China Fangda Group Co., Ltd.
2017 First Quarter Report
April 2017
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.
II. General Information
1. Financial Highlight
The Company retroactively adjusts or restates financial statistics of the previous years because of changes in account policies and correction of accounting errors.
□ Yes√ No
|||||
|-|-|-|-|
||This report period|Same period last year|Year-on-year change (%)|
|Turnover (yuan)|573,546,634.49|469,103,396.78|22.26%|
|Net profit attributable to shareholders of|67,759,233.14|22,188,780.56||
||||205.38%|
|the listed company (yuan)||||
|Net profit attributable to the shareholders||||
|of the listed company and after deducting|64,053,467.14|23,019,578.47|178.26%|
|of non-recurring gain/loss (RMB)||||
|Net cash flow generated by business|-4,846,476.55|-59,715,816.88||
|operation (RMB)||||
|Basic earnings per share (yuan/share)|0.09|0.03|200.00%|
|Diluted Earnings per share (yuan/share)|0.09|0.03|200.00%|
|Weighted average net income/asset ratio|2.83%|1.67%|1.16%|
||End of the report period|End of last year|Year-on-year change|
|Total asset (RMB)|6,539,538,168.48|6,787,051,278.08|-3.65%|
|Net profit attributable to the shareholders|2,432,733,187.34|2,364,262,560.28||
||||2.90%|
|of the listed company (RMB)||||

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||
|Non-current asset disposal gain/loss (including the write-off part|||
||-71,713.80||
|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|995,063.30||
|and based on unified national standard quota)|||
|Gain from entrusted investment or assets management|1,538,250.89||
|Gain/loss from change of fair value of investment property|||
||369,591.00||
|measured at fair value in follow-up measurement|||

||||
|-|-|-|
|Other non-business income and expenditures other than the above|1,455,060.20||
|Less: Influenced amount of income tax|542,363.59||
|Influenced amount of minority shareholders’ equity|||
||38,122.00||
|(after-tax)|||
|Total|3,705,766.00|--|

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
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.
2. Total number of shareholders and shareholding of top 10 shareholders by the end of the report period
1. Ordinary shareholders, preference shareholders with resumed voting rights and top 10 shareholders In share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Number of shareholders of|||||
|Number of shareholders of common||||preferred stocks of which|||||
|||41,234|||||0||
|shares at the end of the report period||||voting rights recovered in the|||||
|||||report period (if any)|||||
|Top 10 Shareholders|||||||||
||Nature of|Shareholding|||Conditional|Pledging or freezing|||
|Shareholder|||Number of shares||||||
||shareholder|percentage|||shares|Share status||Amount|
|ShenzhenBanglinTechnologiesDevelopmentCo., Ltd.|Domesticnon-state legalperson|8.72%|68,774,273||0||||
|||||||Pledged||17,910,000|
|ShengjiuInvestment Ltd.|Foreign legalperson|7.27%|57,390,410||0||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson|4.21%|33,221,072||0||||
|Huang Jupei|Domestic naturalperson|3.38%|26,686,432||0||||
|Gong Qing|Domestic|2.26%|17,860,992||0||||

||||||||
|-|-|-|-|-|-|-|
|Cheng Shi Li HeInvestmentManagementPartnershipEnterprise(limited partner)|non-state legalperson||||||
|Zhou Shijian|Domestic naturalperson|2.05%|16,213,500|0|||
|ShenwanHongyuanSecurities (HongKong) Co., Ltd.|Foreign legalperson|1.76%|13,850,305|0|||
|China ResourceSZITIC Trust –China ResourceTrust No.13Collective TrustProgram|Others|1.23%|9,726,136|0|||
|YunnanInternationalTrust CO., Ltd. –Juxin No.5Collective FundTrust Program|Others|1.16%|9,164,857|0|||
|First CapitalSecurities –Guosen Securities– Mutual WinDayanQuantizationPrivate PlacementCollective AssetsManagementProgram|Others|0.82%|6,438,356|6,438,356|||
|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.||57,390,410|||Foreign shares|57,390,410|

|||||
|-|-|-|-|
|||listed in domestic||
|||exchanges||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|33,221,072|Foreign shares||
|||listed in domestic|33,221,072|
|||exchanges||
|Huang Jupei|26,686,432|RMB common||
||||26,686,432|
|||shares||
|Gong Qing Cheng Shi Li HeInvestment Management PartnershipEnterprise (limited partner)|17,860,992|||
|||RMB common||
||||17,860,992|
|||shares||
|Zhou Shijian|16,213,500|RMB common||
||||16,213,500|
|||shares||
|Shenwan Hongyuan Securities(Hong Kong) Co., Ltd.|13,850,305|Foreign shares||
|||listed in domestic|13,850,305|
|||exchanges||
|China Resource SZITIC Trust –China Resource Trust No.13Collective Trust Program|9,726,136|||
|||RMB common||
||||9,726,136|
|||shares||
|Yunnan International Trust CO., Ltd.– Juxin No.5 Collective Fund TrustProgram|9,164,857|||
|||RMB common||
||||9,164,857|
|||shares||
|KGI ASIA LIMITED|6,184,859|Foreign shares||
|||listed in domestic|6,184,859|
|||exchanges||
||Among the top 10 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 Gong Qing Cheng Shi Li He Investment Management Partnership|||
|relationship or "action in concert"|Enterprise are related parties. The Company is not notified of other action-in-concert or|||
||related parties among the other holders of current shares.|||
||Huang Jupei holds 26,685,432 shares of the Company through the client credit trade|||
|Top-10 common share shareholders||||
||securities account of GF Securities; Zhou Shijian holds 16,213,500 shares of the Company|||
|participating in margin trade (if any)||||
||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. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period
□ Applicable√ Inapplicable
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|||||53.58%|Mainly due to increase in prepayment formaterials|
|||48,418,159.11||31,526,326.25|||
|Other current assets|||||332.33%|Mainly due to purchase financialproducts|
|||268,935,506.21||62,206,574.33|||
|Employees’ wage payable||23,292,119.73||41,972,342.66|-44.51%|Annual bonus paid|
|Items|Amount of theCurrent Term||Last period||Change|Cause of change|
|Turnover|||||22.26%|Mainly due to increase in sales from thereal estate business|
|||573,546,634.49||469,103,396.78|||
|Taxes and surcharges|||||522.80%|Mainly due to provision of real estatesales tax|
|||36,724,201.67||5,896,598.98|||
|Income tax expenses|||||390.93%|Mainly due to provision of income taxfor the real estate business|
|||20,846,618.03||4,246,322.18|||
|Net profit attributable to theowners of parent company|||||205.38%|Mainly due to increase in the businessincome and gross profit margin|
|||67,759,233.14||22,188,780.56|||
|Cash flow generated by businessoperations, net||||||Mainly due to increase in collection ofsales receivables|
|||-4,846,476.55||-59,715,816.88|||
|Cash flow generated byinvestment activities, net||||||Mainly due to purchase of financialproducts|
|||-203,914,367.67||-64,130,091.37|||

2. Progress of key issues and its impacts and solutions
√ Applicable□ Inapplicable
On March 17, 2017 and April 11, 2017, the Company held the 26th meeting of the 7th Board of Directors and 2016 General
Shareholders’ Meeting to review the Proposal of Terminating Part of the Raised Fund and Using the Residual Raised Fund to Permanently Replenish the Working Capital and Proposal of Using the Saved Fund of Finished Projects to Permanently Replenish the Working Capital.
||||
|-|-|-|
|Key issue|Date of disclosure|Information source|
|Resolutions of the 26th Meeting of the 7thBoard of Directors||China Securities Journal, Shanghai|
||21.03.17|Securities Daily, Securities Times, HKCD|
|||(English) and www.cninfo.com.cn|
|Notice on Terminating Part of the Raised|21.03.17|China Securities Journal, Shanghai|

||||
|-|-|-|
|Fund and Using the Residual Raised Fundto Permanently Replenish the WorkingCapital||Securities Daily, Securities Times, HKCD|
|||(English) and www.cninfo.com.cn|
|Announcement on Resolutions of theGeneral Shareholders’ Meeting 2016||China Securities Journal, Shanghai|
||12.04.17|Securities Daily, Securities Times, HKCD|
|||(English) and www.cninfo.com.cn|

 3. Commitments that have not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company
√ Applicable□ Inapplicable
||||||||
|-|-|-|-|-|-|-|
|Promised issue|Promiser|Type|Commitment|Date|Term|Fulfillment|
|Share reform|None||||||
|Commitments made in acquisition|||||||
||None||||||
|reports or equity change reports|||||||
|Commitments made during assets|||||||
||None||||||
|reorganization|||||||
||Caitong Fund;||||||
||Changzhou||||||
||Investment||||||
||Group, First||||||
||Capital||||||
||Securities,||||||
||Fullgoal||Shares offered||||
||Assets||in the||||
||Management||non-public||||
||Co., Ltd.,|Share sales|share issuance||||
|Commitments made during initial|||||||
||Sinomach|restriction|in 2015 will|01.08.16|12 months|In fulfillment|
|public offering or re-financing|||||||
||Finance Co.,|commitment|be locked for||||
||Ltd.,||12 months||||
||Minsheng||from the date||||
||Tonghui Asset||of listing||||
||Management||||||
||Co., Ltd. and||||||
||Ping An-UOB||||||
||Fund||||||
||Management||||||
||Co., Ltd.||||||
|Share option incentive|None||||||
|Other commitments made to|||||||
||None||||||
|small-to-middle shareholders|||||||

|||
|-|-|
|Timely fulfillment|Yes|
|If a commitment is not fulfilled||
|timely, the reason should be explained||
||Inapplicable|
|and the further plan should be||
|introduced||

4. Forecast of operating performance between January and June in 2017
Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end of the next report period
□ Applicable√ Inapplicable
5. Securities investment
□ Applicable√ Inapplicable
The Company made no investment in securities in the report period
6. Derivative investment
√ Applicable□ Inapplicable
In RMB10,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Proporti||
|||||||||||||on of||
|||||||||||||closing||
|||||||||||||investm||
||||||||||||||Actual|
|Derivati||||||||||Impairm||ent||
||||||||Initial||Amount||Closing||gain/lo|
|ve||Related||||||Amount||ent||amount||
||Relation|||Initial|Start|End|investm||sold in||investm||ss in|
|investm||transacti|Type|||||in this||provisio||in the||
||ship|||amount|date|date|ent||this||ent||the|
|ent||on||||||period||n (if||closing||
||||||||amount||period||amount||report|
|operator||||||||||any)||net||
||||||||||||||period|
|||||||||||||assets in||
|||||||||||||the||
|||||||||||||report||
|||||||||||||period||
|Shangha||||||||||||||
|i|||Shanghai|||||||||||
||||||12.09.1|15.09.1|6,220.7|1,815.3|3,080.4||4,955.6|||
|Futures|None|No|aluminu|8,036.1||||||||2.04%|397.88|
||||||6|7|8|2|6||4|||
|Exchan|||m|||||||||||
|ge||||||||||||||
||||||||6,220.7|1,815.3|3,080.4||4,955.6|||
|Total||||8,036.1|--|--||||||2.04%|397.88|
||||||||8|2|6||4|||
|Capital source||||Self-owned fund||||||||||

|||
|-|-|
|Lawsuit (if any)|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||
||aluminum futures exchanged at the domestic futures exchange to provide hedging for|
|report period (including without||
||aluminum as a raw material for the Company. The Company has set up and implemented the|
|limitation market, liquidity, credit,||
||Provincial Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.|
|operation and legal risks)||
|Changes in the market price or fair||
|value of the derivative in the report||
|period, the analysis of the derivative’s||
||Fair value of derivatives are measured at open prices in the futures market|
|fair value should disclose the method||
|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||

7. Reception of investigations, communications, or interviews in the reporting period
√ Applicable□ Inapplicable
|||||
|-|-|-|-|
|Time/date|Way|Visitor|Disclosure of information|
||||Investor Relationship Record Form on|
|10.02.17|Onsite investigation|Institution||
||||www.cninfo.com.cn|

8. Incompliant external guarantee
□ Applicable√ Inapplicable
The Company made no incompliant external guarantee in the report period.
9. 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.
IV Financial Statements
1. Financial statements
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
31.03.17
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|957,103,974.18|1,095,229,837.90|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair|||
|value with variations accounted into|0.00|0.00|
|current income account|||
|Derivative financial assets|3,126,225.00|2,232,200.00|
|Notes receivable|9,490,000.00|18,898,106.11|
|Account receivable|2,032,718,651.02|2,342,929,628.14|
|Prepayment|48,418,159.11|31,526,326.25|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance|||
|contracts receivable|||
|Interest receivable||302,950.68|
|Dividend receivable||0.00|
|Other receivables|55,264,270.03|57,378,994.72|
|Repurchasing of financial assets|||
|Inventory|1,991,257,901.70|1,990,621,059.27|
|Assets held for sales|||
|Non-current assets due in 1 year|||
|Other current assets|268,935,506.21|62,206,574.33|
|Total current assets|5,366,314,687.25|5,601,325,677.40|
|Non-current assets:|||

||||
|-|-|-|
|Loan and advancement provided|||
|Sellable financial assets|28,562,575.67|28,562,575.67|
|Investment held until mature|||
|Long-term receivable|||
|Long-term share equity investment|11,529,898.01|12,105,030.68|
|Investment real estate|333,917,348.80|333,795,631.30|
|Fixed assets|500,830,341.34|506,819,266.38|
|Construction in process|2,537,725.36|2,537,725.36|
|Engineering materials||0.00|
|Disposal of fixed assets|596.00|0.00|
|Productive biological assets|0.00|0.00|
|Gas & petrol|0.00|0.00|
|Intangible assets|59,436,565.39|60,228,652.69|
|R&D expense|0.00|0.00|
|Goodwill|0.00|0.00|
|Long-term amortizable expenses|3,326,104.93|3,695,766.33|
|Deferred income tax assets|184,499,863.02|176,796,698.56|
|Other non-current assets|48,582,462.71|61,184,253.71|
|Total of non-current assets|1,173,223,481.23|1,185,725,600.68|
|Total of assets|6,539,538,168.48|6,787,051,278.08|
|Current liabilities|||
|Short-term loans|601,000,000.00|591,000,000.00|
|Loans from Central Bank|||
|Deposit received and held for|||
|others|||
|Call loan received|||
|Financial liabilities measured at|||
|fair value with variations accounted into||0.00|
|current income account|||
|Derivative financial liabilities|0.00||
|Notes payable|487,767,385.44|557,301,320.45|
|Account payable|1,026,453,948.73|1,275,255,961.34|
|Prepayment received|213,546,508.79|285,905,444.13|
|Selling of repurchased financial|||
|assets|||

||||
|-|-|-|
|Fees and commissions payable|||
|Employees’ wage payable|23,292,119.73|41,972,342.66|
|Taxes payable|165,169,286.85|192,236,574.40|
|Interest payable|2,739,837.25|2,634,979.47|
|Dividend payable||0.00|
|Other payables|384,337,159.76|366,182,799.41|
|Reinsurance fee payable||0.00|
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liabilities due in 1|||
||0.00||
|year|||
|Other current liabilities|24,983,305.63|35,148,084.44|
|Total current liabilities|2,929,289,552.18|3,347,637,506.30|
|Non-current liabilities:|||
|Long-term loans|1,021,061,708.37|922,169,568.24|
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable|0.00||
|Long-term employees’ wage|||
|payable|||
|Special payables|0.00||
|Anticipated liabilities|2,779,866.18|3,156,625.24|
|Deferred earning|10,947,079.91|11,567,224.78|
|Deferred income tax liabilities|204,918,522.65|200,207,003.35|
|Other non-current liabilities|0.00|0.00|
|Total of non-current liabilities|1,239,707,177.11|1,137,100,421.61|
|Total liabilities|4,168,996,729.29|4,484,737,927.91|
|Owner’s equity:|||
|Share capital|789,094,836.00|789,094,836.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||

||||
|-|-|-|
|Capital reserves|467,376,902.96|467,376,902.96|
|Less: Shares in stock||0.00|
|Other miscellaneous income|2,841,913.24|2,130,454.52|
|Special reserves||0.00|
|Surplus reserves|88,839,790.50|88,839,790.50|
|Common risk provisions|||
|Retained profit|1,084,579,744.64|1,016,820,576.30|
|Total of owner’s equity belong to the|||
||2,432,733,187.34|2,364,262,560.28|
|parent company|||
|Minor shareholders’ equity|-62,191,748.15|-61,949,210.11|
|Total of owners’ equity|2,370,541,439.19|2,302,313,350.17|
|Total of liabilities and owner’s interest|6,539,538,168.48|6,787,051,278.08|

 Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Chen Yonggang
2. Balance Sheet of the Parent Company
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|546,387,492.10|81,148,314.87|
|Financial assets measured at fair|||
|value with variations accounted into||0.00|
|current income account|||
|Derivative financial assets||0.00|
|Notes receivable||0.00|
|Account receivable|0.00|454,140.85|
|Prepayment|276,453.67|110,132.27|
|Interest receivable||0.00|
|Dividend receivable|0.00|430,000,000.00|
|Other receivables|469,542,319.27|459,354,983.42|
|Inventory||0.00|
|Assets held for sales||0.00|
|Non-current assets due in 1 year|||
|Other current assets|345,626.23|334,228.97|
|Total current assets|1,016,551,891.27|971,401,800.38|

||||
|-|-|-|
|Non-current assets:|||
|Sellable financial assets|28,562,575.67|28,562,575.67|
|Investment held until mature||0.00|
|Long-term receivable||0.00|
|Long-term share equity investment|896,869,392.36|897,444,525.03|
|Investment real estate|296,740,660.63|296,740,660.63|
|Fixed assets|54,552,356.14|55,081,689.15|
|Construction in process||0.00|
|Engineering materials||0.00|
|Disposal of fixed assets||0.00|
|Productive biological assets||0.00|
|Gas & petrol||0.00|
|Intangible assets|1,437,074.58|1,531,179.93|
|R&D expense||0.00|
|Goodwill||0.00|
|Long-term amortizable expenses|181,748.39|252,857.40|
|Deferred income tax assets|56,444,479.16|57,076,777.66|
|Other non-current assets|120,000,000.00|120,000,000.00|
|Total of non-current assets|1,454,788,286.93|1,456,690,265.47|
|Total of assets|2,471,340,178.20|2,428,092,065.85|
|Current liabilities|||
|Short-term loans|90,000,000.00|190,000,000.00|
|Financial liabilities measured at|||
|fair value with variations accounted into||0.00|
|current income account|||
|Derivative financial liabilities|||
|Notes payable||33,692,909.97|
|Account payable|606,941.85|606,941.85|
|Prepayment received|693,045.60|965,234.08|
|Employees’ wage payable|1,068,929.41|2,338,896.51|
|Taxes payable|592,304.07|460,424.30|
|Interest payable|117,232.50|288,513.75|
|Dividend payable||0.00|
|Other payables|242,392,896.09|65,436,929.77|
|Liabilities held for sales||0.00|

||||
|-|-|-|
|Non-current liabilities due in 1|||
|||0.00|
|year|||
|Other current liabilities|0.00||
|Total current liabilities|335,471,349.52|293,789,850.23|
|Non-current liabilities:|||
|Long-term loans|||
|Bond payable|||
|Including: preferred stock|||
|Perpetual bond|||
|Long-term payable|||
|Long-term employees’ wage|||
|||0.00|
|payable|||
|Special payables|||
|Anticipated liabilities||0.00|
|Deferred earning||0.00|
|Deferred income tax liabilities|124,159,773.11|124,088,349.06|
|Other non-current liabilities||0.00|
|Total of non-current liabilities|124,159,773.11|124,088,349.06|
|Total liabilities|459,631,122.63|417,878,199.29|
|Owner’s equity:|||
|Share capital|789,094,836.00|789,094,836.00|
|Other equity tools|||
|Including: preferred stock|||
|Perpetual bond|||
|Capital reserves|466,283,546.89|466,283,546.89|
|Less: Shares in stock||0.00|
|Other miscellaneous income|91,831.63|91,831.63|
|Special reserves||0.00|
|Surplus reserves|88,839,790.50|88,839,790.50|
|Retained profit|667,399,050.55|665,903,861.54|
|Total of owners’ equity|2,011,709,055.57|2,010,213,866.56|
|Total of liabilities and owner’s interest|2,471,340,178.20|2,428,092,065.85|

3. Consolidated Income Statement
In RMB
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Total revenue|573,546,634.49|469,103,396.78|
|Incl. Business income|573,546,634.49|469,103,396.78|
|Interest income|||
|Insurance fee earned|||
|Fee and commission|||
|received|||
|2. Total business cost|489,407,031.68|444,905,754.32|
|Incl. Business cost|394,608,165.03|391,319,798.18|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy|||
|reserves provided|||
|Insurance policy dividend|||
|paid|||
|Reinsurance expenses|||
|Taxes and surcharges|36,724,201.67|5,896,598.98|
|Sales expense|10,160,076.95|11,110,937.46|
|Administrative expense|37,770,848.96|36,395,114.82|
|Financial expenses|12,891,638.49|10,022,552.32|
|Asset impairment loss|-2,747,899.42|-9,839,247.44|
|Plus: gains from change of fair value|||
||369,591.00|-1,456,515.68|
|(“-“ for loss)|||
|Investment gains (“-“ for loss)|963,118.22|-116,407.24|
|Incl. Investment gains from|||
||-575,132.67|-174,752.44|
|affiliates and joint ventures|||
|Exchange gains (“-“ for loss)|||
|3. Operational profit (“-“ for loss)|85,472,312.03|22,624,719.54|
|Plus: non-operational income|3,159,052.41|2,018,111.17|
|Incl. Loss from disposal of|||
||16,166.05|22,418.22|
|non-current assets|||
|Less: non-operational expenditure|268,051.31|1,266,037.76|
|Incl. Loss from disposal of|||
||87,879.85|493,011.35|
|non-current assets|||

||||
|-|-|-|
|4. Gross profit (“-“ for loss)|88,363,313.13|23,376,792.95|
|Less: Income tax expenses|20,846,618.03|4,246,322.18|
|5. Net profit (“-“ for net loss)|67,516,695.10|19,130,470.77|
|Net profit attributable to the owners|||
||67,759,233.14|22,188,780.56|
|of parent company|||
|Minor shareholders’ equity|-242,538.04|-3,058,309.79|
|6. After-tax net amount of other misc.|||
||924,176.32|841,840.00|
|incomes|||
|After-tax net amount of other misc.|||
||924,176.32|841,840.00|
|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|||
|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|||
||924,176.32|841,840.00|
|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|||
||774,158.75|841,840.00|
|and loss of arbitrage of cash flow|||
|5. Translation difference of|||
||150,017.57||
|foreign exchange statement|||
|6. Others|||
|After-tax net of other misc. income|||
|attributed to minority shareholders|||
|7. Total of misc. incomes|68,440,871.42|19,972,310.77|

||||
|-|-|-|
|Total of misc. incomes attributable|68,683,409.46||
|||23,030,620.56|
|to the owners of the parent company|||
|Total misc gains attributable to the|-242,538.04||
|||-3,058,309.79|
|minor shareholders|||
|8. Earnings per share:|||
|(1) Basic earnings per share|0.09|0.03|
|(2) Diluted earnings per share|0.09|0.03|

 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
||||
|-|-|-|
|Items|Amount occurred in the current period|Occurred in previous period|
|1. Turnover|6,845,336.82|7,246,856.81|
|Less: Operation cost|406,361.52|350,972.35|
|Taxes and surcharges|312,223.66|768,784.87|
|Sales expense|||
|Administrative expense|5,673,991.65|5,459,504.20|
|Financial expenses|-223,544.29|1,783,122.18|
|Asset impairment loss|-12,944.02|26,016.25|
|Plus: gains from change of fair|||
|value (“-“ for loss)|||
|Investment gains (“-“ for loss)|-542,255.96|-169,327.78|
|Incl. Investment gains from|||
||-575,132.67|-174,752.44|
|affiliates and joint ventures|||
|2. Operational profit (“-“ for loss)|146,992.34|-1,310,870.82|
|Plus: non-operational income|2,061,767.86|1,148,843.27|
|Incl. Loss from disposal of|||
|non-current assets|||
|Less: non-operational expenditure|9,848.64|89,374.82|
|Incl. Loss from disposal of|||
||9,848.64||
|non-current assets|||
|3. Gross profit (“-“ for loss)|2,198,911.56|-251,402.37|
|Less: Income tax expenses|703,722.55|-59,356.13|

||||
|-|-|-|
|4. Net profit (“-“ for net loss)|1,495,189.01|-192,046.24|
|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|||
|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|1,495,189.01|-192,046.24|
|7. Earnings per share:|||
|(1) Basic earnings per share|0.00|0|
|(2) Diluted earnings per share|0.00|0|

 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|||
||854,772,826.23|636,891,799.87|
|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|||
|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|1,292,690.35|80,888.90|
|Other cash received from business|||
||41,062,862.35|26,520,638.27|
|operation|||
|Sub-total of cash inflow from business|||
||897,128,378.93|663,493,327.04|
|operations|||
|Cash paid for purchasing products|||
||644,166,577.65|569,855,226.34|
|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|75,055,798.07|72,576,097.44|
|Taxes paid|125,913,049.34|43,687,459.47|
|Other cash paid for business|||
||56,839,430.42|37,090,360.67|
|activities|||
|Sub-total of cash outflow from|||
||901,974,855.48|723,209,143.92|
|business operations|||
|Cash flow generated by business|||
||-4,846,476.55|-59,715,816.88|
|operations, net|||
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||847,400,000.00|86,000,000.00|
|recovery|||
|Cash received as investment profit|1,855,342.67|87,675.20|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets, and|860,000.00|3,042,427.80|
|other 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|||
||850,115,342.67|89,130,103.00|
|from investment|||
|Cash paid for construction of|||
|fixed assets, intangible assets and other|29,829,710.34|17,210,194.37|
|long-term assets|||
|Cash paid as investment|1,024,200,000.00|136,000,000.00|
|Net increase of loan against|||
|pledge|||
|Net cash paid for acquiring|||
|subsidiaries and other operational units|||
|Other cash paid for investment||50,000.00|
|Subtotal of cash outflows|1,054,029,710.34|153,260,194.37|
|Cash flow generated by investment|||
||-203,914,367.67|-64,130,091.37|
|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|||
||298,892,140.13|513,454,801.40|
|loans|||
|Cash received from bond placing|||
|Other cash received from|||
|||31.03|
|financing activities|||
|Subtotal of cash inflow from financing|||
||298,892,140.13|513,454,832.43|
|activities|||
|Cash paid to repay debts|190,000,000.00|386,000,000.00|
|Cash paid as dividend, profit, or|||
||19,702,834.06|18,750,977.53|
|interests|||
|Incl. Dividend and profit paid by|||
|subsidiaries to minority shareholders|||
|Other cash paid for financing|||
|||525,617.57|
|activities|||
|Subtotal of cash outflow from|||
||209,702,834.06|405,276,595.10|
|financing activities|||
|Net cash flow generated by financing|||
||89,189,306.07|108,178,237.33|
|activities|||
|4. Influence of exchange rate changes|||
||-119,537.97|311,278.28|
|on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||-119,691,076.12|-15,356,392.64|
|equivalents|||
|Plus: Balance of cash and cash|||
||935,824,575.40|247,739,243.78|
|equivalents at the beginning of term|||
|6. Balance of cash and cash equivalents|||
||816,133,499.28|232,382,851.14|
|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|||
||6,005,590.24|5,118,489.56|
|products and providing of services|||
|Tax refunded|||

||||
|-|-|-|
|Other cash received from business|||
||248,854,854.53|326,581,279.11|
|operation|||
|Sub-total of cash inflow from business|||
||254,860,444.77|331,699,768.67|
|operations|||
|Cash paid for purchasing products|||
||27,178,851.45|484,636.92|
|and services|||
|Cash paid to and for the staff|5,173,336.56|4,211,712.91|
|Taxes paid|720,339.74|1,583,084.62|
|Other cash paid for business|||
||79,271,693.27|181,651,052.50|
|activities|||
|Sub-total of cash outflow from|||
||112,344,221.02|187,930,486.95|
|business operations|||
|Cash flow generated by business|||
||142,516,223.75|143,769,281.72|
|operations, net|||
|2. Cash flow generated by investment:|||
|Cash received from investment|||
||100,000,000.00|11,000,000.00|
|recovery|||
|Cash received as investment profit|431,862,876.73|3,537,254.69|
|Net cash retrieved from disposal|||
|of fixed assets, intangible assets, and|||
|other 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|||
||531,862,876.73|14,537,254.69|
|from investment|||
|Cash paid for construction of|||
|fixed assets, intangible assets and other|433,510.00|27,689.11|
|long-term assets|||
|Cash paid as investment|100,000,000.00|61,000,000.00|
|Net cash paid for acquiring|||
|subsidiaries and other operational units|||
|Other cash paid for investment|||
|Subtotal of cash outflows|100,433,510.00|61,027,689.11|
|Cash flow generated by investment|||
||431,429,366.73|-46,490,434.42|
|activities, net|||
|3. Cash flow generated by financing|||

||||
|-|-|-|
|activities:|||
|Cash received from investment|||
|Cash received from borrowed|||
|||200,000,000.00|
|loans|||
|Cash received from bond placing|||
|Other cash received from|||
|||31.03|
|financing activities|||
|Subtotal of cash inflow from financing|||
|||200,000,031.03|
|activities|||
|Cash paid to repay debts|100,000,000.00|250,000,000.00|
|Cash paid as dividend, profit, or|||
||1,967,831.25|5,437,331.26|
|interests|||
|Other cash paid for financing|||
|||525,617.57|
|activities|||
|Subtotal of cash outflow from|||
||101,967,831.25|255,962,948.83|
|financing activities|||
|Net cash flow generated by financing|||
||-101,967,831.25|-55,962,917.80|
|activities|||
|4. Influence of exchange rate changes|||
|on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||471,977,759.23|41,315,929.50|
|equivalents|||
|Plus: Balance of cash and cash|||
||74,159,732.87|25,583,130.83|
|equivalents at the beginning of term|||
|6. Balance of cash and cash equivalents|||
||546,137,492.10|66,899,060.33|
|at the end of the period|||

2.Auditor‘s report
Whether the Q1 report is audited
□ Yes√ No
The Q2 Report is not audited.
China Fangda Group Co., Ltd.
Legal representative: Xiong Jianming
25.04.17