1、 方大集团股份有限公司 CHINA FANGDA GROUP CO.,LTD.Semi-annual Report 2006 Important Statement The Board of Directors and the directors of the Company guarantee that there are no significant omissions,fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilit
2、ies for the truthfulness,accuracy and completeness of the Report.This report has been examined and adopted by the 12th meeting of the 4th term of Board.Mr.Wen Simei,the independent director absent the meeting for business reason,he entrusted independent director Shao Hanqing to exercise his right of
3、 voting and issued the independent opinions.The Semi-annual Report is not audited.Mr.Xiong Jianming,the Chairman of Board,Mr.Lin Kebin,the Financial Principal declares:the Financial Report carried in this report is authentic and completed.This report is prepared both in English and Chinese.When ther
4、e is any conflict in understanding,the Chinese version shall prevail.2 Definitions The following terms are defined to the companies goes after them unless otherwise stated.the Company:China Fangda Group Co.,Ltd.The Group:the Company and its subsidiaries Fangda Decoration:Shenzhen Fangda Decoration E
5、ngineering Co.,Ltd.Fangda Yide:Fangda Yide New Material Co.,Ltd.Fangda Security:Shenzhen Fangda Security Technology Co.,Ltd.Fangda Structure:Shenzhen Fangda Special Structures Co.,Ltd.Fangda Aluminium:Jiangxi Fangda New-type Aluminium Co.,Ltd.Fangda Guoke:Shenzhen Fangda Guoke Electri-Optical Techni
6、cal Co.,Ltd.Fangda Fuke:Jiangxi Fangda Fuke Information Co.,Ltd.Fangda Automatic:Shenzhen Fangda Automatic System Co.,Ltd.Fangda New Materials:Fangda Jiangxi New Materials Technology Co.,Ltd.Fangda US:Fangda Technology US Co.Fangda Logistics:Shenzhen Fangda Logistics Co.,Ltd.HK Junjia:Hong Kong Junj
7、ia Group Co.,Ltd.Banglin:Shenzhen Banglin Technology Development Co.,Ltd.Shilihe:Shenzhen Shilihe Investment Co.,Ltd.Onforce:Onforce International Co.,Ltd.LED:GaN Lighting Diode Semiconductor 3 Table of Contents I.Company Profile.4 II.Movement of Capital Share and Major Shareholders.7 III.Particular
8、s about the Directors,Supervisors and Senior Executives.10 IV.Business Analysis.11 V.Significant Events.14 VI.Financial Report.17 VII.Documents for Reference.17 4 I.Company Profile 1.Company Profile:(1)Legal Name of the Company in Chinese and English In Chinese:方大集团股份有限公司（abbreviation：方大集团）In Englis
9、h:CHINA FANGDA GROUP CO.,LTD.（abbreviation：FANGDA）(2)Abbreviations and Codes of the Stock and the Stock Exchange Listed A Stock:G Fangda A 000055 Shenzhen Stock Exchange B Stock:Fangda B 200055 Shenzhen Stock Exchange(3)Registered Address of the Company:Fangda Building,Kejinan 12th Avenue,High-tech
10、Zone,Shenzhen,PR China.Post code:518057 Head office:Technology Building,Fangda Town,Xili Longjing,Nanshan District,Shenzhen,PRC Post code:518055 Email:Website:http:/(4)Legal Representative:Mr.Xiong Jianming(5)Secretary of the Board:Mr.Zhou Zhigang Securities affair liaison:Ms.Wang Shuiying Address:F
11、angda Town,Xili Longjing,Nanshan District,Shenzhen,PRC Post code:518055 Tel:86(755)26788571 ext.6622 Fax:86(755)26788353 Email:(6)Official Medias of Information Disclosure China Securities Journal,Security Times,Hong Kong Commercial Daily Website assigned by China Securities Regulatory Commission fo
12、r the disclosing of Annual Report:http:/Website of the Company where the Semi-Annual Report is available:http:/This Semi-annual Report is available at:the Secretary Office of the Board of the Company.5 2.Financial Highlights(in RMB yuan)（1）Major accounting indicies Ended this report term(2006-6-30)E
13、nded previous year(2005-12-31)Increase/decrease(%)Current Assets 699,340,889.08 675,139,257.58 3.58%Current Liabilities 780,554,918.03 776,461,328.18 0.53%Gross Assets 1,213,217,916.99 1,201,275,986.46 0.99%Shareholders Equity(Exclude Minority Shareholders Equity)425,242,564.51 417,069,075.26 1.96%N
14、et asset per share 1.21 1.41-14.18%Net asset per share,adjusted 1.01 1.16-12.93%The report term Jan Jun 2006 Same period last year Jan-Jun 2005 Increase/decrease(%)Net profit 8,112,618.53 1,915,966.67 323.42%Net profit deducted non-recurring gain/loss 215,251.02-3,089,813.70Earnings per share 0.02 0
15、.01 100.00%Net earnings/asset 1.91%0.40%377.50%Cash flow generated by business operation,net 40,747,240.56-16,819,073.09Note:The non-recurring gain/loass were amounted to RMB7,897,367.51.Namely,RMB6,825,200.00 of government allowance;RMB1,141,535.57 of non-business income,RMB1,027,694.95 of inventor
16、y devalue provision,RMB1,083,836.83 of non-business expenditure,RMB13,226.18 of minorirty shareholders equity of non-recurring gain/loss.（2）Impact on the net profit and net asset due to adjustment under IAS(In RMB 000)Consolidated net profit Consolidated net asset Jan-Jun 2006 Jan-Jun 2005 2006-6-30
17、 2005-12-31 Amount carried by legal financial statement of the Group 8,112.62 1,916 425,242.56 417,069Impact due to adjustment under IAS Impact due to adjustment under IAS-Fixed asset depreciation adjusted-942.33-40Property,plant and equipment depreciation-1,049.33-107-Litigation provition Litigatio
18、n provition-6,204-6,204-Writing back of goodwill 107.5 Writing back of goodwill 322.5 215-Amortizing of negative goodwill.2,405 370Amortizing of negative goodwill.9,804 7,399-Property revaluation increment-Property revaluation increment 59,818 59,818-Gains from property fair value-Gains from propert
19、y fair value 94,233 94,233-Revaluation of investment on preserved equipment 4,283 4,283Capitalizing of engineerings 4,547 4,547Amount under IAS 9,682.79 2,246 590,996.73 581,253 6(3)Net income/asset ratio and earnings per share Jan-Jun 2006 Jan-Jun 2005 Net earnings/asset Earnings per share Net earn
20、ings/asset Earnings per share Profit items on full amortizing basis weighted average on full amortizing basis weighted averageon full amortizing basis weighted average on full amortizing basis weighted average%RMB RMB%RMB RMB Major business profit 9.28 9.37 0.1119 0.1244 7.31 7.33 0.12 0.12 Operatio
21、n profit 0.24 0.24 0.0029 0.0043-0.69-0.69-0.01-0.01 Net profit 1.91 1.93 0.0230 0.0247 0.40 0.40 0.01 0.01 Net profit deducted non-recurring gain/loss 0.05 0.05 0.0006 0.0023-0.65-0.65-0.01-0.01 7 II.Movement of Capital Share and Major Shareholders 1、Change of shareholding status Before the change
22、Changed Currently(+,-)After the change Amount Proportion Issuing of new shares Bonus shares Transferred from reserves Others Sub-total Amount Proportion I.Shares with conditional subscription 1.State-owned shares 2.State-owned legal person shares 3.Other domestic shares Including:Domestic legal pers
23、on shares Domestic natural person shares 4.Share held by foreign investors Including:Foreign legal person shares Foreign natural person shares II.unconditional subscription shares 1.Common shares in RMB 2.Foreign shares in domestic market 3.Foreign shares in overseas market 4.Others 109,078,800 109,
24、078,800 109,032,000 46,800 187,321,200 41,953,200 145,368,000 36.80%36.80%36.79%0.02%63.20%14.15%49.04%23,083 23,083 23,083 20,692,99720,692,9978,892 8,892 8,892 35,591,0287,971,108 27,619,920 31,975 31,975 31,975 56,284,025 28,664,105 27,619,920 109,110,775 109,110,775 109,032,00078,775 243,605,225
25、70,617,305 172,987,920 30.93%30.93%30.91%0.02%69.07%20.02%49.04%III.Total of capital shares 296,400,000 100%20,716,08035,599,920 56,316,000 352,716,000 100%8 2.Shareholders and their shares(Ended June 30th 2006,in shares)Total of shareholders 36483 shareholders at the end of report term.(including 1
26、9844 A-share holders,and 16639 B-share holders)Top 10 Shareholders Name of the shareholder Properties of shareholder Share proportion%Total shares Conditional shares Pledged or frozenBanglin Legal person shares 17.011%60,000,000 60,000,000 60,000,000 Shenzhen Shilihe Investment Co.,Ltd.Legal person
27、shares 13.357%47,112,000 47,112,000 47,112,000 Onforce International Ltd.Foreign shares 5.735%20,230,000 0 0 Chen Jinbiao Foreign shares 0.70%2,456,195 0 N/A Weng Yingwen Foreign shares 0.67%2,346,302 0 N/A Sun Enju A-share holder 0.61%2,134,016 0 N/A Wang Chanjuan Foreign shares 0.60%2,128,315 0 N/
28、A Shenzhen Shekou Yuer Industrial Co.,Ltd.Legal person shares 0.54%1,920,000 1,920,000 0 HSBC JAMES CAPEL ASIA LIMITED Foreign shares 0.35%1,218,927 0 N/A Li Hanbo Foreign shares 0.31%1,082,543 0 N/A Top 10 holders of unconditional shares Name of the shareholder Unconditional shares Category of shar
29、es Onforce International Ltd.20,230,000 B shares Chen Jinbiao 2,456,195 B shares Weng Yingwen 2,346,302 B shares Sun Enju 2,134,016 A shares Wang Chanjuan 2,128,315 B shares HSBC JAMES CAPEL ASIA LIMITED 1,218,927 B shares Li Hanbo 1,082,543 B shares Chen Chanhong 1,000,000 B shares GUOTAI JUNAN SEC
30、URIES HONG KONG LIMITED 990,253 B shares Zhou Fuyang 914,000 B shares Notes to relationship or“action in concert”among the top ten shareholders.Among the top 10 shareholders,Banglin and Onforce are under the same controlling shareholder,therefore they are regarded as related and act-in-concert parti
31、es.As for the other holders of current shares,the Company has not been informed any situation of related parties or concerted operators.9 Top 10 holders of shares with limiting conditions In Shares No.Name of the holder Shares with conditioned subscription Date of trading allowed Newly added tradabl
32、e shares Conditions April 10 2007 17,635,800 April 10 2008 17,635,800 1 Banglin 60,000,000 April 10 2009 24,728,400 April 10 2007 17,635,800 April 10 2008 17,635,800 2 Shenzhen Shilihe Investment Co.,Ltd.47,112,000 April 10 2009 11,840,400 Cant be traded in 12 months since the launching of non-negot
33、iable shares reconstruction plan;upon expiring of the above term,when the former non-negotiable share holders holding above 5%of the shares is trading its shares in the market,the number of traded shares shall not exceed 5%in 12 months,and shall not exceed 10%in 24 months.3 Shenzhen Shekou Yuer Indu
34、strial Co.,Ltd.1,920,000 April 10 2007 1,920,000 Cant be traded in 12 months since the launching of non-negotiable shares reconstruction plan 3.There is no movement occurred to the controlling shareholders of the Company 10 III.Particulars about the Directors,Supervisors and Senior Executives 1.Chan
35、ges in Shares Held by Directors,Supervisors and Senior Executives Name Position Shares held at the beginning of term Shares held at the end of termChanged in the report term Cause of change Xiong Jianming Chairman,President 31,500 53,022 21,522 Zhu Weiping Director,Vice president 4,200 7,069 2,869 W
36、ang Shengguo Director,Vice president 11,100 18,684 7,584 share equity dividing reformXiong Jianwei Director 0 0 Zheng Xueding Independent Director 0 0 Shao Hanqing Independent Director 0 0 Wen Simei Independent Director 0 0 Li Bangyan Hoster of the Supervisory Committee 0 0 Song Wenqing Supervisor 0
37、 0 Zheng Hua Supervisor 0 0 Yang Xiaozhuan Vice President 0 0 Zhou Zhigang Secretary of the Board 0 0 2.No change occurred to the directors,supervisors and senior executives in the current term.3.The Shareholders General Meeting 2005 was held during the report term.11 IV.Business Analysis 1.Financia
38、l Position:In RMB Items Jan-Jun 2006 Jan-Jun 2005 Movement%（%）Major business income 312,450,797.38 267,163,024.57 16.95%Major business profit 39,452,004.72 34,845,626.90 13.22%Administrative expense 34,337,659.26 26,433,454.43 29.90%Net profit 8,112,618.53 1,915,966.67 323.42%Net increasing of cash
39、and cash equivalents 6,389,466.9-114,978,682.45-June 30th 2006 December 31st 2005 Movement%（%）Gross Assets 1,213,217,916.99 1,201,275,986.46 0.99%Shareholders equity 425,242,564.51 417,069,075.26 1.96%Major causes of the above movements:(1)Major business income has increased by 16.95%,which was caus
40、ed by the significant increasing of sales income from screen door contracts and growth of LED products.Major business profit increased by 13.22%over the same period of last year,which was caused by increasing of sales income.The net profit has increased by 323.42%over the same period of last year,wh
41、ich was caused by increasing of sales income in the report term.On the other hand,the Company enforced collecting of receivables,retrieved RMB9 million of receivables and interests,which caused increasing of net profit.(2)Management expenses has increased by 29.9%over the same period of last year,wh
42、ich was caused by fees to lawyers of RMB3 million and providing of bad debt provisions of RMB4.5 million.(3)Great increasing in cash and cash equivalents was caused by enforcing of collecting receivables.Some RMB80 million of receivables due over 1 year have been collected.Integrated retrieving rati
43、o has reached up to 105%.2.Business Status The Company is mainly engaged in development,design,manufacture,construction,sale and after service of new construction materials,compound materials,metal products,environmental protection facilities and equipments,safety and guard equipments,metallurgy equ
44、ipments,optical,mechanical and electronic integration products,macromolecule materials and products,precision chemical products,mechanical equipments,photoelectric materials and equipments,photoelectric equipments,electronic display equipments,audiovisual and transportation installations,shield gate
45、s for metro systems,heating and aeration equipment,water supply and drainage equipment,central air-conditioning equipment,semi-conductor and appliance,ICs,lighting products and equipments,and solar energy products.The major business revenue of the Company and net profit are primarily coming from hig
46、h-tech construction materials.Products that bring the company by over 10%of its gross profit or major business revenue are:outer-wall materials,compound aluminium plate and single layer profiled aluminium plates,profiled aluminium products and coloured profiled plates.Through industrial adjustment i
47、n the latest few years,the Companys 3 major businesses-the new-type construction material business,the electronic mechanical equipment business,and semi-conductor lighting business,have been in well development trend and great increasing in sales income.The major business structure and profitability
48、 have changed dramatically.The distributions of major business revenue and profit on industries,products,and geographical areas are as the followings:(in RMB)12 Distribution on industries On industry or product Major business income Major business cost Gross profit ratio%Increase/decrease of major b
49、usiness turnover(%)Increase/decrease of major business cost(%)Increase/decrease of gross profit ratio(%)Other metallurgy products 285,573,422.39 257,396,040.51 9.87%118.71%114.09%172.29%Decoration business 141,778,297.45 125,248,637.5 11.66%-21.50%-16.47%-46.12%Sub-total 427,351,719.84 382,644,678.0
50、1 11.66%37.33%41.63%8.97%Incl.Internal trade 114,900,922.46 114,547,390.87 0.31%-Total 312,450,797.38 268,097,287.14 14.20%16.95%18.25%9.65%Distribution on products Glass wall products 141,778,297.45 125,248,637.50 11.66%-21.50%-16.47%-46.12%Complex aluminium boards and single profiled plates 50,668
