China Fangda Group Co., Ltd. Annual Report 2013 Summary Stock Code: 000055, 200055 Stock ID: Fangda Group, Fangda B Announcement No. 2014-10 China Fangda Group Co., Ltd.
Annual Report 2013 Summary
1 Important Declaration
This is the summary abstracted from the complete version of Annual Report, which is published synchronously on the internet (http://www.cninfo.com.cn) for details please refer to the complete version.
Company Profile
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|Stock ID|Fangda Group, Fangda B|Stock code||000055, 200055|
|Stock Exchange|Shenzhen Stock Exchange||||
|Modified stock ID (if any)|None||||
|Contacts and liaisons|Secretary of the Board||Representative of Stock Affairs||
|Name|Zhou Zhigang||Guo Linchen||
|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||

2. Financial Highlight and Changes in Shareholders
(1) Financial highlights
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
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||2013|2012|Increase/decrease (%)|2011|
|Turnover (yuan)|1,747,620,845.74|1,397,901,424.59|25.02%|1,348,776,366.53|
|Net profit attributable to shareholders|85,676,863.78|24,948,377.20|||
||||243.42%|65,503,925.58|
|of the listed company (yuan)|||||
|Net profit attributable to the|||||
|shareholders of the listed company and|||||
||68,393,391.56|7,361,274.38|829.1%|51,005,479.89|
|after deducting of non-recurring|||||
|gain/loss (RMB)|||||
|Net cash flow generated by business|156,544,620.31|59,262,071.37|||
||||164.16%|-57,045,495.85|
|operation (RMB)|||||
|Basic earnings per share (yuan/share)|0.11|0.03|266.67%|0.09|
|Diluted Earnings per share (yuan/share)|0.11|0.03|266.67%|0.09|
|Weighted average net income/asset|||||
||7.61%|2.3%|5.31%|6.28%|
|ratio (%)|||||
||End of 2013|End of 2012|Increase/decrease (%)|End of 2011|
|Total asset (RMB)|2,599,557,542.57|2,327,802,889.51|11.67%|2,163,325,598.14|
|Net profit attributable to the|1,160,639,730.85|1,098,612,195.57|5.65%|1,073,843,444.65|

China Fangda Group Co., Ltd. Annual Report 2013 Summary
||
|-|
|shareholders of the listed company|
|(RMB)|

(2) Top 10 Shareholders
||||||||
|-|-|-|-|-|-|-|
|||||Number of shareholders by the|||
|Number of shareholders at the||||end of the 5th date day before the|||
|||56,745|||55,133||
|end of the reporting period||||disclosure date of the annual|||
|||||report|||
|Top 10 Shareholders|||||||
||Properties of|Shareholding|Number of||Pledging or freezing||
|Shareholder||||Conditional shares|||
||shareholder|(%)|shares||Share status|Amount|
|ShenzhenBanglinTechnologiesDevelopmentCo., Ltd.|Domesticnon-state legalperson|9.09%|68,774,273|0|||
||||||Pledged|32,510,000|
|ShenyinWanguoSecuritiesAgreementRepurchaseAccount|Others|4%|30,270,000|0|||
|ShengjiuInvestment Ltd.|Foreign legalperson|3.52%|26,646,506|0|||
|Huang Jupei|Domesticnatural person|3.29%|24,917,200|0|||
|ShenzhenShiliheInvestment Co.,Ltd.|Domesticnon-state legalperson|2.36%|17,860,992|0|||
|Wang Shaolin|Domesticnatural person|2.22%|16,800,000|0|||
|Jiang Jing|Domesticnatural person|1.41%|10,635,440|0|||
|China ResourceSZITIC Trust –Smart GoldNo.28Collective TrustProgram|Others|0.9%|6,820,638|0|||
|Wang Nuo|Domesticnatural person|0.73%|5,553,602|0|||
|Cao Yifan|Domesticnatural person|0.48%|3,654,365|0|||
|||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 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.|||||
|||Huang Jupei holds 14,917,200 stocks of the Company through an ordinary account and|||||
|Statement of shareholders|||||||
|||10,000,000 stocks of the Company through the GF Securities customer credit transaction|||||
|participating in margin trade (if|||||||
|||guarantee securities account. Wang Nuo holds 5,553,602 stocks of the Company through the|||||
|any)|||||||
|||Everbright Securities customer credit transaction guarantee securities account.|||||

The related shareholder of the Shenyin Wanguo Securities Agreement Repurchase Account is Wang Xue. There were
30,270,000 stocks to be repurchased by the end of the report period, accounting for4% of the Company's all
stocks.
China Fangda Group Co., Ltd. Annual Report 2013 Summary (3) Chart of the controlling relationship between the practical controller and the Company:
Xiong Jianming
85% 100%
Shenzhen Banglin Technologies Shengjiu Investment Co.,
Development Co., Ltd. Ltd.
9.09% 0.13% 3.52%
China Fangda Group Co.,
Ltd .
3. Management Discussion and Analysis
During the report period, the Chinese economic slowdown continues and the pressure on the economy is increasing. Subdued by the tightened money supply, the competition becomes increasingly fierce. The Company has adhered to the its main business including the curtain wall and screen door based on independent innovation and has increased the market share thanks to its outstanding brand equity, technology and services. Increases in orders, projects, sales revenue and profit margin reflect theCompany’s strong growth in various areas. In 2013, the Company secured orders worth RMB2.842 billion, yielding operating revenue of RMB1,747,620,800, up36% and25.02% year-on-year respectively. The net profit attributable to owners of the parent soared243.42% to RMB85,676,900 and the net profit after deducting of non-recurring gain/loss grew829.1%, showing strong growth of the profitability of main businesses. By the end of 2013, the order reserve totals RMB2.699 billion with an operating cash flow of RMB156,544,600, which accounts for154.45% of the operating revenue of 2013, bolstering the business operating in 2014.
1. Explosive increase in curtain wall system and material orders
In 2013, the curtain wall system and material business, as main contributors of sales revenue and profits of the Company, have maintained strong growth momentum, with an explosive increase in orders from across the country. The Company has won bids in high-end low-carbon curtain wall projects including SOHO China Shanghai Bund project, Beijing Yanxi Lake International Club (Core Island) villa, landscape tower and hotel (venue for non-formal meetings of leaders in APEC 2014), Nanjing Heixi General Hospital, Fuzhou Rongqiao Riverbank Plaza, Chengdu Huazhi Plaza residential buildings, Nanjing Jiangsu Bank Building, Chengdu Palm Springs& Fairmont Hotel, Kunming Xishan Wanda, Wuhan Wanda Central Cultural Zone J1 Hanxiu Theatre, Shenzhen SEG Hitachi Industry Zone renovation project, Shenzhen Rainbow Headquarters Building and Shenzhen CITIC Bank Building. In 2013, new orders of the curtain wall systems and materials totaled RMB2.396 billion, generating sales revenue of RMB1,600,231,100, up26.91% year on year.
During the report period, the solar photovoltaic (PV) curtain wall system was applied in the Nanjing Jiangsu Bank Building project undertaken by the Company. The construction and renovation of buildings equipped with the power-generating PV curtain walls has a rosy outlook. Currently, PV curtain walls have emerged as the latest development trend for the curtain wall industry. The Company applied the PV curtain wall technology in Fangda Building as early as 2003, marking the Company's clear leading position in the field. During the report period, the Wuhan Central Cultural Zone K5 Hanjie Wanda Plaza curtain wall project was praised as the world-class standard of outer wall mounting so far in the industry thanks to the successful application of multiple innovative technologies. Other projects including the Shenzhen Airport T3 Terminal and CGNPC Building completed in 2013 have been high-acclaimed for the unique, breath-taking and outstanding design, showing the incomparable quality of Fangda's curtain walls. By the end of the report period, the Company has obtained 340 curtain wall and material patents, including 20 invention patents, making the Company a technological leader in the industry.
Thanks to the outstanding technology, brand equity and services, Fangda curtain wall systems and material products have emerged as the leading high-end products in China, boosting the market demand. To meeting the expanding market demand, the Company has continued to improve the hardware facilities and boost the output capacity. In 2013, the Dongguan Songshanhu Production Base was put into operation. The curtain wall system
China Fangda Group Co., Ltd. Annual Report 2013 Summary and material business landscape has taken shape with Shenzhen as the headquarters, Dongguan Songshanhu as the production base in the south, Beijing in the north, Chengdu in the southwest, and Shanghai and Nanchang in the east. The production bases in Dongguan and Nanchang are the largest and most modern ones in China and the world. Currently, all the five production bases have been put into operation, boosting theCompany’s output capability and paving the way to increase the market share and elevate competiveness. Given theCompany’s leading position in the curtain wall system and material industry, the curtain wall system and material business is likely to maintain the fast growth over the past few years.
2. Rail transport equipment business grasps opportunities to increase market shares
AsChina’s urbanization accelerates, the urban rail transport construction embraces a gold development opportunity. Riding the tide of massive rail transport construction, the Company has made remarkable headway in market development, further increasing its market shares. Thanks to the leading performance, stable quality, high reliability and pleasant outer appearance, theCompany’s products have gained wide favor from customers. In 2013, theCompany’s wholly-owned subsidiary Fangda Automatic System won bids in a series of screen door projects including Shenzhen Longhua line, Shenzhen subway line No.9 and 11,Xi’an railway line No.3, Fuzhou railway line No.1, Nanchang railway line No.1, and Hubei inter-city railway (Wuhan high-speed railway) and Wuhan subway line No.4 (phase II). Projects won by the subsidiary accounted for70% of all the screen door projects in China, reflecting theCompany’s strong market position, brand equity and leading position in the domestic screen door industry. After more than adecade’s innovation and development, screen doors developed by the Company with intellectual property rights have been widely used in more than 10 domestic cities including Beijing, Shenyang, Dalian, Tianjin, Shanghai, Nanjing, Fuzhou,Xi’an, Wuhan, Nanchang, Guangzhou, Dongguan and Shenzhen as well as developed cities in the Asia-Pacific region including Singapore, Hong Kong and Taiwan. Currently, about60% of metro cities have adopted Fangda's railway screen doors, which have grasped the largest share in the domestic screen door market. In 2013, the metro screen door sales revenue increased16.10% year-on-year. As the Chinese economy continues to grow and urbanization gathers steam, the country will further step up railway construction. Therefore, the growth momentum for the domestic railway screen door industry will remain strong and bolster theCompany’s screen door business.
The metro screen door system is a hi-tech mechatronic product with high requirements on reliability and stability. It requires professional and regular maintenance, which creates a high added-value industry. The Company has a natural advantage in this high-end service industry. Our screen door system are independently developed by us, thus enabling us to provide prompt, overall, effective and standard maintenance services for our customers without other third parties. With the continuous development of the rail transport system, the rail transport will become a major transport means, stimulating the demand for screen door maintenance services and creating enormous opportunities. The Company will fully utilize our advantage in the metro screen door field to integrate the rail transport equipment industry chain and develop the maintenance service business.
3. Vigorously pace up the Fangda Town Renovation Project
The renovation plan forCompany’s Fangda Town project lying in Shenzhen Nanshan Xili Longjing has been approved by the Building and Environmental Art Commission of the Shenzhen Planning and Land Resources Committee. Currently, the renovation project has been launched. The renovation project (the “Project”) is constructed by Shenzhen Fangda Property Development Co., Ltd., a wholly-owned subsidiary of the Company with a total investment of about RMB2.5 billion. In additional industry buildings for domestic use, the project comprises about 100,000
m2
of industry buildings for sales, 20,000
m2
of business property and 70,000 m2 of industry buildings for lease. The project will start pre-sales in Q4 2015 and sales will be completed in 2017. The project will create substantial business benefits and will boost thecompany’s value and bolster theCompany’s long-term development.
4. Play an active role in social charitable activities
As an industry leader, the Company has continued playing an active role in social charitable activities and seeing donations as part of its social responsibilities. After the earthquake in Ya'an on April 20, the Company called on the staff to donate money for victims in the first place to help relieve the disaster. Employees of the Company in cities across China including Beijing, Shanghai, Chengdu, Shenyang, Nanchang and Dongguan donated nearly RMB270,000. In addition, the Company made donations to the Jiangxi Anle Hope Primary School and Shenzhen Polytechnic to support students from poor families in 2013. The Company has also received titles including Active Company in Social Charity and Charitable Enterprise.
5. Others
In 2013, the Company won a series of titles including the Guangdong Top-500 Enterprises, Shenzhen Top-100 Enterprises, 2013 China Top-100 Brands, Guangdong Good-Faith Enterprises, Shenzhen Top-100 High-Quality Enterprises and Shenzhen Reliable Quality Enterprises.
Fangda Decoration Engineering, a wholly-owned subsidiary of the Company won a series of titles and prizes
China Fangda Group Co., Ltd. Annual Report 2013 Summary including the China Top-50 Curtain Wall Producer, 2012 Guangdong Special Contribution to High Construction and Engineering Quality, Outstanding Enterprises in the 2013 Shenzhen Quality Management Team Activity, two prizes in the 2012-2013 National High-Quality Engineering Prize. The curtain wall project of the Shenzhen Universiade Center won the 2012-2013 Luban Prize (National High-Quality Engineering) and 11th National Civil Engineering Zhan Tianyou Prize and another two prizes in the 2013 Fu Cai Cup QCC Prize. Fangda Jiangxi New Material, another wholly-owned subsidiary of the Company won the title of Nanchang Hi-Tech Zone 2012 Leading Enterprises, with its products FANGDA aluminum panel 2.0, 2.5 and 3.0 receiving the title of the Nanchang Well-Known Brands. Fangda Automatic System, another wholly-owned subsidiary of the Company, won the titles of outstanding companies and individuals in the 2012 Xian metro construction competition. 4. Related issues involved the financial report
(1) Statement of changes to accounting policies, estimates and audit methods compared with the financial report of the previous year
TheCompany’s accounting policies, estimates and calculation methods have remained unchanged from the last annual report.
(2) Statement of retrospective restatement of major accounting errors in the report period
None
(3) Statement of change in the financial statement consolidation scope compared with the previous financial report
None
(4) Statement of the Board on the “non-standardauditors’ report” issued by the CPA on the current report period
TheCompany’s auditor Grant Thornton (limited liability partnership) issued the standard opinionauditor’s report for theCompany’s 2013 financial statement.