09 Decrease of inventory (“-“ for increase)
Decrease of operational receivable items (“-“ for
247,913,465.21 -246,906,847.34 increase)
Increase of operational receivable items (“-“ for
109,065,053.78 17,207,519.64 decrease)
Others
Cash flow generated by business operations, net 380,072,893.30 -204,256,523.36 2. Major investment and financing operation not
involving with cash
Debt transferred to assets
Convertible corporate bonds due within one year
Fixed assets under finance leases
3. Net change of cash and cash equivalents
Balance of cash at period end 67,973,808.76 25,540,604.84 Less: Initial balance of cash 25,540,604.84 24,337,261.80 Add: Ending balance of cash equivalents
Less: Ending balance of cash equivalents
Net increase in cash and cash equivalents 42,433,203.92 1,203,343.04 XII. Supplementary Materials
1. Detailed accidental gain/loss
Amount occurred in the Item
current period Gain/loss of non-current assets -462,554.08 Government subsidies accounted into current gain/loss account, other than those
closely related to theCompany’s common business, comply with the national 1,815,855.07 policy and continues to enjoy at certain fixed rate or amount.
Capital using expense charged to non-financial enterprises 2,149,420.09 Gain/loss from change of fair value of investment property measured at fair value
16,647,859.74 in follow-up measurement
Gain from entrusted investment or assets management 306,301.37 Other non-business income and expenditures other than the above 1,929,934.59 Total non-recurring gain and loss 22,386,816.78 Less: Influence of non-recurring gain and loss on income tax 5,177,842.87 Net non-recurring gain and loss 17,208,973.91 Less: Influence of non-recurring attributable to minority shareholders (after-tax) -74,498.31 Non-recurring gain/loss attributable to common share holders of the Company 17,283,472.22
－86－
方大集团股份有限公司
财务报表附注
2013年度（除特别注明外，金额单位为人民币元）
2. Net income on asset ratio and earnings per share
Weighted average Earnings per share
net income/asset
Profit of the report period Basic earnings per Diluted earnings ratio(%)
share per share Net profit attributable to common
7.61% 0.11
shareholders of the Company
Net profit attributable to the common
owners of the PLC after deducting of non- 6.07% 0.09
recurring gains/losses
The calculation process of weighted average net income/asset ratio is shown as follows: Item Code Report period Net profit attributable to common share holders of the Company P1 85,676,863.78 Accidental gain/loss attributable to common share holders of the
F 17,283,472.22 Company
Net profit attributable to the common owners of the PLC after
P2=P1-F 68,393,391.56 deducting of non-recurring gains/losses
Initial net profit attributable to common shareholders of the
1,098,612,195.5 E0
Company 7 Net assets attributable to common shareholders of the Company
Ei
after new share issue or conversion of bonds into shares
Number of months from the next month of share increasing by
Mi
issuing of new assets to the end of report term
Net assets attributable to common shareholders of the Company
decreased due to repurchase or cash dividend during the report Ej 22,540,512.87 period
Number of months from the next month of share increasing by
Mj 8.00 issuing of decreased assets to the end of report term
Change in net assets caused by other matters Ek -1,108,815.63 Number of months from the next month of other net assets
Mk
changes to the end of report term
Number of months in the report term M0 12 Ending net assets attributable to common shareholders of the
1,160,639,730.8 E1
Company 5E2=E0+P1/2+Ei*M
Weighted average net assets attributable to common shareholders i/M0-
1,126,423,618.8 of the Company Ej*Mj/M0+Ek*M 8 k/M0
Weighted average net asset ratio attributable to common
Y1=P1/E2 7.61% shareholders of the Company
Weighted average assets ratio attributable to the common owners
Y2=P2/E2 6.07% of the Company after deducting of non-recurring gains/losses
XIII. Approval of financial statements
The financial statements and notes are approved at the
28th
meeting of the
6th
Board of Directors held on March 7, 2014.
－87－
方大集团股份有限公司
财务报表附注
2013年度（除特别注明外，金额单位为人民币元）
China Fangda Group Co., Ltd.
March 7, 2014
－88－