Fangda China Group Co., Ltd. 2016Interim Report
China Fangda Group Co., Ltd.
2016 Interim Report
Jul. 2016
1
Fangda China Group Co., Ltd. 2016Interim Report
I. Important Statement, Table of Contents and Definitions
The members of the Board and the Company guarantee that the interim
report is free from any false information, misleading statement or material
omission and are jointly and severally liable for the information’s truthfulness,
accuracy and integrity.
All the Directors have attended the meeting of the board meeting at which
this report was examined.
The Company will distribute no cash dividends or bonus shares and has no
reserve capitalization plan.
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.
Forward-looking statements involved in this report including future plans
do not make any material promise to investors. Investors should pay attention to
investment risks.
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Fangda China Group Co., Ltd. 2016Interim Report
Table of Contents
I. Important Statement, Table of Contents and Definitions ......................................................................................................................2
II. Company Profile .................................................................................................................................................................................6
III Financial Highlight .............................................................................................................................................................................8
IV Board of Directors’ Report ............................................................................................................................................................... 11
V Significant Events ..............................................................................................................................................................................22
VI Changes in Share Capital and Shareholders .....................................................................................................................................28
VII Preferred Shares ..............................................................................................................................................................................33
VIII Particulars about the Directors, Supervisors, and Senior Management ..........................................................................................34
IX Financial Statements .........................................................................................................................................................................35
X Documents for Reference ................................................................................................................................................................133
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Fangda China Group Co., Ltd. 2016Interim 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
Fangda Jianke Shenzhen Fangda Jianke Group Co., Ltd.
to
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
Fangda Aluminium Refers Jiangxi Fangda New Type Aluminum Co., Ltd.
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Fangda China Group Co., Ltd. 2016Interim Report
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
Chengdu Fangda Jianke Chengda Fangda Construction Technology Co., Ltd.
to
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
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Fangda China Group Co., Ltd. 2016Interim Report
II. Company Profile
1. Company Profile
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.
English name (if any) Fangda Group
English name (if any) CHINA FANGDA GROUP CO., LTD.
English abbreviation (if any) CFGC
Legal representative Xiong Jianming
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. Other Information
1. Liaison
Changes to the Company’s registration address, office address, post code, website or email during the report period
□ Applicable √ Inapplicable
Company’s registration address, office address, post code, website or email have not changed during the report period. See Annual
Report 2015 for details.
2. Information disclosure and inquiring
Changes to the information disclosure and inquiring place
□ Applicable √ Inapplicable
Please refer to the 2015 annual report for the newspapers and websites where the Company’s information is disclosed. The inquiry
address of the interim report has remained unchanged during the report period.
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Fangda China Group Co., Ltd. 2016Interim Report
3. Registration changes
Whether the registration has changed during the report period
□ Applicable √ Inapplicable
Please refer to 2015 annual report for the Company’s registration date and address, business license No., tax registration No. and
organization registration code, which have remained unchanged during the report period.
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Fangda China Group Co., Ltd. 2016Interim Report
III Financial Highlight
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) 1,009,456,049.75 1,150,115,523.53 -12.23%
Net profit attributable to shareholders of
53,156,405.36 51,317,648.87 3.58%
the listed company (yuan)
Net profit attributable to the shareholders
of the listed company and after deducting 44,265,089.57 35,487,052.40 24.74%
of non-recurring gain/loss (RMB)
Net cash flow generated by business
298,469,343.92 -274,712,071.19
operation (RMB)
Basic earnings per share (yuan/share) 0.07 0.07 0.00%
Diluted Earnings per share (yuan/share) 0.07 0.07 0.00%
Weighted average net income/asset ratio 3.99% 4.07% -0.08%
End of the report period End of last year Year-on-year change
Total asset (RMB) 5,197,762,204.44 4,464,147,811.40 16.43%
Net profit attributable to the shareholders
1,298,007,705.19 1,319,496,334.84 -1.63%
of the listed company (RMB)
2. 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
53,156,405.36 51,317,648.87 1,298,007,705.19 1,319,496,334.84
standards
Items and amounts adjusted according International Accounting Standards
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Fangda China Group Co., Ltd. 2016Interim Report
On international accounting
53,156,405.36 51,317,648.87 1,302,771,103.43 1,324,259,733.08
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
Net assets attributable to the listed company’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.
3. Accidental gain/loss item and amount
√ Applicable □ Inapplicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss (including the write-off part
-2,385,055.21
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 1,545,204.08
and based on unified national standard quota)
Gain from entrusted investment or assets management 109,920.54
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 -413,383.46
assets, other than valid period value instruments related to the
Company’s common businesses
Gain/loss from change of fair value of investment property
10,576,793.91
measured at fair value in follow-up measurement
Other non-business income and expenditures other than the above 2,703,089.56
Less: Influenced amount of income tax 3,297,963.39
Influenced amount of minority shareholders’ equity
-52,709.76
(after-tax)
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Fangda China Group Co., Ltd. 2016Interim Report
Total 8,891,315.79 --
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.
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Fangda China Group Co., Ltd. 2016Interim Report
IV Board of Directors’ Report
1. Summary
In 2016 H1, the Chinese economic growth continued slowing, while the recovery of the global economy remained weak.
Despite the adverse external economic condition, the Company has managed to realize the H1 operation target. During the report
period, despite the large number of remaining orders, the Company recorded operating revenue of RMB1,009,456,000, down 12.23%
year on year due to the weather. The net profit attributable to owners of the parent company is RMB531,564,000, up 3.58% year on
year. The net profit after deducting accidental gain/loss is RMB44,65,100, up 24.74% year on year. The earnings from main business
reached RMB298,469,300. The profit from main businesses has continued increasing in the report period. By the end of the report
period, the Company had secured orders worth RMB3,356,124,700, which 332.47% of the operating revenue in H1 2016, paving the
way for the Company to complete the whole year’s sales target.
1. Curtain wall system and material business continues growing
The Company has continued pursuing for better quality and performance and has developed a series of world-class projects. The
Company's curtain wall systems and materials have won wide recognition among customers, become one of the most popular
energy-saving high-end curtain wall system and material brands in China. In H1, the Company continues to win a larger market share
by providing customized products and focuses on the South China region with Shenzhen as the core city and customers with high
quality and creditability. In the report period, the Company has won a series of energy-saving high-end curtain wall and aluminium
plate supply contracts including the Beijing Vanke Tongzhou Taihu, Shanghai Vanke Jade Bingjiang, Wuxi Wanda Mall Phase II,
Chengdu Lingdi Center Phase II, Lanzhou International Trade Center Phase II and Shenzhen Kexing Tech Park Zone D. During the
report period, the reserve of curtain wall system and material orders reaches RMB2.193 billion, paving the way for the long-term
growth of the Company. The Company proactively organizes design, purchase, production and engineering to transfer orders of
high-end curtain wall systems and materials into operation revenue, thus lowering the impacts of the adverse weather condition in H1.
During the report period, the Company has completed projects including Nanchang Wanda Mall Business Center, Shenzhen Wenbo
Building, Nanjing Jinrun Plaza, Chengdu Yintai Alibaba, Shenzhen Zhonghai Modern Art Gallery and City Planning Exhibition Hall.
Nanchang Wanda Mall Business Center is featured by the blue and white porcelain style and great engineering difficulties. The
project shows the Company's outstanding curtain wall design and engineering expertise.
2. Gold opportunities for the rail transport equipment industry
In H1, thanks to the one-belt-one-road policy and Made in China 2025 Plan, the Company has grasped a leading position in the
domestic subway screen door market and has started to compete with global leaders in overseas markets. In the report period, the
Company has won a series of screen door and safety door projects including the MTR SCL Phase II screen door and East Rail Line
safety door project (including maintenance), Indian Noida subway, and Malaysia Kuala Lumpur subway line No.2 and Wuhan
subway line No.7 phase I. The MTR subway screen door order is the global largest subway screen door order in terms of the order
amount. The Company has made a great leap in the overseas market. In the future, the Company will accelerate the overseas market
development. The screen door business enjoys a rosy development outlook in the overseas market. In H1, the operation revenue from
the screen door business reaches RMB164,147,600, up 69.28% year on year. The Company has won bids worth RMB668 million.
The order reverse totals RMB1.16 billion by the end of H1, which is 708% of the operation revenue from the screen door business in
2016 H1.
In the report period, the Shenzhen subway line No.11, Dongguan subway line No.2 and Fuzhou subway line No.1 were put into
operation with outstanding operation record. The screen door systems used on these projects have won high recognition and
safeguard citizens and passengers.
Currently, more and more urban railway transportation projects have been implemented. The railway transport equipment
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Fangda China Group Co., Ltd. 2016Interim Report
industry will enjoy explosive growth. The Company, as the industry leader in terms of the screen door technology, brand, services
and market share, will benefit from the strong growth of the industry. Over recent years, the percentage of operation revenue of the
railway transportation business has continued increasing in the Company. Moreover, the Company has proactively started to provide
the subway maintenance services. Currently, the business has taken a shape and will become a new income source of the Company.
As more subway lines enter the maintenance period, the sector has a bright growth outlook. In addition, the Company has put great
efforts to develop the railway transport advertising and intelligent systems to extend the railway transport equipment industry chain,
explore more profit sources and share the benefit of the development of the sector.
3. Issuance approved to push forward the development of the new energy industry
During the report period, the Company continues developing the PV industry as scheduled. The Jiangxi Pingxiang Luxi
Xuanfeng 20MWp distributed PV power plant and Nanchang Jiangxi Isuzu Automobile parking lot roof 6.3MWp distributed PV
power generation project have been connected to the power grid and start power generation. The fund raised by from the Company's
non-public share issuance will be used to fund the PV power plants projects with a total capacity of 39.3MWp and replenish the
Company's working capital. The Company received the approval from the CSRC on June 12. On August 1, the new shares will
become listed. The total fund raised is RMB469,899,992.60. The issuance will further boost the development of the solar power PV
business, bring stable income and profit for the Company, and improve the Company's profitability and competitiveness.
4. Fangda Town renovation project construction and sales
The construction area of the Fangda Town renovation project is about 330,000 m2, with four office buildings, a four-floor
commercial podium and four floors underground. According to the development plan, 100,000m2 will be sold and another 100,000m2
will be leased. The Fangda Town were put into sales in January 2016. The sales amount is RMB1.59 billion. The project will be
completed by the end of 2016 and delivered in 2016 and 2017. The project will substantially increase the Company’s assets, bring
stable cash flow and lease income for the Company, supporting the Company’s future demand for capital.
5. Others
In the report period, the Company won three awards including the Dual-Outstanding Enterprise, and Quality Improvement and
Harmonious Employment Relationship. The railways transport station screen door system is elected as the National Torch Program
Industry Pilot Project. Jiangxi New Material Company is elected as the Jiangxi Quality AAA Rating Enterprise and Nanchang
Hi-Tech Zone Outstanding Enterprise.
2. Main business analysis
Year-on-year changes in major financial data
In RMB
This report period Same period last year YOY change (% ) Cause of change
Turnover 1,009,456,049.75 1,150,115,523.53 -12.23%
Operation cost 831,307,619.61 940,487,258.35 -11.61%
Mainly due to decrease
Sales expense 25,417,302.84 41,009,137.46 -38.02% in the advertising
expense
Administrative expense 73,800,752.02 75,547,311.64 -2.31%
Mainly due to decrease
Financial expenses 17,587,854.56 25,609,734.67 -31.32%
in interest expense
Mainly due to the
Income tax expenses 8,901,695.41 16,168,196.04 -44.94%
different income tax rates
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Fangda China Group Co., Ltd. 2016Interim Report
applied to subsidiries
R&D investment 44,158,340.87 39,856,514.35 10.79%
Mainly to the pre-sales
Cash flow generated by
298,469,343.92 -274,712,071.19 -208.16% increase of the Fangda
business operations, net
Plaza
Cash flow generated by Mainly due to purchase
-117,405,175.95 148,325,056.01 -179.15%
investment activities, net financial products
Mainly due to repayment
Net cash flow generated of bank borrowings and
-61,649,037.60 236,132,790.12 -126.11%
by financing activities dividend distributed to
shareholders
Net increase in cash and
119,824,986.63 109,732,694.75 9.20%
cash equivalents
Major changes in profit composition or sources during the report period
□ Applicable √ Inapplicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in the Company’s IPO prospectus, fund raising prospectus and capital reorganization
report into this report period
□ Applicable √ Inapplicable
No future development and plan disclosed in the Company’s IPO prospectus, fund raising prospectus and capital reorganization
report is delayed into this report period.
Implementation of business plans disclosed in previous periods in this period
During the report period, despite the large number of remaining orders, the Company recorded operating revenue of
RMB1,009,456,000, down 12.23% year on year due to the weather. The net profit attributable to owners of the parent company is
RMB531,564,100, up 3.58% year on year. The net profit after deducting accidental gain/loss is RMB44,65,100, up 24.74% year on
year. The earnings from main business continue growing rapidly. By the end of the report period, the Company had secured orders
worth RMB,3356,124,700, which 332% of the operating revenue in H1 2016, paving the way for the Company to complete the
whole year’s sales target.
In H1, due to the adverse weather condition, the operating revenue from the curtain wall system and material business is
RMB813 million, down 11.90% year on year. The order reserve is RMB2.193 billion, which is 270% of the operating revenue in H1
2016, underpinning the development of the curtain wall system and material business in the whole year. The screen door business
continues growing rapidly. In the period, the Company has won bids worth RMB668 million. By the end of the H1 2016, the order
reserve reaches RMB1.16 billion, which is 708% of the income from the business in H1 2016. During the report period, the operating
revenue of the business reaches RMB164,147,600, up 69.28% year on year. The Company continues developing the PV industry as
scheduled. The Jiangxi Pingxiang Luxi Xuanfeng 20MWp distributed PV power plant and Nanchang Jiangxi Isuzu Automobile
parking lot roof 6.3MWp distributed PV power generation project have been connected to the power grid and start power generation.
The non-public share issuance has been approved in writing by CSRC on June 12. A total of 32,184,931 new shares will be listed on
August 1, 2016 to raise RMB469,899,992.60. The Fangda Town were put into sales in January 2016. The sales amount is RMB1.59
billion. The project will be completed by the end of 2016 and delivered in 2016 and 2017.
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Fangda China Group Co., Ltd. 2016Interim Report
3. Business composition
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 812,907,799.80 678,546,934.35 16.53% -11.90% -11.22% -0.64%
Railroad industry 164,147,627.33 129,473,720.68 21.12% 69.28% 75.52% -2.80%
Product
Curtain wall
system and 812,907,799.80 678,546,934.35 16.53% -11.90% -11.22% -0.64%
materials
Metro screen
164,147,627.33 129,473,720.68 21.12% 69.28% 75.52% -2.80%
door
District
Domestic 964,838,386.59 804,906,937.31 16.58% -13.31% -12.69% -0.59%
4 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 395 curtain wall and material patents (including 30 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 50 th Anniversary of the Foundation
of the People’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
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Fangda China Group Co., Ltd. 2016Interim Report
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 13 th 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 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 of
China’s rail transport screen door industry and enabled the Company a dominant lead in the industry. Currently, the Company has
226 metro screen door patents, including 47 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 ten years’ 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 the Company’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 20 years’ 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 resoures, preferential
policies and moderate competition in the district. The project will buoy the Company’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.
VI. Investment
1. External equity investment
(1) External investment
□ Applicable √ Inapplicable
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Fangda China Group Co., Ltd. 2016Interim Report
The Company made no external investment in the report period.
(2) Financial enterprise share held
□ Applicable √ Inapplicable
The Company held no stake in financial companies in the report period.
(3) Securities investment
√ Applicable □ Inapplicable
Number
Number
of shares
of shares Closing
Initial held at Opening Closing
Abbreviat held at book Gain/loss Accounti
Securities Code investmen beginning sharehold sharehold Source
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 82,680,00 82,680,00 14,132,82 -413,383. onal
Stock 00702 0.33% 0.21% Purchase
Holdings 5.00 0 0 3.12 46 financial
Ltd assets
16,263,67 82,680,00 82,680,00 14,132,82 -413,383.
Total -- -- -- --
5.00 0 0 3.12 46
Disclosure date of approval by
the Board of Directors of 11.03.14
securities investment
Disclosure date of securities
investment approval by the
Shareholders’ Meeting (if any)
(4) Notes to shareholding in other listed companies
□ Applicable √ Inapplicable
The Company holds no stock of other list companies in the report period.
2. Trust wealth management, investment in derivatives and entrustment loan
(1) Wealth management
√ Applicable □ Inapplicable
In RMB10,000
Trustee Relations Related Type of Amount Start date End date Earning Principal Impairme Estimate Actual
16
Fangda China Group Co., Ltd. 2016Interim Report
hip transactio product recognitio recovered nt return gain/loss
n n method actually provision in the
(if any) report
period
Bank of Non-affili Earning-p Annual
No 2,500 05.02.16 15.02.16 2,500 1.37 1.37
China ated party rotected yield 2%
Bank of Non-affili Earning-p Annual
No 600 06.02.16 15.02.16 600 0.3 0.3
China ated party rotected yield 2%
Annual
Bank of Non-affili Earning-p
No 400 06.02.16 15.02.16 yield 400 0.21 0.21
China ated party rotected
2.10%
Principal
Annual
Bank of Non-affili and
No 4,000 02.02.16 15.02.16 yield 4,000 3.42 3.42
China ated party interest
2.40%
protected
Principal
Annual
Bank of Non-affili and
No 5,000 22.03.16 06.04.16 yield 5,000 5.16 5.16
China ated party interest
2.251%
protected
Principal
Annual
Bank of Non-affili and
No 8,800 31.05.16 05.07.16 yield 22.78 0
China ated party interest
2.7%
protected
Principal
Bank of Non-affili and Annual
No 1,100 06.02.16 15.02.16 1,100 0.54 0.54
China ated party interest yield 2%
protected
Total 22,400 -- -- -- 13,600 33.78 11
Source of fund Self-owned fund
Principal and return due but not covered 0
Lawsuit (if any) None
Disclosure date of approval announcement
11.03.14
(if any)
Disclosure date of Shareholders' Meeting
approval announcement (if any)
(2) Derivative investment
√ Applicable □ Inapplicable
In RMB10,000
17
Fangda China Group Co., Ltd. 2016Interim Report
Proporti
on of
closing
investm
Derivati Impairm ent Actual
Initial Amount Closing
ve Related Amount ent amount gain/los
Relation Initial Start End investm sold in investm
investm transacti Type in this provisio in the s in the
ship amount date date ent this ent
ent on period n (if closing report
amount period amount
operator any) net period
assets in
the
report
period
Shangha
i Shanghai
5,297.0 01.01.1 15.12.1 5,297.0 3,098.0 2,199.0
Futures None No aluminu 0 1.69% 279.98
96 6 9 3 6
Exchan m
ge
5,297.0 5,297.0 3,098.0 2,199.0
Total -- -- 0 1.69% 279.98
9 9 3 6
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 aluminum
for the derivative holding in the
futures exchanged at the domestic futures exchange to provide hedging for aluminum as a
report period (including without
raw material for the Company. The Company has set up and implemented the Provicial
limitation market, liquidity, credit,
Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.
operaton and legal risks)
Changes in the market price or fair
value of the derivative in the report
period, the analysis of the
Fair value of derivatives are measured at open prices in the futures market
derivative’s fair value should disclose
the method used and related
assumptions and parameters.
Material changes in the accounting
No
policies and rules related to the
18
Fangda China Group Co., Ltd. 2016Interim Report
derivative in the report period
compared to last period
Oppinions of independent directors
on the Company’s derivative None
investment and risk controlling
(3) Trusted loans
□ Applicable √ Inapplicable
The Company borrowed no trust loan in the report period.
3. Use of raised capital
□ Applicable √ Inapplicable
The Company used no raised capital in the report period.
4. Analysis of major subsidiaries and joint-stock companies
√ Applicable □ Inapplicable
Major subsidiaries and joint-stock companies
In RMB
Main
Registered Operation
Company Type Industry products or Total assets Net assets Turnover Net profit
capital profit
services
Constructio
Fangda Curtain 500,000,00 2,719,343,9 772,966,31 729,638,33 49,230,43 40,210,496.6
Subsidiary n and decor
Jianke wall system 0 79.72 6.65 5.87 3.68 5
industry
Fangda Railroad Metro 105,000,00 533,839,45 238,486,04 165,186,77 16,417,63 14,199,971.9
Subsidiary
Automatic industry screen door 0 9.70 9.13 7.29 9.47 6
5. Major projects of non-raised capital
□ Applicable √ Inapplicable
The Company has no major project financed not by raised capital in the report period.
VI. Forecast of operating performance between January and September in 2016
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
19
Fangda China Group Co., Ltd. 2016Interim Report
VII. Statement of the Board on the “non-standard auditors’ report issued by the CPA on the
current report period
□ Applicable √ Inapplicable
VIII. Statement of the Board of Directors on the Non-standard Auditor’s Report for H1 2014
□ Applicable √ Inapplicable
IX. Implementation of Profit Distribution of the Company in the Report Period
Profit distribution plans implemented during the report period, especially cash dividend and reserve capitalization plans
√ Applicable □ Inapplicable
The 2015 Profit Distribution Proposal was approved on the 20th meeting of the 7th Board of Director held on April 22, 2016 and
will be confirmed after being reviewed at the 2015 General Shareholders' Meeting held on May 17, 5, 2016. A cash dividend of
RMB1.00 (tax inclusive) will be paid on each ten shares to all shareholders on the basis of 756,909,905 shares with a total amount of
RMB75,690,990.50. The planning, review and implementation procedure of the profit distribution complies with related laws and
regulations and the Company’s Articles of Association. The profit distribution plan was implemented on May 31, 2016 (see the
Announcement on Implementation of the 2014 Equity Distribution Plan 2016-25).
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
X. Profit Distribution and Reserve Capitalization Plan in the Report Period
□ Applicable √ Inapplicable
The Company distributed no cash dividends or bonus shares and has no reserve capitalization plan.
XI. Reception of investigations, communications, or interviews in the reporting period
√ Applicable □ Inapplicable
Main content involved and
Time/date Place Way Visitor Visitor
materials provided
20
Fangda China Group Co., Ltd. 2016Interim Report
Changjiang
Onsite Securities, Harvest Business and future
12.01.16 Shenzhen Institution
investigation Fund, UBS SDIC development
and Chang'an Trust
Onsite Guotai Junan Business and future
07.03.16 Shenzhen Institution
investigation Securities development
Onsite Business and future
11.03.16 Shenzhen Institution GF Securities
investigation development
GS Fund, Guotai
Asset Management,
First Seafront
Fund, SZ Capital,
ZX Asset
Management, Great
Onsite Business and future
16.03.16 Shenzhen Institution Wall Fund,
investigation development
Shenzhen Jishi
Capital, Qianhai
Shangzheng Fund,
Ping An Leasing
and Winfast
Holding
GS Fund, Guosen
Onsite Securities and Business and future
13.05.16 Shenzhen Institution
investigation China Merchants development
Securities
Huatai Securities,
Pacific Securities,
Onsite Business and future
24.05.16 Shenzhen Institution StarRock
investigation development
Investment and
Eminet Capital
21
Fangda China Group Co., Ltd. 2016Interim Report
V Significant Events
I. Corporate Governance
The corporate governance complies with the Company Law and related requirements of CSRC.
II. Lawsuit
Significant lawsuit and arbitration
□ Applicable √ Inapplicable
The Company has no significant lawsuit or arbitration affair in the report period.
Other lawsuit
□ Applicable √ Inapplicable
III. Media questioning
□ Applicable √ Inapplicable
The Company has no significant affair that arouses media questioning.
IV. Bankruptcy and capital reorganizing
□ Applicable √ Inapplicable
The Company has no bankruptcy or reorganization events in the report period.
V. Assets trade
1. Assets acquisition
□ Applicable √ Inapplicable
The Company required no assets in the report period.
2. Assets acquisition
□ Applicable √ Inapplicable
The Company sold no assets in the report period.
3. Enterprise merger
□ Applicable √ Inapplicable
The Company merged no company in the report period.
22
Fangda China Group Co., Ltd. 2016Interim Report
VI. Implementation and influences of share equity incentive program
□ Applicable √ Inapplicable
The Company made or implemented no option incentive scheme in the report period.
VII. 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 transactions
□ Applicable √ Inapplicable
The Company made no related transaction of assets 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 related transactions
□ Applicable √ Inapplicable
The Company has no other significant related transaction in the report period.
VIII. 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.
23
Fangda China Group Co., Ltd. 2016Interim Report
IX. Significant contracts and performance
1. Asset entrusting, leasing, contracting
(1) Asset entrusting
□ Applicable √ Inapplicable
The Company made no custody in the report period.
(2) Contracting
□ Applicable √ Inapplicable
The Company made no contract in the report period
(3) Leasing
√ Applicable □ Inapplicable
Leasing
The investment real estate is used as external leasing. The rental income in the report period is RMB12,367,600.
Projects that create gains accounting for over 10% of the Company’s total profit in the report period
□ Applicable √ Inapplicable
The Company leased no projects that create gains accounting for over 10% of the Company’s total profit in the report period.
2. Guarantee
√ Applicable □ Inapplicable
In RMB10,000
External guarantees made by the Company (exclude those made for subsidiaries)
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complete Related
Term
provided to disclosure amount (signing date of of guarantee guarantee d or not party
agreements)
Guarantee between the Company and its subsidiaries
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complete Related
Term
provided to disclosure amount (signing date of of guarantee guarantee d or not party
agreements)
since engage
of contract to
Fangda Jianke 27.03.15 71,000 19.06.15 20,386.76 Joint liability No No
2 years upon
due of debt
Fangda Jianke 27.03.15 26,000 10.10.15 19,729.1 Joint liability since engage No No
24
Fangda China Group Co., Ltd. 2016Interim Report
of contract to
2 years upon
due of debt
since engage
of contract to
Fangda Jianke 27.03.15 40,000 17.09.15 32,627.56 Joint liability No No
2 years upon
due of debt
since engage
of contract to
Fangda Jianke 01.07.15 20,000 22.07.15 15,000 Joint liability No No
2 years upon
due of debt
since engage
of contract to
Fangda Jianke 27.03.15 15,000 30.12.15 24,796.66 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 14,476.69 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 2,830.12 Joint liability No
2 years upon
due of debt
since engage
Fangda New of contract to
27.03.15 6,200 27.09.15 3,170.36 Joint liability No No
Material 2 years upon
due of debt
since engage
Fangda New of contract to
26.04.16 8,000 19.05.16 524.6 Joint liability No No
Material 2 years upon
due of debt
since engage
of contract to
Fangda Property 23.03.13 130,000 03.02.15 48,652.41 Joint liability No No
2 years upon
due of debt
Total of guarantee to Total of guarantee to
subsidiaries approved in the 333,000 subsidiaries actually occurred 134,698.79
report term (B1) in the report term (B2)
Total of guarantee to Total of balance of guarantee
subsidiaries approved as of the 595,200 actually provided to the 182,194.26
report term (B3) subsidiaries as of end of report
25
Fangda China Group Co., Ltd. 2016Interim Report
term (B4)
Guarantee provided to subsidiaries
Actual date of
Guarantee Date of Guarantee occurring Actual amount Type of Complete Related
Term
provided to disclosure amount (signing date of of guarantee guarantee d or not party
agreements)
Total of guarantee provided by the Company (total of the above three)
Total of guarantee approved in Total of guarantee occurred in
333,000 134,698.79
the report term (A1+B1+C1) the report term (A2+B2+C2)
Total of guarantee approved as Total of guarantee occurred as
of end of report term 595,200 of the end of report term 182,194.26
(A3+B3+C3) (A4+B4+C4)
Percentage of the total guarantee occurred (A4+B4+C4) on net
140.36%
asset of the Company
Including:
(1) Incompliant external guarantee
□ Applicable √ Inapplicable
The Company made no incompliant external guarantee in the report period.
3. Other significant contract
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report.
4. Other related transactions
□ Applicable √ Inapplicable
The Company entered into no other significant contract in the report period.
X. Commitments of shareholders with over 5% of shares made in the report term or carried
over from previous terms
□ Applicable √ Inapplicable
The Company and shareholders with more than 5% stakes in the Company made no guarantee in the report period or before report
period but remaining effective in the report period.
XI. Engaging and dismissing of CPA
Whether the interim financial report is audited
□ Yes √ No
26
Fangda China Group Co., Ltd. 2016Interim Report
The interim report for H1 2015 has not been audited.
XII. Punishment and rectification
□ Applicable √ Inapplicable
The Company received no penalty and made no correction in the report period.
XIII. Delisting due to law violation
□ Applicable √ Inapplicable
The Company has no risks of delisting due to violating laws in the report period.
XIV. Other material events
√ Applicable □ Inapplicable
The Company implements non-public A-share issuance to raise fund for three PV power plant projects with a total capacity of
39.3MWp and for working capital. The issuance was approved by CSRC on June 12, 2016. After the issuance, 32,184,931 new
shares will be listed on Shenzhen Stock Exchange on August 1, 2016. The issuance will raise a total 469,899,992.60. After the
issuance expense of 10,030,772.72 is deducted, the net raised amount is 459,869,219.88.
XV. Corporate bonds
Bonds publicly issued and listed in a securities exchange, immature or not fully paid by the approval date of the annual report
No
27
Fangda China Group Co., Ltd. 2016Interim Report
VI Changes in Share Capital and Shareholders
1. Changes in shares
In share
Before the change Change (+,-) After the change
Issued Transferre
Bonus Proportio
Amount Proportion new d from Others Subtotal Amount
shares n
shares reserves
I. Shares with trade
972,042 0.13% 972,042 0.13%
restriction conditions
3. Other domestic shares 972,042 0.13% 972,042 0.13%
Domestic natural
972,042 0.13% 972,042 0.13%
person shares
II. Shares without trading 755,937,8 755,937,8
99.87% 99.87%
limited conditions 63 63
419,986,6 419,986,6
1. Common shares in RMB 55.49% 55.49%
75 75
2. Foreign shares in 335,951,1 335,951,1
44.38% 44.38%
domestic market 88 88
756,909,9 756,909,9
III. Total of capital shares 100.00% 100.00%
05 05
Reasons
□ Applicable √ Inapplicable
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
Statement of changes in share number and shareholder structure, assets and liabilities structure
□ Applicable √ Inapplicable
28
Fangda China Group Co., Ltd. 2016Interim Report
2. Shareholders and shareholding
In share
Number of shareholders of
Number of shareholders of
preferred stocks of which voting
common shares at the end of 33,234 0
rights recovered in the report
the report period
period (if any) (note 8)
Shareholders holding 5% of the Company's common shares or top-10 shareholders
Number Pledging or freezing
of
common Change in Condition Unconditio
Shareholdin
Nature of shares the al nal
Shareholder g
shareholder held at the reporting common common Share status Amount
percentage
end of the period shares shares
report
period
Shenzhen
Banglin
Domestic non-state 68,774,27
Technologies 9.09% 0 68,774,273 Pledged 25,090,000
legal person 3
Development
Co., Ltd.
Shengjiu Foreign legal 49,256,03
6.51% 1,394,300 49,256,030
Investment Ltd. person 0
GUOTAI
JUNAN
Foreign legal 35,133,34
SECURITIES( 4.64% 1,498,456 35,133,346
person 6
HONGKONG)
LIMITED
Domestic natural 27,069,14
Huang Jupei 3.58% 16,389,347 27,069,147
person 7
Shenzhen
Shilihe Domestic non-state 17,860,99
2.36% 0 17,860,992
Investment Co., legal person 2
Ltd.
Domestic natural 16,213,50
Zhou Shijian 2.14% 0 16,213,500
person 0
Huabao Trust
Co., Ltd. –
13,398,47
Tiangao Capital Others 1.77% -4,384,311 13,398,471
1
No.1 Trust
Program
29
Fangda China Group Co., Ltd. 2016Interim Report
National Social
12,341,45
Security Fund - Others 1.63% New 12,341,452
2
Yi Liu Portfolio
China Life
Insurance –
Dividend –
11,200,46
Personal Others 1.48% New 11,200,467
7
Dividend –
005L-FH002
Shen
Shenwan
Hongyuan
Foreign legal 10,221,92
Securities 1.35% 1,688,742 10,221,928
person 8
(Hong Kong)
Co., Ltd.
A strategic investor or ordinary
legal person becomes the Top10
None
common share shareholder 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 shareholders of unconditional common shares
Category of shares
Shareholder Amount of common shares without sales restriction Category of
Amount
shares
Shenzhen Banglin Technologies RMB common
68,774,273 68,774,273
Development Co., Ltd. shares
Foreign shares
Shengjiu Investment Ltd. 49,256,030 listed in domestic 49,256,030
exchanges
GUOTAI JUNAN Foreign shares
SECURITIES(HONGKONG) 35,133,346 listed in domestic 35,133,346
LIMITED exchanges
RMB common
Huang Jupei 27,069,147 27,069,147
shares
Shenzhen Shilihe Investment Co., RMB common
17,860,992 17,860,992
Ltd. shares
30
Fangda China Group Co., Ltd. 2016Interim Report
RMB common
Zhou Shijian 16,213,500 16,213,500
shares
Huabao Trust Co., Ltd. – Tiangao RMB common
13,398,471 13,398,471
Capital No.1 Trust Program shares
National Social Security Fund - Yi RMB common
12,341,452 12,341,452
Liu Portfolio shares
China Life Insurance – Dividend –
RMB common
Personal Dividend – 005L-FH002 11,200,467 11,200,467
shares
Shen
Foreign shares
Shenwan Hongyuan Securities
10,221,928 listed in domestic 10,221,928
(Hong Kong) Co., Ltd.
exchanges
No action-in-concert or related
parties among the top10 Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu
unconditional common share 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 common share Company is not notified of other action-in-concert or related parties among the other holders
shareholders and the top10 common of current shares.
share shareholders
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 27,068,147 shares of the Company
participating in margin trade (if any)
through the client credit trade securities account of GF Securities;
Agreed re-purchasing by the Company’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 the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common
shares in the report period
3. Changes in controlling shareholder or actual controller
Changes in the controlling shareholder in the reporting period
□ Applicable √ Inapplicable
No change in the controlling shareholder in the report period
Change in the actual controller in the report period
□ Applicable √ Inapplicable
No change in the actual shareholder in the report period
4. Statement on share increasing proposal raised by the shareholders or their
action-in-concert parties in the reporting period
√ Applicable □ Inapplicable
31
Fangda China Group Co., Ltd. 2016Interim Report
Disclosure date of
Name of
Proportion of Actual proportion Initial disclosure the share increase
shareholder/ Number of shares Actual number of
shares to be of shares date of the share plan
action-in-concer to be increased shares increased
increased increased increase plan implementation
t parties
completion
Shengjiu
1,394,300 0.18%
Investment Ltd.
32
Fangda China Group Co., Ltd. 2016Interim Report
VII Preferred Shares
□ Applicable √ Inapplicable
The Company had no preferred share in the report period.
33
Fangda China Group Co., Ltd. 2016Interim Report
VIII Particulars about the Directors, Supervisors, and Senior
Management
1. Changes in shareholding of Directors, Supervisors and Senior Management
□ Applicable √ Inapplicable
The Company’s Directors, supervisors and senior management shareholding has remained unchanged during the report period. For
details, please refer to the 2015 annual report.
2. Changes in the Directors, Supervisors and Senior Executives
√ Applicable □ Inapplicable
Name Job Type Date Reason
Independent
Huang Yaying Resigned 16.02.16 Huang Yaying has resigned due to person reasons
director
Independent
Deng Lei Engaged 16.02.16
director
34
Fangda China Group Co., Ltd. 2016Interim Report
IX Financial Statements
1. Auditor‘s report
Whether the interim report is audited
□ Yes √ No
The financial statements for H1 2014 have not been audited.
2. Financial statements
Unit for statements in notes to financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: China Fangda Group Co., Ltd.
30.06.16
In RMB
Items Closing balance Opening balance
Current asset:
Monetary capital 493,964,032.83 400,953,337.32
Settlement provision
Outgoing call loan
Financial assets measured at fair
value with variations accounted into 14,132,823.12 14,546,206.58
current income account
Derivative financial assets 1,230,425.00
Notes receivable 47,343,893.07 97,247,660.56
Account receivable 1,551,238,398.45 1,405,718,134.89
Prepayment 56,531,691.04 30,057,063.90
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable
Dividend receivable
Other receivables 65,363,959.30 53,095,948.46
35
Fangda China Group Co., Ltd. 2016Interim Report
Repurchasing of financial assets
Inventory 1,617,759,559.46 1,346,591,303.53
Assets held for sales
Non-current assets due in 1 year
Other current assets 141,047,232.11 11,395,718.05
Total current assets 3,988,612,014.38 3,359,605,373.29
Non-current assets:
Loan and advancement provided
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity investment 13,089,903.05 10,489,680.93
Investment real estate 346,392,822.12 335,328,805.74
Fixed assets 569,067,513.53 462,648,998.51
Construction in process 3,750,749.87 15,134,390.90
Engineering materials
Disposal of fixed assets 1,153.28 5,326.79
Productive biological assets 0.00
Gas & petrol 0.00
Intangible assets 93,275,946.13 95,062,982.48
R&D expense 0.00
Goodwill 19,826,696.97 19,826,696.97
Long-term amortizable expenses 6,189,054.29 6,614,788.88
Deferred income tax assets 71,382,139.03 65,926,810.52
Other non-current assets 86,174,211.79 93,503,956.39
Total of non-current assets 1,209,150,190.06 1,104,542,438.11
Total of assets 5,197,762,204.44 4,464,147,811.40
Current liabilities
Short-term loans 961,000,000.00 1,147,957,775.82
Loans from Central Bank
Deposit received and held for
others
Call loan received
Financial liabilities measured at
fair value with variations accounted into
36
Fangda China Group Co., Ltd. 2016Interim Report
current income account
Derivative financial liabilities 0.00
Notes payable 457,832,318.50 303,527,639.63
Account payable 919,784,128.12 867,628,355.65
Prepayment received 735,300,828.78 130,574,319.85
Selling of repurchased financial
assets
Fees and commissions payable
Employees’ wage payable 19,593,607.83 40,942,428.05
Taxes payable 54,591,332.32 67,533,433.70
Interest payable 2,730,895.79 3,241,834.43
Dividend payable
Other payables 63,200,925.69 82,677,346.81
Reinsurance fee payable
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 98,425,600.00 98,425,600.00
Total current liabilities 3,312,459,637.03 2,742,508,733.94
Non-current liabilities:
Long-term loans 486,524,108.36 300,395,582.06
Bond payable
Including: preferred stock
Perpetual bond
Long-term payable 0.00
Long-term employees’ wage
payable
Special payables
Anticipated liabilities 2,166,815.26 1,921,446.51
Deferred earning 12,634,303.65 12,284,195.68
Deferred income tax liabilities 75,951,028.86 72,994,768.34
Other non-current liabilities 0.00
37
Fangda China Group Co., Ltd. 2016Interim Report
Total of non-current liabilities 577,276,256.13 387,595,992.59
Total liabilities 3,889,735,893.16 3,130,104,726.53
Owner’s equity:
Share capital 756,909,905.00 756,909,905.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 79,099,713.38 79,099,619.14
Less: Shares in stock
Other miscellaneous income 1,137,692.88 91,831.63
Special reserves
Surplus reserves 51,123,554.51 51,123,554.51
Common risk provisions
Retained profit 409,736,839.42 432,271,424.56
Total of owner’s equity belong to the
1,298,007,705.19 1,319,496,334.84
parent company
Minor shareholders’ equity 10,018,606.09 14,546,750.03
Total of owners’ equity 1,308,026,311.28 1,334,043,084.87
Total of liabilities and owner’s interest 5,197,762,204.44 4,464,147,811.40
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 29,081,661.89 25,833,130.83
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable
Account receivable 22,865.24 345,960.74
Prepayment 18,722.97 67,893.61
Interest receivable
38
Fangda China Group Co., Ltd. 2016Interim Report
Dividend receivable 0.00
Other receivables 467,620,601.31 375,591,349.76
Inventory
Assets held for sales
Non-current assets due in 1 year
Other current assets 412,618.96 990,624.25
Total current assets 497,156,470.37 402,828,959.19
Non-current assets:
Sellable financial assets
Investment held until mature
Long-term receivable
Long-term share equity investment 970,300,871.25 967,700,649.13
Investment real estate 300,742,128.44 290,288,531.53
Fixed assets 56,338,183.59 57,647,245.73
Construction in process
Engineering materials
Disposal of fixed assets
Productive biological assets
Gas & petrol
Intangible assets 1,719,390.63 1,907,601.33
R&D expense
Goodwill
Long-term amortizable expenses 350,828.68 403,800.10
Deferred income tax assets 37,531,668.21 37,948,384.39
Other non-current assets 220,000,000.00 220,000,000.00
Total of non-current assets 1,586,983,070.80 1,575,896,212.21
Total of assets 2,084,139,541.17 1,978,725,171.40
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
39
Fangda China Group Co., Ltd. 2016Interim Report
Prepayment received 993,045.60 748,421.47
Employees’ wage payable 887,531.32 1,868,710.30
Taxes payable 482,400.87 1,338,421.09
Interest payable 597,481.86 726,993.55
Dividend payable
Other payables 327,982,995.35 155,183,721.49
Liabilities held for sales
Non-current liabilities due in 1
year
Other current liabilities 98,425,600.00 98,425,600.00
Total current liabilities 779,975,996.85 608,898,809.75
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
Deferred earning
Deferred income tax liabilities 123,725,075.40 120,953,378.63
Other non-current liabilities
Total of non-current liabilities 123,725,075.40 120,953,378.63
Total liabilities 903,701,072.25 729,852,188.38
Owner’s equity:
Share capital 756,909,905.00 756,909,905.00
Other equity tools
Including: preferred stock
Perpetual bond
Capital reserves 38,599,058.00 38,598,963.76
Less: Shares in stock
Other miscellaneous income 91,831.63 91,831.63
Special reserves
40
Fangda China Group Co., Ltd. 2016Interim Report
Surplus reserves 51,123,554.51 51,123,554.51
Retained profit 333,714,119.78 402,148,728.12
Total of owners’ equity 1,180,438,468.92 1,248,872,983.02
Total of liabilities and owner’s interest 2,084,139,541.17 1,978,725,171.40
3. Consolidated Income Statement
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Total revenue 1,009,456,049.75 1,150,115,523.53
Incl. Business income 1,009,456,049.75 1,150,115,523.53
Interest income
Insurance fee earned
Fee and commission
received
2. Total business cost 964,818,829.76 1,114,562,764.23
Incl. Business cost 831,307,619.61 940,487,258.35
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net insurance policy
reserves provided
Insurance policy dividend
paid
Reinsurance expenses
Business tax and surcharge 6,357,728.12 17,537,240.22
Sales expense 25,417,302.84 41,009,137.46
Administrative expense 73,800,752.02 75,547,311.64
Financial expenses 17,587,854.56 25,609,734.67
Asset impairment loss 10,347,572.61 14,372,081.89
Plus: gains from change of fair value
10,163,410.45 35,445,761.31
(“-“ for loss)
Investment gains (“-“ for loss) -289,857.34 1,547,997.68
Incl. Investment gains from
-399,777.88 1,256,994.94
affiliates and joint ventures
41
Fangda China Group Co., Ltd. 2016Interim Report
Exchange gains (“-“ for loss)
3. Operational profit (“-“ for loss) 54,510,773.10 72,546,518.29
Plus: non-operational income 6,363,729.16 3,425,924.45
Incl. Loss from disposal of
68,572.07 50,854.12
non-current assets
Less: non-operational expenditure 3,344,545.43 15,643,131.79
Incl. Loss from disposal of
2,453,627.28 504,805.05
non-current assets
4. Gross profit (“-“ for loss) 57,529,956.83 60,329,310.95
Less: Income tax expenses 8,901,695.41 16,168,196.04
5. Net profit (“-“ for net loss) 48,628,261.42 44,161,114.91
Net profit attributable to the owners
53,156,405.36 51,317,648.87
of parent company
Minor shareholders’ equity -4,528,143.94 -7,156,533.96
6. After-tax net amount of other misc.
1,045,861.25 -1,229,057.50
incomes
After-tax net amount of other misc.
1,045,861.25 -1,229,057.50
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
1,045,861.25 -1,229,057.50
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
42
Fangda China Group Co., Ltd. 2016Interim Report
4. Effective part in the gain
1,045,861.25 -1,229,057.50
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 49,674,122.67 42,932,057.41
Total of misc. incomes attributable
54,202,266.61 50,088,591.37
to the owners of the parent company
Total misc gains attributable to the
-4,528,143.94 -7,156,533.96
minor shareholders
8. Earnings per share:
(1) Basic earnings per share 0.07 0.07
(2) Diluted earnings per share 0.07 0.07
Net profit contributed by entities merged under common control in the report period was RMB , net profit realized by
parties merged during the previous period is RMB .
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 14,499,890.63 15,377,309.73
Less: Operation cost 1,019,406.36 1,670,215.88
Business tax and surcharge 1,220,187.64 1,227,826.65
Sales expense
Administrative expense 11,552,747.84 11,276,930.71
Financial expenses 3,559,630.74 5,120,806.86
Asset impairment loss 15,181.55 1,246,405.99
Plus: gains from change of fair
10,453,596.91 32,768,907.31
value (“-“ for loss)
Investment gains (“-“ for loss) -394,353.22 1,312,956.58
Incl. Investment gains from
-399,777.88 1,256,994.94
affiliates and joint ventures
2. Operational profit (“-“ for loss) 7,191,980.19 28,916,987.53
43
Fangda China Group Co., Ltd. 2016Interim Report
Plus: non-operational income 3,342,189.74 751,855.29
Incl. Loss from disposal of
3,581.20
non-current assets
Less: non-operational expenditure 89,374.82 3,104.40
Incl. Loss from disposal of
1,932.08
non-current assets
3. Gross profit (“-“ for loss) 10,444,795.11 29,665,738.42
Less: Income tax expenses 3,188,412.95 7,629,682.78
4. Net profit (“-“ for net loss) 7,256,382.16 22,036,055.64
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 7,256,382.16 22,036,055.64
44
Fangda China Group Co., Ltd. 2016Interim Report
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
1,543,342,196.26 880,753,505.06
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 638,256.40 1,487,373.49
Other cash received from business
61,030,313.38 37,271,825.34
operation
Sub-total of cash inflow from business
1,605,010,766.04 919,512,703.89
operations
45
Fangda China Group Co., Ltd. 2016Interim Report
Cash paid for purchasing products
979,343,688.52 922,181,248.55
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 128,733,391.35 141,611,724.17
Taxes paid 110,327,435.35 54,257,534.98
Other cash paid for business
88,136,906.90 76,174,267.38
activities
Sub-total of cash outflow from business
1,306,541,422.12 1,194,224,775.08
operations
Cash flow generated by business
298,469,343.92 -274,712,071.19
operations, net
2. Cash flow generated by investment:
Cash received from investment
186,000,000.00 331,500,000.00
recovery
Cash received as investment profit 109,920.54 2,491,002.79
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 9,183,213.10 134,190.00
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
195,293,133.64 334,125,192.79
investment
Cash paid for construction of fixed
assets, intangible assets and other 34,548,309.59 31,982,236.78
long-term assets
Cash paid as investment 277,000,000.00 113,700,000.00
Net increase of loan against pledge
Net cash paid for acquiring
46
Fangda China Group Co., Ltd. 2016Interim Report
subsidiaries and other operational units
Other cash paid for investment 1,150,000.00 40,117,900.00
Subtotal of cash outflows 312,698,309.59 185,800,136.78
Cash flow generated by investment
-117,405,175.95 148,325,056.01
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
761,128,526.30 707,903,670.40
loans
Cash received from bond placing
Other cash received from financing
31.03
activities
Subtotal of cash inflow from financing
761,128,557.33 707,903,670.40
activities
Cash paid to repay debts 709,500,000.00 352,000,000.00
Cash paid as dividend, profit, or
112,636,475.36 64,660,840.58
interests
Incl. Dividend and profit paid by
subsidiaries to minority shareholders
Other cash paid for financing
641,119.57 55,110,039.70
activities
Subtotal of cash outflow from financing
822,777,594.93 471,770,880.28
activities
Net cash flow generated by financing
-61,649,037.60 236,132,790.12
activities
4. Influence of exchange rate changes
409,856.26 -13,080.19
on cash and cash equivalents
5. Net increase in cash and cash
119,824,986.63 109,732,694.75
equivalents
Plus: Balance of cash and cash
247,739,243.78 102,638,232.19
equivalents at the beginning of term
6. Balance of cash and cash equivalents
367,564,230.41 212,370,926.94
at the end of the period
47
Fangda China Group Co., Ltd. 2016Interim Report
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
10,967,653.17 11,243,204.83
products and providing of services
Tax refunded
Other cash received from business
465,710,548.11 515,148,759.29
operation
Sub-total of cash inflow from business
476,678,201.28 526,391,964.12
operations
Cash paid for purchasing products
1,004,529.87 2,136,699.94
and services
Cash paid to and for the staff 7,228,487.72 7,189,717.90
Taxes paid 2,510,775.42 1,394,750.88
Other cash paid for business
380,887,024.06 469,504,100.24
activities
Sub-total of cash outflow from business
391,630,817.07 480,225,268.96
operations
Cash flow generated by business
85,047,384.21 46,166,695.16
operations, net
2. Cash flow generated by investment:
Cash received from investment
61,000,000.00 30,000,000.00
recovery
Cash received as investment profit 6,776,424.69 8,963,295.02
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 300,000.00 4,190.00
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
68,076,424.69 38,967,485.02
investment
Cash paid for construction of fixed
46,348.61 963,791.92
assets, intangible assets and other
48
Fangda China Group Co., Ltd. 2016Interim Report
long-term assets
Cash paid as investment 64,000,000.00
Net cash paid for acquiring
subsidiaries and other operational units
Other cash paid for investment 40,000,000.00
Subtotal of cash outflows 64,046,348.61 40,963,791.92
Cash flow generated by investment
4,030,076.08 -1,996,306.90
activities, net
3. Cash flow generated by financing
activities:
Cash received from investment
Cash received from borrowed
350,000,000.00 50,000,000.00
loans
Cash received from bond placing
Other cash received from financing
31.03
activities
Subtotal of cash inflow from financing
350,000,031.03 50,000,000.00
activities
Cash paid to repay debts 350,000,000.00
Cash paid as dividend, profit, or
85,187,480.03 34,570,863.79
interests
Other cash paid for financing
641,119.57 1,171,039.70
activities
Subtotal of cash outflow from financing
435,828,599.60 35,741,903.49
activities
Net cash flow generated by financing
-85,828,568.57 14,258,096.51
activities
4. Influence of exchange rate changes
-360.66
on cash and cash equivalents
5. Net increase in cash and cash
3,248,531.06 58,428,484.77
equivalents
Plus: Balance of cash and cash
25,583,130.83 22,006,065.49
equivalents at the beginning of term
6. Balance of cash and cash equivalents
28,831,661.89 80,434,550.26
at the end of the period
7. Statement of Change in Owners’ Equity (Consolidated)
Amount of the Current Term
49
Fangda China Group Co., Ltd. 2016Interim Report
In RMB
Current period
Owners’ Equity Attributable to the Parent Company
Minor
Other equity tools Other Commo Total of
Items shareho
Less:
Share Prefer Perpet Capital miscella Special Surplus n risk Retaine owners’
Shares lders’
Other equity
capital red ual reserves neous reserves reserves provisio d profit
in stock equity
s
share bond income ns
756,90 1,334,0
1. Balance at the 79,099, 91,831. 51,123, 432,271 14,546,
9,905. 43,084.
end of last year 619.14 63 554.51 ,424.56 750.03
00 87
Plus:
Changes in
accounting
policies
Correction of
previous errors
Consolidation of
entities under
common control
Others
2. Balance at the 756,90 1,334,0
79,099, 91,831. 51,123, 432,271 14,546,
beginning of 9,905. 43,084.
619.14 63 554.51 ,424.56 750.03
current year 00 87
3. Amount of
change in current 1,045,8 -22,534, -4,528,1 -26,016,
94.24
term (“-“ for 61.25 585.14 43.94 773.59
decrease)
(1) Total of misc. 1,045,8 53,156, -4,528,1 49,674,
incomes 61.25 405.36 43.94 122.67
(2) Investment or
decreasing of 94.24 94.24
capital by owners
1. Common shares
contributed by
shareholders
2. Capital
contributed by
other equity
50
Fangda China Group Co., Ltd. 2016Interim Report
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others 94.24 94.24
(3) Profit -75,690, -75,690,
allotment 990.50 990.50
1. Providing of
surplus reserves
2. Common risk
provision
3. Allotment to the
-75,690, -75,690,
owners (or
990.50 990.50
shareholders)
4. 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
year
2. Used this term
(6) Others
756,90 1,308,0
4. Balance at the 79,099, 1,137,6 51,123, 409,736 10,018,
9,905. 0.00 0.00 0.00 26,311.
end of this period 713.38 92.88 554.51 ,839.42 606.09
00 28
51
Fangda China Group Co., Ltd. 2016Interim Report
Amount of Last Year
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’
Shares lders’
Other equity
capital red ual reserves neous reserves reserves provisio d profit
in stock equity
s
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.
220.38 63 080.76 ,825.69 764.53
current year 00 99
3. Amount of
change in current -1,229,0 28,610, -7,156, 20,224,
term (“-“ for 57.50 351.72 533.96 760.26
decrease)
(1) Total of misc. -1,229,0 51,317, -7,156, 42,932,
incomes 57.50 648.87 533.96 057.41
(2) Investment or
decreasing of
capital by owners
1. Common shares
contributed by
shareholders
2. Capital
contributed by
52
Fangda China Group Co., Ltd. 2016Interim Report
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
(3) Profit -22,707, -22,707,
allotment 297.15 297.15
1. Providing of
surplus reserves
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
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
4. Balance at the 756,90 79,099, -1,137,2 48,842, 378,598 58,447, 1,320,7
0.00
end of this period 9,905. 220.38 25.87 080.76 ,177.41 230.57 59,388.
53
Fangda China Group Co., Ltd. 2016Interim Report
00 25
8. Statement of Change in Owners’ Equity (Parent Company)
Amount of the Current Term
In RMB
Current period
Other equity tools Other
Less: Total of
Items Share 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, 38,598,96 51,123,55 402,148 1,248,872
91,831.63
end of last year 905.00 3.76 4.51 ,728.12 ,983.02
Plus:
Changes in
accounting
policies
Correction of
previous errors
Others
2. Balance at the
756,909, 38,598,96 51,123,55 402,148 1,248,872
beginning of 91,831.63
905.00 3.76 4.51 ,728.12 ,983.02
current year
3. Amount of
change in current -68,434, -68,434,5
94.24
term (“-“ for 608.34 14.10
decrease)
(1) Total of misc. 7,256,3 7,256,382
incomes 82.16 .16
(2) Investment or
decreasing of 94.24 94.24
capital by owners
1. Common shares
contributed by
shareholders
2. Capital
contributed by
other equity
instrument helders
54
Fangda China Group Co., Ltd. 2016Interim Report
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others 94.24 94.24
(3) Profit -75,690, -75,690,9
allotment 990.50 90.50
1. Providing of
surplus reserves
2. Allotment to the
-75,690, -75,690,9
owners (or
990.50 90.50
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
year
2. Used this term
(6) Others
4. Balance at the 756,909, 38,599,05 51,123,55 333,714 1,180,438
91,831.63
end of this period 905.00 8.00 4.51 ,119.78 ,468.92
Amount of Last Year
In RMB
Last period
Items
Share Other equity tools Capital Less: Other Special Surplus Retaine Total of
55
Fangda China Group Co., Ltd. 2016Interim Report
capital reserves Shares in miscellan reserves reserves d profit owners’
Preferre Perpetu
Others stock eous equity
d share al bond
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
beginning of 91,831.63
905.00 5.00 0.76 ,761.53 ,143.92
current year
3. Amount of
change in current -671,24 -671,241.
term (“-“ for 1.51 51
decrease)
(1) Total of misc. 22,036, 22,036,05
incomes 055.64 5.64
(2) Investment or
decreasing of
capital by owners
1. Common shares
contributed by
shareholders
2. Capital
contributed by
other equity
instrument helders
3. Amount of
shares paid and
accounted as
owners’ equity
4. Others
(3) Profit -22,707, -22,707,2
allotment 297.15 97.15
1. Providing of
56
Fangda China Group Co., Ltd. 2016Interim Report
surplus reserves
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
year
2. Used this term
(6) Others
4. Balance at the 756,909, 38,598,56 48,842,08 403,651 1,248,093
91,831.63
end of this period 905.00 5.00 0.76 ,520.02 ,902.41
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 the Company’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 comprises shareholders’ meeting, board of directors and
supervisory committee. Currently, the Company sets up the President Office, Administrative Department, HR Department, Enterprise
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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 Jiangxi
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 22 nd meeting of the 7th term of the Board held on July 19, 2016.
The consolidation scope for the consolidated financial statements includes the Company and all subsidiaries. The entities newly
consolidated this period include one sub-subsidiary and Fangda Automation (Hong Kong) Co., Ltd. Ganzhou Longneng New Energy
Co., Ltd. is written off this period. See Note VIII. Change to the Consolidation Scope and Note IX. 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 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.
2. Continuous operation
The Group has the continuous operation capability within at least 12 months from the end of the report period.
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 5. 13 and Note 5. 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 30.06.16, and business performance and cash flow situation in Year 2016 of the Company frankly
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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.
Enterprise merger under common control through multiple transactions
In separate financial statements, the initial investment cost is the book value of the merged party’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 controlling party’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 current period’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
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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 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 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 the shareholders’ equity in subsidiaries not owned the Company are separately listed under the shareholders’ equity as
minority shareholders’ equity in the consolidated balance sheet. The part of the subsidiaries’ net profits and losses for the current
period that belongs to minority shareholders is listed as minority shareholders’ 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 the owners’ equity of the
subsidiaries at the beginning of the period, the excessive part will offset the minority shareholders’ 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
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disposal income obtained from the partial disposal of the subsidiary’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 of subsidiaries’ 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 net assets’ 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 period’s profit and loss
when the control power is losted, except for the other misc. incomes generated by remeasurement 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 a company’s financial assets and contracts that form other units of financial liabilitie 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:
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(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
Financial assets of the Group are categorized as: financial assets measured at fair value with variations accounted into current income
For financial
account, loans and account receivables.Financial assets are measured at the fair value at the initial recognition.
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
The Group’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
For financial assets or liabilities in an active market, the Group determines their fair value based on quotations in the active
market. If there is no active market, the Company uses evaluation techniques to determine the fair value.
(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
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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:
① 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;
⑤ 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 guanrantee considered.
Conduct imparement test separately for major financial assets. If there is objective evidence suggesting impairement, 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.
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(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 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
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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
□ 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
The Group’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 in transit and sel-made
semi-finished products 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
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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.
(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 merged party’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 the owner’s equity except for net profit and
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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 recognizeable 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 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. incomes of original share equity investment
determined using the equity method, when the equity method is no longer used, it should be treated based on the same basis of the
treatment of related assets or liability of the invested entities; the other owners' interests related to the original share equity
investment should be transferred to gain/loss of the current 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 the Company’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 used 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 holds 20% (inclusive) but less than 50% 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 than
20% of the shares with voting rights, it is generally not considered that the Company has significant impacts on the invested entity,
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Fangda China Group Co., Ltd. 2016Interim Report
unless there is clear evidence proving 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 estates
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 estate with an active real estate transaction market and the Group can obtain market price and other
information of same or similar real estate to reasonably estimate the investment real estates’ fair value, the Group will use the fair
value mode to measure the investment real estate subsequently. Variations in fair value are accounted into the current gain/loss
account.
The fair value of investment real estate 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.
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
Annual depreciation
Type (2) Depreciation method Service year Residual rate
rate %
Houses & buildings Average age 35-45 10 2-2.57
Mechanical equipment Average age 10 10 9
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Fangda China Group Co., Ltd. 2016Interim Report
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
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.
(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.
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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
The Group’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
Computer 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
intangible assets’ book value into the current gain/loss account.
See Note V. 18 for the impairment provision method for intangible assets.
(2) Accounting policies for internal R&D expenses
The Group divides internal R&D project expenses into research and development expenses.
The research expenses are accounted the current gain/loss account.
Development expenses can only be capitalized when the following conditions are satisfied: the technology is feasible for use or sales;
there is the intention to use or sell the intangible assets; it can be proven that the product generated by the intangible assets is
demanded or the intangible assets in demanded; if the intangible is used internally, it can be proven that it is useful; with necessary
technical and financial resources and other resources to complete the 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
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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 estatement, 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.
19. Long-term amortizable expenses
The Group’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 operational leasing
A. Scope of staff remuneration
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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.
B. Short-term remuneration
The Group pays for the medical insurance, job injury insurance and breeding insurance and housing fund according to employees’
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.
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
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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 laber 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.
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
① Construction contracts
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
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Fangda China Group Co., Ltd. 2016Interim Report
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.
② Sales product
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.
(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
setoff, the exceeded part shall be recorded into current income account; if there is no relative differed gain, record to current income
account directly.
24. Differed income tax assets and differed income tax liabilities
Income tax includes current and deferred income taxExcept for the adjustment goodwill generated by mergers or deferred
income tax related to transactions or events directly accounted into the owners’ equity, income tax is accounted as income tax
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Fangda China Group Co., Ltd. 2016Interim Report
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 subsudiaries 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, deductable 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 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.
On the balance sheet day, the Group re-exmaines the book value of the deferred income tax assets. If it is unlikely to have
adequate taxable proceeds to reduct the benefits of the deferred income tax assets, less the deferred income tax assets’ book value.
When there is adequate taxable proceeds, the lessened amount will be reversed.
25. Leasing
(1) Accounting of operational leasing
A. 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.
B. 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.
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26. Other significant accounting policies and estimates
Accounting of hedging
When the hedging relationship is initially specified, the Group officially specifies the related hedging relationships with official
documents recording the hedging relationships, risk management targets and hedging strategies. The documents record hedging tools,
hedged items or transactions, nature of risks, and how the Company values the effectiveness of the fair value change caused by risks.
The Group forecasts that the hedging are highly effective in offsetting the fair value changes. The Group will continue review the
effectiveness of the hedging relationships to ensure that the effectiveness of the hedging relationships in the report period.
Some derivative financial tool transactions are provide effective economic hedging against risks under the Group's risk
management situation. However, they do not comply with the conditions for using hedging accounting and are treated at derivative
financial tools held for transactions. Their fair value is recorded in gain and loss.
27. Major changes in accounting policies and estimates
(1) Changes in accounting policies
□ Applicable √ Inapplicable
(2) Changes in major accounting estimates
□ Applicable √ Inapplicable
28. Others
29. 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.
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 helf of valuation
experts.
(3) Deferred income tax assets
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Fangda China Group Co., Ltd. 2016Interim Report
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 income based on the completion of individual construction contract. The management determines the
completion percentage based on the actual cost in the total budget and forecasts the contract income. The starting and completion
dates of construction contracts fall in different account periods. The Group will review and adjust contract income and cost
estimation in budgets (if the actual contract income is less than the estimate or actual contract cost, contract estimation loss provision
will be made).
VI. Taxation
1. Major taxes and tax rates
Tax Tax basis Tax rate
VAT Taxable income 6%、13%、17%
Business tax Taxable income 3%、5%
City maintenance and construction tax Taxable turnover 1%、5%、7%
Enterprise income tax Taxable income 15%、16.5%、25%
Education surtax Taxable turnover 3%
Local education surtax Taxable turnover 2%
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. 12.5%
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%
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Fangda China Group Co., Ltd. 2016Interim Report
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%
Fangda Automation (Hong Kong) Co., Ltd. 16.5%
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 of 15% 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 on 19.06.15, Fangda Decoration was
entitled to enjoy a tax preference of enterprise income tax of 15% 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 of 15% 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 Registrion [2013] No.739 and will enjoy exemption from the enterprise
income tax for two years and 50% 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. 50% reduction in 2016
(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 of 15%.
(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 of 15%.
(8) On March 2, 2016, according to the document issued by Luxi National Tax Bureau, the PV power generation project undertaken
by Pingxiang Fangda Luxin New Energy Co., Ltd, became the infrastructure project supported by the central government. the
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Fangda China Group Co., Ltd. 2016Interim Report
company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the company entered
the exemption period.
(9) On 02.06.16, according to the document issued by Nanchang Xinjian District National Tax Bureau, the PV power generation
project undertaken by Nanchang Xinjian Fangda New Energy Co., Ltd, became the infrastructure project supported by the central
government. the company enjoys a three-year enterprise income tax relief and 50% reduction for another three years. In 2016, the
company entered the exemption period.
VII. Notes to the consolidated financial statements
1. Monetary capital
In RMB
Items Closing balance Opening balance
Inventory cash: 18,968.85 28,072.46
Bank deposits 361,783,369.83 266,315,876.39
Other monetary capital 132,161,694.15 134,609,388.47
Total 493,964,032.83 400,953,337.32
Including: total amount deposited in
5,838,686.27 5,722,165.37
overseas
Other note
(1) A bank deposit of RMB457,119.83 of Fangda SOZN was frozen by the court due to a lawsuit.
(2) The closing balance of the book value of the other monetary capital of RMB132,161,694.15 is mainly the futures, bank
acceptance bill and guarantee deposit and investment, including a deposit of RMB125,942,682.59. The deposit and frozen deposit
shall not be treated as cash and cash equivalent in the preparation of cash flow statements.
2. Financial assets measured at fair value with variations accounted into current income account
In RMB
Items Closing balance Opening balance
Transactional financial assets 14,132,823.12 14,546,206.58
Investment in equity tools 14,132,823.12 14,546,206.58
Total 14,132,823.12 14,546,206.58
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
In RMB
Items Closing balance Opening balance
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Fangda China Group Co., Ltd. 2016Interim Report
Hedging tools 1,230,425.00
Total 1,230,425.00
Others:
The hedging tools are mainly the float profit of the Shanghai aluminum futures purposed by the Group for hedging.
4. Notes receivable
(1) Classification of notes receivable
In RMB
Items Closing balance Opening balance
Bank acceptance 8,987,900.00 10,289,884.74
Commercial acceptance 38,355,993.07 86,957,775.82
Total 47,343,893.07 97,247,660.56
(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 57,159,591.85
Total 57,159,591.85
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 1,611,9
1,769,09 218,427, 1,550,671 206,824,1 1,405,151,1
providing of bad debt 99.53% 12.35% 75,331. 99.41% 12.83%
9,272.43 873.98 ,398.45 97.04 34.89
provisions on groups 93
Account receivable
with minor individual
8,401,99 7,834,99 567,000.0 9,541,6 8,974,655
amount and bad debt 0.47% 93.25% 0.59% 94.06% 567,000.00
1.28 1.28 0 55.45 .45
provision provided
individually
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Fangda China Group Co., Ltd. 2016Interim Report
1,621,5
1,777,50 226,262, 1,551,238 215,798,8 1,405,718,1
Total 100.00% 12.70% 16,987. 100.00% 13.31%
1,263.71 865.26 ,398.45 52.49 34.89
38
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 1,035,044,611.13 31,051,338.33 3.00%
1-2 years 366,541,563.92 36,654,156.39 10.00%
2-3 years 165,149,806.49 49,544,941.95 30.00%
Over 3 years 202,363,290.89 101,177,437.31 50.00%
Total 1,769,099,272.43 218,427,873.98 12.35%
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 RMB10,426,012.77 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 RMB204,369,066.75, accounting for 11.50% of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB9,168,545.93.
6. Prepayment
(1) Account age of prepayments
In RMB
Closing balance Opening balance
Age
Amount Proportion Amount Proportion
Less than 1 year 46,582,659.66 82.40% 23,448,649.55 73.89%
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Fangda China Group Co., Ltd. 2016Interim Report
1-2 years 5,550,072.69 9.82% 3,490,224.16 12.05%
2-3 years 3,013,006.67 5.33% 1,418,149.13 5.15%
Over 3 years 1,385,952.02 2.45% 1,700,041.06 8.91%
Total 56,531,691.04 -- 30,057,063.90 --
Explanation of non-settlement of significant prepayments with an accounting age of more than 1 year:
(2) Balance of top 5 prepayments at the end of the period
The total of top5 prepayments in terms of the prepaid entities in the period is RMB15,013,300.76, accounting for 26.56% of the total
prepayments at the end of the period.
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 Provision value Proportio Provision
Amount Amount Amount Amount
n rate n rate
Recognition and
79,248,1 13,884,2 65,363,95 65,503, 12,407,63 53,095,948.
providing of bad debt 99.82% 17.52% 99.78% 18.94%
70.41 11.11 9.30 587.52 9.06 46
provisions on groups
Other receivables
with minor individual
146,100. 146,100. 146,100 146,100.9
amount and bad debt 0.18% 100.00% 0.22% 100.00% 0.00
95 95 .95 5
provision provided
individually
79,394,2 14,030,3 65,363,95 65,649, 12,553,74 53,095,948.
Total 100.00% 17.67% 100.00% 19.12%
71.36 12.06 9.30 688.47 0.01 46
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
Closing balance
Age
Other receivables Bad debt provision Provision rate
Sub-item of within 1 year
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Fangda China Group Co., Ltd. 2016Interim Report
Subtotal for less than 1 year 43,101,949.82 1,289,459.82 3.00%
1-2 years 12,409,679.80 1,240,967.99 10.00%
2-3 years 2,572,510.61 771,753.18 30.00%
Over 3 years 21,164,030.18 10,582,030.12 50.00%
Total 79,248,170.41 13,884,211.11 17.52%
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 RMB1,521,902.93 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
Deposit 38,627,646.08 36,529,862.27
Construction borrowing and advanced
13,434,423.68 17,242,358.04
payment
Staff borrowing and petty cash 6,094,442.72 3,062,219.75
Receivable refund of VAT 80,888.90
Others 21,237,758.88 8,734,359.51
Total 79,394,271.36 65,649,688.47
(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
Lanzhou Railway
Performance deposit 6,931,316.60 Less than 1 year 9.00% 207,939.50
Transport Co., Ltd.
Engineering
Wang Weihong 4,944,388.15 3-5 years 6.23% 2,436,976.26
contracting payment
Engineering
Xin Song 2,620,327.61 Over 3 years 3.30% 1,310,163.81
contracting payment
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Fangda China Group Co., Ltd. 2016Interim Report
Installation Within 1 year, 1-2
Zeng Liang 2,345,324.74 2.95% 151,921.11
borrowing years
Zhejiang Baoye
Construction Group Deposit 1,500,000.00 Less than 1 year 1.89% 45,000.00
Co., Ltd.
Total -- 18,341,357.10 -- 23.10% 4,152,000.68
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 100,676,202.26 7,030,968.49 93,645,233.77 85,916,458.16 7,069,471.61 78,846,986.55
Product in
8,485,541.05 8,485,541.05 6,971,619.92 6,971,619.92
process
Finished goods in
18,047,070.77 5,492,755.53 12,554,315.24 18,325,455.59 5,513,219.11 12,812,236.48
stock
Assets unsettled
for finished
195,939,264.98 1,830,742.67 194,108,522.31 226,526,505.83 1,830,742.67 224,695,763.16
construction
contracts
Low price
97,882.79 97,882.79 69,223.68 69,223.68
consumable
OEM materials 2,957,939.00 1,218,716.77 1,739,222.23 8,791,959.78 1,218,716.77 7,573,243.01
Goods delivered 30,397,939.74 30,397,939.74 986,708,925.20 986,708,925.20
Development cost 1,276,730,902.33 1,276,730,902.33 28,913,305.53 28,913,305.53
Total 1,633,332,742.92 15,573,183.46 1,617,759,559.46 1,362,223,453.69 15,632,150.16 1,346,591,303.53
(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 7,069,471.61 38,503.12 7,030,968.49
Finished goods in 5,513,219.11 20,463.58 5,492,755.53
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Fangda China Group Co., Ltd. 2016Interim Report
stock
Assets unsettled
for finished
1,830,742.67 1,830,742.67
construction
contracts
OEM materials 1,218,716.77 1,218,716.77
Total 15,632,150.16 58,966.70 15,573,183.46
(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 RMB65,615,732.80.
(4) Assets unsettled for finished construction contracts at the end of the period
In RMB
Items Amount
Accumulative occurred costs 6,516,738,107.40
Accumulative recognized gross margin 1,351,236,573.89
Less: estimated loss 1,830,742.67
Settled amount 7,672,035,416.31
Assets unsettled for finished construction contracts 194,108,522.31
9. Other current assets
In RMB
Items Closing balance Opening balance
Input tax to be deducted 21,711,044.20 11,083,687.96
Bank financial products 88,000,000.00
Prepaid income tax 4,870,410.15 312,030.09
Other prepaid taxes 26,465,777.76
Total 141,047,232.11 11,395,718.05
10. Long-term share equity investment
In RMB
Change (+,-) Balance
Invested Opening Increased Decrease Investme Other Other Cash Impairme Closing of
entity balance investmen d nt gain miscellan equity dividend nt Others balance impairme
t investmen and loss eous change or profit provision nt
85
Fangda China Group Co., Ltd. 2016Interim Report
t recognize income announce provision
d using adjustmen d at the end
the equity t of the
method period
1. Joint venture
2. Associate
Shenzhen
Ganshang
Joint 8,511,197 -104,832. 8,406,365
Investme .98 11 .87
nt Co.,
Ltd.
Shenzhen
Huihai
Yirong 1,978,482 3,000,000 -294,945. 4,683,537
Internet .95 .00 77 .18
Service
Co., Ltd.
10,489,68 3,000,000 -399,777. 13,089,90
Subtotal
0.93 .00 88 3.05
10,489,68 3,000,000 -399,777. 13,089,90
Total
0.93 .00 88 3.05
11. Investment real estates
(1) Investment real estate measured at costs
√ Applicable □ Inapplicable
Items Houses & buildings Land using right Construction in Total
process
I. Book value
1. Opening balance 37,176,315.46 37,176,315.46
2. Increase in this 969,999.67 969,999.67
period
(1) External 969,999.67 969,999.67
purchase
(2) Transfer-in
from inventory\fixed
assets\construction in
progress
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Fangda China Group Co., Ltd. 2016Interim Report
(3) Increase due to
enterprise merger
3. Decrease in this
period
(1) Purchase
Other transfer-out
4. Closing balance 38,146,315.13 38,146,315.13
II. Accumulative
depreciation and
amortization
1. Opening balance 6,462,722.25 6,462,722.25
2. Increase in this 482,777.20 482,777.20
period
(1) Provision or 482,777.20 482,777.20
amortization
(2) Other
increases
3. Decrease in this
period
(1) Purchase
Other transfer-out
4. Closing balance 6,945,499.45 6,945,499.45
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 31,200,815.68 31,200,815.68
value
2. Opening book 30,713,593.21 30,713,593.21
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Fangda China Group Co., Ltd. 2016Interim Report
value
(2) Investment real estate measured at fair value
√ Applicable □ Inapplicable
In RMB
Items Houses & buildings Land using right Construction in process Total
304,615,212.53 304,615,212.53
I. Opening balance
10,576,793.91
II. Change in this period 11,064,016.38
Add: external
purchase
Transfer-in
from inventory\fixed
assets\construction in
progress
Increase due to
enterprise merger
Less: disposal
Other
transfer-out
10,576,793.91 10,576,793.91
Change in fair value
315,192,006.44 315,192,006.44
III. Closing balance
12. Fixed assets
(1) Fixed assets
In RMB
Houses & Mechanical Transport Electronics and
Items PV power plants Total
buildings equipment equipment other devices
I. Original book
value:
1. Opening 385,847,642.37 11,976,788.22 247,336,323.55 23,991,910.96 61,711,430.90 730,864,096.00
88
Fangda China Group Co., Ltd. 2016Interim Report
balance
2. Increase in
4,754,584.02 119,004,106.84 271,827.99 956,780.42 124,987,299.27
this period
(1) Purchase 4,754,584.02 271,827.99 956,780.42 5,983,192.43
(2)
Transfer-in of
119,004,106.84 119,004,106.84
construction in
progress
(3) Increase
due to enterprise
merger
3. Decrease in
5,261,300.00 3,995,619.57 858,315.98 278,406.21 10,393,641.76
this period
(1) Disposal
5,261,300.00 3,995,619.57 858,315.98 278,406.21 10,393,641.76
or retirement
4. Closing
393,644,815.07 130,980,895.06 235,566,334.99 22,443,141.81 62,822,566.58 845,457,753.51
balance
II. Accumulative
depreciation
1. Opening
44,529,102.62 142,224.36 164,822,823.46 12,742,115.74 29,046,564.97 251,282,831.15
balance
2. Increase in
4,977,656.99 3,075,191.28 1,316,336.72 3,446,364.96 12,815,549.95
this period
(1) Provision 4,977,656.99 3,075,191.28 1,316,336.72 3,446,364.96 12,815,549.95
3. Decrease in
248,046.22 3,500,757.61 712,338.40 179,265.23 4,640,407.46
this period
(1) Disposal
248,046.22 3,500,757.61 712,338.40 179,265.23 4,640,407.46
or retirement
4. Closing
49,258,713.39 142,224.36 164,397,257.13 13,346,114.06 32,313,664.70 259,457,973.64
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
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Fangda China Group Co., Ltd. 2016Interim Report
(1) Disposal
or retirement
4. Closing
277,744.50 16,654,521.84 16,932,266.34
balance
IV. Book value
1. Closing
335,804,468.50 130,838,670.70 62,560,753.00 9,787,480.92 30,076,140.41 569,067,513.53
book value
2. Opening
341,318,539.75 11,834,563.86 82,513,500.09 11,249,795.22 32,664,865.93 479,581,264.85
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 7,104,241.18 277,744.50 39,451,643.13
Others 113,772,312.12 79,420,106.64 15,300,132.34 19,052,073.14
Total 160,605,940.93 86,524,347.82 15,577,876.84 58,503,716.27
(3) Fixed assets without ownership certificate
In RMB
Items Book value Reason
Houses in Urumuqi for offsetting debt 559,555.61 Applying for
Yuehai Office Building C 502 151,900.92 Historical reasons
Shenyang Fangda extension workshop 16,820,962.74 Entering into liquidation
Shenyang Fangda dorm and workshop 2# 7,794,937.64 Entering into liquidation
Dinning hall and power station of
3,745,179.28 Entering into liquidation
Shenyang Fangda
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 817,512.71 817,512.71 816,356.71 816,356.71
90
Fangda China Group Co., Ltd. 2016Interim Report
saving
environmental
protection curtain
wall project
Xuanfeng
20MWp PV
10,257,959.91 10,257,959.91
power plant
project
Xiabu 20MWp
PV power plant 1,703,080.57 1,703,080.57 1,657,715.18 1,657,715.18
project
Isuzu part place
PV power plant 1,093,343.24 1,093,343.24
project
Engineering
project
1,214,622.61 1,214,622.61 761,792.44 761,792.44
management
platform
Dongguan
Songshanhu
531,689.44 531,689.44
showroom No.1
display
Shangbu 18MWp
PV power plant 15,533.98 15,533.98 15,533.98 15,533.98
project
Total 3,750,749.87 3,750,749.87 15,134,390.90 15,134,390.90
(2) Changes in major construction in process in this period
In RMB
Proporti
Includin
Amount on of
g:
transfer-i accumul Accumul
Other capitaliz
Increase n to ative ative Interest
Opening decrease Closing Project ed Capital
Project Budget in this fixed engineeri capitaliz capitaliz
balance in this balance progress interest source
period assets in ng ed ation rate
period for the
this investme interest
current
period nt in the
period
budget
Xuanfen 93,103,1 10,257,9 78,214,7 88,472,7
100% Others
g 00.00 59.91 84.41 44.32
91
Fangda China Group Co., Ltd. 2016Interim Report
20MWp
PV
power
plant
project
Isuzu
part
place PV 30,871,7 1,093,34 29,438,0 30,531,3
100% Others
power 94.87 3.24 19.22 62.46
plant
project
123,974, 11,351,3 107,652, 119,004,
Total -- -- --
894.87 03.15 803.63 106.78
14. Disposal of fixed assets
In RMB
Items Closing balance Opening balance
Mechanical equipment 1,153.28 5,326.79
Total 1,153.28 5,326.79
15. Intangible assets
(1) Intangible assets
In RMB
Unpatented
Items Land using right Patent Others Total
technologies
I. Book value
1. Opening
98,015,399.41 9,397,295.85 24,019,238.42 7,803,625.02 139,235,558.70
balance
2. Increase in
119,932.56 28,072.55 140,493.47 288,498.58
this period
(1) Purchase 119,932.56 24,022.55 140,493.47 284,448.58
(2) Internal
4,050.00 4,050.00
R&D
(3) Increase
due to enterprise
merger
3. Decrease in this
92
Fangda China Group Co., Ltd. 2016Interim Report
period
(1) Purchase
4. Closing
98,135,331.97 9,425,368.40 24,019,238.42 7,944,118.49 139,524,057.28
balance
II. Accumulative
amortization
1. Opening
13,336,868.22 4,429,481.31 16,296,147.25 4,584,215.67 38,646,712.45
balance
2. Increase in
986,262.22 400,554.47 285,994.44 402,723.80 2,075,534.93
this period
(1) Provision 986,262.22 400,554.47 285,994.44 402,723.80 2,075,534.93
3. Decrease in
this period
(1) Purchase
4. Closing
14,323,130.44 4,830,035.78 16,582,141.69 4,986,939.47 40,722,247.38
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
83,812,201.53 4,595,332.62 1,911,232.96 2,957,179.02 93,275,946.13
value
2. Opening
84,678,531.19 4,967,814.54 2,197,227.40 3,219,409.35 95,062,982.48
book value
Intangible asset formed by internal R&D of the period takes up 2.05% in the closing total book value of intangible assets.
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Fangda China Group Co., Ltd. 2016Interim Report
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 14,650,516.21 14,650,516.21
Test process of goodwill impairment, parameters and recognition method of goodwill impairment loss:
1. The Company acquired the 100% control power over Shenzhen Woke Co. by merger of enterprise under common control in
May 2007. The difference between the initial investment cost and recognizable fair value of the investee has formed the
goodwill of RMB8,197,817.29. For Shenzhen Woke was not in good business operation for successive years, impairment
provision has been provided fully upon the goodwill.
2. The Company acquired the 60% 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. A impairment provision of RMB6,452,698.92 is made.
17. Long-term amortizable expenses
In RMB
Increase in this Amortized amount
Items Opening balance Other decrease Closing balance
period in this period
Epoxy floor 796,522.13 81,002.25 715,519.88
Plant and dormitory
596,230.09 187,456.61 408,773.48
decoration
Upgrading of
workshop rented by 202,118.38 20,554.41 181,563.97
Fangda Jianke
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Fangda China Group Co., Ltd. 2016Interim Report
Nanchang Branch
Renovation of office
and plants rented by 1,301.80 1,301.80
Chengdu Fangda
Jinshan factory
renovation of
302,154.50 54,937.08 247,217.42
Fangda Jianke
Shanghai Branch
Expense of
renovation of leased
fixed assets by 222,948.81 55,737.18 167,211.63
Fangda Property
Development
Dongguan separation
233,451.85 38,908.68 194,543.17
project
Upgrading of
workshop rented by 2,494,310.08 879,343.52 1,614,966.56
Fangda SOZN
Anti-junk email
16,506.46 8,253.30 8,253.16
module service fee
Fangda Building
Floor #5 wiring 38,023.68 15,209.52 22,814.16
project
Xuanfeng Chayuan
village and Zhuyuan
1,304,327.46 26,801.28 1,277,526.18
village land transfer
compensation
Membership fee 300,000.00 2,500.02 297,499.98
Others 106,893.64 1,486,408.70 540,137.64 1,053,164.70
Total 6,614,788.88 1,486,408.70 1,912,143.29 6,189,054.29
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 229,329,215.08 39,109,870.85 216,918,204.09 37,575,529.18
95
Fangda China Group Co., Ltd. 2016Interim Report
provision
Unrealized profit of
15,558,720.13 4,434,648.02 23,008,088.13 3,788,898.02
internal transactions
Deductible loss 97,795,450.71 23,837,543.92 85,665,697.71 20,944,182.55
Reserved expense 2,111,203.01 316,680.46 2,153,753.44 323,063.02
Reserved wage 2,064,886.02 309,732.90 3,519,976.72 527,996.51
Deferred earning 2,510,116.35 608,898.43 2,563,904.83 619,823.84
Anticipated liabilities 2,166,815.26 325,022.28 1,921,446.51 288,216.98
Advertisement fee 6,244,187.94 1,561,046.99 3,847,702.76 961,925.69
Adjustment of fair value
5,857,967.87 878,695.18 5,981,164.89 897,174.73
of investment real estate
Total 363,638,562.37 71,382,139.03 345,579,939.08 65,926,810.52
(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
Adjustment of fair value
303,065,860.44 75,766,465.11 291,979,073.34 72,994,768.34
of investment real estate
Valuation of derivative
1,230,425.00 184,563.75
financial tools
Total 304,296,285.44 75,951,028.86 291,979,073.34 72,994,768.34
(3) Details of unrecognized deferred income tax assets
In RMB
Items Closing balance Opening balance
Deductible temporary difference 51,292,862.48 51,201,110.67
Deductible loss 162,801,363.62 151,155,750.92
Total 214,094,226.10 202,356,861.59
(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
2016 19,999,060.04 19,999,060.04
96
Fangda China Group Co., Ltd. 2016Interim Report
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 88,121,922.19
2021 11,645,612.70
Total 162,801,363.62 151,155,750.92 --
Others:
19. Other non-current assets
In RMB
Items Closing balance Opening balance
Prepaid house and equipment amount 83,809,259.92 91,863,898.92
Input tax to be deducted 1,604,951.87 1,640,057.47
Prepayment of intangible assets 760,000.00
Total 86,174,211.79 93,503,956.39
Others:
(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
Loan by pledge 200,000,000.00 200,000,000.00
Guarantee loan 761,000,000.00 943,000,000.00
Discount borrowing of commercial
4,957,775.82
acceptance bills
Total 961,000,000.00 1,147,957,775.82
21. Notes payable
In RMB
Type Closing balance Opening balance
97
Fangda China Group Co., Ltd. 2016Interim Report
Commercial acceptance 115,490,458.81 78,934,714.94
Bank acceptance 342,341,859.69 224,592,924.69
Total 457,832,318.50 303,527,639.63
The total amount of payable bills that have matured but not been paid at the end of the period is RMB0.
22. Account payable
(1) Account payable
In RMB
Items Closing balance Opening balance
Account repayable and engineering
705,256,603.13 611,292,302.23
repayables
Construction payable 18,730,175.84 27,529,577.05
Payable installation and implementation
190,095,782.65 225,793,206.11
fees
Others 5,701,566.50 3,013,270.26
Total 919,784,128.12 867,628,355.65
(2) Significant payables aging more than 1 year
In RMB
Items Closing balance Reason
Shenyang Fangda plant construction Due from Shenzhen Fangda, unable to
3,819,140.02
payment repay
Chip payment 8,715,326.30 Due from Fangda SOZN, unable to repay
Total 12,534,466.32 --
23. Prepayment received
(1) Prepayment received
In RMB
Items Closing balance Opening balance
Curtain wall and screen door engineering
104,922,422.68 123,894,561.69
payment
Material loan 3,116,855.97 5,515,676.69
House prepayment 623,961,604.55
Others 3,299,945.58 1,164,081.47
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Fangda China Group Co., Ltd. 2016Interim Report
Total 735,300,828.78 130,574,319.85
24. Employees’ wage payable
1. Employees’ wage payable
In RMB
Items Opening balance Increase Decrease Closing balance
1. Short-term
40,805,685.65 106,227,192.41 127,454,959.76 19,577,918.30
remuneration
2. Retirement pension
program-defined 6,742.40 6,890,359.49 6,881,412.36 15,689.53
contribution plan
3. Dismiss compensation 130,000.00 850,070.27 980,070.27
Total 40,942,428.05 113,967,622.17 135,316,442.39 19,593,607.83
(2) Short-term remuneration
In RMB
Items Opening balance Increase Decrease Closing balance
1. Wage, bonus,
38,628,120.07 98,563,545.18 119,776,860.94 17,414,804.31
allowance and subsidies
2. Employee welfare 0.00 2,058,455.48 2,058,455.48
3. Social insurance 68,025.52 2,417,609.67 2,419,026.47 66,608.72
Including:
68,025.52 2,053,016.07 2,054,432.87 66,608.72
medical insurance
Labor injury
164,653.08 164,653.08
insurance
Breeding
199,940.52 199,940.52
insurance
4. Housing fund 97,082.00 2,854,011.40 2,838,114.40 112,979.00
5. Labor union budget
2,012,458.06 333,570.68 362,502.47 1,983,526.27
and staff education fund
Total 40,805,685.65 106,227,192.41 127,454,959.76 19,577,918.30
(3) Defined contribution plan
In RMB
Items Opening balance Increase Decrease Closing balance
99
Fangda China Group Co., Ltd. 2016Interim Report
1. Basic pension 6,742.40 6,579,025.38 6,570,078.25 15,689.53
2. Unemployment
311,334.11 311,334.11
insurance
Total 6,742.40 6,890,359.49 6,881,412.36 15,689.53
25. Taxes payable
In RMB
Items Closing balance Opening balance
VAT 10,429,240.49 6,981,753.65
Business tax 23,869,784.36 32,136,293.62
Enterprise income tax 9,442,084.92 16,555,365.28
Personal income tax 1,554,788.06 1,201,365.12
City maintenance and construction tax 1,789,466.13 2,824,794.21
Land using tax 3,953,279.71 3,683,884.01
Property tax 2,339,317.11 2,083,844.87
Education surtax 855,638.08 1,315,453.14
Local education surtax 179,414.56 489,642.89
Others 178,318.90 261,036.91
Total 54,591,332.32 67,533,433.70
26. Interest payable
In RMB
Items Closing balance Opening balance
Long-term borrowing with interest
installment and repayment of principal 1,434,256.99 510,166.05
upon maturity
Short-term borrowing interests payable 1,155,323.60 2,578,476.91
Others 141,315.20 153,091.47
Total 2,730,895.79 3,241,834.43
27. Dividend payable
In RMB
Items Closing balance Opening balance
100
Fangda China Group Co., Ltd. 2016Interim Report
28. Other payables
(1) Other payables presented by nature
In RMB
Items Closing balance Opening balance
Performance and quality deposit 22,760,051.98 21,697,760.34
Deposit 8,503,587.69 9,027,418.36
Reserved expense 12,434,071.93 11,714,478.57
Fangda Town pledge 1,200,000.00 2,900,000.00
Lawsuit indemnity 23,456,765.40
Others 18,303,214.09 13,880,924.14
Total 63,200,925.69 82,677,346.81
29. Other current liabilities
In RMB
Items Closing balance Opening balance
Loan financing of precious metal 98,425,600.00 98,425,600.00
Total 98,425,600.00 98,425,600.00
Others:
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 486,524,108.36 300,395,582.06
Total 486,524,108.36 300,395,582.06
Notes to classification of long-term borrowings:
The above-mentioned borrowing is the 100% stock pledging of Fangda Property Development held by the
Company. The interest rate is between 5.39-6.785%.
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31. Anticipated liabilities
In RMB
Items Closing balance Opening balance Reason
Others 2,166,815.26 1,921,446.51
Total 2,166,815.26 1,921,446.51 --
32. Deferred earning
In RMB
Items Opening balance Increase Decrease Closing balance Reason
Government subsidy 12,284,195.68 683,400.00 333,292.03 12,634,303.65
Total 12,284,195.68 683,400.00 333,292.03 12,634,303.65 --
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
1,852,381.10 28,571.40 1,823,809.70 Assets-related
Development
Division of
Dongguan
Finance Bureau
Massive
production
project of
air-breathing
7,765,817.51 61,993.62 7,703,823.89 Assets-related
double-layer
hollow glass
energy-saving
curtain call
Railway transport
screen door
controlling
211,523.73 25,217.08 186,306.65 Assets-related
system and
information
transmission
102
Fangda China Group Co., Ltd. 2016Interim Report
technology
Nanshan District
mic-business loan 500,000.00 500,000.00 Assets-related
discount
Fangda
Songshanhu
Industrial Park
500,000.00 18,749.97 481,250.03 Assets-related
project Dongguan
government
subsidy
Subsidy for
purchase of
scientific
achievements or 80,141.67 8,149.98 71,991.69 Assets-related
technologically
innovative
services
LED production
expansion
technology 1,874,331.67 190,609.98 1,683,721.69 Assets-related
renovation
project
Others 183,400.00 183,400.00 Assets-related
Total 12,284,195.68 683,400.00 333,292.03 12,634,303.65 --
33. 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
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)
103
Fangda China Group Co., Ltd. 2016Interim Report
Other capital reserves 40,861,396.66 94.24 40,861,490.90
Total 79,099,619.14 94.24 79,099,713.38
Other note, including explanation about the reason of the change:
The other capital reserves increased by RMB94.24 million, which is the historical dividend refunded by the Shenzhen branch of
China Securities Depository and Clearing Company Limited.
35. Other miscellaneous income
In RMB
Amount occurred in the current period
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 1,230,425.0 1,045,861.2 1,137,692
91,831.63 184,563.75
re-classified into gain and loss 0 5 .88
Effective part in the gain and 1,230,425.0 1,045,861.2 1,045,861
184,563.75
loss of arbitrage of cash flow 0 5 .25
Investment real estate measured at
91,831.63 91,831.63
fair value
1,230,425.0 1,045,861.2 1,137,692
Other miscellaneous income 91,831.63 184,563.75
0 5 .88
36. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
51,123,554.51 51,123,554.51
reserves
Total 51,123,554.51 51,123,554.51
37. Retained profit
In RMB
Items Current period Last period
Adjustment on retained profit of previous period 432,271,424.56 349,987,825.69
Retained profit adjusted at beginning of year 432,271,424.56 349,987,825.69
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Fangda China Group Co., Ltd. 2016Interim Report
Plus: Net profit attributable to owners of the
53,156,405.36 51,317,648.87
parent
Common share dividend payable 75,690,990.50 22,707,297.15
Closing retained profit 409,736,839.42 378,598,177.41
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 985,562,292.82 818,328,044.96 1,125,911,242.60 929,839,206.78
Other businesses 23,893,756.93 12,979,574.65 24,204,280.93 10,648,051.57
Total 1,009,456,049.75 831,307,619.61 1,150,115,523.53 940,487,258.35
39. Business tax and surcharge
In RMB
Items Amount occurred in the current period Occurred in previous period
Business tax 1,138,974.07 12,833,597.88
City maintenance and construction tax 2,637,029.89 2,258,805.32
Education surtax 1,233,551.35 1,270,438.38
Property tax 520,660.84 526,006.30
Land using tax 70,486.84 57,620.36
Others 757,025.13 590,771.98
Total 6,357,728.12 17,537,240.22
40. Sales expense
In RMB
Items Amount occurred in the current period Occurred in previous period
Labor costs 10,595,121.39 13,506,452.55
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Freight and miscellaneous charges 3,223,019.97 2,740,685.79
Advertisement and exhibition costs 3,075,896.31 15,659,054.69
Travel expense 2,145,274.48 2,407,002.17
Others 6,377,990.69 6,695,942.26
Total 25,417,302.84 41,009,137.46
41. Management expenses
In RMB
Items Amount occurred in the current period Occurred in previous period
Label cost (including wage and social
35,734,018.99 40,048,984.25
security)
Depreciation and amortization 10,006,510.02 9,985,147.56
R&D 7,486,513.39 6,455,972.94
Tax 3,282,834.40 3,281,464.87
Others 17,290,875.22 15,775,742.02
Total 73,800,752.02 75,547,311.64
42. Financial expenses
In RMB
Items Amount occurred in the current period Occurred in previous period
Interest expense 21,187,915.60 25,095,306.66
Less: Interest income 2,980,732.93 1,250,108.37
Exchange gain/loss -1,074,524.76 62,155.37
Commission charges and others 455,196.65 1,702,381.01
Total 17,587,854.56 25,609,734.67
43. Assets impairment loss
In RMB
Items Amount occurred in the current period Occurred in previous period
1. Bad debt loss 10,347,572.61 14,372,081.89
Total 10,347,572.61 14,372,081.89
44. Income from fair value fluctuation
In RMB
106
Fangda China Group Co., Ltd. 2016Interim Report
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 -413,383.46 2,676,854.00
income account
Investment real estate measured at fair
10,576,793.91 32,768,907.31
value
Total 10,163,410.45 35,445,761.31
45. Investment income
In RMB
Items Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-399,777.88 1,256,994.94
measured by equity
Others 109,920.54 291,002.74
Total -289,857.34 1,547,997.68
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
68,572.07 50,854.12 68,572.07
non-current assets
Including: Gains from disposal
68,572.07 50,854.12 68,572.07
of fixed assets
Government subsidy 1,545,204.08 630,651.51 1,545,204.08
Penalty income 68,946.51 464,547.87 68,946.51
Penalty received 102,105.47 101,682.46 102,105.47
VAT rebated into revenue 1,155,945.30 1,211,179.56 1,155,945.30
Payable account not able to be
241,152.78 116,834.08 241,152.78
paid
Others 3,181,802.95 850,174.85 3,181,802.95
Total 6,363,729.16 3,425,924.45 6,363,729.16
Government subsidies accounted into current profit or loss:
In RMB
Item Issuer Reason Nature Whether Whether it is Amount Occurred in Related to
107
Fangda China Group Co., Ltd. 2016Interim Report
affecting gain a special occurred in previous assets/earnin
and loss in subsidy the current period g
this year period
IT Shenzhen
Earning-relat
development SME Service Subsidy No No 470,000.00
ed
subsidy Center
Bureau of
Exhibition Earning-relat
Foreign Subsidy No No 105,700.00
subsidy ed
Trade
Subsidy for
Shenzhen
research
Scientific and Science and
development, Earning-relat
technology Technology Award No No 200,000.00
technology ed
prize Innovation
upgrade and
Committee
improvement
Subsidy for
Shenzhen
research
Market and
Patent development, Earning-relat
Quality Subsidy No No 4,000.00
subsidy technology ed
Supervision
upgrade and
Commission
improvement
Railway
transport Subsidy for
screen door Shenzhen research
controlling Technology development, Assets-relate
No No 25,217.08 19,155.96
system and Innovation technology d
information Committee upgrade and
transmission improvement
technology
Significant
industrial and
Trade and
trade Assets-relate
Industry Award No No 28,571.40 28,571.40
development d
Bureau
investment
project award
Self-breathin
g dual-layer
Guangdong
hallow grass
Development Assets-relate
energy-savin Subsidy No No 61,993.62 59,924.15
and Reform d
g curtain wall
Commission
development
project
108
Fangda China Group Co., Ltd. 2016Interim Report
Social
Childbearing Earning-relat
Security Subsidy No No 9,362.99
subsidy ed
Bureau
Subsidy for
Zhongshan research
Technically
Economy and development, Earning-relat
improvement Subsidy No 330,000.00
Information technology ed
subsidy
Bureau upgrade and
improvement
LED
production
expansion, Subsidy for
technical Zhongshan research
improvement Reform and development, Assets-relate
Subsidy No No 204,759.96
and Development technology d
technological Bureau upgrade and
ly innovative improvement
service
subsidy
VAT, income Earning-relat
Tax Bureau Subsidy No No 86,849.06 23,000.00
tax refund ed
Guangdong
PV power Development Assets-relate
Subsidy No No 18,749.97
plant subsidy and Reform d
Commission
Nanshan
Economy
District
Promotion Subsidy No No 500,000.00
mic-business
Bureau
loan discount
Total -- -- -- -- -- 1,545,204.08 630,651.51 --
Others:
The others are mainly waste sales income.
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
2,453,627.28 504,805.05
non-current assets
Including: Losses from disposal 2,453,627.28 502,872.97
109
Fangda China Group Co., Ltd. 2016Interim Report
of fixed assets
Intangible asset disposal
1,932.08
loss
Donation 29,000.00 103,000.00
Lawsuit indemnity 0.00 14,921,737.67
Others 861,918.15 113,589.07
Total 3,344,545.43 15,643,131.79
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 11,587,965.22 11,562,638.82
Deferred income tax expenses -2,686,269.81 4,605,557.22
Total 8,901,695.41 16,168,196.04
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount occurred in the current period
Total profit 57,529,956.83
Income tax expenses calculated based on the legal (or applicable)
14,382,489.21
tax rates
Impacts of different tax rates applicable for some subsidiaries -8,078,252.11
Impacts of income tax before adjustment -336,446.43
Impact of non-taxable income 1,986,579.05
Impacts of non-deductible cost, expense and loss 622,793.86
Impacts of using deductible loss of unrecognized deferred
700,105.30
income tax assets
Deductable temporary difference and deductable loss of
99,944.47
unrecognized deferred income tax assets
Others -203,577.75
Income tax expenses 8,901,695.41
110
Fangda China Group Co., Ltd. 2016Interim Report
49. Other miscellaneous income
See Note VII 35
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 2,540,342.54 1,250,108.37
Subsidy income 1,429,421.98 523,000.00
Retrieving of deposits for exchange bills 3,814,291.12 0.00
Bidding deposit and pledge 46,131,969.36 28,156,441.69
Others 7,114,288.38 7,342,275.28
Total 61,030,313.38 37,271,825.34
(2) Other cash paid related to operation
In RMB
Items Amount occurred in the current period Occurred in previous period
Management costs paid 14,048,584.70 12,048,739.54
Sales costs paid 7,262,362.08 6,609,184.84
Deposit and pledge paid 54,017,213.61 43,444,113.34
Personal borrowing 3,451,294.08 2,038,161.79
Net draft deposit net paid 2,733,131.88
Others 9,357,452.43 9,300,935.99
Total 88,136,906.90 76,174,267.38
(3) Other cash paid related to investment activities
In RMB
Items Amount occurred in the current period Occurred in previous period
Bidding deposit paid related to
1,150,000.00 40,117,900.00
construction projects
Total 1,150,000.00 40,117,900.00
111
Fangda China Group Co., Ltd. 2016Interim Report
(4) Other cash received related to financing
In RMB
Items Amount occurred in the current period Occurred in previous period
Fractional dividend 31.03
Total 31.03
(5) Other cash paid related to financing
In RMB
Items Amount occurred in the current period Occurred in previous period
Share issuance fee 641,119.57 1,171,039.70
Net draft deposit net paid 53,500,000.00
Others 439,000.00
Total 641,119.57 55,110,039.70
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 48,628,261.42 44,161,114.91
Plus: Asset impairment provision 10,347,572.61 14,372,081.89
Fixed asset depreciation, gas and petrol
12,815,549.95 14,617,490.88
depreciation, production goods depreciation
Amortization of intangible assets 1,973,088.31 2,117,084.77
Amortization of long-term amortizable
1,912,143.29 765,415.35
expenses
Loss from disposal of fixed assets, intangible
assets, and other long-term assets (“-“ for 2,385,055.21 453,950.93
gains)
Loss from fair value fluctuation (“-“ for
-10,163,410.45 -35,445,761.31
gains)
Financial expenses (“-“ for gains) 20,113,390.84 25,157,462.03
Investment losses (“-“ for gains) 289,857.34 -1,547,997.68
112
Fangda China Group Co., Ltd. 2016Interim Report
Decrease of deferred income tax asset
-5,455,328.51 -4,349,309.65
(“-“ for increase)
Increase of deferred income tax asset (“-“ for
2,956,260.52 8,350,524.37
increase)
Decrease of inventory (“-“ for increase) -271,168,255.93 -61,425,337.33
Decrease of operational receivable items
-153,629,463.47 -322,021,976.29
(“-“ for increase)
Increase of operational receivable items
637,464,622.79 37,350,054.06
(“-“ for decrease)
Others 2,733,131.88
Cash flow generated by business operations,
298,469,343.92 -274,712,071.19
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 367,564,230.41 212,370,926.94
Less: Initial balance of cash 247,739,243.78 102,638,232.19
Net increase in cash and cash equivalents 119,824,986.63 109,732,694.75
(2) Composition of cash and cash equivalents
In RMB
Items Closing balance Opening balance
I. Cash 367,564,230.41 247,739,243.78
Including: Cash in stock 18,968.85 28,072.46
Bank savings can be used at any time 361,326,250.00 242,777,612.25
Other monetary capital can be used at
6,219,011.56 4,933,559.07
any time
3. Balance of cash and cash equivalents at
367,564,230.41 247,739,243.78
end of term
52. Ownership- or use-right-restricted assets
In RMB
Items Closing book value Reason
Monetary capital 126,399,802.42 Frozen deposit and pledge
Fixed assets 65,268,757.56 Borrowing pledge or freezen by a court
Investment real estate 296,740,660.60 Loan by pledge
113
Fangda China Group Co., Ltd. 2016Interim Report
100% stake in Fangda Property
200,000,000.00 Loan by pledge
Development held by the Company
Total 688,409,220.58 --
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 386,074.11 6.63 2,560,134.64
Euro
HK Dollar 3,836,226.00 0.85 3,278,707.28
SGD 418,485.22 4.92 2,060,579.37
Account receivable -- -- 27,924,253.95
Including: USD 4,211,040.83 6.63 27,924,253.95
Euro
HK Dollar 2,039,722.10 0.85 1,743,350.48
SGD 1,388,025.00 4.92 6,834,496.30
(2) The note of overseas operating entities should include the main operation places, book keeping
currencies and selection basis. Where the book keeping currency is changed, the reason should also be
explained.
□ Applicable √ Inapplicable
54. Hedging
Hedging items and related tools, qualitative and quantitative information about hedging risks:
VIII. Change to Consolidation Scope
1. Disposal of subsidiaries
Single disposal of a subsidiary that may lead to loss of control
□ Yes √ No
Disposal of a subsidiary in multiple steps that lead to loss of control in the report period
□ Yes √ No
114
Fangda China Group Co., Ltd. 2016Interim Report
2. Change to the consolidation scope for other reasons
Change in the consolidation scope due to other reasons (such as new subsidiaries and liquidation of subsidiaries) and the situations:
Fangda Automation (Hong Kong) Co., Ltd. indirectly controlled by the Company was set up in the report period.
Sub-subsidiary Ganzhou Longneng New Energy Co, Ltd. was cancelled in the report period.
IX. Equity in Other Entities
1. Interests in subsidiaries
(1) Group Composition
Registered Shareholding percentage
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
Prodution and
sales of new-type
materialsm
Fangda New
Nanchang Nanchang composite 75.00% 25.00% Incorporation
Material
materials and
production of
curtain walls
Design,
production, sales
Fangda and installation of
Nanchang Nanchang 99.00% 1.00% Incorporation
Aluminium aluminium
materials, doors
and windows
Manufacturing of
semiconductor
lighting material
Shenyang Fangda Shenyang Shenyang 64.58% Incorporation
and chips;
lighting source
encapsulation;
115
Fangda China Group Co., Ltd. 2016Interim Report
developing,
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
Virgin Islands Virgin Islands Investment 100.00% Incorporation
International
Installation and
Dongguan New
Dongguan Dongguan sales of building 100.00% Incorporation
Material
curtain walls
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.
116
Fangda China Group Co., Ltd. 2016Interim Report
Jiangxi Fangda
Real estate
Property
Nanchang Nanchang development and 100.00% Incorporation
Development Co.,
operation
Ltd.
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
Kechuangyuan Software
Shenzhen Shenzhen 100.00% Incorporation
Software development
Production,
Fangda
processing and
Automation
Hong Kong Hong Kong installation of 100.00% Incorporation
(Hong Kong) Co.,
subway screen
Ltd.
doors
(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% -989,388.91 48,742,421.75
Fangda SOZN 40.00% -3,538,076.60 -35,729,232.29
(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 of Current Total Current Total of Current Total
y ent ent ent ent
asset assets liabilities liabilities asset assets liabilities liabilities
assets liabilities assets liabilities
117
Fangda China Group Co., Ltd. 2016Interim Report
Shenyan 3,101,16 94,937,3 98,038,5 19,471,0 19,471,0 11,015,3 96,973,8 107,989, 26,628,4 26,628,4
g Fangda 1.81 48.17 09.98 74.20 74.20 01.41 89.70 191.11 49.55 49.55
Fangda 68,356,2 15,112,4 83,468,6 170,852, 1,939,11 172,791, 86,090,1 17,680,8 103,771, 182,294, 1,954,47 184,248,
SOZN 40.15 18.29 58.44 625.78 3.38 739.16 53.63 88.58 042.21 458.10 3.34 931.44
In RMB
Amount occurred in the current period Occurred in previous period
Business Business
Company Total of misc. Total of misc.
Turnover Net profit operation Turnover Net profit operation
incomes incomes
cash flows cash flows
Shenyang
-2,793,305.78 -3,804,615.87 -3,804,615.87 -170,718.69
Fangda
Fangda 13,173,050.1 20,058,880.5 110,671,469. -14,522,347.5 -14,522,347.5
-8,845,191.49 -2,458,543.39
SOZN 4 9 13 5 5
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
Joint venture: -- --
Total shareholding -- --
Associate: -- --
Total book value of investment 13,089,903.05 10,489,680.93
Total shareholding -- --
Net profit -399,777.88 -358,979.50
Total of misc. incomes -399,777.88 -358,979.50
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 financial risks’ impacts on the Group’s
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Fangda China Group Co., Ltd. 2016Interim Report
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 the Group’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 the Group’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.
The Group’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 monitors debtors’ credit record. For those with poor credit 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 the Group’s receivables, accounts receivable from top 5 customers account for 11.50% of the total accounts receivable
(2015: 12.92%); among other receivables, other receivables from top 5 customers account for 23.10% of the total other receivables
(2014: 19.64%).
(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 June 30, 2016, bank loan credit that
the Group has not used was RMB2.29 billion (December 31, 2015: RMB2.49).
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 96,100.00 96,100.00
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Notes payable 45,783.23 45,783.23
Account payable 83,448.18 8,530.23 91,978.41
Interest payable
273.09 273.09
Other payables 6,320.09 6,320.09
Other current liabilities 9,842.56 9,842.56
Long-term loans 48,652.41 48,652.41
Total liabilities 241,767.16 8,530.23 48,652.41 298,949.80
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 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
(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 rawtes.
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.
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On June 30, 2016, if the interest rate of borrowings calculated on based on floating interest rate is 50 base points up or down,
while other factors remain the same, there will be no impact on the Group's net profit and shareholders' interests.
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 the Group’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 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 the Company’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
The Group’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, the Group’s assets/liability
ratio is 74.83% (31.12.15: 70.12%).
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 14,132,823.12 14,132,823.12
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Fangda China Group Co., Ltd. 2016Interim Report
tools
3. Derivative financial
1,230,425.00 1,230,425.00
assets
(3) Investment real estate 315,192,006.44 315,192,006.44
2. Leased building 315,192,006.44 315,192,006.44
Total assets measured at
15,363,248.12 315,192,006.44 330,555,254.56
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;
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. 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 6.51% 6.51%
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Fangda China Group Co., Ltd. 2016Interim Report
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 holding 85% of the shares, and Mr. Xiong Xi – son of Mr. Xiong
Jianming, is holding 15% 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.
The final controller of the Company is Xiong Jianming.
2. Subsidiaries of the Company
See Note IX. 1.
3. Joint ventures and associates
See Note XI, 2 for details of significant joint ventures and associates of the Company.
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
4. Other associates
Other related parties Relationship with the Company
Directors, manager, CFO and secretary of the Board of Directors Key management
5. Related transactions
(1) Related leasing
The Company is the leasor:
In RMB
Name of the leasee Category of asset for lease Rental recognized in the period Rental recognized in the period
Shenzhen Ganshang Joint
Houses & buildings 61,252.86 64,455.14
Investment Co., Ltd.
Note to related leasing
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Fangda China Group Co., Ltd. 2016Interim Report
(2) Remuneration of key management
In RMB
Items Amount occurred in the current period Occurred in previous period
Wage, remuneration and subsidy 2,565,850.00 2,535,415.00
XIII. Contingent events
1. Contingencies
(1) Significant contingencies on the balance sheet date
Contingent liabilities formed by material lawsuit or arbitration, and their influences on the financial position
In June 2015, Fangda Jianke filed a lawsuit against Wang Weihong, requiring an indemnity of RMB23 million and defreezing
of the amount RMB23 million by the bank. By the report date, the lawsuit remain pending.
In 2013, Fangda Jianke filed a lawsuit to Shenyang Middle People’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) Significant contingent events that do not need to be disclosed should be explained
No such significant contingent event
XIV. Post-balance-sheet events
1. Major non-adjustment event
In RMB
Influence on the financial
Reason for not able to estimate
Items Description position and business
the influence
performance
A total 32,184,931 shares will
be issued at the issuance price
of RMB14. 60/share. The
issuance will raise a total
Stock and bond issuance RMB469,899,992.60. After 459,869,219.88
the issuance cost of
RMB10,030,772.72 is
deducted, the net income will
be RMB459,869,219.88.
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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
0.00 -2,829,576.90 -2,800,421.21 -2,800,421.21
operations
Other note
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 the Shareholders’ 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.
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. The Group’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;
(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
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Fangda China Group Co., Ltd. 2016Interim Report
Offset between
Items Curtain wall Rail transport Real estate New energy Others Total
segments
1,009,456,049.
Turnover 821,940,132.72 165,186,777.29 0.00 14,599,260.08 14,499,890.63 6,770,010.97
75
Major business
815,228,244.25 164,147,627.29 0.00 8,800,642.45 2,614,221.17 985,562,292.82
turnover
Operation cost 685,876,861.72 129,034,411.84 0.00 18,070,248.52 1,019,406.36 2,693,308.83 831,307,619.61
Main business
681,819,443.88 128,804,002.92 0.00 10,397,906.99 2,693,308.93 818,328,044.86
cost
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
Recognition and
23,572.4 356,660
providing of bad debt 100.00% 707.17 3.00% 22,865.24 100.00% 10,699.82 3.00% 345,960.74
1 .56
provisions on groups
23,572.4 356,660
Total 707.17 22,865.24 10,699.82 345,960.74
1 .56
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
Less than 1 year 23,572.41 707.17 3.00%
Total 23,572.41 707.17
Group recognition basis:
Account receivable adopting the balance percentage method in the group
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Fangda China Group Co., Ltd. 2016Interim Report
□ 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-9,992.65 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 RMB23,572.41, accounting for 100% of the total
remaining balance of all accounts receivable. The bad debt provision made at the end of the period is RMB707.17.
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 57,108, 40,452,12 16,656,292.
amount and bad debt 70.83% 13.71% 70.83%
20.31 27.75 2.56 420.31 7.75 56
provision provided
individually
(2) Recognition and
451,532, 568,290. 450,964,3 359,478 543,116.2 358,935,05
providing of bad debt 100.00% 0.12% 86.29% 0.15%
599.16 41 08.75 ,173.41 1 7.20
provisions on groups
508,641, 41,020,4 467,620,6 416,586 40,995,24 375,591,34
Total
019.47 18.16 01.31 ,593.72 3.96 9.76
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:
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Fangda China Group Co., Ltd. 2016Interim Report
√ Applicable □ Inapplicable
In RMB
Closing balance
Age
Other receivables Bad debt provision Provision rate
Sub-item of within 1 year
Less than 1 year
Subtotal for less than 1 year 1,060,610.97 28,166.70 2.66%
1-2 years 2,219.35 221.94 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 2,150,633.86 568,290.41
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 RMB25,174.20 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 506,490,385.61 415,397,754.23
Other trades 2,150,633.86 1,188,839.49
Total 508,641,019.47 416,586,593.72
(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
Fangda Jianke Associate accounts 229,675,515.85 Less than 1 year 45.15%
Fangda Property Associate accounts 133,239,091.91 Less than 1 year 26.20%
Fangda SOZN Associate accounts 57,108,420.31 1-2 years 11.23% 40,452,127.75
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Fangda China Group Co., Ltd. 2016Interim Report
Fangda Automatic Associate accounts 34,470,569.96 Less than 1 year 6.78%
Shihui International Associate accounts 30,459,793.09 1-2 years 5.99%
Total -- 484,953,391.12 -- 95.34% 40,452,127.75
3. Long-term share equity investment
In RMB
Closing balance Opening balance
Items Remaining book Impairment Remaining book Impairment
Book value Book value
value provision value provision
Investment in
1,013,991,568.20 56,780,600.00 957,210,968.20 1,013,991,568.20 56,780,600.00 957,210,968.20
subsidiaries
Investment in
associates and 13,089,903.05 13,089,903.05 10,489,680.93 10,489,680.93
joint ventures
Total 1,027,081,471.25 56,780,600.00 970,300,871.25 1,024,481,249.13 56,780,600.00 967,700,649.13
(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
Fangda Automatic 18,831,241.35 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 36,980,600.00
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 1,013,991,568.20 1,013,991,568.20 56,780,600.00
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Fangda China Group Co., Ltd. 2016Interim Report
(2) Investment in associates and joint ventures
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 8,511,197 -104,832. 8,406,365
Investme .98 11 .87
nt Co.,
Ltd.
Shenzhen
Huihai
Yirong 1,978,482 3,000,000 -294,945. 4,683,537
Internet .95 .00 77 .18
Service
Co., Ltd.
10,489,68 3,000,000 -399,777. 13,089,90
Subtotal
0.93 .00 88 3.05
10,489,68 3,000,000 -399,777. 13,089,90
Total
0.93 .00 88 3.05
4. Operational revenue and costs
In RMB
Amount occurred in the current period Occurred in previous period
Items
Income Cost Income Cost
Other businesses 14,499,890.63 1,019,406.36 15,377,309.73 1,670,215.88
Total 14,499,890.63 1,019,406.36 15,377,309.73 1,670,215.88
5. Investment income
In RMB
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Fangda China Group Co., Ltd. 2016Interim Report
Items Amount occurred in the current period Occurred in previous period
Gains from long-term equity investment
-399,777.88 1,256,994.94
measured by equity
Other investment gains 5,424.66 55,961.64
Total -394,353.22 1,312,956.58
XVII. Supplementary Materials
1. Detailed accidental gain/loss
√ Applicable □ Inapplicable
In RMB
Items Amount Notes
Gain/loss of non-current assets -2,385,055.21
Subsidies accounted into the current income
account (except the government subsidy
closely related to the enterprise’s business 1,545,204.08
and based on unified national standard
quota)
Gain from entrusted investment or assets
109,920.54
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 -413,383.46
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 10,576,793.91
in follow-up measurement
Other non-business income and expenditures
2,703,089.56
other than the above
Less: Influenced amount of income tax 3,297,963.39
Influenced amount of minority
-52,709.76
shareholders’ equity
Total 8,891,315.79 --
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.
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Fangda China Group Co., Ltd. 2016Interim 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
3.99% 0.07 0.07
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
3.32% 0.06 0.06
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
53,156,405.36 51,317,648.87 1,298,007,705.19 1,319,496,334.84
standards
Items and amounts adjusted according International Accounting Standards:
On international
53,156,405.36 51,317,648.87 1,302,771,103.43 1,324,259,733.08
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 listed company’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.
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Fangda China Group Co., Ltd. 2016Interim Report
X Documents for Reference
1. The Interim Report 2016 and the Summary with signature of the legal representative (Chinese and English);
2. Financial statements stamped and signed by the legal representative, CFO and accounting manager;
3. 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.
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