方 大Ｂ：半财务报告（英文版）

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1、方大集团股份有限公司CHINA FANGDA GROUP CO., LTD.Interim Financial Report 20111ItemsBalance SheetPrepared by: China Fangda Group Co., Ltd.June 30th 2011in RMB yuanBalance at the end of term Balance at the beginning of yearConsolidated Parent company Consolidated Parent companyCurrent asset:Monetary capitalSett

2、lement provisionOutgoing call loanTransactional financial assetsNotes receivable442,490,831.451,550,000.0034,284,968.42 506,295,863.70 30,547,718.9116,491,007.92Account receivablePrepayment492,830,911.5334,525,862.836,195,719.35 396,673,564.76250,000.00 20,266,020.057,917,726.90366,736.00Insurance r

3、eceivableReinsurance receivableProvisions of Reinsurancecontracts receivableInterest receivableDividend receivableOther account receivableRepurchasing of financial assetsInventoriesNon-current asset due in 1 yearOther current asset1,138,888.8826,936,500.0051,503,441.54 209,634,878.63248,191,919.7251

4、,300.0043,936,500.0039,235,264.87 200,454,969.75280,285,486.41Total of current assetNon-current assetsDisburse of consigned loans1,272,231,855.95 277,302,066.40 1,259,298,507.71 283,223,651.56Available-for-sale financial asset4,312,000.004,312,000.004,347,000.004,347,000.00Expired investment in poss

5、essLong-term receivableLong-term share equityinvestment658,733,745.58658,733,745.58Investment properties274,539,465.81 265,380,365.81 271,226,332.73 262,602,432.73Fixed assets304,929,329.3457,877,748.34 240,554,714.5256,934,198.94Construction in process26,674,644.8687,378.6456,762,380.6487,378.64Eng

6、ineering goodsFixed asset disposalProduction physical assetsGas & petrol1,442,705.89586,285.67Intangible assetsR&D expenseGoodwillLong-term amortizable expensesDeferred income tax asset112,597,828.53905,133.308,197,817.292,860,664.6531,457,030.1710,143,092.4015,029,610.93114,530,578.151,182,970.288,

7、197,817.293,062,071.6531,412,500.2010,323,163.7215,161,997.10Other non-current assetTotal of non-current assetsTotal of assetsCurrent liabilities767,916,619.84 1,011,563,941.70 731,862,651.13 1,008,189,916.712,040,148,475.79 1,288,866,008.10 1,991,161,158.84 1,291,413,568.27Short-term loans383,000,0

8、00.00 200,000,000.00 397,000,000.00 200,000,000.00Loan from Central BankDeposit received and hold forothers2Call loan receivedTrade off financial liabilitiesNotes payable41,652,568.7760,226,018.65Account payablePrepayment received264,658,302.2090,207,461.251,851,490.36 296,531,749.82693,045.60 48,30

9、8,874.471,901,490.41715,925.50Selling of repurchased financialassetsFees and commissions receivableEmployees wage payableTax payableInterest payable11,043,615.2926,999,435.45548,793.05406,934.91885,778.96280,250.0014,047,721.0021,520,643.71610,850.84881,767.40930,370.30308,275.00Dividend payableOthe

10、r account payable48,298,812.2061,967,412.5925,384,587.9170,841,835.18Reinsurance fee payableInsurance contract provisionEntrusted trading of securitiesEntrusted selling of securitiesNon-current liability due in 1yearOther current liabilityTotal of current liability866,408,988.21 266,084,912.42 863,6

11、30,446.40 275,579,663.79Non-current liabilitiesLong-term borrowingsBond payableLong-term payableSpecial payableExpectible liabilities883,881.35347,657.52Deferred income tax liability29,869,048.7229,351,087.5728,289,997.60 27,852,316.45Other non-recurring liabilitiesTotal of non-current liabilitiesTo

12、tal of liabilityOwners equity (or shareholdersequity)Capital paid in (or share capital)Capital reservesLess: Shares in stockSpecial reserves4,564,850.0035,317,780.07901,726,768.28756,909,905.0082,104,113.924,564,850.0029,351,087.57 33,202,505.12 27,852,316.45295,435,999.99 896,832,951.52 303,431,980

13、.24756,909,905.00 504,606,604.00 504,606,604.0042,703,458.54 334,434,014.92 295,033,359.54Surplus reserves17,834,977.9717,834,977.9717,834,977.9717,834,977.97Common risk provisionRetained profit199,209,840.44 175,981,666.60 153,115,142.18 170,506,646.52Different of foreign currencytranslationTotal o

14、f owners equity belong tothe parent companyMinor shareholders equityTotal of owners equity1,056,058,837.3382,362,870.181,138,421,707.51993,430,008.11 1,009,990,739.07 987,981,588.0384,337,468.25993,430,008.11 1,094,328,207.32 987,981,588.03Total of liabilities and ownersequity2,040,148,475.79 1,288,

15、866,008.10 1,991,161,158.84 1,291,413,568.273(Income StatementPrepared by: China Fangda Group Co., Ltd.Jan-Jun 2011RMBYuanAmount of the Current Term Amount of the Previous TermItemsConsolidatedParentcompanyConsolidatedParentcompanyI. Total revenueIncl. Business incomeInterest incomeInsurance fee ear

16、nedFee and commission receivedII. Total business costIncl. Business costInterest expenseFee and commission paidInsurance discharge paymentNet claim amount paidNet insurance policy reservesprovidedInsurance policy dividend paidReinsurance expenses579,154,393.68 20,049,926.08 423,379,762.74 18,558,245

17、.60579,154,393.68 20,049,926.08 423,379,762.74 18,558,245.60534,439,453.17 17,513,082.25 409,935,200.30 18,620,458.50460,275,267.38 5,151,318.51 339,167,650.59 4,777,841.15Business tax and surcharge8,780,225.31 1,197,342.53 7,268,385.20736,359.67Sales expense14,037,722.42251,166.98 12,733,055.35604,

18、810.28Administrative expenseFinancial expenses46,225,304.98 9,792,692.82 39,721,901.51 9,680,484.638,807,786.28 1,922,691.95 10,189,597.13 3,061,119.80Asset impairment loss-3,686,853.20 -802,130.54854,610.52-240,157.03Plus: Gains from change of fair value “-“ for loss)5,082,327.66 4,547,127.66 6,553

19、,456.32 6,498,256.32Investment gain (“-“ for loss)Incl. Investment gains fromaffiliatesGains from currency exchange (“-“ for loss)15,342.473,174,066.97III. Operational profit (“-“ for loss)49,812,610.64 7,083,971.49 23,172,085.73 6,436,043.42Plus: Non business income5,461,800.64461,369.27 14,744,047

20、.55 3,452,536.32Less: Non-business expenses589,873.95430,763.39 1,130,612.42400,960.00Incl. Loss from disposal ofnon-current assetsIV. Gross profit (“-“ for loss)Less: Income tax expensesV. Net profit (“-“ for net loss)Net profit attributable to the ownersof parent company54,684,537.33 7,114,577.37

21、36,785,520.86 9,487,619.7410,564,437.14 1,639,557.29 6,486,285.83 3,551,087.9944,120,100.19 5,475,020.08 30,299,235.03 5,936,531.7546,094,698.26 5,475,020.08 33,608,581.42 5,936,531.75Minor shareholders equityVI. Earnings per share:(I) Basic earnings per share(II) Diluted earnings per share-1,974,59

22、8.070.0610.061-3,309,346.390.0490.049VII. Other misc. incomes-26,600.00-26,600.00 -7,296,195.48-325,200.55VIII. Total of misc. incomesTotal of misc. incomes attributable tothe owners of the parent company44,093,500.19 5,448,420.08 23,003,039.55 5,611,331.2046,068,098.26 5,448,420.08 26,312,385.94 5,

23、611,331.20Total misc gains attributable to theminor shareholders-1,974,598.074-3,309,346.39Cash Flow StatementPrepared by: China Fangda Group Co., Ltd.Jan-Jun 2011RMBYuanAmount of the Current Term Amount of the Previous TermItemsConsolidatedParentcompanyConsolidatedParentcompanyI. Net cash flow from

24、 business operationCash received from sales of products andproviding of servicesNet increase of customer deposits andcapital kept for brother companyNet increase of loans from central bankNet increase of inter-bank loans fromother financial bodiesCash received against original insurancecontractNet c

25、ash received from reinsurancebusinessNet increase of client deposit andinvestmentNet increase of trade financial assetdisposalCash received as interest, processing fee,and commissionNet increase of inter-bank fund receivedNet increase of repurchasing business572,717,719.70 20,736,668.55 392,653,009.

26、60 16,630,116.26Tax returned2,196,998.64239,302.17Other cash received from businessoperationSub-total of cash inflow from businessactivitiesCash paid for purchasing of merchandiseand servicesNet increase of client trade and advanceNet increase of savings in central bankand brother companyCash paid f

27、or original contract claimCash paid for interest, processing fee andcommissionCash paid for policy dividendCash paid to staffs or paid for staffsTaxes paidOther cash paid for business activitiesSub-total of cash outflow frombusiness activitiesCash flow generated by businessoperation, netII. Cash flo

28、w generated by investingCash received from investment retrievingCash received as investment gains34,846,329.66 1,088,056.36 39,549,834.46 5,304,349.62609,761,048.00 21,824,724.91 432,442,146.23 21,934,465.88483,715,194.88 5,182,338.56 346,365,488.62 6,267,741.9444,761,059.84 4,010,180.73 32,596,329.

29、65 2,943,955.5130,109,619.02 1,967,285.81 34,980,004.22 2,108,963.9263,335,464.74 5,435,520.75 58,027,646.80 8,989,344.74621,921,338.48 16,595,325.85 471,969,469.29 20,310,006.11-12,160,290.48 5,229,399.06 -39,527,323.06 1,624,459.77854,089.5415,342.47 17,000,000.00 3,176,516.97 31,615,965.055Net ca

30、sh retrieved from disposal of fixedassets, intangible assets, and other long-term9,372.008,040.002,372,184.95assetsNet cash received from disposal ofsubsidiaries or other operational unitsOther investment-related cash receivedSub-total of cash inflow due toinvestment activities24,714.47 17,008,040.0

31、06,402,791.46 31,615,965.05Cash paid for construction of fixed assets,intangible assets and other long-term assets16,693,359.70429,778.00 17,353,594.621,125,645.91Cash paid as investmentNet increase of loan against pledgeNet cash received from subsidiaries andother operational unitsOther cash paid f

32、or investment activitiesSub-total of cash outflow due toinvestment activities16,693,359.70429,778.00 17,353,594.621,125,645.91Net cash flow generated byinvestmentIII. Cash flow generated by financingCash received as investmentIncl. Cash received as investment fromminor shareholdersCash received as l

33、oansCash received from bond placingOther financing-related cash receivedSubtotal of cash inflow from financingactivitiesCash to repay debts-16,668,645.2390,000,000.0090,000,000.00104,000,000.0016,578,262.00 -10,950,803.16 30,490,319.14340,499,960.00 340,499,960.00276,000,000.00 152,821,754.513,765.2

34、5616,503,725.25 493,321,714.5112,847,054.29 266,000,000.00 210,000,000.00Cash paid as dividend, profit, or interests 10,220,855.72Incl. Dividend and profit paid bysubsidiaries to minor shareholders5,100,550.00 9,008,860.25 5,156,671.25Other cash paid for financing activities111,983.72111,983.722,978

35、,629.662,978,629.66Subtotal of cash outflow due tofinancing activities114,332,839.44 18,059,588.01 277,987,489.91 218,135,300.91financingNet cash flow generated by-24,332,839.44-18,059,588.01 338,516,235.34 275,186,413.60IV. Influence of exchange rate alternation oncash and cash equivalents-7,826.45

36、-12,216.252.70V. Net increase of cash and cash equivalentsPlus: Balance of cash and cashequivalents at the beginning of termVI. Balance of cash and cash equivalents at theend of term-53,169,601.60468,878,715.15415,709,113.5563,748,073.05 288,025,892.87 307,301,195.2130,252,759.44 210,823,550.83 42,0

37、24,488.5034,000,832.49 498,849,443.70 349,325,683.71Consolidated Statement of Change in Owners EquityPrepared by: China Fangda Group Co., Ltd.Interim 2011RMB YuanAmount of the Current TermOwners Equity Attributable to the Parent CompanyAmount of Last YearOwners Equity Attributable to the Parent Comp

38、anyItemsCapitalpaid in Capital Less: Special Surplus(or reserve Shares reserve reserveshare s in stock s scapital)Common risk Retaineprovisi d profitonOthersMinor Total ofshareho ownerslders equity equityCapitalpaid in Capital Less: Special Surplus(or reserve Shares reserve reserveshare s in stock s

39、 scapital)Common risk Retaineprovisi d profitonOthersMinor Total ofshareho ownerslders equity equityI. Balance at the end of lastyear504,60 334,436,604.0 4,014.90 217,834,977.97153,115,142.1884,337,468.251,094,328,207.32426,786,359.0080,622,488.6713,360,180.84102,526,565.0691,114,696.12714,410,289.6

40、9Plus: Change ofaccounting policyCorrecting of previouserrorsOthersII. Balance at the beginningof current year504,606,604.00334,434,014.9217,834,977.97153,115,142.1884,337,468.251,094,3 426,7828,207. 6,359.032 080,622,488.6713,360,180.84102,526,565.0691,114,696.12714,410,289.69III. Changed in the cu

41、rrentyear (“-“ for decrease)252,303,301.00-252,329,901.0046,094,698.26-1,974, 44,093, 77,820,598.07 500.19 245.00253,811,526.254,474,797.1350,588,577.12-6,777,227.87379,917,917.63(I) Net profit(II) Other misc. income-26,600.0046,094,698.26-1,974, 44,120,598.07 100.19-26,600.00-4,955,100.4855,063,374

42、.25-6,777, 48,286,227.87 146.38-4,955,100.48Total of (I) and (II)-26,600.0046,094,698.26-1,974, 44,093,598.07 500.19-4,955,100.4855,063,374.25-6,777, 43,331,227.87 045.90(III) Investment ordecreasing of capital byowners1. Capital inputted byowners47,945,200.0047,945,200.00288,641,671.73288,641,671.7

43、3336,586,871.73336,586,871.732. Amount of sharespaid and accounted asowners equity3. Others7(IV) Profit allotment1. Providing of surplusreserves2. Common riskprovision3. Allotment to theowners (or shareholders)4. Others4,474,797.134,474,797.13-4,474,797.13-4,474,797.13(V) Internal transferring ofown

44、ers equity1. Capitalizing of capitalreserves (or to capital shares)252,303,301.00252,303,301.00-252,303,301.00-252,303,301.0029,875, -29,875045.00 ,045.0029,875, -29,875045.00 ,045.002. Capitalizing ofsurplus reserves (or to capitalshares)3. Making up losses bysurplus reserves4. Others(VI) Special r

45、eserves1. Provided this year2. Used this term(VII) OthersIV. Balance at the end of thisterm756,909,905.0082,104,113.9217,834,977.97199,209,840.4482,362,870.181,138,4 504,60 334,4321,707. 6,604.0 4,014.951 0 217,834,977.97153,115,142.1884,337,468.251,094,328,207.328Change in Owners Equity (Parent Co.

46、)Prepared by: China Fangda Group Co., Ltd.Interim 2011Amount of the Current TermRMB YuanAmount of Last YearItemsCapitalpaid in Capital(or share reservescapital)Less:Shares instockSpecial Surplusreserves reservesCommonriskprovisionRetainedprofitTotal ofownersequityCapitalpaid in Capital(or share rese

47、rvescapital)Less:Shares instockSpecial Surplusreserves reservesCommonriskprovisionRetainedprofitTotal ofownersequityI. Balance at the end of last504,606,6 295,033,317,834,97170,506,6 987,981,5 426,786,3 35,682,2113,360,18130,233,4 606,062,2year04.0059.547.9746.5288.0359.003.360.8472.4025.60Plus: Cha

48、nge ofaccounting policyCorrecting of previouserrorsOthersII. Balance at the beginning504,606,6 295,033,317,834,97170,506,6 987,981,5 426,786,3 35,682,2113,360,18130,233,4 606,062,2of current year04.0059.547.9746.5288.0359.003.360.8472.4025.60III. Changed in the current252,303,3 -252,329,5,475,020 5,

49、448,420 77,820,24 259,351,14,474,79740,273,17 381,919,3year (“-“ for decrease)01.00901.00.08.085.0046.18.134.1262.43(I) Net profit5,475,020 5,475,020.08 .0844,747,97 44,747,971.25 1.25(II) Other misc. incomeTotal of (I) and (II)(III) Investment ordecreasing of capital byowners1. Capital inputted byo

50、wners-26,600.00-26,600.00-26,600.005,475,020 5,448,420.08 .08584,519.45584,519.4547,945,20 288,641,60.00 71.7347,945,20 288,641,60.0071.73584,519.4544,747,97 45,332,491.25 0.70336,586,871.73336,586,871.732. Amount of sharespaid and accounted asowners equity3. Others(IV) Profit allotment1. Providing

51、of surplus94,474,797.134,474,797-4,474,797.13-4,474,79reserves2. Common riskprovision3. Allotment to theowners (or shareholders)4. Others(V) Internal transferring of 252,303,3 -252,303,29,875,04 -29,875,0.137.13owners equity01.00301.005.0045.001. Capitalizing of capital 252,303,3 -252,303,29,875,04

52、-29,875,0reserves (or to capital shares)01.00301.005.0045.002. Capitalizing ofsurplus reserves (or to capitalshares)3. Making up losses bysurplus reserves4. Others(VI) Special reserves1. Provided this year2. Used this term(VII) OthersIV. Balance at the end of this 756,909,9 42,703,4517,834,97175,981

53、,6 993,430,0 504,606,6 295,033,317,834,97170,506,6 987,981,5term05.008.547.9766.6008.1104.0059.547.9746.5288.0310China Fangda Group Co., Ltd.Notes to Financial StatementsI n t e r i m 2 0 11Prepared by: China Fangda Group Co., Ltd.I n R M B Yu a nI. I. General InformationChina Fangda Group Co., Ltd.

54、 (the “Company”, or the “Group”) was approved by the Governmentof Shenzhen with Document 深府办函（1995）194 号, and was founded, on the basis of ShenzhenFangda Construction Material Co., Ltd., by way of share issuing in October 1995.The Company issued foreign currency shares (B shares) and local currency

55、shares (A shares) andlisted in November 1995 and April 1996 respectively in Shenzhen Stock Exchange. On June 12, 1997, asapproved by Shenzhen Bureau of Commerce with Document 深招商复19970192 号, the Companywas re-registered to a sino-foreign joint venture. Registration routines were completed with Shenz

56、henCommerce and Industry Administration on November 12, 1997. In October 1999, the Company startedto use the current name.On May 11, 2011, as approved by Shenzhen Science, Technologies, Industry, Trading, and ITCommittee with document 深科工贸信资字20110755 号, the registered capital of the Company wasincre

57、ased from RMB504.606604 million to RMB756.909905 million. On May 13, 2011, the Companywas granted the “Certificate of Enterprise Invested by Citizens from Taiwan, Hong Kong, and Macao”by the Government of Shenzhen titled 商外资资审 A 字20000025 号, and the share capital wasincreased to RMB756.909905 millio

58、n.The Company holds the business registration number of 440301501124785, and registered addressof Fangda Building, Kejinan Road 12, High-tech Zone, Shenzhen. Mr. Xiong Jianming is the legalrepresentative.Our business include new-type building materials, composite materials, metal wares, metal frames

59、,environmental equipment and apparatus, fire fighting equipment, optical-mechanical-electricalintegrated products, polymer materials and their products, fine chemical products, mechanical equipment,optical materials and devices, electronic displayer, audio-visual device, transport facilities (exclud

60、erestricted items and produces under export certification, and their design, developing, installation,construction, technical consulting, and training. Managing and leasing of properties under possession(Fangda Building at Ke-Ji-Nan Road 12, and Fangda Town at Longzhu Road 4), parking services ofFan

61、gda Building.II. Main Accounting Policies, Estimations and Retrospecting of PreviousAccounting Errors(1) Basis for the preparation of financial statements111.2.Preparing of the financial statements was on the assumption of the Companys perpetual operation,according to the trades and events practical

62、ly happened, complying with the Enterprise AccountingStandard issued by the Department of Finance and relative application guidance. Accounting estimationsand assumptions are used in preparing the financial statements with compliance to the EnterpriseAccounting Standard, which will make influences o

63、n the assets, liabilities or contingent liabilities at thefinancial statement date, as well as the income and expenses in the report term.(2) Statement of compliance to the Enterprise Accounting StandardThe financial report and statements are prepared with compliance to the requirement of theEnterpr

64、ise Accounting Standard. They are reflecting the financial position at June 30, 2011, and businessperformance and cash flow situation of Jan-Jun 2011 of the Company frankly and completely.(3) Fiscal periodThe fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.

65、(4) Standard currency for bookkeepingThe Company takes RMB as the standard currency for bookkeeping.(5) Accounding treatment of the entities under common control and different control as wellConsolidation of entities under common controlAssets and liabilities obtained by the merging party are calcul

66、ated at their book value with themerged parties at the merger day. The differences between the book value of net assets and the bookvalue of consideration price (or the total of face value of share issued) are adjusted to the share capitalpremium under the capital reserves. If the share capital prem

67、ium is not enough to neutralize thedifference, it will be adjusted to the retained gains.Consolidation of entities under different controlFor merger of entities under different control, the merger cost is the fair value of the asset paid,liability undertaken, and equity securities issued for exchang

68、ing of control power over the entities at theday of acquisition.When a merger of entity under different control is undertaken through multiple trades, accountingtreatments will be carried out separately on individual and consolidated financial statements as thefollowings:(1) In the individual financ

69、ial statements, the initial investment cost of the particular project will bethe sum of book value of equity in the entity before the date of acquisition and the newly addedinvestment cost; When the share equity before the date of acquisition involves with other integratedgains, such gains (such as

70、the part of fair value of the sellable financial assets accounted into capitalreserves, same for the followings) are transferred into current investment income account.(2) In the consolidated financial statements, the share equity in the acquired entity before the date ofacquisition is recalculated

71、upon the fair value of the equity at the date of acquisition. The balancebetween the fair value and book value shall be accounted into current investment income account; When12the share equity before the date of acquisition involves with other integrated gains, such gains aretransferred into investm

72、ent income account of the period when it occurred.Agency expenses and other administrative expenses such as auditing, legal consulting, or appraisalservices occurred relating to the merger of entities are accounted into current income account whenoccurred; the transaction fees of equity certificates

73、 or liability certificates issued by the purchaser forpayment for the acquisition are accounted at the initial amount of the certificates.For merger of enterprises under common control, the merger cost is the fair value of capital paid,liability occurred or undertaken, or equity instrument issued th

74、ereof, on the day of purchasing to obtainpower of control over the bought party, and those expenses directly related to the merger. For mergerdone through multiple trades, the overall cost is the sum of cost of each single trade. If the mergercontract provided faith on future events that may influen

75、ce the merger cost, and the event has greatpossibility to happen, and its influence may be reliably measured, then it will be accounted into mergercost.(6) Preparation of Consolidated Financial StatementsConsolidation range is determined on the basis of control power for the consolidated financialst

76、atements.The Financial Statements of the Company are prepared according to “Enterprise AccountingStandard No.33 Consolidated Financial Statements” and relative rules. All major trades andinterchanges within the consolidation range have been neutralized. The part of shareholders equities notattributa

77、ble to the parent company are presented individually as minority shareholders equity in theconsolidated financial statements.When the accounting policies and periods of the subsidiaries are not complying with those of theCompanys, they shall be adjusted according to the Companys accounting policy an

78、d accounting period.Subsidiaries added as merger of enterprises under different control, the individual statement shall beadjusted basing on the recognizable net asset fair value at the day of purchasing; subsidiaries added asmerger of enterprise under common control, it will be regarded as existing

79、 since the contol power isacquired, the initial figures of the consolidated balance sheet will be adjusted as well as the related items.(7) Recognition of cash and cash equivalentsCash equivalent in cash flow statement refers to the investments with short term, strong liquidityand small risk of valu

80、e fluctuation that are held by the Company and easily converted into cash withknown amount.(8) Foreign currenciesTrades of the Company made in foreign currencies are translated into RMB basing on the middlerate announced by China Foreign Currency Trading Center which is authorized by Peoples Bank of

81、China at the date when the trade is conducted. At the balance sheet date, foreign currency items aretranslated on the middle rate announced by China Foreign Currency Trading Center, the translationdifferences, except for those constructed or produced and can be capitalized directly into relative cap

82、ital131.variationscosts, are accounted into current gain/loss account. Non-monetary items accounted in foreign currencyand on historical costs, are still use the middle rate announced by China Foreign Currency TradingCenter, and the amount in standard currency will not be changed.(9) Financial instr

83、umentClassification, recognition and measuring basis of financial instrumentsFinancial assets are categorized as: financial assets measured at fair value withaccounted into current income account, account receivable (see Note II (X) fordetails), and disposable financial assets. Categorizing of finan

84、cial assets are decided by theintention and capability of holding of the financial assets by the Company or itssubsidiaries.The Company has financial liabilities including: financial liabilities and other financial liabilitiesaccounted into current gain/loss account at fair value.(1) Financial asset

85、s measured at fair value with variations accounted into current incomeaccountIncluding transactional financial assets and financial assets directly measured by fair value and withvariations accounted into current gain/loss account, which are initially recognized at the fair value whenobtained, the r

86、elated transaction expenses are accounted into current income account when occurred. Cashdividend and bond interests included in the prices paid which are announced but not distributed arerecognized as receivable items individually.Interests or cash dividends received during the periodof holding the

87、 particular financial assets are recognized as investment gains when received.At the balance sheet day, the fair values of such financial assets are accounted into currentincome account. At disposal of such financial assets, the differences between the fair valueand initial booked value are recogniz

88、ed as investment gains, and the fair value fluctuationgain/loss will be adjusted accordingly.(2) Sellable financial assetSellable financial asset refers to those sellable non-derivate financial assets recognized initially,namely the Company does not elicit financial assets accounted by fair value wi

89、th variations accountedinto current income account, investment hold to expiration, loans, and receivables.Sellable financial assets are initialised at the sum of fair value and related transaction costs whenobtained. Due bond interests or cash dividend included in the payment that are announced but

90、notdistributed are recognized as receivables individually. Interests or cash dividends received during theperiod of holding the sellable financial assets are recognized as investment gains when received. At thebalance sheet date, sellable financial assets are measured on fair values, and the variati

91、ons of fair valuesare accounted into “Capital reserves other capital reserves”.At disposal of sellable financial assets, the difference between the amount received and the bookvalue of the financial asset will be accounted into “investment gains”, meanwhile, the amount of142.accumulative change of f

92、air value originally accounted into owners equity corresponding to thedisposed part will be transferred over to “investment gains”.(3) Financial liabilities measured at fair value with variations accounted into currentincome accountIncluding transactional financial liabilities and financial liabilit

93、ies directly measured by fair valueand with variations accounted into current gain/loss account, including:1)Financialliabilitiesundertaken to be repurchased in short future;2) Those directly assigned as financial liabilities directlymeasured by fair value and with variations accounted into current

94、gain/loss account in view of riskmanagement or strategic investment needs;3) Derivate instruments not used as hedging instruments.Such financial liabilities are evaluated at fair value, and the transaction expenses could happen infuture clearance are not deducted. If fair value is not suitable, eval

95、uation will be on balance of cost afteramortizing.(4) Other financial liabilitiesOther financial liabilities are those other than financial liabilities measured by fair value andchanges recorded into current gain/loss account, which mainly include account payable and long-termpayable accounts genera

96、ted by purchasing of goods. Other financial liabilities are initially recognized bytheir fair value plus relative trade expenses. Subsequent measurement is on amortized costs.For other financial liabilities which are not at fair value through profit or loss, for example financialguaranteed contracts

97、, they are initially recognized at fair value plus any directly attributable transactioncosts. After the initial recognition, the other financial liabilities are measured at the higher of thefollowings:1. The amount measured in accordance with “Accounting Standards for Business Enterprises No.13 Con

98、tingency”2. The amortized balance measured in accordance with “Accounting Standards for BusinessEnterprises No.14 Revenue”Basis of recognition and accounting of financial asset transferringTransferring of financial assets by the Company is including the following two cases:(1) Transfer the rights of

99、 collecting the cash flow attached to the financial asset to another party;(2) Transfer the financial asset to another party, but reserve the rights to collect cash flow related tosuch financial asset, and is responsible to pass the cash flow over to the final beneficiary, and satisfyingall of the f

100、ollowing conditions:A. Only when equal cash flow was received upon the financial asset, the party is obligated to give itto the final beneficiary party. When an enterprise is making payment on others behalf for a short term,and will be retrieved in full along with interest at fair market rate, shall

101、 be deemed as satisfying thiscondition.B. As bounded by the contract, the financial asset is not able to be disposed or use as guarantee,however it can be used as guarantee for cash flow of final payment.C. The party is obligated to duly forward the cash flow to the final beneficiary party. However1

102、53.4.5.except for the cash or cash equivalent the enterprise is not entitled to reinvest, but received between thetwo payments as setout by the contract. When the party is reinvesting the cash according to the contract,the gains shall be passed to the final beneficiary party according to the contrac

103、t.Recognition of the financial asset is terminated as soon as all of the risks and rewards attached tothe financial asset has been transferred to the receiver. Whereas if all of the risks and rewards attached tothe financial assets are reserved, recognition of the financial asset shall not be termin

104、ated.When non of the transferring or reserving of the all risks and rewards attached to the financial assethappened, it will be handled as:(1) When the controlling power over the financial asset is given up, it will be terminated.(2) When the controlling power is not given up, financial asset and re

105、lated liability shall berecognized according to the extend the Company is involving in the financial asset.Termination of recognition of financial liabilitiesAs soon as partial or all of the current responsibilities attached to such financial liabilities,recognition of partial or all of the financia

106、l liabilities will be terminated. When recognition of financialliabilities are partially or wholly terminated, the balance between the book value and the price paid(including non-monetary asset transferred out or new financial liabilities undertaken) shall be accountedinto current income account.Rec

107、ognition of financial instrument fair valuesWhen there is an active market for the financial instrument, the value quoted at the active market isadopted by the Company as the fair value. When there isnt any active market, fair value will berecognized by evaluation techniques. Evaluation techniques i

108、nclude referencing to the prices adopted inlatest voluntary transaction between parties with full understanding of the situation, referencing to thecurrent fair value of other substantially similar financial instruments, discounted cash flow analysis. Atusing of evaluation techniques, market indices

109、 will be used to the greatest extent, while particular indicesof the Company and the subsidiaries to the least.Impairment testing on financial assets, providing of impairment provisionAt balance sheet date, the Company performs testing on the book value of financial assets otherthan those measured b

110、y fair value and changes accounted into current income account.When objective evidence showing that an investment hold to expiration has impaired, theimpairment amount shall be accounted according to the balance between the book value and the currentvalue of expectable future cash flow; if evidence

111、showing that the impaired amount has restored, theoriginal impaired amount can be restored to current income account, however the amount to be restoredshall not greater than the amortized cost of the financial assets with assumption of no impairmentreserves have been provided at the date of restorin

112、g.As for sellable financial assets, if the fair value decreased significantly, and it was predicted nottemporary, then impairment loss will be accounted at the difference between the balance of initial costless retrieved principle less amortized amount and current fair value. The accumulative losses

113、 formed by161.2.3.decreasing of fair value originally accounted into the owners equity are transferred out along withproviding of impairment losses, and accounted into “asset impairment loss”.(10) Account receivableAccounts receivable (including account receivable and other account receivable) are i

114、nitiallyaccounted according to the contract amount or agreement amount. Accounts receivable that areunrecoverable due to bankruptcy of the debtor (still unrecoverable through insolvency procedures); deathof the debtor, and no inheritance or heir of liabilities available; or failure of clearing overd

115、ue liabilitiesby the debtor, will be accounted as bad debt losses through legal verification procedures.When the Company retrieves the receivables, the differences between the amount retrieved andbook value of the receivable shall be accounted into current gain/loss account.Recognition and providing

116、 of bad debt provision on individual receivable accountwith large amountThe Company divides receivable accounts into project receivables and product receivables. Projectreceivables are those recognized at percentage according to the construction contract, productreceivables are those formed in other

117、 ways. For the current year, the Company recognizes projectreceivables over RMB8 million (included) as “individual receivable with large amount” whilerecognizes product receivables over RMB2 million (included) as “individual receivable with largeamount” and other receivables over RMB1 million (inclu

118、ded) as “individual receivable with largeamount”. On balance sheet day, the Company performs impairment examination individually on eachlarge amount receivables, and recognizes impairment and provides bad debt provision when theimpairment is recognized; those not impaired are accounted along with th

119、e minor amount receivablesand recognized in risk groups.Recognition and providing of bad debt provisions on groupsReceivable accounts are divided into two groups, which are receivable accounts not consolidated andreceivable accounts consolidated. Receivable accounts consolidated are provided for bad

120、 debt provisionson basis of individual recognition; while receivable accounts not consolidated are provided fro bad debtprovisions on basis of age analyzing as the following:Within 1 yr, (included)1-2 yrs2-3 yrsOver 3 yrsAgeProviding rate (%)3.0010.0030.0050.00Account receivable with minor individua

121、l amount but provided of bad debtprovisionsReceivable accounts attributed as project accounts with individual amount under RMB8 million and171.2.3.4.5.those attributable as products with individual amount under RMB2 million are categorized to “accountreceivable with minor individual amount”; while o

122、ther receivable accounts with individual amount underRMB1 million are categorized as “other receivable accounts with minor individual amount”.Individual impairment tests are performed individually on receivable accounts aged over 5 years.Full impairment provision will be provided when there is no su

123、bstantial evidence showing that it couldbe retrieved.(11) InventoriesCategorizing of inventoriesInventories are those under the Companys possession for the purpose of selling, in the process ofproduction, or materials and goods used in production process or providing of services, includingmaterials

124、purchased, raw materials, low-value consumables, OEM materials, products in process,semi-finished goods, finished goods, agency goods, and construction in process.Pricing of delivering inventoryInventories are measured at cost when procured, including purchase cost, processing cost, and othercosts.

125、Actual costs are recognized at weight average when delivered. Transferring of constructionmaterials are recognized individually.Recognition of inventory realizable value and providing of impairment provisionOn the balance sheet date, inventories are accounted depending on which is lower between the

126、costand the net realisable value. At overall verification of inventories at the end of year, when the netrealisable value is lower than the cost, provisions for impairment of inventories shall be drawn.Provisions for impairment of inventories shall be accounted according to the difference between th

127、e costof individual inventory items and the net realisable value. Including: for inventories such as finishedproducts or materials which will be directly sold, in the normal operation, the realizable net value will bethe balance of estimated selling price less sales expenses and relative taxations;

128、For those inventoriesneed further processing, in the normal operation, the realizable net value will be the balance of estimatedsales price less costs to make it finished, less estimated sales expenses, and less relative taxation. At thebalance sheet day, inventories with contract prices will be det

129、ermined for realizable value separatelyfrom those without contract prices.Inventory systemThe Company uses perpetual inventory system. Inventories are checked periodicly and the gainsand losses from inventory checking are accounted into current gain/loss account.Amortizing of low-value consumables a

130、nd packaging materialsLow-value consumables are amortized on on-off amortization basis at using. Other materials areamortized at 50-50 basis.(12) Long-term share equity investment181.2.3.4.Long-term share equity investment of the Company includes the investment in subsidiaries,affiliates, and other

131、long-term equities.Recognition of initial investment costsInvestment of the Company in subsidiaries are valued at investment costs. For long-term shareequity investment formed by shareholding and merger please see Note II(V). Retrospective or retrievedinvestment are adjusted to the cost of long term

132、 equity investment.For long-term equity investment of the Company with or without common control or majorinfluence on the investee, and there is no quotation in an active market, and the fair value is not reliablymeasured, values are on initial investment costs.Subsequent measurement and recognition

133、 of gain/lossThe Company uses cost basis in subsequent measurement of investment in subsidiaries, andadjusted on equity basis when preparing the consolidated financial statement. Except for the announcedcash dividend or profit included in the practical cost or price when the investment was made, the

134、investment gains are recognized at the announced cash dividend or profit distribution.Subsequent measurement of long-term equity investment in investees under common control orsignificant influence is on equity basis. When the initial investment cost is larger than the share of fairvalue of net asse

135、t, the initial cost of long-term equity investment shall not be adjusted. When the initialinvestment cost is lower than the share of fair value of net asset, the balance share be accounted intocurrent gain/loss, and the long-term investment cost shall be adjusted meanwhile.After obtaining ofthe long

136、-term equity investment, the investment gain/loss is recognized according to the share of the netgain/loss realized by the invested company, and the book value of the long-term equity investment shallbe adjusted accordingly. The share of profit distributions or cash dividends announced by the invest

137、edcompany is used to reduce the book value of the long-term equity investment.If the Company has no common control or significant influence on the investee, and there is noquotation in an active market, the fair value of the long-term investment is not able to be reliablymeasured, the subsequent mea

138、surement shall on cost basis.Basis of recognizing common control and significant influenceCommon control is the mutual control of investors over an economic action basing on a contract,only effective when it is agreed by all of the investors who have the share of control on the financial andbusiness

139、 control power. When the investors hold common control over the investee, the investee isregarded as their affiliate. Significant influences mean an entity has the power to participate in thedecision making of another, but cannot dominate individually or jointly with other parties. When theinvestor

140、may significantly influence the investee, the investee is regarded as the affiliate.Impairment examination and providing of impairment provisionAt the balance sheet day, if evidence showing that impairment occurred on the long-term equityinvestment, the recoverable amount shall be decided by the hig

141、her one of net amount of fair value lessdisposal fees and the current value of predicted future cash flow. When the recoverable amount of thelong-term equity investment is lower than the book value, the book value will be reduced down to the191.2.recoverable amount, the reduced amount is recognized

142、as asset impairment loss and counted into currentgain/loss account, asset impairment provision shall be provided accordingly. Once the long-term equityinvestment impairment loss is recognized, it will not be written back in following fiscal terms.(13) Investment propertiesInvestment real estates are

143、 buildings rented out.Investment real estate is measured according to the initial cost. Cost of real estate purchased fromoutside includes purchasing price, tax, and other expenses directly related to the real estate; cost of realestate constructed by the Company itself is constructed by the essenti

144、al costs to make the real estateusable.Accounting of investment real estates of the Company is on fair value basis when the followingconditions are satisfied:(1) There is an active real estate market where the investment real estate is located;(2) Market price and other related information of simila

145、r real estates may be acquired from themarket and used to make reasonable estimation on the fair value of the investment real estate.At the balance sheet date, the Company uses fair value to measure the investment properties, nodepreciation or amortizing is made on the investment properties, book va

146、lue is adjusted on the base offair value of the property at balance sheet date, and the differences between the fair value and theoriginal book value are counted into current gain/loss account.At disposal of investment properties, or retrieve from the property permanently and no furtherfinancial ben

147、efit is expected to obtain from the property, recognition of the investment property will beterminated. Balance of income from disposal, transferring, discarding, or clearing of investmentproperties less the book value and related taxes is counted into current gain/loss account.(14) Fixed assetsCond

148、itions for fixed asset recognitionFixed 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 year of service life.Depreciation of fixed assetsOther than fixed assets which have alrea

149、dy been provided depreciations in full but still in use, theCompany provides depreciations upon all of the fixed assets. Straight age average basis is adopted indepreciation.According to the property and usage of the fixed assets, the Company decides the service life andpredicted net retained value.

150、 At end of each fiscal year, verification will be made on the useful life,predicted retained value, and depreciation basis, adjustment will be made if difference occurred to theoriginal estimations.Categories, useful life, predicted net retained value, and annual depreciation rate of fixed assets ar

151、eas the followings:CategoriesHouses & buildingsDepreciation age (year)35-45Residue rate (%)10Annual depreciationrate (%)2-2.57203.4.CategoriesEquipment & machineryTransportation facilitiesElectronics and otherdevicesDepreciation age (year)1055Residue rate (%)101010Annual depreciationrate (%)91818Imp

152、airment testing and impairment provisionsAt the balance sheet day, fixed assets are accounted at the lower one of book value and retrievablevalue. If the retrievable value is lower than the book value, the book value will be deducted to theretrievable value, and the deducted amount will be recorded

153、as asset impairment loss into current incomeaccount, and impairment provision shall be provided accordingly. Once the impairment loss wasrecognized, it will not be written back in coming fiscal terms.Other statementsFixed assets are initially measured at costs. Among them, cost of fixed assets purch

154、ased fromoutside include purchasing price, tariffs and other taxes, and other expenditures directly related to theasset before it reaches the useful status. Cost of self-build fixed assets is the necessary costs before it ismade useful. Fixed assets invested by investors are booked at the value acco

155、rding to the investmentcontract, whereas when the contract value is not fairly acceptable, it will be booked at the fair value.When a payment for purchasing of fixed asset is overdue and practically forms financing activity, thefixed asset is recognized at the current value of purchasing price.The d

156、ifference between the price paidand current value, except for those must be capitalized, shall be accounted into current income accountof the credit period.When fixed asset is disposed, or made no financial benefit by using or disposing it, recognition isterminated. Income from disposal, transferrin

157、g, discarding of fixed assets, less its book value and taxes,is accounted into current income account.(15) Construction in processFor construction in process conducted by the Company itself, its actual cost consists ofessential costs of carrying on the construction till it reaches usable status. Con

158、structions inprocess of the Company are divided to workshop construction and equipment installationprojects.Cost of fixed asset which has already become usable but not settled yet, is recognized according toestimated value, and depreciations share be provided. Upon completion of settlement, the orig

159、inalestimated value shall be adjusted according to the actual cost, but the depreciations made previouslyshall not be adjusted.At the balance sheet day, construction in process are accounted at the lower one of book value andretrievable value. If the retrievable value is lower than the book value, t

160、he book value will be deducted tothe retrievable value, and the deducted amount will be recorded as asset impairment loss into current21Assetincome account, and impairment provision shall be provided accordingly. Once the impairment loss wasrecognized, it will not be written back in coming fiscal te

161、rms.(16) Borrowing expensesBorrowing expenses occurred to the Company that can be accounted as purchasing or production ofasset satisfying the conditions of capitalizing, are capitalized and accounted as cost of related asset.Other borrowing expenses are recognized as expenses according to the occur

162、red amount, and accountedinto gain/loss of current term. Assets satisfying the conditions of capitalization are referring to the fixedassets, investment properties, and inventories that need a long-term construction or production process toreach the usable or sellable status.Borrowing expenses start

163、 to be capitalized when all of the followings are satisfied: (1)expense has already occurred. Asset expenses include cash payment, non-cash asset transferring, orundertaking of debt with interest done for purchasing or producing of assets.(2)Theborrowingexpense has already occurred.(3) Purchasing or

164、 production activity, which is necessary for the assetto reach the useful status, has already started.In the period of capitalization, the capitalized amount of each fiscal period, if it is a specialborrowing for construction or production of asset satisfying the capitalizing conditions, is the inte

165、restexpenses actually occurred less the interest income from the unused part of borrowings or fromtemporary investment. If it used a common borrowing for construction or production of asset satisfyingthe capitalizing conditions, the capitalized interest amount will be decided by the weighted average

166、 ofaccumulative asset expenses over the capital expenses of the special borrowing multiply the capitalizingratio of common borrowing. Capitalizing amount of the interests shall not more than the actual amountof interest actually occurred to the current relative borrowing.If the construction or produ

167、ction of assets satisfying the capitalizing conditions is suspendedabnormally for over 3 months, capitalizing of borrowing expenses shall be suspended. Borrowingexpenses occurred in the suspension period are recognized as expenses and recorded to current incomeaccount, until the construction or prod

168、uction is resumed. If the suspension is an essential process to makethe asset usable or sellable, capitalizing of borrowing expenses shall be carried forward.When the asset satisfying the capitalizing conditions has reached its usable or sellable status,capitalizing of borrowing expenses shall be te

169、rminated.(17) Intangible assets and development expensesIntangible assets are those recognizable non-monetary assets without physical shape under theCompanys possess or control, including land using rights, patent, industry property, special technologies,and software.Intangible assets are initially

170、measured by their costs. Intangible assets purchased are booked at theactual cost to purchase and relative expenses. Intangible assets inputted by investors are booked at thecontract or agreement price, but if the contract or agreement price is not fairly acceptable, it will be bookedat fair value.2

171、2The Company analyses and determine the usable life when intangible assets are obtained, and areclassified into intangible assets with limited useful life, and uncertain useful life.Intangible assets with limited useful life are amortized straightly to the useful life, the useful lifeand amortizing

172、basis are reconsidered at the end of each year, when there is difference with the originalestimation, adjustment shall be made. Intangible assets with limited useful life are amortized asfollowings:CategoriesLand using rightPatentIndustrial property and specialtechSoftwareOther intangible assetsUsef

173、ul life50 yrs10 yrs10 yrs5,10 yrs10 yrs or beneficialageBasis of amortizationAverage ageAverage ageAverage ageAverage ageAverage ageNotesInternal R&DIntangible assets without certain useful life are not amortized. They will be reconsidered in eachaccounting period, if strong evidence showing that th

174、e useful life became limited, then it will beestimated, and amortized on straight basis. Intangible asset without certain useful life shall be tested eachyear whether or not there is evidence of impairment.On the balance sheet date, the Company measures intangible assets according to the lower of bo

175、okvalue and retrievable value, intangible asset impairment provisions shall be provided at the difference ofretrievable value lower than the book value, and the corresponding impairment loss shall be recorded tocurrent income account. Once intangible asset impairment losses are recognized, they will

176、 not be writtenback in successive fiscal periods.Internal R&D expenses are divided into research expenses and development expenses and treatedseparately. The period of scientific or technological creation or research is categorized as research period.The period of using the researching fruits or oth

177、er know-how into practical projects or designing ofsubstantial products, equipment, or materials is recognized as development period.Research refers to creative and planned investigation on new science or technologies.Development means using the researching fruits or other know-how into practical pr

178、ojects ordesigning of substantial products, equipment, or materials is recognized as development period.Expenses of internal R&D projects in research stages are recorded into current income accountwhen occurred; expenses of internal R&D projects in development stages, are recognized as intangibleass

179、ets when all of the following conditions are satisfied, or otherwise recorded to current income account:(1) Developing of the intangible asset is about to be completed, and it is technically possible to beput into use or sold;(2) Has the intention to use or sell it; (3) The intangible asset is prove

180、d being ableto make financial benefit, including there is a market for the products using the intangible asset or theintangible asset itself. If the intangible asset is used internally, its usage should be proved; (4) There aresufficient technologies, financial resources, or other resources that sup

181、port the developing, using orselling of the intangible asset;(5) When the expenses attributable to the intangible asset can be reliablymeasured. The development expenses accounted in prior income accounts shall not be recognized as231.2.(6)asset in succeeding period. Development expenses that have b

182、een capitalized shall be demonstrated asexpenses in the balance sheet, and transferred into intangible asset as soon as it reaches usable status.(18) GoodwillGoodwill is the difference of merger costs of enterprises under same control over the share ofrecognizable net asset or fair value at the date

183、 of purchasing of the invested company.Goodwill related to subsidiaries are presented individually in consolidated financial statements,goodwill related to affiliates are included in the book value of long-term equity investment.Goodwill presented individually in financial statements are tested for

184、impairment at leased once atend of each year. At impairment test, the book value of goodwill shall be shared by the benefited assetgroup according to the collaboration effects between the merger businesses.(19) Expectable liabilitiesWhen responsibilities occurred in connection to contingent issues,

185、and all of the followingconditions are satisfied, they are recognized as expectable liability in the balance sheet: (1)Thisresponsibility is a current responsibility undertaken by the Company; (2) Execution of this responsibilitymay cause financial benefit outflow from the Company; (3) Amount of the

186、 liability can be reliablymeasured.Expected liabilities are initially measured at the best estimation on the expenses to exercise thecurrent responsibility, and with considerations to the relative risks, uncertainty, and periodic value ofcurrency. When the periodic value of currency is with major in

187、fluence, then the best estimation will bedetermined at the discount of future cash outflow. The book value of expected liability is revised atbalance sheet day, and adjustment will be made to reflect current best estimation.(20) Payment in shares and equity instrumentsCategories of payment in shares

188、Share payment of the Company is divided into payment by shares and payment by cash.Recognition of equity instrument fair valueFor equity instruments such as share options with an active market, the fair value is decided by thequotation in the active market. For those without an active market, the fa

189、ir values are decided by apricing model, and the following factors shall be considered when deciding the pricing model: (1)Exercising price of the option;(2) Valid period of the option;(3) Current price of the target shares;(4) Predicted share price fluctuation rate; (5) Predicted dividend of the sh

190、ares;Interestrate without risks in the valid period.When deciding the fair value of the equity instruments, the influence of market condition in theexercisable condition and non-exercisable conditions in the payment agreement shall be considered.When the payment of shares is under non-exercisable co

191、nditions, the cost corresponding to the servicesshall be recognized only when the non-market conditions (such as service term) in all of the exercisable243.4.conditions are satisfied by the employee or other parities.Basis of deciding the best estimation of the exercisable equity instrumentsAt each

192、balance sheet date during the waiting period, the best estimation shall be made according tothe newest subsequent information such as the number of employees who have exercisable options, andamount of equity instrument shall be adjusted. At the exercisable date, the final estimated amount shallbe th

193、e same with the practical amount of exercisable options.Accounting treatment of implementing, amending, and terminating of sharepayment schemePayment by equity is measured by fair value of the equity paid to the employees. If the equity canbe exercised instantly, it will be accounted into relative c

194、ost at the fair value of the equity at the day ofgiving. If the equity is only exercisable upon satisfying of performance or service period, basing on thebest estimation on the amount of equity, according to the fair value at the day of giving, record theservice into related cost or capital reserves

195、 at each balance sheet date in the period. No adjustment willbe done on recognized cost or expenses and the owners equity after the exercise date.Payments of share equity in cash are measured on the fair value of liabilities recognized basing onthe share equity or other equity instruments. Those whi

196、ch can be exercised immediately upon grantingare accounted into related costs or expenditures at the fair value undertaken by the Company at the dateof granting, and liabilities shall be increased correspondingly. Those which can only be exercised uponsatisfying of certain conditions including provi

197、ding of services or business contribution, shall beaccounted into cost account and corresponding liabilities basing on the best estimation of exercisingcondition at each balance sheet day in the waiting period. On each balance sheet day and settlement dayprior to clearing of related liabilities, the

198、 fair value of the liabilities shall be reevaluated, and the changesshall be accounted into current income account.In case the equity instrument is canceled in the waiting period, the Company will accelerate theexercise of the equity instrument to be canceled. The Amount recognizable for the rest of

199、 waiting periodshall be accounted into current gain/loss instantly, and recognized to capital reserves at meantime. Whenthe employee or other beneficiary failed to satisfy the conditions to exercise the options in the waitingperiod, the Company will cancel the equity instrument.(21) Revenue1.Sales o

200、f goodsWhen all of the following conditions are satisfied, the sales of goods are recognized as sales incomeaccording to the contract amount received or receivable from the buyer:(1) Main risks and rewardsattached to the ownership of the goods have been transferred to the buyer; (2) No succeeding po

201、wer ofadministration or effective control is reserved which are usually attached to ownership;25(3)Amount(5)2.3.4.received can be reliably measured; (4) Related financial benefit may inflow to the Company;Relative costs, occurred or will occur, can be reliably measured.When collection of contract pa

202、yment is by deferred way, and practically with financing characters,sales income shall be recognized at the fair value of the receivable contract amount.Providing of labor serviceLabor service started and completed in a same fiscal year is recognized as income at completion. Ifthey are not in the sa

203、me year, then use the estimation on percentage basis when it is possible.When the partial of service is not able to be estimated, the labor service income is treated as thefollowings:A. When the labor cost occurred is expectable to be covered, the labor service income is recognizedat the cost alread

204、y occurred, and recorded to labor cost as well.B. When the labor cost occurred is not expectable to be covered, the cost will be recorded to currentgain/loss account without recognizing as labor service income.When a contract engaged with other company is including sales of goods and providing of la

205、borservices, if the goods and services can be measured separately, they will be treated separately. When theyare not able to be distinguished, or not able to be measured separately, all of them will be treated as salesof goods.Demising of asset using rightsIncome is recognized when the financial ben

206、efit in connection with the demising of asset usingright was received and the amount can be reliably measured.Interest income is recognized according to the applicable period of time and interest rate. Amountof application fee is recognized according to the period and calculation decided by the rela

207、ted contract.Construction contractsMetro screen door projects of the Company and Shenzhen Fangda Automatic System Co., Ltd.(Fangda Automatic System), and glass curtain wall project of Shenzhen Fangda Decoration EngineeringCo., Ltd. (Fangda Decoration) are individual construction contracts, they are

208、accounted by the followingmeans:Construction contracts completed within a fiscal year are recognized for their income and cost uponcompletion.Income and expenses of the construction contracts carried over-year are recognized on percentagebasis at balance sheet day when all of the following condition

209、s are satisfied: contract income can bereliably measured, relative financial benefit can inflow to the Company; progress of the project and coststo complete the contract can be reliably recognized; cost occurred to complete the contract can be clearlydistinguished and reliably measured, which enable

210、s comparing of actual cost with predicted cost.In which: Contract costs are direct and indirect expenses occurred since the date when the contractis engaged till the completion day.26Progress of a contract is recognized at the percentage of actual accumulative cost in the total ofbudget of the contr

211、act.Construction contracts completed in current term are recognized for income according to the actualtotal income of the contract less income recognized in previous terms; meanwhile, the total costs of thecontract less costs recognized in previous terms are recognized as current contract costs. If

212、the totalcontract cost is predicted to be greater than the predicted total income, the predicted loss shall berecognized as current cost instantly.Parts of the curtain wall project under Fangda Decoration are outsourced, and administrative feesare collected at agreed rate. For these construction con

213、tracts, income will be recognized when ongoingpayment for the project is received and corresponding costs are transferred.(22) Government subsidyGovernment subsidies are the monetary or non-monetary capital received from the government byfree, but not include capital inputted by the government as in

214、vestment of owners.When a government subsidy is monetary capital, it is measured at the received or receivable amount.None monetary capital are measured at fair value; If no reliable fair value available, recognized atRMB1.Government subsidies in connection with capital are recognized as deferred in

215、come, and amortizedstraight to its useful life, and accounted into current income account.Government subsidies in connection with gains, which are used to cover future expenses or losses,are recognized as deferred gains, and recorded to current income account to the period when theexpenses are recog

216、nized.If a recognized government subsidy need to be returned, if there is relative deferred gains, thebalance of deferred gains will be setoff, the exceeded part shall be recorded into current income account;if there is no relative deferred gains, record to current income account directly.(23) Defer

217、red income tax assets/ deferred income tax liabilitiesIncome taxes are accounted on liability basis in the balance sheet. When there is difference betweenthe book value and taxable basis of asset or liability, deferred income tax asset and deferred income taxliability are recognized according to the

218、 regulations.At the balance sheet day, the current income tax liabilities (or assets) formed in current term orprevious term, are measured by the amount of income tax to be paid (or refunded) according to thetaxation law; deferred income tax assets and liabilities are measured at the applicable tax

219、rate in theperiod when the asset is predicted to be retrieved or the liability is predicted to be cleared.Recognition of deferred income tax asset is limited to the provisional difference to be deducted, anddeductible losses and taxable income amount. If the taxable income realized in the future per

220、iod oftransferring of provisional differences is not sufficient, which made the financial benefit related to theprovisional difference unrealizable, no deferred income tax asset is recognized. Deferred incometaxliabilities generated by the taxable provisional difference related to fluctuation of fai

221、r value ofinvestment in subsidiaries and affiliates are recognized, but those satisfying the recovering time of thetaxable provisional difference are not recognized;27For deferred income tax assets caused by1.2.deductible temporary differences related to investment in subsidiaries, affiliates, and j

222、oint operations, ifthe deductible temporary differences are possible to be written back in a expectable future, namely thereis a substantial plan to dispose the investment, and the gains from disposal are enough not only toprovide taxable income, but also to deduct the deductible temporary differenc

223、e, it shall be recognized.At the balance sheet day, the book values of deferred income tax assets are revised.Those deductible provisional differences, which are neither enterprise merger, nor initial recognition of assetsor liabilities are recognized as income tax expenses or income into current in

224、come account.(24) LeasingLeasing is one of the business operations of the Company.The Company is the lenderRentals from operational leasing are recognized as current gains on straight basis to the periods ofleasing. Initial direct expenses are recorded to current income account.The Company as lessee

225、Rentals in operational leasing are recorded to relative capital cost or current income account onstraight basis to the periods of leasing. Initial direct expenses are recorded to current income account.(25) Sellable assets in possessionSellable assets in possession are assets satisfying all of the f

226、ollowing conditions: Resolutionshave been made on disposal of these non-current asset;Irrevocable agreement has been engaged with thebuyer.The possession will be transferred within one year.For fixed assets hold for sale, the predicted net residue value shall be adjusted to reflect the netvalue of f

227、air value less the disposal expenses, but not greater than the original book value when it hadsatisfied the conditions of disposable. The balance between the original book value and the predicted netresidue value shall be accounted into current income account as asset impairment loss.Other non-curre

228、nt assets such as intangible assets satisfying the conditions of available-to-sale,shall be handled according to the above principles. However the deferred income tax assets, financialassets satisfying “Enterprise Accounting Standard No.22 Recognition and measuring of financialinstruments”, investme

229、nt properties and biological properties measured by fair value, and rights frominsurance contracts, are not included.(26) Accounting of hedging instrumentsHedging instruments are the financial instruments adopted by the Company to avoid risks offluctuating product prices, namely use the expected cha

230、nge of cash flow of the hedging instruments towholly or partially deduct the change of cash flow of the target products. Hedging instrument used bythe Company is Aluminum Future Contract targeting on purchasing of aluminum materials. TheCompany considers the hedging instrument highly effective only

231、when the following conditions aresatisfied:1. The hedging instrument can effectively neutralize the risks of the target goods caused by changeof cash flow since it started and in the following period.2. The actual effectiveness is between 80% and 125%.281.2.1.7%3%The part of gains or loss from hedgi

232、ng instruments attributable to effective hedging, shall bestraightly recognized as owners equity and demonstrated individually. The amount of the effectivehedging shall be decided by the lower one of absolute values of gain or loss since starting of hedging andthe accumulative variation of cash flow

233、 predicted from the beginning of hedging.When a predictedtransaction makes the Company recognized a financial asset or liability, the gain or loss originallyrecognized as owners equity shall be written over to current income account in the same period with thegain or loss of the financial asset or i

234、ts influence of the Companys gain/loss. Whenthenetlossoriginally recognized to owners equity is fully or partially unrecoverable in succeeding account period,the unrecoverable part shall be written over to current income account. The above hedging accounts areterminated as soon as expiration, sold,

235、terminated, and disqualified.(27) Change of main accounting policies and estimationsChange of Accounting PoliciesNo change of accounting policies occurred in the year.Change of accounting estimationsNo change of accounting estimations occurred in the year.(28) Correction of previous accounting fault

236、sNo correction of previous accounting faults occurred in the report term.III. Taxation(1) Main categories and rates of taxesOperation tax and surtaxesTax itemsBusiness taxVATTax basisincome from curtain wall and metro screen doorinstallation projectsProperty rental incomeSales income of curtain wall

237、 and aluminummaterialsSales income of screen door materialsSales income from LED productsRate3%5%17%17%17%NotesCity maintenanceand construction VAT payable + business taxtaxEducation surtax VAT payable + business taxLocal educationsurchargesVAT payable + business tax1% or 2%Note 1Note 1. Subsidiarie

238、s of the Company located in Shenyang Province are subject to educationalsurcharge at 1% of VAT and operation tax; subsidiaries in other location are subject to educationalsurcharge at 2% of the same. The Company and its subsidiaries located in Shenzhen are subject to 2% of292.25%the “three taxes” si

239、nce January 1, 2011.Enterprise income taxName of companiesThe headquarterFangda DecorationFangda AutomaticShenzhen Fangda Yide New Material Co., Ltd. (FangdaYide)Shenzhen Fangda Gruoke Electronic Optical Tech Co., Ltd.(Fangda Guoke)Shenzhen Woke Semi-conductor Lighting Co., Ltd.(Shenzhen Woke)Fangda

240、 New Material (Jiangxi) Co., Ltd. (Fangda NewMaterial)Fangda AluminiumShenyang Fangda Semi-conductor Lighting Co., Ltd.(Shenyang Fangda)Tax rate24%15%15%24%24%24%12.5%25%25%NotesNote (1)Note (1), (3)Note (1), (2)Note (1)Note (1)Note (1)Note (1), (4)Note (1)Note (1)Dongguan Fangda New Material Co., L

241、td. (Dongguan NewMaterial)Note: (1) The Peoples Congress passed “The Income Tax Law of PRC” (the new Tax Law”) onMarch 16, 2007. The new Tax Law took effect on January 1, 2008. Corporation income tax was reducedfrom 33% to 25%. High-tech enterprises recognized by the national government are subject

242、to 15% ofcorporation income tax. According to document 国发200739 号文 issued by the national government,the Company and the subsidiaries were subject to 15% of corporation tax, whereas since 2011, the taxrate is increased to 24%.(5) According to the Certification of High-tech Enterprise issued by Shenz

243、hen Commission ofTrade Industry and IT, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and ShenzhenLocal Tax Bureau on June 27, 2009, Fangda Automatic was entitled to enjoy 15% of Corporation Tax forthree years since the certification was awarded.(3) According to the Certification of

244、High-tech Enterprise issued by Shenzhen Commission ofTrade Industry and IT, Shenzhen Commission of Finance, Shenzhen National Tax Bureau, and ShenzhenLocal Tax Bureau on October 29, 2009, Fangda Decoration was entitled to enjoy 15% of CorporationTax for three years (including 2009) since the qualifi

245、cations were awarded.(4) As approved by Nanchang High-tech Zone Tax Bureau with document 洪高国税发（2008）74号, Fangda New Material enjoys “2 free 3 half” policy since 2008. The rate is 12.5% since 2010.3.Property taxProperty tax rate applicable to the Company and subsidiaries is 1.2% basing on 70% of the

246、originalvalue of property in Shenzhen. Same for the properties of subsidiaries outside Shenzhen for self use.Leasing property is subject to 12% of tax on rental income.304.1.Personal income taxIndividual income tax of the employees are paid by the Company on behalf.IV. Merger of enterprises and cons

247、olidated financial statements(1) Profiles of the subsidiariesSubsidiaries founded or investedNames ofsubsidiariesOwnershipof thesubsidiaryReg. Add.BusinesspropertyRegisteredcapitalRMB0000LegalrepresentativeBusiness scopeDesigning, manufacturing,FangdaDecorationFully-ownedsubsidiaryShenzhenLtd. liabi

248、lity31,000.00and installation of curtainXiong Jianwei walls, glass shields, doors,windows, fences, andceilings.Designing,developing,technicalinstallation,FangdaAutomaticFully-ownedsubsidiaryShenzhenLtd. liability10,500.00WangShengguoand sales of PSD system;import & export;installation and processing

249、of PSD.FangdaYide Co.Fully-ownedsubsidiaryShenzhenSino-foreignjoint ventureUSD320.00YangXiaozhuanDeveloping, designing,manufacturing of new typecomposite materialsResearching, developing,manufacturing, trading, andinstallation engineering ofFangdaGuokeSubsidiary ofcontrolledsubsidiaryShenzhenLtd. li

250、ability(Sole investmentby legal person)5,000.00Yu Guoansemi-conductor materialand devices, electro-opticaldevices and equipment,electronic displayingdevices, video products;technical consulting andservice; international trade.Production and selling ofnew materials, compoundFangdaNewMaterialFully-own

251、edsubsidiaryNanchangLtd. liability(joint venturebetweencompanies fromTaiwan, HongKong or Macau)USD1,200.00YangXiaozhuanmaterials, curtain walls,doors, windows, metalstructures, metal products,environment protectionproducts, metallurgyequipment, machinery,aluminum products, heatradiationmaterials,mac

252、romolecule materials.Designing, manufacturing,sales and installation ofFangdaAluminiumFully-ownedsubsidiaryNanchangLtd. liability(Joint venturewith foreigninvestedcompany)2,000.00aluminum sections forcurtain walls, doors, andYang windows; decorationXiaozhuan design, water and powersupply equipment,

253、airconditioner installation.House renting, equipmentrenting.HK JunjiaFully-ownedsubsidiaryHKNoneHKD1.00InvestmentShenyangFangdaControlledsubsidiariesShenyangLtd. liability20,000.00WangShengguoManufacturing ofsemiconductor lightingmaterial and chips; lighting31sourceencapsulation;developing, manufact

254、uring,technical consulting ofsemiconductorproducts;lightingdeveloping,designing, manufacturing,engineering,installationandtradingofsemiconductorlightingsystem;productsmaterialsrelatedandtosemi-conductorlighting;trading of constructionmaterial; import and exportagency service of productsand technolog

255、ies.Developing, designing andsales of new constructionmaterial;developing,designing, installation andtrading of curtain walls,PSDproducts,systems,metalLEDroofproducts, and solar-energyproducts;interiorDongguanNewMaterialCo., Ltd.Fully-ownedsubsidiary ofsubsidiaryDongguanLtd. liability(Sole investmen

256、tby legal person)21,280.00Xiong Jianweidecoration; water andpower system installation;installation and trade ofair-conditioning system;designing,installation,trade of lighting system;contracting of overseascurtain wall projects anddomesticbiddingmanpowerinternationalprojects;outsourcing;import and e

257、xport of goodsand technologiesNames ofsubsidiariesFangdaDecorationFangdaAutomaticFangdaYide Co.FangdaGuokeShareproportion(%)100.00100.00100.0064.58Voting rights(%)100.00100.00100.0064.58Actualinvestment atend of termRMB000031,000.0017,877.73USD320.0010,500.00Balance of other itemsactually formed net

258、investment in the subsidiariesConsolidated?YesYesYesYesFangdaNew100.00100.00USD1,200.00YesMaterialFangdaAluminumHK JunjiaShenyangFangda100.00100.0064.58100.00100.0064.582,000.00HKD1.0012,916.00YesYesYesDongguanNewMaterial100.00100.0021,280.00YesCo., Ltd.Names ofsubsidiariesOwnershiptypeOrganizationc

259、odeMinorshareholdersequityAmount for deducting minorshareholders equity in theminor shareholders equityNotes322.FangdaDecorationFangdaAutomaticFangdaYide Co.CorporationCorporationCorporation19244418-275425429-361929454-0FangdaGuokeCorporation72856199-4See notesSee notesFangdaNewMaterialFangdaAluminu

260、mHK JunjiaCorporationCorporationNone74852611-715830664-0NoneShenyangFangdaCorporation66254891-382,362,870.18-1,974,598.07DongguanNewMaterialCorporation56457096-5Co., Ltd.Note: Fangda Guoke is the subsidiary under direct control of Shenyang Fangda. The minorityshareholders equity of Fangda Guoke has

261、already been included in the minority shareholders equity ofShenyang Fangda, thus it is not presented separately in this table.Subsidiaries procured from merger of companies under different controlName of thesubsidiaries(short form)Ownershipof thesubsidiaryReg. Add.BusinesspropertyRegisteredcapital(

262、RMB0000)LegalrepresentativeBusiness ScopeR&D,designing,production,ShenzhenWokeSubsidiary ofcontrolledsubsidiaryShenzhenLtd. liability1,000.00Yu Guoanafter service ofLED products;installation ofLED colordisplayer, cityandroadlighting system.Name of thesubsidiaries(short form)ShenzhenWokeNames ofsubsi

263、diariesShenzhenWokeShareproportion(%)64.58OwnershiptypeCorporationVoting rights(%)64.58Organizationcode72855858-4Actual capitalinput at end ofreport term(RMB0000)1,899.13MinorshareholdersequitySee notesBalance of other items actuallyformed net investment in thesubsidiariesAmount for deducting minors

264、hareholders equity in the minorshareholders equitySee notesConsolidated?YesNoteNote: Shenzhen Woke is the subsidiary under direct control of Fangda Guoke; while Fangda Guokeis the subsidiary under direct control of Shenyang Fangda. The minority shareholders equity of FangdaGuoke and Shenzhen Woke ha

265、s already been included in the minority shareholders equity of ShenyangFangda, thus it is not presented separately in this table.(2) The change of consolidation scopeNo change of consolidation scope in the report term.33111-1V. Notes to the consolidated financial statements(1) Monetary capitalBalanc

266、e of book value at end of termBalance of book value at beginning of termOriginalExchangeTranslated toOriginalExchangeTranslated toItemscurrencyrateRMBcurrencyrateRMBI. CashRMB15,073.3515,073.359,841.079,841.07USDHKD5,409.060.834,498.714,767.800.850934,057.07Cash subtotalII. Bank savings19,572.0613,8

267、98.14RMB427,024,473.37 478,568,182.50478,568,182.50USDHKD101,428.3574.576.560.83665,006.1162.01346,670.4774.576.62270.850932,295,894.5263.45Macao Dollar0.00BanksavingsubtotalIII.monetarycapitalOther427,689,541.49480,864,140.47RMB13,678,509.2325,417,161.5025,417,161.50USD170,469.236.471,103,208.67100

268、.26.6227663.59HKDSubtotalof-other monetarycapitalTotal14,781,717.90442,490,831.4525,417,825.09506,295,863.70Note 1: RMB12 million among the balance of bank deposit at end of year was frozen by the Courtfor the lawsuit involved by Fangda Decoration. This is not regarded as cash equivalent at preparin

269、g ofCash Flow Statement. For details of the case please see Note VII(I)-1.Note 2: Balance of RMB14,781,717.90 under other monetary capital was mainly deposit for bankaccepted notes and letter of guarantee, which are not regarded as cash equivalent at preparing of cashflow statement.(2) Notes receiva

270、ble(1) Category of notes receiveableCategoriesBank acceptanceCommercial acceptanceBalance of book value at end ofterm1,550,000.0034Balance of book value atbeginning of term2,262,000.0014,229,007.92Total1,550,000.0016,491,007.92Note: Notes receivable has decreased by 90.6%, which was mainly due of tr

271、ade acceptance draft.(2) Top 5 bank acceptance drafts endorsed but not due yet are:IssuerDate of issueExpired onAmountShenzhen Tianpai Door & WindowTechnologies Co., Ltd.2011.3.92011.9.93,000,000.00Shenzhen Shezhuangzong DecorationEngineering Co., Ltd.ShenyangYuandaEngineering Co., Ltd.ShenyangYuand

272、aEngineering Co., Ltd.AluminumAluminum2011.5.132011.2.252011.4.192011.11.132011.8.252011.10.132,000,000.001,000,000.001,000,000.00China Construction Co. Division IVLtd.Total2011.5.112011.11.11553,926.267,553,926.26(3) Account receivable(1) Account receivable on categoriesBalance of book value at end

273、 of termCategoriesReceivableswithBook valueAmount ProportionBad debt provisionAmount RateNet amountmajorindividualamount and bad debtprovision providedindividuallyReceivables provided599,466,541.9997.32%106,635,630.4617.79%492,830,911.53bad debt provision ingroupsIncl.Receivable599,466,541.9997.32%1

274、06,635,630.4617.79%492,830,911.53accountsconsolidatednotSub-total of group599,466,541.9997.32%106,635,630.4617.79%492,830,911.53Account receivablewith minor individualamount but bad debt16,499,671.582.68%16,499,671.58100.00%provision is providedTotal615,966,213.57100.00% 123,135,302.0419.99% 492,830

275、,911.53Balance of book value at beginning of termCategoriesReceivableswithBook valueAmount Ratio (%)Bad debt provisionProvidingAmountrate (%)Net amountmajorindividualamount and bad debtprovision providedindividually35ItemsReceivables providedbad debt provision in507,918,512.0496.95%111,244,947.2821.

276、90%396,673,564.76groupsIncl.Receivableaccountsnot507,918,512.0496.95%111,244,947.2821.90%396,673,564.76consolidatedSub-total of group507,918,512.0496.95%111,244,947.2821.90%396,673,564.76Account receivablewith minor individualamount but bad debt15,988,232.583.05%15,988,232.58100.00%provision is prov

277、idedTotal523,906,744.62100.00%127,233,179.8624.29%396,673,564.76Including: foreign currenciesBalance of book value at end of termOriginal Exchange Translated toBalance of book value at beginning oftermOriginal Exchange Translated tocurrencyrateRMBcurrencyrateRMBUSD2,847,661.286.4818,455,737.46 3,413

278、,051.326.62 22,603,614.98HKD9,256,528.950.837,697,729.47 9,256,528.950.857,876,658.18OthersTotal5,805.726.6738,736.9226,192,203.8530,480,273.16Account receivables on which bad debt provisions are provided on age basis in the group:Balance of book value at end of termAgewithin 1 year1-2 yrs2-3 yrsOve

279、r 3 yrsTotalAmount313,194,358.3778,126,168.8073,230,081.10134,915,933.72599,466,541.99Proportion50.85%12.68%11.89%21.90%97.32Bad debtprovision9,396,022.377,812,616.8821,969,024.3367,457,966.88106,635,630.46Net amount303,798,336.0070,313,551.9251,261,056.7767,457,966.85492,830,911.53Balance of book v

280、alue at beginning of termAgewithin 1 year1-2 yrs2-3 yrsOver 3 yrsTotalAmount236,060,382.7152,161,878.3454,506,462.84165,189,788.15507,918,512.04Proportion45.06%9.96%10.40%31.53%96.95%Bad debtprovision7,081,926.525,216,187.8416,351,938.8582,594,894.07111,244,947.28Net amount228,978,456.1946,945,690.5

281、038,154,523.9982,594,894.08396,673,564.76Details of receivable accounts with minor amount but provided of bad debt provisions individually:Description ofthe receivableaccountsBook value atend of termBad debtprovisionRateReasonCurtainprojectreceivablewall803,340.45803,340.45100.00%Aged over 5 years,

282、notexpectable to be retrieved36Description ofthe receivableaccountsBook value atend of termBad debtprovisionRateReasonCurtainprojectreceivablewall660,625.41660,625.41100.00%Aged over 5 years,expectable to be retrievednotTrade receivable648,100.95648,100.95100.00%Aged over 5 years,expectable to be re

283、trievednotCurtainprojectreceivablewall430,629.58430,629.58100.00%Aged over 5 years,expectable to be retrievednotTrade receivable433,868.60433,868.60100.00%Aged over 5 years,expectable to be retrievednotCurtainprojectreceivableCurtainprojectreceivableCurtainprojectreceivableCurtainprojectreceivablewa

284、llwallwallwall354,177.00346,573.70316,861.34300,000.00354,177.00346,573.70316,861.34300,000.00100.00%100.00%100.00%100.00%Aged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievedno

285、tnotnotnotTrade receivable487,785.66487,785.66100.00%Aged over 5 years,expectable to be retrievednotTotal4,781,962.694,781,962.69Note: As of December 31, 2011, account receivables, on which the Company has provided full baddebt provision, was amounted to RMB16,499,671.58.(2) There is no receivable a

286、ccount that have been fully provided of bad debt provision, or with greatportion, and retrieved or written back in the report term, or such account with major amount retrieved inthe report term.(3) No receivable account has been deducted in current year.(4) No receivable account due from shareholder

287、s with over 5% (included) of the Companys sharesor related parties.(5) Top 5 of receivables at end of report term:Name of the companiesShenzhen Greenview Property Co.,Ltd.Dalian Wanda CommercialRelationwith theCompanyClientClientAmount at endof term36,302,792.4424,098,058.91AgeWithin 1yearWithin 1%

288、in totalreceivables5.89%3.91%37Property Co., Ltd.yearHainan Sanya Phoenix IslandDevelopment Co., Ltd.XinMoer Property Development(Shenyang) Co., Ltd.Shenzhen Metro Group Co.,Ltd.TotalClientClientClient19,934,639.7732,358,942.7523,166,947.67135,861,381.54Within 1yearWithin 1yearWithin 1year3.24%5.25%

289、3.76%22.06%(4) Other account receivable(1) Other account receivable on categoriesBalance of book value at end of termCategoriesBook valueBad debt provisionNet amountAmountRatio (%)AmountProvidingrate (%)Other receivables with majorindividual amount and baddebt provision provided1,220,316.841.87%1,22

290、0,31.84100.00%individuallyOther receivables providedbad debt provision in groupsIncl. Receivable accounts notconsolidatedSub-total of group61,048,293.2961,048,293.2961,048,293.2993.76% 9,544,851.7593.76% 9,544,851.7593.76% 9,544,851.7515.63%15.63%15.63%51,503,441.5451,503,441.5451,503,441.54Other ac

291、count receivable withminor individual amount but2,841,928.164.36% 2,841,928.16100.00%bad debt provision is providedTotal65,110,538.29 100.00%13,607,096.7520.90%51,503,441.54Balance of book value at beginning of termCategoriesBook valueAmount Ratio (%)Bad debt provisionProvidingAmountrate (%)Net amou

292、ntOther receivables with majorindividual amount and baddebt provision provided1,220,316.842.33% 1,220,316.84100.00%individuallyOther receivables providedbad debt provision in groupsIncl. Receivable accounts notconsolidatedSub-total of groupOther account receivable with48,373,161.4748,373,161.4748,37

293、3,161.472,841,928.1692.25% 9,137,896.6092.25% 9,137,896.6092.25% 9,137,896.605.42% 2,841,928.1618.89%18.89%18.89%100.00%39,235,264.8739,235,264.8739,235,264.8738Itemsminor individual amount butbad debt provision is providedTotal52,435,406.47100.00%13,200,141.6025.17%39,235,264.87Other account receiv

294、ables on which bad debt provisions are provided on age basis in the group:Balance of book value at end of termAgewithin 1 year1-2 yrs2-3 yrsOver 3 yrsTotalAmount39,956,630.933,488,789.084,091,648.6413,511,224.6461,048,293.29Proportion61.37%5.36%6.28%20.75%93.76%Bad debtprovision1,212,866.02348,878.9

295、11,227,494.596,755,612.239,544,851.75Net amount38,743,764.913,139,910.172,864,154.056,755,612.4151,503,441.54Balance of book value at beginning of termAgewithin 1 year1-2 yrs2-3 yrsOver 3 yrsTotalAmount26,630,513.013,702,868.955,249,702.0012,790,077.5148,373,161.47Proportion50.79%7.06%10.01%24.39%92

296、.25%Bad debtprovision798,915.40370,286.901,573,293.626,395,400.689,137,896.60Net amount25,831,597.613,332,582.053,676,408.386,394,676.8339,235,264.87Including: foreign currenciesBalance of book value at end of termOriginal Exchange Translated toBalance of book value at beginning oftermOriginal Excha

297、nge TranslatedcurrencyrateRMBcurrencyrateto RMBUSD83,464.956.47540,151.77107,953.276.6227714,942.12Total540,151.77714,942.12Other account receivable with major amount and provided bad debt provision individually or minoramount but bad debt provision provided individually:Description ofother receivab

298、lesBook value atend of termBad debtprovisionRateReasonDepositreceivableDepositreceivableDepositreceivableDepositreceivableDepositreceivable1,220,316.84300,000.00224,875.84159,800.00150,000.001,220,316.84300,000.00224,875.84159,800.00150,000.00100.00%100.00%100.00%100.00%100.00%Aged over 5 years,expe

299、ctable to be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievednotnotnotnotnotTotal2,054,992.682,054,992.68Note : Receivables being provided full bad debt provisions

300、 this year were totaled to39RMB4,062,245.00.(2) There is no receivable account that have been fully provided of bad debt provision, or with greatportion in previous year, but retrieved or written back in the report term, or such account retrieved orwritten back at large percentage or major amount.(3

301、) No offsetting of other receivable account.(4) No other receivable account due from shareholders with over 5% (included) of the Companysshares or related parties.(5) Top 5 debtors of other receivable accounts:Name of thecompaniesSpecificationRelation withthe CompanyAmount atend of termAgePortion in

302、 totalother receivableaccounts (%)Wang Weihongprojectmanagement feecontractor3,154,006.68 Within 1 year4.84%ZhangjiakouChengtouCommercialDepositClient3,120,543.15 Within 1 year4.79%Centerprojectwithin 1 yr /Xin Songmanagementcontractor2,740,327.611-2 yrs /2-34.21Finance Bureau offeeyrsNanchang Hi-te

303、ch Land retrievingDevelopment compensationauthority ofland property2,604,216.08 within 1 year4.00%ZoneKunmingConstructionBidding depositClient2,500,000.00within 1 yr3.84%Trade CenterTotal14,119,093.5221.68(5) Prepayment(1) Demonstrated by ages:Balance of book value at end of termAgewithin 1 year1-2

304、yrs (included)2-3 yrs (included)Over 3 yrsTotalAmount33,438,381.10103,298.77970,751.02551,799.9835,064,230.87Proportion95.36%0.29%2.77%1.57%100.00%Bad debtprovision1,443.3710,329.88291,225.31269,232.34572,230.90Net amount33,436,937.7392,968.89679,525.71316,430.5034,525,862.83Balance of book value at

305、 beginning of termAgeAmountProportionBad debtprovisionNet amount40within 1 year1-2 yrs (included)2-3 yrs (included)Over 3 yrsTotal18,167,810.47918,561.951,101,998.54649,879.9920,838,250.9587.18%4.41%5.29%3.12%100.00%1,443.3710,329.88291,225.31269,232.34572,230.9018,166,367.10908,232.07810,773.23380,

306、647.6520,266,020.05Note: Book balance of prepayment has increased by 70.36% at the end of term over the beginningof term, which was caused by expanding of curtain wall business, and increasing of prepaid installationfee and trades.(2) Other top 5 debtors of prepayments:Name of thecompaniesShenzhen Z

307、honganLianfa Labor ServiceCo., Ltd.Relationwith theCompanySupplierBalance ofbook value atend of term5,126,582.91% in totalprepayment14.61%Date ofprepayment2011Reason ofunsettledService notprovided yetGuangdongXingfaRights onAluminum Co., Ltd.Suppliers1,718,431.944.90%2011goods nottransferredNanchang

308、 QingyunpuJiahua New-type Walland Glass FirmSupplier1,548,292.724.41%December2010Rights ongoods nottransferredFujianMinfaRights onAluminum Co., Ltd.Supplier1,114,391.533.18%2011goods nottransferredShenzhen ZhongshunLabor OutsourcingCo., Ltd.Supplier1,095,380.003.12%2011Service notprovided yetTotal10

309、,603,079.1030.21%(3) No prepayment account involved with shareholders with over 5% (included) of the Companysshares or related parties.(6) Inventories(1) Details of inventoriesBalance of book value at end of termBalance of book value at beginning of termItemsRawmaterialsProduct inprocessAmount38,160

310、,358.6613,004,518.31Impairmentprovision225,543.53Book value37,934,815.1313,004,518.31Amount56,115,354.6543,221,748.57Impairmentprovision225,543.53Book value55,889,811.1243,221,748.57Finishedgoods in18,897,114.822,161,154.6116,735,960.2114,201,337.842,224,683.5411,976,654.30stockAssetformed by177,033

311、,139.92177,033,139.92164,193,924.07164,193,924.0741ItemsBalance of book value at end of termBalance of book value at beginning of termItemsAmountImpairmentprovisionBook valueAmountImpairmentprovisionBook valueconstructioncontractLow priceconsumableOEMmaterialsOn-roadgoods205.051,862,246.001,621,035.

312、10205.051,862,246.001,621,035.10659,849.043,042,245.471,301,253.84659,849.043,042,245.471,301,253.84Total250,578,617.862,386,698.14248,191,919.72282,735,713.482,450,227.07280,285,486.41(2) Change of inventory impairment provisionsCategoriesRaw materialsProducts in stockTotalBalance ofbook value atbe

313、ginning ofterm225,543.532,224,683.542,450,227.07Providedthis termDecreased this termWrittenTransferredback63,528.9363,528.93Balance ofbook value atend of term225,543.532,161,154.612,386,698.14(3) Basis of providing impairment provision and situation of writing backPercentage ofamount writtenCategori

314、esBasis of providing impairmentprovisionReason of written backback in thebalance of theinventory at endof report termRaw materialsProducts in stockRealizable net value lowerthan realizable costRealizable net value lowerthan realizable cost(7) Available-for-sale financial assetDisposable financial as

315、sets are categorized as the following:Available-for-sale bondsFair value at end of termFair value at beginning of termAvailable-for-saleinstrumentsequity4,312,000.0004,347,000.00OthersTotalLess: impairment provision foravailable-for-sale financial assetsNet amount4,312,000.0004,312,000.0004,347,000.

316、004,347,000.00Note 1: The available-for-sale financial asset is the 700,000 current shares of Tianjing GlobalMagnetic Card Co., Ltd.42-(8) Investment properties（1） Change of investment properties on fair value basis:Increased this termDecreased this termItemsFair value atbeginning of PurchasedtermFo

317、r own useortransferredfrominventoryGain/lossfromchange offair valueDisposedFair value atTransferred end of termfor own useI. Total costs1. Houses &buildings2. Land usingrightsII. Total of fair188,914,883.84188,914,883.841,359,927.84 187,554,956.001,359,927.84 187,554,956.00valuefluctuation1. Houses

318、&buildings82,311,448.8982,311,448.895,082,327.665,082,327.66409,266.74 86,984,509.81409,266.74 86,984,509.812. Land usingrightsIII. Total ofinvestmentproperty bookvalue1. Houses &buildings271,226,332.73271,226,332.735,082,327.665,082,327.661,769,194.58 274,539,465.811,769,194.58 274,539,465.812. Lan

319、d usingrightsNote 1: Investment property cost has decreased by RMB1,359,927.84, which was caused byadjusting of the 8th floor of Fangda Building from rental property to self-owned property. This hasdecreased by investment property cost by RMB1,359,927.84 and the accumulated fluctuation of fairvalue

320、by RMB409,266.74.Note 3: Among the investment properties, Fangda Technology Building (with book balanceRMB187,010,542.16) has been set on pledge for loans. See Note V (18).(2) Property license not obtained yet:Among the investment property, the workshop No.2 and No.3 located on Beihuan Road inNansha

321、n Shenzhen have not been granted the certificate of property, their book value at end of year wasRMB28,084,038.20.(3) Property converting and change of measurement basisDecrease of investment property was caused by adjusting of the 8th floor of Fangda Building fromrental property to self-owned prope

322、rty.(9) Fixed assets(1) Change of fixed assets and accumulated depreciations:ItemsI. Total value of originalBalance of bookvalue atbeginning ofterm384,511,171.89Increased thisterm71,991,445.39Decreased thisterm6,508,785.19Balance ofbook value atend of term449,993,832.0943ItemsBalance of bookvalue at

323、beginning oftermIncreased thistermDecreased thistermBalance ofbook value atend of termfixed assets1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevicesII. Total of accumulativedepreciation1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevicesIII. Total

324、of fixed asset netvalue1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevices212,269,992.86132,090,633.9611,248,300.7828,902,244.29142,559,061.2828,895,411.0291,185,236.256,883,467.4915,594,946.52241,952,110.61183,374,581.8440,905,397.714,364,833.2913,307,297.7726,063,985.8541

325、,402,155.32215,816.024,309,488.206,107,321.952,959,567.251,570,094.52344,613.421,233,046.7665,884,123.4423,104,418.6039,832,060.80-128,797.403,076,441.441,382,131.053,304,418.2312,680.001,809,555.914,994,006.37890,903.492,927,229.041,175,873.841,514,778.82491,227.56377,189.1912,680.00633,682.07236,9

326、51,847.66170,188,371.0511,451,436.8031,402,176.58143,672,376.8630,964,074.7889,828,101.737,228,080.9115,652,119.44306,321,455.23205,987,772.8880,360,269.324,223,355.8915,750,057.14IV. Total of accumulativefixed assets impairmentprovision1. Houses & buildings1,397,396.095,270.201,392,125.892. Machine

327、ry1,397,396.095,270.201,392,125.893. Automobile4. Electronics and otherdevicesV. Total of fixed asset bookvalue1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevices240,554,714.52183,374,581.8439,508,001.624,364,833.2913,307,297.7765,884,123.4423,104,418.6039,832,060.80-128,79

328、7.403,076,441.441,509,508.62491,227.56371,918.9912,680.00633,682.07304,929,329.34205,987,772.8878,968,143.434,223,355.8915,750,057.14Note 1: RMB6,107,321.95 of depreciation provided this term.Note 2: The original value of fixed asset increased by RMB71,991,445.39, includes: retrieving of creditin te

329、rm of property by Decoration Co. with amount of RMB24,197,300.00; construction-in-processtransferred to fixed asset with amount of RMB42,564,361.92; and investment properties adjusted toself-use, and newly purchased properties.Note 3: Original value of fixed assets reduced by RMB6,508,785.19, mainly

330、 caused by disposal,44&Itemsdiscarding of fixed assets.(2) Property license not obtained yet:CategoriesDescription ofpropertyOriginal bookvalueAccumulateddepreciation:Net bookvalueNotesHousesbuildingsHouses inUrumuqi686,672.0058,366.95Idle, under628,305.05 procedures ofproperty certificateHousesbuil

331、dingsHousesbuildingsHousesbuildingsHousesbuildingsHousesbuildingsTotal& Multi-functionbuildingOffice buildingWorkshop B-1Workshop B-2Dalian WorldTrade Tower4,095,350.266,769,642.0018,966,977.906,495,786.1524,197,300.0061,211,728.311,493,500.15 2,601,850.112,495,288.56 4,274,353.444,803,057.94 14,163

332、,919.961,644,944.87 4,850,841.2824,197,300.0010,495,158.47 50,716,569.84Under procedures ofproperty certificateUnder procedures ofproperty certificateUnder procedures ofproperty certificateUnder procedures ofproperty certificateUnder procedures ofproperty certificate(10) Construction in process(1) C

333、onstruction in process:Balance of book value at end of termImpairment Net bookAmountprovision valueBalance of book value at beginning oftermImpairment Net bookAmountprovision valuePhase I pipes,roads, and fenceEquipment to bereinstalled11,073,061.6111,073,061.61 9,573,061.6137,192,046.309,573,061.61

334、37,192,046.30Equipment to beinstalled4,753,264.024,753,264.02 8,943,256.888,943,256.88Fangda NanfangScience & Tech 9,225,304.29Garden9,225,304.29Others1,623,014.941,623,014.94 1,054,015.851,054,015.85Total26,674,644.8626,674,644.86 56,762,380.6456,762,380.64A、 Profile of major construction in proces

335、s and changesProjectBudgetFundrecourseInitial ammountIncl. InterestAmountcapitalizationIncreased this termIncl. InterestAmountcapitalizationPhase I pipes,roads,and RMB9 mil. Independent 9,573,061.611,500,000.00fenceFangdaNanfangScienceTech GardenEquipment& RMB115.05mil.recruited9,225,304.29tobe37,19

336、2,046.30220,835.88reinstalled45Total(Continue)46,765,107.91Decreased this termIncl.10,946,141.17Amount at end of term% ofProjectAmountTransferred tofixed assetAmountIncl. Interestcapitalizationinvestmenton budgetthis periodPhase I pipes, roads,and fenceFangdaNanfang11,073,061.61123%Science&Tech9,225

337、,304.298.01%GardenEquipment to bereinstalled37,412,882.18 37,412,882.18Total37,412,882.18 37,412,882.1820,298,365.9A、 No impairment occurred about construction-in-process at end of report term(11) Fixed asset disposalItemsFixed asset to bediscardedTotalBalance of book valueat end of term1,442,705.89

338、1,442,705.89Balance of book valueat beginning of term586,285.67586,285.67Reason of transferringto disposalto be discarded(12) Intangible assets and development expensesA、 Intangible assetsItemsI. Total of intangible asset initial valueLand using rights of Fangda Town (Phase I)(Note 2)Land using righ

339、ts of Fangda Town (Phase II)(Note 3)Balance ofbook value atbeginning ofterm137,634,777.728,543,250.004,783,050.00Increased thisterm650,764.65Decreasedthis termBalance of bookvalue at end ofterm138,285,542.378,543,250.004,783,050.00Land using rights of Fangda Science & TechGarden located in Gaoxin Ro

340、ad, Nanchang(Note 4)Land using rights of Shenyang Fangda (Note5)11,064,548.4142,038,791.2311,064,548.4142,038,791.23Land using rights in Dongguan (Note 6)Patent and classified techComputer software40,006,806.7527,380,919.893,817,411.4434,659.00453,886.00162,219.6540,041,465.7527,834,805.893,979,631.

341、09II. Total ofamortizationintangibleasset23,104,199.572,583,514.2725,687,713.8446ItemsFangda Town land using right (Phase I)Fangda Town land using right (Phase III)Land using rights of Fangda Science & TechGarden located on Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand using rights i

342、n DongguanPatent and classified techComputer softwareIII. Total of book net value ofintangible assetsFangda Town land using right (Phase I)Fangda Town land using right (Phase III)Land using rights of Fangda Science & TechGarden located on Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand

343、 using rights in DongguanPatent and classified techComputer softwareBalance ofbook value atbeginning ofterm3,901,567.761,331,282.251,198,529.242,585,514.3066,678.0112,591,549.481,429,078.53114,530,578.154,641,682.243,451,767.759,866,019.1739,453,276.9339,940,128.7414,788,799.452,388,903.87Increased

344、thisterm72,715.6847,830.50130,597.61420,417.90400,472.451,293,099.65218,380.48-1,932,749.62-72,715.68-47,830.50-130,597.61-420,417.90-365,813.45-839,213.65-56,160.83Decreasedthis termBalance of bookvalue at end ofterm3,974,283.441,379,112.751,329,126.853,005,932.20467,150.4613,884,649.131,647,459.01

345、112,597,828.534,568,966.563,403,937.259,735,421.5639,032,859.0339,574,315.2913,949,585.802,332,743.04IV. Total of accumulated intangibleasset impairment provisionsFangda Town land using right (Phase I)Fangda Town land using right (Phase III)Land using rights of Fangda Science & TechGarden located on

346、 Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand using rights in DongguanPatent and classified techComputer softwareV. Total of intangible asset book valueFangda Town land using right (Phase I)Fangda Town land using right (Phase III)Land using rights of Fangda Science & TechGarden loca

347、ted on Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand using rights in DongguanPatent and classified techComputer software114,530,578.154,641,682.243,451,767.759,866,019.1739,453,276.9339,940,128.7414,788,799.452,388,903.87-1,932,749.62-72,715.68-47,830.50-130,597.61-420,417.90-362,373

348、.26-842,653.84-56,160.83112,597,828.534,568,966.563,403,937.259,735,421.5639,032,859.0339,577,755.4813,946,145.612,332,743.04Note 1: RMB2,583,514.27 amortized in the report term.47Note 2: In 1995, Hengxiang Jingfa Co. inputted 3,797.40 square meters of land valuedRMB8,543,250.00 to the Company when

349、the Company was incorporated. The land was verified byShenzhen Asset Appraisal Firm with the appraisal report 深资综评报字1995第 20 号 to value ofRMB8,543,250.00. .Note 3: According to contract 深地合字(97)012 号 engaged between the Company and ShenzhenBureau of Land Planning, the Company purchased the land usin

350、g rights attached to land of 15,943.60square meters with Ref. number T405-008 by RMB4,783,050.00.Note 4: In March 2003, according to the contract engaged between Jiangxi Nanchang High-techIndustry Zone Administration Committee and the Company, Fangda New Material Co., Ltd. hadpurchased the land of 1

351、77,047.14 square meters to the west of Aixi Lake and north of Gaoxin Road, withprice of RMB10,622,828.28.Note 5: Shenyang Fangda land using right was inputted by Shenyang Hunnan New DistrictNational Asset Administration Co., Ltd. the minority shareholder, to Shenyang Fangda in term ofinvestment.Note

352、 6: According to the “Land Using Right Contract” entered by Guangdong Dongguan NationalLand Resource Bureau and Dongguan New Material Co., Ltd. one of the subsidiaries of the Company,the Company purchased the land using right of 66666 square meters (编号 2010T107 号) withRMB40,006,806.75.A、 Expenditure

353、s of development projectsItemsR&D expenseTotalBalance ofbook value atbeginning ofterm1,182,970.281,182,970.28Increasedthis term151,364.02151,364.02Decreased this termRecognizedAccounted intoascurrent incomeintangibleaccountasset429,201.00429,201.00Balance ofbook value atend of term905,133.30905,133.

354、30Note 1: Intangible asset formed by R&D accounted for 11.07% of the total intangible assets.(13) GoodwillName of the CompaniesBalance ofbook valueat beginningof termIncreasedthis termDecreasedthis termBalance ofbook valueat end oftermImpairmentprovision atend of termShenzhen Woke8,197,817.298,197,8

355、17.29Fangda Yide Co.Total746,519.628,944,336.91746,519.628,944,336.91746,519.62746,519.62Note 1: The Company acquired the 100% control power over Shenzhen Woke Co. by merger ofenterprise under common control in May 2007. The difference between the initial investment cost andrecognizable fair value o

356、f the investee has formed the goodwill of RMB8,197,817.29. No evidence of48Itemsimpairment shown with Shenzhen Woke Co. thus no impairment provision was provided.Note 2: The Company acquired the minority share equities of Fangda Yide Co. in August 2007. Thedifference between the initial investment c

357、ost and recognizable fair value of the investee has formed thegoodwill of RMB746,519.62. For Fangda Yide was not in good business operation for successive years,impairment provision has been provided fully upon the goodwill.(14) Long-term amortizable expensesItemsBalance ofbook valueat beginningof t

358、ermIncreasedthis termAmortizedthis termOtherdecrease ofthis termBalance ofbook valueat end oftermUpgrading of workshoprented byDecorationFangdaNanchang2,202,981.4433,750.00115,293.522,121,437.92BranchUpgrading of workshoprentedbyFangda623,212.2769,318.20553,894.07DecorationUpgrading of workshoprente

359、d byDecorationFangdaSanhe235,877.9450,545.28185,332.66BranchTotal3,062,071.6533,750.00235,157.002,860,664.65(15) Deferred income tax asset and deferred income tax liabilities(1) Deferred income tax asset and deferred income tax liabilities already recognizedA. Details of un-neutralized deferred inco

360、me tax asset and liabilities:Balance of book value at end of termBalance of book value at beginning oftermItemsDeductibleprovisionaldifferencesDeferred incometax assetDeductibleprovisionaldifferencesDeferred incometax assetAssetprovisionimpairment146,852,113.4225,876,748.35153,793,200.8826,448,912.0

361、8Openning expensesNeutralizable lossesExpectible liabilitiesOthersTotal58,599.0020,598,555.61883,881.353,908,732.47172,301,881.8514,649.754,944,458.31132,582.20488,591.5631,457,030.1783,043.8720,406,633.15347,657.52174,630,535.4212,456.584,898,982.9152,148.6331,412,500.20Balance of book value at end

362、 of term49Balance of book value at beginning oftermAdjustmentofTaxableprovisionaldifferenceDeferred incometax liabilityTaxableprovisionaldifferenceDeferred incometax liabilityinvestment property121,837,272.5428,930,168.72115,022,192.9327,342,717.60fair valueAdjustmentofsellablefinancial3,912,000.009

363、38,880.003,947,000.00947,280.00asset fair valueChange of fair valuecaused by shareoption contracts-Total125,749,272.5429,869,048.72118,969,192.9328,289,997.60(2) Particulars about deductible provisional difference or losses by non-recognized deferred incometax assetsItemsAsset impairment provisionDe

364、ductible lossesTotalEnd of term26,881,141.4269,848,705.5696,729,846.98Beginning of term27,185,509.6666,536,383.6993,721,893.35Note: In coming periods, none of Fangda Yide, Fangda Guoke, and Fangda Aluminum maypossibly acquire taxable gains enough to offset deferred income tax asset.(3) Deductible lo

365、sses of non-recognized deferred income tax assets will due in following years:Year201120122013201420152016TotalEnd of term23,845,037.3812,126,192.0610,350,213.8317,726,273.125,800,989.1769,848,705.56Beginning of term3,197,346.0411,917,349.1512,126,192.0621,401,565.9617,893,930.4866,536,383.69NoteWit

366、houtconsideringearliertermination ofsubsidiaries(16) Asset impairment provisionItemsBalance ofbook value atbeginning oftermIncreasedthis termDecreased this termWritten back TransferredBalance ofbook value atend of termBad debt provision141,005,552.36 6,264,548.84 9,951,402.044,069.47137,314,629.69In

367、ventoryimpairmentprovisionFixedasset2,450,227.0763,528.932,386,698.14impairmentprovision1,397,396.095,270.201,392,125.89Goodwillimpairment746,519.6250746,519.62ItemsBalance ofbook value atbeginning oftermIncreasedthis termDecreased this termWritten back TransferredBalance ofbook value atend of termp

368、rovisionTotal145,599,695.14 6,264,548.84 9,951,402.0472,868.60141,839,973.34(17) Assets with constrained ownershipAssets with constrained ownership are:Category ofassetsBalance ofbook value atbeginning oftermIncreasedthis termDecreasedthis termBalance ofbook value atend of termReason ofrestriction o

369、nproperty rightsAsset under guaranteeFangdaTechBuilding(The184,286,809.08 4,492,927.66 1,769,194.58 187,010,542.16Loan pledgepart for rent)FangdaTechBuilding(The13,791,148.03 1,955,646.58175,479.3815,571,315.23Loan pledgepart for own use)Total184,286,809.08 4,492,927.66 1,769,194.58 187,010,542.16(1

370、8) Short-term loansShort-term loans are:CategoriesBorrowings withsecurity and guaranteeGuarantee loanTotalBalance of book valueat end of term200,000,000.00183,000,000.00383,000,000.00Balance of book value atbeginning of term200,000,000.00197,000,000.00397,000,000.00NoteNote 1Note 2Note 1: The short-

371、term borrowing of RMB200 millionwas secured by Fangda Tech Building(limited to RMB113 million), and guaranteed by Fangda Decoration (limited to RMB50 million),Fangda Automatic (limited to RMB50 million), and Fangda New Material (limited to RMB50 million).Note 2: In the guaranteed loans, RMB73 millio

372、n was the short-term loans obtained by Fangda NewMaterial and secured by the Company; the rest RMB90 million was the short-term loans obtained byFangda Decoration and secured by the Company. RMB20 million was the short-term loans obtained byFangda Automatic. For details please go to Note VI (II) 2.(

373、19) Notes payableCategoriesBank acceptanceCommercial acceptanceBalance of book value at end ofterm35,760,723.635,891,845.1451Balance of book value atbeginning of term59,241,926.92984,091.73-Total41,652,568.7760,226,018.65Note 1: Amount due in next fiscal term will be RMB41,652,568.77.Note 2: The out

374、standing book value of notes payable has increased by 30.84% over the report term,which was caused by payment disbursed for notes.(20) Account payable(1) As of June 30, 2011, payable accounts with large amount and aged over one year:SupplierFangda Buildingprovisional bookingDeawoo Group (SouthKorea)

375、Fujian QuanzhouSansong CeramicDevelopment Co., Ltd.TotalAmount1,278,967.69900,000.00880,000.003,058,967.69DescriptionProject paymentTradeTradeReason of overdueNot claimed by thecreditorNot claimed by thecreditorNot claimed by thecreditor(2) No payables due to shareholders with 5% or above shares of

376、the Company, nor any relatedparties.(21) Prepayment received（1） Advances received with large amount and aged over one yearCausation of notItemsAmountDate of occurContentssettledLineNo.2ofAdvances forProject notWuhan Metro7,640,456.002010.01project workscommencedTotal7,640,456.00(2) No prepayment rec

377、eived from shareholders with 5% or over shares of the Company, nor relatedparties.(22) Employees wage payableDetails of remunerations payable to the employeesItemsBalance ofbook value atbeginning oftermIncreased thistermDecreasedthis termBalance ofbook value atend of termWage, bonus, allowancesubsid

378、iesand10,008,820.62 53,273,766.37 56,174,271.267,108,315.73Employee welfare466,625.62466,625.62Social insuranceIncl. Medical insuranceBasic pensionUnemployment insuranceLabor injury insurance2,267,776.02547,030.981,580,801.8753,951.9060,035.282,267,635.52547,030.981,580,661.3753,951.9060,035.28140.5

379、0140.5052-ItemsItemsItemsBreeding insuranceHousing fundDismissing policyTrade union and educationallowanceNon-monetary welfareCompensations for disengagementother than dismissing policyOthersTotalBalance ofbook value atbeginning ofterm4,038,900.3814,047,721.00Increased thisterm25,955.99959,282.60-11

380、,892.9213,537.50-56,992,881.03Decreasedthis term25,955.99959,282.60-115,634.2413,537.50-59,996,986.74Balance ofbook value atend of term-3,935,159.06-11,043,615.29(23) Tax payableBalance of book value at end of termBalance of book value at beginningof termVATBusiness taxEnterprise income taxPersonal

381、income taxCity maintenance andconstruction taxLand using taxProperty taxEducation surtax-1,853,670.6416,706,353.308,146,210.93509,001.601,732,308.43202,954.53663,829.27843,302.31-9,822,981.9816,951,513.2710,240,451.93508,580.441,795,117.16221,094.98700,416.21874,485.65LocalsurchargesOther taxesTotal

382、education35.6449,110.0826,999,435.451,299.1150,666.9421,520,643.71(24) Interest payableBalance of book value at end of termBalance of book value at beginningof termShort-term borrowinginterests payableTotal548,793.05548,793.05610,850.84610,850.84(25) Other account payable(1) No other payables due to

383、 shareholders with 5% or above of shares of the Company, nor relatedparties.(2) Other payables with large amount in detail:ItemsBalance of book value at endof term53DescriptionNingbo Lailai Energy-saving Doorsand Windows Co., Ltd.2,060,000.00DepositTransportation of project worksJiangxi Changxing Lo

384、gistics Co.,Ltd.Jiangsu Tianyi Garment Co., Ltd.Offshore freightTotal1,825,428.091,550,250.371,500,000.001,340,245.568,275,924.02TransportationTransportation payableDepositTransportation payable(3) Large amount other payables aged over one year:NingboItemsLailaiBalance of bookvalue at end of termDes

385、criptionReason of overdueEnergy-saving Doors and2,060,000.00Project depositconstruction in processWindows Co., Ltd.Jiangsu Tianyi GarmentCo., Ltd.Shenzhen Yachang ColorPrinting Co., Ltd.Total1,500,000.00950,000.004,510,000.00Project depositDepositNot claimed by thecreditorOn rental(26) Expectable li

386、abilitiesCategoriesMaintenance expensesTotalBalance of book value at end ofterm883,881.35883,881.35Balance of book value at beginningof term347,657.52347,657.52(27) Other non-recurring liabilitiesBalance of bookBalance of bookItemsApplication and demonstration project of LED lighting tech(Note 1)Opt

387、ical crystal project (Note 2)Environmental protection and energy saving project (Note 3)Graphic grounding production and expanded chip production(Note 4)Purchasing of equipment for development of high-powerchips (Note 5)Fund for optical products (Note 6)High-power-low-attenuation plug in LED technol

388、ogiesTotalvalue at end ofterm334,850.001,200,000.00500,000.00500,000.00750,000.00480,000.00800,000.004,564,850.00value atbeginning of term720,000.001,200,000.00500,000.00500,000.00850,000.00480,000.004,250,000.00Note 1: According to document 粤科计字2008145 号 issued by Guangdong Department ofScience and

389、 Technologies, and Guangdong Department of Finance on November 24, 2008, Fangda54Guoke was assigned to undertake the 揹 emonstrative project of LED production technologies with thegovernment fund of RMB3.5 million. According to the agreement engaged between Fangda Guoke andShenzhen Technologies and I

390、nformation Committee on January 12, 2010, and the contract 深科工贸信计财字200982 号, Shenzhen Technologies and Information Committee provided RMB1 million in2010 to support the project led by Fangda Guoke.Note 2: According to the contract engaged between Shenzhen Technologies and Information Bureauand Fangd

391、a Guoke Co. (深科信（2009）202 号) in July 2009, the Bureau provided RMB1.2 million toFangda Guoke to support the development of “photon crystal production technologies”. As of end of thisterm, this project is under development.Note 3: According to the notice 沈新区委发（2009）52 号 issued by Shenyang Hunnan New

392、ZoneAdministration Committee on August 26, 2009, the Committee provided RMB500 thousand to ShenyangFangda to support the energy-saving projects. As of June 30, 2011, this project was not throughacceptance inspection yet.Note 4: According to the notice 沈新区委发（2009）72 号 issued by Shenyang Hunnan New Zo

393、neAdministration Committee on August 26, 2009, the Committee provided RMB500 thousand to ShenyangFangda to support the production technologies of graphic background and extension and chips projects.As of June 30, 2011, this project was not through acceptance inspection yet.Note 5. According to docum

394、ent 深科信2005401 号, Shenzhen Bureau of Finance and FangdaGuoke entered the “Contract on using of technical development fund”. As of December 31, 2008,Fangda Guoke has received the fund for purchasing of equipment in two payment amounted to RMB1million. In the report term, Fangda Guoke has recognized t

395、he government subsidy of RMB100,000.00against the expected useful life of the equipment and amortizing of intangible assets. As of June 30, 2011,the government subsidy recognized was accumulated to RMB250,000.00.Note 6. According to document 沈信产发200827 号 issued by Shenyang Information IndustryBureau

396、 and Shenyang Bureau of Finance on July 17, 2008, Shenyang Fangda received RMB480thousand of subsidy to support the production technologies of graphic background and extension andchips projects. As of June 30, 2011, this project was not through acceptance inspection yet.Note 7: According to the “Sci

397、entific and technological project contract of Shenyang High-techZone” engaged between Shenyang High-tech Development Zone Administration Committee andShanyang Fangda in November 2010, the Committee was about to provide finance of RMB800 thousandto Shenyang Fangda for purchasing of equipment. As of J

398、une 30, 2011, this project was not throughacceptance inspection yet.(28) Share capital(1) Change of capital shares in the periodClass ofBalance of book value atbeginning of termChanged in current termBalance of book valueat end of termshareholdingAmount ofsharesIssuingProportion of newsharesBonussha

399、resTransferredfromreservesOthersSub-totalAmount ofsharesProportion55Class ofBalance of book value atbeginning of termChanged in current termBalance of book valueat end of termshareholdingAmount ofsharesIssuingProportion of newsharesBonussharesTransferredfromreservesOthersSub-totalAmount ofsharesProp

400、ortionI. Shares withtradingconditionslimited1.State-ownedshares2. National legalperson shares3. Other domesticshares48,014,8289.52%24,007,41424,007,414 72,022,2429.52%Incl.Non-governmentdomestic legal18,200,0003.61%person shares9,100,0009,100,000 27,300,0003.61%Domesticnaturalperson29,814,8285.91%sh

401、ares4.Overseas14,907,41414,907,414 44,722,2425.91%shareholdingIncl. Shares heldby foreign legalpersonsForeignnaturalsharespersonTotal ofconditional shares48,014,8289.52%24,007,41424,007,414 72,022,2429.52%II. Shares withouttradingconditionslimited1. Common sharesin RMB2. Foreign shareslisted at home

402、232,624,317223,967,45946.10%44.38%116,312,158111,983,729116,312,158 348,936,475111,983,729 335,951,18846.10%44.38%3. Foreign sharesplaced abroad4. OthersTotalofunconditional456,591,77690.48%shares228,295,887228,295,887 684,887,66390.48%Total of capitalshares504,606,604100.00%252,303,301252,303,301 7

403、56,909,905100.00%Note 1. On March 25, 2011, the Shareholders Meeting 2010 adopted the dividend andcapitalizing plan of 2010. In which the plan for capitalizing of common reserves was:Upon the total capital shares of 504,606,604 as of December 31, 2010, capital reserves were to56capitalized on 5 to 1

404、0 basis, and the capital shares were increased to 756,909,90 thereafter. This has beenapproved by the authority with document 深 科 工 贸 信 资 字 20110755 号 , and re-registrationprocedures are in process.Note 3: As of June 30, 2011, the book balance of conditional shares was 72,022,242, including71,917,80

405、0 shares could be released on July 15, 2011. The rest are executives shares.(29) Capital reservesChange of capital reserves:ItemsShare capital premiumOther capital reservesTotalBalance of bookvalue atbeginning of term290,541,523.4843,892,491.44334,434,014.92Increasedthis termDecreased thisterm252,30

406、3,301.0026,600.00252,329,901.00Balance ofbook value atend of term38,238,222.4843,865,891.4482,104,113.92Note 1. Capital reserves share capital premium has decreased by RMB252,303,301.00, which wascaused by capitalizing of common reserves according to the resolutions adopted by the ShareholdersMeetin

407、g 2010.Note 2. Other capital reserves has reduced by RMB26,600.00, which was net decreased amount offair value of available-to-sale financial assets after deducting of income tax.(30) Surplus reservesChange of surplus reserves:StatutoryreservesItemsTotalsurplusBalance of bookvalue atbeginning of ter

408、m17,834,977.9717,834,977.97Increased thistermDecreased thistermBalance ofbook value atend of term17,834,977.9717,834,977.97(31) Retained profitChange of retained profit:ItemsProfit retained from end of previous periodPlus: Adjusted amount of retained profit atbeginning of year (-“ for decrease)Profi

409、t not distributed at the beginning of termPlus: Net profit attributable to owners of theparent companyAttributable profitLess: Statutory surplus reservesOptional surplus reservesCommon risk provisionsCommon share dividend payable57Current term153,115,142.18153,115,142.1846,094,698.26199,209,840.44in

410、inItemsCommon share dividend transferred tocapital shareRetained profit at the end of term(32) Operational turnover and costs(1) Details of business turnover and costs:Current term199,209,840.44ItemsTurnoverIncl. Main business turnoverOther business incomeOperation costIncl. Main business costOther

411、business costOccurred current term579,154,393.68556,233,228.0822,921,165.60460,275,267.38449,536,349.2910,738,918.09Amount occurred insame period last year423,379,762.74401,760,236.8121,619,525.93339,167,650.59330,318,126.578,849,524.02(2) Main business turnover classified on industries:IndustriesOc

412、curred current termOperationTurnovercostAmountsame period last yearTurnovercostoccurredOperationMetal productionRailroad industry485,234,819.9063,530,580.66388,995,725.0853,584,619.99325,621,513.6971,094,433.93261,964,502.9158,550,560.42Lightingproduct7,467,827.526,956,004.225,044,289.189,803,063.24

413、industryTotal556,233,228.08449,536,349.29401,760,236.81330,318,126.57(3) Business segments on districts:Name of districtsOccurred current termOperationTurnovercostAmountsame period last yearTurnovercostoccurredOperationDomesticOverseasTotal492,995,212.2063,238,015.88556,233,228.08408,525,736.3641,01

414、0,612.93449,536,349.29390,733,338.5411,026,898.27401,760,236.81321,634,382.278,683,744.30330,318,126.57(4) Turnover contributed by top 5 clientsNo.1No.2No.3No.4Ranks of clientsOccurred current term70,628,120.3054,382,714.1547,004,202.3544,315,598.3258Portion in total turnover12.20%9.39%8.12%7.65%-It

415、emsNo.5Total41,646,076.07257,976,711.197.19%44.54(33) Turnover from construction contractsContracts accounted over 10% of the total business turnover of current period:ProjectTotal amountAccumulatedcosts occurredAccumulatedgross profitrecognized(“-“ for loss)AmountsettledPredictedlossCause forpredic

416、tedlossBlock1-5 ofSanya145,977,668.00 88,508,750.60 35,213,895.00 61,600,466.00PhoenixIslandTotal145,977,668.00 88,508,750.60 35,213,895.00 61,600,466.00(34) Business tax and surchargeType of taxesBusiness taxCity maintenanceand construction taxEducation surtaxProperty taxOthersTotalOccurred current

417、 term6,816,196.08931,385.50471,297.96329,605.54231,740.238,780,225.32Amount occurred insame period last year5,739,170.20428,473.80423,369.34677,371.867,268,385.20RateSee Note III - 1See Note III - 1See Note III - 1(35) Sales expenseOccurred current termAmount occurred in sameperiod last yearManpower

418、Freight and misc.After-salesBusiness tripsBusiness reception expensesMaterial consumableOffice expensesAdvertisement and exhibitionRentalTestingConsultingMisc. expenses594,557,707.693,564,345.80600.001,385,153.93845,239.04224,038.91115,370.20234,903.52485,846.59292,219.6635,800.002,296,497.083,713,0

419、05.352,237,294.51425,407.911,377,579.181,349,640.35719,781.9755,189.33835,252.86282,568.71109,453.050.001,627,882.13ItemsItems-Total14,037,722.4212,733,055.35Note: Accrual amount of current period increased by 22.75% over the same period of last year,which was caused by increase of labor and transpo

420、rtation expenses.(36) Administrative expenseOccurred current termAmount occurred in sameperiod last yearManpowerDepreciation and amortizationAgenciesTaxMaintenance feeWater and electricityOffice expensesBusiness tripsBusiness reception expensesRentalLawsuitMaterial consumableProperty management feeM

421、isc. expensesTotal21,071,160.196,005,472.481,790,279.202,397,206.791,104,675.091,012,462.22411,594.251,659,945.511,809,867.94667,676.382,227,852.55375,819.16753,982.304,937,310.9246,225,304.9818,242,666.424,334,810.591,636,653.292,680,214.842,163,150.57911,556.36511,440.89753,269.371,050,093.26379,7

422、77.11195,530.00200,561.55546,514.786,115,662.4839,721,901.51Note: Accrual amount of current period increased by 16.37% over the same period of last year,which was caused by increase of labor expenses.(37) Financial expensesOccurred current termAmount occurred in sameperiod last yearInterest expenseL

423、ess: Incoming interestsPlus: Exchange lossLess: Exchange gainCommission charges and othersTotal(38) Income from change of fair value10,181,079.962,965,007.59986,590.79605,123.128,807,786.288,949,946.50655,857.65236,298.819,323.921,668,533.3910,189,597.13Source of income from fluctuation offair value

424、Investment property measured at fairvalueOccurred current term5,082,327.6660Amount occurred in sameperiod last year6,553,456.32ofTotal(39) Investment income(1) Investment income by resources:Sources of investment gains5,082,327.66Occurred current term6,553,456.32Amount occurred insame period last ye

425、arInvestmentgainsfromdisposalofavailable-for-sale financial assets3,176,516.97Other investment incomeTotal15,342.4715,342.47-2,450.003,174,066.97Note: Accrual amount of current period increased by 99.51% over the same period of last year,which was caused by greater gains from disposal of available-f

426、or-sale financial assets.(40) Asset impairment lossItemsBad debt lossesTotal(41) Non-operational incomeOccurred currentterm-3,686,853.20-3,686,853.20Amount occurred insame period last year854,610.52854,610.52ItemsOccurred currenttermAmount occurred insame period last yearCarried to currentcontingent

427、 gain/lossGains from disposalnon-current assets498.6710,727,318.70498.67Incl. Gains from disposal offixed assetsGains from debt reorganizationGovernment subsidiesPenalty incomeIncome from penalties498.6763,800.0078,830.005,000.004,181,049.3320,603.213,673,500.0086,341.654,000.00498.6763,800.0078,830

428、.005,000.00Payable account not able to bepaidOthersTotal1,840.755,311,831.225,461,800.6488,520.46143,763.5314,744,047.551,840.755,311,831.225,461,800.64Note 1: Other details are:(1) Fangda Decoration retrieved the overdue project payment in termof property, including RMB4,863,766.62 of interests. (2

429、) DisposalofwastematerialwasRMB392,611.92.Note 2. Non-operational gains decreased by 62.96% comparing with the same period of last year,which was mainly caused by receiving of site moving compensation by Fangda Aluminum last year.61Items1.(42) Non-operational expenditureItemsOccurred currenttermAmou

430、nt occurred insame period last yearCarried to currentcontingent gain/lossTotal of loss from disposal ofnon-current assets247,866.36301,542.48247,866.36Incl. Loss from disposal of fixedassetsLosses from debt restructuringPenalty paidOutgoing donationsOthersTotal247,866.36203,000.00139,007.59589,873.9

431、5301,542.48227,555.801,360.00572,762.2027,391.941,130,612.42247,866.36203,000.00139,007.59589,873.95(43) Income tax expensesComposition of income tax expenses:Income tax calculated according to the lawOccurred current termAmount occurred in sameperiod last yearand regulations of current termDeferred

432、 income taxTotal8,336,787.872,227,649.2710,564,437.143,500,469.182,985,816.656,486,285.83Note 1. Income tax expenses of RMB8,336,787.87 was incurred by Fangda Decoration, FangdaNew Materials, and Fangda Automatic.Note 2. Deferred income tax was mainly the taxable temporary differences caused by fluc

433、tuation offair value of investment property of the term.(44) Calculation formula of basic earnings per share and diluted earnings per shareAccording to “Information Disclosure Rules No.9 Calculation and disclosure of net earnings onasset and earnings per share” ( 中 国 证 券 监 督 管 理 委 员 会 公 告 20102 号 )

434、and “ExplanationAnnouncement of Information Disclosure No. 1 Non-recurring gain/loss” (中国证券监督管理委员会公告200843 号), the earnings per share is calculated as the following:Calculation outcomeCurrent termSame period of last termProfit of the report periodBasicearnings perDilutedearningsBasic Dilutedearnings

435、 per earnings pershareper shareshareshareNet profit attributable to common shareholders of the Company (I)0.0610.0610.0490.049Net profit attributable to common shareholders of the Company after deducting of0.0510.0510.0190.019non-recurring gain/loss (II)622.1245677789101319Formula of earnings per sh

436、areItemsNet profit attributable to common shareholders of theCompanyNo.Current term46,205,772.95Same period oflast term33,608,581.42Non-recurring gain/loss attributable to the net profit ofcommon shareholders of the parent company afterdeducting of income tax influences7,709,204.6520,442,939.40Net p

437、rofit attributable to common share holders of theCompany after deducting of non-recurring gain/lossTotal of shares at beginning of yearAmount of shares increased by capitalizing of commonreserves or share dividend3=1-238,385,493.61504,606,604252,303,30113,165,642.02680,177,1066Amount of shares incre

438、ased by issuing of new shares ortransforming of debt to shares6The number of months from the next month of shareincreasing by issuing of new shares or transferring ofdebts to the end of report termAmount of shares decreased by repurchasing of shares inthe report termThe number of months since the ne

439、xt month of sharedecreasing to the end of report termAmount of shares reducedNumber of months in the report termWeighted average of common shares issued outside (II)1112=4+5+6711-8911-1012756,909,90512680,177,106Weighted average of common shares issued outsideadjusted for merger under common control

440、 (I)Basic earning per share (I)Basic earning per share (II)Diluting potential common share interests recognized asexpensesIncome tax rateTransformation fees14=11215=3121617180.0610.051-24%0.0490.019-22%Amount of shares increased by transforming or exercisingof company bond, subscription certificate,

441、 or share optionDiluted earning per share (I)Diluted earning per share (II)20=1+(16-18)(100%-17)(13+19)21=3+(16-18)(100%-17)(12+19)0.0610.0510.0490.019(1) Basic earnings per shareBasic earnings per share=P0SS= S0S1SiMiM0 SjMjM0-SkP0 = Net profit attributable to the common shareholders or net profit

442、attributable to the commonshareholder after deducting of non-recurring gain/loss. S = weighted average of common shares issued inthe marketS0 = Total shares at the beginning of term63S1 = increased shares due to capitalizing mon reserves or dividend Si = shares increased due to placing of new shares

443、 or transferred from debtin the report term Sj = shares decreased due to actions such as repurchasing in the report term SK =the amount of shares reduced M0 = number of months of the report term Mi = accumulative number ofmonths from the next month of share increasing to the end of report term; Mj =

444、 accumulative number ofmonths from the next month of share decreasing to the end of report term.(2) Diluted earning per shareDiluted earning per share=P1/(S0S1SiMiM0SjMjM0Sk+ weighted average ofcommon shares increased by share option certificates, future option certificates, and convertible bonds)P1

445、 = net profit attributable to common shareholders of the Company, or net profit attributable tocommon shareholders after deducting of non-recurring gain/loss, with considering the influences ofdiluting potential common shares, and adjusted according to Enterprise Accounting Standard and relatedregul

446、ations.At calculating of diluted earnings per share, the Company has considered the influencesof the entire dilute potential common shares, until the diluted earnings per share had reached theminimum level.None of the amounts of common shares issued outside or potential common shares hasgreatly chan

447、ged during the balance sheet date to this report is approved, no potentialcommon shares with potential dilution.640.001.Items(45) Other misc. incomesItems1. Gains (losses) from available-for-sale financial assetsLess: Income tax influence of available-for-sale financialassetsNet amount written into

448、other gains and transferredinto gain/loss in previous termsSub-total2. Shares in other gains of investees on equity basisLess: Income tax influence of shares in other gains ofinvestees on equity basisNet amount written into other gains and transferredinto gain/loss in previous termsSub-total3. Amoun

449、t of gains (or losses) from cash flow hedgeinstrumentLess: Income tax influence of cash flow hedge instrumentsNet amount written into other gains and transferredinto gain/loss in previous termsAdjusted amount transferred to initial amount of thetarget projectSubtotal4. Difference from translating of

450、 foreign currency financialstatementsLess: Net amount of disposing overseas business andtransferred to current gain/lossSub-total5. OthersLess: Income tax influence by other accounted into othermisc. incomesNet amount accounted into other misc. income andtransferred into current gain/loss in previou

451、s termsSub-totalTotal(46) Notes to the Cash Flow StatementOther cash inflow related to operationOccurredcurrent term-35,000.00-8,400.00-26,600.00-26,600.00Amount occurredin same period lastyear-346,410.96-21,210.412,694,453.18-3,019,653.73-1,648,500.00-217,125.002,845,166.75-4,276,541.75-7,296,195.4

452、8Amount of the CurrentTermAmount of the PreviousTermInterest incomeAllowance incomeBidding deposit paid651,869,222.1768,663.6417,176,039.631,470,819.534,623,500.0013,991,502.002.Items3.ItemsNet amount of trade accountsOthersTotalOther cash paid related to operation9,721,956.286,010,447.9434,846,329.

453、6610,449,421.259,014,591.6839,549,834.46Amount of the CurrentTermAmount of the PreviousTermAdministrative expenseSales expenseDeposits and securitiesIndividual borrowingDeposit for draft, netOthersTotalOther cash paid related to financing16,751,465.529,480,014.737,553,798.105,472,352.313,781,035.252

454、0,296,798.8363,335,464.7410,157,049.595,202,990.1816,405,862.485,820,664.179,854,385.8210,586,694.5658,027,646.80Payment of share placing feeAmount of the CurrentTermAmount of the PreviousTerm2,978,629.66Fee of share capital re-registration111,983.72Total111,983.722,978,629.66(47) Appendix of Cash F

455、low Statement(1) Net profit adjusted to cash flow of business operation on indirect basisSupplementary Info.1.Net profit adjusted to cash flow of operation:Net profitPlus: Asset impairment provisionDepreciation of fixed assetsAmortizing of intangible assetsAmortizing of long-term expensesLoss from d

456、isposal of fixed assets, intangible assets, and otherlong-term assets (“-“ for gains)Loss from fixed asset discard (“-“ for gains)Loss from fluctuation of fair value (“-“ for gains)Financial expenses (“-“ for gains)Investment loss (“-“ for gains)66Amount of theCurrent Term44,120,100.19-3,686,853.206

457、,107,321.462,586,954.46235,157.00247,367.69-5,082,327.6610,220,855.72-15,342.47Amount of thesame period oflast year28,239,719.82854,610.524,653,198.982,122,682.15-122,630.13-6,553,456.329,008,860.25-3,174,066.97Supplementary Info.Decrease of deferred income tax asset (“-“ for increase)Increase defer

458、red income tax asset (“-“ for decrease)Decrease of inventory (“-“ for increase)Decrease of operational receivable items (“-“ for increase)Increase of operational payable items (“-“ for decrease)其他 OthersCash flow generated by business operation, net2. Major investment and financing activities not in

459、volving incash flowLiabilities converted to capitalConvertible bond expire in 1 yearFixed assets leased through financing3. Change of cash and cash equivalentsBalance of cash at period endLess: Initial balance of cashPlus: Balance of cash equivalents at the period endLess: Initial balance of cash eq

460、uivalentsNet increasing of cash and cash equivalents(2) Cash and cash equivalentsItemsI. CashIncl: Cash in stockBank savings could be used at any timeOther monetary capital could be used at any timeUsable money in Central BankMoney saved in associated financial bodiesMoney from associated financial

461、bodiesII. Cash equivalentsIncl. Bond investment due in 3 monthsIII. Balance of cash and cash equivalents at end of termVI. Related parties and transactions(1) Relationship1 Main related parties of the Company67Amount of theCurrent Term-44,529.971,570,651.1232,157,095.62-117,891,506.0817,314,765.64-1

462、2,160,290.48415,709,113.55468,878,715.15-53,169,601.60Amount at endof term415,709,113.5519,572.06415,689,541.49415,709,113.55Amount of thesame period oflast year-1,240,534.283,026,882.91-31,020,490.97-71,345,047.8326,022,948.81-39,527,323.06498,849,443.70210,823,550.83288,025,892.87Initial ammount46

463、8,878,715.1513,898.14468,864,140.47676.54468,878,715.15Ltd.1.FangdaName of thepartiesOwnershiptypeReg.Add.LegalrepresentativeBusinesspropertyRegisteredcapital(RMB0000)OrganizationcodeShareholdingin theCompanyVotingpower intheCompanyShenzhenBanglinTechnologiesLtd.liabilityShenzhenChen JinwuIndustrial

464、investment3,000.00 72984005-59.09%9.09%DevelopmentCo., Ltd.ShenzhenShiliheInvestment Co., liabilityShenzhen Wang ShengguoIndustrialinvestment1,978.0992 72984450-72.36%2.36%Ltd.HongKongOnforceInternationalLtd.liabilityHKIndustrialinvestmentN/A1.63%1.63%Co., Ltd.2 Particulars of the subsidiariesPlease

465、 see Note IV.3 Other related partiesName of the partiesShenzhen Fangda SpecialDecoration Engineering Co., Ltd.(former Shenzhen Fangda SpecialStructure Co., Ltd.) (Fangda SpecialDecoration)Song WenqingRelation with the CompanyMr. Song Wenqing, Supervisorof the Company used to beDirector of this compa

466、ny(resigned on August 11, 2010)Original supervisor of theCompany (resigned on MarchOrganization code19229492-X25, 2011)(2) Related party transactionsRelated contractingOffer of contracting:Name oftheemployerFangdaDecorationName ofthecontractorSongWenqingCategory ofasset to beofferedProjectcontractin

467、gCommencedateDate ofwinning inbiddingTerminationDateCompletionof projectPricing basisofcontractingAgreementpriceContractamount(RMB0000)772.94FangdaProjectSpecialDecoration Decoration contractingDate ofwinning inbiddingCompletionof projectAgreementprice2,323.08Note. Contract amounts in above table re

468、fer to the contracted projects in process in the report term.682.1.Guarantees among the related parties(1) Guarantees among the related companies within the consolidation range:TheguarantorFangdaDecoration,FangdaAutomatic,Fangda NewMaterialTheCompanyTheCompanyTheCompanyTheCompanyTheCompanyTheCompany

469、ThebeneficiaryTheCompanyFangdaAutomaticFangdaDecorationFangdaDecorationFangdaDecorationFangdaDecorationFangda NewMaterialAmountguaranteed24,000,000.0026,000,000.0050,000,000.0050,000,000.0020,000,000.0030,000,000.0020,000,000.0020,000,000.0030,000,000.0010,000,000.0030,000,000.0016,000,000.0015,000,

470、000.0015,000,000.0027,000,000.00Start dateSept. 2 2010Sept. 2 2010Sept. 2 2010Sept. 3 2010Sept 10, 2010Sept. 17 2010Feb. 1 2011Sept 1 2010Feb. 22 2011Mar. 4 2011Mar 1, 2011Dec 20 2010Jul 7 2011Jul 12 2011Sept 29 2010Due dateSept. 1 2011Sept. 1 2011Sept. 1 2011Sept. 2 2011Sept. 9 2011Sept.16 2011Feb.

471、1 2012Aug 1 2011Feb. 22 2012July 3 2011Mar 1, 2012Dec 19 2011Jul 7 2012Jul 12 2012Sept 28 2011Completedor notNoNoNoNoNoNoNoNoNoNoNoNoNoNoNoNote: The above are associated guarantees involved in bank loans.(2) As of the date of this report, Fangda Decoration has provided guarantees for thecontract eng

472、aged between the Company and its individual shareholders. The guaranteeinvolves with amount of RMB783.646 million.VII. Contingent issues(1) Major unsettled lawsuitsMajor unsettled lawsuit and influences on financial statusPlaintiffFangdaGuokeThe defenderHainan TianyiInternationalBuilding Co.,Casedes

473、criptionprojectpaymentlawsuitThe courtHaikouLonghuaPeoplesTarget amountRMB2,450,811.54and interestProgressUnder trial692.3.Ltd.CourtThe1stWangWeihongFangdaDecorationProjectdisputeMiddle Court RMB17.07of and interestsmilUnder trialChongqingNote 1: On December 17, 2009, Fangda Guoke appealed to Haikou

474、 Longhua Peoples Court againstHainan Tianyi International Building Co., Ltd. for the overdue payment of LED system of Hainan TianyiInternational Building. The claim was RMB2,450,811.54 of overdue payment and relative interests. Thecase was under trial as of June 30, 2011.Note 2: In 2010, Wang Weihon

475、g sue to Chongqing Middle Court against Fangda Decoration oneof the Companys subsidiaries, claiming for RMB17.07 million project payment and interests. This caseis in trial process. And the bank deposit of RMB12 million of Fangda Decoration was frozen by thecourt.Major lawsuits settled but not execu

476、ted completely(1) On January 13, 2002, Shenzhen Fangda Decoration Engineering Co., Ltd. (Fangda Decoration)appealed to Dalian Arbitration Committee against Dalian Hongjin World Trade Center for theoutstanding payment of RMB22,112,004.30 and interests. On July 28, 2008, Dalian ArbitrationCommittee ju

477、dged with 2002大仲字第 228 号 that Dalian Hongjin World Trade Center Co., Ltd. shallpay RMB19,194,665.60 and interest to Fangda Decoration in 10 days. (In which interest ofRMB17,414,863.00 will be charged since December 1, 2001; interest of RMB1,779,802.60 will becharged since December 1, 2002.) On June

478、1, 2011, Dalian Middle Court issued the judgment （2011）大执一恢 1 字第 47、87 号 and judged that flat 2,3A,3B,5,6,7,8 on the 10 floor, and 6,12 on the 32 floor,and 2,3A,7,12A,12B on the 46 floor of World Trade Center located at 25 Tongxing Street, ZhongshanDistrict, Dalian were under possession of Fangda De

479、coration. This was to compensate the overdueproject payment owed by Dalian Hongjin World Trade Center Ltd. along with the interests ofRMB239.573 million.(2) On November 24, 2004, Shanxi Taiyuan Middle Court issued the Civil Judgment （2004）并民初字第 322 号 that Shanxi No.2 Construction Co., Ltd. and Shanx

480、i Taiyuan Police Station should makethe payment of RMB11,506,930.98 to Fangda Decoration in two disbursement. As of June 30, 2011,Fangda Decoration has retrieved RMB5,272,450.00, and the rest was not retrieved yet.(3) On January 2, 2003, Guangzhou Middle Court issued the Civil Settlement Letter （200

481、2）穗中法民三初字第 00596 号 requiring Guangzhou Yian Plaza Property Development Co., Ltd. to payRMB5,621,329.63 to Fangda Decoration in 15 days. As of June 30, 2011, Fangda Decoration hasreceived RMB1,950,000.00, and the rest of payment has not been received yet.Other contingent liabilitiesAs of June 30, 201

482、1, all of the external guarantees were among the Company and its subsidiaries.For details please see Note VI (II) 2.No material contingent issues to be disclosed other than the above as of June 30, 2011.70VIII. Significant commitments(1) Significant commitments1. Please see Note V. for pledges made

483、by the Company against its own properties. The Companypromises to the provider of bank credit: additional pledge will be offered to the creditor as soon as theproperty certificate of Fangda Industry Town is granted.2. Details of guarantees provided between the Company and its subsidiaries for bank c

484、redits are:(1) Details of guarantees provided to subsidiaries for bank credit up to June 30, 2011:Name of companiesFangda New MaterialFangda DecorationAmount126,600,000.00360,000,000.00NoteFor details please go to Note VI(II) 2Fangda AutomaticFangda DecorationFangda AutomaticTotal310,000,000.00This

485、was guarantee forguarantee letter credit and cross100,000,000.00 guarantees were provided byFangda Decoration and FangdaAutomatic896,600,000.00(2) Details of guarantees provided to the Company for bank credit up to June 30, 2011:Name of companiesFangda DecorationFangda AutomaticFangda New MaterialTo

486、talAmount50,000,000.0050,000,000.0050,000,000.00150,000,000.00NoteFor details please go toNote VI (II) 2Note: For details of guarantee letters please go to Note VIII (I) 2 (1).(2) Fulfilling of commitments made in previous termsCommitments made by the Company in previous terms were exercised normall

487、y along withrepaying of loans by the receiver of guarantees.No material commitment issues to be disclosed other than the above as of June 30, 2011.IX. Other Material Issues(1) Issuing of short-term bondsThe 15th meeting of the 5th term of Board was hold on November 11, 2010, on which the“Proposal to

488、 issue short-term bonds” was adopted. The Company planned to issue not greater thanRMB400 million of short-term bonds to China Inter-bank Market Association. The proceeds will beused to support working capital of the Company and its fully-owned subsidiaries and replacing of somebank loans.(2) Compan

489、y restructuring71ThisThe Board of Shenyang Fangda one of the subsidiaries of the Company, adoptedresolution (沈方（董）2010第002号) on December 7, 2010: Shenyang Fangda willtakeover Fangda Guoke and all of its assets, including inventories, equipment, andintangible assets (patents) will be transferred to S

490、henyang Fangda at their book value. Uponcompletion of the takeover, Fangda Guoke will be deregistered. This restructuring was inprocess as of the date of this report.Shenyang Fangda subsidiary of the Company, has adopted the resolutions at the 7th meeting of the1st board of directors (沈方（董）2011第004号

491、) on April 8, 2011. Shenyang Fangda will takeoverFangda Woke the fully-owned subsidiary and Fangda Woke will be deregistered.restructuring was in process as of the date of this report.(3) LeasesDetails of property leasing as of June 30, 2011.Category of property for rentInvestment propertiesTotalBal

492、ance of book value at end ofterm274,539,465.81274,539,465.81Balance of book value atbeginning of term271,226,332.73271,226,332.73(4) Assets accounted at fair valueItemsFair value atbeginning oftermGain/lossfrom changeof fair valuein the termAccumulativechange in fairvalue accountedinto equitiesImpai

493、rmentprovisionsprovided inthe currenttermFair value atend of termI. Financial assets1. Financial assets onfair value andchanges accountedinto current gain/loss(Derivatefinancial assets(Derivatefinancial not included)assets excluded)2. Derivate financialassets3. Disposablefinancial assets4,347,000.00

494、-35,000.00-26,600.000.004,312,000.00II.propertyInvestment271,226,332.73 5,082,327.660.000.00 274,539,465.81III.Productionbiological assetsIV. OthersTotal of assets275,573,332.73 5,047,327.66-26,600.000.00 278,851,465.8172X. Notes to the main items of the financial statements of the parent company(I)

495、 Account receivable(1) Account receivable on categoriesBalance of book value at end of termCategoriesBook valueAmount ProportionBad debt provisionAmount RateNet amountReceivables with majorindividual amount and baddebt provision providedindividuallyReceivables provided baddebt provision in groupsInc

496、l. Receivable accountsnot consolidatedSub-total of group7,964,960.337,964,960.337,964,960.33100% 1,769,240.98100% 1,769,240.98100% 1,769,240.9822.21% 6,195,719.3522.21% 6,195,719.3522.21% 6,195,719.35Account receivable withminor individual amount butbad debt provision isprovidedTotal7,964,960.33100%

497、 1,769,240.9822.21% 6,195,719.35Balance of book value at beginning of termCategoriesBook valueAmount ProportionBad debt provisionAmount RateNet amountReceivables with majorindividual amount and baddebt provision providedindividuallyReceivables provided baddebt provision in groupsIncl. Receivable acc

498、ountsnot consolidatedSub-total of group10,467,296.5110,467,296.5110,467,296.51100.00% 2,549,569.61100.00% 2,549,569.61100.00% 2,549,569.6124.36% 7,917,726.9024.36% 7,917,726.9024.36% 7,917,726.90Account receivable withminor individual amount butbad debt provision isprovidedTotal10,467,296.51100.00%

499、2,549,569.6124.36% 7,917,726.90Account receivables on which bad debt provisions are provided on age basis in the group:Balance of book value at end of termAgewithin 1 yearAmount2,297,211.55Proportion28.84%Bad debtprovision68,916.35Net amount2,228,295.201-2 yrs2-3 yrs5,667,748.7871.16%1,700,324.633,9

500、67,424.15Over 3 yrs73Total7,964,960.33100.00%1,769,240.986,195,719.35Balance of book value at beginning of termAgewithin 1 yearAmount2,187,479.05Proportion20.90%Bad debtprovision65,624.37Net amount2,121,854.681-2 yrs2-3 yrs8,279,817.4679.10%2,483,945.245,795,872.22Over 3 yrsTotal10,467,296.51100.00%

501、2,549,569.617,917,726.90(2) There is no receivable account that have been fully provided of bad debt provision, or with greatportion in previous year, but retrieved or written back in the report term, or such account retrieved orwritten back at large percentage or major amount.(3) No receivable acco

502、unt neutralized this period.(5) As of December 31, 2010, no receivables due from shareholders with 5% or above shares of theCompany or related parties.(5) Top 5 of receivables at end of report term:Name of the companiesGuangzhou Metro CompanyRelation with theCompanyScreen door clientAmount atend of

503、term2,297,211.55Agewithin 1year% in totalreceivables1005,667,748.782-3 yrsTotal7,964,960.33100(II) Other account receivable(1) Other account receivable on categoriesBalance of book value at end of termCategoriesBook valueAmountRatio(%)Bad debt provisionProvidingAmountrate (%)Net amountOther receivab

504、leswithmajorindividual amountandbaddebtprovision providedindividuallyOther receivablesprovided bad debtprovision in210,199,551.0499.97%564,672.410.27%209,634,878.63groupsIncl.Receivableaccountsnot2,526,869.951.20%564,672.4122.35%1,962,197.54consolidated74AgeReceivableaccount within theconsolidation2

505、07,672,681.0998.77%0.00%207,672,681.09rangeSub-total of group210,199,551.0499.97%564,672.410.27%209,634,878.63Otherreceivableaccountwithminor individualamount but bad53,046.000.03%53,046.00100.00%debt provision isprovidedTotal210,252,597.04 100.00%617,718.41100.00%209,634,878.63Balance of book value

506、 at beginning of termCategoriesBook valueAmountRatio(%)Bad debt provisionProvidingAmountrate (%)Net amountOther receivableswithmajorindividual amountandbaddebtprovision providedindividuallyOther receivablesprovided bad debtprovision in201,041,444.0799.97%586,474.320.29%200,454,969.75groupsIncl.Recei

507、vableaccountsnot3,253,600.461.61%586,474.3218.03%2,667,126.14consolidatedReceivableaccount within theconsolidation197,787,843.6198.36%197,787,843.61rangeSub-total of group201,041,444.0799.97%586,474.320.29%200,454,969.75Otherreceivableaccountwithminor individualamount but bad53,046.000.03%53,046.001

508、00%debt provision isprovidedTotal201,094,490.07100%639,520.320.32%200,454,969.75Other account receivables on which bad debt provisions are provided on age basis in the group:Balance of book value at end of termAgewithin 1 year1-2 yrsAmount1,476,636.9511,858.00Ratio (%)0.73%0.01%Bad debtprovision44,2

509、99.111,185.80Net amount1,432,337.8410,672.202-3 yrsOver 3 yrsTotal1,038,375.002,526,869.950.52%1.26%519,187.50564,672.41519,187.501,962,197.54Balance of book value at beginning of term75AmountRatio (%)Bad debtprovisionNet amountwithin 1 year1-2 yrs2,203,367.4611,858.001.10%0.01%66,101.021,185.802,13

510、7,266.4410,672.202-3 yrsOver 3 yrsTotal1,038,375.003,253,600.460.52%1.63%519,187.50586,474.32519,187.502,667,126.14(2) There is no receivable account that have been fully provided of bad debt provision, or with greatportion in previous year, but retrieved or written back in the report term, or such

511、account retrieved orwritten back at large percentage or major amount.(3) No offsetting of other receivable account.(4) As of December 31, 2010, no other receivables due from shareholders with 5% or above sharesof the Company.(5) Top 5 debtors of other receivable accounts:Portion in totalName of thec

512、ompaniesSpecificationRelation withthe CompanyAmount at endof termAgeotherreceivableaccounts (%)FangdaDecorationCurrentaccountControlledsubsidiaries159,322,832.25within 1year75.78%FangdaMaterialHK JunjiaNewCurrentaccountCurrentaccountControlledsubsidiariesControlledsubsidiaries8,704,080.925,052.6930,

513、375,199.12within 1yearwithin 1year1-2 yrs4.14%14.45%4,336.01within 1yearFangda GuokeCurrentaccountControlledsubsidiaries2,488,413.622,625,780.301-2 yrs2-3 yrs3.85%Shenzhen2,984,947.273 年以上ChangshouPharmacy Co.,Compensationfor buildingTradingcompany984,375.00Over 3 yrs0.47%Ltd.Total(6) Receivable acc

514、ount due from related parties198,529,036.3198.69%Name of thecompaniesFangda DecorationRelation with theCompanyControlledsubsidiariesAmount at end of term159,322,832.25Percentage in total of otherreceivables75.78%FangdaMaterialHK JunjiaNewControlledsubsidiariesControlled8,704,080.9230,380,251.814.14%

515、14.45%76subsidiariesFangda GuokeShenyang FangdaFangda WokeFangda AutomaticTotalControlledgrand-subsidiaryControlledsubsidiariesControlledgrand-subsidiaryControlledsubsidiaries8,103,477.20243,182.3025,489.84893,366.77207,672,681.093.85%0.12%0.01%0.42%98.77%(III)Long-term share equity investmentLong-t

516、erm equity investment:Companyinvested inFangdaDecorationCalculatingbasisCost basisInvestmentcost305,000,000.00Balance ofbook value atbeginning ofterm305,000,000.00Changed thisterm (- fordecrease)Balance ofbook value atend of term305,000,000.00FangdaAluminiumFangda Yide Co.HK JunjiaCost basisCost bas

517、isCost basis19,800,000.0019,907,760.0010,600.00FangdaAutomaticCost basis170,385,071.73170,385,071.73170,385,071.73FangdaMaterialNewCost basis74,496,600.0074,496,600.0074,496,600.00Shenyang FangdaTotalCost basis109,560,000.00 108,852,073.85699,160,031.73 658,733,745.58108,852,073.85658,733,745.58Comp

518、anyinvested inShareproportion(%)Voting rights(%)ImpairmentprovisionImpairmentprovisionprovided thistermCash dividendof the currenttermFangdaDecoration98.3998.39FangdaAluminiumFangda Yide Co.HK JunjiaFangdaAutomatic997510090.48997510090.4819,800,000.0019,907,760.0010,600.00FangdaNew757577inMaterialSh

519、enyang Fangda64.5864.58Total(IV)Operational turnover and costs39,718,360.00(1) Details of business turnover and costs:ItemsTurnoverIncl. Main business turnoverOther business incomeOperation costIncl. Main business costOther business cost(2) Turnover on categories of productsOccurred current term20,0

520、49,926.081,022,878.4619,027,047.625,151,318.51671,466.394,479,852.12Amount occurred insame period last year18,558,245.60184,615.3818,373,630.224,777,841.15131,726.944,646,114.21Categories of productsMetro screendoorOccurred current termOperationTurnovercostAmountsame period last yearTurnovercostoccu

521、rredOperationproductsRentalTotal1,022,878.4619,027,047.6220,049,926.08671,466.394,479,852.125,151,318.51184,615.3818,373,630.2218,558,245.60131,726.944,646,114.214,777,841.15(3) Turnover from top 5 clientsNo.1No.2No.3No.4No.5Ranks of clientsTotalOccurred current term3,306,400.021,221,126.681,022,878

522、.46563,556.54431,670.006,545,631.70Portion in total turnover16.49%6.09%5.12.81%2.15%32.64%(V) Appendix of Cash Flow StatementAmount ofAmount of theSupplementary Info.1.Net profit adjusted to cash flow of operation:Net profitPlus: Asset impairment provision78the CurrentTerm5,475,020.08-802,130.54same

523、 period oflast year5,936,531.75-240,157.03Amount ofAmount of theSupplementary Info.Depreciation of fixed assetsAmortizing of intangible assetsAmortizing of long-term expensesLoss from disposal of fixed assets, intangible assets, and otherlong-term assets (“-“ for gains)Loss from fixed asset discard

524、(“-“ for gains)Loss from fluctuation of fair value (“-“ for gains)Financial expenses (“-“ for gains)Investment loss (“-“ for gains)Decrease of deferred income tax asset (“-“ for increase)Increase deferred income tax asset (“-“ for decrease)Decrease of inventory (“-“ for increase)Decrease of operatio

525、nal receivable items (“-“ for increase)Increase of operational payable items (“-“ for decrease)其他 OthersCash flow generated by business operation, net2. Major investment and financing activities not involving in cashflowLiabilities converted to capitalConvertible bond expire in 1 yearFixed assets le

526、ased through financing3. Change of cash and cash equivalentsBalance of cash at period endLess: Initial balance of cashPlus: Balance of cash equivalents at the period endLess: Initial balance of cash equivalentsNet increasing of cash and cash equivalentsthe CurrentTerm1,077,799.18325,575.972,356.10-4

527、,547,127.661,965,559.92132,386.171,507,171.12721,324.62-628,535.905,229,399.0634,000,832.4930,252,759.443,748,073.05same period oflast year734,292.69447,681.75-6,498,256.322,648,600.20-434,125.323,985,213.312,659,100.34-7,614,421.601,624,459.77349,325,681.0142,274,488.50307,051,192.51XI. Supplementa

528、ry Info.(1) Details of non-recurring gain/loss of current termAccording to document 公告200843 号 issued by China Securities Regulatory Commission, thenon-recurring gain/loss are as the followings:ItemsGain/loss from disposal of non-working capital, including theneutralized part of the impairment provi

529、sion provided alreadyRefunding and exemption of taxes in excess of authority orwithout official approval documentsGovernment subsidies accounted into current income account(except for those government subsidies closely related to theCompanys business, and received at national statutory standardand a

530、mount)79Occurredcurrent term-247,367.6963,800.0NoteItemsCapital adoption fee collected from non-financial organizationsand accounted into current gain/lossOccurredcurrent term4,863,766.62NoteReceiving of interestof project paymentdue from DalianYunshan projectGain/loss from differences between the c

531、ost of enterprisemerger and the fair value of recognizable net asset of theinvested entitiesGain/loss from non-monetary assetsGain/loss from commissioned investment or assetsAsset impairment provisions provided for force-majeurGain/loss from debt reorganizationEnterprise reorganizing expenses, such

532、as employee placementfee and integration feeGain/loss from trade departing from fair valueCurrent net gain/loss of subsidiaries under same control frombeginning of term till date of consolidationGain/loss generated by contingent liabilities without connectionwith main businessesGain/loss from change

533、 of fair value of transactional asset andliabilities, and investment gains from disposal of transactionalfinancial assets and liabilities and sellable financial assets, otherthan valid period value instruments related to the Companyscommon businessesRestoring of receivable account impairment provisi

534、on testedindividuallyGain/loss from commissioned loansGain/loss from change of fair value of investment propertymeasured at fair value in follow-up measurementInfluence of one-time adjustment made on current gain/lossaccount according to the laws and regulations regarding tax andaccountingConsigning

535、 fee received for cosigned operationOther non-business income and expenditures other than theaboveOther gain/loss items satisfying the definition of non-recurringgain/loss accountTotal of non-recurring gain/lossLess: Influenced amount of income taxNet non-recurring gain/loss (influence on net profit

536、)Less: Influenced amount of minor shareholders equityNon-recurring gain/loss attributable to net profit of commonshareholders of the parent companyNet profit attributable to common share holders of theCompany after deducting of non-recurring gain/loss(2) Net income on asset and earnings per share805

537、,082,327.66191,727.769,954,254.35-2,244,387.087,709,867.27-662.627,709,204.6538,385,493.61According to “Information Disclosure Rules No.9 Calculation and disclosure of net earnings onasset and earnings per share ( 中 国 证 券 监 督 管 理 委 员 会 公 告 20102 号 ) and “ExplanationAnnouncement of Information Disclo

538、sure No. 1 Non-recurring gain/loss (中国证券监督管理委员会公告200843 号), the earnings per share is calculated as the following:Current termEarnings per shareProfit of the report periodNet profit attributable to commonshareholders of the CompanyNet income on asset,weighted4.46%Basic earningsper share0.061Dilutede

539、arnings pershare0.061Net profit attributable to the commonowners of the PLC after deducting of3.72%0.0510.051non-recurring gains/lossesSame period of last termEarnings per shareProfit of the report periodNet profit attributable to commonshareholders of the CompanyNet income on asset,weighted5.28%Bas

540、ic earningsper share0.049Dilutedearnings pershare0.049Net profit attributable to the commonowners of the PLC after deducting of2.07%0.0190.019non-recurring gains/lossesXII. Approval of the financial statementsThis financial statement is approved by the Board on July 29, 2011.Legal representative:Accounting Manager: Manager of Accounting Dept.China Fangda Group Co.,Ltd.July 29 201181