China Fangda Group Co., Ltd. 2015 Annual Report China Fangda Group Co., Ltd.
2015 Annual Report
April 2016
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 1 Important Statement, Table of Contents and Definitions The members of the Board and the Company guarantee that the announcement is free from any false information, misleading statement or material omission and are jointly and severally liable for theinformation‟s truthfulness, accuracy and integrity.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief Financial Officer, and Mr. Chen Yonggang, the manager of accounting department declare: the Financial Report carried in this report is authentic and completed.
Directors other than the following ones have attended the Board meeting to review the annual report.
|||||
|-|-|-|-|
|Name of absent director|Position of absent director|Reason|Name of proxy|
|Deng Lei|Independent director|Business engagement|Guo Wanda|

 The Company has specified market, management and production and operation risks in this report. Please review the potential risks and measures mentioned in the discussion and analysis of future development in IV. Management Discussion and Analysis.
The Board meeting reviewed and approved the profit distribution preplan: distributing cash dividend of RMB1 for each ten shares to all shareholders on
the basis of all shares of the Company on 31.12.15 and no dividend share is
issued to shareholders. No reserve is capitalized.
China Fangda Group Co., Ltd. 2015 Annual Report Table of Contents
Chapter 1 Important Statement, Table of Contents and Definitions.........................................................................................................2 Charter 2 About the Company and Financial Highlights .........................................................................................................................6 Chapter 3 Business Introduction ............................................................................................................................................................ 11 Chapter 4 Management Discussion and Analysis .................................................................................................................................. 14 Chapter 5 Significant Events ................................................................................................................................................................. 29 Chapter 6 Changes in Share Capital and Shareholders .......................................................................................................................... 41 Chapter 7 Preferred Shares .................................................................................................................................................................... 47 Chapter 8 Particulars about the Directors, Supervisors, Senior Management and Employees .............................................................. 48 Chapter 9 Corporate Governance .......................................................................................................................................................... 54 Chapter 10 Financial Statements ........................................................................................................................................................... 63 Chapter 11 Documents for Reference .................................................................................................................................................. 180
China Fangda Group Co., Ltd. 2015 Annual Report Definitions
||||
|-|-|-|
||Refers||
|Terms||Description|
||to||
||Refers||
|Fangda Group, company, the Company||China Fangda Group Co., Ltd.|
||to||
||Refers||
|Articles of Association||Articles of Association of China Fangda Group Co., Ltd.|
||to||
||Refers||
|Meeting of shareholders||Meetings of shareholders of China Fangda Group Co., Ltd.|
||to||
||Refers||
|Board of Directors||Board of Directors of China Fangda Group Co., Ltd.|
||to||
||Refers||
|Supervisory Committee||Supervisory Committee of China Fangda Group Co., Ltd.|
||to||
||Refers||
|Banglin Co.||Shenzhen Banglin Technologies Development Co., Ltd.|
||to||
||Refers||
|Shilihe Co.||Shenzhen Shilihe Investment Co., Ltd.|
||to||
||Refers||
|Shengjiu Co.||Shengjiu Investment Ltd.|
||to||
||Refers|Formally Shenzhen Fangda Decoration Engineering Co., Ltd., now|
|Fangda Jianke, Fangda Decoration|||
||to|renamed as Shenzhen Fangda Jianke Group Co., Ltd.|
||Refers||
|Fangda Automatic||Shenzhen Fangda Automation System Co., Ltd.|
||to||
||Refers||
|Fangda New Material||Fangda New Materials (Jiangxi) Co., Ltd.|
||to||
||Refers||
|Fangda New Resource||Shenzhen Fangda New Energy Co., Ltd.|
||to||
||Refers||
|Fang SOZN||Guangdong Fangda SOZN Lighting Co., Ltd.|
||to||
||Refers||
|Shenyang Fangda||Shenyang Fangda Semi-conductor Lighting Co., Ltd.|
||to||
||Refers||
|Shenzhen Woke||Shenzhen Woke Semi-conductor Lighting Co., Ltd.|
||to||
|Hong Kong Junjia|Refers|Hong Kong Junjia Group Co., Ltd.|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
||to||
||Refers||
|Fangda Aluminium||Jiangxi Fangda New Type Aluminum Co., Ltd.|
||to||
||Refers||
|Dongguan Fangda New Material||Dongguan Fangda New Material Co., Ltd.|
||to||
||Refers||
|Kexunda Co.||Shenzhen Kexunda Software Co., Ltd.|
||to||
||Refers||
|Fangda Property||Shenzhen Fangda Property Development Co., Ltd.|
||to||
||Refers|Formerly Chengdu Fangda New Material Co., Ltd, now renamed as|
|Chengdu Fangda Jianke|||
||to|Chengdu Fangda Construction Technology Co., Ltd.|
||Refers||
|Shihui International||Shihui International Holding Co., Ltd.|
||to||
||Refers||
|Shenyang Decoration||Fangda Decoration Engineering (Shenyang) Co., Ltd.|
||to||
||Refers||
|CSRC||China Securities Regulatory Commission|
||to||
||Refers||
|SZSE||Shenzhen Stock Exchange|
||to||

China Fangda Group Co., Ltd. 2015 Annual Report Charter 2 About the Company and Financial Highlights
1. Company profiles
|||||
|-|-|-|-|
|Stock ID|Fangda Group, Fangda B|Stock code|000055、200055|
|Modified stock ID (if any)|None|||
|Stock Exchange|Shenzhen Stock Exchange|||
|Chinese name|China Fangda Group Co., Ltd.|||
|Chinese abbreviation|Fangda Group|||
|English name (if any)|CHINA FANGDA GROUP CO., LTD.|||
|English abbreviation (if any)|CFGC|||
|Legal representative|Xiong Jianming|||
|Registered address|Fangda Building, Kejinan 12th Avenue, High-tech Zone, Shenzhen, PR China.|||
|Zip code|518057|||
|Office address|20F, Fangda Building, Kejinan 12th Avenue, High-tech Zone, Shenzhen, PR China.|||
|Zip code|518057|||
|Website|http://www.fangda.com|||
|Email|fd@fangda.com|||

2. Contacts and liaisons
||||
|-|-|-|
||Secretary of the Board|Representative of Stock Affairs|
|Name|Zhou Zhigang|Guo Linchen|
||20F, Fangda Building, Kejinan 12th|20F, Fangda Building, Kejinan 12th|
|Address|||
||Avenue, Hi-Tech Zone, Shenzhen|Avenue, Hi-Tech Zone, Shenzhen|
|Tel.|86(755) 26788571 ext. 6622|86(755) 26788571 ext. 6622|
|Fax|86(755)26788353|86(755)26788353|
|Email|zqb@fangda.com|zqb@fangda.com|

3. Information disclosure and inquiring
|||
|-|-|
||China Securities Journal, Security Times, Shanghai Securities Daily, Hong|
|Press medias of information disclosure||
||Kong Commercial Daily|
|Website assigned by CSRC to release the online||
||http://www.cninfo.com.cn|
|reports||

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Place for information inquiry|Secretarial Office of the Board|

4. Registration changes
|||
|-|-|
|Organization code|19244858-9|
|Changes in main businesses since the||
||None|
|listing of the Company||
||In 1996, the Company listed it’s A and B shares and the controlling shareholder is|
||Shenzhen Fangda Group Co., Ltd. On August 25, 2000, the controlling shareholder|
|Changes in the controlling shareholders (if|changed its name into Shenzhen Fangda Economic Development Co., Ltd. On July 5,|
|any)|2002, the controlling shareholder changed into Shenzhen Banglin Technologies|
||Development Co., Ltd. By the end of this reporting period, the controlling shareholder|
||remains the Shenzhen Banglin Technologies Development Co., Ltd..|

5. Other information
Public accountants employed by the Company
|||
|-|-|
|Public accountants|Grant Thornton (special general partner)|
|Address|5th Floor, Scitech Place, 22 Jianguomen Wai Avenue, Chaoyang District, Beijing, China|
|Signing accountant names|Xie Peiren, Hu Gaosheng|

Sponsor engaged by the Company to perform continued supervision and guide during the reporting period□ Applicable√ Inapplicable
Financial advisor engaged by the Company to perform continued supervision and guide during the reporting period
□ Applicable√ Inapplicable
6. Financial Highlight
The Company retroactively adjusts or restates financial statistics of the previous years because of changes in account policies and correction of accounting errors.
□ Yes√ No
||||||
|-|-|-|-|-|
||2015|2014|Increase/decrease|2013|
|Turnover (yuan)|2,550,467,494.78|1,938,324,435.51|31.58%|1,747,620,845.74|
|Net profit attributable to|107,272,369.77|96,998,429.76|||
|shareholders of the listed company|||10.59%|85,676,863.78|
|(yuan)|||||
|Net profit attributable to the|||||
|shareholders of the listed company|||||
||29,070,293.64|69,068,577.10|-57.91%|68,393,391.56|
|and after deducting of|||||
|non-recurring gain/loss (RMB)|||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|Net cash flow generated by|-360,115,114.04|-557,893,929.44|||
|||||156,544,620.31|
|business operation (RMB)|||||
|Basic earnings per share|0.14|0.13|||
||||7.69%|0.11|
|(yuan/share)|||||
|Diluted Earnings per share|0.14|0.13|||
||||7.69%|0.11|
|(yuan/share)|||||
|Weighted average net income/asset|||||
||8.42%|8.14%|0.28%|7.61%|
|ratio|||||
||||Increase/decrease from||
||End of 2015|End of 2014||End of 2013|
||||the end of last year||
|Total asset (RMB)|4,464,147,811.40|3,662,719,900.41|21.88%|2,599,557,542.57|
|Net profit attributable to the|1,319,496,334.84|1,234,930,863.46|||
|shareholders of the listed company|||6.85%|1,160,639,730.85|
|(RMB)|||||

7. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profits and assets in financial statements disclosed according to the international and Chinese account standards
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders of the||Net profit attributable to the shareholders of the||
||listed company||listed company||
||This period|Last period|Closing amount|Opening amount|
|On Chinese accounting|107,272,369.77|96,998,429.76|1,319,496,334.84|1,234,930,863.46|
|standards|||||
|Items and amounts adjusted according International Accounting Standards|||||
|On international accounting|107,272,369.77|96,998,429.76|1,324,259,733.08|1,239,694,261.70|
|standards|||||

2. Differences in net profits and assets in financial statements disclosed according to the overseas and Chinese account standards
□ Applicable√ Inapplicable
There is no difference in net profits and assets in financial statements disclosed according to the international and Chinese account standards during the report period.
3. Explanation of the differences in accounting data under domestic and foreign accounting standards
√ Applicable□ Inapplicable
China Fangda Group Co., Ltd. 2015 Annual Report Net assets attributable to the listedcompany’s shareholders calculated according to the IAS is RMB4,763,398.24 higher than that calculated according to the domestic accounting standards, mainly attributable to the
capitalization of borrow expenses before the domestic Enterprise Accounting Standard was implemented on January 1, 2007.
8. Financial highlights by quarters
In RMB
||||||
|-|-|-|-|-|
||Q1|Q2|Q3|Q4|
|Turnover|478,296,193.16|671,819,330.37|692,471,803.42|707,880,167.83|
|Net profit attributable to the|||||
||15,504,344.70|35,813,304.17|20,237,940.89|35,716,780.01|
|shareholders of the listed company|||||
|Net profit attributable to the|||||
|shareholders of the listed company|||||
||14,487,216.74|20,999,835.66|543,165.95|-6,959,924.71|
|and after deducting of|||||
|non-recurring gain/loss|||||
|Cash flow generated by business|||||
||-235,696,168.76|-39,015,902.43|-89,274,391.77|3,871,348.92|
|operations, net|||||

Where there is difference between the above-mentioned financial data or sum and related financial data in quarter report and interim report disclosed by the Company
□ Yes√ No
9. Accidental gain/loss item and amount
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Items|2015|2014|2013|Notes|
|Non-current asset disposal gain/loss|-522,948.72||||
|(including the write-off part for which assets||-24,398.43|-462,554.08||
|impairment provision is made)|||||
|Subsidies accounted into the current income|2,246,386.84||||
|account (except the government subsidy|||||
|closely related to the enterprise’s business||2,340,175.75|1,815,855.07||
|and based on unified national standard|||||
|quota)|||||
|Capital using expense charged to|||||
|non-financial enterprises and accounted into||3,649,313.12|2,149,420.09||
|the current income account|||||
|Gain from entrusted investment or assets|250,897.54||||
|||2,144,844.80|306,301.37||
|management|||||
|Gain/loss from change of fair value of|4,341,316.92|-2,852,885.00|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|transactional financial asset and liabilities,|||||
|and investment gains from disposal of|||||
|transactional financial assets and liabilities|||||
|and sellable financial assets, other than valid|||||
|period value instruments related to the|||||
|Company’s common businesses|||||
|Gain/loss from change of fair value of|85,793,780.49||||
|investment property measured at fair value||34,897,632.10|16,647,859.74||
|in follow-up measurement|||||
|Other non-business income and expenditures|7,624,429.39||||
|||-3,671,724.03|1,929,934.59||
|other than the above|||||
|Less: Influenced amount of income tax|20,963,417.56|9,526,862.57|5,177,842.87||
|Influenced amount of minority|568,368.77||||
|||-973,756.92|-74,498.31||
|shareholders’ equity (after-tax)|||||
|Total|78,202,076.13|27,929,852.66|17,283,472.22|--|

No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 3 Business Introduction
1. Major businesses of the Company during the report period
Headquartered in Nanshan District, Shenzhen, the Company is the first private company listed in China. The shares were firstly listed in Shenzhen Stock Exchange on November 29, 2015. Currently, three major business subsidiaries of the Company are national high-tech enterprises with modern production bases in Shenzhen, Beijing, Shanghai, Chengdu, Shengyang, Nanchang, Dongguan and Foshan. The Company was engaged in the following businesses in the report period.
1. Curtain wall system and material industry: The Company is a pioneer and first listed company in this industry. Over the past more than 20 years, the Company has undertaken hundreds of large projects and received the highest award in the industry China Construction Luban Award and Zhan Tianyou Civil Engineering Award for many times. The Company has also received nearly 100 provincial and above awards. The Company ranks among the top 5 players in the globe in terms of the market share of high-end energy-saving curtain walls. The Company has a strong technology lead in the industry with hundreds of patents. The Company also took part in the preparation of more than 10 national or industry standards including the Public Construction Energy Saving Design Standard, making 9 records among Chinese enterprises.
2. Rail transport equipment industry: The Company has developed rail transport screen door systems with independent intellectual property rights. The Company also prepared the first Rail Transport Station Screen Door Standard. Currently, the screen door systems have been used in 23 cities, ranking No.1 in China in terms of the market share. The Company is also the largest supplier of screen doors in the world.
3. New Energy industry: The solar PV power generation industry is largely supported by the government. The Company is one of the first enterprises that obtain the independent intellectual property rights in solar PV system design, production and integration. In 2002, the Company built the first integrated solar PV building project. Currently, the Company has signed solar PV power plant project agreement with an installation capacity of 1.1GW.
4. Real estate industry: the Company has invested RMB2.5 billion to build the Fangda Town. As a high-end industryR&D headquarters, the building integrates office, commercial and recreation functions and will become a landmark in Shenzhen. The project has received the pre-sales certification in the report period.
Read Management Discussion and Analysis for details about theCompany’s businesses.
2. Major assets change
1. Major assets change
|||
|-|-|
|Main assets|Major change|
|Equity assets|None|
|Fixed assets|None|

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Intangible assets|None|
|Construction in process|Increased by RMB14.7927, due to the increased investment in PV power plants|
|Investment real estate|Increased by 48.19%, due to increase in leased houses and change in the fair value|

 2. Major foreign assets
□ Applicable√ Inapplicable
3 Core Competitiveness Analysis
(1) Curtain wall system and material
1. Expertise and brand competitiveness
In response to the national call for energy saving and emission reduction, the Company has aggressively develop solar electric and optimal and energy-saving low-carbon curtain walls, developing a series of domestic and global leading solar and energy-saving curtain wall products. The Company owns 385 curtain wall and material patents (including 25 invention patents) and one software copyright, ranking top among domestic peers. It has achieved many firsts in the industry and created incomparable brand equity, making it an optimal choice in the domestic high-end curtain wall and material market. FANGDA is a nationwide well-known trademark in China.
2. Focusing on the high-end market to edge out competitors
Amid the fierce market competition, the Company has focused on the high-end energy-saving curtain wall market and technical integration to improve high-end project quality. Moreover, it has focused resources on high-end curtain wall engineering and won several Luban awards, Zhan Tianyou Civil Engineering awards and Classic Construction for the
50th
Anniversary of the Foundation of thePeople’s Republic of China, High-Quality Construction, White Magnolia Prize and Customer Satisfactory Engineering and the title of “Top 10 Competitive Chinese Curtain Wall Provider”. The Company has build a leading brand and created a clear edge in the high-end curtain wall market.
3. Well-developed industry base landscape
Thanks to continued investment in facilities, the Company has established a national business landscape with Shenzhen as the headquarters, Dongguan Songshanhu as the base in the south, Beijing in the north, Chengdu in the southwest and Shanghai and Nanchang in the east. The Dongguan Songshanhu and Nanchang bases are the largest and most advanced curtain wall system and material production bases in China and across the world, fueling the Company to increase its market share and competitiveness.
4. General solutions
The Company has integrated the design, production, management and engineering of curtain wall systems to enjoy technological, cost, quality and service advantages.
(2) Rail transport equipment business
1. National development strategy
In 2015, the rail transport equipment is listed in the Made in China 2025 plan as a key industry. The
13th
Five-Year Plan specifies that the rail construction will be reinforced to promote the advanced railway equipment
manufacturing industry. The One-Belt-One-Road strategy has become a national development strategy. The
National Reform and Development Committee indicated that 50 cities will have rail transport in 2020 with a total
China Fangda Group Co., Ltd. 2015 Annual Report mileage of 6,000 km. The industry enjoys a rosy outlook under the background.
2. Technical advantage
Through continued independent innovation, the Company has developed the global leading metro screen door system with full intellectual property right and broken the monopoly of overseas competitors. The Company has also compiled the Rail Transport Station Screen Door Standard, which is the first of its kind in China. The standard was approved in April 2006 and was implemented on March 1, 2007. As the first standard in the industry in China, the standard has played a key role in guiding the development ofChina’s rail transport screen door industry and enabled the Company a dominant lead in the industry. Currently, the Company has 223 metro screen door patents, including 44 invention patents. The Company also has eight computer software copyrights.
3. Brand equity
So far, the Company has undertaken railway screen door projects in most domestic cities, Hong Kong, Taipei and Singapore. The Fangda screen door system has grasped a leading market share and established incomparable brand influence thanks to its patents, standard and maintenance services. The Company has emerged as the Chinese No.1 and global No.3 screen door provider, building a large competitive edge in the global market. (3) New energy industry
The new energy business mainly comprises solar power PV application, PV construction and LED industry. 1. Technical advantage
With more than tenyears’ experience in developing solar energy PV power generating curtain wall
technology, the Company is the earliest company that masters the intelligent property right in the designing, production and integration of solar energy PV curtain wall systems and is a pioneer in the application of PV curtain wall technology. The Company built the first solar energy PV integrated building curtain wall system in China– Shenzhen Fangda Building photoelectric curtain wall system.
2. Relation with other industries
Distributed solar power PV power generation is closely related to theCompany’s existing businesses. Most distributed solar power PV systems are closely related to construction. Moreover, the Company has more than 10 years' experience in electrical product integration. The Company also has more than 20years’ experience in construction management and has the level-1 construction curtain wall engineering qualification and electrical installation engineering qualification.
(4) Real Estate
The Fangda Town renovation project is well-positioned and enjoys express transport, unique landscape resources, preferential policies and moderate competition in the district. The project will buoy theCompany’s net assets and total assets, bring strong cash flows for the Company, provide capital support for the development of businesses, and gain experience in the real-estate development industry.
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 4 Management Discussion and Analysis
1. Summary
In 2015, the recovery of the global economy remained weak and the Chinese economy faced a heavy downward pressure. In front of the adverse economic environment, the Company has been able to overcome difficulties and fulfill the annual operation target under the leadership of the Board of Directors and management and joint efforts of all employees. In the report period, the Company secured orders of RMB3.284 billion, up17% year on year, recorded an operation turnover of RMB2.55 billion, up31.58% year one year. The net profit attributed to the owner of the parent reached RMB107 million, up10.59% year one year. By the end of the report period, the Company had secured new orders worth RMB2.944 billion, which115% of the operating revenue in 2015, paving the way for the Company to complete the wholeyear’s sales target. The Fangda Town renovation project is proceeding as scheduled. The pre-sales certificate has been received in the report period.
1. Continuing to make headway in curtain wall system and material market exploration
As the urbanization accelerates and more and more people realize the importance of energy saving, the market demand for high-end energy-saving curtain walls is on the rise. Over the past more than 20 years, the Company has been committed to the philosophy of building a leading company, products and services.
Underpinned by our advantages in technology, hardware, brand and services, we have taken different market strategies to explore the high-end energy-saving curtain wall market. Currently, theCompany’s curtain wall and material products have emerged as a leading brand in the domestic market. In 2015, the Company won a series of large-sized energy-saving curtain wall and aluminum material projects including the Shenzhen Hanjing Finance Center, Shenzhen Kexing Hi-tech Park D Zone, Shanghai Hongqiao Commercial Area Office Building, Shanghai Wuzhong Road shopping mall, Jinan Shangri-La Hotel, Chengdu Fuli Plaza and Lanzhou International Trade Center. Projects including the Shenzhen Alibab/Ali Cloud Building, Chengdu Wanda Ruihua Hotel, Kunming Wanda, Nanchang Wanda Mao, Shanghai Bund SOHO, Shanghai Vanke Jade Bank, Shanghai China Resource Mix City are proceeding as scheduled. The business recorded a sales income of RMB2.1 billion in 2015, up27.81% year on year. The remaining orders at the end of the year reached RMB2.28 billion yuan, accounting for108% of thebusiness’s sales income in 2015. Given our advantages, the business will continue growing rapidly over the next few years.
The Company has optimized its organizational structure, management mode and management functions to control safety risks, regulate the project management system, reinforce the payment collection system. These measures will help build a solid foundation for the development and growth of the business.
2. A leader in the rail transport equipment market
In 2015, the rail transport equipment is listed in the Made in China 2025 Plan as a key field to development. The
13th
Five-Year Plan also highlights the construction of rail transport and development of the rail transport equipment. In recent years, the Chinese economy has continued growing. Many domestic cities have accelerated the construction of rail transport. By the end of 2015, 26 cities have put rail transport into use with a total mileage of 3,612 km. The National Reform and Development Committee indicated that 50 cities will have rail transport in 2020 with a total mileage of 6,000 km. Therefore, the industry will enter its gold age of rapid growth. The Company will benefit from this trend as a market leader.
With adecade’s innovation and development, theCompany’s screen doors have been used in more than 20 domestic cities and other cities including Singapore, Hong Kong and Taiwan. In 2015, the market share, brand
China Fangda Group Co., Ltd. 2015 Annual Report equity, intellectual property rights, industry standard and engineering services of our products have won wide applause from customers. We won screen door projects in Lanzhou, Xiamen, Wuhan, Hefei, Nanning, Nanchang and Kunming, ranking No.1 in China in terms of the bidding amount. In the report period, Dalian subway line No.1, Nanchang subway line No.1. Dongguan subway line No.2 and Wuhan subway line No.3 equipped with our screen doors have been put into operation. In the report period, the business recorded a sales income of
RMB255,753,000, up59.42% year on year. By the end of 2015, reserved orders reached RMB660 million, accounting for258% of the sales income in 2015. In the future, the Company will take advantage of the One Belt One road strategy to explore overseas markets in Southeast Asia and West Asia. The Company is likely to make a giant leap in the overseas screen door market.
In 2015, the maintenance market of the screen door business has largely improved. In the future, the
Company will expand the business scope to fields related to screen doors including advertisement and intelligent systems underpinned by the solid quality, technology and service reputation.
3. Moving forward steadily in the new energy industry
Since the Company established the new energy company in July 2014, the Company has entered into framework agreement for constructing distributed solar PV power plants in Jiangxi Nanchang, Pingxiang, Xinyu and Longnan with a total installation capacity of 1.1 GWp. In 2015, the solar PV business was developed as planned. The 2MWp distributed solar PV power plant in Dongguan Songshanhu was accepted by Guangdong and Gongguan Power Supply Administration on October 1, 2015. The Company also signed the electricity purchase and sales contract with the Guangdong Power Supply Company of China Southern Power Grid. By December 31, 2015, the project has generated 461,000 kilowatt-hours, reaching the estimated generation efficiency. The Company raised RMB470 million through private share issuance to invest in three PV power plant project with a total capacity of 39.3MWp. The issuance has been approved by CSRC. The three projects will be put into operation in 2016. The business will bring stable income and profit for the Company in the future and become a new profit source.
4. Fangda Town renovation project
In 2015, the Fangda Town renovation project has been proceeding as scheduled. The ceiling of the building No.2 was finished. The pre-sales certification for Phase 1 is received. The phase 1 was put into sales in January 2016 and was largely welcomed in the market. The phase 1 is expected to be finished by the end of 2016 and put into use between 2016 and 2017. The project will substantially increase theCompany’s assets, bring stable cash flow and lease income for the Company, supporting theCompany’s future demand for capital.
5. Awards
In the report period, the Company received a series of awards and titles, including the Shenzhen Top 100 Enterprises, National Outstanding Foreign Investment Enterprise, Guangdong Innovation Leader, Shenzhen Industry Award. Mr. Xiong Jianming was elected as one of the Top 35 Chinese Business Leaders in 35 Years. Mr. Lin Kebin is elected as Shenzhen New-Generation Innovation Leader. Mr. Zheng Zheng, head of the Information Management Department was elected as the Guangdong Outstanding Chief Information Officer. The Company applied for 24 new patents, including 7 new invention patents.
A series of curtain wall projects undertaken by Jianke Group won the 2014-2015 China Construction Luban Award, 2015 Guangdong High Quality Project Award. China Construction Curtain Wall Top 100 Enterprise, Shenzhen Decoration Jinpeng Award, Chengdu Jinrong Cup Gold Award, and received titles including Reliable Partner, Best Strategic Partner, High-Quality Supplier and Outstanding Project Team from customers.
Fangda Automatic received the Second Award of the Shenzhen Scientific Achievement, Fucai Cup QCC Achievement Excellent Award, and received titles including Outstanding Management Team, Technological Expert from the Tianjin Subway; a leading group by Nanchang rail transport group.
China Fangda Group Co., Ltd. 2015 Annual Report Jiangxi New Material received titles including Nanchang National High-Tech Industry Park Leading Enterprise, and Leading Company in Standardization.
Fangda Town renovation project received the 2016 Highlighted Project Award and Annual High-Quality Project Award
2. Main business analysis
1. Summary
For details see Management Discussion and Analysis– 1. Profile
2. Income and costs
(1) Turnover composition
In RMB
|||||||
|-|-|-|-|-|-|
||2015||2014|||
|||Proportion in||Proportion in|YOY change (% )|
||Amount||Amount|||
|||operating costs (%)||operating costs (%)||
|Total turnover|2,550,467,494.78|100%|1,938,324,435.51|100%|31.58%|
|Industry||||||
|Metal production|2,100,612,326.46|82.36%|1,643,589,644.97|84.79%|27.81%|
|Railroad industry|255,752,825.73|10.03%|160,427,755.09|8.28%|59.42%|
|New energy industry|136,270,215.79|5.34%|92,516,175.40|4.77%|47.29%|
|Others|57,832,126.80|2.27%|41,790,860.05|2.16%|38.38%|
|Product||||||
|Curtain wall system||||||
||2,100,612,326.46|82.36%|1,643,589,644.97|84.79%|27.81%|
|and materials||||||
|Subway screen door||||||
||255,752,825.73|10.03%|160,427,755.09|8.28%|59.42%|
|and service||||||
|LED products|136,014,530.20|5.33%|92,516,175.40|4.77%|47.02%|
|PV power generation|255,685.59|0.01%||||
|Others|57,832,126.80|2.27%|41,790,860.05|2.16%|38.38%|
|District||||||
|Domestic|2,480,678,272.83|97.26%|1,898,111,499.44|97.93%|30.69%|
|Overseas|69,789,221.95|2.70%|40,212,936.07|2.07%|73.55%|

(2) Industries, products or districts that take more than10% of theCompany‟s business turnover or profit
√ Applicable□ Inapplicable
China Fangda Group Co., Ltd. 2015 Annual Report In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Year-on-year|Year-on-year|Year-on-year|
||Turnover|Operation cost|Gross margin|change in|change in|change in gross|
|||||operating revenue|operating costs|margin|
|Industry|||||||
|Metal production|2,100,612,326.46|1,769,172,547.22|15.78%|27.81%|28.30%|-0.33%|
|Railroad industry|255,752,825.73|202,151,998.82|20.96%|59.42%|73.05%|-6.23%|
|Product|||||||
|Curtain wall|||||||
|system and|2,100,612,326.46|1,769,172,547.22|15.78%|27.81%|28.30%|-0.33%|
|materials|||||||
|Subway screen|||||||
||255,752,825.73|202,151,998.82|20.96%|59.42%|73.05%|-6.23%|
|door and service|||||||
|District|||||||
|Domestic|2,480,678,272.83|2,127,455,729.07|14.24%|30.69%|35.99%|-3.34%|

 Main business statistics adjusted in the recent one year with the statistics criteria adjusted in the report period□ Applicable√ Inapplicable
(3) The physical sales revenue is high the labor service revenue
√ Yes□ No
|||||||
|-|-|-|-|-|-|
|Industry|Items|Unit|2015|2014|YOY change (% )|
||Sales|M2|2,935,850.86|2,479,915.61|18.39%|
|Curtain wall system||||||
||Output|M2|2,972,936.22|2,593,192.46|14.64%|
|and materials||||||
||Inventory|M2|257,208.5|220,123.14|16.85%|

 Explanation for a year-on-year change of over30%
□ Applicable√ Inapplicable
(4) Performance of signed major sales contracts in the report period
□ Applicable√ Inapplicable
(5) Operation cost composition
Product
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2015||2014|||
|Product|Items||Proportion in||Proportion in|YOY change (% )|
|||Amount||Amount|||
||||operating costs||operating costs||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||(%)||(%)||
|Curtain wall|||||||
|system and|Raw materials|1,181,842,856.96|66.80%|929,436,079.36|67.40%|27.16%|
|materials|||||||

(6) Change to the consolidation scope in the report period
√ Yes□ No
In the period, the Company expanded its direct or indirect control to another eight subsidiaries including Jiangxi Fangda Property Development Co., Ltd., Shenzhen Fangda Property Management Co., Ltd., Shenzhen Qianhai Kechuangyuan Software Co., Ltd., Ganzhou Longneng New Energy Co., Ltd., Pingxiang Fangda Luxin New Energy Co., Ltd., Pingxiang Xiangdong Fangda New Energy Co., Ltd., Nanchang Xinjian Fangda New Energy Co., Ltd. and Dongguan Fangda New Energy Co., Ltd.
In the period, the Company finished the liquidation of directly control subsidiary Hong Kong Junjia, which is removed from the consolidated financial statements.
(7) Major changes or adjustment of business, products or services in the report period
□ Applicable√ Inapplicable
(8) Major sales customers and suppliers
Main customers
|||
|-|-|
|Total sales amount to top 5 customers (RMB)|552,235,358.77|
|Proportion of sales to top 5 customers in the annual sales|21.33%|

 Information of the Company's top 5 customers
|||||
|-|-|-|-|
|No.|Customer|Sales (RMB)|Percentage in the annual sales|
|1|No.1|142,066,212.50|5.49%|
|2|No.2|129,929,168.20|5.02%|
|3|No.3|96,872,963.97|3.74%|
|4|No.4|94,429,356.09|3.65%|
|5|No.5|88,937,658.01|3.43%|
|Total|--|552,235,358.77|21.33%|

 Other information about major customers
□ Applicable√ Inapplicable
Main suppliers
|||
|-|-|
|Purchase amount of top 5 suppliers (RMB)|482,934,163.51|
|Proportion of purchase amount of top 5 suppliers in the||
||26.90%|
|total annual purchase amount||

Information of theCompany’s top 5 suppliers
China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|No.|Supplier|Purchase amount (RMB)|Percentage in the annual purchase amount|
|1|No.1|192,123,453.34|10.70%|
|2|No.2|113,958,182.88|6.35%|
|3|No.3|81,538,198.15|4.54%|
|4|No.4|48,318,649.24|2.69%|
|5|No.5|46,995,679.91|2.62%|
|Total|--|482,934,163.51|26.90%|

 Other information about major suppliers
□ Applicable√ Inapplicable
3. Expenses
In RMB
||||||
|-|-|-|-|-|
||2015|2014|YOY change (% )|Notes|
||75,264,951.18|44,684,306.70||Mainly due to increase in|
|Sales expense|||68.44%||
|||||advertisement and promotion expenses|
|Administrative expense|167,405,776.25|152,584,713.60|9.71%||
|Financial expenses|50,672,490.05|29,165,058.80|73.74%|Mainly due to increase in average loan|

 4.R&D investment
√ Applicable□ Inapplicable
During the report period, the Group focused on low-carbon, energy saving, environmental protection and sustainable development to develop new products, new processes and technologies. The Group has finished theR&D of energy-saving curtain walls, solar PV curtain walls, aluminum compound plates, single-layer aluminum sheets, aluminum honeycomb sheets, subway screen door systems, PV power plants with intellectual property rights. The solid expertise elevates theGroup’s core competitiveness and underpins the long-term solid
development of the Group.
R&D investment
|||||
|-|-|-|-|
||2015|2014|Change|
|R&D staff number|351|344|2.03%|
|R&D staff percentage|15.08%|11.39%|3.69%|
|R&D investment amount||||
||105,200,255.72|86,772,964.18|21.24%|
|(RMB)||||
|Investment percentage in||||
||4.12%|4.48%|-0.36%|
|operation turnover||||
|Capitalization of R&D||||
||0.00|0.00||
|investment amount (RMB)||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Percentage of capitalization of|||
|R&D investment in the R&D|0.00%|0.00%|
|investment|||

Reason for the increase in the percentage ofR&D investment in the business turnover
□ Applicable√ Inapplicable
Explanation of the increase in the capitalization ofR&D investment
□ Applicable√ Inapplicable
5. Cash flow
In RMB
|||||
|-|-|-|-|
|Items|2015|2014|YOY change (% )|
|Sub-total of cash inflow from|2,219,602,450.52|1,684,047,696.92||
||||31.80%|
|business operations||||
|Sub-total of cash outflow from|2,579,717,564.56|2,241,941,626.36||
||||15.07%|
|business operations||||
|Cash flow generated by|-360,115,114.04|-557,893,929.44||
|business operations, net||||
|Sub-total of cash inflow|397,636,935.30|302,123,140.16||
||||31.61%|
|generated from investment||||
|Subtotal of cash outflows|213,169,919.71|588,172,728.21|-63.76%|
|Cash flow generated by|184,467,015.59|-286,049,588.05||
|investment activities, net||||
|Subtotal of cash inflow from|1,764,927,828.86|1,303,817,100.01||
||||35.37%|
|financing activities||||
|Subtotal of cash outflow from|1,444,458,573.58|642,732,507.84||
||||124.74%|
|financing activities||||
|Net cash flow generated by|320,469,255.28|661,084,592.17||
||||-51.52%|
|financing activities||||
|Net increase in cash and cash|145,101,011.59|-182,599,023.19||
||||-179.46%|
|equivalents||||

Explanation of major changes in related data from the same period last year
√ Applicable□ Inapplicable
Increase in net cash flows from investment activities is mainly caused by the large cash flow-out for purchase of financial products in the same period last year;
The increase in the net cash flow from financing activities is mainly caused by the increase in the capital flow-in of bank loans in the same period last year.
Explanation of major difference between the cash flow generated by operating activities and the net profit in the
year
√ Applicable□ Inapplicable
China Fangda Group Co., Ltd. 2015 Annual Report The net profit this year reached RMB6,812,151,400 with a new cash flow of RMB-360,115,100 from operation activities, mainly the capital flow-out to the Fangda Town renovation project, which has not create cash flow-in yet.
3. Non-core business analysis
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
||Amount|Profit percentage|Reason|Whether continuous|
||||From transfer of||
|Investment income|280,949.87|0.27%||No|
||||transactional financial assets||
|Gain/loss caused by|||||
||||Adjustment of fair value of||
|changes in fair|89,746,065.58|86.77%||No|
||||investment real estate||
|value|||||
||||Bad debt provision,||
||||inventory depreciation||
|Assets impairment|50,019,679.10|48.36%||No|
||||provision and goodwill||
||||impairment provision||
||||Share transfer payment that||
|Non-operating|||does not need to paid||
||29,668,110.25|28.69%||No|
|revenue|||because the payment||
||||condition is not met||
|Non-business|||||
||18,233,740.07|17.63%|Estimated lawsuit indemnity|No|
|expenses|||||

4. Assets and liabilities
1. Major changes in assets composition
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2015||End of 2014||||
||||||Change||
|||Proportion in||Proportion in||Notes|
||Amount||Amount||(% )||
|||total assets||total assets|||
||400,953,337.32||212,430,798.87||||
|Monetary capital||8.98%||5.80%|3.18%||
|Account|1,405,718,134.89||1,105,242,251.46||||
|||31.49%||30.18%|1.31%||
|receivable|||||||
||1,346,591,303.53||982,441,187.05|||Up 37.07 year on year, due to increase|
|Inventory||30.16%||26.82%|3.34%|in the investment in Fangda Town|
|||||||project|
|Investment real|335,328,805.7|7.51%|226,279,523.39|6.18%|1.33%|Increased by 48.19%, due to increase|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|estate|4|||||in leased houses and change in the fair|
|||||||value|
|Long-term share|10,489,680.93||11,048,660.43||||
|||0.23%||0.30%|-0.07%||
|equity investment|||||||
||462,648,998.51||489,714,684.63||||
|Fixed assets||10.36%||13.37%|-3.01%||
||15,134,390.90||341,749.17|||Increased by RMB14.7927, due to the|
|Construction in|||||||
|||0.34%||0.01%|0.33%|increased investment in PV power|
|process|||||||
|||||||plants|
||1,147,957,775.82||1,100,000,000.00||||
|Short-term loans||25.72%||30.03%|-4.31%||
||300,395,582.06|||||Increased by RMB300 million, due to|
|Long-term loans||6.73%||0.00%|6.73%|long-term borrowing from banks for|
|||||||Fangda Town project|

2. Assets and liabilities measured at fair value
√ Applicable□ Inapplicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
||||Accumulative|||||
|||Gain/loss|changes in fair|||||
|||||Impairment|Amount|||
||Opening|caused by|value|||Amount sold in|Closing|
|Items||||provided in the|purchased in|||
||amount|changes in fair|accounting into|||the period|amount|
|||||period|the period|||
|||value|the income|||||
||||account|||||
|Financial assets||||||||
|1. Financial||||||||
|assets measured||||||||
|at fair value||||||||
|with variations||||||||
|accounted into|||||||14,546,206.5|
||13,410,790.00|3,952,285.09||||2,416,792.96||
|current income|||||||8|
|account||||||||
|(excluding||||||||
|derivative||||||||
|financial assets)||||||||
||||||||14,546,206.5|
|Subtotal|13,410,790.00|3,952,285.09||||2,416,792.96||
||||||||8|
|Investment real|||||||304,615,212.|
||198,513,586.15|85,793,780.49|91,831.63||20,307,845.89|||
|estate|||||||53|
|Total|211,924,376.15|89,746,065.58|91,831.63||20,307,845.89|2,416,792.96|319,161,419.|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||||||||11|
|Financial||||||||
||0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|liabilities||||||||

Major changes in the assets measurement property of the Company in the report period
□ Yes√ No
5. Investment
1. General situation
□ Applicable√ Inapplicable
2. Major equity investment in the report period
□ Applicable√ Inapplicable
3. Major non-equity investment in the report period
□ Applicable√ Inapplicable
4. Financial assets investment
(1) Securities investment
√ Applicable□ Inapplicable
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Accumu|||||||
||||||||lative|||||||
|||||||Gain/los|changes|||||||
|||||||s caused|in fair|Amount|Amount|||||
||||Initial|Account|Opening||||||Closing|||
|Securiti||Abbrevi||||by|value|purchas|sold in|Gain/los||Account|Capital|
||Code||investm|ing|book||||||book|||
|es||ation||||changes|accounti|ed in the|the|s||ing item|source|
||||ent cost|method|value||||||value|||
|||||||in fair|ng into|period|period|||||
|||||||value|the|||||||
||||||||income|||||||
||||||||account|||||||
|Domesti||Sino Oil||Measure||||||||Transact||
|c||and Gas|16,263,|ment at|13,410,|3,952,2|||2,416,7|4,341,3|14,546,|ional|Self-ow|
||00702||||||0.00|0.00||||||
|overseas||Holding|675.00|fair|790.00|85.09|||92.96|16.92|206.58|financia|ned fund|
|shares||s Ltd||value||||||||l assets||
||||16,263,||13,410,|3,952,2|||2,416,7|4,341,3|14,546,|||
|Total||||--|||0.00|0.00||||--|--|
||||675.00||790.00|85.09|||92.96|16.92|206.58|||

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Disclosure date of approval||
|by the Board of Directors|11.03.14|
|of securities investment||
|Disclosure date of approval||
|by the Board of Directors|None|
|of securities investment||

(2) Derivative investment
√ Applicable□ Inapplicable
In RMB10,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proporti||
|||||||||||||on of||
|||||||||||||closing||
|||||||||||||investm|Actua|
|Derivati||||||||Amount||Impairm||ent|l|
||||||||Initial||Amount||Closing|||
|ve||Related||||||purchas||ent||amount|gain/l|
||Relation|||Initial|Start||investm||sold in||investm|||
|investm||transacti|Type|||End date||ed in||provisio||in the|oss in|
||ship|||amount|date||ent||this||ent|||
|ent||on||||||this||n (if||closing|the|
||||||||amount||period||amount|||
|operator||||||||period||any)||net|report|
|||||||||||||assets in|period|
|||||||||||||the||
|||||||||||||report||
|||||||||||||period||
|Shangha||||||||||||||
||||Shanghai|||||||||||
|i Futures|||||||||||||-293.3|
||None|No|aluminu|8,512.72|05.01.15|28.09.15|0|8,512.72|8,512.72|0|0|0.00%||
|Exchang|||||||||||||5|
||||m|||||||||||
|e||||||||||||||
||||||||||||||-293.3|
|Total||||8,512.72|--|--|0|8,512.72|8,512.72|0|0|0.00%||
||||||||||||||5|
|Capital source||||Self-owned fund||||||||||
|Lawsuit involved||||None||||||||||
|Disclosure date of derivative||||||||||||||
|investment approval by the Board of||||||||||||||
|Directors (if any)||||||||||||||
|Disclosure date of derivative||||||||||||||
|investment approval by the||||||||||||||
|Shareholders’ Meeting (if any)||||||||||||||
|Risk analysis and control measures||||To prevent the risk of fluctuation of raw material prices, the Company adopted the||||||||||
|for the derivative holding in the report||||aluminum futures exchanged at the domestic futures exchange to provide hedging for||||||||||
|period (including without limitation||||aluminum as a raw material for the Company. The Company has set up and implemented the||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|market, liquidity, credit, operation and|Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.|
|legal risks)||
|Changes in the market price or fair||
|value of the derivative in the report||
|period, the analysis of the derivative’s|The fair value of the derivative should be calculated with the open quotation of the futures|
|fair value should disclose the method|market and should be reviewed regularly to ensure effective hedging.|
|used and related assumptions and||
|parameters.||
|Material changes in the accounting||
|policies and rules related to the||
||No|
|derivative in the report period||
|compared to last period||
|Opinions of independent directors on||
|the Company’s derivative investment|None|
|and risk controlling||

5. Use of raised capital
□ Applicable√ Inapplicable
The Company used no raised capital in the report period.
6. Major assets and equity sales
1. Major assets sales
□ Applicable√ Inapplicable
The Company sold no assets in the report period.
2. Major equity sales
□ Applicable√ Inapplicable
7. Analysis of major joint stock companies
√ Applicable□ Inapplicable
Major subsidiaries and joint stock companies affecting more than10% of theCompany’s net profit
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Main|Registered||||Operation||
|Company|Type|||Total assets|Net assets|Turnover||Net profit|
|||business|capital||||profit||
|Fangda||Curtain wall|500,000,000.|2,936,047,11|772,966,316.|1,953,103,18|95,850,803.1|67,645,946.1|
||Subsidiary||||||||
|Jianke||system|00|6.42|65|8.89|2|8|
|Fangda|Subsidiary|Subway|105,000,000.|446,214,437.|224,286,077.|258,278,535.|30,644,833.5|26,511,078.2|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Automatic|screen door|00|49|17|47|0|1|
||and service|||||||

Acquisition and disposal of subsidiaries in the report period
□ Applicable√ Inapplicable
||||
|-|-|-|
||Acquisition and disposal of subsidiaries in|Impacts on business operation and|
|Company|||
||the report period|performance|
|Hong Kong Junjia|Liquidation|None|

Major joint-stock companies
8. Structural entities controlled by the Company
□ Applicable√ Inapplicable
9. Future Prospect
(1) Competition map and development trend
1. Curtain wall and material system industry
As China continues urbanizing, the demand for construction curtain walls will grow rapidly, fueling the development of the curtain wall industry. Over recent years, a series of industry policies will be issued to push forward the industry, providing a gold opportunity for the development of energy-saving curtain wall and solar power generation curtain wall business.
2. Rail transport equipment business
In 2015, the rail transport equipment is listed in the Made in China 2025 plan as a key industry. The
13th Five-Year Plan specifies that the rail construction will be reinforced to promote the advanced railway equipment manufacturing industry. The National Reform and Development Committee indicated that 50 cities will have rail transport in 2020 with a total mileage of 6,000 km. By the end of 2015, 26 cities have put rail transport into use with a total mileage of 3,612 km. Therefore, the industry will turn on to a fast track. City rail transport projects are mainly subway projects, for which screen doors are must-have. The screen door market will expand rapidly in the future.
3. New energy industry
The solar PV power generation industry is supported by the government. By the end of 2015, the total installation capacity of PV power generation in China reached 43,180MW, making China the largest country in term of the PV power generation capacity. In the
13th
Five-Year Plan period, the capacity will increase by 15-20MW. Over the past few years, the government has issued a series of policies to support the development of the industry, from distributed PV power generation plant pilot zone to subsidies for construction of distributed PV power plants and streamlining related grid connection policies. Although centralized power plants remain the mainstay in terms of the connection power capacity in China currently, it is estimated that distributed power plants will grow faster than the average speed of the industry and become the main mode in the future.
4. Real estate
As the land resource in cities becomes increase scarce, city renovation will become a common task for all
major cities. The limited land resource has also become a bottleneck for the development of Shenzhen. City
China Fangda Group Co., Ltd. 2015 Annual Report renovation provides a low-cost solution for this problem and is largely supported by the government.
(2) Company development strategy and business plan
The year 2016 is a beginning year of the
13th
Five-Year Plan period with a lot of uncertainties in the domestic and overseas economy and financial environments. The Company will take advantage of the deepening reform and opening up process to improve management efficiency, continue innovation and fulfill the annual business target, making a solid foundation for the long-term development.
In 2016, the curtain wall and material industry will continue exploring the South China region with Shenzhen as the center and also pay attention to high-quality projects in Shanghai, Beijing, Chengdu and Chongqing. Adhering to the high-end market position, the Company will explore the overseas market. As the market leader in the rail transport equipment industry, the Company will stick to the One Road One Belt strategy and seek to explore overseas markets in Southeast Asia and West Asia. The Company will seek to finish the private share issuance to support the development of the solar PV power generation business. The Company will guarantee the quality and schedule of the Fangda Town renovation project to ensure delivery as scheduled.
(3) Capital demand and source for projects in progress
To realize the business target in 2016, the Company will develop suitable financial and capital plans, accelerate the collection of accounts receivable, sales payment from sales of Fangda Town, expand financing channels, and use share issuance, bank loans and other financing products to meet the demand for capital. (4) Risks and solutions
1. Market risks and measures
As the overall designing and engineering quality continues improving in the domestic construction curtain wall industry, curtain wall products will become increasingly standard, intensifying the market competition. The Company will continue implementing a prudent operation strategy, fine management and technical innovation to lower the management costs and accelerate the recovery of receivables. Through new technologies and processes, we will improve product quality, lower costs and elevate earnings. While consolidating the domestic market, the Company will step up the efforts in exploring overseas markets, thus elevating our competitiveness in global markets and improving our resistance to risks.
2. Management risks and measures
With an increase in orders in recent years and operation of five industry bases, the Company has continued expanding rapidly in terms of capitalization, business and teams. The organizational structure and management system have become more complicated, leading to management risks in industry expansion. The Company will continue to improve the matrix management mode, integrate business management, optimize the business flow, seeking to build a high-efficient and solid management team. We will introduce high-quality, professional technical and management talents in different fields to strengthen the Company's core competitiveness.
3. Production and operation risks and measures
The macro-economy and market demand have added to the fluctuation in prices of main raw materials such as aluminum and steel and labor, affecting theCompany’s profitability and creating additional production and operation risks for the Company. The Company has sought to lower the purchase and production costs, pay attention to technicalR&D, reduce consumption of raw materials, introduce automatic and intelligent production equipment, strengthen staff training to improve working efficiency.
4. Solar PV power plant risks and measures
The industry is closely related to policies of the local government. Changes in policies will have large impacts on the industry. The Company will continue paying attentions to the development of the industry. The Company will conduct adequate verification on project feasibility, control costs, quality and schedules strictly,
China Fangda Group Co., Ltd. 2015 Annual Report and improve its development, construction and maintenance capabilities.
X. Acceptance of investigations, communications, or interviews
1. Reception of investigations, communications, or interviews in the reporting period
√ Applicable□ Inapplicable
||||||
|-|-|-|-|-|
|Time/date|Way||Visitor|Disclosure of information|
|||||Investor Relationship Record Form on|
|21.01.15|Onsite investigation||Institution||
|||||www.cninfo.com.cn|
|||||Investor Relationship Record Form on|
|28.04.15|Onsite investigation||Institution||
|||||www.cninfo.com.cn|
|||||Investor Relationship Record Form on|
|26.05.15|Onsite investigation||Institution||
|||||www.cninfo.com.cn|
|||||Investor Relationship Record Form on|
|24.07.15|Onsite investigation||Institution||
|||||www.cninfo.com.cn|
|||||Investor Relationship Record Form on|
|26.11.15|Onsite investigation||Institution||
|||||www.cninfo.com.cn|
|Time||5|||
|Number of institutes||7|||
|Number of individuals||8|||
|Number of other visitors||0|||
|Disclosure of any non-public information||No|||

China Fangda Group Co., Ltd. 2015 Annual Report Chapter 5 Significant Events
1. Profit distribution and reserve capitalization plan
Establishment, implementation or adjustment of profit distribution policies especially the cash dividend policy during the report period
√ Applicable□ Inapplicable
During the report period, the Company implemented the profit distribution plan for 2014. Approved at the Shareholders' Meeting 2014 held on 17.04.15, the Company's profit distribution plan for 2014 is distributing a cash dividend of RMB0.30 (tax-included) for every ten shares of all the shareholders based on a total of
756,909,905 shares on 31.12.14. The plan was implemented on 05.06.15 (see the 2014 Share Equity Distribution Implementation Announce 2015-18).
|||
|-|-|
|Explanation of Cash Dividend Distribution Policies||
|Comply with the Articles of Association or resolution made at||
||Yes|
|the General Shareholders' Meeting||
|Clear and definite distribution standard and proportion|Yes|
|Decision-making procedure and mechanism|Yes|
|Independent directors fulfill their duties|Yes|
|Middle and small shareholders express their opinions and claims.||
||Yes|
|There rights are well protected.||
|Cash dividend distribution policies are adjusted or revised||
||Yes|
|according to law||

Profit distribution and reserve capitalizing pre-plans or plans over the recent three years (including the reporting period)
2013: A cash dividend of RMB0.30 (including tax) for each ten shares is issued to all shareholders on the basis of 756,909,905 shares with a total amount of RMB 22,707,297.15, on December 31, 2013. No dividend share or capitalization share is issued in the year.
2014: A cash dividend of RMB0.30 (including tax) for each ten shares is issued to all shareholders on the basis of 756,909,905 shares with a total amount of RMB 22,707,297.15, on 31.12.14. No dividend share or capitalization share is issued in the year.
2015: A cash dividend of RMB1 (including tax) for each ten shares is issued to all shareholders on the basis of 756,909,905 shares with a total amount of RMB 75,690,990.50, on 31.12.15. No dividend share or capitalization share is issued in the year.
Distribution of cash dividend over the recent three years (including this period)
In RMB
|||||||
|-|-|-|-|-|-|
|Year|Cash dividend|Net profit|Proportion in the net|Cash dividend paid|Proportion of cash|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
||(including tax)|attributable to|project attributable|in other manners|dividend paid in|
|||shareholders in the|to shareholders in||other manners|
|||consolidated|the consolidated|||
|||financial statements|financial statements|||
|2015|75,690,990.50|107,272,369.77|70.56%|0.00|0.00%|
|2014|22,707,297.15|96,998,429.76|23.41%|0.00|0.00%|
|2013|22,707,297.15|85,676,863.78|26.50%|0.00|0.00%|

 Cash dividend proposed despite the Company records profits in the report period and a positive undistributed profit
□ Applicable√ Inapplicable
2. Profit Distribution and Reserve Capitalization Plan in the Report Period
√ Applicable□ Inapplicable
|||
|-|-|
|Bonus shares for every ten shares|0|
|Cash dividend for every ten shares (yuan,||
||1|
|tax-included)||
|Shares capitalized for every 10 shares|0|
|A total number of shares as the distribution basis|756,909,905|
|Total cash dividend (yuan, including tax)|75,690,990.50|
|Distributable profit (yuan)|402,148,728.12|
|Proportion of cash dividend in the distributable||
||100.00%|
|profit||
|Cash dividend||
|The Company is in a fast growth stage. Therefore, the cash dividend will reach 20% of the profit distribution at least.||
|Details of profit distribution or reserve capitalization plan||
|The Company plans to distribute a cash dividend of RMB1 (including tax) for each ten shares issued to all shareholders on the basis||
|of 756,909,905 shares with a total amount of RMB22,707,297.15, on 31.12.15. No dividend share or capitalization share is issued||
|in the year. The plan needs to be reviewed and approved at the General Shareholders' Meeting 2015.||

3. Performance of promises
1. Promises fulfilled and not fulfilled by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior management or other associates in the report period
□ Applicable√ Inapplicable
There are no promises fulfilled and not fulfilled by the Company, shareholders, actual controller, acquirer,
directors, supervisors, senior management or other associates in the report period.
China Fangda Group Co., Ltd. 2015 Annual Report 2. Explanation and reason of profit forecasts on assets or projects that remain in the report period
□ Applicable√ Inapplicable
4. Non-operating capital use by the controlling shareholder or related parties in the reporting term
□ Applicable√ Inapplicable
The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.
5. Statement of the Board of Directors, Supervisory Committee and Independent Directors (if applicable) on the “non-standardauditors‟ report” issued by the CPA on the current report period
□ Applicable√ Inapplicable
6. Statement of changes to accounting policies, estimates and audit methods compared with the financial report of the previous year
□ Applicable√ Inapplicable
No change in accounting policies, assumptions and auditing methods in the report period.
7. Statement of retrospective restatement of major accounting errors in the report period□ Applicable√ Inapplicable
No retrospective restatement of major accounting errors in the report period
8. Statement of change in the financial statement consolidation scope compared with the previous financial report
√ Applicable□ Inapplicable
In the period, the Company expanded its direct or indirect control to another eight subsidiaryies including Jiangxi Fangda Property Development Co., Ltd., Shenzhen Fangda Property Management Co., Ltd., Shenzhen Qianhai Kechuangyuan Software Co., Ltd., Ganzhou Longneng New Energy Co., Ltd., Pingxiang Fangda Luxin New Energy Co., Ltd., Pingxiang Xiangdong Fangda New Energy Co., Ltd., Nanchang Xinjian Fangda New Energy Co., Ltd. and Dongguan Fangda New Energy Co., Ltd.
In the period, the Company finished the liquidation of directly control subsidiary Hong Kong Junjia, which is removed from the consolidated financial statements.
9. Engaging and dismissing of CPA
CPA engaged currently
China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Domestic public accountants name|Grant Thornton (special general partner)|
|Remuneration for the domestic public accountants||
||130|
|(in RMB10,000)||
|Consecutive years of service by the domestic public||
||4|
|accountants||
|Name of certified accountants of the domestic public||
||Xie Peiren, Hu Gaosheng|
|accountants||
|Overseas public accountants name (if any)|0|
|Remuneration for the overseas public accountants||
||0|
|(in RMB10,000)||
|Consecutive years of service by the overseas public||
||None|
|accountants (if any)||
|Name of certified accountants of the overseas public||
||None|
|accountants (if any)||

Whether the CPA is replaced
□ Yes√ No
Engaging of internal control audit CPA, financial advisor and sponsor
√ Applicable□ Inapplicable
This year, the Company engaged Grand Thornton China (limited liability partnership) as the financial statement and internal control auditing CPA with a fee of RMB1.3 million.
This year, the Company engaged China Merchants Securities as the sponsor with a sponsoring fee of
RMB500,000 for the private share issuance issue.
10. Trade suspension and termination after the disclose of the annual report
□ Applicable√ Inapplicable
11. Bankruptcy and capital reorganizing
□ Applicable√ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
12. Significant lawsuit and arbitration
□ Applicable√ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
13. Punishment and rectification
□ Applicable√ Inapplicable
The Company received no penalty and made no correction in the report period.
China Fangda Group Co., Ltd. 2015 Annual Report 14. Credibility of the Company, controlling shareholder and actual controller
□ Applicable√ Inapplicable
15. Share incentive schemes, staff shareholding program or other incentive plans
□ Applicable√ Inapplicable
There are no share incentive schemes, staff shareholding program or other incentive plans in the report period 16. Material related transactions
1. Related transactions related to routine operation
□ Applicable√ Inapplicable
The Company made no related transaction related to daily operating in the report period.
2. Related transactions related to assets or equity transactions
□ Applicable√ Inapplicable
The Company made no related transaction of assets or equity requisition and sales in the report period.
3. Related transactions related to joint external investment
□ Applicable√ Inapplicable
The Company made no related transaction of joint external investment in the report period.
4. Related credits and debts
□ Applicable√ Inapplicable
The Company had no related debt in the report period.
(5) Other major related transactions
□ Applicable√ Inapplicable
The Company has no other significant related transaction in the report period.
17. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable√ Inapplicable
The Company made no custody in the report period.
China Fangda Group Co., Ltd. 2015 Annual Report (2) Contracting
□ Applicable√ Inapplicable
The Company made no contract in the report period
(3) Leasing
√ Applicable□ Inapplicable
Leasing
The annual lease income of investment real estate is RMB26,452,881.94.
Projects that create gains accounting for over10% of theCompany’s total profit in the report period
□ Applicable√ Inapplicable
The Company leased no projects that create gains accounting for over10% of theCompany’s total profit in the report period.
2. Significant guarantee
√ Applicable□ Inapplicable
(1) Guarantee
In RMB10,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|External guarantees made by the Company and subsidiaries (exclude those made for subsidiaries)|||||||||
||||Actual date of||||||
|||||Actual|||||
||Date of|Guarantee|occurring||Type of||Complete|Related|
|Guarantee provided to||||amount of||Term|||
||disclosure|amount|(signing date of||guarantee||d or not|party|
|||||guarantee|||||
||||agreements)||||||
|Guarantee between the Company and its subsidiaries|||||||||
||||Actual date of||||||
|||||Actual|||||
||Date of|Guarantee|occurring||Type of||Complete|Related|
|Guarantee provided to||||amount of||Term|||
||disclosure|amount|(signing date of||guarantee||d or not|party|
|||||guarantee|||||
||||agreements)||||||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|27.03.15|71,000|19.06.15|39,789.43|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|27.03.15|26,000|10.10.15|13,487.71|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|Fangda Jianke|27.03.15|40,000|17.09.15|23,280.08|Joint liability||No|No|
|||||||of contract to|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|01.07.15|20,000|22.07.15|20,000|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|01.07.15|15,000|22.09.15|3,547.18|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|29.08.15|15,000|11.11.15|3,150|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Jianke|11.03.14|15,000|31.12.14|6,489.15|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Automatic|27.03.15|20,000|24.09.15|15,346.77|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Automatic|29.08.15|5,000|11.11.15|195.58|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda Automatic|27.03.15|5,000|21.10.15|1,463.59|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda New Material|27.03.15|6,200|27.09.15|2,781.95|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|||||||of contract to|||
|Fangda New Material|27.03.15|8,000|27.05.15|7,456.25|Joint liability||No|No|
|||||||2 years upon|||
|||||||due of debt|||
|||||||since engage|||
|Fangda Property|23.03.13|130,000|03.02.15|30,039.56|Joint liability|of contract to|No|No|
|||||||2 years upon|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||due of debt|||
|||||||since engage|||
|Guangdong Fangda||||||of contract to|||
||27.03.15|2,000|29.01.15|2,000|Joint liability||No|No|
|SOZN||||||2 years upon|||
|||||||due of debt|||
|||||Total of guarantee to|||||
|Total of guarantee to subsidiaries||||subsidiaries actually|||||
|||256,000||||152,293.65|||
|approved in the report term (B1)||||occurred in the report term|||||
|||||(B2)|||||
|||||Total of balance of|||||
|Total of guarantee to subsidiaries||||guarantee actually provided|||||
|||386,000||||169,027.26|||
|approved as of the report term (B3)||||to the subsidiaries as of end|||||
|||||of report term (B4)|||||
|Guarantee provided to subsidiaries|||||||||
||||Actual date of||||||
|||||Actual|||||
||Date of|Guarantee|occurring||Type of||Complete|Related|
|Guarantee provided to||||amount of||Term|||
||disclosure|amount|(signing date of||guarantee||d or not|party|
|||||guarantee|||||
||||agreements)||||||
|Total of guarantee provided by the Company (total of the above three)|||||||||
|||||Total of guarantee occurred|||||
|Total of guarantee approved in the|||||||||
|||256,000||in the report term||152,293.65|||
|report term (A1+B1+C1)|||||||||
|||||(A2+B2+C2)|||||
|||||Total of guarantee occurred|||||
|Total of guarantee approved as of|||||||||
|||386,000||as of the end of report term||169,027.26|||
|end of report term (A3+B3+C3)|||||||||
|||||(A4+B4+C4)|||||
|Percentage of the total guarantee occurred (A4+B4+C4) on net|||||||||
|||||128.10%|||||
|asset of the Company|||||||||
|Including:|||||||||

(2) Incompliant external guarantee
□ Applicable√ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Entrusted cash capital management
(1) Wealth management
√ Applicable□ Inapplicable
In RMB10,000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Trustee|Related|Type of|Amount|Start date|End date|Earning|Principal|Impairme|Estimate|Actual|Actual|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||transactio|product||||recognitio|recovered|nt|return|gain/loss|recover|
||n|||||n method|actually|provision||in the|of gain|
|||||||||(if any)||report|and|
|||||||||||period|loss in|
||||||||||||the|
||||||||||||report|
||||||||||||period|
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||1,000|31.12.14|07.01.15|yield|1,000||0.61|0.61||
|||floating|||||||||red|
|Branch||||||3.12%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||1,000|31.12.14|15.01.15|yield|1,000||1.34|1.34||
|||floating|||||||||red|
|Branch||||||3.12%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||1,000|31.12.14|10.02.15|yield|1,000||3.65|3.65||
|||floating|||||||||red|
|Branch||||||3.12%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||6,800|31.12.14|04.01.15|yield|6,800||2.33|2.33||
|||floating|||||||||red|
|Branch||||||3.12%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||4,000|08.01.15|22.01.15|yield|4,000||4.99|4.99||
|||floating|||||||||red|
|Branch||||||3.25%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||1,000|08.01.15|13.01.15|yield|1,000||0.43|0.43||
|||floating|||||||||red|
|Branch||||||3.12%||||||
|||earning||||||||||
|||Non-prote||||||||||
|BOC,||||||Annual||||||
|||cted|||||||||Recove|
|Shenzhen|No||1,500|16.02.15|16.03.15|yield|1,500||5.35|5.35||
|||floating|||||||||red|
|Branch||||||4.65%||||||
|||earning||||||||||
|||Non-prote||||||||||
|||||||Annual||||||
|Bank of||cted|||||||||Recove|
||No||3,000|26.12.14|04.01.15|yield|3,000||2.07|2.07||
|China||floating|||||||||red|
|||||||2.5%||||||
|||earning||||||||||
|||Principal||||||||||
|Bank of||||||Annual|||||Recove|
||No|and|1,000|08.01.15|23.01.15||1,000||1.81|1.81||
|China||||||yield|||||red|
|||interest||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||protected||||4.4%|||||
|||Principal|||||||||
|||||||Annual|||||
|Bank of||and||||||||Recove|
||No||850|12.02.15|02.03.15|yield|850|1.97|1.97||
|China||interest||||||||red|
|||||||4.7%|||||
|||protected|||||||||
|||||||Annual|||||
|Bank of||Earning-pr||||||||Recove|
||No||3,000|31.12.14|04.01.15|yield|3,000|0.92|0.92||
|China||otected||||||||red|
|||||||2.8%|||||
|||Non-prote|||||||||
|BOC,||||||Annual|||||
|||cted||||||||Recove|
|Shenzhen|No||6,000|31.12.14|04.01.15|yield|6,000|2.05|2.05||
|||floating||||||||red|
|Branch||||||3.12%|||||
|||earning|||||||||
|||Principal|||||||||
|||||||Annual|||||
|Bank of||protected||||||||Recove|
||No||1,800|02.09.15|08.09.15|yield|1,800|0.77|0.77||
|China||financial||||||||red|
|||||||2.6%|||||
|||product|||||||||
|||Principal|||||||||
|||||||Annual|||||
|Bank of||protected||||||||Recove|
||No||3,000|29.09.15|08.10.15|yield|3,000|1.85|1.85||
|China||financial||||||||red|
|||||||2.5%|||||
|||product|||||||||
|||Principal|||||||||
|||||||Annual|||||
|Bank of||protected||||||||Recove|
||No||1,000|30.09.15|09.10.15|yield|1,000|0.47|0.47||
|China||financial||||||||red|
|||||||1.9%|||||
|||product|||||||||
|||Non-prote|||||||||
|BOC,||||||Annual|||||
|||cted||||||||Recove|
|Shenzhen|No||1,000|17.06.15|23.06.15|yield|1,000|0.51|0.51||
|||floating||||||||red|
|Branch||||||3.12%|||||
|||earning|||||||||
|BOC,||||||Annual|||||
|||Treasury||||||||Recove|
|Shenzhen|No||1,000|18.06.15|30.06.15|yield|1,000|0.74|0.74||
|||bond||||||||red|
|Branch||||||2.246%|||||
|||Non-prote|||||||||
|BOC,||||||Annual|||||
|||cted||||||||Recove|
|Shenzhen|No||1,000|26.12.14|03.01.15|yield|1,000|0.34|0.34||
|||floating||||||||red|
|Branch||||||3.12%|||||
|||earning|||||||||
|Total|||38,950|--|--|--|38,950|32.2|32.2|--|
|Source of fund|||Self-owned fund||||||||
|Principal and return due but not|||||||||||
||||0||||||||
|covered|||||||||||
|Lawsuit (if any)|||None||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Disclosure date of approval||
||11.03.14|
|announcement (if any)||
|Disclosure date of Shareholders'||
|Meeting approval announcement||
|(if any)||
|Whether there will be entrusted||
||No|
|wealth management plan||

(2) Trusted loans
□ Applicable√ Inapplicable
The Company borrowed no trust loan in the report period.
4. Other significant contract
□ Applicable√ Inapplicable
The Company entered into no other significant contract in the report.
18. Other material events
□ Applicable√ Inapplicable
The Company had no other significant event to be explained in the report period.
19. Material events of subsidiaries
√ Applicable□ Inapplicable
Fangda SOZN fails to meet the performance target in 2015 with an operation loss of about RMB90.9991 million. The Company has taken measures and signed the Share Repurchasing and Debt Payment Agreement, which will be reviewed at theShareholders’ Meeting in 2015. After the agreement comes into effect, the Company will no longer hold shares of Fangda SOZN, which will no longer be incorporated in the consolidation scope. The share repurchasing and debt payment issue will create an impact of RMB-1.44 million on the net profit in 2016. No further impact will be created.
20. Social responsibilities
√ Applicable□ Inapplicable
In the reporting period , the Company has positively assumed social responsibilities by: paying taxes RMB128 million, up22% year-on-year; donating RMB103,000 and investing RMB198,900 in environment protection, create nearly 10,000 jobs; inputting RMB1.8823 million in employee knowledge and skill training. The company has invested RMB105,200,000 to promote development of new draft, technology, product structure and patent
according to clean, safety and efficient production to make contribution for environmental protection.
China Fangda Group Co., Ltd. 2015 Annual Report Are the listed company and subsidiaries involved in a heavy-pollution industry defined by the national
environment protection department?
□ Yes√ No□ N/A
21. Information about theCompany‟s securities
Bonds publicly issued and listed in a securities exchange, immature or not fully paid by the approval date of the annual report
No
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 6 Changes in Share Capital and Shareholders
1. Changes in shares
1. Changes in shares
In share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Change (+,-)|||||After the change||
||||Issued||Transferre|||||
|||Proportio||Bonus|||||Proportio|
||Amount||new||d from|Others|Subtotal|Amount||
|||n||shares|||||n|
||||shares||reserves|||||
|I. Shares with trade||||||||||
||779,292|0.10%||||192,750|192,750|972,042|0.13%|
|restriction conditions||||||||||
|3. Other domestic shares|779,292|0.10%||||192,750|192,750|972,042|0.13%|
|Including: Shares held by||||||||||
||779,292|0.10%||||192,750|192,750|972,042|0.13%|
|domestic natural persons||||||||||
|II. Shares without trading|756,130,6|||||||755,937,8||
|||99.90%||||-192,750|-192,750||99.87%|
|limited conditions|13|||||||63||
||420,179,4|||||||419,986,6||
|1. Common shares in RMB||55.51%||||-192,750|-192,750||99.87%|
||25|||||||75||
|2. Foreign shares in domestic|335,951,1|||||||335,951,1||
|||44.39%||||0|0||44.39%|
|market|88|||||||88||
||756,909,9|||||||756,909,9||
|III. Total of capital shares||100.00%||||0|0||100.00%|
||05|||||||05||

Reasons
√ Applicable□ Inapplicable
In July 2015, Mr. Xiong Jianming, the chairman and CEO, increased his shareholding in the secondary market. Approval of the change
□ Applicable√ Inapplicable
Share transfer
□ Applicable√ Inapplicable
Impacts on financial indicators including basic and diluted earnings per share, net assets per share attributable to common shareholders of the company in the most recent year and period
□ Applicable√ Inapplicable
Others that need to be disclosed as required by the securities supervisor
□ Applicable√ Inapplicable
China Fangda Group Co., Ltd. 2015 Annual Report 2. Changes in conditional shares
√ Applicable□ Inapplicable
In share
||||||||
|-|-|-|-|-|-|-|
||Conditional||||||
|||||Conditional|||
||shares at|Released this|Increased this||Reason of||
|Shareholder||||shares at end of||Date of releasing|
||beginning of the|period|period||condition||
|||||the period|||
||period||||||
||||||Senior||
|Xiong Jianming|752,078|0|192,750|944,828|management|None|
||||||share||
|Total|752,078|0|192,750|944,828|--|--|

 2. Share placing and listing
1. Securities issuance (excluding preference shares) during the report period
□ Applicable√ Inapplicable
2. Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable√ Inapplicable
3. Currentemployees‟ shares
□ Applicable√ Inapplicable
3. Shareholders and the substantial controller of the Company
1. Shareholders and shareholding
In share
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Total number of||
|||Total number of||||shareholders of||
|Number of||||Number of||||
|||ordinary share||||preference shares||
|shareholders of||||shareholders of||||
|||shareholders at||||of which voting||
|common shares||||preferred stocks of||||
||47,030|the end of the|40,846||0|rights resumed at|0|
|at the end of||||which voting rights||||
|||month before the||||the end of the||
|the report||||recovered in the||||
|||disclosure date of||||month before the||
|period||||report period||||
|||the annual report||||disclosure date of||
|||||||the annual report||
|Shareholders holding 5% of the Company's shares or top-10 shareholders||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Number of||||Pledging or freezing||
||||shares held|Change in|||||
||||||Conditi|Amount of|||
||Properties of|Sharehold|at the end|the|||||
|Shareholder|||||onal|shares without|||
||shareholder|ing|of the|reporting|||Share status|Amount|
||||||shares|sales restriction|||
||||reporting|period|||||
||||period||||||
|Shenzhen BanglinTechnologiesDevelopment Co.,Ltd.|Domesticnon-state legalperson|9.09%|68,774,273|0||68,774,273|||
||||||||Pledged|39,000,000|
|ShengjiuInvestment Ltd.|Foreign legalperson|6.32%|47,861,730|10,016,139||47,861,730|||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson|4.44%|33,634,890|31,910,039||33,634,890|||
|China ForeignEconomic andTrade Trust Co.,Ltd. – ForeignTradeTrust·AnyingJinpeng Phase 1SecuritiesInvestmentCollective Program|Others|2.44%|18,433,428|18,433,428||18,433,428|||
|Shenzhen ShiliheInvestment Co.,Ltd.|Domesticnon-state legalperson|2.36%|17,860,992|0||17,860,992|||
|Huabao Trust Co.,Ltd. – TiangaoCapital No.1 TrustProgram|Others|2.35%|17,782,782|17,782,782||17,782,782|||
|Zhou Shijian|Domestic naturalperson|2.14%|16,213,500|-4,909,981||16,213,500|||
|HaitongInternationalSecuritiesCompanyLimited-AccountClient|Foreign legalperson|1.62%|12,267,968|12,267,968||12,267,968|||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Huang Jupei|Domestic naturalperson|1.41%|10,679,800|-19,321,200|10,679,800|||
|ShenwanHongyuanSecurities (HongKong) Co., Ltd.|Foreign legalperson|1.13%|8,533,186|8,533,186|8,533,186|||
|A strategic investor or ordinary legal||||||||
|person becomes the Top10 shareholder||None||||||
|due a stock issue.||||||||
|||Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and||||||
|||Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology||||||
|Notes to top ten shareholder||||||||
|||Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd. are related parties. The||||||
|relationship or "action in concert"||||||||
|||Company is not notified of other action-in-concert or related parties among the other||||||
|||holders of current shares.||||||
|Top 10 holders of unconditional shares||||||||
|||||||Category of shares||
|Shareholder||Amount of shares without sales restriction||||Category of||
||||||||Amount|
|||||||shares||
|Shenzhen Banglin TechnologiesDevelopment Co., Ltd.||68,774,273||||RMB common||
||||||||68,774,273|
|||||||shares||
|Shengjiu Investment Ltd.||47,861,730||||Foreign shares||
|||||||listed in domestic|47,861,730|
|||||||exchanges||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED||33,634,890||||Foreign shares||
|||||||listed in domestic|33,634,890|
|||||||exchanges||
|China Foreign Economic and TradeTrust Co., Ltd. – Foreign TradeTrust·Anying Jinpeng Phase 1Securities Investment CollectiveProgram||18,433,428||||||
|||||||RMB common||
||||||||18,433,428|
|||||||shares||
|Shenzhen Shilihe Investment Co., Ltd.||17,860,992||||RMB common||
||||||||17,860,992|
|||||||shares||
|Huabao Trust Co., Ltd. – TiangaoCapital No.1 Trust Program||17,782,782||||RMB common||
||||||||17,782,782|
|||||||shares||
|Zhou Shijian||16,213,500||||RMB common||
||||||||16,213,500|
|||||||shares||
|Haitong International SecuritiesCompany Limited-Account Client||12,267,968||||Foreign shares||
|||||||listed in domestic|12,267,968|
|||||||exchanges||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Huang Jupei|10,679,800|RMB common||
||||10,679,800|
|||shares||
|Shenwan Hongyuan Securities (HongKong) Co., Ltd.|8,533,186|Foreign shares||
|||listed in domestic|8,533,186|
|||exchanges||
|No action-in-concert or related parties|Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and|||
|among the top10 unconditional|Shengjiu Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology|||
|shareholders and between the top10|Development Co., Ltd. and Shenzhen Shilihe Investment Co., Ltd. are related parties. The|||
|unconditional shareholders and the|Company is not notified of other action-in-concert or related parties among the other|||
|top10 shareholders|holders of current shares.|||
||Zhou Shijian holds 16,213,500 shares of the Company through the client credit trade|||
|Top-10 common share shareholders||||
||securities account of GF Securities; Huang Jupei holds 10,678,800 shares of the Company|||
|participating in margin trade||||
||through the client credit trade securities account of GF Securities;|||

Agreed re-purchasing by theCompany’s top 10 shareholders of common shares and top 10 shareholders of unconditional common shares in the report period
□ Yes√ No
No agreed re-purchasing by theCompany’s top 10 shareholders of common shares and top 10 shareholders of unconditional common shares in the report period
2. Profile of the controlling shareholders
Shareholder nature: natural person holding
Type of shareholder: legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of controlling|||||
||representative/respon|Date of establishment|Organization code|Main business|
|shareholder|||||
||sible person||||
|||||Industrial investment,|
|Shenzhen Banglin||||developing of electronic|
|Technologies Development|Chen Jinwu|07.06.01|914403007298400552|products, technical|
|Co., Ltd.||||consulting, domestic|
|||||commerce, material trading|
|Stock ownership of other|||||
|domestic and overseas listed|||||
|company controlled or whose|None||||
|shares are held by controlling|||||
|shareholders|||||

Changes in the controlling shareholder in the reporting period
□ Applicable√ Inapplicable
No change in the controlling shareholder in the report period
China Fangda Group Co., Ltd. 2015 Annual Report 3. Substantial controller of the Company
Nature of actual controller: domestic natural person
Type of actual controller: natural person
||||
|-|-|-|
|Name of substantial controller|Nationality|Right of residence in another country or region|
|Xiong Jianming|Chinese|Yes|
|Job and position|Chair of the Board and president of the Company||
|Profiles of domestic and overseas listed|||
|companies in which the controller held|The controller held no share in other listed companies in the last ten years.||
|shares|||

Change in the actual controller in the report period
□ Applicable√ Inapplicable
No change in the actual shareholder in the report period
Chart of the controlling relationship
Controlling over the Company by the substantial controller through trust or other asset management
□ Applicable√ Inapplicable
4. Other legal person shareholders with over10% of total shares
□ Applicable√ Inapplicable
5. Conditional decrease of shareholding by controlling shareholder, actual controller, reorganizer and other entities
□ Applicable√ Inapplicable
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 7 Preferred Shares
□ Applicable√ Inapplicable
The Company had no preferred share in the report period.
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 8 Particulars about the Directors, Supervisors, Senior Management and Employees
1. Changes in shareholding of Directors, Supervisors and Senior Management
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Number|||||
|||||||||Increased|Decrease|Other|Number|
||||||||of shares|||||
||||||Starting|End date||shares in|d shares|increase|of shares|
||||||||held at|||||
|Name|Position|Job status|Sex|Age|date of|of the||this|in this|and|held at|
||||||||beginning|||||
||||||the term|term||period|period|decrease|end of the|
||||||||of the|||||
|||||||||(share)|(share)|(share)|period|
||||||||period|||||
||Chairman|||||||||||
|Xiong||||||||||||
||,|In office|M|58|20.11.95|31.03.17|1,002,771|257,000|0|0|1,259,771|
|Jianming||||||||||||
||president|||||||||||
||Director,|||||||||||
|Wang||||||||||||
||vice|In office|M|58|20.11.95|31.03.17|36,286|0|0|0|36,286|
|Shengguo||||||||||||
||president|||||||||||
|Xiong||||||||||||
||Director|In office|M|47|16.04.99|31.03.17||||||
|Jianwei||||||||||||
|Zhou||||||||||||
||Director|In office|M|53|09.04.07|31.03.17||||||
|Zhigang||||||||||||
||Secretary|||||||||||
|Zhou||||||||||||
||of the|In office|M|53|22.10.03|31.03.17||||||
|Zhigang||||||||||||
||Board|||||||||||
||Independ|||||||||||
|Guo||||||||||||
||ent|In office|M|50|31.03.14|31.03.17||||||
|Wanda||||||||||||
||director|||||||||||
||Independ|||||||||||
|Lin Bin|ent|In office|M|53|31.03.14|31.03.17||||||
||director|||||||||||
||Senior|||||||||||
|Deng Lei||In office|M|37|16.02.16|31.03.17||||||
||partner|||||||||||
||Superviso|||||||||||
||ry|||||||||||
|Zhen Hua|Committe|In office|F|56|27.05.05|31.03.17||||||
||e meeting|||||||||||
||convener|||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Yin|Superviso|||||||||||
|||In office|M|47|31.03.14|31.03.17||||||
|Changjian|r|||||||||||
|Zen|Superviso|||||||||||
|||In office|M|46|31.03.14|31.03.17||||||
|Xiaowu|r|||||||||||
||Vice|||||||||||
|Lin Kebin|president|In office|M|38|06.06.08|31.03.17||||||
||and CFO|||||||||||
|Wei|Vice|||||||||||
|||In office|M|47|29.07.11|31.03.17||||||
|Yuexing|president|||||||||||
||Independ|||||||||||
|Huang||||||||||||
||ent|Resigned|M|53|25.03.11|16.02.16||||||
|Yaying||||||||||||
||director|||||||||||
|Total|--|--|--|--|--|--|1,039,057|257,000|0|0|1,296,057|

 2. Changes in the Directors, Supervisors and Senior Executives
||||||
|-|-|-|-|-|
|Name|Job|Type|Date|Reason|
||Independent||||
|Huang Yaying||Resigned|16.02.16|Huang Yaying has resigned due to person reasons|
||director||||

3. Office Description
Professional background, work experience and main duties in the Company of existing directors, supervisors and senior management
Mr. Xiong Jianming: PHD Management; senior engineer; part-time professor of Beijing Institute of Civil Engineering and Architecture and Nanchang University. He was once employed by Jiangxi Provincial Machinery Design Academe, Administration Bureau of Shekou District of Shenzhen government, etc, deputy to the 10thPeople’s Congress of Guangdong Province, deputy to the
2nd
and
3rd
People’s Congress of Shenzhen City. He is now the chairman and CEO of the Company, representative of the
6th
Shenzhen People's Congress, president of the Shenzhen Semi-conductor Lighting Industry Promotion Association, chairman of Shenzhen Jiangxi
Commerce Chamber, chairman of Shenzhen Nanshan District Industry and Commerce Association and honorary chairman of Shenzhen Nanshan District Charity.
Mr. Wang Shengguo: Master degree; Visiting Scholar from University of Essen, senior engineer. He once held such positions as Chief Engineer of Design Institute of the
2nd
Heavy Machinery factory of Machinery Industrial Ministry. Mr. Wang is now a Director and Vice President of the Company.
Mr. Xiong Jianwei: MBA. He is a director of the Company and chairman of the board of directors of Fangda Jianke.
Mr. Zhou Zhigang,bachelor’s degree. He is currently a Director, Secretary of Board, and head of the Securities Dept and HR Dept.
Mr. Guo Wanda: He is an Economics Ph. D and researcher. As the executive deputy president of China
Development Institute, he has studied in macro-economy, industry policies and enterprise development strategies
for years and provided consulting services. He is an independent director of the Company.
China Fangda Group Co., Ltd. 2015 Annual Report Lin Bin is an economics (accounting) Ph. D. He is a professor of the Accounting Department of the
Management School of Sun Yat-Sen University, director of the Enterprise and Non-Profit Organization Research Center of Sun Yat-Sen University, and was once the director of the Accounting Department of Sun Yat-Sen University and MPACC Education Center. He is a member of the consultant panel of the enterprise internal control standard committee of the Ministry of Finance, deputy president of Guangdong Auditor Society, vice president of the Guangdong Internal Auditor Association, and independent director of the company.
Mr. Deng Lei is a law Ph. D and post-doctor in the financial securities law of Shenzhen Stock Exchange. He was once the vice director of Corporate Law Affair Commission of Shenzhen Lawyer Association and a senior partner of Guangdong China Commercial Law Firm.
Ms. Zhenghua holds abachelor’s degree and is the convener of supervisory meetings of the Company. Yin Changjian holds bachelor's degree and is a CPA. He was once the vice general manager of the Beijing branch of Fangda Jianke and is the deputy director of theCompany’s Supervisory Dept and staff representative supervisor.
Zeng Xiaowu holds a master's degree and is a senior engineer. He was once the vice general manager of Fangda Jianke, president of the design institute. He is now the chief engineer of Fangda Jianke and supervisor of the Company.
Mr. Lin Kebin holds abachelor’s degree. At presenthe’s the Vice President and CFO of the Company. Mr. Wei Yuexing holds a Bachelor degree and is a senior engineer. He is the vice president of the Company and general manager of Fangda Jianke.
Offices held at shareholders entities
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Whether any|
||||Starting date of|End date of the|remuneration is|
|Name|Shareholder entity|Office||||
||||the term|term|paid at the|
||||||shareholder entity|
|Xiong Jianming|Shengjiu Investment Ltd.|Chairman|06.10.11||No|
|Wang||||||
||Shenzhen Shilihe Investment Co., Ltd.|Chairman|19.10.06||No|
|Shengguo||||||
|Wang||General||||
||Shenzhen Shilihe Investment Co., Ltd.||29.09.03||No|
|Shengguo||manager||||
|Xiong Jianwei|Shenzhen Shilihe Investment Co., Ltd.|Director|12.06.01||No|
|Zhou Zhigang|Shenzhen Shilihe Investment Co., Ltd.|Director|19.10.06||No|
|Zhen Hua|Shenzhen Shilihe Investment Co., Ltd.|Supervisor|19.10.06||No|
|Office||||||
||None|||||
|description||||||

Offices held at other entities
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||Starting date ofthe term||Whether any|
|||||End date of the|remuneration is|
|Name|Entity name|Office||||
|||||term|paid at the|
||||||shareholder entity|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
||General development research institute|Standing vice|||
|Guo Wanda|||01.07.07|Yes|
||(Shenzhen, China)|president|||
||Shenzhen Baode Technology Group Co.,|Independent|||
|Guo Wanda|||06.06.08|Yes|
||Ltd.|director|||
||Management School of Sun Yat-Sen||||
|Lin Bin||Professor|01.10.98|Yes|
||University||||
||Guangzhou Baiyun International Airport|Independent|||
|Lin Bin|||27.06.13|Yes|
||Company Limited|director|||
|||Independent|||
|Lin Bin|Guangzhou Pearl River Beer Co., Ltd.||19.06.12|Yes|
|||director|||
|Deng Lei|Guangdong China Commercial Law Firm|Senior partner|01.11.15|Yes|
|||Independent|||
|Deng Lei|Guangdong Chaohua Technology Co., Ltd.||11.11.15|Yes|
|||director|||
|||Independent|||
|Deng Lei|Wuhan Gaode Infrared Co., Ltd.||23.04.15|Yes|
|||director|||
|||Independent|||
|Deng Lei|Shenzhen Haimingrun Industrial Co., Ltd.||18.11.14|Yes|
|||director|||
|Office|||||
||The above-mentioned three are independent directors of the Company.||||
|description|||||

Penalties given by existing securities regulators on directors, supervisors and senior management and those who have resigned in the report period
□ Applicable√ Inapplicable
4. Remunerations of the Directors, Supervisors and Senior Executives
Decision making procedures, basis and actual payment of remunerations of the Directors, Supervisors and Senior Executives
Remuneration schemes for directors and supervisors are proposed by the Remuneration and Assessment
Committee of the Board, and implemented upon approval of the Board and theShareholders’ Meetings; the remuneration schemes for executives are approved and implemented by the Board.
Remuneration for directors and supervisors are decided by theshareholders’ meeting. Remunerations for
executives are composed of wages and performance bonus as decided by the Board.
Payment on monthly basis
Remunerations of the Directors, Supervisors and Senior Executives of the Company During the reporting period In RMB10,000
||||||||
|-|-|-|-|-|-|-|
|||||||Remuneration|
||||||Total||
|Name|Position|Sex|Age|Job status||from related|
||||||remuneration||
|||||||parties|
|Xiong Jianming|Chairman,|M|58|In office|176.7|No|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||president||||||
||Director, vice||||||
|Wang Shengguo||M|58|In office|92.65|No|
||president||||||
|Xiong Jianwei|Director|M|47|In office|93.17|No|
||Director,||||||
|Zhou Zhigang|secretary of the|M|53|In office|67.81|No|
||Board||||||
||Independent||||||
|Huang Yaying||M|53|Resigned|8|No|
||director||||||
||Independent||||||
|Guo Wanda||M|50|In office|8|No|
||director||||||
||Independent||||||
|Lin Bin||M|53|In office|8|No|
||director||||||
||Supervisory||||||
|Zhen Hua|Committee|F|56|In office|26.38|No|
||meeting convener||||||
|Yin Changjian|Supervisor|M|47|In office|35|No|
|Zen Xiaowu|Supervisor|M|46|In office|60.24|No|
||Vice president||||||
|Lin Kebin||M|38|In office|77.09|No|
||and CFO||||||
|Wei Yuexing|Vice president|M|47|In office|94.84|No|
|Total|--|--|--|--|747.88|--|

 Equity incentive programs provided for the Directors, Supervisors and Senior Executives of the Company during the reporting period
□ Applicable√ Inapplicable
5. Employees
1. Staff number, professional composition and education
|||
|-|-|
|Staff number of the parent|65|
|Staff number of major subsidiaries|1,531|
|Total staff number|2,327|
|Number of employees receiving remuneration in the period|2,327|
|Resigned and retired staff number to whom the parent and major||
||0|
|subsidiaries need to pay remuneration||
|Professional composition||
|Categories of professions|Number of people|

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Production|840|
|Sales & Marketing|110|
|Technicians|1,267|
|Finance & Accounting|66|
|Executive|44|
|Total|2,327|
|Education||
|Categories of education|Number of people|
|High school or below|1,124|
|College diploma|412|
|Bachelor|766|
|Master’s degree|23|
|Doctor’s degree|2|
|Total|2,327|

 2. Remuneration policy
Staff remuneration policy: TheCompany’s staff remuneration comprises post wage, performance wage, allowance and annual bonus. The Company has set up an economic responsibility assessment system according to the annual operation target and responsibility indicators for all departments. The performance wage is determined by the economic indicators, management indicators, optimization indicators and internal control. The annual bonus is determined by the Company's annual profit and fulfillment of targets set for various departments. The staff remuneration and welfare will be adjusted according to theCompany’s business operation and changes in the local standard of living and price index.
3. Training program
Staff training plan: The Company has paid continuous attention to training and development of the staff and introduces innovative learning as part of the long-term strategy. We provide training programs through different channels and in different fields for different employees will help them fulfill their works, including new staff training, on-the-job training, operation and management training programs. These programs have largely elevated capabilities of the staff and underpin the success of the Company.
4. Labor outsourcing
√ Applicable□ Inapplicable
|||
|-|-|
|Total number of hours of labor outsourcing|10,051,369|
|Total remuneration paid for labor outsourcing (RMB)|301,541,074.02|

China Fangda Group Co., Ltd. 2015 Annual Report Chapter 9 Corporate Governance
1. Overview
During the report period, the Company strictly complied with the Company Law, Securities Law,
Governance Standards for Listed Companies, Shenzhen Stock Exchange Share Listing Rules, Operation
Regulations for Listed Companies in the Main Board of Shenzhen Stock Exchange, continued to improve the legal person governance structure and has formulated a series of internal management systems covering various aspects. The Company has set up a comprehensive and effective internal control system in important decision making, related transaction decision making, financial management, HR management, administration, purchase, production and sales management, confidentiality and information disclosure.
Major difference between the actual corporate governance and regulations on corporate governance of listed companies issued by CSRC
□ Yes√ No
There is no major difference between the actual corporate governance and regulations on corporate governance of listed companies issued by CSRC.
2. Independence of the Company from the controlling shareholder in aspects of businesses, personnel, assets, organizations, and accounting
The Company is completely separated from the controlling shareholder in aspects of businesses, personnel, assets, organizations and accounting. The Company has its own completed businesses and capacity of independent business operation.
In the aspect of business: the Company has its own purchasing, production, sales, and customer service system which performing independently. There is not any material related transactions occurred with the controlling shareholders.
In personnel: The labor management, personnel and salary management are operated independently from the controlling shareholder. The senior managements take salaries from the Company and none of them takes senior management position in the controlling party.
In assets: The Company owns its production, supplementary production system and accessory equipments independently, and possesses its own industrial properties, non-patent technologies, and trademark.
In organization: The production and business operation, executive management, and department setting are completely independent from the controlling shareholder. No situation of combined office exists. The Company adjusts its organizing structure only for its own practical requirement of development and management.
In accounting: The company has its own independent accounting and auditing division, established
independent and completed accounting system and management rules, has its own bank account, and exercise its liability of taxation independently.
China Fangda Group Co., Ltd. 2015 Annual Report 3. Competition
□ Applicable√ Inapplicable
4. Annual and extraordinary shareholder meetings held during the report period
1. Annual shareholder meeting during the report period
|||||||
|-|-|-|-|-|-|
||||||Index for|
|||Participation of||||
|Meeting|Type||Date of meeting|Date of disclosure|information|
|||investors||||
||||||disclosure|
||||||Notice on|
|1st Extraordinary|Extraordinary||||Resolutions of the 1st|
|Shareholders’|shareholders’|0.18%|13.01.15|14.01.15|Extraordinary|
|Meeting 2015|meeting||||Shareholders’|
||||||Meeting in 2015|
||||||Notice on|
|2014 Annual|||||Resolutions of the|
||Annual shareholders’|||||
|Shareholders’||0.01%|17.04.15|18.04.15|Annual|
||meeting|||||
|Meeting|||||Shareholders’|
||||||Meeting in 2014|
||||||Notice on|
||||||Resolutions of the|
|2nd Extraordinary|Extraordinary|||||
||||||2nd Extraordinary|
|Shareholders’|shareholders’|0.02%|17.07.15|18.07.15||
||||||Shareholders’|
|Meeting 2015|meeting|||||
||||||Meeting in 2015|
||||||(2015-34)|
||||||Notice on|
||||||Resolutions of the|
|3rd Extraordinary|Extraordinary|||||
||||||3rd Extraordinary|
|Shareholders’|shareholders’|0.02%|23.11.15|24.11.15||
||||||Shareholders’|
|Meeting 2015|meeting|||||
||||||Meeting in 2015|
||||||(2015-56)|
||||||Notice on|
||||||Resolutions of the|
|4th Extraordinary|Extraordinary|||||
||||||4th Extraordinary|
|Shareholders’|shareholders’|0.04%|10.12.15|11.12.15||
||||||Shareholders’|
|Meeting 2015|meeting|||||
||||||Meeting in 2015|
||||||(2015-62)|

China Fangda Group Co., Ltd. 2015 Annual Report The participation percentage by investors means the percentage of investors in total shareholder number. Investors mean natural person taking no office in the Company.
2. Shareholders of preference shares of which voting right resume convening an extraordinaryshareholders‟ meeting
□ Applicable√ Inapplicable
5. Performance of independent directors during the report period
1. Independentdirectors‟ presenting of board meetings andshareholders‟ meetings in the report period
||||||||
|-|-|-|-|-|-|-|
|Independent directors’ presenting of board meetings|||||||
||Time of board|||||Absent for two|
|Name of independent||Presented|Presented by|Presented by|||
||meetings should||||Absent|consecutive|
|director||personnally|telecom|proxy|||
||have attended|||||meetings|
|Huang Yaying|10|4|4|2|0|No|
|Guo Wanda|10|4|5|1|0|No|
|Lin Bin|10|5|4|1|0|No|
|Time of presence by independent|||||||
|||10|||||
|directors at shareholders’ meetings|||||||

2. Objection raised by independent directors
Any objection raised by independent directors against theCompany’s related issues
□ Yes√ No
Independent directors made no objection on related issued of the Company in the report period.
3. Other statement for performance of independent directors
Adoption of suggestion proposed by independent directors
√ Yes□ No
Statement for suggestion adopted or not by the Company
(1) During the report period, theCompany’s independent directors have paid attention to theCompany’s operation and performed their duties independent in accordance with applicable laws, regulations and Articles of Association of the Company and have proposed many professional suggestions for improving theCompany’s system and routine operation decision-making. During the report period, independent directors have made independent and just opinion on issues that need independentdirectors’ opinions, playing positive roles in improving theCompany’s supervisory system and protecting the rights and interests of the Company and
shareholders.
(2) Independent opinions issued in 2015
||||
|-|-|-|
|Date|Issue|Opinion|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|||type|
|25.03.15|Use of working capital by controlling shareholder and other associatesin 2014, conditions about guarantees made by the Company,self-evaluation report of internal control in 2014, profit distributionpre-plan in 2014, engagement of auditor in 2015, remuneration ofdirectors and senior management in 2014|In favor|
|03.04.15|Proposal of reducing investment of capital raised from private shareissuing in projects||
|26.08.15|Cancelling the private A-share issuance plan in 2014, accounts betweencontrolling shareholder and other associates in the first half of 2015 andconditions about external guarantees||
|23.11.15|About 2015 private share issuance pre-plan and report on the use offund raised previously||

6. Performance of specific committees under the Board
(1) Performance of the Development Strategy Committee
During the report period, the Development Strategy Committee of the Company has performed its duties in accordance with the Working Regulations for Development Strategy Committee and played its role in the decision-making process of the Company. Two meetings were convened and details are disclosed as follows: 1. On 25.03.15, the Company held the
2nd
meeting of the
7th
Development Strategy Commission to listen to the report on production and operation and production and operation plan for 2015.
2. On 27.08.15, the
3rd
meeting of the Development Strategy Committee of the
7th
term of the Board was held to view theCompany’s production and operation in the first half of 2015 and studied the fulfillment of the business plan in the first half of the year and places to be improved in the second half.
(2) Performance of the Auditing Committee
During the report period, five Auditing Committee meetings are held to review issues including the
arrangement of audit, regular financial reports, engaging the CFA, and use of the fund raised. Details of the meetings are disclosed as follows:
1. On 23.03.15, the
4th
meeting of the Auditing Committee of the
7th
term of the Board was held to review the financial statements with the initial opinion issued by the CFA for 2014 and approve the auditor report issued by the CFA. After the CFA issued to finalauditor’s opinion, the Auditing Committee submitted the resolution on the annual financial statements to the Board and issued the summary report on the auditing of the CFA for this year.
2. On March 25, 2015, the Company held the
5th
audit committee meeting of the
7th
Board of Directors to listen to the 2014 financial and internal audit report and approved (1) audited 2014 financial statements; (2) proposal of engaging the auditor in 2015; (3) 2015 internal audit plan; (4) internal control self-evaluation report in 2014
The audit committee suggests that the internal audit body should increase communication with the audit committee to help the committee better under the Company's condition and make higher requirements on the audit quality.
3. On 17.04.15, the
6th
meeting of the Auditing Committee of the
7th
term of the Board approved the
unaudited Q1 financial statements.
4. On 26.08.15, the
7th
meeting of the Auditing Committee of the
7th
term of the Board on which the
China Fangda Group Co., Ltd. 2015 Annual Report unaudited interim financial statements were approved.
5. On 26.08.15, the
8th
meeting of the Auditing Committee of the
7th
term of the Board on which the
unaudited Q3 financial statements were approved.
(3) Performance of the Remuneration and Assessment Committee
During the report period, the Remuneration and Assessment Committee issued the Working Regulations for Remuneration and Assessment Committee. On the 2nd meeting of the Remuneration and Assessment Committee of the
6th
term of the Board held on 25.03.15, the committee reviewed the main financial indicators and business performance in 2014 and reviewed performance of duties by theCompany’s directors and senior executives. The committee believes that the directors and senior executives have worked diligently and fulfilled the business target and other tasks in 2014. The remunerations for directors, supervisors and senior executives disclosed in the 2012 annual report comply with theCompany’s remuneration policy.
7. Performance of Supervisory Committee
(1) Risks for the Company discovered by the Supervisory Committee
□ Yes√ No
No disagreement with supervisory issues by the Supervisory Committee during the report period.
(2) The SupervisoryCommittee’ Work Report 2015
In 2015, the Supervisory Committee performed its duties and obligations in supervision and protectshareholders’ and theCompany’s interests in accordance with the Company Law, Share Listing Rules, Articles of Association and Rules of the Procedure of the Supervisory Committee. The 2015 supervisory committee's work plan is as follows:
1. Opinions
(1) Legal compliance
In the report period, the Company has been operated in accordance with law. The convening of meeting of the Board and the decision-making process are compliant with law, regulations and Articles of Association; the internal control system is solid. Directors and senior management have performed their obligations. No violation against law, regulations, Articles of Association and interests of the Company and shareholders was discovered. (2) Financial condition
During the period, the accounting management has been compliant with the Accounting Law, Enterprise Accounting Standard. No false, misleading statement or significant omission was found in financial statements. The financial reports of the Company reflect theCompany’s financial position, operation performance, cash flows and major risks truthfully, accurately and completely. The CPA has issued the standardauditor’s report in 2015, which is objective, fair and truthful. It reflects theCompany’s financial position and operation performance. (3) Implementation of internal control
The design and operation of the internal control is effective and meets theCompany’s management and development requirements. It can ensure the truthfulness, lawfulness, completeness of the financial materials and ensure the safety and completeness of theCompany’s property. In 2015, there was no violation by the Company against the Operation Regulations for Listed Companies in the Main Board of Shenzhen Stock Exchange and theCompany’s internal control system. The 2015 Internal Control Self-evaluation Report truthfully and objectively reflects the establishment, implementation and improvement of theCompany’s internal control system. There are no significant or important problems in the financial and non-financial reports in the report period.
2. Meetings and resolutions of the supervisory meeting in the report period:
Six meetings were held in 2015, all of which are on-site meetings. All proposal were approved and disclosed
China Fangda Group Co., Ltd. 2015 Annual Report as required:
||||||
|-|-|-|-|-|
|No.|Meeting|Date|Conveningmethod|Topic|
|1|6th meeting ofthe 7thSupervisoryCommittee|25.03.15|On-site|1. Reviewing the Company’s 2014 Supervisory Committee’sWork Report;2. Reviewing the Company’s 2014 Annual Report and Summary;3. Reviewing the Company’s 2014 Financial Settlement Report;4. Reviewing the Company’s Proposal of Profit Distribution in2014;5. Reviewing the Company’s Proposal of Engaging Auditor for2015;6. Reviewing the Company’s 2014 Internal ControlSelf-evaluation Report;7. Reviewing the Company’s Report on Deposit and Use ofRaised Fund in 2014;|
|2|7th meeting ofthe 7thSupervisoryCommittee|03.04.15|On-site|1. Reviewing the Company’s Proposal of Decreasing the Fund tobe Raised by the Private Share Issuance Plan;2. Reviewing the Company’s Proposal of Private A-shareIssuance Plan (adjusted);3. Reviewing the Company’s Proposal of Feasibility Report of thePrivate A-share Issuance Fund Usage;4. Reviewing the Company's Proposal of Private A-share IssuancePre-plan (adjusted in April 2015)|
|3|8th meeting ofthe 7thSupervisoryCommittee|17.04.15|On-site|Reviewing the 2015 Q1 Report and Text;|
|4|9th meeting ofthe 7thSupervisoryCommittee|27.08.15|On-site|1. Reviewing the 2015 Interim Report and Summary;2. Reviewing the Proposal of Cancelling the Private A-shareIssuance Pre-plan for 2014|
|5|10th meetingof the 7thSupervisoryCommittee|22.10.15|On-site|Reviewing the 2015 Q3 Report and Text;|

China Fangda Group Co., Ltd. 2015 Annual Report 1. Reviewing Proposal of Compliance with Private Share Issuance Conditions;
2. Reviewing the Proposal of Private A-share Issuance Plan; 3. Reviewing the Proposal of Feasibility Report of the Private 11th meeting
A-share Issuance Fund Usage;
of the 7th
6 23.11.15 On-site 4. Reviewing the Proposal of Private A-share Issuance Pre-plan in Supervisory
2015;
Committee
5. Reviewing the Proposal of Authorizing the Board of Directors to Handle All Issues Related to the Private Share Issuance; 6. Reviewing the Proposal of Usage Report of Previously Raised Fund
8. Assessment and motivation of senior executives
The Company has implemented a remuneration system that combines post wage and performance bonus. The wages and bonus are determined by on the assessment of seniorexecutives’ innovation capabilities, general quality, performance, fulfillment of profit and payment collection targets in the Implementation Regulations for 2015 Supervisory and Management Department Target Management and Assessment and Implementation Regulations for 2015 Subordinate Unit Assessment.
9. Internal control
1. Major problems in internal control discovered in the report period
□ Yes√ No
2. Internal control self-evaluation report
||||
|-|-|-|
|Date of disclosure of the internal control|||
||26.04.16||
|evaluation report|||
|Disclosure of the internal control|||
||www.cninfo.com.cn||
|evaluation report|||
|Percentage of assets in the evaluation|||
|scope in the total assets in the consolidated|98.95%||
|financial statements|||
|Percentage of operation income in the|||
|evaluation scope in the total operation|||
||100.00%||
|income in the consolidated financial|||
|statements|||
|Standard|||
|Type|Financial report|Non-financial report|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|||I. The following condition indicates|
||1. The following problems are considered|significant problems in the internal|
||major problems: 1. Non-effective control|control of non-financial reports 1.|
||environment; 2. corrupt practice by directors,|Serious violation against national laws,|
||supervisor and senior management, causing|regulations or specifications; 2. Serious|
||substantial loss and impacts for the|business system problems and system|
||Company; 3. Substantial mistakes in the|ineffectiveness; 3. Major or important|
||financial statements in the period discovered|problems cannot be corrected; 4. Lack of|
||by the CPA, which are not discovered by the|internal control and poor management; 5.|
||internal control; 4. Ineffective supervision of|Loss of management personnel or key|
||the internal control by the Company’s|employees; 6. Safety and environmental|
||auditing department2. The following|accidents that cause major adverse|
||problems are considered significant|impacts; 7. Other situations that cause|
|Standard|problems: 1 accounting policies are selected|major adverse impacts on the Company.|
||and used without complying to widely|II. The following situations indicate that|
||accepted accounting standards; 2. No|there may be significant problems with|
||anti-corrupt and important balance system|the internal control: 1. business system|
||and control measures are taken; 3. Separate|problems and system ineffectiveness; 2.|
||or multiple problems in the preparation of|Major or important problems cannot be|
||financial reports, which are serious enough|corrected; 3. Other situations that cause|
||to affecting the truthfulness and accuracy of|major adverse impacts on the|
||the reports; no control system is established|Companies. The following situation|
||and no related compensation system is|indicate likely normal problems in the|
||implemented for accounts of irregular or|internal control: 1. Problems in the|
||special transactions3. Other problems are|general business system; 2. Normal|
||considered normal problems.|problems in the internal control|
|||supervision cannot be correctly promptly.|
||1. Significant problem: 1. Mistakes affecting||
||5% and more of the pre-tax profit and more||
||than RMB5 million in the consolidated||
||statements; 2. Mistakes affecting 5% and||
||more of the consolidated assets and more||
|||See the recognition standard of the|
||than RMB5 million2. Important problem: 1.||
|Standard||internal control problems for financial|
||Mistakes affecting 1%-5% of the pre-tax||
|||statements|
||profit in the consolidated statements; 2.||
||Mistakes affecting 1%-5% the consolidated||
||assets.III. Normal problem: 1. Mistakes||
||affecting less than 1% of the pre-tax profit||
||and total assets of the consolidate statements.||
|Significant problems in financial|||
||0||
|statements|||
|Significant problems in non-financial|||
||0||
|statements|||

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Important problems in financial statements|0|
|Important problems in non-financial||
||0|
|statements||

10. Internal control audit report
√ Applicable□ Inapplicable
|||
|-|-|
|Comments in the internal control audit report||
|We believe that China Fangda Group has maintained effective internal control on financial reports according to Basic Regulations||
|on Enterprise Internal Control and related regulations on 31.12.15.||
|Disclosure of internal auditor’s||
||Disclosed|
|report||
|Date of disclosure of the internal||
||26.04.16|
|control audit report||
|Source of disclosure of the internal||
||www.cninfo.com.cn|
|control audit report||
|Opinion type|Standard opinion auditor’s report|
|Problems in non-financial||
||No|
|statements||

Non-standard internal control audit report by the CFA
□ Yes√ No
Consistency between the internal control audit report and self-evaluation report
√ Yes□ No
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 10 Financial Statements
I.Auditor„s report
|||
|-|-|
|Type|Standard opinion auditor’s report|
|Issued on|22.04.16|
|Auditor|Grant Thornton (special general partner)|
|Report No.|Grant Thornton (2016) No.350ZA0156|
|CPA names|Xie Peiren, Hu Gaosheng|

Auditors’ Report
Auditor‟s report
Grant Thornton (2016) No.350ZA0156 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 31.12.15 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 2015, 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
China Fangda Group Co., Ltd. 2015 Annual Report 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 31.12.15, and the business performance and cash flow of year 2015.
Grand Thornton CPA CPA China Xie Peiren
(limited liability partnership)
CPA China Hu Gaosheng
Beijing, China April 22, 2016
II. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
31.12.15
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|400,953,337.32|212,430,798.87|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|14,546,206.58|13,410,790.00|
|current income account|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Derivative financial assets|||
|Notes receivable|97,247,660.56|83,325,725.70|
|Account receivable|1,405,718,134.89|1,105,242,251.46|
|Prepayment|30,057,063.90|29,234,231.49|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance|||
|contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|53,095,948.46|48,950,647.67|
|Repurchasing of financial assets|||
|Inventory|1,346,591,303.53|982,441,187.05|
|Assets held for sales|||
|Non-current assets due in 1 year|||
|Other current assets|11,395,718.05|234,986,107.72|
|Total current assets|3,359,605,373.29|2,710,021,739.96|
|Non-current assets:|||
|Loan and advancement provided|||
|Sellable financial assets|||
|Investment held until mature|||
|Long-term receivable|||
|Long-term share equity investment|10,489,680.93|11,048,660.43|
|Investment real estate|335,328,805.74|226,279,523.39|
|Fixed assets|462,648,998.51|489,714,684.63|
|Construction in process|15,134,390.90|341,749.17|
|Engineering materials|||
|Disposal of fixed assets|5,326.79|26,918.21|
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|95,062,982.48|98,947,331.09|
|R&D expense|||
|Goodwill|19,826,696.97|26,279,395.89|
|Long-term amortizable expenses|6,614,788.88|4,119,362.63|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Deferred income tax assets|65,926,810.52|52,616,656.38|
|Other non-current assets|93,503,956.39|43,323,878.63|
|Total of non-current assets|1,104,542,438.11|952,698,160.45|
|Total of assets|4,464,147,811.40|3,662,719,900.41|
|Current liabilities|||
|Short-term loans|1,147,957,775.82|1,100,000,000.00|
|Loans from Central Bank|||
|Deposit received and held for|||
|others|||
|Call loan received|||
|Financial liabilities measured at|||
|fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|303,527,639.63|227,266,485.57|
|Account payable|867,628,355.65|685,108,346.73|
|Prepayment received|130,574,319.85|122,285,231.14|
|Selling of repurchased financial|||
|assets|||
|Fees and commissions payable|||
|Employees’ wage payable|40,942,428.05|41,703,314.26|
|Taxes payable|67,533,433.70|58,696,926.25|
|Interest payable|3,241,834.43|2,055,911.11|
|Dividend payable|||
|Other payables|82,677,346.81|47,425,682.44|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liabilities due in 1|||
|||6,000,000.00|
|year|||
|Other current liabilities|98,425,600.00||
|Total current liabilities|2,742,508,733.94|2,290,541,897.50|
|Non-current liabilities:|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Long-term loans|300,395,582.06||
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable||6,000,000.00|
|Long-term employees’ wage|||
|payable|||
|Special payables|||
|Anticipated liabilities|1,921,446.51|5,859,045.98|
|Deferred earning|12,284,195.68|10,049,892.04|
|Deferred income tax liabilities|72,994,768.34|49,734,436.90|
|Other non-current liabilities|||
|Total of non-current liabilities|387,595,992.59|71,643,374.92|
|Total liabilities|3,130,104,726.53|2,362,185,272.42|
|Owner’s equity:|||
|Share capital|756,909,905.00|756,909,905.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||
|Capital reserves|79,099,619.14|79,099,220.38|
|Less: Shares in stock|||
|Other miscellaneous income|91,831.63|91,831.63|
|Special reserves|||
|Surplus reserves|51,123,554.51|48,842,080.76|
|Common risk provisions|||
|Retained profit|432,271,424.56|349,987,825.69|
|Total of owner’s equity belong to the|||
||1,319,496,334.84|1,234,930,863.46|
|parent company|||
|Minor shareholders’ equity|14,546,750.03|65,603,764.53|
|Total of owners’ equity|1,334,043,084.87|1,300,534,627.99|
|Total of liabilities and owner’s interest|4,464,147,811.40|3,662,719,900.41|

 Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
China Fangda Group Co., Ltd. 2015 Annual Report 2. Balance Sheet of the Parent Company
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|25,833,130.83|22,256,065.49|
|Financial assets measured at fair|||
|value with variations accounted into|||
|current income account|||
|Derivative financial assets|||
|Notes receivable|||
|Account receivable|345,960.74|511,660.60|
|Prepayment|67,893.61|50,903.86|
|Interest receivable|||
|Dividend receivable||28,639,627.17|
|Other receivables|375,591,349.76|254,604,163.79|
|Inventory|||
|Assets held for sales|||
|Non-current assets due in 1 year|||
|Other current assets|990,624.25|31,005,620.01|
|Total current assets|402,828,959.19|337,068,040.92|
|Non-current assets:|||
|Sellable financial assets|||
|Investment held until mature|||
|Long-term receivable|||
|Long-term share equity investment|967,700,649.13|1,130,674,559.01|
|Investment real estate|290,288,531.53|198,513,586.15|
|Fixed assets|57,647,245.73|60,145,112.89|
|Construction in process|||
|Engineering materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Gas & petrol|||
|Intangible assets|1,907,601.33|2,256,575.64|
|R&D expense|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Goodwill|||
|Long-term amortizable expenses|403,800.10|81,367.47|
|Deferred income tax assets|37,948,384.39|22,623,560.72|
|Other non-current assets|220,000,000.00|220,000,000.00|
|Total of non-current assets|1,575,896,212.21|1,634,294,761.88|
|Total of assets|1,978,725,171.40|1,971,362,802.80|
|Current liabilities|||
|Short-term loans|350,000,000.00|350,000,000.00|
|Financial liabilities measured at|||
|fair value with variations accounted into|||
|current income account|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|606,941.85|606,941.85|
|Prepayment received|748,421.47|832,772.45|
|Employees’ wage payable|1,868,710.30|1,956,875.76|
|Taxes payable|1,338,421.09|567,424.56|
|Interest payable|726,993.55|659,266.67|
|Dividend payable|||
|Other payables|155,183,721.49|270,281,330.40|
|Liabilities held for sales|||
|Non-current liabilities due in 1|||
|year|||
|Other current liabilities|98,425,600.00||
|Total current liabilities|608,898,809.75|624,904,611.69|
|Non-current liabilities:|||
|Long-term loans|||
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable|||
|Long-term employees’ wage|||
|payable|||
|Special payables|||
|Anticipated liabilities|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Deferred earning|||
|Deferred income tax liabilities|120,953,378.63|97,693,047.19|
|Other non-current liabilities|||
|Total of non-current liabilities|120,953,378.63|97,693,047.19|
|Total liabilities|729,852,188.38|722,597,658.88|
|Owner’s equity:|||
|Share capital|756,909,905.00|756,909,905.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||
|Capital reserves|38,598,963.76|38,598,565.00|
|Less: Shares in stock|||
|Other miscellaneous income|91,831.63|91,831.63|
|Special reserves|||
|Surplus reserves|51,123,554.51|48,842,080.76|
|Retained profit|402,148,728.12|404,322,761.53|
|Total of owners’ equity|1,248,872,983.02|1,248,765,143.92|
|Total of liabilities and owner’s interest|1,978,725,171.40|1,971,362,802.80|

 3. Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Total revenue|2,550,467,494.78|1,938,324,435.51|
|Incl. Business income|2,550,467,494.78|1,938,324,435.51|
|Interest income|||
|Insurance fee earned|||
|Fee and commission|||
|received|||
|2. Total business cost|2,548,503,653.53|1,867,564,531.44|
|Incl. Business cost|2,171,524,200.35|1,590,836,786.02|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Net insurance policy|||
|reserves provided|||
|Insurance policy dividend|||
|paid|||
|Reinsurance expenses|||
|Business tax and surcharge|33,616,556.60|22,855,639.99|
|Sales expense|75,264,951.18|44,684,306.70|
|Administrative expense|167,405,776.25|152,584,713.60|
|Financial expenses|50,672,490.05|29,165,058.80|
|Asset impairment loss|50,019,679.10|27,438,026.33|
|Plus: gains from change of fair value|||
||89,746,065.58|32,044,747.10|
|(“-“ for loss)|||
|Investment gains (“-“ for loss)|280,949.87|1,720,693.98|
|Incl. Investment gains from|||
||-358,979.50|1,054,094.88|
|affiliates and joint ventures|||
|Exchange gains (“-“ for loss)|||
|3. Operational profit (“-“ for loss)|91,990,856.70|104,525,345.15|
|Plus: non-operational income|29,668,110.25|16,281,459.18|
|Incl. Loss from disposal of|||
||51,130.66|3,162,999.40|
|non-current assets|||
|Less: non-operational expenditure|18,233,740.07|10,623,712.10|
|Incl. Loss from disposal of|||
||574,079.38|1,709,152.13|
|non-current assets|||
|4. Gross profit (“-“ for loss)|103,425,226.88|110,183,092.23|
|Less: Income tax expenses|35,209,871.61|17,493,747.57|
|5. Net profit (“-“ for net loss)|68,215,355.27|92,689,344.66|
|Net profit attributable to the owners|||
||107,272,369.77|96,998,429.76|
|of parent company|||
|Minor shareholders’ equity|-39,057,014.50|-4,309,085.10|
|6. After-tax net amount of other misc.|||
|incomes|||
|After-tax net amount of other misc.|||
|incomes attributed to parent's owner|||
|(1) Other misc. incomes that cannot|||
|be re-classified into gain and loss|||
|1. Change in net liabilities or|||
|assets due to re-measurement set benefit|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|program|||
|2. Shares enjoyed in other|||
|misc. incomes that cannot be reclassified|||
|into gain and loss by the invested entity|||
|under the equity law|||
|(2) Other misc. incomes that will be|||
|re-classified into gain and loss|||
|1. Shares enjoyed in other|||
|misc. incomes that cannot be reclassified|||
|into gain and loss by the invested entity|||
|under the equity law|||
|2．Change in the fair value of|||
|financial asset for sale|||
|3 Held-to-mature investment|||
|reclassified as gain and loss in the|||
|financial assets for sales|||
|4. Effective part in the gain|||
|and loss of arbitrage of cash flow|||
|5. Translation difference of|||
|foreign exchange statement|||
|6. Others|||
|After-tax net of other misc. income|||
|attributed to minority shareholders|||
|7. Total of misc. incomes|68,215,355.27|92,689,344.66|
|Total of misc. incomes attributable|||
||107,272,369.77|96,998,429.76|
|to the owners of the parent company|||
|Total misc gains attributable to the|||
||-39,057,014.50|-4,309,085.10|
|minor shareholders|||
|8. Earnings per share:|||
|(1) Basic earnings per share|0.14|0.13|
|(2) Diluted earnings per share|0.14|0.13|

 Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties merged during the previous period is RMB0.00.
Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
4. Income Statement of the Parent Company
In RMB
China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Turnover|29,977,446.65|29,609,371.13|
|Less: Operation cost|3,788,422.31|5,669,281.13|
|Business tax and surcharge|3,182,704.86|2,420,213.38|
|Sales expense|||
|Administrative expense|25,503,319.50|24,285,538.55|
|Financial expenses|10,990,269.77|13,398,214.90|
|Asset impairment loss|50,302,743.84|27,045,993.77|
|Plus: gains from change of fair|||
||91,774,945.38|34,897,632.10|
|value (“-“ for loss)|||
|Investment gains (“-“ for loss)|-292,417.86|29,805,392.25|
|Incl. Investment gains from|||
||-358,979.50|1,054,094.88|
|affiliates and joint ventures|||
|2. Operational profit (“-“ for loss)|27,692,513.89|21,493,153.75|
|Plus: non-operational income|3,063,312.33|2,441,486.71|
|Incl. Loss from disposal of|||
||3,581.20|22,719.41|
|non-current assets|||
|Less: non-operational expenditure|5,580.96|608,712.42|
|Incl. Loss from disposal of|||
||3,675.31|207,212.42|
|non-current assets|||
|3. Gross profit (“-“ for loss)|30,750,245.26|23,325,928.04|
|Less: Income tax expenses|7,935,507.77|-1,203,457.42|
|4. Net profit (“-“ for net loss)|22,814,737.49|24,529,385.46|
|5. After-tax net amount of other misc.|||
|incomes|||
|(1) Other misc. incomes that|||
|cannot be re-classified into gain and|||
|loss|||
|1. Change in net liabilities|||
|or assets due to re-measurement set|||
|benefit program|||
|2. Shares enjoyed in other|||
|misc. incomes that cannot be|||
|reclassified into gain and loss by the|||
|invested entity under the equity law|||
|(2) Other misc. incomes that will|||
|be re-classified into gain and loss|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|1. Shares enjoyed in other|||
|misc. incomes that cannot be|||
|reclassified into gain and loss by the|||
|invested entity under the equity law|||
|2．Change in the fair value|||
|of financial asset for sale|||
|3 Held-to-mature|||
|investment reclassified as gain and loss|||
|in the financial assets for sales|||
|4. Effective part in the gain|||
|and loss of arbitrage of cash flow|||
|5. Translation difference of|||
|foreign exchange statement|||
|6. Others|||
|6. Total of misc. incomes|22,814,737.49|24,529,385.46|
|7. Earnings per share:|||
|(1) Basic earnings per share|||
|(2) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Net cash flow from business|||
|operations:|||
|Cash received from sales of|||
||2,136,257,004.69|1,651,025,342.09|
|products and providing of services|||
|Net increase of customer deposits|||
|and capital kept for brother company|||
|Net increase of loans from central|||
|bank|||
|Net increase of inter-bank loans|||
|from other financial bodies|||
|Cash received against original|||
|insurance contract|||
|Net cash received from reinsurance|||
|business|||
|Net increase of client deposit and|||
|investment|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Increase in proposal of financial|||
|assets measured at fair value with|||
|variations accounted into current|||
|income account|||
|Cash received as interest,|||
|processing fee, and commission|||
|Net increase of inter-bank fund|||
|received|||
|Net increase of repurchasing|||
|business|||
|Tax refunded|2,935,298.45|1,735,709.16|
|Other cash received from business|||
||80,410,147.38|31,286,645.67|
|operation|||
|Sub-total of cash inflow from business|||
||2,219,602,450.52|1,684,047,696.92|
|operations|||
|Cash paid for purchasing products|||
||2,044,378,497.19|1,796,240,670.15|
|and services|||
|Net increase of client trade and|||
|advance|||
|Net increase of savings in central|||
|bank and brother company|||
|Cash paid for original contract|||
|claim|||
|Cash paid for interest, processing|||
|fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to and for the staff|274,034,752.64|225,245,085.75|
|Taxes paid|103,333,723.21|86,882,633.93|
|Other cash paid for business|||
||157,970,591.52|133,573,236.53|
|activities|||
|Sub-total of cash outflow from business|||
||2,579,717,564.56|2,241,941,626.36|
|operations|||
|Cash flow generated by business|||
||-360,115,114.04|-557,893,929.44|
|operations, net|||
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||392,316,868.51|294,000,000.00|
|recovery|||
|Cash received as investment profit|2,839,929.37|2,144,844.81|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|2,480,137.42|5,912,795.35|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash|||
|||65,500.00|
|received|||
|Sub-total of cash inflow generated from|||
||397,636,935.30|302,123,140.16|
|investment|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|43,406,919.71|33,875,128.34|
|long-term assets|||
|Cash paid as investment|169,500,000.00|538,263,675.00|
|Net increase of loan against pledge|||
|Net cash paid for acquiring|||
|||15,702,424.87|
|subsidiaries and other operational units|||
|Other cash paid for investment|263,000.00|331,500.00|
|Subtotal of cash outflows|213,169,919.71|588,172,728.21|
|Cash flow generated by investment|||
||184,467,015.59|-286,049,588.05|
|activities, net|||
|3. Cash flow generated by financing|||
|activities:|||
|Cash received from investment|||
|Incl. Cash received from|||
|investment attracted by subsidiaries|||
|from minority shareholders|||
|Cash received from borrowed|||
||1,764,927,430.10|1,303,817,100.01|
|loans|||
|Cash received from bond placing|||
|Other cash received from financing|||
||398.76||
|activities|||
|Subtotal of cash inflow from financing|||
||1,764,927,828.86|1,303,817,100.01|
|activities|||
|Cash paid to repay debts|1,286,786,500.00|575,000,000.00|
|Cash paid as dividend, profit, or|||
||103,109,040.79|67,732,507.84|
|interests|||
|Incl. Dividend and profit paid by|||
|subsidiaries to minority shareholders|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Other cash paid for financing|||
||54,563,032.79||
|activities|||
|Subtotal of cash outflow from financing|||
||1,444,458,573.58|642,732,507.84|
|activities|||
|Net cash flow generated by financing|||
||320,469,255.28|661,084,592.17|
|activities|||
|4. Influence of exchange rate changes|||
||279,854.76|259,902.13|
|on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||145,101,011.59|-182,599,023.19|
|equivalents|||
|Plus: Balance of cash and cash|||
||102,638,232.19|285,237,255.38|
|equivalents at the beginning of term|||
|6. Balance of cash and cash equivalents|||
||247,739,243.78|102,638,232.19|
|at the end of the period|||

6. Cash Flow Statement of the Parent Company
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Net cash flow from business|||
|operations:|||
|Cash received from sales of|||
||26,164,484.77|25,532,652.79|
|products and providing of services|||
|Tax refunded|||
|Other cash received from business|||
||755,679,626.68|535,560,936.32|
|operation|||
|Sub-total of cash inflow from business|||
||781,844,111.45|561,093,589.11|
|operations|||
|Cash paid for purchasing products|||
||4,416,622.18|6,265,876.89|
|and services|||
|Cash paid to and for the staff|13,896,383.34|12,900,103.54|
|Taxes paid|2,788,279.54|2,806,998.73|
|Other cash paid for business|||
||879,561,369.67|144,910,876.80|
|activities|||
|Sub-total of cash outflow from business|||
||900,662,654.73|166,883,855.96|
|operations|||
|Cash flow generated by business|||
||-118,818,543.28|394,209,733.15|
|operations, net|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||30,000,000.00|20,000,000.00|
|recovery|||
|Cash received as investment profit|44,373,922.22|39,860,211.87|
|Net cash retrieved from disposal of|||
|fixed assets, intangible assets, and other|4,190.00|66,000.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries or other operational units|||
|Other investment-related cash|||
|received|||
|Sub-total of cash inflow generated from|||
||74,378,112.22|59,926,211.87|
|investment|||
|Cash paid for construction of fixed|||
|assets, intangible assets and other|772,927.30|3,257,461.79|
|long-term assets|||
|Cash paid as investment|2,000,000.00|707,011,633.00|
|Net cash paid for acquiring|||
|subsidiaries and other operational units|||
|Other cash paid for investment|||
|Subtotal of cash outflows|2,772,927.30|710,269,094.79|
|Cash flow generated by investment|||
||71,605,184.92|-650,342,882.92|
|activities, net|||
|3. Cash flow generated by financing|||
|activities:|||
|Cash received from investment|||
|Cash received from borrowed|||
||448,425,600.00|446,000,000.00|
|loans|||
|Cash received from bond placing|||
|Other cash received from financing|||
||398.76||
|activities|||
|Subtotal of cash inflow from financing|||
||448,425,998.76|446,000,000.00|
|activities|||
|Cash paid to repay debts|350,000,000.00|200,000,000.00|
|Cash paid as dividend, profit, or|||
||47,001,477.37|35,741,367.15|
|interests|||
|Other cash paid for financing|||
||624,032.79||
|activities|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Subtotal of cash outflow from financingactivities|||
||397,625,510.16|235,741,367.15|
|Net cash flow generated by financingactivities|||
||50,800,488.60|210,258,632.85|
|4. Influence of exchange rate changeson cash and cash equivalents|||
||-10,064.90|-93,226.35|
|5. Net increase in cash and cashequivalents|||
||3,577,065.34|-45,967,743.27|
|Plus: Balance of cash and cashequivalents at the beginning of term|||
||22,006,065.49|67,973,808.76|
|6. Balance of cash and cash equivalentsat the end of the period|||
||25,583,130.83|22,006,065.49|

7. Statement of Change inOwners‟ Equity (Consolidated)
Amount of the Current Term
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minor||
|||Other equity tools|||||Other|||Commo|||Total of|
|Items||||||||||||||
|||||||Less:||||||shareho||
||Share|Prefer|Perpet||Capital||miscella|Special|Surplus|n risk|Retaine||owners’|
|||||Others||Shares||||||lders’||
||capital|red|ual||reserves||neous|reserves|reserves|provisio|d profit||equity|
|||||||in stock||||||equity||
|||share|bond||||income|||ns||||
||756,90||||||||||||1,300,5|
|1. Balance at the|||||79,099,||91,831.||48,842,||349,987|65,603,||
||9,905.||||||||||||34,627.|
|end of last year|||||220.38||63||080.76||,825.69|764.53||
||00||||||||||||99|
|Plus:||||||||||||||
|Changes in||||||||||||||
|accounting||||||||||||||
|policies||||||||||||||
|Correction of||||||||||||||
|previous errors||||||||||||||
|Consolidation of||||||||||||||
|entities under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||
|2. Balance at the|756,90||||||||||||1,300,5|
||||||79,099,||91,831.||48,842,||349,987|65,603,||
|beginning of|9,905.||||||||||||34,627.|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|current year|00|220.38|63|080.76|,825.69|764.53|99|
|3. Amount of||||||||
|change in current||||2,281,4|82,283,|-51,057,|33,508,|
|||398.76||||||
|term (“-“ for||||73.75|598.87|014.50|456.88|
|decrease)||||||||
|(1) Total of misc.|||||107,272|-39,057,|68,215,|
|incomes|||||,369.77|014.50|355.27|
|(2) Investment or||||||||
|||||||-12,000,|-11,999,|
|decreasing of||398.76||||||
|||||||000.00|601.24|
|capital by owners||||||||
|1. Common shares||||||||
|contributed by||||||||
|shareholders||||||||
|2. Capital||||||||
|contributed by||||||||
|other equity||||||||
|instrument holders||||||||
|3. Amount of||||||||
|shares paid and||||||||
|accounted as||||||||
|owners’ equity||||||||
|||||||-12,000,|-11,999,|
|4. Others||398.76||||||
|||||||000.00|601.24|
|(3) Profit||||2,281,4|-24,988,||-22,707,|
|allotment||||73.75|770.90||297.15|
|1. Providing of||||2,281,4|-2,281,4|||
|surplus reserves||||73.75|73.75|||
|2. Common risk||||||||
|provision||||||||
|3. Allotment to the||||||||
||||||-22,707,||-22,707,|
|owners (or||||||||
||||||297.15||297.15|
|shareholders)||||||||
|4. Others||||||||
|(4) Internal||||||||
|transferring of||||||||
|owners’ equity||||||||
|1. Capitalizing of||||||||
|capital reserves (or||||||||
|to capital shares)||||||||
|2. Capitalizing of||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|surplus reserves||||||||
|(or to capital||||||||
|shares)||||||||
|3. Making up||||||||
|losses by surplus||||||||
|reserves||||||||
|4. Others||||||||
|(5) Special||||||||
|reserves||||||||
|1. Provided this||||||||
|year||||||||
|2. Used this term||||||||
|(6) Others||||||||
||756,90||||||1,334,043,084.87|
|4. Balance at the||79,099,|91,831.|51,123,|432,271|14,546,||
||9,905.|||||||
|end of this period||619.14|63|554.51|,424.56|750.03||
||00|||||||

 Amount of the Previous Term
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minor||
|||Other equity tools|||||Other|||Commo|||Total of|
|Items||||||||||||||
|||||||Less:||||||shareho||
||Share|Prefer|Perpet||Capital||miscella|Special|Surplus|n risk|Retaine||owners’|
|||||Other||Shares||||||lders’||
||capital|red|ual||reserves||neous|reserves|reserves|provisio|d profit||equity|
|||||s||in stock||||||equity||
|||share|bond||||income|||ns||||
||756,90||||||||||||1,216,0|
|1. Balance at the|||||79,099,||91,831.||46,389,||278,149|55,432,||
||9,905.||||||||||||72,177.|
|end of last year|||||220.38||63||142.21||,631.63|446.89||
||00||||||||||||74|
|Plus:||||||||||||||
|Changes in||||||||||||||
|accounting||||||||||||||
|policies||||||||||||||
|Correction of||||||||||||||
|previous errors||||||||||||||
|Consolidation of||||||||||||||
|entities under||||||||||||||
|common control||||||||||||||
|Others||||||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|2. Balance at the|756,90||||||1,216,0|
|||79,099,|91,831.|46,389,|278,149|55,432,||
|beginning of|9,905.||||||72,177.|
|||220.38|63|142.21|,631.63|446.89||
|current year|00||||||74|
|3. Amount of||||||||
|change in current||||2,452,9|71,838,|10,171,|84,462,|
|term (“-“ for||||38.55|194.06|317.64|450.25|
|decrease)||||||||
|(1) Total of misc.|||||96,998,|-4,309,|92,689,|
|incomes|||||429.76|085.10|344.66|
|(2) Investment or||||||||
|||||||16,000,|16,000,|
|decreasing of||||||||
|||||||000.00|000.00|
|capital by owners||||||||
|1. Common shares||||||||
|||||||16,000,|16,000,|
|contributed by||||||||
|||||||000.00|000.00|
|shareholders||||||||
|2. Capital||||||||
|contributed by||||||||
|other equity||||||||
|instrument holders||||||||
|3. Amount of||||||||
|shares paid and||||||||
|accounted as||||||||
|owners’ equity||||||||
|4. Others||||||||
|(3) Profit||||2,452,9|-25,160,||-22,707,|
|allotment||||38.55|235.70||297.15|
|1. Providing of||||2,452,9|-2,452,9|||
|surplus reserves||||38.55|38.55|||
|2. Common risk||||||||
|provision||||||||
|3. Allotment to the||||||||
||||||-22,707,||-22,707,|
|owners (or||||||||
||||||297.15||297.15|
|shareholders)||||||||
|4. Others||||||||
|(4) Internal||||||||
|transferring of||||||||
|owners’ equity||||||||
|1. Capitalizing of||||||||
|capital reserves (or||||||||
|to capital shares)||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|2. Capitalizing of||||||||
|surplus reserves||||||||
|(or to capital||||||||
|shares)||||||||
|3. Making up||||||||
|losses by surplus||||||||
|reserves||||||||
|4. Others||||||||
|(5) Special||||||||
|reserves||||||||
|1. Provided this||||||||
|year||||||||
|2. Used this term||||||||
|||||||-1,519,|-1,519,5|
|(6) Others||||||||
|||||||597.26|97.26|
||756,90||||||1,300,5|
|4. Balance at the||79,099,|91,831.|48,842,|349,987|65,603,||
||9,905.||||||34,627.|
|end of this period||220.38|63|080.76|,825.69|764.53||
||00||||||99|

 8. Statement of Change inOwners‟ Equity (Parent Company)
Amount of the Current Term
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Current period|||||||||||
|||Other equity tools|||||Other|||||
|||||||Less:|||||Total of|
|Items|Share|Preferre PerpetuOthersd share al bond|||Capital||miscellan|Special|Surplus|Retaine||
|||Preferre|Perpetu|||Shares in|||||owners’|
||capital|||Others|reserves||eous|reserves|reserves|d profit||
|||d share|al bond|||stock|||||equity|
||||||||income|||||
|1. Balance at the|756,909,||||38,598,56||||48,842,08|404,322|1,248,765|
||||||||91,831.63|||||
|end of last year|905.00||||5.00||||0.76|,761.53|,143.92|
|Plus:||||||||||||
|Changes in||||||||||||
|accounting||||||||||||
|policies||||||||||||
|Correction of||||||||||||
|previous errors||||||||||||
|Others||||||||||||
|2. Balance at the|756,909,||||38,598,56||||48,842,08|404,322|1,248,765|
||||||||91,831.63|||||
|beginning of|905.00||||5.00||||0.76|,761.53|,143.92|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|current year|||||
|3. Amount of|||||
|change in current||2,281,473|-2,174,0|107,839.1|
||398.76||||
|term (“-“ for||.75|33.41|0|
|decrease)|||||
|(1) Total of misc.|||22,814,|22,814,73|
|incomes|||737.49|7.49|
|(2) Investment or|||||
|decreasing of|398.76|||398.76|
|capital by owners|||||
|1. Common shares|||||
|contributed by|||||
|shareholders|||||
|2. Capital|||||
|contributed by|||||
|other equity|||||
|instrument holders|||||
|3. Amount of|||||
|shares paid and|||||
|accounted as|||||
|owners’ equity|||||
|4. Others|398.76|||398.76|
|(3) Profit|||||
|||2,281,473|-24,988,|-22,707,2|
|allotment|||||
|||.75|770.90|97.15|
|1. Providing of||2,281,473|-2,281,4||
|surplus reserves||.75|73.75||
|2. Allotment to the|||||
||||-22,707,|-22,707,2|
|owners (or|||||
||||297.15|97.15|
|shareholders)|||||
|3. Others|||||
|(4) Internal|||||
|transferring of|||||
|owners’ equity|||||
|1. Capitalizing of|||||
|capital reserves (or|||||
|to capital shares)|||||
|2. Capitalizing of|||||
|surplus reserves|||||
|(or to capital|||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|shares)|||||||
|3. Making up|||||||
|losses by surplus|||||||
|reserves|||||||
|4. Others|||||||
|(5) Special|||||||
|reserves|||||||
|1. Provided this|||||||
|year|||||||
|2. Used this term|||||||
|(6) Others|||||||
|4. Balance at the|756,909,|38,598,96||51,123,55|402,148|1,248,872,983.02|
||||91,831.63||||
|end of this period|905.00|3.76||4.51|,728.12||

 Amount of the Previous Term
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Last period|||||||||||
|||Other equity tools|||||Other|||||
|||||||Less:|||||Total of|
|Items|Share|Preferre PerpetuOthersd share al bond|||Capital||miscellan|Special|Surplus|Retaine||
|||Preferre|Perpetu|||Shares in|||||owners’|
||capital|||Others|reserves||eous|reserves|reserves|d profit||
|||d share|al bond|||stock|||||equity|
||||||||income|||||
|1. Balance at the|756,909,||||38,598,56||||46,389,14|404,953|1,246,943|
||||||||91,831.63|||||
|end of last year|905.00||||5.00||||2.21|,611.77|,055.61|
|Plus:||||||||||||
|Changes in||||||||||||
|accounting||||||||||||
|policies||||||||||||
|Correction of||||||||||||
|previous errors||||||||||||
|Others||||||||||||
|2. Balance at the||||||||||||
||756,909,||||38,598,56||||46,389,14|404,953|1,246,943|
|beginning of|||||||91,831.63|||||
||905.00||||5.00||||2.21|,611.77|,055.61|
|current year||||||||||||
|3. Amount of||||||||||||
|change in current|||||||||2,452,938|-630,85|1,822,088|
|term (“-“ for|||||||||.55|0.24|.31|
|decrease)||||||||||||
|(1) Total of misc.||||||||||24,529,|24,529,38|
|incomes||||||||||385.46|5.46|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|(2) Investment or||||
|decreasing of||||
|capital by owners||||
|1. Common shares||||
|contributed by||||
|shareholders||||
|2. Capital||||
|contributed by||||
|other equity||||
|instrument holders||||
|3. Amount of||||
|shares paid and||||
|accounted as||||
|owners’ equity||||
|4. Others||||
|(3) Profit|2,452,938|-25,160,|-22,707,2|
|allotment|.55|235.70|97.15|
|1. Providing of|2,452,938|-2,452,9||
|surplus reserves|.55|38.55||
|2. Allotment to the||||
|||-22,707,|-22,707,2|
|owners (or||||
|||297.15|97.15|
|shareholders)||||
|3. Others||||
|(4) Internal||||
|transferring of||||
|owners’ equity||||
|1. Capitalizing of||||
|capital reserves (or||||
|to capital shares)||||
|2. Capitalizing of||||
|surplus reserves||||
|(or to capital||||
|shares)||||
|3. Making up||||
|losses by surplus||||
|reserves||||
|4. Others||||
|(5) Special||||
|reserves||||
|1. Provided this||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|year|||||||
|2. Used this term|||||||
|(6) Others|||||||
|4. Balance at the|756,909,|38,598,56||48,842,08|404,322|1,248,765|
||||91,831.63||||
|end of this period|905.00|5.00||0.76|,761.53|,143.92|

 III. General Information
China Fangda Group Co., Ltd. (the “Company” or the “Group”) is a joint stock company registered in Shenzhen, Guangdong and was approved by the Government of Shenzhen with Document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.
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, Fangda Property and Fangda New Energy.
The business nature and main business operations of the Company and subsidiaries (“the Group”) include (1) production and sales of curtain wall materials, design, production and installation of construction curtain walls; (2) assembly and production of subway screen doors; (3) development and operation of real estate projects on land, of which rights have been obtained lawfully; (4)R&D, installation and sales of PV devices, design and installation of PV power plants,R&D, design, production, sales and installation of lights, electric auxiliaries and other equipment, LED products and metal products.
The financial statements and notes are approved at the
20th
meeting of the
7th
term of the Board held on 22.04.16. The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. The entities newly consolidated this period include eight subsidiaries. Hong Kong Junjia Group Co., Ltd. is written off this period. See Note VI. Change to the Consolidation Scope and Note 7. Disclosure of Interest in Other Entities for details.
IV. Basis for the preparation of financial statements
1. Preparation basis
The financial statements are prepared according to the enterprise financial standard and guidelines, interpretation
and other related regulations (“the Standard”) issued by the Ministry of Finance. The Group has also disclosed
China Fangda Group Co., Ltd. 2015 Annual Report related financial information according to the requirement of the Regulations of Information Disclosure No.15– General Provisions for Financial Statements (Revised in 2014) issued by the CSRC.
The Group prepares the financial statements based on continuous operation.
The Group's auditing 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.
V. Significant Account Policies and Estimates
Specific accounting policy and estimate prompt:
The Group determines the accounting policies and income recognition policies for investment real estate according to the production and business features. For details, see Note V. 13 and Note V. 22.
1. 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 31.12.15, and business performance and cash flow situation in Year 2015 of the Company frankly and completely.
2. Fiscal Period
The fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.
3. Operation period
The operation period of the Group is 12 months.
4. Bookkeeping standard money
The Group takes RMB as the standard currency for bookkeeping.
5. 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 the consolidated financial statement of the merging party 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.
China Fangda Group Co., Ltd. 2015 Annual Report Enterprise merger under common control through multiple transactions
In separate financial statements, the initial investment cost is the book value of the mergedparty’s net assets that can be shared by the merging party in the consolidate financial statements of the final controlling party according to the shareholding percentage on the merging date; adjust the capital surplus (share premium) according to the difference between the initial investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capital surplus falls short, the retained income should be adjusted.
In consolidated financial statements, assets and liabilities obtained by the merging party from the merged party should be measured at the book value in the final controllingparty’s consolidated financial statements other than the adjustment made due to differences in accounting policies; adjust the capital surplus (share premium) according to the difference between the initial investment cost and the book value of the held investment before merger plus the book value of the consideration paid on the merger date. Where the capital surplus falls short, the retained income should be adjusted. Changes in recognized related profit and loss, other misc. incomes and other owner's equity between the later one of the date when the original stock equity was obtained and the date when the merged party and merging party become under the common control should respectively write down the retained profit in beginning of the report period or currentperiod’s profit or loss.
(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 Group from the acquired party are recognized on the fair value.
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. Where there is new or further evidence on the condition existing on the acquisition date 12 months later and adjustment needs to be made, the good will should be adjusted and merged.
(3) Treatment of related transaction fee in enterprise merger
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.
6. Preparation of Consolidated Financial Statements
(1) Consolidation scope
The consolidate scope of consolidated financial statements is determined based on control. Control means the power possessed by the Group on invested entities to share variable returns by participating in related activities of the invested entities and to impact the amount of the returns by using the power. Subsidiaries are enterprises
China Fangda Group Co., Ltd. 2015 Annual Report controlled by the Company.
(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. 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.
Subsidiaries and businesses increased because of merger of enterprises under the common control during the report period are deemed consolidated into the consolidate scope from the date of becoming controlled by the final party. The operating result and cash flows of the subsidiaries and businesses from the date of becoming controlled by the final party should be incorporated into the consolidate income statement and consolidate cash flow statement.
For subsidiaries and businesses increased because of merger of enterprises not under the common control, their incomes, expenses and profits between the date of acquisition and end of the report period should be incorporated into the consolidated income statement, and the cash flows should be incorporated into the consolidated cash flow statement.
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.
(3) Acquisition of subsidiary minority interests
The difference between the investment cost of the long-term equity obtained from acquisition of minority interests and the share of net assets in the subsidiary calculated continuously based on the increased shareholding percentage, and the difference between the disposal income obtained from the partial disposal of thesubsidiary’s equity investment without losing the control power and the share of net assets in the subsidiary calculated continuously based on the increased shareholding percentage should be adjusted and consolidated in the capital surplus in the consolidated balance sheet. Where the capital surplus falls short, the retained income should be adjusted.
(4) Treatment of loss ofsubsidiaries’ control power
For loss of control over subsidiaries due to disposal of partial equity investment or other reasons, the remaining equity should be re-measured at the fair value on the date of loss of the control power; the sum of the consideration obtained from the disposal of stock equity and the fair value of the remaining equity, minus the sum of the share of the netassets’ book value calculated continuously from the acquisition date according to the original shareholding percentage and the goodwill should be recorded in the investment gain of the current period of the loss of control power.
Other misc. incomes related to the equity investment in the original subsidiary is transferred to the current
China Fangda Group Co., Ltd. 2015 Annual Reportperiod’s profit and loss when the control power is lost, except for the other misc. incomes generated by re-measurement and resetting of earning plan or change in the net assets by the invested party.
7. 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 Group and easily converted into cash with known amount.
8. Foreign exchange business and foreign exchange statement translation
Trades of the Group 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.
9. 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
The Group 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. When the Group (debtor) and creditor enter into an agreement to replace the existing financial liabilities by undertaking new financial liabilities and the contract terms for the new financial liabilities are essentially different from those for the existing one, the existing financial liabilities will be derecognized and new financial liabilities will be recognized.
Financial asset transactions in regular ways are recognized and de-recognized on the transaction date.
(2) Classification and measurement of financial assets
China Fangda Group Co., Ltd. 2015 Annual Report Financial assets of the Group are categorized as: financial assets measured at fair value with variations accounted into current income account, loans and account receivables. Financial assets are measured at the fair value at the initial recognition. For financial assets measured at fair value with variations accounted into current income account, related transaction expenses are accounted into the current income. For other financial assets, the related transaction expenses are accounted into the initial recognized amounts.
Financial assets measured at fair value with variations accounted into current income account
It includes transactional financial assets and financial assets measured by fair value and with variations accounted into current gain/loss account at initial recognition. The financial assets are further measured by fair value with the gain/loss created by variations in fair value and related dividends and interest accounted into the current gain/loss account.
Receivables
Receivables refer to non-derivative financial assets without quotations but with fixed recoverable amount or can be confirmed, including receivable accounts and other receivables (Note V. 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
TheGroup’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) Fair value of financial instrument
See Note III. 10 for the recognition of fair value of financial assets and liabilities.
(5) Impairment of financial assets
Financial assets measured at fair value with variations accounted into current income account. The Group checks the book value of financial assets on the balance sheet date. Impairment provision will be made in case of objective evidence proving impairment to the financial assets. Objective evidence proving impairment to the financial assets refers to events actually occur after the initial recognition of financial assets, with influence on the estimated future cash flows of the financial assets and can be reliably measured by the Group.
Objective evidence proving impairment to the financial assets includes the following observable situations: Severe financial difficulties in the issuer or debtor;
② The debtor violates the contract or defaults or delays the payment of the interest or principal;
③ The Group makes compromise to the debtor with financial difficulties due to economic or legal consideration;④ The debtor may go bankruptcy or conduct other financial reorganization;
China Fangda Group Co., Ltd. 2015 Annual Report⑤ The financial assets can no longer be traded in an active market due to material financial difficulties in the issuer;
⑥ It cannot be recognized whether the cash flow of an asset in a group of financial assets has decreased. However, according to open data, it can be evaluated that the estimated future cash flow of the group of financial assets has decreased and the decrease can be measured, including:
- The payment capacity of the debtor of the financial assets continues weakening;
- Situations that may lead to the payment failure of the financial assets happen in the country or region where the debtor is located;
⑦ Significant adverse changes occurs to the technical, market, economic or legal environment of the debtor, leading to that the equity instrument investor may not be able to recover the investment;
⑧ Other objective evidence that can prove the impairment of the financial assets
Financial assets measured at amortized cost
If there is objective evidence proving impairment to the financial assets, the book value of the financial assets will be written down to the present value of the estimated future cash flow (excluding undiscovered future credit loss). The write-down amount is accounted into the current gain/loss account. The present value of the estimated future cash flow is determined by the original effective discount rate with the value of the guarantee considered.
Conduct impairment test separately for major financial assets. If there is objective evidence suggesting impairment, determine the impairment loss and account it into the current gain/loss account. Conduct impairment test for other financial assets including financial assets combination with similar credit risk features. Test financial assets without impairment separately (including major and minor financial assets) and conduct impairment test in the financial assets combination with similar credit risk features. Conduct impairment test for financial assets separately recognized as impaired excluding financial assets combination with similar credit risk features. After the Group recognizes impair loss to financial assets measured by amortized cost, if there is object evidence suggesting that the value of the financial assets is restored objectively due to an event after the loss, the recognized impairment loss can be reversed and accounted into the current gain/loss account. The book value after the reversal must not exceed the amortized cost of the financial assets on the reversal date assuming that no impairment provision was made.
(6) 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 Group 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
China Fangda Group Co., Ltd. 2015 Annual Report 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.
(7) Deduction of financial assets and liabilities
When the Group has the legal right to deduct recognized financial assets and liabilities, can exercise the legal right, and the Group plans to settle them in net, liquidate and repay the financial assets and liabilities, the amount after the deduction will be presented in the balance sheet. Exception for the deducted part, other financial assets and liabilities are separately presented in the balance sheet.
10. Receivables
(1) Receivables with major individual amount and bad debt provision provided individually
|||
|-|-|
||For the current year, the Company recognizes project receivables|
||over RMB8 million (inclusive) as “individual receivable with|
||large amount” while recognizes product receivables over RMB2|
|Judging basis or standard of major individual amount||
||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|
|Provision method for account receivable with major individual|provides bad debt provision when the impairment is recognized|
|amount and bad debt provision provided individually|based on objective evidence. Those not impaired are accounted|
||along with the minor amount receivables and recognized in risk|
||groups.|

(2) Recognition and providing of bad debt provisions on groups
|||
|-|-|
|Group|Method of bad debt provision|
|Account age|Aging method|

Receivables adopting the aging method in the group:
√ Applicable□ Inapplicable
||||
|-|-|-|
|Age|Providing rate for receivable account|Providing rate for other receivables|
|Within 1 year (inclusive)|3.00%|3.00%|
|1-2 years|10.00%|10.00%|
|2-3 years|30.00%|30.00%|
|Over 3 years|50.00%|50.00%|

Receivables adopting the balance percentage method in the group
□ Applicable√ Inapplicable
Receivables adopting other methods in the group
China Fangda Group Co., Ltd. 2015 Annual Report□ Applicable√ Inapplicable
(3) Receivables with not major individual amount and bad debt provision provided individually
|||
|-|-|
|Reasons for separate bad debt provision|Long account age or deterioration of customer creditability|
||According to the difference between the present value of future|
|Method of bad debt provision||
||cash flow and the book value|

11. 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.
(2) Pricing of delivering inventory
Inventories are measured at cost when procured. Raw materials, products in process, commodity stocks and goods shipped in transit are measured by the weighted average method.
Construction contracts are measured by the effective cost, including direct and indirect expenses generated before the contracts are fulfilled. Costs generated and recognized accumulatively by construction in process and settled payment are listed in the balance sheet as offset net amounts. The excessive part of the sum of the generated costs and recognized gross profit (loss) over the settled payment is listed inventories; the excessive part of the settled payment over the sum of the generated costs and recognized gross profit (loss) is listed as the prepayment received.
Travel and bidding expenses generated by execution of contracts, if they can be separated and reliably measured and it is likely to enter into contracts, are accounted as the contract cost when the contracts are entered into; or into the current gain/loss account if the conditions are not met.
The development costs include land transfer payment, infrastructure and facility costs, installation engineering costs, borrows before completion of the development and other costs during the development process.
(3) Recognition of inventory realizable value and providing of impairment provision
The realizable net value of inventory is the estimated sales prices of the inventory less costs to be incurred until the completion, estimated sales expense and taxes. The realizable net value of inventory should be recognized based on solid evidence with the purpose of the inventory and after-balance-sheet-date events taken into consideration.
If the inventory cost is higher than the realizable net value on the balance sheet date, the inventory depreciation provision should be made. The Group makes inventory depreciation provision for separate or a type of inventory.
If factors affecting the inventory value disappear on the balance sheet date, the depreciation provision made
should be reversed to the original value.
China Fangda Group Co., Ltd. 2015 Annual Report (4) Inventory system
The Group uses perpetual inventory system.
(5) Amortizing of low-value consumables and packaging materials
Low-value consumables are amortized on on-off amortization basis at using.
12. Long-term share equity investment
The Group's long-term equity investment includes control on invested entities and significant impacts on equity investment. Invested entities on which the Group has significant impacts are associates of the Group.
(1) Recognition of initial investment costs
Long-term equity investment generated by enterprise merger: for long-term equity investment obtained by merger of enterprises under common control, the obtained share of book value of the interests of the mergedparty’s owner in the consolidate financial statements on the merger date is the investment costs; for long-term equity investment obtained by merger of enterprises not under common control, the merger cost is the investment cost. For long-term equity investment obtained by cash, the actually paid consideration is the initial investment cost. (2) Subsequent measurement and recognition of gain/loss
Investments by the Company in subsidiaries are calculated using the cost method; in joint ventures are calculated using the equity method.
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.
When the equity method is used to measure long-term equity investment, the investment cost will not be adjusted if the investment cost of the long-term equity investment is larger than the share of fair value of the recognizable assets of the invested entity. When it is smaller than the share of fair value of the recognizable assets of the invested entity, the book value will be adjusted and the difference is included in the current gains of the investment.
When the equity method is used, the current investment gain is the share of the net gain realized in the current year that can be shared or borne, recognized as investment gain and other misc. income. The book value of the long-term equity investment is adjusted accordingly. The book value of the long-term equity investment should be accordingly decreased based on the share of profit or cash dividend announced by the invested entity; according to other changes in theowner’s equity except for net profit and loss, other misc income and profit distribution of the invested entity, adjust the book value of the long-term equity investment and record it in the capital surplus (other capital surplus). When the share of the net gains that can be enjoyed is recognized, it is recognized after the net profit of the invested entity is adjusted based on the fair value of the recognizable assets of the invested entity according to the Company's accounting policies and accounting period.
Where substantial influence on invested entities is imposed or joint control is implemented due to increase in
China Fangda Group Co., Ltd. 2015 Annual Report investment, the sum of the fair value of the original equity and increased investment on the conversion date is the initial investment cost under the equity method. The difference between the fair value and book value of the original equity on the conversion date and the accumulative change in the fair value originally accounted in other misc. income should be transferred into the profit and loss of the current period using the equity method.
Where joint control or substantial influence on invested entities is lost due to disposal of part of investment, the remaining equity after the disposal should be treated according to the Enterprise Accounting Standard No.22– Recognition and Measurement of Financial Instruments from the date of losing the joint control or substantial influence. The difference between the fair value and book value should be accounted the profit and loss of the current period. For other misc. income recognized due to the calculation of original equity investment using the equity method, when the equity method is no longer used, the accounting treatment should be based on the same principle of disposing related assets or liabilities of the invested entity. Otherowner’s interests related to the original investment should be transferred to the profit and loss of this period.
Where the disposal of part of the equity investment leads to loss of control on the invested entity, and the remaining equity after the disposal can impose common control or significant impacts on the invested entity, use the equity method and make adjustment as if the equity method was used when the remaining equity was acquired. If not, perform accounting treatment according to provisions in the Enterprise Accounting Standard No.22– Recognition and Measurement of Financial Tools. The difference between the fair value and book value on the date of losing control should be transferred into the profit and loss of this period.
Where theCompany’s shareholding decreases and the Company loses the control due to increased investment by another investor, but the Company can still impose common control or significant impacts on the invested entity, the share of increased net assets of the invested entity that can be shared by the Company should be calculated based on the new shareholding, the difference between the net assets and original book value of the original long-term equity investment should be recorded in the profit and loss of this period and adjusted as if equity method was when it was acquired according to the new shareholding proportion.
Internal transaction gain not realized between the Company and affiliates is measured according to the shareholding proportion and the investment gains is recognized after deduction. The unrealized internal transaction loss between the Company and the invested entity is the impairment loss of transferred assets and should not be written off.
(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. When considering whether the Company can impose significant impacts on the invested entity, impacts of conversion of shares with voting rights held directly or indirectly by the investor and voting rights that can be executed in this period held by the investor and other party into shares of the invested entity should be considered.
When Company directly or indirectly holds20% (inclusive) but less than50% of the shares with voting rights of the invested entity, it is generally considered that the Company can impose significant impacts unless there is clear evidence proving that the Company shall not participate in the production and business decision making of the company; when the Company holds less than20% of the shares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity, unless there is clear evidence proving
China Fangda Group Co., Ltd. 2015 Annual Report the contrary.
(4) Impairment examination and providing of impairment provision
See Note V. 18 for the assets impairment provision method for investment in subsidiaries and joint ventures. 13. Investment real estate
Measuring mode of investment real estate
Measurement at fair value
Basis of choosing the measurement at fair value
Investment real estates of the Group are buildings leased.
For investment real estates with an active real estate transaction market and the Group can obtain market price and other information of same or similar real estates to reasonably estimate the investment realestates’ fair value, the Group will use the fair value mode to measure the investment real estates subsequently. Variations in fair value are accounted into the current gain/loss account.
The fair value of investment real estates is determined with reference to the current market prices of same or similar real estates in active markets; when no such price is available, with reference to the recent transaction prices and consideration of factors including transaction background, date and district to reasonably estimate the fair value; or based on the estimated lease gains and present value of related cash flows.
For an investment real estate whose fair value is proven unable to be obtained continuously and reliably by objective evidence, the real estate will be measured at cost basis until it is disposed and no residual value remains as assumed.
The difference of the proceeds from sales, transfer, retirement or destruction of investment real estates with book value and related taxes deducted is accounted into the current gain/loss account.
See Note V. 18 for the assets impairment provision method for the investment real estates that are subsequently measured using the cost model.
14. Fixed assets
(1) Recognition conditions
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 Group measures fixed assets at the actual costs when the fixed assets are obtained
(2) Depreciation method
||||||
|-|-|-|-|-|
|Type|Depreciation method|Service year|Residual rate|Annual depreciation|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|||||rate %|
|Houses & buildings|Average age|35-45|10|2-2.57|
|Mechanical equipment|Average age|10|10|9|
|Transportation facilities|Average age|5|10|18|
|Electronics and other|||||
||Average age|5|10|18|
|devices|||||
|PV power plants|Average age|20|5|4.75|

The Group 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 Group determines annual depreciation rates for various fixed assets according to types, predicted service life and residual value:
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 V. 18 for the depreciation testing and provision method for fixed assets.
China Fangda Group Co., Ltd. 2015 Annual Report (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 adjusted 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 Group 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 V. 18 for the provision method for construction in process.
16. Borrowing expenses
(1) Recognition principles for capitalization of borrowing expenses
Borrowing expenses occurred to the Group that can be accounted as purchasing or production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset. Borrowing expenses start to be capitalized when all of the followings are satisfied:
(1) Asset expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, or undertaking of debt with interest done for purchasing or producing of assets;
(2) The borrowing expense has already occurred;
(3) Purchasing or production activity, which is necessary for the asset to reach the useful status, has already started.
(2) During borrowing expense capitalization
When the asset satisfying the capitalizing conditions has reached its usable or sellable status, capitalizing of borrowing expenses shall be terminated. Borrowing expenses incurred after assets that meet capitalization conditions reach the service or sales conditions are accounted into the current gain/loss account according to the actual amounts.
If the construction or production of assets satisfying the capitalizing conditions is suspended abnormally for over 3 months, capitalizing of borrowing expenses shall be suspended. During the normal suspension period, borrowing expenses will be capitalized continuously.
China Fangda Group Co., Ltd. 2015 Annual Report (3) Calculation of the capitalization amount of borrowing expense
Interest expenses generated by special borrowings less the interests income obtained from the deposit of unused borrowings or investment gains from temporary investment is capitalized; the capitalization amount for general borrowing is determined based on the capitalization rate which is the exceeding part of the accumulative assets expense over weighted average of the assets expense of the special borrowing/used general borrowing. The capitalization ratio is the weighted average interest rate of general borrowings.
In the capitalization period, the exchange difference of special borrowings in foreign currencies should be fully capitalized. The exchange difference should be recorded in the profit and loss of this period.
17. Intangible assets
(1) Pricing method, service life and depreciation test
TheGroup’s intangible assets include land using rights, trademarks, patent, 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:
|||||
|-|-|-|-|
|Type|Useful life|Basis of amortization|Notes|
|Land using right|Beneficial age|Average age||
|Trademarks and patents|10|Average age||
|Proprietary technology|10|Average age||
|Software|5, 10 years|Average age||

At the end of each year, the Group 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 Group, transfer all the intangibleassets’ book value into the current gain/loss account.
See Note V. 18 for the impairment provision method for intangible assets.
(2) Accounting policies for internalR&D expenses
The Group 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
China Fangda Group Co., Ltd. 2015 Annual Report 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 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.
18. Assets impairment
The Group 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 Group judges whether there is a sign of impairment to assets on the balance sheet day. If such sign exists, the Group 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 Group estimates the recoverable amount on the individual asset item basis; whether it is hard to estimate the recoverable amount on the individual asset item basis, determine the recoverable amount based on the asset group that the assets belong to. The assets group is determined by whether the main cash flow generated by the group is independent from those generated by other assets or assets groups.
When the recoverable amount of the assets or assets group is lower than its book value, the Group 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 Group.
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.
China Fangda Group Co., Ltd. 2015 Annual Report 19. Long-term amortizable expenses
TheGroup’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.
20. Staff remuneration
(1) Accounting of short-term remuneration
Staff remuneration is the compensation paid by the employer to the staff for the services they provide or for termination of the working relationship. Staff remuneration includes short-term remuneration and post-employment welfare.
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according toemployees’ wages and bonus and recognizes them as liabilities, which are recorded into the profit and loss or related assets costs in the current period. If the liabilities cannot be fully paid within 12 months upon the end of the report period in which the employees provide service, and the financial impacts are substantial, the liabilities should be measured at the discounted amount.
(2) Accounting of post-employment welfare
The post-employment welfare of the Group is a defined plan, which means that the Company does not need to assume any responsibility after making fixed contribution to an independent fund. The defined plan includes basic pension and unemployment insurance. The contribution of the plan is recognized as liabilities and recorded in the profit and loss of this period or related assets costs.
(3) Accounting of dismiss welfare
Where the Group provides dismiss welfare for employees, the staff remuneration liabilities is recognized on the earlier one of the following two date: when the Group cannot cancel the dismiss welfare provided for termination of employment or layoff; when the Group recognizes the costs or expenses of reorganization related to the payment of dismiss welfare.
21. 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 Group;
(2) Execution of this responsibility may cause financial benefit outflow from the Group;
(3) Amount of the liability can be reliably measured.
China Fangda Group Co., Ltd. 2015 Annual Report Expected liabilities are initially measured at the best estimation on the expenses to exercise the current responsibility. The book value of expected liability is revised at balance sheet day, and adjustment will be made to reflect current best estimation.
22. 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 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 Group 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 Group recognizes the estimated loss as the current expense.
The competition percentage is determined by the share of the costs incurred in the total cost.
China Fangda Group Co., Ltd. 2015 Annual Report 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 Jianke are individual construction contracts. They are accounted by the following means:
Construction contracts completed within a fiscal year are recognized for their income and cost upon completion. Income and expenses of the construction contracts carried over-year are recognized on percentage basis at balance sheet day when all of the following conditions are satisfied: contract income can be reliably measured, relative financial benefit can inflow to the Company; progress of the project and costs to complete the contract can be reliably recognized; cost occurred to complete the contract can be clearly distinguished and reliably measured, which enables comparing of actual cost with predicted cost.
Contract costs are direct and indirect expenses occurred since the date when the contract is engaged till the completion day. The competition percentage is determined by the share of the costs incurred in the total cost. Construction contracts completed in current term are recognized for income according to the actual total income of the contract less income recognized in previous terms; meanwhile, the total costs of the contract less costs recognized in previous terms are recognized as current contract costs. If the total contract cost is predicted to be greater than the predicted total income, the predicted loss shall be recognized as current cost instantly.
Revenue of products for domestic sales is recognized when the Group 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.
23. Government subsidy
(1) Judgment basis and accounting treatment of assets-related government subsidy
Government subsidies related to assets are obtained by the Group 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.
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
China Fangda Group Co., Ltd. 2015 Annual Report relative differed gain, record to current income account directly.
(2) Judgment basis and accounting treatment of return-related government subsidy
Government subsidies in connection with gains, which are used to cover current expenses or losses, are recognized as current gain/loss, if used to cover future expenses or losses, recognized as differed gains, and recorded to current income account to the period when the expenses are recognized. Government subsidy measured at the nominal amount is accounted into current income account.
If a recognized government subsidy needs to be returned, if there are relative differed gains, the balance of differed gains will be 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.
24. Deferred income tax assets and deferred income tax liabilities
Income tax includes current and deferred income tax Except 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 Group 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, joint ventures 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 Group 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, joint ventures 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 Group 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.
China Fangda Group Co., Ltd. 2015 Annual Report On the balance sheet day, the Group 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. 25. Leasing
(1) Accounting of operational leasing
(1) The Group is the leasor
Rentals from operational leasing are recognized as current gains on straight basis to the periods of leasing. Initial direct expenses are recorded to current income account.
(1) The Group is the leasee
Rentals in operational leasing are recorded to relative capital cost or current income account on straight basis to the periods of leasing. Initial direct expenses are recorded to current income account.
(2) Accounting of financing leasing
The Group 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 Group 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. (1) The Group is the leasee
The Group 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 Group adopts the depreciation policy same as the self-owned fixed assets to made provision for depreciation of leased assets.
26. Other significant accounting policies and estimates
Accounting of hedging
Significant accounting judgment and estimate
The Group continuously reviews significant accounting judgment and estimate adopted for the reasonable forecast of future events based on its historical experience and other factors.
China Fangda Group Co., Ltd. 2015 Annual Report 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 Group 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 Group 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) Estimate of fair value
The Group 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 half of valuation experts.
(3) 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.
(4) Construction contracts
The Group recognizes the income according to the completion percentage of each construction contract. The management estimates the completion percentage according to the actual costs in the total budget. Given the nature of activities in construction contracts, activity and completion dates are usually in different accounting periods. The Group will revise the estimated contract incomes and costs (if the actual contract income is smaller than the actual cost, impairment loss provision will be made).
27. Major changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable√ Inapplicable
(2) Changes in major accounting estimates
□ Applicable√ Inapplicable
VI. Taxation
1. Major taxes and tax rates
||||
|-|-|-|
|Tax|Tax basis|Tax rate|
|VAT|Taxable income|6%、13%、17%|
|Business tax|Taxable turnover|3%、5%|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|City maintenance and construction tax|Taxable turnover|1%、5%、7%|
|Enterprise income tax|Taxable income|15%、25%|
|Education surtax||3%|

Tax rates applicable for different tax payers
|||
|-|-|
|Tax payer|Income tax rate|
|The Company|25%|
|Shenzhen Fangda Jianke Group Co., Ltd.|15%|
|Shenzhen Fangda Automation System Co., Ltd.|15%|
|Shenzhen Woke Semi-conductor Lighting Co., Ltd.|25%|
|Fangda New Materials (Jiangxi) Co., Ltd.|15%|
|Jiangxi Fangda New Type Aluminum Co., Ltd.|25%|
|Shenyang Fangda Semi-conductor Lighting Co., Ltd.|25%|
|Dongguan Fangda New Material Co., Ltd.|25%|
|Shenzhen Kexunda Software Co., Ltd.|25%|
|Chengda Fangda Construction Technology Co., Ltd.|15%|
|Fangda Decoration Engineering (Shenyang) Co., Ltd.|25%|
|Shenzhen Fangda Property Development Co., Ltd.|25%|
|Shenzhen Fangda New Energy Co., Ltd.|25%|
|Guangdong Fangda SOZN Lighting Co., Ltd.|25%|
|Shenzhen Fangda Property Management Co., Ltd.|25%|
|Shenzhen Qianhai Kechuangyuan Software Co., Ltd.|15%|
|Jiangxi Fangda Property Development Co., Ltd.|25%|
|Ganzhou Longneng New Energy Co., Ltd.|25%|
|Pingxiang Fangda Luxin New Energy Co., Ltd.|25%|
|Pingxiang Xiangdong Fangda New Energy Co., Ltd.|25%|
|Nanchang Xinjian Fangda New Energy Co., Ltd.|25%|
|Dongguan Fangda New Energy Co., Ltd.|25%|

2. Tax preference
(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 19.06.15, Fangda Jianke was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) 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
China Fangda Group Co., Ltd. 2015 Annual Report on 19.06.15, Fangda Decoration was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) since the qualifications were awarded.
(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 25.09.15, Fangda New Material was entitled to enjoy a tax preference of enterprise income tax of15% for three years (2015-2017) 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 Registration[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. Kexunda entered the semi-exemption period in 2015.
(5) On November 7, 2014, Chengdu Fangda was certified by Sichuan Xinjin National Tax Bureau as an encourage industry company in the west China (Xin Jin National Tax Doc.[zzy024]) and started to enjoy a tax rate of15%. (6) On November 2, 2015, Dongguan New Energy was certified by Dongguan National Tax Bureau Songshanhu branch as the national supported public infrastructure project according to the Song Shan Hu Tax Doc[2015] 3305. The company is exempted from enterprise income tax for three years and halfly exempted for another three years. In 2015, the company entered the exemption period.
(7) According the Notice of Providing Guangdong Hengqing New District, Fujian Pingtan Pilot Zone and Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Cooperation Zone with Tax Preference Policies, Kechuangyuan Software enjoys an income tax rate of15%.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Inventory cash|28,072.46|40,733.33|
|Bank deposits|266,315,876.39|114,515,874.25|
|Other monetary capital|134,609,388.47|97,874,191.29|
|Total|400,953,337.32|212,430,798.87|
|Including: total amount deposited in|||
||5,722,165.37|2,370,695.75|
|overseas|||

(3) Others
(1) The balance of the bank deposit at the end of the period includes the bank deposit of RMB23 million of
Fangda Jianke frozen by the court (see Note XIII.1 for details) and the bank deposit of RMB538,264.14 of Fangda
SOZN.
China Fangda Group Co., Ltd. 2015 Annual Report (2) The closing balance of the book value of the other monetary capital is mainly the futures, bank acceptance bill and guarantee deposit and investment, including a deposit of RMB129,675,829.40. The deposit and frozen deposit shall not be treated as cash and cash equivalent in the preparation of cash flow statements.
(3) The closing monetary capital increased by88.75% from the beginning of the year. It is mainly due to that no more bank financial products were purchased at the end of the year.
2. Financial assets measured at fair value with variations accounted into current income account
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Transactional financial assets|14,546,206.58|13,410,790.00|
|Investment in equity tools|14,546,206.58|13,410,790.00|
|Total|14,546,206.58|13,410,790.00|

 Others:
The closing balance is the fair value of the shares of SINO OIL& GAS acquired by Shihui International Holding Co., Ltd.
3. Derivative financial assets
□ Applicable√ Inapplicable
4. Notes receivable
(1) Classification of notes receivable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Bank acceptance|10,289,884.74|2,697,145.86|
|Commercial acceptance|86,957,775.82|80,628,579.84|
|Total|97,247,660.56|83,325,725.70|

 (2) The Group has no endorsed or discounted immature receivable notes at the end of the period.
In RMB
||||
|-|-|-|
|Items|De-recognized amount|Not de-recognized amount|
|Bank acceptance|104,701,283.62||
|Commercial acceptance|1,056,126.00|4,957,775.82|
|Total|105,757,409.62|4,957,775.82|

China Fangda Group Co., Ltd. 2015 Annual Report (3) Notes transferred to accounts receivable due to default of the issue at the end of period
In RMB
|||
|-|-|
||Amount transferred to accounts receivable at the end of theperiod|
|Items||
|Commercial acceptance|19,846,579.84|
|Total|19,846,579.84|

 5. Account receivable
(1) Account receivable disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|Recognition and||||||1,280,5|||||
||1,611,97||206,824,||1,405,151|||175,879,7||1,104,625,2|
|providing of bad debt||99.41%||12.83%||04,982.|98.68%||13.74%||
||5,331.93||197.04||,134.89|||31.45||51.46|
|provisions on groups||||||91|||||
|Account receivable|||||||||||
|with minor individual|||||||||||
||9,541,65||8,974,65||567,000.0|17,154,||16,537,28|||
|amount and bad debt||0.59%||94.06%|||1.32%||96.40%|617,000.00|
||5.45||5.45||0|285.41||5.41|||
|provision provided|||||||||||
|individually|||||||||||
||||||1,405,718,134.89|1,297,6||||1,105,242,251.46|
||1,621,51||215,798,|||||192,417,0|||
|Total||100.00%||13.31%||59,268.|100.00%||14.83%||
||6,987.38||852.49|||||16.86|||
|||||||32|||||

Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable√ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Account receivable|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
|Subtotal for less than 1 year|988,440,956.29|29,353,228.69|2.98%|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|1-2 years|252,343,963.99|25,321,425.23|10.00%|
|2-3 years|167,228,313.66|50,168,494.10|30.00 %|
|Over 3 years|203,962,097.99|101,981,049.02|50.00 %|
|Total|1,611,975,331.93|206,824,197.04|12.83%|

 Group recognition basis:
Account receivable adopting the balance percentage method in the group:
□ Applicable√ Inapplicable
Account receivable adopting other methods in the group:
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB34,811,396.51 was made in the period. RMB0.00 was recovered or reversed. (3) Written-off account receivable during the period
In RMB
|||
|-|-|
|Items|Amount|
|Account receivable written off|11,429,560.88|

 Including significant account receivable:
In RMB
|||||||
|-|-|-|-|-|-|
|||||Writing-off||
|Entity|Nature|Amount|Reason||Related transaction|
|||||procedure||
|Guodu Real Estate||||||
||Engineering|||||
|Development||803,340.45|Unrecoverable|Management|No|
||payment|||||
|(Shenzhen) Co., Ltd.||||||
|Shenzhen Zaoyunda|Engineering|||||
|||660,625.41|Unrecoverable|Management|No|
|Machinery Co., Ltd.|payment|||||
|Total|--|1,463,965.86|--|--|--|

(4) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB209,543,439.19, accounting for12.92% of the total remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB6,766,281.58.
6. Prepayment
(1) Account age of prepayments
In RMB
China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Age|||||
||Amount|Proportion|Amount|Proportion|
|Less than 1 year|23,448,649.55|73.89%|24,526,989.72|83.90%|
|1-2 years|3,490,224.16|12.05%|2,991,743.88|10.23%|
|2-3 years|1,418,149.13|5.15%|163,672.10|0.56%|
|Over 3 years|1,700,041.06|8.91%|1,551,825.79|5.31%|
|Total|30,057,063.90|--|29,234,231.49|--|

(2) Balance of top 5 prepayments at the end of the period
The total balance of top-five prepayments at the end of the period is RMB11,614,739.09, accounting for36.60% of the total remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB587,828.51.
7. Other receivables
(1) Other receivables disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provisionrate|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n|||||n||rate||
|Recognition and|||||||||||
||65,503,5||12,407,6||53,095,94|62,085,||13,134,50||48,950,647.|
|providing of bad debt||99.78%||18.94%|||99.64%||21.16%||
||87.52||39.06||8.46|155.66||7.99||67|
|provisions on groups|||||||||||
|Other receivables|||||||||||
|with minor individual|||||||||||
||146,100.||146,100.|||223,146||223,146.9|||
|amount and bad debt||0.22%||100.00%|0.00||0.36%||100.00%|0.00|
||95||95|||.95||5|||
|provision provided|||||||||||
|individually|||||||||||
||65,649,6||12,553,7||53,095,948.46|62,308,||13,357,65||48,950,647.67|
|Total||100.00%||19.12%|||100.00%||21.44%||
||88.47||40.01|||302.61||4.94|||

 Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable√ Inapplicable
In the group, the other receivables of which bad debt provision are made through the account aging method:
√ Applicable□ Inapplicable
In RMB
China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Other receivables|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
|Subtotal for less than 1 year|35,506,425.19|1,063,824.56|3.00%|
|1-2 years|6,535,574.83|653,557.50|10.00%|
|2-3 years|5,202,683.55|1,560,805.07|30.00%|
|Over 3 years|18,258,903.95|9,129,451.93|50.00%|
|Total|65,503,587.52|12,407,639.06|18.94%|

 Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable√ Inapplicable
Other receivables adopting other methods in the group:
□ Applicable√ Inapplicable
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB-722,264.33 was made in the period. RMB0.00 was recovered or reversed.
(3) Other receivable written off in the current period
In RMB
|||
|-|-|
|Items|Amount|
|Other receivable written off|81,650.60|

 (4) Other receivables are disclosed by nature
In RMB
||||
|-|-|-|
|By nature|Closing balance of book value|Opening balance of book value|
|Deposit|36,529,862.27|37,088,745.12|
|Construction borrowing and advanced|||
||17,242,358.04|14,869,519.46|
|payment|||
|House disposal receivable||2,136,200.00|
|Staff borrowing and petty cash|3,062,219.75|1,410,387.87|
|Receivable refund of VAT|80,888.90|576,297.37|
|Others|8,734,359.51|6,227,152.79|
|Total|65,649,688.47|62,308,302.61|

China Fangda Group Co., Ltd. 2015 Annual Report (5) Balance of top 5 other receivables at the end of the period
In RMB
|||||||
|-|-|-|-|-|-|
|||||Percentage in the|Balance of bad debt|
|Entity|By nature|Closing balance|Age|closing balance of|provision at the end|
|||||other receivables(%)|of the period|
||Advanced|||||
|Wang Weihong||695.00|1-2 years|0.00%|69.50|
||construction fee|||||
||Advanced|||||
|Wang Weihong||352,178.17|2-3 years|0.54%|105,653.45|
||construction fee|||||
||Advanced|||||
|Wang Weihong||4,591,514.98|Over 3 years|6.99%|2,295,757.49|
||construction fee|||||
||Advanced|||||
|Xin Song||2,620,327.61|Over 3 years|3.99%|1,310,163.81|
||construction fee|||||
||Advanced|||||
|Zeng Liang||2,360,324.74|Less than 1 year|3.60%|70,809.74|
||construction fee|||||
|Hainan GreenTown||||||
||Deposit|1,746,000.00|2-3 years|2.66%|523,800.00|
|Investment Co., Ltd.||||||
|Cixi Fanshi Property||||||
|Development Co.,|Deposit|1,222,473.75|Over 3 years|1.86%|611,236.88|
|Ltd.||||||
|Total|--|12,893,514.25|--|19.64%|4,917,490.87|

 8. Inventories
(1) Classification of inventories
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items|Remaining book|Depreciation||Remaining book|Depreciation||
||||Book value|||Book value|
||value|provision||value|provision||
|Raw materials|85,916,458.16|7,069,471.61|78,846,986.55|101,814,705.80|2,551,138.82|99,263,566.98|
|Product in|||||||
||6,971,619.92||6,971,619.92|6,682,625.91|2,277.73|6,680,348.18|
|process|||||||
|Finished goods in|||||||
||18,325,455.59|5,513,219.11|12,812,236.48|22,999,746.67|2,470,651.68|20,529,094.99|
|stock|||||||
|Assets unsettled|||||||
|for finished|||||||
||226,526,505.83|1,830,742.67|224,695,763.16|251,262,257.58|1,830,742.67|249,431,514.91|
|construction|||||||
|contracts|||||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Low price|||||||
||69,223.68||69,223.68|59,672.66||59,672.66|
|consumable|||||||
|OEM materials|8,791,959.78|1,218,716.77|7,573,243.01|3,358,174.63||3,358,174.63|
|Development cost|986,708,925.20||986,708,925.20|603,118,814.70||603,118,814.70|
|Goods delivered|28,913,305.53||28,913,305.53||||
|Total|1,362,223,453.69|15,632,150.16|1,346,591,303.53|989,295,997.95|6,854,810.90|982,441,187.05|

 (2) Inventory depreciation provision
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase in this period||Decrease in this period|||
|Items|Opening balance|||Recover or||Closing balance|
|||Provision|Others||Others||
|||||write-off|||
|Raw materials|2,551,138.82|4,623,290.48||104,957.69||7,069,471.61|
|Product in|2,277.73||||||
|||||2,277.73|||
|process|||||||
|Finished goods in|2,470,651.68|||||5,513,219.11|
|||3,143,105.85||100,538.42|||
|stock|||||||
|Assets unsettled|1,830,742.67|||||1,830,742.67|
|for finished|||||||
|construction|||||||
|contracts|||||||
|OEM materials||1,218,716.77||||1,218,716.77|
|Total|6,854,810.90|8,985,113.10||207,773.84||15,632,150.16|

 (3) Balance at the end of the period includes capitalization of borrowing expense
The balance at the end of the period includes capitalization of borrowing expense of RMB44,371,221.40.
(4) Assets unsettled for finished construction contracts at the end of the period
In RMB
|||
|-|-|
|Items|Amount|
|Accumulative occurred costs|5,458,293,985.56|
|Accumulative recognized gross margin|923,989,118.87|
|Less: estimated loss|1,830,742.67|
|Settled amount|6,155,756,598.60|
|Assets unsettled for finished construction contracts|224,695,763.16|

Others:
China Fangda Group Co., Ltd. 2015 Annual Report (5) Development cost
||||||||
|-|-|-|-|-|-|-|
|Project|Startingtime|Estimatedfinish time|Estimatedtotalinvestment|Closingamount|Openingamount|Closindepreciatioprovisio|
|FangdaTown|May. 2014|December2016|R MB2,421,911,100|886,932,360.20|603,118,814.70||
|JiangxiPropertyproject||||99,776,565.00|||
|Total||||986,708,925.20|603,118,814.70||

9. Other current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Input tax to be deducted|11,083,687.96|6,986,107.72|
|Bank financial products||228,000,000.00|
|Prepaid income tax|312,030.09||
|Total|11,395,718.05|234,986,107.72|

 Others:
10. Long-term share equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Change (+,-)|||||||||Balance|
|||||Investme|||||||of|
||||||Other|||||||
|||||nt gain|||Cash||||impairme|
||||Decrease||miscellan|||||||
|Invested|Opening|Increased||and loss||Other|dividend|Impairme||Closing|nt|
||||d||eous|||||||
|entity|balance|investmen||recognize||equity|or profit|nt|Others|balance|provision|
||||investmen||income|||||||
|||t||d using||change|announce|provision|||at the end|
||||t||adjustmen|||||||
|||||the equity|||d||||of the|
||||||t|||||||
|||||method|||||||period|
|1. Joint venture||||||||||||
|2. Associate||||||||||||
|Shenzhen||||||||||||
|Ganshang||||||||||||
|Joint|11,048,66|||-337,462.|||2,200,000|||8,511,197||
|Investme|0.43|||45|||.00|||.98||
|nt Co.,||||||||||||
|Ltd.||||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
|Shenzhen||||||
|Huihai||||||
|Yirong||2,000,000|-21,517.0||1,978,482|
|Internet||.00|5||.95|
|Service||||||
|Co., Ltd.||||||
||11,048,66|2,000,000|-358,979.|2,200,000|10,489,68|
|Subtotal||||||
||0.43|.00|50|.00|0.93|
||11,048,66|2,000,000|-358,979.|2,200,000|10,489,68|
|Total||||||
||0.43|.00|50|.00|0.93|

Others:
Note: A new associate Shenzhen Huihai Yirong Internet Service Co., Ltd. was increased this year. The Company contributed RMB2 million, holds10% in its stake and designated a director in its board of directors.
Investment real estate
(1) Investment real estate measured at costs
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Items|Houses & buildings|Land using right|Construction in process|Total|
|I. Book value|||||
|1. Opening balance|32,081,268.14|||32,081,268.14|
|2. Increase in this|||||
|period|||||
|(1) External|||||
|purchase|||||
|(2) Transfer-in from|||||
|inventory\fixed|||||
||5,095,047.32|||5,095,047.32|
|assets\construction in|||||
|progress|||||
|(3) Increase due to|||||
|enterprise merger|||||
|3. Decrease in this|||||
|period|||||
|(1) Purchase|||||
|(2) Other|||||
|transfer-out|||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|4. Closing balance|37,176,315.46|37,176,315.46|
|II. Accumulative|||
|depreciation and|||
|amortization|||
|1. Opening balance|4,315,330.90|4,315,330.90|
|2. Increase in this|||
||2,147,391.35|2,147,391.35|
|period|||
|(1) Provision or|||
||888,212.55|888,212.55|
|amortization|||
|(2) Other|||
||1,259,178.80|1,259,178.80|
|increases|||
|3. Decrease in this|||
|period|||
|(1) Purchase|||
|Other transfer-out|||
|4. Closing balance|6,462,722.25|6,462,722.25|
|III. Impairment provision|||
|1. Opening balance|||
|2. Increase in this|||
|period|||
|(1) Provision|||
|3. Decrease in this|||
|period|||
|(1) Purchase|||
|Other transfer-out|||
|4. Closing balance|||
|IV. Book value|||
|1. Closing book||30,713,593.21|
||30,713,593.21||
|value|||
|2. Opening book||27,765,937.24|
||27,765,937.24||
|value|||

China Fangda Group Co., Ltd. 2015 Annual Report (2) Investment real estate measured at fair value
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Items|Houses & buildings|Land using right|Construction in process|Total|
|I. Opening balance|198,513,586.15|||198,513,586.15|
|II. Change in this period|||||
|Add: external|||||
|purchase|||||
|Transfer-in|||||
|from inventory\fixed|||||
||20,307,845.89|||20,307,845.89|
|assets\construction in|||||
|progress|||||
|Increase due to|||||
|enterprise merger|||||
|Less: disposal|||||
|Other|||||
|transfer-out|||||
|Change in fair value|85,793,780.49|||85,793,780.49|
|III. Closing balance|304,615,212.53|||304,615,212.53|

 (3) Investment real estate without ownership certificate
In RMB
||||
|-|-|-|
|Items|Book value|Reason|
|Houses in Dalian of Fangda Jianke for|||
||9,306,570.00|Applying for|
|offsetting debt|||

(3) Others
The fair value of the investment real estate is determined based on深同诚评字(2,016A)01YQC第 025号 Real Estate Valuation Report issued by TOUCHSTONE.
12. Fixed assets
(1) Fixed assets
In RMB
China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||Houses &||Mechanical|Transport|Electronics and||
|Items||PV power plants||||Total|
||buildings||equipment|equipment|other devices||
|I. Original book|||||||
|value:|||||||
|1. Opening|||||||
||414,676,207.19||244,520,117.16|23,352,273.72|55,787,441.33|738,336,039.40|
|balance|||||||
|2. Increase in|||||||
||44,302.29|11,976,788.22|7,798,151.92|639,637.24|6,456,437.81|26,915,317.48|
|this period|||||||
|(1) Purchase|30,000.00||7,798,151.92|639,637.24|6,456,437.81|14,924,226.97|
|(2)|||||||
|Transfer-in of|||||||
||14,302.29|11,976,788.22||||11,991,090.51|
|construction in|||||||
|progress|||||||
|(3) Increase|||||||
|due to enterprise|||||||
|merger|||||||
|3. Decrease in|||||||
||28,872,867.11||4,981,945.53||532,448.20|34,387,260.88|
|this period|||||||
|(1) Disposal|||||||
||||4,981,945.53||532,448.20|5,514,393.77|
|or retirement|||||||
|(2) Other|||||||
||28,872,867.11|||||28,872,867.11|
|decrease|||||||
|4. Closing|||||||
||385,847,642.37|11,976,788.22|247,336,323.55|23,991,910.96|61,711,430.90|730,864,096.00|
|balance|||||||
|II. Accumulative|||||||
|depreciation|||||||
|1. Opening|||||||
||38,473,077.25||159,921,185.98|10,047,751.18|23,247,074.02|231,689,088.43|
|balance|||||||
|2. Increase in|||||||
||10,785,178.07|142,224.36|8,968,629.26|2,694,364.56|6,188,860.87|28,779,257.12|
|this period|||||||
|(1) Provision|10,785,178.07|142,224.36|8,968,629.26|2,694,364.56|6,188,860.87|28,779,257.12|
|3. Decrease in|||||||
||4,729,152.70||4,066,991.78||389,369.92|9,185,514.40|
|this period|||||||
|(1) Disposal|||||||
||||4,066,991.78||389,369.92|4,456,361.70|
|or retirement|||||||
|(2) Other|4,729,152.70|||||4,729,152.70|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|decrease|||||||
|4. Closing|||||||
||44,529,102.62|142,224.36|164,822,823.46|12,742,115.74|29,046,564.97|251,282,831.15|
|balance|||||||
|III. Impairment|||||||
|provision|||||||
|1. Opening|||||||
||277,744.50||16,654,521.84|||16,932,266.34|
|balance|||||||
|2. Increase in|||||||
|this period|||||||
|(1) Provision|||||||
|3. Decrease in|||||||
|this period|||||||
|(1) Disposal|||||||
|or retirement|||||||
|4. Closing|||||||
||277,744.50||16,654,521.84|||16,932,266.34|
|balance|||||||
|IV. Book value|||||||
|1. Closing|||||||
||341,040,795.25|11,834,563.86|65,858,978.25|11,249,795.22|32,664,865.93|462,648,998.51|
|book value|||||||
|2. Opening|||||||
||375,925,385.44||67,944,409.34|13,304,522.54|32,540,367.31|489,714,684.63|
|book value|||||||

(2) Temporary idle fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|||Accumulative|Impairment|||
|Items|Book value|||Book value|Notes|
|||depreciation|provision|||
|Houses & buildings|46,833,628.81|6,428,790.74|277,744.50|40,127,093.57||
|Mechanical||||||
||105,591,939.34|70,551,467.09|15,300,132.34|19,740,339.91||
|equipment||||||
|Transportation||||||
||358,087.84|336,344.98||21,742.86||
|facilities||||||
|Electronics and other||||||
||7,822,284.94|7,591,621.38||230,663.56||
|devices||||||
|Total|160,605,940.93|84,908,224.19|15,577,876.84|60,119,839.90||

China Fangda Group Co., Ltd. 2015 Annual Report (3) Fixed assets without ownership certificate
In RMB
||||
|-|-|-|
|Items|Book value|Reason|
|Houses in Urumuqi for offsetting debt|566,436.05|Applying for|
|Yuehai Office Building C 502|154,944.66|Historical reasons|
|Houses in Dalian of Fangda Jianke for|||
||5,013,253.78|Applying for|
|offsetting debt|||
|Shenyang Fangda extension workshop|17,093,244.13|Entering into liquidation|
|Shenyang Fangda dorm and workshop 2#|7,919,804.71|Entering into liquidation|
|Dining hall and power station of Shenyang|||
||3,804,945.60|Entering into liquidation|
|Fangda|||

(3) Others
On December 31, 2015, the original value of house and buildings of the Group of RMB58,834,355.09 with an accumulative depreciation of RMB5,883,107.64 and a net value of RMB52,951,247.45 was pledged to China Construction Bank Shenzhen OCT Branch.
By December 31, 2015, the original value of equipment of RMB19,890,185.65, with an accumulative depreciation of RMB834,314.60 and a net value of RMB19,055,871.05 was frozen by the court due to the sales contract lawsuit of Fangda SOZN.
Other decreases in the fixed assets are part of plants in Jiangxi Nanchang Fangda High-Tech Park and pledged houses in Dalian, Chongqing and Ningbo, which were transferred from self-use to leases, from fixed assets to investment real estate.
13. Construction in process
(1) Construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items|Remaining book|Impairment||Remaining book|Impairment||
||||Book value|||Book value|
||value|provision||value|provision||
|Xinjin energy|||||||
|saving|||||||
|environmental|816,356.71||816,356.71|341,749.17||341,749.17|
|protection curtain|||||||
|wall project|||||||
|Xuanfeng|||||||
|20MWp PV|||||||
||10,257,959.91||10,257,959.91||||
|power plant|||||||
|project|||||||
|Xiabu 20MWp|1,657,715.18||1,657,715.18||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|PV power plantproject|||||
|Isuzu part place|||||
|PV power plant|1,093,343.24|1,093,343.24|||
|project|||||
|Engineeringprojectmanagementplatform|||||
||761,792.44|761,792.44|||
|DongguanSongshanhushowroom No.1display|||||
||531,689.44|531,689.44|||
|Shangbu 18MWp|||||
|PV power plant|15,533.98|15,533.98|||
|project|||||
|Total|15,134,390.90|15,134,390.90|341,749.17|341,749.17|

 (2) Changes in major construction in process in this period
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Openingbalance|||||Proporti|||Including:capitalizedinterestfor thecurrentperiod|||
|||||Amount|||on of||||||
|||||transfer-i|||accumul||Accumul||||
||||||Other||||||||
||||Increase|n to|||ative||ative||Interest||
||||||decrease|Closing||Project||||Capital|
|Project|Budget||in this|fixed|||engineeri||capitaliz||capitaliz||
||||||in this|balance||progress||||source|
||||period|assets in|||ng||ed||ation rate||
||||||period||||||||
|||||this|||investme||interest||||
|||||period|||nt in the||||||
||||||||budget||||||
|Xuanfen|||||||||||||
|g|||||||||||||
|||||||||Equipme|||||
|20MWp|||||||||||||
||93,103,1||10,257,9|||10,257,9||nt|||||
|PV|||||||11.02%|||||Others|
||00.00||59.91|||59.91||installati|||||
|power|||||||||||||
|||||||||on|||||
|plant|||||||||||||
|project|||||||||||||
|Fangda|||||||||||||
|Songsha|||||||||||||
||13,162,4||11,976,7|11,976,7||||Complet|||||
|nhu|||||||90.99%|||||Others|
||00.00||88.22|88.22||||ed|||||
|industria|||||||||||||
|l part|||||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||106,265,|22,234,7|11,976,7|10,257,9||||
|Total|||||--|--|--|
||500.00|48.13|88.22|59.91||||

14. Disposal of fixed assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Mechanical equipment|5,326.79|26,918.21|
|Total|5,326.79|26,918.21|

 Others:
15. Intangible assets
(1) Intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
||||Unpatented|||
|Items|Land using right|Patent||Computer software|Total|
||||technologies|||
|I. Book value||||||
|1. Opening||||||
||98,015,399.41|9,448,727.46|24,019,238.42|7,456,636.99|138,940,002.28|
|balance||||||
|2. Increase in||||||
|||36,388.39||490,714.53|527,102.92|
|this period||||||
|(1) Purchase||36,388.39||490,714.53|527,102.92|
|(2) Internal||||||
|R&D||||||
|(3) Increase||||||
|due to enterprise||||||
|merger||||||
|3. Decrease in this||||||
|||87,820.00||143,726.50|231,546.50|
|period||||||
|(1) Purchase||87,820.00||143,726.50|231,546.50|
|4. Closing||||||
||98,015,399.41|9,397,295.85|24,019,238.42|7,803,625.02|139,235,558.70|
|balance||||||
|II. Accumulative||||||
|||0.00||||
|amortization||||||
|1. Opening|11,365,168.18|3,542,247.06|15,724,158.37|3,835,233.81|34,466,807.42|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
|balance||||||
|2. Increase in||||||
||1,971,700.04|1,492,038.48||767,930.15|4,231,668.67|
|this period||||||
|(1) Provision|1,971,700.04|920,049.60|571,988.88|767,930.15|4,231,668.67|
|3. Decrease in||||||
|||32,815.35||18,948.29|51,763.64|
|this period||||||
|(1) Purchase||32,815.35||18,948.29|51,763.64|
|4. Closing||||||
||13,336,868.22|4,429,481.31|16,296,147.25|4,584,215.67|38,646,712.45|
|balance||||||
|III. Impairment||||||
|provision||||||
|1. Opening||||||
||||5,525,863.77||5,525,863.77|
|balance||||||
|2. Increase in||||||
|this period||||||
|(1) Provision||||||
|3. Decrease in||||||
|this period||||||
|(1) Purchase||||||
|4. Closing||||||
||||5,525,863.77||5,525,863.77|
|balance||||||
|IV. Book value||||||
|1. Closing book||||||
||84,678,531.19|4,967,814.54|2,197,227.40|3,219,409.35|95,062,982.48|
|value||||||
|2. Opening||||||
||86,650,231.23|5,906,480.40|2,769,216.28|3,621,403.18|98,947,331.09|
|book value||||||

Intangible asset formed by internalR&D of the period takes up3.39% in the closing total book value of intangible assets.
(2) Failure to obtain the land use right certificates
In RMB
||||
|-|-|-|
|Items|Book value|Reason|
|Xinjin Jinhua Hongyan Village Group 1|||
||4,758,304.86|Applying for|
|industrial land 33,314.58 m2|||

China Fangda Group Co., Ltd. 2015 Annual Report Others:
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.
16. Goodwill
(1) Original book value of goodwill
In RMB
||||||
|-|-|-|-|-|
|Invested entity or|||||
||Opening balance|Increase|Decrease|Closing balance|
|item of goodwill|||||
|Shenzhen Woke|8,197,817.29|||8,197,817.29|
|Fangda SOZN|26,279,395.89|||26,279,395.89|
|Total|34,477,213.18|||34,477,213.18|

 (2) Goodwill impairment provision
In RMB
||||||
|-|-|-|-|-|
|Invested entity or|||||
||Opening balance|Increase|Decrease|Closing balance|
|item of goodwill|||||
|Shenzhen Woke|8,197,817.29|||8,197,817.29|
|Fangda SOZN||6,452,698.92||6,452,698.92|
|Total|8,197,817.29|6,452,698.92||14,650,516.21|

 Test process of goodwill impairment, parameters and recognition method of goodwill impairment loss:
Notes:
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.
The Company acquired the60% control power over Fangda SOZN by merger of enterprise under common control in August 2014. The difference between the initial investment cost of RMB48 million and recognizable fair value of the investee has formed the goodwill of RMB26,279,395.89. The Company performed impairment test on the goodwill of the investment and made impairment provision of RMB6,452,698.92 based on the current value of future cash flows.
(3) Others
17. Long-term amortizable expenses
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Opening balance|Increase in this|Amortized amount|Other decrease|Closing balance|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|||period|in this period||
|Epoxy floor|958,526.63||162,004.50|796,522.13|
|Plant and dormitory|||||
||1,039,476.73||443,246.64|596,230.09|
|decoration|||||
|Upgrading of|||||
|workshop rented by|||||
||243,227.20||41,108.82|202,118.38|
|Fangda Jianke|||||
|Nanchang Branch|||||
|Upgrading of|||||
|workshop rented by|68,666.67||68,666.67|0.00|
|Fangda Jianke|||||
|Renovation of office|||||
|and plants rented by|9,112.60||7,810.80|1,301.80|
|Chengdu Fangda|||||
|Jinshan factory|||||
|renovation of|||||
||412,028.66||109,874.16|302,154.50|
|Fangda Jianke|||||
|Shanghai Branch|||||
|Expense of|||||
|renovation of leased|||||
|fixed assets by|334,423.17||111,474.36|222,948.81|
|Fangda Property|||||
|Development|||||
|Dongguan separation|||||
||311,269.21||77,817.36|233,451.85|
|project|||||
|Upgrading of|||||
|workshop rented by|562,044.31|2,872,375.28|940,109.51|2,494,310.08|
|Fangda SOZN|||||
|Anti-junk email|||||
||33,013.06||16,506.60|16,506.46|
|module service fee|||||
|Fangda Building|||||
|Floor #5 wiring|68,442.72||30,419.04|38,023.68|
|project|||||
|Xuanfeng Chayuan|||||
|village and Zhuyuan|||||
|||1,340,062.50|35,735.04|1,304,327.46|
|village land transfer|||||
|compensation|||||
|Membership fee||300,000.00||300,000.00|
|Others|79,131.67|95,071.70|67,309.73|106,893.64|
|Total|4,119,362.63|4,607,509.48|2,112,083.23|6,614,788.88|

China Fangda Group Co., Ltd. 2015 Annual Report (3) Others
18. Differed income tax assets and differed income tax liabilities
(1) Non-deducted deferred income tax assets
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Items|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Assets impairment|||||
||216,918,204.09|37,575,529.18|215,379,455.02|33,823,708.10|
|provision|||||
|Unrealized profit of|||||
||23,008,088.13|3,788,898.02|11,839,968.61|2,579,827.55|
|internal transactions|||||
|Deductible loss|85,665,697.71|20,944,182.55|56,605,182.29|13,897,641.41|
|Reserved expense|2,153,753.44|323,063.02|3,055,220.98|458,283.15|
|Reserved wage|3,519,976.72|527,996.51|3,087,427.61|463,114.14|
|Deferred earning|2,563,904.83|619,823.84|2,161,818.23|515,225.13|
|Anticipated liabilities|1,921,446.51|288,216.98|5,859,045.98|878,856.90|
|Advertisement fee|3,847,702.76|961,925.69|||
|Adjustment of fair value|||||
||5,981,164.89|897,174.73|||
|of investment real estate|||||
|Total|345,579,939.08|65,926,810.52|297,988,118.72|52,616,656.38|

 (2) Non-deducted deferred income tax liabilities
In RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Items|Taxable temporary|Deferred income tax|Taxable temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Gain/loss caused by|||||
||291,979,073.34|72,994,768.34|198,937,747.60|49,734,436.90|
|changes in fair value|||||
|Total|291,979,073.34|72,994,768.34|198,937,747.60|49,734,436.90|

 (3) Details of unrecognized deferred income tax assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Deductible temporary difference|51,201,110.67|40,015,820.28|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Deductible loss|151,155,750.92|70,274,405.85|
|Total|202,356,861.59|110,290,226.13|

 (4) Deductible losses of the un-recognized deferred income tax asset will expire in the following years In RMB
|||||
|-|-|-|-|
|Year|Closing amount|Opening amount|Notes|
|2015||7,240,577.12||
|2016|19,999,060.04|19,999,060.04||
|2017|20,241,373.78|20,241,373.78||
|2018|11,130,985.83|11,130,985.83||
|2019|11,662,409.08|11,662,409.08||
|2020|88,121,922.19|||
|Total|151,155,750.92|70,274,405.85|--|

Others:
The form does not include suspension of subsidiaries in advance.
19. Other non-current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Prepaid house and equipment amount|91,863,898.92|41,684,590.97|
|Input tax to be deducted|1,640,057.47|1,639,287.66|
|Total|93,503,956.39|43,323,878.63|

 Others:
Notes:
(1) The closing balance of other non-current assets is mainly the prepaid house payment of Fangda Jianke. (2) The closing balance of input tax to be deducted is mainly due to the suspension of operations of Shenyang Fangda and Shenzhen Woke.
20. Short-term borrowings
(1) Classification of short-term borrowings
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Loan by pledge|200,000,000.00|200,000,000.00|
|Guarantee loan|943,000,000.00|900,000,000.00|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Discount borrowing of commercial|||
||4,957,775.82||
|acceptance bills|||
|Total|1,147,957,775.82|1,100,000,000.00|

 Notes to classification of short-term borrowings:
Note: By December 31, 2015, theGroup’s pledge borrowing is mainly obtained by pledging buildings. For details, please see Note VII. 52.
21. Notes payable
In RMB
||||
|-|-|-|
|Type|Closing balance|Opening balance|
|Commercial acceptance|78,934,714.94|12,106,210.45|
|Bank acceptance|224,592,924.69|215,160,275.12|
|Total|303,527,639.63|227,266,485.57|

 At the end of period, the amount of payable bills mature but not paid is RMB218,971.93.
22. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Account repayable and engineering|||
||611,292,302.23|558,886,064.80|
|repayable|||
|Construction payable|27,529,577.05|21,675,087.66|
|Payable installation and implementation|||
||225,793,206.11|102,780,295.76|
|fees|||
|Others|3,013,270.26|1,766,898.51|
|Total|867,628,355.65|685,108,346.73|

 (2) Significant payables aging more than 1 year
In RMB
||||
|-|-|-|
|Items|Closing balance|Reason|
|||Due from Shenzhen Fangda, unable to|
|Liaoning Jindi 2nd Construction Co., Ltd.|3,819,140.02||
|||repay|
|Shenzhen Gongkan Geotechnical Group|||
||2,393,148.65|Immature|
|Co., Ltd.|||
|Total|6,212,288.67|--|

China Fangda Group Co., Ltd. 2015 Annual Report Others:
23. Prepayment received
(1) Prepayment received
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Curtain wall and screen door engineering|||
||123,894,561.69|115,346,105.96|
|payment|||
|Material loan|5,515,676.69|6,106,352.73|
|Others|1,164,081.47|832,772.45|
|Total|130,574,319.85|122,285,231.14|

 Others:
No significant prepayment aged more than 1 year at the end of the year
24.Employees‟ wage payable
(1)Employees‟ wage payable
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|1. Short-term|||||
||41,651,071.51|267,413,651.10|268,259,252.77|40,805,469.84|
|remuneration|||||
|2. Retirement pension|||||
|program-defined|52,242.75|14,628,993.82|14,674,278.36|6,958.21|
|contribution plan|||||
|3. Dismiss compensation||714,187.67|584,187.67|130,000.00|
|Total|41,703,314.26|282,756,832.59|283,517,718.80|40,942,428.05|

 (2) Short-term remuneration
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|1. Wage, bonus,|||||
||39,519,553.05|248,931,185.07|249,822,808.61|38,627,929.51|
|allowance and subsidies|||||
|2. Employee welfare||7,577,825.03|7,577,825.03|0.00|
|3. Social insurance|39,612.75|4,710,163.33|4,681,775.81|68,000.27|
|Including:|33,570.00|3,569,804.99|3,535,891.94|67,483.05|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|medical insurance|||||
|Labor injury|||||
||3,357.00|707,423.27|710,264.75|515.52|
|insurance|||||
|Breeding|||||
||2,685.75|432,935.07|435,619.12|1.70|
|insurance|||||
|4. Housing fund|42,585.20|4,866,929.95|4,812,433.15|97,082.00|
|5. Labor union budget|||||
||2,049,320.51|1,327,547.72|1,364,410.17|2,012,458.06|
|and staff education fund|||||
|Total|41,651,071.51|267,413,651.10|268,259,252.77|40,805,469.84|

 (3) Defined contribution plan
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|1. Basic pension|49,755.00|13,672,689.58|13,716,007.83|6,436.75|
|2. Unemployment|||||
||2,487.75|956,304.24|958,270.53|521.46|
|insurance|||||
|Total|52,242.75|14,628,993.82|14,674,278.36|6,958.21|

 Others:
25. Taxes payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|VAT|6,981,753.65|6,739,115.69|
|Business tax|32,136,293.62|25,489,264.49|
|Enterprise income tax|16,555,365.28|16,071,901.30|
|Personal income tax|1,201,365.12|1,228,564.47|
|City maintenance and construction tax|2,824,794.21|2,329,212.21|
|Land using tax|3,683,884.01|2,534,674.36|
|Property tax|2,083,844.87|2,287,765.04|
|Education surtax|1,315,453.14|1,123,167.45|
|Local education surtax|489,642.89|298,064.57|
|Others|261,036.91|595,196.67|
|Total|67,533,433.70|58,696,926.25|

Others:
China Fangda Group Co., Ltd. 2015 Annual Report 26. Interest payable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Long-term borrowing with interest|||
|installment and repayment of principal|510,166.05||
|upon maturity|||
|Short-term borrowing interests payable|2,578,576.91|2,055,911.11|
|Others|153,091.47||
|Total|3,241,834.43|2,055,911.11|

 Significant interest overdue but not paid
In RMB
||||
|-|-|-|
|Borrower|Overdue amount|Reason|

Note:
27. Other payables
(1) Other payables presented by nature
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Performance and quality deposit|21,697,760.34|22,806,218.88|
|Deposit|9,027,418.36|6,264,664.14|
|Reserved expense|11,714,478.57|9,369,196.08|
|Fangda Town pledge|2,900,000.00||
|Lawsuit indemnity|23,456,765.40||
|Others|13,880,924.14|8,985,603.34|
|Total|82,677,346.81|47,425,682.44|

 Note: The lawsuit indemnity is the engineering, deposit and interest payable to Wang Weihong provided according to the second instance. See Note XIII, 1 for details.
(2) Significant payables aging more than 1 year
In RMB
||||
|-|-|-|
|Items|Closing balance|Reason|
|Guangzhou Nanjian Civil Engineering Co.,|||
||11,289,683.50|Performance deposit immature|
|Ltd.|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Total|11,289,683.50|--|

(3) Others
28. Non-current liabilities due within 1 year
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Long-term payables due within 1 year||6,000,000.00|
|Total||6,000,000.00|

 Others:
29. Other current liabilities
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Loan financing of precious metal|98,425,600.00||
|Total|98,425,600.00||

Others:
Note: The Company and Industrial Bank Shenzhen Branch signed the noble metal leasing contract on September 25, 2015. The Company borrowed gold from Industrial Bank Shenzhen Branch and entrusted the bank to provide noble metal quotation service. The transaction amount is RMB98,425,600.00. The transaction date is September 28, 2015. The maturity date is September 19, 2016. The Company irrevocably authorizes the bank to provide noble metal returning service upon maturity.
30. Long-term borrowings
(1) Classification of long-term borrowings
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Loan by pledge|300,395,582.06||
|Total|300,395,582.06||

Notes to classification of long-term borrowings:
Note: The above-mentioned borrowing is the100% stock pledging of Fangda Property Development held by the Company. The interest rate is between5.39-6.785%.
31. Long-term payables
||||
|-|-|-|
|Item|Closing amount|Opening amount|

China Fangda Group Co., Ltd. 2015 Annual Report
|||
|-|-|
|Stock transfer payment payable|12,000,000.00|
|Less: Long-term payables due within 1 year|6,000,000.00|
|Total|6,000,000.00|

 32. Anticipated liabilities
In RMB
|||||
|-|-|-|-|
|Items|Closing balance|Opening balance|Reason|
|Pending lawsuit||5,039,045.98||
|Others|1,921,446.51|820,000.00||
|Total|1,921,446.51|5,859,045.98|--|

Note: including related significant assumptions and estimates for anticipated liabilities
33. Deferred earning
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|Reason|
|Government subsidy|10,049,892.04|2,487,600.00|253,296.36|12,284,195.68|Assets-related|
|Total|10,049,892.04|2,487,600.00|253,296.36|12,284,195.68|--|

Items involving government subsidies:
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount included||||
|||Amount of new||||Related to|
|Liabilities|Opening balance||in non-operating|Other change|Closing balance||
|||subsidy||||assets/earning|
||||revenue||||
|Major investment|||||||
|project prize from|||||||
|Industry and|||||||
|Trade|||||||
||1,909,523.90||57,142.80||1,852,381.10|Assets-related|
|Development|||||||
|Division of|||||||
|Dongguan|||||||
|Finance Bureau|||||||
|Massive|||||||
|production|||||||
|project of|||||||
|air-breathing|7,888,073.81||122,256.30||7,765,817.51|Assets-related|
|double-layer|||||||
|hollow glass|||||||
|energy-saving|||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||
|-|-|-|-|-|-|
|curtain call||||||
|Railway transport||||||
|screen door||||||
|controlling||||||
|system and|252,294.33||40,770.60|211,523.73|Assets-related|
|information||||||
|transmission||||||
|technology||||||
|LED production||||||
|expansion||||||
|technology||1,906,100.00|31,768.33|1,874,331.67|Assets-related|
|renovation||||||
|project||||||
|Scientific||||||
|achievement||||||
|purchase and||||||
|||81,500.00|1,358.33|80,141.67|Assets-related|
|technological||||||
|innovation||||||
|service subsidy||||||
|Nanshan District||||||
|micro-business||500,000.00||500,000.00|Assets-related|
|loan discount||||||
|Total|10,049,892.04|2,487,600.00|253,296.36|12,284,195.68|--|

 Others:
Notes:
(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.
(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.
资助内容：It provides subsidy on the interest of loans obtained by registered small and micro businesses in Nanshan District from any banks in Shenzhen. Small and micro businesses registered in Nanshan District without default records can apply for5% of the loan amount at the highest to the Nanshan special fund management team. A single subsidy is no more than RMB500,000. It provides subsidy on the interest of loans obtained by registered
small and micro businesses in Nanshan District from any banks in Shenzhen. Small and micro businesses
registered in Nanshan District without default records can apply for5% of the loan amount at the highest to the
China Fangda Group Co., Ltd. 2015 Annual Report Nanshan special fund management team. A single subsidy is no more than RMB500,000.The item will become a long-term assets. The Company treats it as assets-related government subsidy.
(5) The technological achievement or innovative service purchase subsidy is the subsidy obtained by Fangda SOZN according to the Notice on Applying for 2015 Zhongshan Scientific and Technological Development Fund and Patent Fund (Zhong Shan Ke Fa[2015] No.104), Notice on Temporary Regulations on Zhongshan Scientific and Technological Development Fund and Notice on Temporary Regulations on Zhongshan Special Patent Fund. As the item is related to assets, the Company treats it as assets-related government subsidy.
(6) The Nanshan District Micro-Business Development Load Discount is provided to promote the development small and micro businesses and solve financing problems for small and micro businesses. It provides subsidy on the interest of loans obtained by registered small and micro businesses in Nanshan District from any banks in Shenzhen. Small and micro businesses registered in Nanshan District without default records can apply for5% of the loan amount at the highest to the Nanshan special fund management team. A single subsidy is no more than RMB500,000.As the interest is capitalized in unsold inventory, the Company treats it as assets-related gonverment subsidy.
34. Capital share
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Change (+,-)||||||
||Opening||||||Closing|
|||Issued new||Transferred||||
||balance||Bonus shares||Others|Subtotal|balance|
|||shares||from reserves||||
|Total of capital|756,909,905.00||||||756,909,905.00|
|shares||||||||

Others:
(1) There is no change in theCompany’s capital shares in the period.
(2) By 31.12.15, the Company has 972,042 restricted shares, all of which are held by senior management natural person.
34. Capital reserve
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|Capital premium (share|||||
||38,238,222.48|||38,238,222.48|
|capital premium)|||||
|Other capital reserves|40,860,997.90|398.76||40,861,396.66|
|Total|79,099,220.38|398.76||79,099,619.14|

 Other note, including explanation about the reason of the change:
The other capital reserves increased by RMB3.9876 million, which is the historical dividend refunded by the Shenzhen branch of China Securities Depository and Clearing Company Limited.
China Fangda Group Co., Ltd. 2015 Annual Report 35. Other miscellaneous income
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount occurred in the current periodLess: amountAfter-taxwritten intoAfter-tax amountAmount other gains Less:amount attributed tobefore and transferred Income taxattributed to minorityincome tax into gain/loss expensesthe parent shareholderin previoussterms||||||
||||Less: amount|||||
|||||||After-tax||
||||written into|||||
||||||After-tax|amount||
||Opening|Amount|other gains|Less:|||Closing|
|Items||||||||
||||||amount|attributed to||
||balance|before|and transferred|Income tax|||balance|
||||||attributed to|minority||
|||income tax|into gain/loss|expenses||||
||||||the parent|shareholder||
||||in previous|||||
|||||||s||
||||terms|||||
|2. Other misc. incomes that will be||||||||
||91,831.63||||||91,831.63|
|re-classified into gain and loss||||||||
|Investment real estate||||||||
||91,831.63||||||91,831.63|
|measured at fair value||||||||
|Other miscellaneous income|91,831.63||||||91,831.63|

 Other note, including the adjustment of the initial recognition amount of the effective part of the cash flow hedging profit and loss transferred to the hedged item:
36. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplus|||||
||48,842,080.76|2,281,473.75||51,123,554.51|
|reserves|||||
|Total|48,842,080.76|2,281,473.75||51,123,554.51|

 Note, including explanation about the reason of the change:
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.
37. Retained profit
In RMB
||||
|-|-|-|
|Items|Current period|Last period|
|Adjustment on retained profit of previous period|349,987,825.69|278,149,631.63|
|Retained profit adjusted at beginning of year|349,987,825.69|278,149,631.63|
|Plus: Net profit attributable to owners of theparent|||
||107,272,369.77|96,998,429.76|
|Less: Statutory surplus reserves|2,281,473.75|2,452,938.55|
|Common share dividend payable|22,707,297.15|22,707,297.15|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Closing retained profit|432,271,424.56|349,987,825.69|

 Details of retained profit adjusted at beginning of the period
1) Retrospective adjustment due to adopting of the Enterprise Accounting Standard and related regulations, included the retained profit by RMB0.
2). Variation of accounting policies, influenced the retained profit by RMB0.
3). Correction of material accounting errors, influenced the retained profit by RMB0.
4) Change of consolidation range caused by merger of entities under common control, influenced the retained profit by RMB0.
5) Other adjustment influenced the retained profit by RMB0.
38. Operational revenue and costs
In RMB
||||||
|-|-|-|-|-|
||Amount occurred in the current period||Occurred in previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Main business|2,492,635,367.98|2,135,389,422.03|1,896,533,575.46|1,573,131,645.17|
|Other businesses|57,832,126.80|36,134,778.32|41,790,860.05|17,705,140.85|
|Total|2,550,467,494.78|2,171,524,200.35|1,938,324,435.51|1,590,836,786.02|

 39. Business tax and surcharge
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Business tax|23,143,208.47|14,227,005.22|
|City maintenance and construction tax|5,128,049.65|4,077,936.61|
|Education surtax|3,704,749.51|2,163,665.87|
|Property tax|1,024,088.16|1,019,630.24|
|Land using tax|125,624.48|107,681.50|
|Others|490,836.33|1,259,720.55|
|Total|33,616,556.60|22,855,639.99|

 Others:
See VI. Tax for the calculation standard of business tax and surcharges.
40. Sales expense
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Labor costs|28,418,273.77|23,748,948.40|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Freight and miscellaneous charges|6,900,391.34|6,207,886.36|
|Travel expense|5,536,009.56|5,067,027.92|
|Entertainment expense|2,068,156.06|2,204,861.40|
|Material consumption|1,693,577.61|1,449,539.85|
|Office costs|1,440,412.04|1,246,910.58|
|Rental|1,572,252.20|1,295,860.13|
|Advertisement and promotion fee|25,047,722.73|2,041,379.42|
|Others|2,588,155.87|1,421,892.64|
|Total|75,264,951.18|44,684,306.70|

 Others:
The increase from last year is mainly because that Fangda SOZN increased its advertisement and promotion expense to expand its business.
41. Management expenses
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Labor costs|83,667,856.48|75,477,871.56|
|Depreciation and amortization|20,481,357.98|18,501,963.63|
|Agencies|2,656,463.76|3,603,925.17|
|Tax|6,751,421.27|6,689,450.36|
|Maintenance costs|3,412,131.84|4,055,124.83|
|Water and electricity|1,184,279.09|1,594,371.07|
|Office expense|3,571,187.92|3,010,166.04|
|Travel expense|4,045,460.27|2,577,863.90|
|R&D|15,984,404.14|16,901,351.15|
|Entertainment expense|2,645,057.19|2,024,918.27|
|Rental|4,785,932.74|2,334,921.30|
|Lawsuit|649,572.33|1,950,459.20|
|Material consumption|778,422.18|1,754,537.01|
|Property management fee|2,516,885.44|2,386,763.59|
|Waste loss|4,691,551.61||
|Others|9,583,792.01|9,721,026.52|
|Total|167,405,776.25|152,584,713.60|

Others:
The waste loss is the loss of waste of poor-quality products of Fangda SOZN.
China Fangda Group Co., Ltd. 2015 Annual Report 42. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Interest expense|80,931,355.63|46,439,424.36|
|Less: interest capitalization|28,904,802.93|15,466,418.47|
|Less: Interest income|3,457,387.56|3,193,733.32|
|Acceptant discount|65,135.33|248,232.09|
|Exchange gain/loss|-1,714,534.78|-383,218.13|
|Commission charges and others|3,752,724.36|1,520,772.27|
|Total|50,672,490.05|29,165,058.80|

 Others:
43. Assets impairment loss
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Bad debt loss|34,581,867.08|23,199,527.20|
|2. Inventory depreciation loss|8,985,113.10|1,587,161.72|
|7. Fixed assets impairment loss||2,651,337.41|
|13. Goodwill impairment loss|6,452,698.92||
|Total|50,019,679.10|27,438,026.33|

 Others:
44. Income from fair value fluctuation
In RMB
||||
|-|-|-|
|Source of income from fluctuation of fair|||
||Amount occurred in the current period|Occurred in previous period|
|value|||
|Financial assets measured at fair value|||
|with variations accounted into current|3,952,285.09|-2,852,885.00|
|income account|||
|Investment real estate measured at fair|||
||85,793,780.49|34,897,632.10|
|value|||
|Total|89,746,065.58|32,044,747.10|

 Others:
China Fangda Group Co., Ltd. 2015 Annual Report 45. Investment income
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Gains from long-term equity investment|||
||-358,979.50|1,054,094.88|
|measured by equity|||
|Investment gain obtained from disposal of|||
|||-1,478,245.70|
|long-term equity investment|||
|Investment gain obtained from disposal of|||
|financial assets measured at fair value with|||
||389,031.83||
|variations accounted into current income|||
|account|||
|Other investment gains|250,897.54|2,144,844.80|
|Total|280,949.87|1,720,693.98|

 Others:
46. Non-business income
In RMB
|||||
|-|-|-|-|
||Amount occurred in the current||Amount accounted into the|
|Items||Occurred in previous period||
||period||current accidental gain/loss|
|Total of gains from disposal of|51,130.66|3,162,999.40||
|non-current assets||||
|Including: Gains from disposal||||
||51,130.66|3,162,999.40||
|of fixed assets||||
|Government subsidy|2,246,386.84|2,340,175.75||
|Penalty income|1,339,217.86|217,749.21||
|Payable account not able to be||||
||2,269,833.14|1,447,458.99||
|paid||||
|Compensation received|51,499.74|41,826.64||
|VAT rebated into revenue|2,086,502.67|1,886,134.97||
|Others|21,623,539.34|7,185,114.22||
|Total|29,668,110.25|16,281,459.18||

Government subsidies accounted into current profit or loss:
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Whether||Amount|||
||||||Whether it is||Occurred in|Related to|
|||||affecting gain||occurred in|||
|Item|Issuer|Reason|Nature||a special||previous|assets/earnin|
|||||and loss in||the current|||
||||||subsidy||period|g|
|||||this year||period|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Railway|||||||||
|transport|||Subsidy for||||||
|screen door|Shenzhen||research||||||
|controlling|Technology||development,|||||Assets-relate|
|||Subsidy||No|No|40,770.60|42,142.45||
|system and|Innovation||technology|||||d|
|information|Committee||upgrade and||||||
|transmission|||improvement||||||
|technology|||||||||
|Major|||||||||
|investment|||||||||
|project prize|||||||||
|from Industry|Gongguan||Local subsidy||||||
|and Trade|Trade and||for|||||Assets-relate|
|||Subsidy||No|No|57,142.80|57,142.80||
|Development|Industry||encouraging|||||d|
|Division of|Bureau||investment||||||
|Dongguan|||||||||
|Finance|||||||||
|Bureau|||||||||
|Massive|||||||||
|production|||Subsidy for||||||
|project of|Guangdong||research||||||
|air-breathing|Development||development,|||||Assets-relate|
|||Subsidy||No|No|122,256.30|106,646.64||
|double-layer|and Reform||technology|||||d|
|hollow glass|Commission||upgrade and||||||
|energy-savin|||improvement||||||
|g curtain call|||||||||
|LED|||Subsidy for||||||
|production|Zhongshan||research||||||
|expansion|Reform and||development,|||||Assets-relate|
|||Subsidy||No|No|31,768.33|||
|technology|Development||technology|||||d|
|renovation|Bureau||upgrade and||||||
|project|||improvement||||||
|Scientific|||||||||
||||Subsidy for||||||
|achievement|||||||||
||Zhongshan||research||||||
|purchase or|||||||||
||Reform and||development,|||||Assets-relate|
|technological||Subsidy||No|No|1,358.33|||
||Development||technology|||||d|
|innovation|||||||||
||Bureau||upgrade and||||||
|service|||||||||
||||improvement||||||
|subsidy|||||||||
||||Subsidy for||||||
|Shenzhen|Shenzhen||||||||
||||research|||||Earning-relat|
|hi-tech|National Tax|Subsidy||No|No||1,011,800.00||
||||development,|||||ed|
|technology|Bureau||||||||
||||technology||||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|subsidy|||upgrade and|||||
||||improvement|||||
|China||||||||
|well-known||||||||
|trademark,|||Subsidy for|||||
|Guangdong|National||research|||||
|well-known|Trademark||development,||||Earning-relat|
|||Subsidy||No|No|200,000.00||
|trademark|Administratio||technology||||ed|
|and|n||upgrade and|||||
|Guangdong|||improvement|||||
|well-known||||||||
|brand subsidy||||||||
|Nanchang||||||||
||Nanchang|||||||
|Industrial and|||Subsidy for|||||
||Industrial and|||||||
|Information|||research|||||
||Information|||||||
|Commission,|||development,||||Earning-relat|
||Commission,|Subsidy||No|No|200,000.00||
|Finance|||technology||||ed|
||Finance|||||||
|Bureau|||upgrade and|||||
||Bureau|||||||
|industry|||improvement|||||
||industry|||||||
|subsidy||||||||
|Nanchang||||||||
|hi-tech||||||||
||Nanchang|||||||
|industrial|||Subsidy for|||||
||Hi-tech|||||||
|park|||research|||||
||Industry Park|||||||
|management|||development,||||Earning-relat|
||management|Subsidy||No|No|100,000.00||
|committee|||technology||||ed|
||committee,|||||||
|and finance|||upgrade and|||||
||Finance|||||||
|bureau|||improvement|||||
||Bureau|||||||
|project||||||||
|subsidy||||||||
||||Subsidy for|||||
||Xinjin||research|||||
|Chengdu||||||||
||Economy and||development,||||Earning-relat|
|New Material||Award||No|No|100,000.00||
||Development||technology||||ed|
|subsidy||||||||
||Bureau||upgrade and|||||
||||improvement|||||
|Nanchang|||Subsidy for|||||
|hi-tech area|Nanchang||research|||||
|management|Hi-tech Area||development,||||Earning-relat|
|||Subsidy||No|No|150,000.00||
|committee|management||technology||||ed|
|industry|committee||upgrade and|||||
|subsidy|||improvement|||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Nanchang|||||||||
|hi-tech|||||||||
||Nanchang||||||||
|finance|||||||||
||Hi-tech||||||||
|bureau|||||||||
||Industry Park||||||||
|industry||||||||Earning-relat|
||management|Subsidy||No|No|162,900.00|141,100.00||
|development||||||||ed|
||committee,||||||||
|zone|||||||||
||Finance||||||||
|committee|||||||||
||Bureau||||||||
|exhibition|||||||||
|subsidy|||||||||
|Jiangxi|||||||||
|Finance|||||||||
||Jiangxi||||||||
|Department||||||||Earning-relat|
||Finance|Subsidy||No|No||136,700.00||
|export||||||||ed|
||Department||||||||
|exhibition|||||||||
|subsidy|||||||||
|Zhongshan|||||||||
|Finance|Zhongshan||||||||
|||||||||Earning-relat|
|Bureau Dubai|Finance|Subsidy||No|No|403,590.48|||
|||||||||ed|
|exhibition|Bureau||||||||
|subsidy|||||||||
|Shenzhen|||||||||
|Market and|||||||||
|Quality|Shenzhen||||||||
|Supervisory|Market and||||||||
|Committee,|Quality||||||||
||||Subsidy for||||||
|Nanshan|Supervisory||||||||
||||research||||||
|Market|Administratio||||||||
||||development,|||||Earning-relat|
|Supervisory|n, Nanshan|Award||No|No|1,000,000.00|||
||||technology|||||ed|
|Management|Market and||||||||
||||upgrade and||||||
|Bureau, 2014|Quality||||||||
||||improvement||||||
|Nanshan|Supervisory||||||||
|People’s|Administratio||||||||
|Government|n||||||||
|high quality|||||||||
|award|||||||||
|Xinjin|Xinjin||||||||
|Technology|Economic||||||||
|||||||||Earning-relat|
|Commission|and|Subsidy||No|No|173,200.00|||
|||||||||ed|
|2015 plant|Technology||||||||
|lease subsidy|Committee||||||||
|Dongguan|Gongguan||||||||
|||Subsidy||No|No|100,000.00||Earning-relat|
|Economic|Economy and||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|and|Information|||||||ed|
|Information|Bureau||||||||
|Bureau|||||||||
|enterprise|||||||||
|development|||||||||
|training|||||||||
|subsidy|||||||||
|Micro-busine|||||||||
|||||||||Earning-relat|
|ss load||Subsidy||No|No|100,000.00|||
|||||||||ed|
|discount|||||||||
|||||||||Earning-relat|
|Others||||No|No|53,400.00|94,643.86||
|||||||||ed|
|Total|--|--|--|--|--|2,246,386.84|2,340,175.75|--|

 Others:
(1) Major projects are disclosed as follows:
1. A total of RMB18 million does not need to be paid as the share transfer payment and reduced as minority interests because the promised performance condition was not met. See Note XV.3 for details.
2. The waste income is RMB2,919,631.00.
47. Non-business expenses
In RMB
|||||
|-|-|-|-|
||Amount occurred in the current||Amount accounted into the|
|Items||Occurred in previous period||
||period||current accidental gain/loss|
|Total of losses from disposal of|574,079.38|1,709,152.13||
|non-current assets||||
|Including: Losses from disposal||||
||572,147.30|1,709,152.13||
|of fixed assets||||
|Intangible asset disposal||||
||1,932.08|||
|loss||||
|Donation|103,000.00|958,000.00||
|Penalty and overdue fine|745,502.42|364,256.62||
|Lawsuit indemnity|16,072,719.43|5,039,045.98||
|Others|738,438.84|2,553,257.37||
|Total|18,233,740.07|10,623,712.10||

Others:
Note: The lawsuit indemnity is the engineering, deposit and interest payable to Wang Weihong provided
according to the second instance. See Note XIII. 1 for details.
China Fangda Group Co., Ltd. 2015 Annual Report 48. Income tax expenses
(1) Details about income tax expense
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Income tax expenses in this period|25,259,694.31|18,618,875.30|
|Deferred income tax expenses|9,950,177.30|-1,125,127.73|
|Total|35,209,871.61|17,493,747.57|

 (2) Adjustment process of accounting profit and income tax expense
In RMB
|||
|-|-|
|Items|Amount occurred in the current period|
|Total profit|103,425,226.88|
|Income tax expenses calculated based on the legal (or applicable)||
||25,856,306.73|
|tax rates||
|Impacts of different tax rates applicable for some subsidiaries|-15,524,249.92|
|Impacts of income tax before adjustment|-891,669.66|
|Impacts of non-deductible cost, expense and loss|3,177,009.40|
|Impacts of using deductible loss of unrecognized deferred||
||-124,836.15|
|income tax assets||
|Deductable temporary difference and deductable loss of||
||24,823,213.25|
|unrecognized deferred income tax assets||
|Taxation impact of R&D expense and (presented with “-”)|-769,745.00|
|Non-taxable income|-4,158,274.96|
|Others|2,732,373.04|
|Income tax expenses|35,209,871.61|

 Other note
Others mainly include the provided income tax of RMB1,119,198.31 paid for liquidation of Hong Kong Junjia and income tax not provided for goodwill impairment loss in this period.
49. Other miscellaneous income
See Note 35
China Fangda Group Co., Ltd. 2015 Annual Report 50. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Interest income|3,457,387.56|3,230,120.82|
|Subsidy income|4,424,840.91|2,134,243.86|
|Retrieving of deposits for exchange bills|21,616,730.24||
|Retrieving of bidding deposits|32,627,388.88|9,893,934.66|
|Other operating accounts|18,283,799.79|16,028,346.33|
|Total|80,410,147.38|31,286,645.67|

 Notes to other cash inflow related to operation:
(2) Other cash paid related to operation
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Sales expense|45,847,988.68|17,958,181.41|
|Administrative expense|47,475,924.55|38,615,205.18|
|Bidding deposit paid|20,962,337.79|868,076.30|
|Net draft deposit net paid||61,152,900.09|
|Other trades|43,684,340.50|14,978,873.55|
|Total|157,970,591.52|133,573,236.53|

 Notes to other cash paid related to operation:
(3) Other cash received related to investment activities
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Bidding and contract deposit related to|||
|||65,500.00|
|construction projects|||
|Total||65,500.00|

 Notes to other cash received related to investment activities:
(4) Other cash paid related to investment activities
In RMB
China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Bidding deposit paid related to|||
||263,000.00|331,500.00|
|construction projects|||
|Total|263,000.00|331,500.00|

 Notes to other cash paid related to investment activities:
(5) Other cash received related to financing
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Fractional historical dividend|398.76||
|Total|398.76||

Notes to other cash received related to financing:
(6) Other cash paid related to financing
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Financing commissioning|1,063,032.79||
|Financing deposit|53,500,000.00||
|Total|54,563,032.79||

Notes to other cash paid related to financing:
51. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
||||
|-|-|-|
|Supplementary information|Amount of the Current Term|Amount of the Previous Term|
|1. Net profit adjusted to cash flow of|||
||--|--|
|business operation|||
|Net profit|68,215,355.27|92,689,344.66|
|Plus: Asset impairment provision|50,019,679.10|27,438,026.33|
|Fixed asset depreciation, gas and petrol|||
||29,667,469.67|26,131,186.99|
|depreciation, production goods depreciation|||
|Amortization of intangible assets|4,231,668.67|3,670,872.39|
|Amortization of long-term amortizable|||
||2,112,083.23|1,336,953.32|
|expenses|||

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Loss from disposal of fixed assets, intangible|||
|assets, and other long-term assets (“-“ for|467,841.04|-1,453,847.27|
|gains)|||
|Loss from fixed asset discard (“-“ for gains)|55,107.68||
|Loss from fair value fluctuation (“-“ for|||
||-89,746,065.58|-32,044,747.10|
|gains)|||
|Financial expenses (“-“ for gains)|53,288,131.52|30,961,335.85|
|Investment losses (“-“ for gains)|-280,949.87|-1,720,693.98|
|Decrease of deferred income tax asset|||
||-13,310,154.14|-10,202,800.67|
|(“-“ for increase)|||
|Increase of deferred income tax asset (“-“ for|||
||23,260,331.44|9,077,672.93|
|increase)|||
|Decrease of inventory (“-“ for increase)|-344,116,557.17|-523,064,898.18|
|Decrease of operational receivable items|||
||-382,966,262.27|-292,111,913.10|
|(“-“ for increase)|||
|Increase of operational receivable items|||
||296,786,891.68|172,552,478.48|
|(“-“ for decrease)|||
|Others|-58,424,681.46|-61,152,900.09|
|Cash flow generated by business operations,|-360,115,114.04|-557,893,929.44|
|net|||
|2. Major investment and financing operation|||
||--|--|
|not involving with cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|247,739,243.78|102,638,232.19|
|Less: Initial balance of cash|102,638,232.19|285,237,255.38|
|Net increase in cash and cash equivalents|145,101,011.59|-182,599,023.19|

 (2) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|I. Cash|247,739,243.78|102,638,232.19|
|Including: Cash in stock|28,072.46|40,733.33|
|Bank savings can be used at any time|242,777,612.25|102,515,874.25|
|Other monetary capital can be used at|||
||4,933,559.07|81,624.61|
|any time|||
|3. Balance of cash and cash equivalents at|247,739,243.78|102,638,232.19|

China Fangda Group Co., Ltd. 2015 Annual Report
||
|-|
|end of term|

Others:
The amount of endorsed and transferred bank acceptance bills received from sales of products is RMB201,753,470.87.
52. Ownership- or use-right-restricted assets
In RMB
||||
|-|-|-|
|Items|Closing book value|Reason|
|Monetary capital|153,214,093.54|Frozen deposit and pledge|
|Notes receivable|0.00|Loan by pledge|
|Fixed assets|72,007,118.50|Borrowing pledge or frozen by a court|
|Investment real estate|285,817,691.53|Loan by pledge|
|100% stake in Fangda Property|||
||200,000,000.00|Loan by pledge|
|Development held by the Company|||
|Total|711,038,903.57|--|

Others:
53. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
||Closing foreign currency|||
|Items||Exchange rate|Closing RMB balance|
||balance|||
|Monetary capital||||
|Including: USD|386,078.46|6.4936|2,506,998.05|
|HK Dollar|3,837,788.15|0.83778|3,215,222.42|
|SGD|158,228.36|4.5875|725,872.60|
|Including: USD|7,867,710.91|6.4936|51,089,767.53|
|HK Dollar|-28,385,668.25|0.83778|-23,780,958.22|
|SGD|2,710,000.00|4.5875|12,432,125.00|
|AUD|-40,000.00|4.7276|-189,104.00|
|Other receivables||||
|Including: SGD|74,235.00|4.5875|340,553.06|
|Account payable||||
|Including: SGD|225,000.00|4.5875|1,032,187.50|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Other payables||||
|Including: USD|6,120.00|6.4936|39,740.83|
|HK Dollar|100.00|0.83778|78.89|

 Others:
54. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
VIII. Change to Consolidation Scope
1. Change to the consolidation scope for other reasons
In the period, the Company expanded its direct or indirect control to another eight subsidiaryies including Jiangxi Fangda Property Development Co., Ltd., Shenzhen Fangda Property Management Co., Ltd., Shenzhen Qianhai Kechuangyuan Software Co., Ltd., Ganzhou Longneng New Energy Co., Ltd., Pingxiang Fangda Luxin New Energy Co., Ltd., Pingxiang Xiangdong Fangda New Energy Co., Ltd., Nanchang Xinjian Fangda New Energy Co., Ltd. and Dongguan Fangda New Energy Co., Ltd.
In the period, the Company finished the liquidation of directly control subsidiary Hong Kong Junjia, which is removed from the consolidated financial statements.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
||||||||
|-|-|-|-|-|-|-|
|||Registered||Shareholding|||
|Company|Place of business||Business|||Obtaining method|
|||address||Direct|Indirect||
||||Designing,||||
||||manufacturing,||||
|Fangda Jianke|Shenzhen|Shenzhen||98.39%|1.61%|Incorporation|
||||and installation of||||
||||curtain walls||||
||||Production,||||
||||processing and||||
|Fangda|||||||
||Shenzhen|Shenzhen|installation of|14.00%|86.00%|Incorporation|
|Automatic|||||||
||||subway screen||||
||||doors||||
||||Production and||||
|Fangda New|||sales of new-type||||
||Nanchang|Nanchang||75.00%|25.00%|Incorporation|
|Material|||materials||||
||||composite||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||materials and||||
||||production of||||
||||curtain walls||||
||||Design,||||
||||production, sales||||
|Fangda|||and installation of||||
||Nanchang|Nanchang||99.00%|1.00%|Incorporation|
|Aluminium|||aluminum||||
||||materials, doors||||
||||and windows||||
||||Manufacturing of||||
||||semiconductor||||
||||lighting material||||
||||and chips;||||
||||lighting source||||
||||encapsulation;||||
||||developing,||||
|Shenyang Fangda|Shenyang|Shenyang||64.58%||Incorporation|
||||designing,||||
||||manufacturing,||||
||||engineering,||||
||||installation and||||
||||trading of||||
||||semiconductor||||
||||lighting system||||
||||Computer||||
|Kexunda|Shenzhen|Shenzhen|software||100.00%|Incorporation|
||||development||||
||||Real estate||||
|Fangda Property|Shenzhen|Shenzhen|development and|100.00%||Incorporation|
||||operation||||
||||Design and||||
|Fangda New|||||||
||Shenzhen|Shenzhen|construction of|100.00%||Incorporation|
|Energy|||||||
||||PV power plants||||
||||Trusted||||
||||processing of||||
|Chengdu Fangda|Chengdu|Chengdu|||100.00%|Incorporation|
||||building curtain||||
||||wall materials||||
|Shihui|||||||
|International|Virgin Islands|Virgin Islands|Investment|100.00%||Incorporation|
|Holding Co., Ltd.|||||||
||||Installation and||||
|Dongguan New|||||||
||Dongguan|Dongguan|sales of building||100.00%|Incorporation|
|Material|||||||
||||curtain walls||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||||Designing,||||
|Shenyang|||manufacturing,||||
||Shenyang|Shenyang|||100.00%|Incorporation|
|Decoration|||and installation of||||
||||curtain walls||||
||||Installation of||||
|||||||Consolidation of|
||||LED color curtain||||
|Shenzhen Woke|Shenzhen|Shenzhen|||64.58%|entities not under|
||||wall, city and||||
|||||||common control|
||||road lamps||||
||||Production and|||Consolidation of|
|Fangda SOZN|Zhongshan|Zhongshan|sales of light||60.00%|entities not under|
||||products|||common control|
|Shenzhen Fangda|||||||
|Property|||Property||||
||Shenzhen|Shenzhen|||100.00%|Incorporation|
|Management Co.,|||management||||
|Ltd.|||||||
|Jiangxi Fangda|||||||
||||Real estate||||
|Property|||||||
||Nanchang|Nanchang|development and|100.00%||Incorporation|
|Development Co.,|||||||
||||operation||||
|Ltd.|||||||
|Ganzhou|||Design and||||
|Longneng New|Ganzhou|Ganzhou|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Pingxiang Fangda|||Design and||||
|Luxin New|Pingxiang|Pingxiang|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Pingxiang|||||||
||||Design and||||
|Xiangdong|||||||
||Pingxiang|Pingxiang|construction of||100.00%|Incorporation|
|Fangda New|||||||
||||PV power plants||||
|Energy Co., Ltd.|||||||
|Nanchang Xinjian|||Design and||||
|Fangda New|Nanchang|Nanchang|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|Dongguan|||Design and||||
|Fangda New|Dongguan|Dongguan|construction of||100.00%|Incorporation|
|Energy Co., Ltd.|||PV power plants||||
|HK Junjia|Hong Kong|Hong Kong|Investment|100.00%||Incorporation|
|Kechuangyuan|||Software||||
||Shenzhen|Shenzhen|||100.00%|Incorporation|
|Software|||development||||

Others:
Hong Kong Junjia was liquidated in 2015.
China Fangda Group Co., Ltd. 2015 Annual Report (2) Major non wholly-owned subsidiaries
In RMB
||||||
|-|-|-|-|-|
||||Dividend to be|Interest balance of|
||Shareholding of minority|Profit and loss attributed|||
|Company|||distributed to minority|minority shareholders in|
||shareholders|to minority shareholders|||
||||shareholders|the end of the period|
|Shenyang Fangda|35.42%|-2,655,608.29||49,731,810.66|
|Fangda SOZN|40.00%|-36,399,621.90||-32,191,155.69|

 Note to the difference between shareholdings of minority shareholders in subsidiaries and percentage of votes:
Others:
(3) Financial highlights of major non wholly owned subsidiaries
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Opening balance||||||
|Compan||Non-curr|||Non-curr|||Non-curr|||Non-curr||
||Current||Total ofassets|Current||Total|Current||Total of|Current||Total|
|y||ent|||ent|||ent|||ent||
||asset|||liabilities||liabilities|asset||assets|liabilities||liabilities|
|||assets|||liabilities|||assets|||liabilities||
|Shenyan|11,015,3|96,973,8|107,989,|26,628,4||26,628,4|11,169,3|102,807,|113,977,|25,118,9||25,118,9|
|g Fangda|01.41|89.70|191.11|49.55||49.55|16.98|842.68|159.66|35.62||35.62|
|Fangda|86,090,1|17,680,8|103,771,|182,294,|1,954,47|184,248,|98,422,1|24,060,4|122,482,|111,961,||111,961,|
|SOZN|53.63|88.58|042.21|458.10|3.34|931.44|61.21|01.24|562.45|396.93||396.93|

 In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount occurred in the current period||||Occurred in previous period||||
|||||Business||||Business|
|Company|||Total of misc.||||Total of misc.incomes||
||Turnover|Net profit||operation|Turnover|Net profit||operation|
||||incomes||||||
|||||cash flows||||cash flows|
|Shenyang||||||-16,384,819.4|-16,384,819.4||
|||-7,497,482.48|-7,497,482.48|||||-95,859.16|
|Fangda||||||3|3||
|Fangda|148,759,807.|-90,999,054.7|-90,999,054.7||95,761,317.8|||-13,259,799.7|
|||||-6,183,507.98||4,320,158.67|4,320,158.67||
|SOZN|01|5|5||4|||3|

 Others:
2. Interests in joint ventures or associates
(1) Financial summary of insignificant joint ventures and associates
In RMB
|||
|-|-|
|Closing balance/amount occurred in this|Opening balance/amount occurred in|
|period|previous period|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Joint venture:|--|--|
|Total shareholding|--|--|
|Associate:|--|--|
|Total book value of investment|10,489,680.93|11,048,660.43|
|Total shareholding|--|--|
|Net profit|-358,979.50|1,058,094.88|
|Total of misc. incomes|-358,979.50|1,058,094.88|

 Other note
X. Risks of Financial Tools
Major financial tools of the Group include monetary fund, accounts receivable, receivable bills, other receivables, other current assets, financial assets measured at fair value and whose change recorded in the profit and loss of this period, accounts payable, interest payable, payable bills, other payables, short-term borrowings, other current liabilities, non current liabilities due within one year and long-term borrowings. Details about the Group's financial instruments are disclosed in related notes. The following explains risks related to the financial instruments and risk management policies adopted by the Group to lower the risks. The management of the Group manages and monitor the risks to ensure that the risks are within the acceptable range.
1. Risk management target and policy
The target of the risk management is to balance between risk and benefit and lower financialrisks’ impacts on theGroup’s financial performance. Based on the target, the Group has formulated risk management policy to identify and analyze risks facing the Group and set an appropriate acceptable level and internal control procedures to monitor the risks. The Group regularly reviews the risk management policies and related internal control system to suit the market status and changes in theGroup’s operating activities. The internal auditing department of the Group will regularly or randomly check the implementation of the internal control system.
Risks caused by theGroup’s financial instruments are credit risk, liquidity risk and market risk (including interest, exchange rate and product price/equity tool price risks).
(1) Credit risk
Credit risk is caused by the failure of one party of a financial instrument in performing its obligations, causing the risk of financial loss for the other party.
The Group manages credit risks through classification. The credit risk is mainly caused by bank deposit and receivables.
TheGroup’s bank deposit is mainly deposited in state-owned banks and large-sized listed banks. The credit risk caused by bank deposited is minor.
For receivables, the Group sets up related policies to control the credit risk. The Group set the credit line and term
for debtors according to their financial status, external rating, and possibility of getting third-party guarantee,
credit record and other factors. The Group regularly monitorsdebtors’ credit record. For those with poor credit
China Fangda Group Co., Ltd. 2015 Annual Report record, the Group will send written payment reminders, shorten or cancel credit term to lower the general credit risk.
The largest credit risk facing the Group is the book value of each financial asset on the balance sheet. The Group makes no guarantee that may cause the Group credit risks.
Among theGroup’s receivables, accounts receivable from top 5 customers account for12.92% of the total accounts receivable (2014:11.26%); among other receivables, other receivables from top 5 customers account for19.64% of the total other receivables (2014:27.06%).
(2) Liquidity risk
Liquidity risk is the risk of capital shortage when the Group needs to pay cash or settled with other financial assets.
The Group keeps adequate cash and cash equivalent, and monitors the level to ensure that the cash and cash equivalent can meet the operation needs. The management of the Group monitors the use of bank loans and ensures that they are used as agreed. The Group also obtains guarantee from financial institutions for adequate standby fund to meet short-term and long-term capital demand.
The Group can also use fund generated by operating activities and bank and other loans. On December 31, 2015, bank loan credit that the Group has not used was RMB2,493,301,800 (December 31, 2014: RMB1,046,395,900). Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the end of the period:
||||||
|-|-|-|-|-|
||Closing amount||||
|Assets|Less than 1 year|Within 1-3 years|Over 3 years|Total|
|Financial liabilities:|||||
|Short-term loans|114,795.78|||114,795.78|
|Notes payable|30,352.76|||30,352.76|
|Account payable|86,262.17|500.67||86,762.84|
|Interest payable|324.18|||324.18|
|Other payables|8,267.73|||8,267.73|
|Other current liabilities|9,842.56|||9,842.56|
|Long-term loans|||30,039.56|30,039.56|
|Total liabilities|249,845.18|500.67|30,039.56|280,385.41|

Financial liabilities and excluded guarantees held by the Group by undiscounted residual contract cash flow (in RMB10,000) at the beginning of the period:
||||||
|-|-|-|-|-|
||Opening amount||||
|Assets|Less than 1 year|Within 1-3 years|Over 3 years|Total|
|Financial liabilities:|||||
|Short-term loans|110,000.00|||110,000.00|
|Notes payable|22,726.65|||22,726.65|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|Account payable|68,359.80|25.50|125.53|68,510.83|
|Interest payable|205.59|||205.59|
|Other payables|4,535.77|206.80||4,742.57|
|Non-current liabilities due in 1year|600.00|||600.00|
|Long-term payable||600.00||600.00|
|Total liabilities|206,427.81|832.30|125.53|207,385.64|

(3) Market risk
Market risk of financial instrument is caused by changes in the fair value of financial instruments or future cash flow, including interest risk, exchange rate and other price risks.
Interest rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the market interest rate. The interest rate risk can be caused by recognized interest-bearing financial instruments and unrecognized financial instruments.
The Group's interest rate risk is mainly caused by short-term borrowings, other current liabilities and long-term borrowings. Financial liabilities with floating interest rate cause cash flow interest rate risk for the Group. Financial liabilities with fixed interest rate cause fair value interest rate risk for the Group. The Group decides the proportion between fixed interest rate and floating interest rate according to the market environment and regularly reviews and monitors the combination of fixed and floating interest rate instruments. All financial liabilities of the Group at the end of the period bear fixed interest rates.
The Group pays close attention to the risks of changing interest rates. The Group adopts no hedging policies currently. The management is responsible for monitoring the interest risks. As fixed deposits are short-term borrowing, the interest rate risk of the fair value of bank deposit is minor.
On December 31, 2015, if the interest rate of borrowings with floating interest rates rises or drops 50 base points, the net profit of the Group andshareholders’ interest will decrease or increase about RMB25,000.00 (December 31, 2014: RMB30,694.44).
Exchange rate risk
Exchange rate risk is caused by fluctuation of the fair value or future cash flow of financial instruments caused by changes in the foreign exchange rates. The exchange rate risk can be caused by financial instruments priced in foreign currencies.
The Group mainly operates in China and use RMB as the settlement currency. Therefore, the exchange rate risk facing the Group is minor.
See Note VII. 53 Foreign Currency Item Note for theGroup’s financial assets and liabilities priced in foreign currencies.
Other price risks
Other price risks refer to risks of fluctuations caused by changes to market prices, regardless of whether the
changes are caused by factors related to a single financial tool or issuer, or factors related to all similar financial
China Fangda Group Co., Ltd. 2015 Annual Report tools traded in the market. Other price risks come from changes in product prices or equity tool prices.
Investment in financial assets held by the Group, classified as measured at fair value and whose changes recorded into the gain and loss in this period is measured at its fair value on the balance sheet date. Therefore, the Group bears risks of changes in the securities market.
The Group closely follows impacts of price changes to theCompany’s securities investment price risks. The Group takes no measure to prevent other price risks currently.The management is responsible for monitoring the other price risks.
2. Capital management
TheGroup’s capital management aims to ensure continuous operation of the Group, provide returns for shareholders, help other interested parties make benefit, and maintain the best capital structure and lower capital cost.
The Group may adjust the dividend distributed to shareholders, issue new shares or sell assets to maintain or adjust the capital structure.
The Group monitors the capital structure based on the assets/liability ratio. On December 31, 2015, theGroup’s assets/liability ratio is70.12% (December 31, 2014:64.49%).
XI. Fair Value
1. Closing fair value of assets and liabilities measured at fair value
In RMB
||||||
|-|-|-|-|-|
||Closing fair value||||
|Items|||||
||First level fair value|Second level fair value|Third level fair value|Total|
|1. Continuous fair value|||||
||--|--|--|--|
|measurement|||||
|(2) Investment in equity|||||
||14,546,206.58|||14,546,206.58|
|tools|||||
|2. Leased building||304,615,212.53||304,615,212.53|
|Total assets measured at|||||
||14,546,206.58|304,615,212.53||319,161,419.11|
|fair value continuously|||||
|2. Discontinuous fair|||||
||--|--|--|--|
|value measurement|||||

2. Recognition basis of market value of continuous and discontinuous items measured at first level fair value
The Group determines the fair value using quotation in an active market for financial instruments traded in an
active market;
China Fangda Group Co., Ltd. 2015 Annual Report Valuation technique and qualitative and quantitative information for key parameters of continuous and discontinuous second level fair value items
For investment in real estate similar with real estate transaction, the Group uses valuation
techniques to determine its fair value. The technique is comparison method. Inputs include transaction date, status, region and other factors.
4. Switch between different levels, switch reason and switching time policy
In the period, there is no switch in the financial assets measured at fair value between the first and second level or transfer in or out of the third level.
5. Fair value of financial assets and liabilities not measured at fair value
Financial assets and liabilities measured at amortized cost include: monetary capital, bills receivable, accounts receivable, other receivables, short-term borrowings, notes payable, accounts payables, other payables, and long-term payables.
The difference between book value and fair value of financial assets and liabilities not measured at fair value is small.
XII. Related Parties and Transactions
1. Parent of the Company
|||||||
|-|-|-|-|-|-|
|||||Share of the parent|Voting power of the|
|Parent|Registered address|Business|Registered capital|||
|||||co. in the Company|parent company|
|Shenzhen Banglin||||||
|Technologies||||||
||Shenzhen|Industrial investment|3,000.00|9.09%|9.09%|
|Development Co.,||||||
|Ltd.||||||
|Shenzhen Shilihe||||||
||Shenzhen|Industrial investment|1,978.0992|2.36%|2.36%|
|Investment Co., Ltd.||||||
|Shengjiu Investment||||||
||Hong Kong|Industrial investment|HKD1.00|5.00%|5.00%|
|Ltd.||||||

Particulars about the parent of the Company
(1) All of the investors of Shenzhen Banglin Technology Development Co., Ltd.– the holding shareholder of the Company, are natural persons. Among them, Chairman Xiong Jianming is 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.
China Fangda Group Co., Ltd. 2015 Annual Report The final controller of the Company is Xiong Jianming.
Others:
2. Subsidiaries of the Company
See Note IX. (1).
3. Joint ventures and associates
Information about other joint ventures or associates with related transactions in this period or with balance generated by related transactions in previous period:
|||
|-|-|
|Joint venture or associate|Relationship with the Company|
|Shenzhen Ganshang Joint Investment Co., Ltd.|Associate|
|Shenzhen Huihai Yirong Internet Service Co., Ltd.|Associate|

Other note
4. Other associates
|||
|-|-|
|Other related parties|Relationship with the Company|
|Directors, manager, CFO and secretary of the Board of Directors|Key management|

Other note
5. Related transactions
(1) Related leasing
The Company is the leasor:
In RMB
|||||
|-|-|-|-|
||||Rental recognized in previous|
|Name of the leasee|Category of asset for lease|Rental recognized in the period||
||||period|
|Shenzhen Ganshang Joint||||
||Houses & buildings|125,213.36|77,354.20|
|Investment Co., Ltd.||||

Note to related leasing
(2) Related guarantees
The Company is the guarantor:
In RMB
||||||
|-|-|-|-|-|
|Beneficiary party|Amount guaranteed|Start date|Due date|Completed or not|
|Fangda New Material|62,000,000.00|27.09.15|27.09.16|No|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|Fangda New Material|80,000,000.00|27.05.15|24.05.16|No|
|Fangda Automatic|200,000,000.00|24.09.15|23.09.16|No|
|Fangda Automatic|50,000,000.00|21.10.15|17.09.16|No|
|Fangda Jianke|710,000,000.00|19.06.15|18.06.16|No|
|Fangda Jianke|400,000,000.00|17.09.15|16.09.16|No|
|Fangda Jianke|260,000,000.00|10.10.15|17.09.16|No|
|Fangda Jianke|200,000,000.00|22.07.15|21.07.16|No|
|Fangda Jianke|150,000,000.00|22.09.15|22.09.16|No|
|Fangda Jianke|150,000,000.00|01.01.15|01.01.16|No|
|Fangda Jianke|45,000,000.00|21.04.15|13.04.16|No|
|Fangda Property|1,300,000,000.00|03.02.15|02.02.23|No|
|Fangda SOZN|20,000,000.00|29.01.15|30.01.16|No|

The Company is the guarantied party:
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Amount guaranteed|Start date|Due date|Completed or not|
|Fangda Jianke, Fangda|||||
||15,000,000.00|22.09.15|22.09.16|No|
|Automatic|||||
|Fangda Jianke|20,000,000.00|29.10.15|28.10.16|No|
|Fangda Jianke, Fangda|||||
||20,000,000.00|08.09.15|08.09.16|No|
|New Energy|||||

Note to related guarantees
Note: The above-mentioned guarantees are all associated guarantees within interested entities of the Group.
(3) Remuneration of key management
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Directors, supervisors and senior|||
||6,801,794.99|7,089,310.00|
|management|||

XIII. Contingent events
1. Contingencies
(1) Significant contingencies on the balance sheet date
1) Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
China Fangda Group Co., Ltd. 2015 Annual Report In 2010, Wang Weihong filed a lawsuit to the
1st
Middle Court of Chongqing against Fangda Jianke, demanding engineering payment and loss of RMB17.07 million and interest. In June 2015, the court made the first-instance judgment (2014) Yu
1st
Court No.00322. Fangda Jianke is required to pay RMB14,020,443.99 and interest to Wang Weihong in 10 days upon the effectiveness of the judgment and refund deposit of RMB2,345,000.00 and interest to Wang Weihong. Fangda Jianke appeal to Supreme People's Court in October 2015. By the report date, Fangda Jian ke has made the provision of the construction payable, deposit and interest of RMB23,456,800 with RMB23 million Frozen by the court. In June 2015, Fangda Jianke filed a lawsuit against Wang Weihong, requiring an indemnity of RMB23 million and de-freezing of the amount RMB23 million by the bank. By the report date, the lawsuit remains pending.
In 2013, Fangda Jianke filed a lawsuit to Shenyang MiddlePeople’s Court again Shenyang Lidu Commerce Co., Ltd., requiring construction payment and loss of RMB9,375,483.47 and the interest. By the report, the construction quality certificate is in application and the second trial remains pending.
(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 Jianke within 15 days of the effectiveness of the conciliation statement. By December 31, 2014 , Fangda Jianke has recovered RMB1,950,000.00.
On December 23, 2015, Zhongshan GuzhenPeople’s Court judged according to中二法古民二初字第1040号 that Fangda SOZN make the payment of RMB10,331,348.20, interest and the lawsuit fee to Foshan Youfeng Trading Co., Ltd. within 15 days. By the report date, Fangda SOZN has not made the payment.
(3) Contingent liabilities formed by providing of guarantee to othercompanies’ debts and their influences on financial situation
By December 31, 2015, the Group has provided loan guarantees for the following entities:
|||||||
|-|-|-|-|-|-|
|Name of guaranteedentity|Amount|Amount|Start date|End date|Notes|
|Fangda New Material|Guarantee|100.00|2015-5-30|2016-5-30||
|Fangda New Material|Guarantee|2,000.00|2015-11-5|2016-9-27||
|Fangda New Material|Guarantee|10,000.00|2015-6-1|2016-5-27||
|Fangda Automatic|Guarantee|2,000.00|2015-8-28|2016-3-1||
|Fangda Jianke|Guarantee|5,600.00|2015-12-3|2016-12-2||
|Fangda Jianke|Guarantee|2,500.00|2015-2-11|2016-2-11||
|Fangda Jianke|Guarantee|5,000.00|2015-6-29|2016-6-28||
|Fangda Jianke|Guarantee|5,000.00|2015-8-3|2016-8-2||
|Fangda Jianke|Guarantee|5,000.00|2015-8-28|2016-8-27||
|Fangda Jianke|Guarantee|5,000.00|2015-1-16|2016-1-16||
|Fangda Jianke|Guarantee|5,000.00|2015-11-20|2016-11-20||
|Fangda Jianke|Guarantee|5,000.00|2015-7-28|2016-7-28||
|Fangda Jianke|Guarantee|5,000.00|2015-7-30|2016-7-30||
|Fangda Jianke|Guarantee|2,000.00|2015-9-23|2016-9-20||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||
|-|-|-|-|-|
|Fangda Jianke|Guarantee|2,100.00|2015-7-21|2016-1-21|
|Fangda Jianke|Guarantee|5,000.00|2015-8-21|2016-8-20|
|Fangda Jianke|Guarantee|5,000.00|2015-10-30|2016-10-29|
|Fangda Jianke|Guarantee|4,500.00|2015-4-21|2016-4-13|
|Fangda Property|Pledgeguarantee|2,761.20|2015-2-12|2023-2-11|
|Fangda Property|Pledgeguarantee|7,009.77|2015-4-23|2023-2-11|
|Fangda Property|Pledgeguarantee|4,334.40|2015-6-8|2023-2-11|
|Fangda Property|Pledgeguarantee|426.63|2015-8-11|2023-2-11|
|Fangda Property|Pledgeguarantee|3,525.73|2015-9-11|2023-2-11|
|Fangda Property|Pledgeguarantee|518.82|2015-9-23|2023-2-11|
|Fangda Property|Pledgeguarantee|480.00|2015-10-14|2023-2-11|
|Fangda Property|Pledgeguarantee|3,433.95|2015-11-6|2023-2-11|
|Fangda Property|Pledgeguarantee|545.76|2015-11-20|2023-2-11|
|Fangda Property|Pledgeguarantee|2,388.91|2015-12-9|2023-2-11|
|Fangda Property|Pledgeguarantee|4,614.39|2015-12-28|2023-2-2|
|Fangda SOZN|Guarantee|2,000.00|2015-1-29|2016-1-30|
|Total||107,839.56|||

Note: Contingent liabilities caused by guarantees provided for other entities are all related guarantees between interested entities in the Group.
On December 31, 2015, the Company has no other contingent events that should be disclosed.
XIV. Post-balance-sheet events
1. Profit distribution
In RMB
|||
|-|-|
|Profit or dividend to be distributed|75,690,990.50|
|Profit or dividend approved to be distributed|75,690,990.50|

China Fangda Group Co., Ltd. 2015 Annual Report 2. Notes to other issues in post balance sheet period
On April 14, 2016, the Company, Fangda New Energy, Fangda SOZN, Shenzhen Jinma Yinke Electronics Co., Ltd., Luo Huichi and Jin Yaping (sponse of Luo Huichi) signed the Stock Repurchasing and Debt Pyament Agreement. For details, see Note XIII.3.
On January 27, 2016, the Company paid RMB20 million to the Henglan branch of BOC to repay the bank loan borrowed by Fangda SOZN.
On 22.04.16, the Company has no other contingent events that should be disclosed.
XV. Other material events
1. Suspension of operations
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Suspended|
|||||||operation profit|
|||||Income tax|||
|Items|Income|Expense|Total profit||Net profit|attributable to the|
|||||expenses|||
|||||||owners of parent|
|||||||company|
|Suspension of|||||||
||285,943.62|8,346,179.91|-8,060,236.29|1,119,198.31|-9,179,434.60|-6,522,042.00|
|operations|||||||

Other note
(1) Shenyang Fangda has been suspended from operating since 2012 and is in the liquidation process. Shenzhen Woke has been liquidated according to the resolution of theShareholders’ Meeting in 2012, the company's business has been suspended. Fangda Aluminium has been suspended from operating since 2011 and is in the liquidation process. Hong Kong Junjia was liquidated in 2015.
(2) The net profit from suspended business in 2015 includes: the net profit of RMB-7,502,520.05 of Shenyang Fangda and its subsidiaries, RMB-1,568,260.36 of Hong Kong Jiajun and RMB-108,654.19 of Fangda Aluminium.
2. Segment information
(1) Recognition basis and accounting policy for segment report
The Group divides its businesses into five reporting segments. The reporting segments are determined based on financial information required by routine internal management. TheGroup’s management regularly review the operating results of the reporting segments to determine resource distribution and evaluate their performance. The reporting segments are:
(1) Curtain wall segment, production and sales of curtain wall materials, construction curtain wall design,
production and installation;
China Fangda Group Co., Ltd. 2015 Annual Report (2) Rail transport segment, assembly and processing of metro screen doors;
(3) Real estate segment, development and operating of real estate on land of which land use right is legally obtained by the Company; property management;
(4) New energy segment,R&D, installation and sales of PV devices, design and construction of PV power plants;R&D, design, production, sales and installation of light accessories, and other lights, LED products and hardware. (5) Others
The segment report information is disclosed based on the accounting policies and measurement standards used by the segments when reporting to the management. The policies and standards should be consistent with those used in preparing the financial statement.
(2) Financial information
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Curtain wall|R ail transport|Real estate|New energy|Others|Offset betweensegments|Total|
|Operationincome|2,125,881,648.28|258,278,535.47||149,151,356.13|29,977,446.65|12,821,491.75|2,550,467,494.78|
|Including:externaltransactionincome|2,121,525,966.51|258,246,785.73||149,015,492.60|21,679,249.94||2,550,467,494.78|
|Inter-segmenttransactionincome|4,355,681.77|31,749.74||135,863.53|8,298,196.71|12,821,491.75||
|Including:major businessturnover|2,104,936,397.26|255,752,825.73||136,406,079.32||4,459,934.33|2,492,635,367.98|
|Operation cost|1,789,359,293.12|202,658,617.93||180,736,929.14|3,788,422.31|5,019,062.15|2,171,524,200.35|
|Including:major businesscost|1,773,677,797.09|202,170,744.76||164,200,739.52||4,659,859.34|2,135,389,422.03|
|Operation cost|242,786,794.78|14,389,183.48|9,931,426.21|65,261,777.77|-670,394.04|44,746,350.47|286,952,437.73|
|Operatingprofit/(loss)|93,735,560.38|41,230,734.06|-9,931,426.21|-96,847,350.78|26,859,418.38|-36,943,920.87|91,990,856.70|
|Total assets|3,321,292,070.11|438,339,346.47|1,246,929,440.20|180,085,472.66|1,963,760,383.48|2,686,258,901.52|4,464,147,811.40|
|Total liabilities|2,170,642,731.|210,440,175.37|1,057,358,475.|164,107,950.67|738,414,314.45|1,210,858,920.|3,130,104,726.|

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|15|01|12|53|

 3. Acquisition of shares of Fangda SOZN
(1) About the acquisition
Fangda New Energy entered into an investment agreement with Luo Huichi on July 18, 2014. According to the agreement, Fangda Energy and Shenzhen Jinma Yinke entered into a share transfer agreement on July 29, 2014. Content of the investment and share transfer agreement:
1. Terms of the transaction
Luo Huichi makes contribution to a newly established company with limited liability using fixed assets, intangible assets, sales network and teams in three companies under her actual control: Zhongshan SOZN Lighting, Zhongshan Henglan Tengding Lighting Factory, Shenzhen Jinma Yinke. After confirming the TargetCompany’s assets, both parties entered into the stock transfer and capital increment agreement, under which the Company acquires60% stack in the Target Company by acquiring stocks and injecting capital.
2. Transaction amount
The acquisition amount does not exceed RMB48 million, including a conditional payment to Luo Huichi of RMB18 million and a conditional capital injection to the Target Company of RMB30 million.
3. Payment term
The stock transfer amount is up to RMB18 million. Fangda New Energy shall pay the amount to Luo Huichi in three installments: The first installment of RMB 6 million shall be paid after both parties sign the stock transfer agreement, complete the transfer and registration procedures, and Fangda New Energy holds60% of the TargetCompany’s stocks. The second installment of RMB 6million shall be paid after the Target Company realizes90% or higher of the sales or net profit target for 2014 (between July and December); the first installment of RMB6 million will be paid after the Target Company realizes90% or higher of the sales or net profit target for 2015. If the conditions for the second and third installments are not met, Fangda New Energy does not need to pay the stock transfer amounts to the Counterpart and the60% shareholding of the Target Company by Fangda New Energy remains unchanged.
Fangda New Energy will provide loans of RMB30 million to the Fangda SOZN with a mature date of December 31, 2016 after the share transfer agreement is signed, both parties complete the commercial and industrial registration, Fangda New Energy holds60% of FangdaSOZN’s shares. If Fangda SOZN completes90% of the sales target or accumulative net profit target between July 2014 and December 2016, the loans will be transferred to the acquisition payment of60% of the Target Company and the Target Company does not need to repay the loans. Otherwise, Luo Huichi shall transfer30% of FangdaSOZN’s shares held by her to the Company at the price of RMB1/share.
4. Result guaranty
||||
|-|-|-|
|Period|Target sales(tax-inclusive)|Target net profit|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|July to December, 2014|RMB150 million|RMB3 million|
|July to December, 2015|RMB600 million|RMB36 million|
|July to December, 2016|RMB1 billion|RMB60 million|
|Total|RMB1.75 billion|RMB99 million|

5. Special agreement
Luo Huichi agrees to sign a three-year labor contract, non-disclosure agreement and non-competition agreement with Fangda SOZN and agrees not to be involved in the same or similar business directly, indirectly, paid or not paid, full-time or part-time, by starting a company or cooperating with others. If Luo fails to honor the guaranty, the Company has the right to terminate the agreement and require Luo to return the stock transfer amount and bear the liability of the breach.
Both parties agree that Fangda SOZN will not distribute profit between July 2014 and December 2016, which will be fully used to push the development of Fangda SOZN.
(2) Performance
Between July and December 2014, Fangda SOZN recorded a tax-included income of RMB136,832,900 and net profit of RMB521,200, reaching90% of the sales target for 2014. Fangda New Energy made the second installment of RMB6 million to Shenzhen Jinma Yinke.
In 2015, Fangda SOZN recorded a tax-included income of RMB174,049,000 and a net profit of RMB-90,999,100, which does not reach90% of the sales target or net profit target for 2015. Therefore, Fangda New Energy does not need to pay the third installment of RMB6 million to Shenzhen Jinma Yinke. The amount is recognized as non-business income. The interest-free loan provided to Fangda SOZN of RMB30 million does not need to be transferred to the acquisition payment. Fangda SOZN shall repay the load to Fangda New Energy upon maturity. Therefore, the Group transfers RMB12 million back to the minority interest and recognized a non-business income of RMB12 million.
(3) Share repurchasing and debt payment agreement
On 22.04.16, the Company, Fangda New Energy, Fangda SOZN, Shenzhen Jinma Yinke Electronics Co., Ltd., Luo Huichi and Jin Yaping (sponse of Luo Huichi) signed the Stock Repurchasing and Debt Pyament Agreement. According to the agreement, Shenzhen Jinma Yinke shall pay RMB12 million to repurchase the60% stake in Fangda SOZN held by Fangda New Energy and all parties are released from all rights and obligations under the Investment Agreement. All parties agree, if Fangda SOZN repays the debt of RMB23 million within the agreed period, the Company and Fangda New Energy shall give up all remaining debt on Fangda SOZN. The agreement was approved at the
20th
meeting of the
7th
Board of Directors held on April 22, 2016 and comes into effect after being approved at theShareholders’ Meeting.
4. Private share issuance
TheGroup’s private share issuance proposal was approved at the
18th
meeting of the
7th
Board of
Directors held on November 23, 2015. The Proposal of Private A-share Issuance in 2015 was
approved at the
4th
extraordinaryshareholders’ meeting held on December 10, 2015. No more than
China Fangda Group Co., Ltd. 2015 Annual Report 48,000,000 shares will be issued (In case ex-dividend or ex-interest events happened during the period from pricing ex-day to issuing day, such as dividend distribution, bonus shares, or capitalizing of common reserves, the price shall be adjusted correspondingly.) to raise no more than RMB469,900,000.
The pricing ex-day is the announcement day of the resolutions of the
18th
meeting of the
7th Board of Directors. The price will be90% of the average price in 20 days prior to the pricing ex-date, namely RMB9.79 per share. The raised fund will be fully used to invest in the Jiangxi Pingxiang Luxi 13 MWp, Jiangxi Pingxiang Xiangdong District 20Mwp and Jiangxi Nanchang Isuzu parking place roof 6.3MWp distributed PV power generation project and working capital.
On March 9, 2016, theCSRC’s issuance committee reviewed and approved the issuance application. By the report date, the Company has not received the approval document from CSRC.
XVI. Notes to Financial Statements of the Parent
1. Account receivable
(1) Account receivable disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|(2) Recognition and|||||||||||
||356,660.||10,699.8||345,960.7|527,485|||||
|providing of bad debt||100.00%||3.00%|||100.00%|15,824.55|3.00%|511,660.60|
||56||2||4|.15|||||
|provisions on groups|||||||||||
||356,660.||10,699.8||345,960.74|527,485||||511,660.60|
|Total||100.00%||3.00%|||100.00%|15,824.55|3.00%||
||56||2|||.15|||||

Account receivable with major individual amount and bad debt provision provided individually at the end of the period:
□ Applicable√ Inapplicable
In the group, the account receivable of which bad debt provision is made through the account aging method:√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balanceAccount receivable Bad debt provision Provision rate|||
|Age||||
|||Bad debt provision|Provision rate|
|Sub-item of within 1 year||||

China Fangda Group Co., Ltd. 2015 Annual Report
|||||
|-|-|-|-|
|Subtotal for less than 1 year|356,660.5|6 10,699.82|3.00%|
|Total|356,660.5|6 10,699.82|3.00%|

 Group recognition basis:
Account receivable adopting the balance percentage method in the group
□ Applicable√ Inapplicable
Account receivable adopting other methods in the group:
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB-5,124.73 was made in the period. RMB0.00 was recovered or reversed.
(3) Balance of top 5 accounts receivable at the end of the period
The total balance of top-five accounts receivable at the end of the period is RMB342,415.38, accounting for96.01% of the total remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB10,272.46.
2. Other receivables
(1) Other receivables disclosed by categories
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Remaining book|||||Remaining book|||||
||||Bad debt provision|||||Bad debt provision|||
|Type|value||||Book|value|||||
|||||||||||Book value|
|||Proportio||Provision|value||Proportio||Provision||
||Amount||Amount|||Amount||Amount|||
|||n||rate|||n||rate||
|Other receivables|||||||||||
|with major individual|||||||||||
||57,108,4||40,452,1||16,656,29||||||
|amount and bad debt||13.71%||70.83%|||||||
||20.31||27.75||2.56||||||
|provision provided|||||||||||
|individually|||||||||||
|(2) Recognition and|||||||||||
||359,478,||543,116.||358,935,0|255,152||548,475.3||254,604,16|
|providing of bad debt||86.29%||0.15%|||99.97%||0.21%||
||173.41||21||57.20|,639.18||9||3.79|
|provisions on groups|||||||||||
|Other receivables|||||||||||
|with minor individual|||||||||||
|||||||77,046.|||||
|amount and bad debt|||||||0.03%|77,046.00|100.00%||
|||||||00|||||
|provision provided|||||||||||
|individually|||||||||||

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||416,586,593.72||40,995,2|9.84%|375,591,349.76|255,229||625,521.3||254,604,163.79|
|Total||100.00%|||||100.00%||0.25%||
||||43.96|||,685.18||9|||

 Other receivables with major individual amount and bad debt provision provided individually at the end of the period:
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
|Other receivables (by|Closing balance||||
|entity)|Other receivables|Bad debt provision|Provision rate|Reason|
|||||Unrecoverable according|
|Fangda SOZN|57,108,420.31|40,452,127.75|70.83%||
|||||to the agreement|
|Total|57,108,420.31|40,452,127.75|--|--|

In the group, the other receivables of which bad debt provision are made through the account aging method:√ Applicable□ Inapplicable
In RMB
|||||
|-|-|-|-|
||Closing balance|||
|Age||||
||Other receivables|Bad debt provision|Provision rate|
|Sub-item of within 1 year||||
||98,416.60|2,952.50|3.00%|
|Subtotal for less than 1 year|98,416.60|2,952.50|3.00%|
|1-2 years|2,619.35|261.94|10.00%|
|2-3 years|20,000.00|6,000.00|30.00%|
|Over 3 years|1,067,803.54|533,901.77|50.00%|
|Total|1,188,839.49|543,116.21|45.68%|

 Group recognition basis:
Other receivables adopting the balance percentage method in the group:
□ Applicable√ Inapplicable
Other receivables adopting other methods in the group
□ Applicable√ Inapplicable
(2) Bad debt provision made, returned or recovered in the period
A bad debt provision of RMB40,446,768.57 was made in the period. RMB0.00 was recovered or reversed. (3) Other receivables are disclosed by nature
In RMB
||||
|-|-|-|
|By nature|Closing balance of book value|Opening balance of book value|
|Associate accounts|415,397,754.23|253,944,828.64|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|Deposit|100,699.54|100,699.54|
|Other trades|1,088,139.95|1,184,157.00|
|Total|416,586,593.72|255,229,685.18|

 (4) Balance of top 5 other receivables at the end of the period
In RMB
|||||||
|-|-|-|-|-|-|
||||||Balance of bad debt|
|Entity|By nature|Closing balance|Age|Percentage (%)|provision at the end|
||||||of the period|
|Shenzhen Fangda||||||
|Property||||||
||Associate accounts|216,721,332.99|Less than 1 year|52.02%||
|Development Co.,||||||
|Ltd.||||||
|Fangda (Jiangxi)||||||
|Property||||||
||Associate accounts|99,776,565.00|Less than 1 year|23.95%||
|Development Co.,||||||
|Ltd.||||||
|Shihui International||||||
||Associate accounts|30,430,197.80|Less than 1 year|7.31%||
|Holding Co., Ltd.||||||
|Shihui International||||||
||Associate accounts|20,271.90|1-2 years|0.00%||
|Holding Co., Ltd.||||||
|Guangdong Fangda||||||
|SOZN Lighting Co.,|Associate accounts|57,096,878.05|Less than 1 year|13.71%|40,440,585.49|
|Ltd.||||||
|Guangdong Fangda||||||
|SOZN Lighting Co.,|Associate accounts|11,542.26|1-2 years|0.00%|11,542.26|
|Ltd.||||||
|Shenyang Fangda||||||
|Semi-conductor|Associate accounts|36,000.00|Less than 1 year|0.01%||
|Lighting Co., Ltd.||||||
|Shenyang Fangda||||||
|Semi-conductor|Associate accounts|6,906,771.58|1-2 years|1.66%||
|Lighting Co., Ltd.||||||
|Total|--|410,999,559.58|--|98.66%|40,452,127.75|

 3. Long-term share equity investment
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||Remaining book|Impairment||Remaining book|Impairment||
||||Book value|||Book value|
||value|provision||value|provision||
|Investment insubsidiaries|||||||
||1,013,991,568.20|56,780,600.00|957,210,968.20|1,166,555,998.58|46,930,100.00|1,119,625,898.58|
|Investment in|||||||
|associates and|10,489,680.93||10,489,680.93|11,048,660.43||11,048,660.43|
|joint ventures|||||||
|Total|1,024,481,249.13|56,780,600.00|967,700,649.13|1,177,604,659.01|46,930,100.00|1,130,674,559.01|

 (1) Investment in subsidiaries
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Balance of|
||||||Provision made in|impairment|
|Invested entity|Opening balance|Increase|Decrease|Closing balance|||
||||||this period|provision at the|
|||||||end of the period|
|Fangda Jianke|491,950,000.00|||491,950,000.00|||
|Fangda|||||||
||19,800,000.00|||19,800,000.00||19,800,000.00|
|Aluminium|||||||
|HK Junjia|10,600.00||10,600.00||||
|Fangda Automatic|170,385,071.73||151,553,830.38|18,831,241.35|||
|Fangda New|||||||
||74,496,600.00|||74,496,600.00|||
|Material|||||||
|Shenyang Fangda|108,852,073.85|||108,852,073.85|9,861,100.00|36,980,600.00|
|Kexunda|1,000,000.00||1,000,000.00|0.00|||
|Fangda Property|200,000,000.00|||200,000,000.00|||
|Shihui|||||||
|International|61,653.00|||61,653.00|||
|Holding Co., Ltd.|||||||
|Fangda New|||||||
||100,000,000.00|||100,000,000.00|||
|Energy|||||||
|Total|1,166,555,998.58||152,564,430.38|1,013,991,568.20|9,861,100.00|56,780,600.00|

 (2) Investment in associates and joint ventures
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Change (+,-)|||||||||Balance|
|Invested|Opening|||||||||Closing||
|||Increased|Decrease|Investme|Other|Other|Cash|Impairme|||of|
|entity|balance||||||||Others|balance||
|||investmen|d|nt gain|miscellan|equity|dividend|nt|||impairme|

China Fangda Group Co., Ltd. 2015 Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||t|investmen|and loss|eous|change|or profit|provision||ntprovisionat the endof theperiod|
||||t|recognize|income||announce||||
|||||d using|adjustmen||d||||
|||||the equity|t||||||
|||||method|||||||
|1. Joint venture|||||||||||
|2. Associate|||||||||||
|Shenzhen|||||||||||
|Ganshang|||||||||||
|Joint|11,048,66|||-337,462.|||2,200,000||8,511,197||
|Investme|0.43|||45|||.00||.98||
|nt Co.,|||||||||||
|Ltd.|||||||||||
|Shenzhen|||||||||||
|Huihai|||||||||||
|Yirong||2,000,000||-21,517.0|||||1,978,482||
|Internet||.00||5|||||.95||
|Service|||||||||||
|Co., Ltd.|||||||||||
||11,048,66|2,000,000||-358,979.|||2,200,000||10,489,68||
|Subtotal|||||||||||
||0.43|.00||50|||.00||0.93||
||11,048,660.43|2,000,000||-358,979.|||2,200,000||10,489,680.93||
|Total|||||||||||
|||.00||50|||.00||||

4. Operational revenue and costs
In RMB
||||||
|-|-|-|-|-|
||Amount occurred in the current period||Occurred in previous period||
|Items|||||
||Income|Cost|Income|Cost|
|Other businesses|29,977,446.65|3,788,422.31|29,609,371.13|5,669,281.13|
|Total|29,977,446.65|3,788,422.31|29,609,371.13|5,669,281.13|

 Others:
5. Investment income
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|Gains from long-term equity investment|||
|||28,639,627.17|
|measured by costs|||
|Gains from long-term equity investment|-358,979.50|1,054,094.88|

China Fangda Group Co., Ltd. 2015 Annual Report
||||
|-|-|-|
|measured by equity|||
|Investment gain obtained from disposal of|||
||10,600.00||
|long-term equity investment|||
|Others|55,961.64|111,670.20|
|Total|-292,417.86|29,805,392.25|

 XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable□ Inapplicable
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Gain/loss of non-current assets|-522,948.72||
|Subsidies accounted into the current income|||
|account (except the government subsidy|||
|closely related to the enterprise’s business|2,246,386.84||
|and based on unified national standard|||
|quota)|||
|Gain from entrusted investment or assets|||
||250,897.54||
|management|||
|Gain/loss from change of fair value of|||
|transactional financial asset and liabilities,|||
|and investment gains from disposal of|||
|transactional financial assets and liabilities|4,341,316.92||
|and sellable financial assets, other than valid|||
|period value instruments related to the|||
|Company’s common businesses|||
|Gain/loss from change of fair value of|||
|investment property measured at fair value|85,793,780.49||
|in follow-up measurement|||
|Other non-business income and expenditures|||
||7,624,429.39||
|other than the above|||
|Less: Influenced amount of income tax|20,963,417.56||
|Influenced amount of minority|||
||568,368.77||
|shareholders’ equity|||
|Total|78,202,076.13|--|

Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of
Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
China Fangda Group Co., Ltd. 2015 Annual Report□ Applicable√ Inapplicable
2. Net income on asset ratio and earning per share
|||||
|-|-|-|-|
|||Earning per share||
|Profit of the report period|Weighted average net income/asset ratio|Basic earnings per share|Diluted Earnings per|
|||(yuan/share)|share (yuan/share)|
|Net profit attributable to common||0.14|0.14|
||8.42%|||
|shareholders of the Company||||
|Net profit attributable to the||||
|common owners of the PLC after||||
||2.28%|0.04|0.04|
|deducting of non-recurring||||
|gains/losses||||

3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and assets in financial statements disclosed according to the international and Chinese account standards
√ Applicable□ Inapplicable
In RMB
||||||
|-|-|-|-|-|
||Net profit||Net assets||
||Amount occurred in the|Occurred in previous|||
||||Closing balance|Opening balance|
||current period|period|||
|On Chinese accounting|107,272,369.77|96,998,429.76|1,319,496,334.84|1,234,930,863.46|
|standards|||||
|Items and amounts adjusted according International Accounting Standards:|||||
|On international|||||
||107,272,369.77|96,998,429.76|1,324,259,733.08|1,239,694,261.70|
|accounting standards|||||

(2) Differences in net profits and assets in financial statements disclosed according to the international and Chinese account standards
□ Applicable√ Inapplicable
(3) Differences in financial data using domestic and foreign accounting standards, the overseas institution name should be specified if the difference in data audited by an overseas auditor is adjusted
Net assets attributable to the listedcompany’s shareholders calculated according to the IAS is RMB4,763,398.24
higher than that calculated according to the domestic accounting standards, mainly attributable to the
capitalization of borrow expenses before the domestic Enterprise Accounting Standard was implemented on
January 1, 2007.
China Fangda Group Co., Ltd. 2015 Annual Report
China Fangda Group Co., Ltd. 2015 Annual Report Chapter 11 Documents for Reference
1. The Annual Report 2015 and the Summary with signature of the legal representative (Chinese and English); 2. Accounting Statements with signatures and seals of the legal representative and financial principal and chief of accounting department;
3. Original copy of theAuditors’ Report under the seal of the CPA and signed by and under the seal of certified accountants.
4. Originals of all documents and manuscripts of Public Notices of the Company disclosed in public in the newspapers as designated by China Securities Regulatory Commission.
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
April 26, 2016