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1、方大集团股份有限公司CHINA FANGDA GROUP CO., LTD.Interim Report 2011Important PromptThe Board of Directors and the directors of the Company guarantee that there are nosignificant omissions, fictitious or misleading statements carried in the Report and wewill accept individual and joint responsibilities for the

2、 truthfulness, accuracy andcompleteness of the Report.This report was examined and adopted at the 3rd meeting of the 6th term of Board. Alldirectors presented the meeting personally.The Financial Statement carried in the Semi-annual Report was not audited.Mr. Xiong Jianming, the Chairman of Board, M

3、r. Lin Kebin, the Chief FinancialOfficer, and Mr. Chen Yonggang, the manager of accounting department declare: theFinancial Report carried in this report is authentic and completed.This report is prepared both in English and Chinese. When there is any conflict inunderstanding, the Chinese version sh

4、all prevail.1DefinitionsThe following terms are defined to the companies goes after them unlessotherwise stated.the Company : China Fangda Group Co., Ltd.The Group: the Company and its subsidiariesFangda Decoration: Shenzhen Fangda Decoration Engineering Co., Ltd.Fangda Yide: Fangda Yide New Materia

5、l Co., Ltd.Fangda Aluminium: Jiangxi Fangda New-type Aluminium Co., Ltd.Fangda Guoke: Shenzhen Fangda Guoke Electri-Optical Technical Co., Ltd.Fangda Automatic: Shenzhen Fangda Automatic System Co., Ltd.Fangda New Materials: Fangda New Materials (Jiangxi) Co., Ltd.Shenzhen Woke: Shenzhen Woke Semico

6、nductor Lighting Co., Ltd.Shenyang Fangda: Shenyang Fangda Semiconductor Lighting Co., Ltd.HK Junjia: Hong Kong Junjia Group Co., Ltd.Banglin: Shenzhen Banglin Technology Development Co., Ltd.Shilihe: Shenzhen Shilihe Investment Co., Ltd.Onforce: Onforce International Co., Ltd.LED: GaN Lighting Diod

7、e Semiconductor2Table of ContentsI. Company Profile . 4II. Change in Capital Share and Major Shareholders . 7III. Particulars about the Directors, Supervisors and Senior Executives . 10IV. Report of the Board. 13V. Significant Events . 19VI. Financial Report . 32VII. Document Ready for Inquiring . 3

8、33I. Company Profile1. Company Profile:(1) Legal Name of the Company in Chinese and EnglishIn Chinese: 方大集团股份有限公司（abbreviation：方大集团）In English:CHINA FANGDA GROUP CO., LTD. （abbreviation：CFDC ）(2) Legal Representative: Mr. Xiong Jianming(3) Secretary of the Board: Mr. Zhou ZhigangAddress: Fangda Town

9、, Xili Longjing, Nanshan District, Shenzhen, PRCPost code: 518055Tel: 86(755) 26788571 ext. 6622Fax: 86(755) 26788353Email: (4) Registered Address of the Company: Fangda Building, Kejinan 12th Avenue, High-tech Zone,Shenzhen, PR China.Post code: 518057Head office: Technology Building, Fangda Town, X

10、ili Longjing, Nanshan District, Shenzhen,PRCPost code: 518055Email: Website: http:/(5) Official Medias of Information DisclosureChina Securities Journal, Security Times, Shanghai Securities Daily, Hong Kong CommercialDailyWebsite assigned by China Securities Regulatory Commission for the disclosing

11、of AnnualReport:http:/Website of the Company where the Interim Report is available:http:/This Interim Report is available at: the Secretary Office of the Board of the Company.(6) Abbreviations and Codes of the Stock and the Stock Exchange ListedA Stock: Fangda AB Stock: Fangda B000055 Shenzhen Stock

12、 Exchange200055 Shenzhen Stock Exchange44.56%-2. Financial Highlights (in RMB yuan)（1） Major accounting indiciesEnded this report Ended previous Increase/decreasetermyear(%)Gross Assets (RMB)Owners equity attributable to theshareholders of the listed company (yuan)2,040,148,475.79 1,991,161,158.841,

13、056,058,837.33 1,009,990,739.072.46%Capital shares (shares)756,909,905.00504,606,604.0050.00%Net asset per share attributable to theshareholders of the listed company1.402.00-30.00%(Yuan/share)Report term(Jan-Jun)Same period lastyearIncrease/decrease(%)Turnover (yuan)Business profit (RMB)Gross profi

14、t (RMB)Net profit attributable to shareholders ofthe listed company (yuan)579,154,393.6849,812,610.6454,684,537.3346,094,698.26423,379,762.7423,172,085.7336,785,520.8633,608,581.4236.79%114.97%48.66%37.15%Net profit after deducting of non-recurringgain/loss attributable to the shareholders of 38,385

15、,493.6113,165,642.02191.56%the listed company (RMB)Basic earnings per share (Yuan/share)Diluted earnings per share (Yuan/share)Weighted average of ROE (%)0.0610.0614.46%0.0490.0495.28%24.49%24.49%-0.82%Weighted average netincome/asset ratio less non-recurring3.72%2.07%1.65%gain/loss(%)Net Cash flow

16、generated by businessoperation (RMB)Net Cash flow per share generated bybusiness operation (yuan/share)-12,160,290.48-0.02-39,527,323.06-0.08（2） Non-recurring gain and loss itemsNon-recurring gain and loss itemsGain/loss of non-current assetsGovernment subsidies accounted into current gain/loss acco

17、unt,other than those closely related to the Companys commonbusiness, comply with the national policy and continues toAmount-247,367.6963,800.00Note (if applicable)enjoy at certain fixed rate or amount.Receiving of interest ofCapital adoption fee collected from non-financial organizationsand accounte

18、d into current gain/lossGain/loss from change of fair value of investment propertymeasured at fair value in follow-up measurementOther non-business income and expenditures other than theaboveInfluenced amount of income taxInfluenced amount of minority shareholders equityTotal54,863,766.625,082,327.6

19、6191,727.76-2,244,387.08-662.627,709,204.65project payment duefrom Dalian Yunshanproject（3） Impact on the net profit and net asset due to adjustment under IAS (InRMB Yuan)Net profit attributable toDomestic Accounting StandardInternational Accounting Standardthe shareholders of thelisted companyOwner

20、s equity toshareholders of thelisted company46,094,698.261,056,058,837.3346,094,698.261,060,822,235.57Statement about thediversityThe different of owners equity attributable to the listed company on IASwas mainly the part of interest capitalized in years previous to applicationof the new accounting

21、standard on January 1, 2007.（4） Net income/asset ratio and earnings per shareEarnings per shareNet return onequity (%)(yuan/share)BasicDilutedweightedearnings perearnings perItemsNet profit attributable to theshareholders of the listed companyaverage4.46%share0.061share0.061Net profit after deductin

22、g ofnon-recurring gain/loss attributable to3.72%0.0510.051the shareholders of the listed company6(I)II. Change in Capital Share and MajorShareholdersChange of Capital Share1. Causation of the changeThe common reserve capitalizing plan of year 2010 was implemented in the reportterm. Upon the total ca

23、pital shares of 504,606,604 as of December 31, 2010,capital reserves were to capitalized on 5 to 10 basis, totally 140,319,572 werecapitalized to A share holders, and 111,983,729 shares were capitalized to B shareholders. and the capital shares were increased to 756,909,90 thereafter.2. Approval upo

24、n the changeThe common reserve capitalizing plan was approved at the Shareholders Meeting2010.3. Change in total capital shares and shareholding structureChange of shareholding statusBefore the changeChanged (+,-)After the changeAmountIssuingProportion of newsharesBonus Transferredshares from reserv

25、esOthers Sub-totalAmountProportionI. Shares withtrading restrictionconditions48,014,8289.52%24,007,41424,007,414 72,022,2429.52%1. State-ownedshares2. State-owned legalperson shares3. Other domesticshares47,945,200 9.50%23,972,60023,972,600 71,917,8009.50%Incl.Non-governmentdomestic legalperson shar

26、es18,200,000 3.61%9,100,0009,100,000 27,300,0003.61%Domesticnatural personshares29,745,200 5.89%14,872,60014,872,600 44,617,8005.89%4. Share held byforeign investorsIncl. Shares heldby foreign legalpersonsForeign natural7-person shares5. Managementshares69,6280.01%34,81434,814104,4420.01%II. Shares

27、withouttrading limitedconditions456,591,77690.48%228,295,887228,295,887 684,887,66390.48%1. Common sharesin RMB232,624,31746.10%116,312,158116,312,158 348,936,47546.10%2. Foreign shares indomestic market223,967,459 44.38%111,983,729111,983,729 335,951,188 44.38%3. Foreign shares inoverseas market4.

28、OthersIII. Total of capitalshares504,606,604100.00%252,303,301252,303,301 756,909,905100.00%4. Reregistration of the sharesThe newly capitalized A shares have been transferred directly to the accounts of Ashare holders on April 26, 2011, while the newly capitalized B shares have beentransferred dire

29、ctly into the accounts of B share holders on April 28, 2011.5. Shareholding status at the end of report term30th 2011, in shares)(as of JuneTotalshareholdersof72,221 shareholders at end of the report term (including 49,633 A-shareholders, and 22,588 B-share holders)Top 10 ShareholdersName of theshar

30、eholderProperties ofshareholderShareproportion %Total sharesConditional Pledged orshares frozenShenzhen BanglinTechnologiesDomesticDevelopment Co., non-state-ownedLtd.legal person9.09% 68,774,273DomesticShenzhen Shilihe non-state-ownedInvestment Co., Ltd. legal person2.36% 17,860,992Tieling XinxinDo

31、mesticCopper Industry Co., non-state-ownedLtd.legal person2.22% 16,800,00016,800,000 16,800,000Domestic naturalChen Binblinperson1.98% 15,000,00015,000,000 14,550,000Onforce International OverseaslegalLtd.person1.63% 12,300,000-Domestic naturalShi Baozhongperson1.39% 10,500,00010,500,000 10,500,000D

32、omestic naturalZhang XuZhongrongpersonDomestic1.39% 10,500,00010,500,000International Trust non-state-ownedCo., Ltd.legal person1.39% 10,500,00010,500,000Domestic naturalShen Cangqiong person81.14% 8,617,8008,617,800-Domestic naturalCao Yifanperson0.44% 3,320,865Top 10 holders of unconditional share

33、sName of the shareholderShenzhen BanglinTechnologiesDevelopment Co., Ltd.Shenzhen ShiliheInvestment Co., Ltd.Onforce International Ltd.Cao YifanChen LihongZhen FanZhongrong InternationalTrust Ltd. Rongxin TrustContract No.75Zhongrong InternationalTrust Co., Ltd. HuianNo.6Chen JinbiaoLi YitianAmount

34、of shares without tradelimited conditions68,774,27317,860,99212,300,0003,320,8652,305,3651,980,0001,931,6591,653,1471,649,4271,558,350Category of sharesRMB common sharesRMB common sharesForeign shares placed indomestic exchangeForeign shares placed indomestic exchangeForeign shares placed indomestic

35、 exchangeForeign shares placed indomestic exchangeRMB common sharesRMB common sharesForeign shares placed indomestic exchangeForeign shares placed indomestic exchangeNotes to relationship or Among the top 10 shareholders, Banglin and Onforce are parties with“action in concert” action in concert. Ban

36、glin and Shilihe are associated. As for the otheramong the top tenshareholders.holders of current shares, the Company has not been informed anysituation of related parties or action in concert parties.96. Influences of the capital share changing on the financialindices of the latest year and latest

37、term, such as basicearnings per share and diluted earnings per share, and netasset per share attributable to common shareholders of theCompany: For the capital shares have increased from504,606,604 to 756,909,905 due to implementing of commonreserve capitalizing for year 2010, the earnings per share

38、and diluted earnings per share of previous year havedecreased from RMB0.074 to RMB0.049.7. None of the controlling shareholder or substantialdominator of the Company has changed during the reportterm.III.ParticularsabouttheDirectors,Supervisors and Senior Executives1. Changes in Shares Held by Direc

39、tors, Supervisorsand Senior ExecutivesShares heldSharesSharesSharesNamePositionat thebeginning ofincreasedthis termdecreasedthis termheld atthe end ofCause ofchangeyear(shares)(shares)term1000000000XiongJianmingWangShengguoXiongChairman,presidentDirector, VicepresidentDirector68,64724,191034,32412,0

40、95102,97136,2860Capitalizingof commonreservesJianweiZhouZhigangShaoHanqingGuoJinlongHuangYayingZheng HuaDirector,Secretary ofthe BoardIndependentDirectorIndependentDirectorIndependentDirectorHost of the00000000SupervisoryCommitteeYu GuoanSupervisorCao NaisiYangSupervisorVice President0000XiaozhuanLi

41、n KebinVice presidentand CFODongLikunSongWenqingFormerindependentdirectorFormersupervisor0000Note: The Company has not implemented any share equity motivation scheme, thusnone of the directors, supervisors or executives is holding share options or grantedshares with restriction conditions.112. Chang

42、es occurred to the directors, supervisors andsenior executives in the current term.NameXiongJianmingWangShengguoXiongJianweiZhouZhigangShaoHanqingGuo JinlongHuangYayingZhen HuaYu GuoanCao NaisiYangXiaozhuanLin KebinDong LikunSongWenqingPositionChairman,PresidentDirector, VicepresidentDirectorDirecto

43、r,Secretary of theBoardIndependentDirectorIndependentDirectorIndependentDirectorHost of theSupervisoryCommitteeSupervisorSupervisorVice PresidentVice President,CFOFormerindependentdirectorFormer supervisorJob term2011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2

44、014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252011.3.25-2014.3.252008.6.6-2011.3.252008.6.6-2011.3.25CausationShifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsSh

45、ifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsShifting oftermsApproved byThe Shareholders Meeting2010, the 1st meeting of the6 th term of BoardThe Shareholders Meeting2010The Shareholders Meeting2010, the 1st meeting of the6 th term of BoardThe Shareho

46、lders Meeting2010The Shareholders Meeting2010The Shareholders Meeting2011Employees General Meeting2011The Shareholders Meeting2011The Shareholders Meeting2011The 1st Meeting of the 6thTerm of BoardThe 1st Meeting of the 6thTerm of Board3. The Shareholders Meeting 2010 was held in thereport term12-IV

47、. Report of the Board1. Financial Position:In RMBItemsTurnoverOperation costSales expenseAdministrative expenseFinancial expensesAsset impairment lossIncome tax expensesOperation profitNet profit attributable to theshareholders of the listed companyCash flow generated by businessoperation, netNet in

48、creasing of cash and cashequivalentsItemsGross AssetsOwners equity to shareholders ofthe listed companyPrepaymentOther account receivableAdvances receivedOther account payableJan-Jun 2011579,154,393.68460,275,267.3814,037,722.4246,225,304.988,807,786.28-3,686,853.2010,564,437.1449,812,610.6446,094,6

49、98.26-12,160,290.48-53,169,601.60June 30, 20112,040,148,475.791,056,058,837.3334,525,862.8351,503,441.5490,207,461.2548,298,812.20Jan-Jun 2010423,379,762.74339,167,650.5912,733,055.3539,721,901.5110,189,597.13854,610.526,486,285.8323,172,085.7333,608,581.42-39,527,323.06288,025,892.87December 31,201

50、01,991,161,158.841,009,990,739.0720,266,020.0539,235,264.8748,308,874.4725,384,587.91Scale ofchange %36.79%35.7122.75%16.37%-13.56%62.87114.97%37.15%Scale ofchange %2.46%4.56%70.36%31.27%86.7390.27Major causes of the above movements:13(1) Busines turnover and costs have increased by 36.79% and 35.71

51、% respectively,mainly caused by increase of sales of curtain wall and materials by 48.49%.(2) Income tax expenses increased by 62.87%, mainly caused by increase of profit andincome tax payable.(3) Net amount of cash and cash equivalent has decreased by 118.46% from the sameperiod of last year, mainl

52、y caused by receiving of proceeds from private issuing ofshares in the same period of last year, and increase of investment in fixed asset in thereport term.(4) Prepayment account increased by 70.36% over beginning of year, mainly causedby increasing of projects and prepayment made for labor service

53、 and materials.(5) Other receivable increased by 31.27% over beginning of year, mainly caused byincrease of project deposit.(6) Advances received have increased by 86.73%, mainly caused by increase ofadvances received by Fangda Decoration and Fangda Automatic for projects.(7) Other payables have inc

54、reased by 90.27%, mainly caused by increase of biddingdeposit received.2. Business Overview:The Companys business scope is composed by: development, design, production,installation, technical consulting & training, sales and after-sales service of newbuilding materials, composite materials, metal pr

55、oducts, metal structure,environmental protection equipment and materials, security equipment, metallurgicequipment, optical, mechanical and electronic integration products, macromoleculematerials and products, fine chemical products, machinery equipment, photo-electricmaterials and equipment, photo-

56、electric equipment, electronic display equipment,audio/video equipment, traffic facilities, metro platform screen doors, variousventilation equipment and products, plunger equipment, centralized air-conditioningequipment and spares and parts, semiconductor materials and devices, integratedcircuit, i

57、llumination products and equipment, solar energy products, screen doorsystem for metro, etc. Operation of property management, leasing, and managementof parking lots.The high-tech products including energy-saving curtain wall, compound aluminumboard, single layer profiled aluminum board, and PSD are

58、 the major source ofbusiness turnover and net profit of the Company. The distribution of turnover andprofit over industries, products, and territories are as the following (RMB0000)Segments on industriesOn industry orproductTurnoverOperationcostGross Increase/decrease ofprofit turnover over the same

59、ratio (%) period of last year (%)Increase/decrease ofoperation cost over thesame period of last year(%)Increase/decrease ofgross profit ratio overthe same period of lastyear (%)Metalproduction48,523.48 38,899.5719.83%49.02%48.49%0.28%Railroadindustry6,353.065,358.4615.66%-10.64%-8.48%-1.99%Segments

60、on productsCurtain wall48,523.48 38,899.5719.83%49.02%48.49%0.28%14theproducts andmaterialsRailtransportation6,353.065,358.4615.66%-10.64%-8.48%-1.99%equipmentRegionsDomesticOverseasTurnover49,299.526,323.80Change of income over last year %26.17%473.49%3. Business AnalysisIncreasing of prices has be

61、en accelerated in the whole country since the second half oflast year. To constrain the trend of inflation, the national government has tightenedcontrol over the macro economy. The national bank has tightened the monetarypolicies as well. Interest rate was increased for successively five times, and

62、thedeposite-reserve ratio has been lifted for 12 times since the second half of last year.These have caused elevating of costs to enterprises and tightening of businessenvironment. Meanwhile, this is the first year of the 12th 5-year-plan, the nationalgovernment attached great important to developme

63、nt of new energy andenvironmental protection industries. In the report term, the Company has overcomenumerous difficulties. Depending on its advantages of complying with the nationalpolicies, the Company has been persistently pursuing independent innovation anddevelopment. A good business situation

64、has been achieved. In the report term, theCompany has realized main business turnover of RMB579.15 million. Basing on asuccessive growth in past three years, another 36.79% of growth YoY was achieved inthe first half of this year. It was another historical record of the Company. Net profitattributab

65、le to the owners of the parent company was RMB46.09 million, increased by37.15% over the same period of last year. After deducting of non-recurring gain/loss,the net profit has increased by 191.56%, which indicates continuously reinforcing ofprofitability of the main businesses. Up to the end of rep

66、ort term, the Company hasreserved orders worth RMB1.476 billion, which is 254.92% of the business turnoverof the first half of year. This provided a sound foundation for the businessdevelopment of the whole year. The business performance has shown a trend of rapidgrowth in recent years.1) Significan

67、t achievement in marketing approach of curtainwall productsThe curtain wall market has been expanding quickly along with the fast growth ofnational economy. The Company has attached great importance to the development ofcurtain wall products, and has been leading the industry of the country. Inrepor

68、t term, the Company has been fully utilizing its advantages of market reputation,keeping reinforce the exploring of high-end curtain wall market in Pearl River Delta,Yangtze River Delta, and Bohai Sea Costal area. Significant progress has beenachieved. In the first half of year, the Company has won

69、in the biddingcompetitions for curtain wall projects of Shenzhen Airport T3 Terminal, Shenzhen15Zhongguanghe Building, Changsha Kaifu Wanda Plaza, Qingdao Haier PropertyExecutive Building, Kunshan Shimao International Town, Hebei LanghefangFinancial Street Finance Center, Erduosi International Trade

70、 Town, and BeijingMudanyuan Apartment 2#. Curtain wall products have been the main profitablebusiness of the Company, whose sales income increases 49.02% over the same periodof last year. The Company will seize the opportunities of rapid expanding market,reinforce the leading position and keep the C

71、ompany a fast development.The 26th Universiade will be held in Shenzhen in August. The curtain wall of thecentral stadium is supplied and constructed by the Company. It was constructed withenvironmental protection and energy saving curtain wall products, and is comparablewith the “nest” stadium of B

72、eijing. Another main stadium of Universiade wasconstructed with new type polycarbonate roof system, which was invented by theCompany with four patented technologies. It has successfully overcame the technicaldifficulties of distortion and water resistance.2) Contribute to entering of the age of metr

73、oAs the largest in the country and one of the top 3 in the world supplier of PSD system,the Company has played a significant role in construction of local metro system ofShenzhen City. In June, Shenzhen Metro line 1, 2, 3, 4, and 5 were fully put intooperation. The Company provided PSD systems for l

74、ine 1 (Baishizhou Airport East),line 2, line 4 (Minle Qinghu). The Companys PSD system was regarded as“advanced, stable, elegant, and safe”, and at the leading position globally. Since thefull operation of the network phase II, the Companys PSD systems have beenworking with zero fault and high effic

75、iency, and highly praised by the metro companyand citizens.The line 4 project division of the Company was awarded “AdvancedQuality Management”. The Company has contributing to entering of the age of metroof Shenzhen city.3) LED industry steps into a new age of developmentThe Company has accomplished

76、 moving of LED production base from Shenzhen toShenyang, and formed a relatively complete industrial chain in Shenyang. Thisindicates the LED segment has entered a new age of development. In the first half ofyear, sales of LED products has increased by 48.05% over the same period of lastyear.4) Acce

77、lerate deploying of industrial basesThe Company has been always attaching great importance to technology innovation.This has reinforced the market reputation and competition. At present the Company isholding a large amount of orders. In the report term, the Company acceleratedconstruction of Donggua

78、n Songshanhu Base and Nanchang Base to supportexpanding of production and turnover.16Dateend ofthis at end of becometerm(%)(3)term (2) as5) Continuous improving of internal control systemAlong with the overall arrangement of Shenzhen Office of CSRC, the Company wasassigned one of the 26 key PLCs for

79、 internal control system construction. In the reportterm, the Company paid great attention to implementation of internal controloperations. An external consulting firm was employed to make sure the progress andquality of the operations. The Company produced a number of regulations, fullyexamined bus

80、iness processes, checked through for controlling faults, producedimproving plan, revised and made new Company rules. The internal control systemwas further improved to satisfy altering business environment and requirements and tocontribute to legal and healthy development.6) Awards of achievementIn

81、the report term, Shenzhen Fangda Automatic System Co., Ltd. one of thefully-owned subsidiaries, was awarded the “Top 50 innovative enterprises of railroadtransportation industry 2010”, which was the only in the field of PSD. This reflects ahigh profile of innovation approach in the whole area. In th

82、e report term, FangdaNew Materials (Jiangxi) Co. Ltd. one of the fully-owned subsidiaries of theCompany, was awarded the “2nd place of technological innovation of Jiangxiprovince” for the “integration and application of 4C pressure module of profiledaluminum” developed together with Nanchang Univers

83、ity. In the report term, theCompany was awarded “Enterprise of the Year of Guangdong” and “Best ofIndustrial Relationship of Shenzhen”; Jiangxi New Materials was awarded “BestQuality Management” and “Best Enterprise of 2010 of Nanchang High-tech Zone”.The brand name “Fangda” was named “Best Buy of S

84、henzhen” for the 2nd time.4. Investment in the report term(1) Use of raised capitalAs of June 30, 2011, the situation of proceeds from share placing was as thefollowings: RMB0000Total of proceedsTotal of proceeds changed to otheruse in the report term33,658.69Total of proceeds put into0.00 investmen

85、t in the report term3,680.96Accumulated proceeds changed toother use% of accumulated proceeds changedto other use0.000.00%Total of proceeds invested6,252.13Projectpromised to beinvested by theproceedsIfinvestmentprojectchanged(includingpartiallychange)Total ofproceeds Totalto be investmentinvested a

86、fteras adjustmentproposedInvestmentAmount Accumulated progress at when theinvested investment projectreportreport report term useable(2)/(1)proposedGainsin the Gains asreport expected?termMajorchange infeasibility?Project set bythe prospectus17location ofproject toandused asEnergy-savingcurtain wall

87、and PV curtainwall productionNo21,000.00 21,000.00 3,280.585,481.3126.10%Dec 3120110.00NotapplicableNoexpandingprojectExpanding ofPSD projectNo12,658.69 12,658.69400.38770.826.09%Dec 3120110.00NotapplicableNoSubtotal ofinvestment-33,658.69 33,658.69 3,680.966,252.13-0.00-promisedInvestmentproject of

88、premiumsurplusRepaying ofbank loans (if-any)Used as currentcapital (if any)-Subtotal ofpremium-0.000.000.000.00-0.00-proceedsTotal-33,658.69 33,658.69 3,680.966,252.13-0.00-Reason orsituation thatnot on schedule(on specificproject)Statement onmajor changein feasibilityAmount, usageand progress ofpre

89、miumsurplusChange ofinvestAdjustment onimplementationof projectinvestedPre-investmentreplacement byproceedsIdle proceedworking capitalSurplus ofinvestment andcausationApplicationplan of retainedfund fromfinancingProblem orsituation inusing ofNoneNoneNot applicableApplicableAccording to the needs of

90、business development, and approved by the 24th meeting of the 5th term of Board,the location of energy saving curtain wall and PV wall project was changed from Nanchang to DongguanGuangdong.Not applicableApplicableOn September 30, 2010, it was decided to use the raised capital to replace RMB4,347,75

91、3.09 of investmentmade previously by Fangda Automatic (1,403,503.00) and Fangda Decoration (4,347,753.09). This has beenverified by CPA with report 天健正信审（2010）专字第 020722 号.ApplicableOn March 28, 2011, payment of RMB20 million was made from idle proceeds to Fangda Decoration; andRMB10 million was mad

92、e to Fangda Automatic. Both were not over six months.Not applicable“Production expanding of energy saving curtain wall and photoelectronic curtain wall” and “Productionexpanding of PSD”Noneproceeds anddisclosing18(2) Projects financed by capital other than share placingThe Company invested to setup

93、Shenyang Fangda Semi-conductor Lighting Co., Ltd.together with Shenyang Hunnan New Zone State-owned Asset Co., Ltd. The firststage of construction works has basically completed.5. Calculation and measuring of major assets,liabilities, income, and expenses on fair value basisThe Company accounts inve

94、stment properties and available-to-sale finance assets onfair value basis. Fair values of investment property will be based on appraisals madeby professional appraisal institutes.Disposable financial assets are the 700thousand ST Magnetic Card shares held by the Company which were released fromselli

95、ng restriction on March 3, 2010. Their fair value is decided by the closing rate atend of report term.6. Business profitability prediction for the report yearThe Company made no profitability prediction in the previous periodic reportsregarding the performance of the report term.V. Significant Event

96、s(I) Company AdministrationIn the report term, according to the regulations and articles of Company Law,Securities Law, Share Listing Rules of Shenzhen Stock Exchange, and OperationalInstructions for PLCs on Main Board, the Company has been improving itsmanagement structure, establishing modern ente

97、rprising system, standardizingbusiness operations, to keep the Company growing in a healthy way.As of the end of report term, the practical situation is complying with therequirements of the laws of the nation and instructional documents issued by CSRC.(II)Progressofinternalcontrolstandardizingopera

98、tion in the 2nd quarter of 2011According to the requirements of “Fundamental Standards of Enterprise InternalControl” issued collectively by five national departments and the “Notice on TrialOperation of Internal Control Improving in PLCs in Shenzhen” issued by Shenzhen19Office of CSRC, the Company

99、has carried out a number of works according to thepreplan made previously in the second quarter of 2011. Most of the requirementssetout by “China Fangda Group Co., Ltd. Internal Control Improving Operation Plan”(the “Internal Control Plan” hereinafter.)1. Progress of works:(1) On the day when the co

100、nsultant institution entered the Company, an initiatingmeeting was held about the internal control operation. The meeting emphasized on theimportance of the operation and clarified the extent of the operation. In view ofmaking the operation more feasible, the “Internal Control Plan” was made by thel

101、eading team under the consulting of the consultant institution. The plan wasexamined and adopted at the 2nd meeting of the 6th term of Board held on April 20,and disclosed to the public on April 22. Upon the results of former operations, thePlan has further clarified the responsible persons, respons

102、ibilities, and schedules tofacilitate smooth implementation of the Plan.(2) According to the Internal Control Plan, the leading team and the consultinginstitution interviewed the managements of the Company and the subsidiaries, talkedabout the current situation of management structure, making of dev

103、elopment strategy,manpower management, capital management, control of hedging instruments, andpreparing process of financial reports. By this way, the extent of key controllingoperations were recognized and internal control documents were produced.(3) The leading team has made periodical statement o

104、n the progress of interviews,business reviewing, and regulation making process. The “Table of Internal ControlFaults (draft)” was made to illustrate the overall situation of internal control system ofthe Company. A improving plan was prepared immediately upon the table.According to the requirement o

105、f the Instruction of Assessment on Enterprise InternalControl, with references to wildly adopted approach and basing on the Companyspractical situation, the leading team setout the recognition and reporting procedureson internal control faults, including the recognition criteria and reporting proces

106、s ofmaterial faults, major faults, and general faults.(4) Along with the business flow reviewing process, the leading team produced therisk evaluation criteria according to the suggestion of the consulting institution andperformed risk evaluation works against it. Evaluations covered most of the mai

107、nrisks on the company level and business flow level, and emphasized on risk points infinancial reporting process. A number of risk points were identified for specialattention and priority. Then risk control documents were prepared under the help ofthe consulting institute to provide reference and te

108、mplates for future risk identifying.To accelerate the operation and save more time for successive improving andself-evaluation works, the leading team has drafted the section about risk evaluationand control as part of the “Fangda Group Internal Control Handbook (draft)”, whichreleased the pressures

109、 on coming up operations.(5) In implementing of internal control criteria, the leading team has reinforcedconstituting of regulations. According to the requirement of internal control criteria, anumber of regulations were produced, including Capital Management Rules,Instruction on Risk Management, T

110、emporary Supervisory Rules of Special Business,2012345Complain and Reporting Rules, and Overall Policies of IT Systems. The works ofbusiness process reviewing, risk evaluation, and making of regulations wereimplemented in parallel to ensure the progress.(6) According to the requirement of Shenzhen O

111、ffice of CSRC, the leading teamparticipated in the conference of internal control leaders.2. Comparison of practical progress and the schedule ofInternal Control PlanAccording to the requirement of the Internal Control Plan, the first three stages shouldbe accomplished before end of the 2nd quarter.

112、 As of the end of the 2nd quarter, theleading team has finished all of the works setout in the Internal Control Plan. Thefollowings are the details.Schedule of Internal Control Operation of Fangda GroupNo.Stages ofworksKey missionsProgressNotePreparation works forStage IinternalcontrolCompletedconst

113、ructionStage IIAnalysis ofinternal controlcurrentCompletedStage IIIStage IVPreparing of improvingplanInternal control improvingCompletedFollowingupPlan draftedMaking of InternalControl HandbookstartedStage VInternal controltrial operationsystemNot started3. Following up worksThe leading team will ac

114、celerate the producing of Internal Control Handbook andInternal Control Criteria, and finish the collecting works of internal control operationresults. Upon completion of these works, a testing operation will be implemented in acertain range and results will be recorded. Upon the testing results, wi

115、th reference tothe Internal Control Instruction and practical situation of the Company, the internalcontrol operation result reviewing document will be revised and finalized, which willprovide a solid foundation for full implementation of internal control regulations.21(III) Profitdistribution,capit

116、alizingofcommonreserves, and cash dividend implemented in the reporttermNo profit distribution was implemented in the report term.The common reserve capitalizing plan of year 2010 was implemented in the reportterm. Base on the total capital shares of 504,606,604 at end of 2010, capitalizing ofcommon

117、 reserves was carried out on 5 to 10 basis to the entire shareholders. Totally111,983,729 shares were capitalized. The total of capital shares has increased up to756,909,905 shares. The newly capitalized A shares have been transferred directly tothe accounts of A share holders on April 26, 2011, whi

118、le the newly capitalized Bshares have been transferred directly into the accounts of B share holders on April 28,2011.The Company conducted no share equity promotion scheme in the report term.No cash dividend plan made in the report term.(IV) Material lawsuit and arbitration affairs in the reportter

119、m1. On March 31, 2010, the Company sued to the Middle Court of Guangzhou claimingfor protection of the Companys two patent rights violated by Panasonic Electronics(China) Ltd. in proceeding of PSD system of Guangzhou Metro. The claiming was tostop the violating activity and compensation of RMB10 mil

120、lion. This case was in trialprocess.2. In 2010, Wang Weihong sue to Chongqing Middle Court against FangdaDecoration one of the Companys subsidiaries, claiming for RMB17.07 millionproject payment and interests. This case was in trial process.(V) Investment in the report term, including holding ofshar

121、es of other listed companies, commercial banks,securities companies, insurance companies, trustcompanies, future companies, and companies which isplanning to place shares publicly.22-In RMBStockCodeStock IDInitial Shareinvestment portionBook value atthe end oftermGain/loss Change ofof the ownersrepo

122、rt equity in theterm report termAccountingsubjectSourceofsharesST600800 Magnetic 4,850,000.00 0.11% 4,312,000.00Card0.00-26,600.00Available-for-salefinancial assetDebtpaid inkindTotal4,850,000.004,312,000.000.00-26,600.00(VI) Trading of other PLCs shares in the report term:None(VII) Acquisition / se

123、lling of asset, intake, or mergerevent occurred during the report term.(1) The Company acquired no assets in the report term.(2) No disposal of assets in the report term.(VIII) No significant related transactions occurredduring the report term(IX) Particulars about material contracts and theirprogre

124、ss1. The Company has never been involved in such events as keeping as custodian,contracted or leased any other companys assets and vice versa in the report period orextended from the previous years.2. Particulars about material contracts and their progress(1) Shenyang Xingmoer Shopping Mall curtain

125、wall project is proceeding asscheduled by the contract;(2) Shenzhen Jiali Plaza phase II is on schedule according to the contract.(3) China ASEAN (Liuzhou) Industry Product Trade Center curtain wall project wason schedule according to the contract;230.000.00(4) Sanya Phoenix Island International Res

126、ort apartment 1, 2, 3, and 4 curtain wallproject is proceeding as scheduled by the contract;(5) Shenzhen Metro Line 1 screen door and safe door system, Shenzhen Metro Line 2east extension screen door system, and Shenzhen Metro Line 4 safe door systemwere completed and put into operation in June 2011

127、.(6) Xian Metro Line 1 phase I PSD system was on schedule;(7) Wuhan Rail Line 2 phase I PSD system was on schedule;(8) Dalian Metro safe door system project was on schedule.3. No major cash asset was consigned to under administration of others in the reportterm(X) Special statement and independent o

128、pinions of theindependent directors regarding adoption of capital byrelated parties and providing of external guarantee.According to the document issued by CSRC and State-owned Asset Commission(Zheng-Jian-Fa200356), under the principle of practical and realistic, the weperformed cautious inspection

129、on the adoption of capital by related parties andproviding of external guarantee, we deem:1. The Company has established a healthy financial system to prevent adoption ofcapital by the holding shareholder and its related parties and unfair relatedtransactions. The Company hasnt paid any wages, welfa

130、res, insurances, orcommercial expenses on behalf of the holding shareholder or its associated parties.The Company conducted no operational capital transaction with any of the holdingshareholder or its associated parties.2. The Company has been controlling the external guarantees strictly. In the rep

131、ortterm, the Company hasnt provided any guarantee to the holding shareholder or otherrelated parties, any no-incorporated parties or individuals. None of the holdingshareholder or its related parties has forced the Company to provide guarantee to anyother parties. All of the guarantees were provided

132、 to the Companys subsidiariesfollowing statutory examination procedures. As of June 30, 2011, guarantees providedby the Company were as the followings:In RMB0000External Guarantee (Exclude controlled subsidiaries)Guaranteeprovided toDate and Ref. ofthe announcementabout theguaranteeAmount oftheguara

133、nteeActual date ofoccurring(signing dateof agreementsActualamount ofguaranteeType ofguaranteeTermCompletedor notRelatedparty ornotTotal of external guarantee approved inthe report term (A1)Total of external guarantee approved asof end of report term (A3)24Total of external guarantee0.00 actually occ

134、urred in thereport term (A2)Total of external guarantee0.00 actually occurred as of endof report term (A4)Guarantee provided to controlled subsidiariesGuaranteeprovided toDate and Ref. ofthe announcementabout theguaranteeAmount oftheguaranteeActual date ofoccurring(signing dateof agreementsActualamo

135、unt ofguaranteeType ofguaranteeTermCompletedor notRelatedparty ornotsinceFangdaDecoration2010-2-12AnnouncementNo. 2010-0620,000.00 Jun 29, 201018,879.94engage ofJoint contract toliabilities 2 yearsupon due ofNoNodebtsinceFangdaDecoration2011-3-2AnnouncementNo. 2011-0212,000.00 Feb 18 20118,769.06eng

136、age ofJoint contract toliabilities 2 yearsupon due ofNoNodebtsinceFangdaAutomatic2010-2-12AnnouncementNo. 2010-0625,000.00 Jun 30 201015,740.08engage ofJoint contract toliabilities 2 yearsupon due ofNoNodebtsinceFangdaAutomatic2010-2-12AnnouncementNo. 2010-066,000.00 Nov 03 20102,523.83engage ofJoin

137、t contract toliabilities 2 yearsupon due ofNoNodebtsinceFangda NewMaterials2010-2-12AnnouncementNo. 2010-065,000.00 Dec 13 20101,600.00engage ofJoint contract toliabilities 2 yearsupon due ofNoNodebtsinceFangda NewMaterials2011-3-2AnnouncementNo. 2011-024,960.00 Jun 17 20113,351.91engage ofJoint con

138、tract toliabilities 2 yearsupon due ofNoNodebtsinceFangda NewMaterials2010-2-06AnnouncementNo. 2010-122,700.00 Sept 29 20102,700.00engage ofJoint contract toliabilities 2 yearsupon due ofNoNodebtFangdaDecoration,FangdaAutomatic,Fangda GroupAugust19, 2010AnnouncementNo. 2010-2710,000.00 Sept 06 20101

139、,651.87sinceengage ofJoint contract toliabilities 2 yearsupon due ofdebtNoNoTotal of guarantee toTotal of guarantee to subsidiariesapproved in the report term (B1)143,000.00subsidiaries actuallyoccurred in the report term35,369.93(B2)Total of balance of guaranteeTotal of guarantee to subsidiariesapp

140、roved as of the report term (B3)143,000.00actually provided to thesubsidiaries as of end of55,216.68report term (B4)Total of guarantee provided by the Company (i.e. total of the above two items)Total of guarantee approved in the reportterm (A1+B1)Total of guarantee approved as of end ofreport term (

141、A3+B3)143,000.00143,000.00Total of guarantee occurredin the report term (A2+B2)Total of guarantee occurredas of the end of report term35,369.9355,216.682552.29%0.000.00Percentage of the total guarantee occurred (A4+B4) on net asset of theCompanyIn which:Guarantees provided to the shareholders, subst

142、antial controllers and therelated parties (C)Guarantee provided directly or indirectly to objects with over 70% ofliability on asset ratio (D)Amount of guarantee over 50% of the net asset (E)Total of the above 3 * (C+D+E)Statement on the possible joint liabilities on the guarantees not due yet None2

143、62,413.742,413.74(XI) In the report term, no commitment issues made bythe Company or shareholders with over 5% of shareswhich have significant influence on the Companysbusinessperformanceorfinancialstatus.Noadditionalcommitmentonshareswithsellingrestrictions by shareholders with over 5% of theCompan

144、ys shares.(XII) In the report term, none of the shareholders withover30% ofsharesproposed or implementedshare-increasing action.(XIII)Nocompensationsonthegainsfromcommitment of related parties about the Companysshare relocating scheme or major capital relocationscheme in the report term.(XIV) The Fi

145、nancial Report carried in this InterimReport was not audited by CPAs. The Company didntreplaced the CPAs in the report term.27to(XV) In the report term, none of the directors,supervisors, executives, shareholders, substantialdominators, buyer of the Company was investigatedby relative departments, e

146、xecuted by legal & disciplinedepartments, delivered to legal departments, appearedforcrime,investigatedorpunishedbyChinaSecuritiesRegulatoryCommission,restrictedsecurity market, criticized publicly, regarded asimproperperson,punishedbyotherexecutivedepartments, or publicly condemned by the StockExch

147、ange.28(XVI) Reception of field research:Time/datePlaceWayVisitorsMain content involvedand material providedMarch 10, TheFieldOrient Securities Ltd., GuangzhouBusiness operation and2011Company researchPearl River Asset Management Ltd. future development.March 18, The Field2011 Company researchShenyi

148、n Wanguo Securities, HualinSecurities, Guangdong AndexinDevelopment Ltd.Business operation andfuture development.(XVII) Statutory reports and provisional reports in thereport term:No.ContentDateof Press mediaPage No.publishing2011-01Announcementof BusinessGrowth2011.1.12China Securities JournalSecur

149、ities TimesShanghai Securities DailyHong Kong CommercialB004D9B14A18Daily (English)Resolutions ofChina Securities JournalB0122011-022011-03the 28thMeeting of the5th Term ofBoardStatement ofthe nominatorsof independentdirectors andtheindependent2011.3.42011.3.4Securities TimesShanghai Securities Dail

150、yHong Kong CommercialDaily (English)China Securities JournalSecurities TimesShanghai Securities DailyHong Kong CommercialDaily (English)D21B25A8B012D21B25A9directors2011-04Announcementof Resolutionsof the 13th2011.3.4China Securities JournalSecurities TimesShanghai Securities DailyB012D21B2529A9D7A7

151、Meeting of the5th Term ofHong KongDaily (English)CommercialA9SupervisoryCommittee2011-052011-06Announcementof electingemployeessupervisorNotice forcalling of theshareholders2011.3.42011.3.4China Securities JournalSecurities TimesShanghai Securities DailyHong Kong CommercialDaily (English)China Secur

152、ities JournalSecurities TimesShanghai Securities DailyB012D21B25A9B012D21B25meeting 2010Hong Kong CommercialDaily (English)2011-07Summary ofAnnual Report20102011.3.4China Securities JournalSecurities TimesShanghai Securities DailyHong Kong CommercialB011D21,D23B25,B26A7Daily (English)Announcementon

153、ReturningChina Securities JournalSecurities TimesB0042011-082011-09of CapitalRaised byShare IssuingTheResolutions ofShareholders2011.3.242011.3.26Shanghai Securities DailyHong Kong CommercialDaily (English)China Securities JournalSecurities TimesShanghai Securities DailyB44A13B226B10126Meeting 2010H

154、ong Kong CommercialDaily (English)Resolutions ofChina Securities JournalB2262011-10the 1st Meetingof the 6th Termof Board2011.3.26Securities TimesShanghai Securities DailyHong Kong CommercialB10126A7Daily (English)Resolutions ofthe 1stChina Securities JournalSecurities TimesB226B102011-112011-12Meet

155、ing of the6th Term ofSupervisoryCommitteeAnnouncementon TemporallyUsing Idle2011.3.262011.3.26Shanghai Securities DailyHong Kong CommercialDaily (English)China Securities JournalSecurities TimesShanghai Securities Daily126A7B22612630Capital Raisedas WorkingHong KongDaily (English)CommercialA7Capital

156、 OnceAgainAnnouncementof Winning ofSecurities TimesShanghai Securities DailyD51B632011-132011-14BiddingCompetitionand Engagingof ContractsAnnouncementof Winning ofBiddingCompetitionand Engagingof Contracts2011.4.12011.4.14Hong Kong CommercialDaily (English)China Securities JournalSecurities TimesSha

157、nghai Securities DailyHong Kong CommercialDaily (English)China Securities JournalA20B008D10B12A9B004Securities TimesD7AnnouncementShanghai Securities DailyB1122011-15of capitalizingof capital2011.4.20Hong KongCommercialA5reservesDaily (English)China Securities JournalSecurities TimesA30D90The 1stSha

158、nghai Securities DailyB1872011-16QuarterlyReport 20112011.4.22Hong KongDaily (English)CommercialA22China Securities JournalSecurities TimesB140D90Resolutions ofthe 2ndShanghai Securities DailyB1872011-17Meeting of the6th Term ofBoard2011.4.22Hong KongDaily (English)CommercialA22China Securities Jour

159、nalB140AnnouncementSecurities TimesD142011-18 of Winning ofBidding2011.6.21Shanghai Securities DailyB24Competition31and Engagingof ContractsHong KongDaily (English)CommercialA16China Securities JournalA29All of the above announcements are available in the website assigned by ChinaSecurities Regulato

160、ry Commission: VI. Financial Report(Not Audited)1. Financial Statements (Not audited, enclosed)2. Notes to Financial Statements (enclosed)32VII. Document Ready for Inquiring1. Semi-annual Report carried with personal signatureand seal of the Chairman of the Board;2. Accounting Statements with signat

161、ures and seals ofthe legal representative and financial principal andchief of accounting department;3. Originals of all documents and manuscripts ofPublic Notices of the Company disclosed in public inthe newspapers as designated by China SecuritiesRegulatory Commission.4. The Article of Association

162、of the Company adoptedby the latest Shareholders General Meeting.Legal representative: Xiong JianmingThe Board of Directors ofChina Fangda Group Co., Ltd.July 29 201133ItemsBalance SheetPrepared by: China Fangda Group Co., Ltd.June 30th 2011in RMB yuanBalance at the end of term Balance at the beginn

163、ing of yearConsolidated Parent company Consolidated Parent companyCurrent asset:Monetary capitalSettlement 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 receivable492,830,911.536,195,7

164、19.35 396,673,564.767,917,726.90Prepayment34,525,862.83250,000.0020,266,020.05366,736.00Insurance receivableReinsurance receivableProvisions of Reinsurancecontracts receivableInterest receivableDividend receivableOther account receivableRepurchasing of financial assetsInventoriesNon-current asset du

165、e in 1 yearOther current asset1,138,888.8826,936,500.0051,503,441.54 209,634,878.63248,191,919.7251,300.0043,936,500.0039,235,264.87 200,454,969.75280,285,486.41Total 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

166、-for-sale financial asset4,312,000.004,312,000.004,347,000.004,347,000.00Expired investment in possessLong-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 assetsConstruction in process304

167、,929,329.3426,674,644.8657,877,748.3487,378.64240,554,714.5256,762,380.6456,934,198.9487,378.64Engineering goodsFixed asset disposalProduction physical assetsGas & petrol1,442,705.89586,285.67Intangible assetsR&D expenseGoodwillLong-term amortizable expensesDeferred income tax asset112,597,828.53905

168、,133.308,197,817.292,860,664.6531,457,030.1710,143,092.4015,029,610.93114,530,578.151,182,970.288,197,817.293,062,071.6531,412,500.2010,323,163.7215,161,997.10Other 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,

169、916.712,040,148,475.79 1,288,866,008.10 1,991,161,158.84 1,291,413,568.27Short-term loans383,000,000.00 200,000,000.00 397,000,000.00 200,000,000.00Loan from Central BankDeposit received and hold forothers34Call loan receivedTrade off financial liabilitiesNotes payable41,652,568.7760,226,018.65Accou

170、nt payablePrepayment received264,658,302.2090,207,461.251,851,490.36693,045.60296,531,749.8248,308,874.471,901,490.41715,925.50Selling of repurchased financialassetsFees and commissions receivableEmployees wage payableTax payableInterest payable11,043,615.2926,999,435.45548,793.05406,934.91885,778.9

171、6280,250.0014,047,721.0021,520,643.71610,850.84881,767.40930,370.30308,275.00Dividend payableOther 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

172、 due in 1yearOther current liabilityTotal of current liability866,408,988.21 266,084,912.42 863,630,446.40 275,579,663.79Non-current liabilitiesLong-term borrowingsBond payableLong-term payableSpecial payableExpectible liabilities883,881.35347,657.52Deferred income tax liabilityOther non-recurring l

173、iabilitiesTotal of non-current liabilitiesTotal of liability29,869,048.724,564,850.0035,317,780.07901,726,768.2829,351,087.5729,351,087.57295,435,999.9928,289,997.60 27,852,316.454,564,850.0033,202,505.12 27,852,316.45896,832,951.52 303,431,980.24Owners equity (or shareholdersequity)Capital paid in

174、(or share capital)Capital reserves756,909,905.0082,104,113.92756,909,905.0042,703,458.54504,606,604.00 504,606,604.00334,434,014.92 295,033,359.54Less: Shares in stockSpecial reservesSurplus reserves17,834,977.9717,834,977.9717,834,977.9717,834,977.97Common risk provisionRetained profit199,209,840.4

175、4 175,981,666.60 153,115,142.18 170,506,646.52Different of foreign currencytranslationTotal of 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 1,009,990,739.07 987,981,588.0384,337,468.25993,430,008.1

176、1 1,094,328,207.32 987,981,588.03Total of liabilities and ownersequity2,040,148,475.79 1,288,866,008.10 1,991,161,158.84 1,291,413,568.2735(Income StatementPrepared by: China Fangda Group Co., Ltd.Jan-Jun 2011RMBYuanAmount of the Current Term Amount of the Previous TermItemsConsolidatedParentcompany

177、ConsolidatedParentcompanyI. Total revenueIncl. Business incomeInterest incomeInsurance fee earnedFee and commission receivedII. Total business costIncl. Business costInterest expenseFee and commission paidInsurance discharge paymentNet claim amount paidNet insurance policy reservesprovidedInsurance

178、policy dividend paidReinsurance expenses579,154,393.68 20,049,926.08 423,379,762.74 18,558,245.60579,154,393.68 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 surcharge8,780,22

179、5.31 1,197,342.53 7,268,385.20736,359.67Sales expense14,037,722.42251,166.98 12,733,055.35604,810.28Administrative 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 -802,130.54854,610.5

180、2 -240,157.03Plus: Gains from change of fair value “-“ for loss)5,082,327.66 4,547,127.66 6,553,456.32 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,

181、083,971.49 23,172,085.73 6,436,043.42Plus: Non business income5,461,800.64461,369.27 14,744,047.55 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 (“-“

182、 for net loss)Net profit attributable to the ownersof parent company54,684,537.33 7,114,577.37 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 eq

183、uityVI. Earnings per share:(I) Basic earnings per share(II) Diluted earnings per share-1,974,598.070.0610.061-3,309,346.390.0490.049VII. 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 company4

184、4,093,500.19 5,448,420.08 23,003,039.55 5,611,331.2046,068,098.26 5,448,420.08 26,312,385.94 5,611,331.20Total misc gains attributable to theminor shareholders-1,974,598.0736-3,309,346.39Cash Flow StatementPrepared by: China Fangda Group Co., Ltd.Jan-Jun 2011RMBYuanAmount of the Current Term Amount

185、of the Previous TermItemsConsolidatedParentcompanyConsolidatedParentcompanyI. Net cash flow from 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

186、inter-bank loans fromother financial bodiesCash received against original insurancecontractNet cash received from reinsurancebusinessNet increase of client deposit andinvestmentNet increase of trade financial assetdisposalCash received as interest, processing fee,and commissionNet increase of inter-

187、bank fund receivedNet increase of repurchasing business572,717,719.70 20,736,668.55 392,653,009.60 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

188、of client trade and advanceNet increase of savings in central bankand brother companyCash paid for 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

189、of cash outflow frombusiness activitiesCash flow generated by businessoperation, netII. Cash flow 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

190、.88483,715,194.88 5,182,338.56 346,365,488.62 6,267,741.9444,761,059.84 4,010,180.73 32,596,329.65 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 5,229,399.0

191、6 -39,527,323.06 1,624,459.77854,089.5415,342.47 17,000,000.00 3,176,516.97 31,615,965.0537Net cash 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 investmen

192、t-related cash receivedSub-total of cash inflow due toinvestment activities24,714.47 17,008,040.006,402,791.46 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 l

193、oan against pledgeNet cash received from subsidiaries andother operational unitsOther cash paid for 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

194、 received as investmentIncl. Cash received as investment fromminor shareholdersCash received as loansCash 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

195、.00 -10,950,803.16 30,490,319.14340,499,960.00 340,499,960.00276,000,000.00 152,821,754.513,765.25616,503,725.25 493,321,714.5112,847,054.29 266,000,000.00 210,000,000.00Cash paid as dividend, profit, or interests 10,220,855.72Incl. Dividend and profit paid bysubsidiaries to minor shareholders5,100,

196、550.00 9,008,860.25 5,156,671.25Other cash paid for financing activities111,983.72111,983.722,978,629.662,978,629.66Subtotal 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

197、.34 275,186,413.60IV. Influence of exchange rate alternation oncash and cash equivalents-7,826.45-12,216.252.70V. 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

198、,715.15415,709,113.55383,748,073.05 288,025,892.87 307,301,195.2130,252,759.44 210,823,550.83 42,024,488.5034,000,832.49 498,849,443.70 349,325,683.71Consolidated Statement of Change in Owners EquityPrepared by: China Fangda Group Co., Ltd.Interim 2011RMB YuanAmount of the Current TermOwners Equity

199、Attributable to the Parent CompanyAmount of Last YearOwners Equity Attributable to the Parent CompanyItemsCapitalpaid in Capital Less: Special Surplus(or reserve Shares reserve reserveshare s in stock s scapital)Common risk Retaineprovisi d profitonOthersMinor Total ofshareho ownerslders equity equi

200、tyCapitalpaid in Capital Less: Special Surplus(or reserve Shares reserve reserveshare s in stock s 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.

201、251,094,328,207.32426,786,359.0080,622,488.6713,360,180.84102,526,565.0691,114,696.12714,410,289.69Plus: 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,

202、359.032 080,622,488.6713,360,180.84102,526,565.0691,114,696.12714,410,289.69III. Changed in the currentyear (“-“ 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) Othe

203、r misc. income-26,600.0046,094,698.26-1,974, 44,120,598.07 100.19-26,600.00-4,955,100.4855,063,374.25-6,777, 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

204、 capital byowners1. Capital inputted byowners47,945,200.0047,945,200.00288,641,671.73288,641,671.73336,586,871.73336,586,871.732. Amount of sharespaid and accounted asowners equity3. Others39(IV) Profit allotment1. Providing of surplusreserves2. Common riskprovision3. Allotment to theowners (or shar

205、eholders)4. Others4,474,797.134,474,797.13-4,474,797.13-4,474,797.13(V) Internal transferring ofowners 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 of

206、surplus 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 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.

207、951 0 217,834,977.97153,115,142.1884,337,468.251,094,328,207.3240Change in Owners Equity (Parent Co.)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 Surplusreserv

208、es reservesCommonriskprovisionRetainedprofitTotal ofownersequityCapitalpaid in Capital(or share reservescapital)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

209、,3 35,682,2113,360,18130,233,4 606,062,2year04.0059.547.9746.5288.0359.003.360.8472.4025.60Plus: Change 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 year04.00

210、59.547.9746.5288.0359.003.360.8472.4025.60III. Changed in the current252,303,3 -252,329,5,475,020 5,448,420 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.

211、 incomeTotal of (I) and (II)(III) Investment ordecreasing of capital byowners1. Capital inputted byowners-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 0.70336,586,871.73336,586,87

212、1.732. Amount of sharespaid and accounted asowners equity3. Others(IV) Profit allotment1. Providing of surplus414,474,797.134,474,797-4,474,797.13-4,474,79reserves2. Common riskprovision3. Allotment to theowners (or shareholders)4. Others(V) Internal transferring of 252,303,3 -252,303,29,875,04 -29,

213、875,0.137.13owners equity01.00301.005.0045.001. Capitalizing of capital 252,303,3 -252,303,29,875,04 -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 thi

214、s year2. Used this term(VII) OthersIV. Balance at the end of this 756,909,9 42,703,4517,834,97175,981,6 993,430,0 504,606,6 295,033,317,834,97170,506,6 987,981,5term05.008.547.9766.6008.1104.0059.547.9746.5288.0342China Fangda Group Co., Ltd.Notes to Financial StatementsI n t e r i m 2 0 11Prepared

215、by: China Fangda Group Co., Ltd.I n R M B Yu a nI. I. General InformationChina Fangda Group Co., Ltd. (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 sh

216、are issuing in October 1995.The Company issued foreign currency shares (B shares) and local currency 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 Comp

217、anywas re-registered to a sino-foreign joint venture. Registration routines were completed with ShenzhenCommerce 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, Tra

218、ding, and ITCommittee with document 深科工贸信资字20110755 号, the registered capital of the Company wasincreased 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 Governme

219、nt of Shenzhen titled 商外资资审 A 字20000025 号, and the share capital wasincreased to RMB756.909905 million.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 legalrepresenta

220、tive.Our business include new-type building materials, composite materials, metal wares, metal frames,environmental equipment and apparatus, fire fighting equipment, optical-mechanical-electricalintegrated products, polymer materials and their products, fine chemical products, mechanical equipment,o

221、ptical materials and devices, electronic displayer, audio-visual device, transport facilities (excluderestricted items and produces under export certification, and their design, developing, installation,construction, technical consulting, and training. Managing and leasing of properties under posses

222、sion(Fangda Building at Ke-Ji-Nan Road 12, and Fangda Town at Longzhu Road 4), parking services ofFangda Building.II. Main Accounting Policies, Estimations and Retrospecting of PreviousAccounting Errors(1) Basis for the preparation of financial statements431.2.Preparing of the financial statements w

223、as on the assumption of the Companys perpetual operation,according to the trades and events practically happened, complying with the Enterprise AccountingStandard issued by the Department of Finance and relative application guidance. Accounting estimationsand assumptions are used in preparing the fi

224、nancial statements with compliance to the EnterpriseAccounting Standard, which will make influences on 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 Stan

225、dardThe financial report and statements are prepared with compliance to the requirement of theEnterprise 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

226、periodThe fiscal year of the Group is the solar calendar year, that is from January 1 to December 31.(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 wellConsolid

227、ation of entities under common controlAssets and liabilities obtained by the merging party are calculated 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 i

228、ssued) are adjusted to the share capitalpremium under the capital reserves. If the share capital premium 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 co

229、st is the fair value of the asset paid,liability undertaken, and equity securities issued for exchanging 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 separat

230、ely on individual and consolidated financial statements as thefollowings:(1) In the individual financial 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

231、share equity before the date of acquisition involves with other integratedgains, such gains (such as 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 financi

232、al statements, the share equity in the acquired entity before the date ofacquisition is recalculated 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; When44the share equity before

233、 the date of acquisition involves with other integrated gains, such gains aretransferred into investment 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 entitie

234、s are accounted into current income account whenoccurred; the transaction fees of equity certificates 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 co

235、st is the fair value of capital paid,liability occurred or undertaken, or equity instrument issued thereof, 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

236、 of cost of each single trade. If the mergercontract provided faith on future events that may influence 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 State

237、mentsConsolidation range is determined on the basis of control power for the consolidated financialstatements.The Financial Statements of the Company are prepared according to “Enterprise AccountingStandard No.33 Consolidated Financial Statements” and relative rules. All major trades andinterchanges

238、 within the consolidation range have been neutralized. The part of shareholders equities notattributable 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 compl

239、ying with those of theCompanys, they shall be adjusted according to the Companys accounting policy and 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 purcha

240、sing; subsidiaries added asmerger of enterprise under common control, it will be regarded as existing 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

241、cash flow statement refers to the investments with short term, strong liquidityand small risk of value 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

242、 middlerate announced by China Foreign Currency Trading Center which is authorized by Peoples Bank ofChina 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 translationdi

243、fferences, except for those constructed or produced and can be capitalized directly into relative capital451.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 Foreig

244、n Currency TradingCenter, and the amount in standard currency will not be changed.(9) Financial instrumentClassification, recognition and measuring basis of financial instrumentsFinancial assets are categorized as: financial assets measured at fair value withaccounted into current income account, ac

245、count receivable (see Note II (X) fordetails), and disposable financial assets. Categorizing of financial 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

246、other financial liabilitiesaccounted into current gain/loss account at fair value.(1) Financial assets measured at fair value with variations accounted into current incomeaccountIncluding transactional financial assets and financial assets directly measured by fair value and withvariations accounted

247、 into current gain/loss account, which are initially recognized at the fair value whenobtained, the related 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

248、as receivable items individually.Interests or cash dividends received during the periodof holding the 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

249、of such financial assets, the differences between the fair valueand initial booked value are recognized 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 asset

250、s recognized initially,namely the Company does not elicit financial assets accounted by fair value with 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 co

251、sts whenobtained. Due bond interests or cash dividend included in the payment that are announced but 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 recei

252、ved. At thebalance sheet date, sellable financial assets are measured on fair values, and the variations 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

253、asset will be accounted into “investment gains”, meanwhile, the amount of462.accumulative change of fair 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 acc

254、ounted into currentincome accountIncluding transactional financial liabilities and financial liabilities 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 assign

255、ed as financial liabilities directlymeasured by fair value and with variations accounted into current 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 tran

256、saction expenses could happen infuture clearance are not deducted. If fair value is not suitable, evaluation 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 int

257、o current gain/loss account, which mainly include account payable and long-termpayable accounts generated 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 lia

258、bilities which are not at fair value through profit or loss, for example financialguaranteed contracts, 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 thefollowi

259、ngs:1. The amount measured in accordance with “Accounting Standards for Business Enterprises No.13 Contingency”2. The amortized balance measured in accordance with “Accounting Standards for BusinessEnterprises No.14 Revenue”Basis of recognition and accounting of financial asset transferringTransferr

260、ing of financial assets by the Company is including the following two cases:(1) Transfer the rights of 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 ass

261、et, and is responsible to pass the cash flow over to the final beneficiary, and satisfyingall of the following 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 other

262、s behalf for a short term,and will be retrieved in full along with interest at fair market rate, shall 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 pa

263、yment.C. The party is obligated to duly forward the cash flow to the final beneficiary party. However473.4.5.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 accor

264、ding to the contract,the gains shall be passed to the final beneficiary party according to the contract.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 reward

265、s attached tothe financial assets are reserved, recognition of the financial asset shall not be terminated.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

266、given up, it will be terminated.(2) When the controlling power is not given up, financial asset and related 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

267、 responsibilities attached to such financial liabilities,recognition of partial or all of the financial 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 tran

268、sferred out or new financial liabilities undertaken) shall be accountedinto current income account.Recognition 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

269、isnt any active market, fair value will berecognized by evaluation techniques. Evaluation techniques include 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

270、financial instruments, discounted cash flow analysis. Atusing of evaluation techniques, market indices 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 she

271、et date, the Company performs testing on the book value of financial assets otherthan those measured by 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 t

272、o the balance between the book value and the currentvalue of expectable future cash flow; if evidence 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 th

273、e financial assets with assumption of no impairmentreserves have been provided at the date of restoring.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 init

274、ial costless retrieved principle less amortized amount and current fair value. The accumulative losses formed by481.2.3.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) A

275、ccount receivableAccounts receivable (including account receivable and other account receivable) are initiallyaccounted according to the contract amount or agreement amount. Accounts receivable that areunrecoverable due to bankruptcy of the debtor (still unrecoverable through insolvency procedures);

276、 deathof the debtor, and no inheritance or heir of liabilities available; or failure of clearing overdue 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 andbo

277、ok value of the receivable shall be accounted into current gain/loss account.Recognition and providing of bad debt provision on individual receivable accountwith large amountThe Company divides receivable accounts into project receivables and product receivables. Projectreceivables are those recogni

278、zed at percentage according to the construction contract, productreceivables are those formed in other 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

279、 (included) as “individual receivable with largeamount” and other receivables over RMB1 million (included) as “individual receivable with largeamount”. On balance sheet day, the Company performs impairment examination individually on eachlarge amount receivables, and recognizes impairment and provid

280、es bad debt provision when theimpairment is recognized; those not impaired are accounted along with the 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 c

281、onsolidated andreceivable accounts consolidated. Receivable accounts consolidated are provided for bad 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

282、-2 yrs2-3 yrsOver 3 yrsAgeProviding rate (%)3.0010.0030.0050.00Account receivable with minor individual amount but provided of bad debtprovisionsReceivable accounts attributed as project accounts with individual amount under RMB8 million and491.2.3.4.5.those attributable as products with individual

283、amount under RMB2 million are categorized to “accountreceivable with minor individual amount”; while other receivable accounts with individual amount underRMB1 million are categorized as “other receivable accounts with minor individual amount”.Individual impairment tests are performed individually o

284、n receivable accounts aged over 5 years.Full impairment provision will be provided when there is no substantial evidence showing that it couldbe retrieved.(11) InventoriesCategorizing of inventoriesInventories are those under the Companys possession for the purpose of selling, in the process ofprodu

285、ction, or materials and goods used in production process or providing of services, includingmaterials 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 inventoryInve

286、ntories are measured at cost when procured, including purchase cost, processing cost, and othercosts. Actual costs are recognized at weight average when delivered. Transferring of constructionmaterials are recognized individually.Recognition of inventory realizable value and providing of impairment

287、provisionOn the balance sheet date, inventories are accounted depending on which is lower between the 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 dr

288、awn.Provisions for impairment of inventories shall be accounted according to the difference between the 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 realizabl

289、e net value will bethe balance of estimated selling price less sales expenses and relative taxations; 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 expen

290、ses, and less relative taxation. At thebalance sheet day, inventories with contract prices will be determined for realizable value separatelyfrom those without contract prices.Inventory systemThe Company uses perpetual inventory system. Inventories are checked periodicly and the gainsand losses from

291、 inventory checking are accounted into current gain/loss account.Amortizing of low-value consumables and 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 investment501.2.3.4.Long-term

292、 share equity investment of the Company includes the investment in subsidiaries,affiliates, and other 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 me

293、rger please see Note II(V). Retrospective or retrievedinvestment are adjusted to the cost of long term 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

294、is not reliablymeasured, values are on initial investment costs.Subsequent measurement and recognition 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 anno

295、uncedcash dividend or profit included in the practical cost or price when the investment was made, theinvestment 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

296、is on equity basis. When the initial investment cost is larger than the share of fairvalue of net asset, 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 intocurre

297、nt gain/loss, and the long-term investment cost shall be adjusted meanwhile.After obtaining ofthe long-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 sha

298、llbe adjusted accordingly. The share of profit distributions or cash dividends announced by the investedcompany 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 mar

299、ket, the fair value of the long-term investment is not able to be reliablymeasured, the subsequent measurement 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 effectiv

300、e when it is agreed by all of the investors who have the share of control on the financial andbusiness 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 thedecisio

301、n making of another, but cannot dominate individually or jointly with other parties. When theinvestor 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 imp

302、airment occurred on the long-term equityinvestment, the recoverable amount shall be decided by the higher 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,

303、 the book value will be reduced down to the511.2.recoverable amount, the reduced amount is recognized 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 wi

304、ll not be written back in following fiscal terms.(13) Investment propertiesInvestment real estates are 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

305、to the real estate; cost of realestate constructed by the Company itself is constructed by the essential 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 marke

306、t where the investment real estate is located;(2) Market price and other related information of similar 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

307、 the investment properties, nodepreciation or amortizing is made on the investment properties, book value 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 di

308、sposal of investment properties, or retrieve from the property permanently and no furtherfinancial benefit 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

309、 less the book value and related taxes is counted into current gain/loss account.(14) Fixed assetsConditions 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 m

310、ore than one year of service life.Depreciation of fixed assetsOther than fixed assets which have already 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 propert

311、y and usage of the fixed assets, the Company decides the service life andpredicted net retained value. 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.

312、Categories, useful life, predicted net retained value, and annual depreciation rate of fixed assets areas the followings:CategoriesHouses & buildingsDepreciation age (year)35-45Residue rate (%)10Annual depreciationrate (%)2-2.57523.4.CategoriesEquipment & machineryTransportation facilitiesElectronic

313、s and otherdevicesDepreciation age (year)1055Residue rate (%)101010Annual depreciationrate (%)91818Impairment 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 val

314、ue, the book value will be deducted to theretrievable value, and the deducted amount will be recorded 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 term

315、s.Other statementsFixed assets are initially measured at costs. Among them, cost of fixed assets purchased 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 ne

316、cessary costs before it ismade useful. Fixed assets invested by investors are booked at the value according 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

317、 forms financing activity, thefixed asset is recognized at the current value of purchasing price.The difference 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 f

318、inancial benefit by using or disposing it, recognition isterminated. Income from disposal, transferring, 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 act

319、ual cost consists ofessential costs of carrying on the construction till it reaches usable status. Constructions 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 acc

320、ording toestimated value, and depreciations share be provided. Upon completion of settlement, the originalestimated 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

321、lower one of book value andretrievable value. If the retrievable value is lower than the book value, the book value will be deducted tothe retrievable value, and the deducted amount will be recorded as asset impairment loss into current53Assetincome account, and impairment provision shall be provide

322、d accordingly. Once the impairment loss wasrecognized, it will not be written back in coming fiscal terms.(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 account

323、ed as cost of related asset.Other borrowing expenses are recognized as expenses according to the occurred 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-

324、term construction or production process toreach the usable or sellable status.Borrowing expenses start 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 do

325、ne for purchasing or producing of assets.(2)Theborrowingexpense has already occurred.(3) Purchasing or 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 specia

326、lborrowing for construction or production of asset satisfying the capitalizing conditions, is the interestexpenses 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 satisfyi

327、ngthe capitalizing conditions, the capitalized interest amount will be decided by the weighted average 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 act

328、ual amountof interest actually occurred to the current relative borrowing.If the construction or production of assets satisfying the capitalizing conditions is suspendedabnormally for over 3 months, capitalizing of borrowing expenses shall be suspended. Borrowingexpenses occurred in the suspension p

329、eriod are recognized as expenses and recorded to current incomeaccount, until the construction or production 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 capitalizi

330、ng conditions has reached its usable or sellable status,capitalizing of borrowing expenses shall be terminated.(17) Intangible assets and development expensesIntangible assets are those recognizable non-monetary assets without physical shape under theCompanys possess or control, including land using

331、 rights, patent, industry property, special technologies,and software.Intangible assets are initially 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 pr

332、ice, but if the contract or agreement price is not fairly acceptable, it will be bookedat fair value.54The 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 asset

333、s with limited useful life are amortized straightly to the useful life, the useful lifeand amortizing 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:

334、CategoriesLand using rightPatentIndustrial property and specialtechSoftwareOther intangible assetsUseful life50 yrs10 yrs10 yrs5,10 yrs10 yrs or beneficialageBasis of amortizationAverage ageAverage ageAverage ageAverage ageAverage ageNotesInternal R&DIntangible assets without certain useful life are

335、 not amortized. They will be reconsidered in eachaccounting period, if strong evidence showing that the 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 imp

336、airment.On the balance sheet date, the Company measures intangible assets according to the lower of bookvalue 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 b

337、e recorded tocurrent income account. Once intangible asset impairment losses are recognized, they will 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 cr

338、eation or research is categorized as research period.The period of using the researching fruits or other 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 scie

339、nce or technologies.Development means using the researching fruits or other know-how into practical projects 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 accountw

340、hen occurred; expenses of internal R&D projects in development stages, are recognized as intangibleassets 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 possibl

341、e to beput into use or sold;(2) Has the intention to use or sell it; (3) The intangible asset is proved 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 sh

342、ould be proved; (4) There aresufficient technologies, financial resources, or other resources that support 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 ac

343、counts shall not be recognized as551.2.(6)asset in succeeding period. Development expenses that have been 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 cos

344、ts of enterprises under same control over the share ofrecognizable net asset or fair value at the date 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

345、of long-term equity investment.Goodwill presented individually in financial statements are tested for 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 bus

346、inesses.(19) Expectable liabilitiesWhen responsibilities occurred in connection to contingent issues, 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) E

347、xecution of this responsibilitymay cause financial benefit outflow from the Company; (3) Amount of the 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 r

348、isks, uncertainty, and periodic value ofcurrency. When the periodic value of currency is with major influence, 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 reflec

349、t current best estimation.(20) Payment in shares and equity instrumentsCategories of payment in sharesShare 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

350、fair value is decided by thequotation in the active market. For those without an active market, the fair 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 p

351、rice of the target shares;(4) Predicted share price fluctuation rate; (5) Predicted dividend of the shares;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 conditio

352、ns in the payment agreement shall be considered.When the payment of shares is under non-exercisable conditions, the cost corresponding to the servicesshall be recognized only when the non-market conditions (such as service term) in all of the exercisable563.4.conditions are satisfied by the employee

353、 or other parities.Basis of deciding the best estimation of the exercisable equity instrumentsAt each 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

354、of equity instrument shall be adjusted. At the exercisable date, the final estimated amount shallbe the 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 equit

355、y paid to the employees. If the equity canbe exercised instantly, it will be accounted into relative cost 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, acc

356、ording to the fair value at the day of giving, record theservice into related cost or capital reserves 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

357、 fair value of liabilities recognized basing onthe share equity or other equity instruments. Those which 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 c

358、orrespondingly. Those which can only be exercised uponsatisfying of certain conditions including providing 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 wai

359、ting period. On each balance sheet day and settlement dayprior to clearing of related liabilities, the 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 a

360、ccelerate theexercise of the equity instrument to be canceled. The Amount recognizable for the rest of 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

361、 the options in the waitingperiod, the Company will cancel the equity instrument.(21) Revenue1.Sales of 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

362、rewardsattached to the ownership of the goods have been transferred to the buyer; (2) No succeeding power ofadministration or effective control is reserved which are usually attached to ownership;57(3)Amount(5)2.3.4.received can be reliably measured; (4) Related financial benefit may inflow to the C

363、ompany;Relative costs, occurred or will occur, can be reliably measured.When collection of contract payment 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 start

364、ed and completed in a same fiscal year is recognized as income at completion. Ifthey are not in the same 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 lab

365、or cost occurred is expectable to be covered, the labor service income is recognizedat the cost already 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 ser

366、vice income.When a contract engaged with other company is including sales of goods and providing of laborservices, 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

367、 be treated as salesof goods.Demising of asset using rightsIncome is recognized when the financial benefit 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 ra

368、te. Amountof application fee is recognized according to the period and calculation decided by the related 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 Fangd

369、a Decoration EngineeringCo., Ltd. (Fangda Decoration) are individual construction contracts, they are 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 carrie

370、d over-year are recognized on percentagebasis at balance sheet day when all of the following conditions 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;

371、cost occurred to complete the contract can be clearlydistinguished and reliably measured, which enables 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.58Progress of a c

372、ontract is recognized at the percentage of actual accumulative cost in the total ofbudget of the contract.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 cost

373、s of thecontract less costs recognized in previous terms are recognized as current contract costs. If 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 Deco

374、ration are outsourced, and administrative feesare collected at agreed rate. For these construction contracts, 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

375、 capital received from the government byfree, but not include capital inputted by the government as investment 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 avai

376、lable, recognized atRMB1.Government subsidies in connection with capital are recognized as deferred income, 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 recogni

377、zed as deferred gains, and recorded to current income account to the period when theexpenses are recognized.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 incom

378、e account;if there is no relative deferred gains, record to current income account directly.(23) Deferred 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

379、 liability, deferred income tax asset and deferred income taxliability are recognized according to the 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) accord

380、ing to thetaxation law; deferred income tax assets and liabilities are measured at the applicable tax 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 dedu

381、cted, anddeductible losses and taxable income amount. If the taxable income realized in the future period oftransferring of provisional differences is not sufficient, which made the financial benefit related to theprovisional difference unrealizable, no deferred income tax asset is recognized. Defer

382、red incometaxliabilities generated by the taxable provisional difference related to fluctuation of fair value ofinvestment in subsidiaries and affiliates are recognized, but those satisfying the recovering time of thetaxable provisional difference are not recognized;59For deferred income tax assets

383、caused by1.2.deductible temporary differences related to investment in subsidiaries, affiliates, and joint 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 dispos

384、al are enough not only toprovide taxable income, but also to deduct the deductible temporary difference, 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 initi

385、al recognition of assetsor liabilities are recognized as income tax expenses or income into current income 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 p

386、eriods ofleasing. Initial direct expenses are recorded to current income account.The Company as lesseeRentals 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 acco

387、unt.(25) Sellable assets in possessionSellable assets in possession are assets satisfying all of the following 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 fixe

388、d assets hold for sale, the predicted net residue value shall be adjusted to reflect the netvalue of fair 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 ne

389、tresidue value shall be accounted into current income account as asset impairment loss.Other non-current 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 satisfy

390、ing “Enterprise Accounting Standard No.22 Recognition and measuring of financialinstruments”, investment properties and biological properties measured by fair value, and rights frominsurance contracts, are not included.(26) Accounting of hedging instrumentsHedging instruments are the financial instr

391、uments adopted by the Company to avoid risks offluctuating product prices, namely use the expected change 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 o

392、n purchasing of aluminum materials. TheCompany considers the hedging instrument highly effective only 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 perio

393、d.2. The actual effectiveness is between 80% and 125%.601.2.1.7%3%The part of gains or loss from hedging 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 o

394、f absolute values of gain or loss since starting of hedging andthe accumulative variation of cash flow 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 writ

395、ten over to current income account in the same period with thegain or loss of the financial asset or its 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

396、over to current income account. The above hedging accounts areterminated as soon as expiration, sold, 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 estimation

397、sNo change of accounting estimations occurred in the year.(28) Correction of previous accounting faultsNo 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 cur

398、tain wall and metro screen doorinstallation projectsProperty rental incomeSales income of curtain wall and aluminummaterialsSales income of screen door materialsSales income from LED productsRate3%5%17%17%17%NotesCity maintenanceand construction VAT payable + business taxtaxEducation surtax VAT paya

399、ble + business taxLocal educationsurchargesVAT payable + business tax1% or 2%Note 1Note 1. Subsidiaries 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

400、. The Company and its subsidiaries located in Shenzhen are subject to 2% of612.25%the “three taxes” since January 1, 2011.Enterprise income taxName of companiesThe headquarterFangda DecorationFangda AutomaticShenzhen Fangda Yide New Material Co., Ltd. (FangdaYide)Shenzhen Fangda Gruoke Electronic Op

401、tical Tech Co., Ltd.(Fangda Guoke)Shenzhen Woke Semi-conductor Lighting Co., Ltd.(Shenzhen Woke)Fangda 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

402、)Note (1), (2)Note (1)Note (1)Note (1)Note (1), (4)Note (1)Note (1)Dongguan Fangda New Material Co., Ltd. (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 ta

403、x was reducedfrom 33% to 25%. High-tech enterprises recognized by the national government are subject 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

404、taxrate is increased to 24%.(5) According to the Certification of High-tech Enterprise issued by Shenzhen 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 Cor

405、poration Tax forthree years since the certification was awarded.(3) According to the Certification of 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 Dec

406、oration was entitled to enjoy 15% of CorporationTax for three years (including 2009) since the qualifications 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.

407、Property taxProperty tax rate applicable to the Company and subsidiaries is 1.2% basing on 70% of the 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.624.1.Personal income taxIndiv

408、idual income tax of the employees are paid by the Company on behalf.IV. Merger of enterprises and consolidated financial statements(1) Profiles of the subsidiariesSubsidiaries founded or investedNames ofsubsidiariesOwnershipof thesubsidiaryReg. Add.BusinesspropertyRegisteredcapitalRMB0000Legalrepres

409、entativeBusiness scopeDesigning, manufacturing,FangdaDecorationFully-ownedsubsidiaryShenzhenLtd. liability31,000.00and installation of curtainXiong Jianwei walls, glass shields, doors,windows, fences, andceilings.Designing,developing,technicalinstallation,FangdaAutomaticFully-ownedsubsidiaryShenzhen

410、Ltd. liability10,500.00WangShengguoand sales of PSD system;import & export;installation and processingof PSD.FangdaYide Co.Fully-ownedsubsidiaryShenzhenSino-foreignjoint ventureUSD320.00YangXiaozhuanDeveloping, designing,manufacturing of new typecomposite materialsResearching, developing,manufacturi

411、ng, trading, andinstallation engineering ofFangdaGuokeSubsidiary ofcontrolledsubsidiaryShenzhenLtd. liability(Sole investmentby legal person)5,000.00Yu Guoansemi-conductor materialand devices, electro-opticaldevices and equipment,electronic displayingdevices, video products;technical consulting ands

412、ervice; international trade.Production and selling ofnew materials, compoundFangdaNewMaterialFully-ownedsubsidiaryNanchangLtd. liability(joint venturebetweencompanies fromTaiwan, HongKong or Macau)USD1,200.00YangXiaozhuanmaterials, curtain walls,doors, windows, metalstructures, metal products,enviro

413、nment protectionproducts, metallurgyequipment, machinery,aluminum products, heatradiationmaterials,macromolecule materials.Designing, manufacturing,sales and installation ofFangdaAluminiumFully-ownedsubsidiaryNanchangLtd. liability(Joint venturewith foreigninvestedcompany)2,000.00aluminum sections f

414、orcurtain walls, doors, andYang windows; decorationXiaozhuan design, water and powersupply equipment, airconditioner installation.House renting, equipmentrenting.HK JunjiaFully-ownedsubsidiaryHKNoneHKD1.00InvestmentShenyangFangdaControlledsubsidiariesShenyangLtd. liability20,000.00WangShengguoManufa

415、cturing ofsemiconductor lightingmaterial and chips; lighting63sourceencapsulation;developing, manufacturing,technical consulting ofsemiconductorproducts;lightingdeveloping,designing, manufacturing,engineering,installationandtradingofsemiconductorlightingsystem;productsmaterialsrelatedandtosemi-condu

416、ctorlighting;trading of constructionmaterial; import and exportagency service of productsand technologies.Developing, designing andsales of new constructionmaterial;developing,designing, installation andtrading of curtain walls,PSDproducts,systems,metalLEDroofproducts, and solar-energyproducts;inter

417、iorDongguanNewMaterialCo., Ltd.Fully-ownedsubsidiary ofsubsidiaryDongguanLtd. liability(Sole investmentby legal person)21,280.00Xiong Jianweidecoration; water andpower system installation;installation and trade ofair-conditioning system;designing,installation,trade of lighting system;contracting of

418、overseascurtain wall projects anddomesticbiddingmanpowerinternationalprojects;outsourcing;import and export of goodsand technologiesNames ofsubsidiariesFangdaDecorationFangdaAutomaticFangdaYide Co.FangdaGuokeShareproportion(%)100.00100.00100.0064.58Voting rights(%)100.00100.00100.0064.58Actualinvest

419、ment atend of termRMB000031,000.0017,877.73USD320.0010,500.00Balance of other itemsactually formed netinvestment in the subsidiariesConsolidated?YesYesYesYesFangdaNew100.00100.00USD1,200.00YesMaterialFangdaAluminumHK JunjiaShenyangFangda100.00100.0064.58100.00100.0064.582,000.00HKD1.0012,916.00YesYe

420、sYesDongguanNewMaterial100.00100.0021,280.00YesCo., Ltd.Names ofsubsidiariesOwnershiptypeOrganizationcodeMinorshareholdersequityAmount for deducting minorshareholders equity in theminor shareholders equityNotes642.FangdaDecorationFangdaAutomaticFangdaYide Co.CorporationCorporationCorporation19244418

421、-275425429-361929454-0FangdaGuokeCorporation72856199-4See notesSee notesFangdaNewMaterialFangdaAluminumHK JunjiaCorporationCorporationNone74852611-715830664-0NoneShenyangFangdaCorporation66254891-382,362,870.18-1,974,598.07DongguanNewMaterialCorporation56457096-5Co., Ltd.Note: Fangda Guoke is the su

422、bsidiary under direct control of Shenyang Fangda. The minorityshareholders equity of Fangda Guoke has 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 controlN

423、ame of thesubsidiaries(short form)Ownershipof thesubsidiaryReg. Add.BusinesspropertyRegisteredcapital(RMB0000)LegalrepresentativeBusiness ScopeR&D,designing,production,ShenzhenWokeSubsidiary ofcontrolledsubsidiaryShenzhenLtd. liability1,000.00Yu Guoanafter service ofLED products;installation ofLED c

424、olordisplayer, cityandroadlighting system.Name of thesubsidiaries(short form)ShenzhenWokeNames ofsubsidiariesShenzhenWokeShareproportion(%)64.58OwnershiptypeCorporationVoting rights(%)64.58Organizationcode72855858-4Actual capitalinput at end ofreport term(RMB0000)1,899.13MinorshareholdersequitySee n

425、otesBalance of other items actuallyformed net investment in thesubsidiariesAmount for deducting minorshareholders equity in the minorshareholders equitySee notesConsolidated?YesNoteNote: Shenzhen Woke is the subsidiary under direct control of Fangda Guoke; while Fangda Guokeis the subsidiary under d

426、irect control of Shenyang Fangda. The minority shareholders equity of FangdaGuoke and Shenzhen Woke has 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

427、 in the report term.65111-1V. Notes to the consolidated financial statements(1) Monetary capitalBalance of book value at end of termBalance of book value at beginning of termOriginalExchangeTranslated toOriginalExchangeTranslated toItemscurrencyrateRMBcurrencyrateRMBI. CashRMB15,073.3515,073.359,841

428、.079,841.07USDHKD5,409.060.834,498.714,767.800.850934,057.07Cash subtotalII. Bank savings19,572.0613,898.14RMB427,024,473.37 478,568,182.50478,568,182.50USDHKD101,428.3574.576.560.83665,006.1162.01346,670.4774.576.62270.850932,295,894.5263.45Macao Dollar0.00BanksavingsubtotalIII.monetarycapitalOther

429、427,689,541.49480,864,140.47RMB13,678,509.2325,417,161.5025,417,161.50USD170,469.236.471,103,208.67100.26.6227663.59HKDSubtotalof-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 C

430、ourtfor the lawsuit involved by Fangda Decoration. This is not regarded as cash equivalent at preparing 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 gua

431、rantee, which are not regarded as cash equivalent at preparing of cashflow statement.(2) Notes receivable(1) Category of notes receiveableCategoriesBank acceptanceCommercial acceptanceBalance of book value at end ofterm1,550,000.0066Balance of book value atbeginning of term2,262,000.0014,229,007.92T

432、otal1,550,000.0016,491,007.92Note: Notes receivable has decreased by 90.6%, which was mainly due of trade acceptance draft.(2) Top 5 bank acceptance drafts endorsed but not due yet are:IssuerDate of issueExpired onAmountShenzhen Tianpai Door & WindowTechnologies Co., Ltd.2011.3.92011.9.93,000,000.00

433、Shenzhen Shezhuangzong DecorationEngineering Co., Ltd.ShenyangYuandaEngineering Co., Ltd.ShenyangYuandaEngineering 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.Total2011.5.112011.11.11553,92

434、6.267,553,926.26(3) Account receivable(1) Account receivable on categoriesBalance of book value at end of termCategoriesReceivableswithBook valueAmount ProportionBad debt provisionAmount RateNet amountmajorindividualamount and bad debtprovision providedindividuallyReceivables provided599,466,541.999

435、7.32%106,635,630.4617.79%492,830,911.53bad debt provision ingroupsIncl.Receivable599,466,541.9997.32%106,635,630.4617.79%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 debt16,499,671.5

436、82.68%16,499,671.58100.00%provision is providedTotal615,966,213.57100.00% 123,135,302.0419.99% 492,830,911.53Balance of book value at beginning of termCategoriesReceivableswithBook valueAmount Ratio (%)Bad debt provisionProvidingAmountrate (%)Net amountmajorindividualamount and bad debtprovision pro

437、videdindividually67ItemsReceivables providedbad debt provision in507,918,512.0496.95%111,244,947.2821.90%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 rec

438、eivablewith minor individualamount but bad debt15,988,232.583.05%15,988,232.58100.00%provision is providedTotal523,906,744.62100.00%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 oft

439、ermOriginal Exchange Translated tocurrencyrateRMBcurrencyrateRMBUSD2,847,661.286.4818,455,737.46 3,413,051.326.62 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 pr

440、ovided on age basis in the group:Balance of book value at end of termAgewithin 1 year1-2 yrs2-3 yrsOver 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 debtprovision9,396,022.377,812,616.8821,969,024.3367,457,966.88106,63

441、5,630.46Net amount303,798,336.0070,313,551.9251,261,056.7767,457,966.85492,830,911.53Balance of book value 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 debtprovisi

442、on7,081,926.525,216,187.8416,351,938.8582,594,894.07111,244,947.28Net amount228,978,456.1946,945,690.5038,154,523.9982,594,894.08396,673,564.76Details of receivable accounts with minor amount but provided of bad debt provisions individually:Description ofthe receivableaccountsBook value atend of ter

443、mBad debtprovisionRateReasonCurtainprojectreceivablewall803,340.45803,340.45100.00%Aged over 5 years, notexpectable to be retrieved68Description ofthe receivableaccountsBook value atend of termBad debtprovisionRateReasonCurtainprojectreceivablewall660,625.41660,625.41100.00%Aged over 5 years,expecta

444、ble to be retrievednotTrade receivable648,100.95648,100.95100.00%Aged over 5 years,expectable to be retrievednotCurtainprojectreceivablewall430,629.58430,629.58100.00%Aged over 5 years,expectable to be retrievednotTrade receivable433,868.60433,868.60100.00%Aged over 5 years,expectable to be retrieve

445、dnotCurtainprojectreceivableCurtainprojectreceivableCurtainprojectreceivableCurtainprojectreceivablewallwallwallwall354,177.00346,573.70316,861.34300,000.00354,177.00346,573.70316,861.34300,000.00100.00%100.00%100.00%100.00%Aged over 5 years,expectable to be retrievedAged over 5 years,expectable to

446、be retrievedAged over 5 years,expectable to be retrievedAged over 5 years,expectable to be retrievednotnotnotnotTrade 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 Comp

447、any has provided full baddebt provision, was amounted to RMB16,499,671.58.(2) There is no receivable account 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)

448、No receivable account has been deducted in current year.(4) No receivable account due from shareholders 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 CommercialRela

449、tionwith theCompanyClientClientAmount at endof term36,302,792.4424,098,058.91AgeWithin 1yearWithin 1% in totalreceivables5.89%3.91%69Property Co., Ltd.yearHainan Sanya Phoenix IslandDevelopment Co., Ltd.XinMoer Property Development(Shenyang) Co., Ltd.Shenzhen Metro Group Co.,Ltd.TotalClientClientCli

450、ent19,934,639.7732,358,942.7523,166,947.67135,861,381.54Within 1yearWithin 1yearWithin 1year3.24%5.25%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 (%)AmountProvidingrat

451、e (%)Other receivables with majorindividual amount and baddebt provision provided1,220,316.841.87%1,220,31.84100.00%individuallyOther receivables providedbad debt provision in groupsIncl. Receivable accounts notconsolidatedSub-total of group61,048,293.2961,048,293.2961,048,293.2993.76% 9,544,851.759

452、3.76% 9,544,851.7593.76% 9,544,851.7515.63%15.63%15.63%51,503,441.5451,503,441.5451,503,441.54Other account 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

453、beginning of termCategoriesBook valueAmount Ratio (%)Bad debt provisionProvidingAmountrate (%)Net amountOther 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

454、accounts notconsolidatedSub-total of groupOther account receivable with48,373,161.4748,373,161.4748,373,161.472,841,928.1692.25% 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%39,235,264.8739,235,264.8739,235,264.8770Itemsminor individual amount butbad d

455、ebt provision is providedTotal52,435,406.47100.00%13,200,141.6025.17%39,235,264.87Other 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 yrs2-3 yrsOver 3 yrsTotalAmount39,956,630.933,488,789.084,091,648.64

456、13,511,224.6461,048,293.29Proportion61.37%5.36%6.28%20.75%93.76%Bad debtprovision1,212,866.02348,878.911,227,494.596,755,612.239,544,851.75Net 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 yrsTotalAm

457、ount26,630,513.013,702,868.955,249,702.0012,790,077.5148,373,161.47Proportion50.79%7.06%10.01%24.39%92.25%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 valu

458、e at end of termOriginal Exchange Translated toBalance of book value at beginning oftermOriginal Exchange 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

459、 individually or minoramount but bad debt provision provided individually:Description ofother receivablesBook value atend of termBad debtprovisionRateReasonDepositreceivableDepositreceivableDepositreceivableDepositreceivableDepositreceivable1,220,316.84300,000.00224,875.84159,800.00150,000.001,220,3

460、16.84300,000.00224,875.84159,800.00150,000.00100.00%100.00%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 retrievedAged over 5 years,expectable to be retrieved

461、notnotnotnotnotTotal2,054,992.682,054,992.68Note : Receivables being provided full bad debt provisions this year were totaled to71RMB4,062,245.00.(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 ba

462、ck in the report term, or such account retrieved orwritten back at large percentage or major amount.(3) 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 receivab

463、le accounts:Name of thecompaniesSpecificationRelation withthe CompanyAmount atend of termAgePortion in totalother receivableaccounts (%)Wang Weihongprojectmanagement feecontractor3,154,006.68 Within 1 year4.84%ZhangjiakouChengtouCommercialDepositClient3,120,543.15 Within 1 year4.79%Centerprojectwith

464、in 1 yr /Xin Songmanagementcontractor2,740,327.611-2 yrs /2-34.21Finance Bureau offeeyrsNanchang Hi-tech Land retrievingDevelopment compensationauthority ofland property2,604,216.08 within 1 year4.00%ZoneKunmingConstructionBidding depositClient2,500,000.00within 1 yr3.84%Trade CenterTotal14,119,093.

465、5221.68(5) Prepayment(1) Demonstrated by ages:Balance of book value at end of termAgewithin 1 year1-2 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

466、.34572,230.90Net amount33,436,937.7392,968.89679,525.71316,430.5034,525,862.83Balance of book value at beginning of termAgeAmountProportionBad debtprovisionNet amount72within 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

467、%5.29%3.12%100.00%1,443.3710,329.88291,225.31269,232.34572,230.9018,166,367.10908,232.07810,773.23380,647.6520,266,020.05Note: 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 pr

468、epaid installationfee and trades.(2) Other top 5 debtors of prepayments:Name of thecompaniesShenzhen ZhonganLianfa Labor ServiceCo., Ltd.Relationwith theCompanySupplierBalance ofbook value atend of term5,126,582.91% in totalprepayment14.61%Date ofprepayment2011Reason ofunsettledService notprovided y

469、etGuangdongXingfaRights onAluminum Co., Ltd.Suppliers1,718,431.944.90%2011goods nottransferredNanchang QingyunpuJiahua New-type Walland Glass FirmSupplier1,548,292.724.41%December2010Rights ongoods nottransferredFujianMinfaRights onAluminum Co., Ltd.Supplier1,114,391.533.18%2011goods nottransferredS

470、henzhen ZhongshunLabor OutsourcingCo., Ltd.Supplier1,095,380.003.12%2011Service notprovided yetTotal10,603,079.1030.21%(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

471、at end of termBalance of book value at beginning of termItemsRawmaterialsProduct inprocessAmount38,160,358.6613,004,518.31Impairmentprovision225,543.53Book value37,934,815.1313,004,518.31Amount56,115,354.6543,221,748.57Impairmentprovision225,543.53Book value55,889,811.1243,221,748.57Finishedgoods in

472、18,897,114.822,161,154.6116,735,960.2114,201,337.842,224,683.5411,976,654.30stockAssetformed by177,033,139.92177,033,139.92164,193,924.07164,193,924.0773ItemsBalance of book value at end of termBalance of book value at beginning of termItemsAmountImpairmentprovisionBook valueAmountImpairmentprovisio

473、nBook valueconstructioncontractLow priceconsumableOEMmaterialsOn-roadgoods205.051,862,246.001,621,035.10205.051,862,246.001,621,035.10659,849.043,042,245.471,301,253.84659,849.043,042,245.471,301,253.84Total250,578,617.862,386,698.14248,191,919.72282,735,713.482,450,227.07280,285,486.41(2) Change of

474、 inventory impairment provisionsCategoriesRaw materialsProducts in stockTotalBalance ofbook value atbeginning 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) Ba

475、sis of providing impairment provision and situation of writing backPercentage ofamount writtenCategoriesBasis of providing impairmentprovisionReason of written backback in thebalance of theinventory at endof report termRaw materialsProducts in stockRealizable net value lowerthan realizable costReali

476、zable net value lowerthan realizable cost(7) Available-for-sale financial assetDisposable financial assets 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: imp

477、airment provision foravailable-for-sale financial assetsNet amount4,312,000.0004,312,000.0004,347,000.004,347,000.00Note 1: The available-for-sale financial asset is the 700,000 current shares of Tianjing GlobalMagnetic Card Co., Ltd.74-(8) Investment properties（1） Change of investment properties on

478、 fair value basis:Increased this termDecreased this termItemsFair value atbeginning of PurchasedtermFor own useortransferredfrominventoryGain/lossfromchange offair valueDisposedFair value atTransferred end of termfor own useI. Total costs1. Houses &buildings2. Land usingrightsII. Total of fair188,91

479、4,883.84188,914,883.841,359,927.84 187,554,956.001,359,927.84 187,554,956.00valuefluctuation1. Houses &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 &buildings271,226,33

480、2.73271,226,332.735,082,327.665,082,327.661,769,194.58 274,539,465.811,769,194.58 274,539,465.812. Land 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 has

481、decreased by investment property cost by RMB1,359,927.84 and the accumulated fluctuation of fairvalue 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 o

482、btained yet:Among the investment property, the workshop No.2 and No.3 located on Beihuan Road inNanshan 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 proper

483、ty was caused by adjusting of the 8th floor of Fangda Building fromrental property to self-owned property.(9) Fixed assets(1) Change of fixed assets and accumulated depreciations:ItemsI. Total value of originalBalance of bookvalue atbeginning ofterm384,511,171.89Increased thisterm71,991,445.39Decrea

484、sed thisterm6,508,785.19Balance ofbook value atend of term449,993,832.0975ItemsBalance of bookvalue atbeginning oftermIncreased thistermDecreased thistermBalance ofbook value atend of termfixed assets1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevicesII. Total of accumulati

485、vedepreciation1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevicesIII. Total of fixed asset netvalue1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevices212,269,992.86132,090,633.9611,248,300.7828,902,244.29142,559,061.2828,895,411.0291,185,236.256,88

486、3,467.4915,594,946.52241,952,110.61183,374,581.8440,905,397.714,364,833.2913,307,297.7726,063,985.8541,402,155.32215,816.024,309,488.206,107,321.952,959,567.251,570,094.52344,613.421,233,046.7665,884,123.4423,104,418.6039,832,060.80-128,797.403,076,441.441,382,131.053,304,418.2312,680.001,809,555.91

487、4,994,006.37890,903.492,927,229.041,175,873.841,514,778.82491,227.56377,189.1912,680.00633,682.07236,951,847.66170,188,371.0511,451,436.8031,402,176.58143,672,376.8630,964,074.7889,828,101.737,228,080.9115,652,119.44306,321,455.23205,987,772.8880,360,269.324,223,355.8915,750,057.14IV. Total of accum

488、ulativefixed assets impairmentprovision1. Houses & buildings1,397,396.095,270.201,392,125.892. Machinery1,397,396.095,270.201,392,125.893. Automobile4. Electronics and otherdevicesV. Total of fixed asset bookvalue1. Houses & buildings2. Machinery3. Automobile4. Electronics and otherdevices240,554,71

489、4.52183,374,581.8439,508,001.624,364,833.2913,307,297.7765,884,123.4423,104,418.6039,832,060.80-128,797.403,076,441.441,509,508.62491,227.56371,918.9912,680.00633,682.07304,929,329.34205,987,772.8878,968,143.434,223,355.8915,750,057.14Note 1: RMB6,107,321.95 of depreciation provided this term.Note 2

490、: The original value of fixed asset increased by RMB71,991,445.39, includes: retrieving of creditin term 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, an

491、d newly purchased properties.Note 3: Original value of fixed assets reduced by RMB6,508,785.19, mainly caused by disposal,76&Itemsdiscarding of fixed assets.(2) Property license not obtained yet:CategoriesDescription ofpropertyOriginal bookvalueAccumulateddepreciation:Net bookvalueNotesHousesbuildin

492、gsHouses inUrumuqi686,672.0058,366.95Idle, under628,305.05 procedures ofproperty certificateHousesbuildingsHousesbuildingsHousesbuildingsHousesbuildingsHousesbuildingsTotal& Multi-functionbuildingOffice buildingWorkshop B-1Workshop B-2Dalian WorldTrade Tower4,095,350.266,769,642.0018,966,977.906,495

493、,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 14,163,919.961,644,944.87 4,850,841.2824,197,300.0010,495,158.47 50,716,569.84Under procedures ofproperty certificateUnder procedures ofproperty certificateUnder procedures ofproperty certificateUnder pro

494、cedures ofproperty certificateUnder procedures ofproperty certificate(10) Construction in process(1) Construction in process:Balance of book value at end of termImpairment Net bookAmountprovision valueBalance of book value at beginning oftermImpairment Net bookAmountprovision valuePhase I pipes,road

495、s, and fenceEquipment to bereinstalled11,073,061.6111,073,061.61 9,573,061.6137,192,046.309,573,061.6137,192,046.30Equipment 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.

496、85Total26,674,644.8626,674,644.86 56,762,380.6456,762,380.64A、 Profile of major construction in process and changesProjectBudgetFundrecourseInitial ammountIncl. InterestAmountcapitalizationIncreased this termIncl. InterestAmountcapitalizationPhase I pipes,roads,and RMB9 mil. Independent 9,573,061.61

497、1,500,000.00fenceFangdaNanfangScienceTech GardenEquipment& RMB115.05mil.recruited9,225,304.29tobe37,192,046.30220,835.88reinstalled77Total(Continue)46,765,107.91Decreased this termIncl.10,946,141.17Amount at end of term% ofProjectAmountTransferred tofixed assetAmountIncl. Interestcapitalizationinves

498、tmenton budgetthis periodPhase I pipes, roads,and fenceFangdaNanfang11,073,061.61123%Science&Tech9,225,304.298.01%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) F

499、ixed asset disposalItemsFixed asset to bediscardedTotalBalance of book valueat end of term1,442,705.891,442,705.89Balance of book valueat beginning of term586,285.67586,285.67Reason of transferringto disposalto be discarded(12) Intangible assets and development expensesA、 Intangible assetsItemsI. To

500、tal of intangible asset initial valueLand using rights of Fangda Town (Phase I)(Note 2)Land using rights 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 ofterm138,2

501、85,542.378,543,250.004,783,050.00Land using rights of Fangda Science & TechGarden located in Gaoxin Road, 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 software4

502、0,006,806.7527,380,919.893,817,411.4434,659.00453,886.00162,219.6540,041,465.7527,834,805.893,979,631.09II. Total ofamortizationintangibleasset23,104,199.572,583,514.2725,687,713.8478ItemsFangda Town land using right (Phase I)Fangda Town land using right (Phase III)Land using rights of Fangda Scienc

503、e & TechGarden located on Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand using rights in 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 o

504、f Fangda Science & TechGarden located on Gaoxin Road, NanchangLand using rights of Shenyang FangdaLand using rights in DongguanPatent and classified techComputer softwareBalance ofbook value atbeginning ofterm3,901,567.761,331,282.251,198,529.242,585,514.3066,678.0112,591,549.481,429,078.53114,530,5

505、78.154,641,682.243,451,767.759,866,019.1739,453,276.9339,940,128.7414,788,799.452,388,903.87Increased 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 book

506、value at end ofterm3,974,283.441,379,112.751,329,126.853,005,932.20467,150.4613,884,649.131,647,459.01112,597,828.534,568,966.563,403,937.259,735,421.5639,032,859.0339,574,315.2913,949,585.802,332,743.04IV. Total of accumulated intangibleasset impairment provisionsFangda Town land using right (Phase

507、 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 in DongguanPatent and classified techComputer softwareV. Total of intangible asset book valueFangda Town land using right

508、(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 in DongguanPatent and classified techComputer software114,530,578.154,641,682.243,451,767.759,866,019.1739,453,276.9

509、339,940,128.7414,788,799.452,388,903.87-1,932,749.62-72,715.68-47,830.50-130,597.61-420,417.90-362,373.26-842,653.84-56,160.83112,597,828.534,568,966.563,403,937.259,735,421.5639,032,859.0339,577,755.4813,946,145.612,332,743.04Note 1: RMB2,583,514.27 amortized in the report term.79Note 2: In 1995, H

510、engxiang Jingfa Co. inputted 3,797.40 square meters of land valuedRMB8,543,250.00 to the Company when 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

511、号 engaged between the Company and ShenzhenBureau of Land Planning, the Company purchased the land using 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 Z

512、one Administration Committee and the Company, Fangda New Material Co., Ltd. hadpurchased the land of 177,047.14 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

513、 Asset Administration Co., Ltd. the minority shareholder, to Shenyang Fangda in term ofinvestment.Note 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 pur

514、chased the land using right of 66666 square meters (编号 2010T107 号) withRMB40,006,806.75.A、 Expenditures of development projectsItemsR&D expenseTotalBalance ofbook value atbeginning ofterm1,182,970.281,182,970.28Increasedthis term151,364.02151,364.02Decreased this termRecognizedAccounted intoascurren

515、t incomeintangibleaccountasset429,201.00429,201.00Balance ofbook value atend of term905,133.30905,133.30Note 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

516、termBalance ofbook valueat end oftermImpairmentprovision atend of termShenzhen Woke8,197,817.298,197,817.29Fangda 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 commo

517、n control in May 2007. The difference between the initial investment cost andrecognizable fair value of the investee has formed the goodwill of RMB8,197,817.29. No evidence of80Itemsimpairment shown with Shenzhen Woke Co. thus no impairment provision was provided.Note 2: The Company acquired the min

518、ority share equities of Fangda Yide Co. in August 2007. Thedifference between the initial investment cost 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 provide

519、d fully upon the goodwill.(14) Long-term amortizable expensesItemsBalance ofbook valueat beginningof termIncreasedthis termAmortizedthis termOtherdecrease ofthis termBalance ofbook valueat end oftermUpgrading of workshoprented byDecorationFangdaNanchang2,202,981.4433,750.00115,293.522,121,437.92Bran

520、chUpgrading of workshoprentedbyFangda623,212.2769,318.20553,894.07DecorationUpgrading of workshoprented 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

521、asset and deferred income tax liabilities already recognizedA. Details of un-neutralized deferred income tax asset and liabilities:Balance of book value at end of termBalance of book value at beginning oftermItemsDeductibleprovisionaldifferencesDeferred incometax assetDeductibleprovisionaldifference

522、sDeferred incometax assetAssetprovisionimpairment146,852,113.4225,876,748.35153,793,200.8826,448,912.08Openning 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

523、,633.15347,657.52174,630,535.4212,456.584,898,982.9152,148.6331,412,500.20Balance of book value at end of term81Balance of book value at beginning oftermAdjustmentofTaxableprovisionaldifferenceDeferred incometax liabilityTaxableprovisionaldifferenceDeferred incometax liabilityinvestment property121,

524、837,272.5428,930,168.72115,022,192.9327,342,717.60fair valueAdjustmentofsellablefinancial3,912,000.00938,880.003,947,000.00947,280.00asset 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 provisi

525、onal difference or losses by non-recognized deferred incometax assetsItemsAsset impairment provisionDeductible 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 A

526、luminum maypossibly acquire taxable gains enough to offset deferred income tax asset.(3) Deductible losses of non-recognized deferred income tax assets will due in following years:Year201120122013201420152016TotalEnd of term23,845,037.3812,126,192.0610,350,213.8317,726,273.125,800,989.1769,848,705.5

527、6Beginning of term3,197,346.0411,917,349.1512,126,192.0621,401,565.9617,893,930.4866,536,383.69NoteWithoutconsideringearliertermination ofsubsidiaries(16) Asset impairment provisionItemsBalance ofbook value atbeginning oftermIncreasedthis termDecreased this termWritten back TransferredBalance ofbook

528、 value atend of termBad debt provision141,005,552.36 6,264,548.84 9,951,402.044,069.47137,314,629.69InventoryimpairmentprovisionFixedasset2,450,227.0763,528.932,386,698.14impairmentprovision1,397,396.095,270.201,392,125.89Goodwillimpairment746,519.6282746,519.62ItemsBalance ofbook value atbeginning

529、oftermIncreasedthis termDecreased this termWritten back TransferredBalance ofbook value atend of termprovisionTotal145,599,695.14 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 atbeginn

530、ing oftermIncreasedthis termDecreasedthis termBalance ofbook value atend of termReason ofrestriction onproperty 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 1,955,646.58175,479.381

531、5,571,315.23Loan pledgepart for own use)Total184,286,809.08 4,492,927.66 1,769,194.58 187,010,542.16(18) 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

532、 value atbeginning of term200,000,000.00197,000,000.00397,000,000.00NoteNote 1Note 2Note 1: The short-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 mill

533、ion), and Fangda New Material (limited to RMB50 million).Note 2: In the guaranteed loans, RMB73 million 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 m

534、illion was the short-term loans obtained byFangda Automatic. For details please go to Note VI (II) 2.(19) Notes payableCategoriesBank acceptanceCommercial acceptanceBalance of book value at end ofterm35,760,723.635,891,845.1483Balance of book value atbeginning of term59,241,926.92984,091.73-Total41,

535、652,568.7760,226,018.65Note 1: Amount due in next fiscal term will be RMB41,652,568.77.Note 2: The outstanding 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 l

536、arge amount and aged over one year:SupplierFangda Buildingprovisional bookingDeawoo Group (SouthKorea)Fujian QuanzhouSansong CeramicDevelopment Co., Ltd.TotalAmount1,278,967.69900,000.00880,000.003,058,967.69DescriptionProject paymentTradeTradeReason of overdueNot claimed by thecreditorNot claimed b

537、y thecreditorNot claimed by thecreditor(2) No payables due to shareholders with 5% or above shares of the Company, nor any relatedparties.(21) Prepayment received（1） Advances received with large amount and aged over one yearCausation of notItemsAmountDate of occurContentssettledLineNo.2ofAdvances fo

538、rProject notWuhan Metro7,640,456.002010.01project workscommencedTotal7,640,456.00(2) No prepayment received 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 of

539、termIncreased thistermDecreasedthis termBalance ofbook value atend of termWage, bonus, allowancesubsidiesand10,008,820.62 53,273,766.37 56,174,271.267,108,315.73Employee welfare466,625.62466,625.62Social insuranceIncl. Medical insuranceBasic pensionUnemployment insuranceLabor injury insurance2,267,7

540、76.02547,030.981,580,801.8753,951.9060,035.282,267,635.52547,030.981,580,661.3753,951.9060,035.28140.50140.5084-ItemsItemsItemsBreeding insuranceHousing fundDismissing policyTrade union and educationallowanceNon-monetary welfareCompensations for disengagementother than dismissing policyOthersTotalBa

541、lance ofbook value atbeginning ofterm4,038,900.3814,047,721.00Increased thisterm25,955.99959,282.60-11,892.9213,537.50-56,992,881.03Decreasedthis 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 valu

542、e at end of termBalance of book value at beginningof termVATBusiness taxEnterprise income taxPersonal 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,

543、513.2710,240,451.93508,580.441,795,117.16221,094.98700,416.21874,485.65LocalsurchargesOther taxesTotaleducation35.6449,110.0826,999,435.451,299.1150,666.9421,520,643.71(24) Interest payableBalance of book value at end of termBalance of book value at beginningof termShort-term borrowinginterests paya

544、bleTotal548,793.05548,793.05610,850.84610,850.84(25) Other account payable(1) No other payables due to 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 term85DescriptionNingbo Lailai Energy-s

545、aving Doorsand Windows Co., Ltd.2,060,000.00DepositTransportation of project worksJiangxi Changxing Logistics 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)

546、Large amount other payables aged over one year:NingboItemsLailaiBalance of bookvalue at end of termDescriptionReason of overdueEnergy-saving Doors and2,060,000.00Project depositconstruction in processWindows Co., Ltd.Jiangsu Tianyi GarmentCo., Ltd.Shenzhen Yachang ColorPrinting Co., Ltd.Total1,500,0

547、00.00950,000.004,510,000.00Project depositDepositNot claimed by thecreditorOn rental(26) Expectable liabilitiesCategoriesMaintenance 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 liabilitiesBa

548、lance of bookBalance of bookItemsApplication and demonstration project of LED lighting tech(Note 1)Optical 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 hi

549、gh-powerchips (Note 5)Fund for optical products (Note 6)High-power-low-attenuation plug in LED technologiesTotalvalue 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.

550、004,250,000.00Note 1: According to document 粤科计字2008145 号 issued by Guangdong Department ofScience and Technologies, and Guangdong Department of Finance on November 24, 2008, Fangda8672Guoke was assigned to undertake the 揹 emonstrative project of LED production technologies with thegovernment fund o

551、f RMB3.5 million. According to the agreement engaged between Fangda Guoke andShenzhen Technologies and Information 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

552、.Note 2: According to the contract engaged between Shenzhen Technologies and Information Bureauand Fangda 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 pro

553、ject is under development.Note 3: According to the notice 沈新区委发（2009）52 号 issued by Shenyang Hunnan New 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 throughac

554、ceptance inspection yet.Note 4: According to the notice 沈新区委发（2009） 号 issued by Shenyang Hunnan New ZoneAdministration 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.

555、As of June 30, 2011, this project was not through acceptance inspection yet.Note 5. According to document 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

556、of equipment in two payment amounted to RMB1million. In the report term, Fangda Guoke has recognized the 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

557、RMB250,000.00.Note 6. According to document 沈信产发200827 号 issued by Shenyang Information IndustryBureau 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

558、of June 30, 2011, this project was not through acceptance inspection yet.Note 7: According to the “Scientific and technological project contract of Shenyang High-techZone” engaged between Shenyang High-tech Development Zone Administration Committee andShanyang Fangda in November 2010, the Committee

559、was about to provide finance of RMB800 thousandto Shenyang Fangda for purchasing of equipment. As of June 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 te

560、rmBalance of book valueat end of termshareholdingAmount ofsharesIssuingProportion of newsharesBonussharesTransferredfromreservesOthersSub-totalAmount ofsharesProportion87Class ofBalance of book value atbeginning of termChanged in current termBalance of book valueat end of termshareholdingAmount ofsh

561、aresIssuingProportion of newsharesBonussharesTransferredfromreservesOthersSub-totalAmount ofsharesProportionI. Shares withtradingconditionslimited1.State-ownedshares2. National legalperson shares3. Other domesticshares48,014,8289.52%24,007,41424,007,414 72,022,2429.52%Incl.Non-governmentdomestic leg

562、al18,200,0003.61%person shares9,100,0009,100,000 27,300,0003.61%Domesticnaturalperson29,814,8285.91%shares4.Overseas14,907,41414,907,414 44,722,2425.91%shareholdingIncl. Shares heldby foreign legalpersonsForeignnaturalsharespersonTotal ofconditional shares48,014,8289.52%24,007,41424,007,414 72,022,2

563、429.52%II. Shares withouttradingconditionslimited1. Common sharesin RMB2. Foreign shareslisted at home232,624,317223,967,45946.10%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%shares22

564、8,295,887228,295,887 684,887,66390.48%Total of capitalshares504,606,604100.00%252,303,301252,303,301 756,909,905100.00%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

565、capital shares of 504,606,604 as of December 31, 2010, capital reserves were to88capitalized on 5 to 10 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.

566、Note 3: As of June 30, 2011, the book balance of conditional shares was 72,022,242, including71,917,800 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

567、atbeginning of term290,541,523.4843,892,491.44334,434,014.92Increasedthis termDecreased thisterm252,303,301.0026,600.00252,329,901.00Balance 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 wasca

568、used by capitalizing of common reserves according to the resolutions adopted by the ShareholdersMeeting 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 reserv

569、esChange of surplus reserves:StatutoryreservesItemsTotalsurplusBalance of bookvalue atbeginning of term17,834,977.9717,834,977.97Increased thistermDecreased thistermBalance ofbook value atend of term17,834,977.9717,834,977.97(31) Retained profitChange of retained profit:ItemsProfit retained from end

570、 of previous periodPlus: Adjusted amount of retained profit atbeginning of year (-“ for decrease)Profit not distributed at the beginning of termPlus: Net profit attributable to owners of theparent companyAttributable profitLess: Statutory surplus reservesOptional surplus reservesCommon risk provisio

571、nsCommon share dividend payable89Current term153,115,142.18153,115,142.1846,094,698.26199,209,840.44ininItemsCommon share dividend transferred tocapital shareRetained profit at the end of term(32) Operational turnover and costs(1) Details of business turnover and costs:Current term199,209,840.44Item

572、sTurnoverIncl. Main business turnoverOther business incomeOperation costIncl. Main business costOther 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 year423,379,762.74401,760,236.8121,619,525.9333

573、9,167,650.59330,318,126.578,849,524.02(2) Main business turnover classified on industries:IndustriesOccurred current termOperationTurnovercostAmountsame period last yearTurnovercostoccurredOperationMetal productionRailroad industry485,234,819.9063,530,580.66388,995,725.0853,584,619.99325,621,513.697

574、1,094,433.93261,964,502.9158,550,560.42Lightingproduct7,467,827.526,956,004.225,044,289.189,803,063.24industryTotal556,233,228.08449,536,349.29401,760,236.81330,318,126.57(3) Business segments on districts:Name of districtsOccurred current termOperationTurnovercostAmountsame period last yearTurnover

575、costoccurredOperationDomesticOverseasTotal492,995,212.2063,238,015.88556,233,228.08408,525,736.3641,010,612.93449,536,349.29390,733,338.5411,026,898.27401,760,236.81321,634,382.278,683,744.30330,318,126.57(4) Turnover contributed by top 5 clientsNo.1No.2No.3No.4Ranks of clientsOccurred current term7

576、0,628,120.3054,382,714.1547,004,202.3544,315,598.3290Portion in total turnover12.20%9.39%8.12%7.65%-ItemsNo.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 amountAccumulated

577、costs occurredAccumulatedgross profitrecognized(“-“ for loss)AmountsettledPredictedlossCause forpredictedlossBlock1-5 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 taxesB

578、usiness taxCity maintenanceand construction taxEducation surtaxProperty taxOthersTotalOccurred current 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 - 1

579、See Note III - 1(35) Sales expenseOccurred current termAmount occurred in sameperiod last yearManpowerFreight and misc.After-salesBusiness tripsBusiness reception expensesMaterial consumableOffice expensesAdvertisement and exhibitionRentalTestingConsultingMisc. expenses914,557,707.693,564,345.80600.

580、001,385,153.93845,239.04224,038.91115,370.20234,903.52485,846.59292,219.6635,800.002,296,497.083,713,005.352,237,294.51425,407.911,377,579.181,349,640.35719,781.9755,189.33835,252.86282,568.71109,453.050.001,627,882.13ItemsItems-Total14,037,722.4212,733,055.35Note: Accrual amount of current period i

581、ncreased by 22.75% over the same period of last year,which was caused by increase of labor and transportation expenses.(36) Administrative expenseOccurred current termAmount occurred in sameperiod last yearManpowerDepreciation and amortizationAgenciesTaxMaintenance feeWater and electricityOffice exp

582、ensesBusiness tripsBusiness reception expensesRentalLawsuitMaterial consumableProperty management feeMisc. 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

583、,666.424,334,810.591,636,653.292,680,214.842,163,150.57911,556.36511,440.89753,269.371,050,093.26379,777.11195,530.00200,561.55546,514.786,115,662.4839,721,901.51Note: Accrual amount of current period increased by 16.37% over the same period of last year,which was caused by increase of labor expense

584、s.(37) Financial expensesOccurred current termAmount occurred in sameperiod last yearInterest expenseLess: 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

585、.50655,857.65236,298.819,323.921,668,533.3910,189,597.13Source of income from fluctuation offair valueInvestment property measured at fairvalueOccurred current term5,082,327.6692Amount occurred in sameperiod last year6,553,456.32ofTotal(39) Investment income(1) Investment income by resources:Sources

586、 of investment gains5,082,327.66Occurred current term6,553,456.32Amount occurred insame period last yearInvestmentgainsfromdisposalofavailable-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 9

587、9.51% over the same period of last year,which was caused by greater gains from disposal of available-for-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 year854,610.52

588、854,610.52ItemsOccurred currenttermAmount occurred insame period last yearCarried to currentcontingent gain/lossGains from disposalnon-current assets498.6710,727,318.70498.67Incl. Gains from disposal offixed assetsGains from debt reorganizationGovernment subsidiesPenalty incomeIncome from penalties4

589、98.6763,800.0078,830.005,000.004,181,049.3320,603.213,673,500.0086,341.654,000.00498.6763,800.0078,830.005,000.00Payable 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 Decoratio

590、n retrieved the overdue project payment in termof property, including RMB4,863,766.62 of interests. (2) 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 compensati

591、on by Fangda Aluminum last year.93Items1.(42) Non-operational expenditureItemsOccurred currenttermAmount 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 f

592、rom debt restructuringPenalty paidOutgoing donationsOthersTotal247,866.36203,000.00139,007.59589,873.95301,542.48227,555.801,360.00572,762.2027,391.941,130,612.42247,866.36203,000.00139,007.59589,873.95(43) Income tax expensesComposition of income tax expenses:Income tax calculated according to the

593、lawOccurred current termAmount occurred in sameperiod last yearand regulations of current termDeferred 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 Fa

594、ngda Automatic.Note 2. Deferred income tax was mainly the taxable temporary differences caused by fluctuation 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

595、 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 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 termSa

596、me period of last termProfit of the report periodBasicearnings perDilutedearningsBasic Dilutedearnings 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 dedu

597、cting of0.0510.0510.0190.019non-recurring gain/loss (II)942.1245677789101319Formula of earnings per shareItemsNet 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 sh

598、areholders of the parent company afterdeducting of income tax influences7,709,204.6520,442,939.40Net profit 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

599、 share dividend3=1-238,385,493.61504,606,604252,303,30113,165,642.02680,177,1066Amount of shares increased 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 termA

600、mount of shares decreased by repurchasing of shares inthe report termThe number of months since the next 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+6711-8911-1012756,909,90

601、512680,177,106Weighted average of common shares issued outsideadjusted for merger under common control (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

602、-22%Amount of shares increased by transforming or exercisingof company bond, subscription certificate, 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

603、share=P0SS= S0S1SiMiM0 SjMjM0-SkP0 = Net profit attributable to the common shareholders or net profit 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 term95S1 = increased

604、shares due to capitalizing mon reserves or dividend Si = shares increased due to placing of new shares 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

605、= accumulative number ofmonths from the next month of share increasing to the end of report term; Mj = 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 ofcomm

606、on shares increased by share option certificates, future option certificates, and convertible bonds)P1 = 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 ofdilut

607、ing potential common shares, and adjusted according to Enterprise Accounting Standard and relatedregulations.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 theminimu

608、m level.None of the amounts of common shares issued outside or potential common shares hasgreatly changed during the balance sheet date to this report is approved, no potentialcommon shares with potential dilution.960.001.Items(45) Other misc. incomesItems1. Gains (losses) from available-for-sale fi

609、nancial assetsLess: Income tax influence of available-for-sale financialassetsNet amount written into 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 bas

610、isNet amount written into other gains and transferredinto gain/loss in previous termsSub-total3. Amount 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 termsAdjus

611、ted amount transferred to initial amount of thetarget projectSubtotal4. Difference from translating of foreign currency financialstatementsLess: Net amount of disposing overseas business andtransferred to current gain/lossSub-total5. OthersLess: Income tax influence by other accounted into othermisc

612、. incomesNet amount accounted into other misc. income andtransferred into current gain/loss in previous 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,

613、410.96-21,210.412,694,453.18-3,019,653.73-1,648,500.00-217,125.002,845,166.75-4,276,541.75-7,296,195.48Amount of the CurrentTermAmount of the PreviousTermInterest incomeAllowance incomeBidding deposit paid971,869,222.1768,663.6417,176,039.631,470,819.534,623,500.0013,991,502.002.Items3.ItemsNet amou

614、nt of trade accountsOthersTotalOther cash paid related to operation9,721,956.286,010,447.9434,846,329.6610,449,421.259,014,591.6839,549,834.46Amount of the CurrentTermAmount of the PreviousTermAdministrative expenseSales expenseDeposits and securitiesIndividual borrowingDeposit for draft, netOthersT

615、otalOther cash paid related to financing16,751,465.529,480,014.737,553,798.105,472,352.313,781,035.2520,296,798.8363,335,464.7410,157,049.595,202,990.1816,405,862.485,820,664.179,854,385.8210,586,694.5658,027,646.80Payment of share placing feeAmount of the CurrentTermAmount of the PreviousTerm2,978,

616、629.66Fee of share capital re-registration111,983.72Total111,983.722,978,629.66(47) Appendix of Cash Flow 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 provision

617、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 (“-“ for gains)Loss from fluctuation of fair value (“-“ for gains)Financial expense

618、s (“-“ for gains)Investment loss (“-“ for gains)98Amount of theCurrent Term44,120,100.19-3,686,853.206,107,321.462,586,954.46235,157.00247,367.69-5,082,327.6610,220,855.72-15,342.47Amount 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

619、-3,174,066.97Supplementary Info.Decrease of deferred income tax asset (“-“ for increase)Increase deferred 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 O

620、thersCash flow generated by business operation, net2. Major investment and financing activities not involving 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: Init

621、ial balance of cashPlus: Balance of cash equivalents at the period endLess: Initial balance of cash equivalentsNet 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 time

622、Usable money in Central BankMoney saved in associated financial bodiesMoney from associated financial 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 t

623、he Company99Amount of theCurrent Term-44,529.971,570,651.1232,157,095.62-117,891,506.0817,314,765.64-12,160,290.48415,709,113.55468,878,715.15-53,169,601.60Amount 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.

624、97-71,345,047.8326,022,948.81-39,527,323.06498,849,443.70210,823,550.83288,025,892.87Initial ammount468,878,715.1513,898.14468,864,140.47676.54468,878,715.15Ltd.1.FangdaName of thepartiesOwnershiptypeReg.Add.LegalrepresentativeBusinesspropertyRegisteredcapital(RMB0000)OrganizationcodeShareholdingin

625、theCompanyVotingpower intheCompanyShenzhenBanglinTechnologiesLtd.liabilityShenzhenChen JinwuIndustrialinvestment3,000.00 72984005-59.09%9.09%DevelopmentCo., Ltd.ShenzhenShiliheInvestment Co., liabilityShenzhen Wang ShengguoIndustrialinvestment1,978.0992 72984450-72.36%2.36%Ltd.HongKongOnforceInterna

626、tionalLtd.liabilityHKIndustrialinvestmentN/A1.63%1.63%Co., Ltd.2 Particulars of the subsidiariesPlease see Note IV.3 Other related partiesName of the partiesShenzhen Fangda SpecialDecoration Engineering Co., Ltd.(former Shenzhen Fangda SpecialStructure Co., Ltd.) (Fangda SpecialDecoration)Song Wenqi

627、ngRelation with the CompanyMr. Song Wenqing, Supervisorof the Company used to beDirector of this company(resigned on August 11, 2010)Original supervisor of theCompany (resigned on MarchOrganization code19229492-X25, 2011)(2) Related party transactionsRelated contractingOffer of contracting:Name ofth

628、eemployerFangdaDecorationName ofthecontractorSongWenqingCategory ofasset to beofferedProjectcontractingCommencedateDate ofwinning inbiddingTerminationDateCompletionof projectPricing basisofcontractingAgreementpriceContractamount(RMB0000)772.94FangdaProjectSpecialDecoration Decoration contractingDate

629、 ofwinning inbiddingCompletionof projectAgreementprice2,323.08Note. Contract amounts in above table refer to the contracted projects in process in the report term.1002.1.Guarantees among the related parties(1) Guarantees among the related companies within the consolidation range:TheguarantorFangdaDe

630、coration,FangdaAutomatic,Fangda NewMaterialTheCompanyTheCompanyTheCompanyTheCompanyTheCompanyTheCompanyThebeneficiaryTheCompanyFangdaAutomaticFangdaDecorationFangdaDecorationFangdaDecorationFangdaDecorationFangda NewMaterialAmountguaranteed24,000,000.0026,000,000.0050,000,000.0050,000,000.0020,000,0

631、00.0030,000,000.0020,000,000.0020,000,000.0030,000,000.0010,000,000.0030,000,000.0016,000,000.0015,000,000.0015,000,000.0027,000,000.00Start 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

632、12 2011Sept 29 2010Due dateSept. 1 2011Sept. 1 2011Sept. 1 2011Sept. 2 2011Sept. 9 2011Sept.16 2011Feb.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

633、 loans.(2) As of the date of this report, Fangda Decoration has provided guarantees for thecontract engaged 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 influ

634、ences on financial statusPlaintiffFangdaGuokeThe defenderHainan TianyiInternationalBuilding Co.,CasedescriptionprojectpaymentlawsuitThe courtHaikouLonghuaPeoplesTarget amountRMB2,450,811.54and interestProgressUnder trial1012.3.87Ltd.CourtThe1stWangWeihongFangdaDecorationProjectdisputeMiddle Court RM

635、B17.07of and interestsmilUnder trialChongqingNote 1: On December 17, 2009, Fangda Guoke appealed to Haikou 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 overdu

636、e payment and relative interests. Thecase was under trial as of June 30, 2011.Note 2: In 2010, Wang Weihong 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

637、 deposit of RMB12 million of Fangda Decoration was frozen by thecourt.Major lawsuits settled but not executed 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

638、theoutstanding payment of RMB22,112,004.30 and interests. On July 28, 2008, Dalian ArbitrationCommittee judged 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 ch

639、arged since December 1, 2001; interest of RMB1,779,802.60 will becharged since December 1, 2002.) On June 1, 2011, Dalian Middle Court issued the judgment （2011）大执一恢 1 字第 47、 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

640、Trade Center located at 25 Tongxing Street, ZhongshanDistrict, Dalian were under possession of Fangda Decoration. 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 Mi

641、ddle Court issued the Civil Judgment （2004）并民初字第 322 号 that Shanxi No.2 Construction Co., Ltd. and Shanxi 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

642、not retrieved yet.(3) On January 2, 2003, Guangzhou Middle Court issued the Civil Settlement Letter （2002）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,

643、000.00, and the rest of payment has not been received yet.Other contingent liabilitiesAs of June 30, 2011, 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

644、, 2011.102VIII. Significant commitments(1) Significant commitments1. Please see Note V. for pledges made 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 Indus

645、try Town is granted.2. Details of guarantees provided between the Company and its subsidiaries for bank credits 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 de

646、tails please go to Note VI(II) 2Fangda AutomaticFangda Decoration310,000,000.00This was guarantee forguarantee letter credit and crossFangda AutomaticTotal100,000,000.00896,600,000.00guarantees were provided byFangda Decoration and FangdaAutomatic(2) Details of guarantees provided to the Company for

647、 bank credit up to June 30, 2011:Name of companiesFangda DecorationFangda AutomaticFangda New MaterialTotalAmount50,000,000.0050,000,000.0050,000,000.00150,000,000.00NoteFor details please go toNote VI (II) 2Note: For details of guarantee letters please go to Note VIII (I) 2 (1).(2) Fulfilling of co

648、mmitments made in previous termsCommitments made by the Company in previous terms were exercised normally 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-ter

649、m bondsThe 15th meeting of the 5th term of Board was hold on November 11, 2010, on which the“Proposal to 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 wo

650、rking capital of the Company and its fully-owned subsidiaries and replacing of somebank loans.(2) Company restructuring103ThisThe 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

651、 of its assets, including inventories, equipment, andintangible assets (patents) will be transferred to Shenyang 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

652、 the Company, has adopted the resolutions at the 7th meeting of the1st board of directors (沈方（董）2011第004号) 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) LeasesD

653、etails of property leasing as of June 30, 2011.Category of property for rentInvestment propertiesTotalBalance 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 ofte

654、rmGain/lossfrom changeof fair valuein the termAccumulativechange in fairvalue accountedinto equitiesImpairmentprovisionsprovided inthe currenttermFair value atend of termI. Financial assets1. Financial assets onfair value andchanges accountedinto current gain/loss(Derivatefinancial assets(Derivatefi

655、nancial not included)assets excluded)2. Derivate financialassets3. Disposablefinancial assets4,347,000.00-35,000.00-26,600.000.004,312,000.00II.propertyInvestment271,226,332.73 5,082,327.660.000.00 274,539,465.81III.Productionbiological assetsIV. OthersTotal of assets275,573,332.73 5,047,327.66-26,6

656、00.000.00 278,851,465.81104X. Notes to the main items of the financial statements of the parent company(I) Account receivable(1) Account receivable on categoriesBalance of book value at end of termCategoriesBook valueAmount ProportionBad debt provisionAmount RateNet amountReceivables with majorindiv

657、idual amount and baddebt provision providedindividuallyReceivables provided baddebt provision in groupsIncl. 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,

658、719.35Account receivable withminor individual amount butbad debt provision isprovidedTotal7,964,960.33100% 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

659、baddebt provision providedindividuallyReceivables provided baddebt provision in groupsIncl. Receivable accountsnot 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% 7,917,726.9

660、0Account receivable withminor individual amount butbad debt provision isprovidedTotal10,467,296.51100.00% 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 yearAmount2,297,211.55Propo

661、rtion28.84%Bad debtprovision68,916.35Net amount2,228,295.201-2 yrs2-3 yrs5,667,748.7871.16%1,700,324.633,967,424.15Over 3 yrs105Total7,964,960.33100.00%1,769,240.986,195,719.35Balance of book value at beginning of termAgewithin 1 yearAmount2,187,479.05Proportion20.90%Bad debtprovision65,624.37Net am

662、ount2,121,854.681-2 yrs2-3 yrs8,279,817.4679.10%2,483,945.245,795,872.22Over 3 yrsTotal10,467,296.51100.00%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 repor

663、t term, or such account retrieved orwritten back at large percentage or major amount.(3) No receivable account 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

664、term:Name of the companiesGuangzhou Metro CompanyRelation with theCompanyScreen door clientAmount atend of 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

665、 of termCategoriesBook valueAmountRatio(%)Bad debt provisionProvidingAmountrate (%)Net amountOther receivableswithmajorindividual amountandbaddebtprovision providedindividuallyOther receivablesprovided bad debtprovision in210,199,551.0499.97%564,672.410.27%209,634,878.63groupsIncl.Receivableaccounts

666、not2,526,869.951.20%564,672.4122.35%1,962,197.54consolidated106AgeReceivableaccount within theconsolidation207,672,681.0998.77%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

667、.00%debt provision isprovidedTotal210,252,597.04 100.00%617,718.41100.00%209,634,878.63Balance of book value at beginning of termCategoriesBook valueAmountRatio(%)Bad debt provisionProvidingAmountrate (%)Net amountOther receivableswithmajorindividual amountandbaddebtprovision providedindividuallyOth

668、er receivablesprovided bad debtprovision in201,041,444.0799.97%586,474.320.29%200,454,969.75groupsIncl.Receivableaccountsnot3,253,600.461.61%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%5

669、86,474.320.29%200,454,969.75Otherreceivableaccountwithminor individualamount but bad53,046.000.03%53,046.00100%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 va

670、lue at end of termAgewithin 1 year1-2 yrsAmount1,476,636.9511,858.00Ratio (%)0.73%0.01%Bad debtprovision44,299.111,185.80Net 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 term107Amoun

671、tRatio (%)Bad debtprovisionNet amountwithin 1 year1-2 yrs2,203,367.4611,858.001.10%0.01%66,101.021,185.802,137,266.4410,672.202-3 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

672、 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 offsetting of other receivable account.(4) As of December 31, 2010, no other receivables due from shareholders with

673、 5% or above sharesof the Company.(5) Top 5 debtors of other receivable accounts:Portion in totalName of thecompaniesSpecificationRelation withthe CompanyAmount at endof termAgeotherreceivableaccounts (%)FangdaDecorationCurrentaccountControlledsubsidiaries159,322,832.25within 1year75.78%FangdaMateri

674、alHK JunjiaNewCurrentaccountCurrentaccountControlledsubsidiariesControlledsubsidiaries8,704,080.925,052.6930,375,199.12within 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Cha

675、ngshouPharmacy Co.,Compensationfor buildingTradingcompany984,375.00Over 3 yrs0.47%Ltd.Total(6) Receivable account due from related parties198,529,036.3198.69%Name of thecompaniesFangda DecorationRelation with theCompanyControlledsubsidiariesAmount at end of term159,322,832.25Percentage in total of o

676、therreceivables75.78%FangdaMaterialHK JunjiaNewControlledsubsidiariesControlled8,704,080.9230,380,251.814.14%14.45%108subsidiariesFangda GuokeShenyang FangdaFangda WokeFangda AutomaticTotalControlledgrand-subsidiaryControlledsubsidiariesControlledgrand-subsidiaryControlledsubsidiaries8,103,477.20243

677、,182.3025,489.84893,366.77207,672,681.093.85%0.12%0.01%0.42%98.77%(III)Long-term share equity investmentLong-term equity investment:Companyinvested inFangdaDecorationCalculatingbasisCost basisInvestmentcost305,000,000.00Balance ofbook value atbeginning ofterm305,000,000.00Changed thisterm (- fordecr

678、ease)Balance ofbook value atend of term305,000,000.00FangdaAluminiumFangda Yide Co.HK JunjiaCost basisCost basisCost 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 F

679、angdaTotalCost basis109,560,000.00 108,852,073.85699,160,031.73 658,733,745.58108,852,073.85658,733,745.58Companyinvested inShareproportion(%)Voting rights(%)ImpairmentprovisionImpairmentprovisionprovided thistermCash dividendof the currenttermFangdaDecoration98.3998.39FangdaAluminiumFangda Yide Co.

680、HK JunjiaFangdaAutomatic997510090.48997510090.4819,800,000.0019,907,760.0010,600.00FangdaNew7575109inMaterialShenyang Fangda64.5864.58Total(IV)Operational turnover and costs39,718,360.00(1) Details of business turnover and costs:ItemsTurnoverIncl. Main business turnoverOther business incomeOperation

681、 costIncl. Main business costOther business cost(2) Turnover on categories of productsOccurred current term20,049,926.081,022,878.4619,027,047.625,151,318.51671,466.394,479,852.12Amount occurred insame period last year18,558,245.60184,615.3818,373,630.224,777,841.15131,726.944,646,114.21Categories o

682、f productsMetro screendoorOccurred current termOperationTurnovercostAmountsame period last yearTurnovercostoccurredOperationproductsRentalTotal1,022,878.4619,027,047.6220,049,926.08671,466.394,479,852.125,151,318.51184,615.3818,373,630.2218,558,245.60131,726.944,646,114.214,777,841.15(3) Turnover fr

683、om top 5 clientsNo.1No.2No.3No.4No.5Ranks of clientsTotalOccurred current term3,306,400.021,221,126.681,022,878.46563,556.54431,670.006,545,631.70Portion 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 t

684、o cash flow of operation:Net profitPlus: Asset impairment provision110the CurrentTerm5,475,020.08-802,130.54same 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 disp

685、osal 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)Decrease of deferred income tax asset (“-“ for increase)I

686、ncrease deferred 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 acti

687、vities not involving in cashflowLiabilities 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 balan

688、ce of cash equivalentsNet increasing of cash and cash equivalentsthe CurrentTerm1,077,799.18325,575.972,356.10-4,547,127.661,965,559.92132,386.171,507,171.12721,324.62-628,535.905,229,399.0634,000,832.4930,252,759.443,748,073.05same period oflast year734,292.69447,681.75-6,498,256.322,648,600.20-434

689、,125.323,985,213.312,659,100.34-7,614,421.601,624,459.77349,325,681.0142,274,488.50307,051,192.51XI. Supplementary 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 follo

690、wings:ItemsGain/loss from disposal of non-working capital, including theneutralized part of the impairment provision provided alreadyRefunding and exemption of taxes in excess of authority orwithout official approval documentsGovernment subsidies accounted into current income account(except for thos

691、e government subsidies closely related to theCompanys business, and received at national statutory standardand amount)111Occurredcurrent term-247,367.6963,800.0NoteItemsCapital adoption fee collected from non-financial organizationsand accounted into current gain/lossOccurredcurrent term4,863,766.62

692、NoteReceiving of interestof project paymentdue from DalianYunshan projectGain/loss from differences between the cost of enterprisemerger and the fair value of recognizable net asset of theinvested entitiesGain/loss from non-monetary assetsGain/loss from commissioned investment or assetsAsset impairm

693、ent provisions provided for force-majeurGain/loss from debt reorganizationEnterprise reorganizing expenses, such 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 conso

694、lidationGain/loss generated by contingent liabilities without connectionwith main businessesGain/loss from change of fair value of transactional asset andliabilities, and investment gains from disposal of transactionalfinancial assets and liabilities and sellable financial assets, otherthan valid pe

695、riod value instruments related to the Companyscommon businessesRestoring of receivable account impairment provision testedindividuallyGain/loss from commissioned loansGain/loss from change of fair value of investment propertymeasured at fair value in follow-up measurementInfluence of one-time adjust

696、ment made on current gain/lossaccount according to the laws and regulations regarding tax andaccountingConsigning 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

697、 non-recurring gain/lossLess: Influenced amount of income taxNet non-recurring gain/loss (influence on net profit)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

698、holders of theCompany after deducting of non-recurring gain/loss(2) Net income on asset and earnings per share1125,082,327.66191,727.769,954,254.35-2,244,387.087,709,867.27-662.627,709,204.6538,385,493.61According to “Information Disclosure Rules No.9 Calculation and disclosure of net earnings onass

699、et and earnings per share ( 中 国 证 券 监 督 管 理 委 员 会 公 告 20102 号 ) 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:Current termEarnings per shareProfit of the report periodNet profit attr

700、ibutable to commonshareholders of the CompanyNet income on asset,weighted4.46%Basic earningsper share0.061Dilutedearnings 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

701、 the report periodNet profit attributable to commonshareholders of the CompanyNet income on asset,weighted5.28%Basic 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 2011113