China Fangda Group Co., Ltd. 2014 Q3 Report Text Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2014-50
China Fangda Group Co., Ltd. 2014 Q3 Report Text
China Fangda Group Co., Ltd. 2014 Q3 Report Text I Important Statement
The members of the Board and the Company guarantee that the quarterly report is free from any false information, misleading statement or material omission and are jointly and severally liable for theinformation’s truthfulness, accuracy and integrity.
All the Directors have attended the meeting of the board meeting at which this report was examined.
Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief Financial Officer, and Mr. Chen Yonggang, the manager of accounting department declare: the Financial Report carried in this report is authentic and completed.
China Fangda Group Co., Ltd. 2014 Q3 Report Text II Financial Highlight and Changes in Shareholders
1. Financial Highlight
The Company retroactively adjusts or restates financial statistics of the previous years because of changes in account policies and correction of accounting errors.
□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||End of the report period||End of last year||Year-on-year change||
|Total asset (RMB)|3,504,823,683.92||2,599,557,542.57||34.82%||
|Net profit attributable to the|1,197,232,829.31||1,160,639,730.85||||
|shareholders of the listed company|||||3.15%||
|(RMB)|||||||
|||||Between beginning of the|||
|||Year-on-year||||Change from the same|
||This report period|||year to the end of the|||
|||change (%)||||period last year|
|||||report period|||
|Turnover (yuan)|500,074,083.72|13.23%||1,322,866,822.74||12.25%|
|Net profit attributable to|18,530,437.37|||59,300,395.61|||
|shareholders of the listed company||6.79%||||4.56%|
|(yuan)|||||||
|Net profit attributable to the|||||||
|shareholders of the listed company|||||||
||14,035,814.91|-15.40%||53,705,363.29||-0.88%|
|and after deducting of|||||||
|non-recurring gain/loss (RMB)|||||||
|Net cash flow generated by||||-354,082,741.68|||
||--|--||||-1,918.86%|
|business operation (RMB)|||||||
|Basic earnings per share|0.03|||0.08|||
|||50.00%||||14.29%|
|(yuan/share)|||||||
|Diluted Earnings per share|0.03|||0.08|||
|||50.00%||||14.29%|
|(yuan/share)|||||||
|Weighted average net|||||||
||1.56%|0.05%||5.05%||-0.03%|
|income/asset ratio|||||||

Accidental gain/loss item and amount
√ Applicable□ Inapplicable
In RMB
||||
|-|-|-|
||Amount from beginning of||
|Items|the year to the end of the|Notes|
||report period||

China Fangda Group Co., Ltd. 2014 Q3 Report Text
||||
|-|-|-|
|Non-current asset disposal gain/loss (including the write-off part|||
||-1,339,032.85||
|for which assets impairment provision is made)|||
|Subsidies accounted into the current income account (except the|||
|government subsidy closely related to the enterprise’s business|1,516,299.51||
|and based on unified national standard quota)|||
|||Earns from financial products|
|Gain from entrusted investment or assets management|630,009.86||
|||purchased|
|Gain/loss from change of fair value of transactional financial|||
|asset and liabilities, and investment gains from disposal of|||
|transactional financial assets and liabilities and sellable financial|2,279,889.00||
|assets, other than valid period value instruments related to the|||
|Company’s common businesses|||
|Other non-business income and expenditures other than the above|1,918,197.11||
|Other gain/loss items satisfying the definition of non-recurring||Gains from reverse repurchase of|
||1,381,539.13||
|gain/loss account||treasury bonds|
|Less: Influenced amount of income tax|787,738.59||
|Influenced amount of minority shareholders’ equity|||
||4,130.85||
|(after-tax)|||
|Total|5,595,032.32|--|

Explanation statement should be made for accidental gain/loss items defined and accidental
gain/loss items defined as regular gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.
√ Applicable□ Inapplicable
China Fangda Group Co., Ltd. 2014 Q3 Report Text
||||
|-|-|-|
|Items|Amount|Reason|
|Gains from reverse repurchase|||
||1,381,539.13|Gains from reverse repurchase of treasury bonds|
|of treasury bonds|||
|||It is related to the Company’s business. The amount is refunded to the|
|Tax refunded related to|||
||1,037,017.17|Company according to the tax rate provided by the taxation|
|software products|||
|||administration.|

2. Total number of shareholders and shareholding of top 10 shareholders by the end of the report period
(1) Total number of common shareholders and shareholding of top 10 common shareholders by the end of the report period
In share
||||||||
|-|-|-|-|-|-|-|
|Number of shareholders of common|||||||
|||46,740|||||
|shares at the end of the report period|||||||
|Top 10 Shareholders of Common Shares|||||||
||Properties of|||Conditional|Pledging or freezing||
|Shareholder||Shareholding|Number of shares||||
||shareholder|||shares|Share status|Amount|
|Shenzhen BanglinTechnologiesDevelopment Co.,Ltd.|Domesticnon-state legalperson|9.09%|68,774,273|0|||
||||||Pledged|32,510,000|
|ShengjiuInvestment Ltd.|Foreign legalperson|4.75%|35,929,581|0|||
|Huang Jupei|Domestic naturalperson|4.20%|31,801,000|0|||
|Zhou Shijian|Domestic naturalperson|2.79%|21,123,481|0|||
|Shenzhen ShiliheInvestment Co.,Ltd.|Domesticnon-state legalperson|2.36%|17,860,992|0|||
|Zhao Bing|Domestic naturalperson|2.34%|17,699,000|0|||
|Wang Shaolin|Domestic naturalperson|1.82%|13,792,932|0|||
|Bank ofCommunication –Huaan Chuangxin|Others|1.79%|13,555,026|0|||

China Fangda Group Co., Ltd. 2014 Q3 Report Text
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|-|-|-|-|-|-|-|
|SecuritiesInvestment Fund|||||||
|Jiang Jing|Domestic naturalperson|1.41%|10,635,440|0|||
|Harvest Fund –CCB - Ping AnLife InsuranceCompany of China|Others|0.66%|5,029,358|0|||
|Top 10 shareholders of unconditional common shares|||||||
||||||Category of shares||
|Shareholder||Amount of unconditional common shares|||Category of||
|||||||Amount|
||||||shares||
|Shenzhen Banglin TechnologiesDevelopment Co., Ltd.||68,774,273|||RMB common||
|||||||68,774,273|
||||||shares||
|Shengjiu Investment Ltd.||35,929,581|||Foreign shares||
||||||listed in domestic|35,929,581|
||||||exchanges||
|Huang Jupei||31,801,000|||RMB common||
|||||||31,801,000|
||||||shares||
|Zhou Shijian||21,123,481|||RMB common||
|||||||21,123,481|
||||||shares||
|Shenzhen Shilihe Investment Co.,Ltd.||17,860,992|||RMB common||
|||||||17,860,992|
||||||shares||
|Zhao Bing||17,699,000|||RMB common||
|||||||17,699,000|
||||||shares||
|Wang Shaolin||13,792,932|||RMB common||
|||||||13,792,932|
||||||shares||
|Bank of Communication – HuaanChuangxin Securities InvestmentFund||13,555,026|||||
||||||RMB common||
|||||||13,555,026|
||||||shares||
|Jiang Jing||10,635,440|||RMB common||
|||||||10,635,440|
||||||shares||
|Harvest Fund – CCB - Ping An LifeInsurance Company of China||5,029,358|||RMB common||
|||||||5,029,358|
||||||shares||
|||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.|||||

China Fangda Group Co., Ltd. 2014 Q3 Report Text
|||
|-|-|
||Huang Jupei holds 31,800,000 stocks of the Company through the GF securities customer|
|Participation of top 10 unconditional|credit transaction guarantee securities account; Zhou Shijian holds 21,123,481 stocks of the|
|common share shareholders in|Company through the GF securities customer credit transaction guarantee securities account;|
|securities margin trading (if any)|Zhao Bing holds 17,699,000 stocks of the Company through the Everbright Securities|
||customer credit transaction guarantee securities account.|

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 is performed by theCompany’s shareholders in the report period.
(2) Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√ Inapplicable
China Fangda Group Co., Ltd. 2014 Q3 Report Text III Significant Events
1. Major changes in accounting items and financial data in the report period and reasons√ Applicable□ Inapplicable
||||||||
|-|-|-|-|-|-|-|
|Items|Closing amount||Opening amount||Change|Cause of change|
|Prepayment|||||89.97%|Caused by increase in prepaid materialfees for construction in progress|
|||53,882,784.90||28,364,016.21|||
|Inventory|||||101.79%|Caused in increase in investment of theFangda Town renovation project whichhas entered the development stage|
|||864,763,972.63||428,537,851.82|||
|Goodwill||25,322,869.47||-|-|Caused by acquiring Guangdong SOZN|
|Other non-currentassets|||||110.63%|House prepayment to Tianjin WandaCenter Investment Company|
|||33,656,151.10||15,978,789.90|||
|Short-term loans||1,030,000,000.00||369,000,000.00|179.13%|Additional financing demand|
|Account payable|||||44.60%|Fangda Town land transfer paymentunpaid|
|||707,401,426.32||489,216,140.32|||
|Prepayment received|||||-41.07%|Transfer of received engineeringpayment into income|
|||99,222,201.22||168,386,251.94|||
|Employees’ wagepayable|||||-38.77%|2013 bonus paid|
|||18,479,501.68||30,182,851.80|||
|Other payables||79,295,904.90||41,687,580.72|90.21%|Increase in bidding deposit received|
|Items|Amount of theCurrent Term||Same period lastyear||Change|Cause of change|
|Asset impairment loss|||||-30.92%|Caused by increase in previousreceivable collected|
|||10,104,141.91||14,625,807.80|||
|Non-operatingrevenue|||||35.32%|Increase in governmental subsidy|
|||5,679,197.28||4,196,811.56|||
|Non-businessexpenses|||||156.72%|Caused by increase in disposal oflong-term asset losses|
|||2,546,716.34||992,003.35|||
|Income tax||7,021,212.14||12,371,750.46|-43.25%|Decrease in deferred income tax|
|Other cash receivedfrom businessoperation|||||83.02%|Increase in bidding deposit received|
|||70,054,311.35||38,275,896.85|||
|Cash paid forpurchasing productsand services||1,297,947,089.10||941,055,438.35|37.92%|Caused in increase in developmentexpenditure of the Fangda Townrenovation project which has enteredthe development stage|
|Cash paid to and forthe staff|||||31.33%|Increase in staff remuneration|
|||160,019,118.12||121,844,649.34|||
|Cash received from||100,000,000.00||20,000,000.00|400.00%|Increase in maturity of financial|

China Fangda Group Co., Ltd. 2014 Q3 Report Text
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|-|-|-|-|-|
|Cash flows generatedby operatingactivities, net|||-1942.12%|Caused by increase in thedevelopment expenditure of FangdaTown renovation project and delayin collection of accounts receivable|
||-358,608,957.87|19,467,237.44|||
|Cash paid forconstruction of fixedassets, intangibleassets and otherlong-term assets|||-31.60%|Increase in payment of long-term assetinvestment|
||28,385,573.09|41,497,821.99|||
|Cash paid asinvestment|||454.00%|Purchase of financial products andinvestment in Sino Oil and GasHoldings Ltd|
||116,340,675.00|21,000,000.00|||
|Cash received fromborrowed loans|||844.00%|Additional financing demand|
||944,000,000.00|100,000,000.00|||
|Cash paid to repaydebtsCash paid asdividend, profit, orinterests|||157.27%70.03%|Repayment of short-term borrowingIncrease in paid interest fee due toincrease in short-term borrowing|
||283,000,000.00|110,000,000.00|||
||52,661,058.83|30,971,678.77|||

The Ministry of Financial has issued or amended the Enterprise Accounting Standard No.2– Long-term Stock Investment, Enterprise Accounting Standard No.9– Staff Remuneration, Enterprise Accounting Standard No.30– Presentation of Financial Statements, Enterprise Accounting Standard No.33– Consolidate Financial Statements, Enterprise Accounting Standard No.39– Measurement of Fair Value, Enterprise Accounting Standard No.40– Joint Venue Arrangement, Enterprise Accounting Standard No.41– Disclosure of Interest in Other Entities, Enterprise Accounting Standard No.37– Presentation of Financial Tools, of which seven standards have been implemented since July 1, 2014. Changes to the above-mentioned financial standards have no major impact on theCompany’s consolidated financial statements.
(1) Long-term share equity investment
1. According to the amended Enterprise Accounting Standard No.2– Long-term Stock Investment, the Company has no following circumstances. Consolidated financial statements are not affected and no retroactive adjustment is needed:
Impose substantial influence on invested entities or implement joint control due to increase in investment; (2) Lose joint control or substantial influence on invested entities due to disposal of part of investment 2. According to the amended long-term stock investment standard, the Company has calculated the investment in Shenzhen Ganshang Joint Investment Co., Ltd. using the interest method. The change in theowner’s interest in the invested entity is a change in the net gain/loss rather than other owner's interest change other than comprehensive income and profit allocation. The change has no impact on the consolidate financial statements and no retroactive adjustment is needed.
(2) Retirement pension program
The Company has re-evaluated the staff remuneration according to the amended Enterprise Accounting Standard No.9– Staff Remuneration and no problem has been found in the benefit program and other long-term staff remuneration. Therefore, the change has no impact on the consolidated financial statements and no retroactive adjustment is needed.
(3) Consolidation scope
The Company has re-evaluated the scope of consolidated financial statements according to the Enterprise
Accounting Standard No.33– Consolidated Financial Statements and no change has been found to the
consolidation scope according to the standard. Therefore, the change has no impact on the consolidated financial
China Fangda Group Co., Ltd. 2014 Q3 Report Text statements and no retroactive adjustment is needed.
(4) Joint venture arrangement
According to Enterprise Accounting Standard No.40– Joint Venue Arrangement, the Company has no joint venture arrangement of any form. Therefore, the change has no impact on the consolidated financial statements and no retroactive adjustment is needed.
(5) Impacts of other standard changes
In addition to the above-mentioned items, there is no impact on theCompany’s financial statements caused by new or amended enterprise accounting standards.
2. Progress of key issues and its impacts and solutions
√ Applicable□ Inapplicable
1. Progress of Fangda Town renovation project
The Fangda Town renovation project undertaken by Shenzhen Fangda Property Development Co., Ltd., a wholly-owned subsidiary of the Company, has been proceeded as scheduled since commencement on May 18 this year. The project will complete by the end of this year.
2. Business progress of Shenzhen Fangda New Energy Co., Ltd.:
||||||
|-|-|-|-|-|
|No.|Progress|Date ofannouncement|Announcement|Media ofdisclosure|
|1|Fangda New Energy and Luo Huichi(natural person) entered into anagreement to acquire a LED companycontrolled by Luo|22.07.14|Announcement on AcquiringZhongshan SOZN Lighting Co.,Ltd. and LED Lighting Businessof Its Affiliates|China SecuritiesJournal,ShanghaiSecurities Daily,Securities Times,HKCD andwww.cninfo.com.cn|
|2|The Company and Shenzhen BOCsigned a strategic cooperationframework agreement.|23.07.14|Announcement of the StrategicCooperation Agreement enteredinto between the Company andShenzhen BOC||
|3|the Company entered into the newenergy PV project cooperationframework agreement with InformationIndustry Electronics 11th DesignInstitute Sci & Tech Engineering Co.,Ltd.|August 14, 2014|Announcement of Signing theNew Energy PV ProjectCooperation FrameworkAgreement||

3. Commitments of shareholders with over5% of shares made in the report term or carried over from previous terms
□ Applicable√ Inapplicable
The Company and shareholders with more than5% stakes in the Company made no guarantee in the report period or before report period but remaining effective in the report period.
4 Forecast of operating performance in 2014
Warning and reasons of possible net loss or substantial change from the last period between the beginning of the
China Fangda Group Co., Ltd. 2014 Q3 Report Text year and the end of the next report period
□ Applicable√ Inapplicable
5. Securities investment
√ Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Number||||||||
|||||||Number||||||
|||||of shares||||||||
|||||||of shares||Closing||||
||||Initial|held at|Opening||Closing|||||
|Securit||Abbreviat||||held at||book|Gain/loss|Accounti||
||Code||investmen|beginning|sharehold||sharehold||||Source|
|ies||ion||||end of the||value|(RMB)|ng item||
||||t cost|of the|ing||ing|||||
|||||||period||(RMB)||||
|||||period||||||||
|||||||(share)||||||
|||||(share)||||||||
|||Sino Oil||||||||Transacti||
|||and Gas|16,263,67|||100,000,0||18,543,56|2,279,889|onal||
|Stock|(HK) 00702|||0|0.00%||0.66%||||Purchase|
|||Holdings|5.00|||00||4.00|.00|financial||
|||Ltd||||||||assets||
||||16,263,67|||100,000,0||18,543,56|2,279,889|||
|Total||||0|--||--|||--|--|
||||5.00|||00||4.00|.00|||
|Disclosure date of approval by||||||||||||
|the Board of Directors of|||None|||||||||
|securities investment||||||||||||
|Disclosure date of securities||||||||||||
|investment approval by the|||None|||||||||
|Shareholders’ Meeting (if any)||||||||||||

Notes to shareholding in other listed companies
□ Applicable√ Inapplicable
The Company holds no stock of other list companies in the report period.
6. Derivative investment
√ Applicable□ Inapplicable
In RMB10,000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Proportio||
|||||||||||n of||
|Derivativ||||||||||closing|Actual|
|||||||||Impairme||||
|e||Related|||||Initial||Closing|investmen|gain/loss|
||Relations|||Initial||||nt||||
|investme||transactio|Type||Start date|End date|investmen||investmen|t amount|in the|
||hip|||amount||||provision||||
|nt||n|||||t amount||t amount|in the|report|
|||||||||(if any)||||
|operator||||||||||closing|period|
|||||||||||net assets||
|||||||||||in the||

China Fangda Group Co., Ltd. 2014 Q3 Report Text
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|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||report||
|||||||||||period||
|Shanghai||||||||||||
||||Shanghai|||||||||
|Futures|None|No||1,459.21|05.05.14|23.07.14|0|0|0|0.00%|21.94|
||||aluminum|||||||||
|Exchange||||||||||||
|Total||||1,459.21|--|--|0|0|0|0.00%|21.94|
|Capital source||||Self-owned fund||||||||
|Lawsuit (if any)||||Inapplicable||||||||
|Disclosure date of derivative investment||||||||||||
|||||None||||||||
|approval by the Board of Directors (if any)||||||||||||
|Disclosure date of derivative investment||||||||||||
|approval by the Shareholders’ Meeting (if||||None||||||||
|any)||||||||||||
|||||To prevent the risk of fluctuation of raw material prices, the Company adopted the||||||||
|Risk analysis and control measures for the||||||||||||
|||||aluminum futures exchanged at the domestic futures exchange to provide hedging for||||||||
|derivative holding in the report period||||||||||||
|||||aluminum as a raw material for the Company. The Company has set up and||||||||
|(including without limitation market,||||||||||||
|||||implemented the Provincial Regulations on China Fangda Group Domestic Futures||||||||
|liquidity, credit, operation and legal risks)||||||||||||
|||||Hedging to prevent risks.||||||||
|Changes in the market price or fair value||||||||||||
|of the derivative in the report period, the||||||||||||
|||||The fair value of the derivative should be calculated with the open quotation of the||||||||
|analysis of the derivative’s fair value||||||||||||
|||||futures market and should be reviewed regularly to ensure effective hedging.||||||||
|should disclose the method used and||||||||||||
|related assumptions and parameters.||||||||||||
|Material changes in the accounting policies||||||||||||
|and rules related to the derivative in the||||No||||||||
|report period compared to last period||||||||||||
|Opinions of independent directors on the||||||||||||
|Company’s derivative investment and risk||||None||||||||
|controlling||||||||||||

7. Reception of investigations, communications, or interviews in the reporting period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||||||Main content involved and|
|Time/date|Place|Way|Visitor|Visitor||
||||||materials provided|
|||Onsite||Hong Yuan|Business and future|
|September 3, 2014|Shenzhen||Institution|||
|||investigation||Securities|development|