方大B:2019年第三季度报告全文(英文版)

巨潮资讯网 2019/10/26

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)









China Fangda Group Co., Ltd.



2019 Third Quarter Report (Full)









October 2019









1

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)









I Important Statement





The members of the Board and the Company guarantee that the quarterly



report is free from any false information, misleading statement or material



omission and are jointly and severally liable for the information’s truthfulness,



accuracy and integrity.



All the Directors have attended the meeting of the board meeting at which



this report was examined.



Mr. Xiong Jianming, the Chairman of Board, Mr. Lin Kebin, the Chief



Financial Officer, and Mr. Wu Bohua, the manager of accounting department



declare: the Financial Report carried in this report is authentic and completed.









2

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)









II. General Information



1. Financial Highlight



Whether the Company needs to make retroactive adjustment or restatement of financial data of previous years

□ Yes √ No



End of the report period End of last year Year-on-year change



Total asset (RMB) 10,888,421,106.10 10,658,854,133.73 2.15%



Net profit attributable to the

shareholders of the listed company 5,051,483,434.60 5,195,187,621.88 -2.77%

(RMB)



Between beginning of

Year-on-year change Change from the same

This report period the year to the end of

(%) period last year

the report period



Turnover (yuan) 699,243,342.82 -11.85% 2,125,134,289.81 -4.93%



Net profit attributable to

shareholders of the listed company 27,468,258.38 -69.93% 156,050,013.39 -51.46%

(yuan)



Net profit attributable to the

shareholders of the listed company

15,661,279.22 -81.76% 129,038,343.28 -56.34%

and after deducting of

non-recurring gain/loss (RMB)



Net cash flow generated by

-- -- -408,455,390.94 -462.71%

business operation (RMB)



Basic earnings per share

0.02 -75.00% 0.14 -50.00%

(yuan/share)



Diluted Earnings per share

0.02 -75.00% 0.14 -50.00%

(yuan/share)



Weighted average net income/asset

0.55% -2.22% 3.11% -6.66%

ratio



Notes:

1. The above-mentioned decrease in “net profit attributable to shareholders of the listed company” was mainly due to the fact

that the Shenzhen Fangda Town project which had a higher gross profit during the reporting period and contributed more to the

profit in the previous year, was nearing the end of the planned sales area resulting in a decrease in operating income and profit. In

addition, the operating income, net profit and gross profit margin of the curtain wall systems and materials industries and rail

transit screen door equipment businesses have increased, as follows:

1. The real estate industry realized operating income of RMB 236,817,200 in the first three quarters of 2019,

a decrease of 62.79% over the same period of the previous year; net profit of RMB 59,435,400 was reduced by

RMB169,668,700 compared with the same period of the previous year with a decrease of 74.06%;



3

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





2. In the first three quarters of 2019, the curtain wall system and materials industry realized operating

income of RMB1,537,801,300, an increase of 13.66% over the same period of the previous year; the net profit

was RMB57,849,500, an increase of 4.48%; with a gross margin of 14.49%, up0.89 percentages over the same period

of last year;

3. In the first three quarters of 2019, the rail transit equipment industry realized operating income of

RMB319,264,800, an increase of 51.99% over the same period of the previous year; the net profit was RMB52,927,400,

an increase of 61.45%; with a gross margin of 28.03%, up 0.89 percentages over the same period of the previous

year.





2. The decrease in the above-mentioned “net cash flow from operating activities” was mainly due to the decrease in the revenue

of the Shenzhen Fangda town project due to the decrease in operating income during the reporting period, the annual corporate

income tax settlement and payment of taxes, and the development investment of new projects. In addition, the cash flow of the

curtain wall system and materials industry declined from the same period last year.

The cash flow of the rail transit equipment industry increased from the same period last year. The changes

in the cash flow of the curtain wall system and material business and rail transit equipment business are within the reasonable

range of fluctuations.

The details are disclosed as follows:

1. The net cash flow generated by the real estate industry in the first three quarters of 2019 was RMB-220,978,800, compared with

RMB239,685,600 in the same period of the previous year, a decrease of RMB460,664,300 over the same period of the previous year;

2. The net cash flow generated by the operating activities of the curtain wall system and materials industry in the first three

quarters of 2019 was RMB -188,369,400, compared with RMB-86,261,000 in the same period of last year, a decrease of

RMB102,108,500 from the same period of the previous year;

3. The net cash flow generated by the operating activities of the rail transit screen door equipment industry in the first three

quarters of 2019 was RMB-5,498,400, compared with RMB-36,846,700 in the same period of last year, which was improved

compared with the same period of the previous year.





Accidental gain/loss item and amount

√ Applicable □ Inapplicable

In RMB



Amount from beginning of

Item the year to the end of the Notes

report period



Non-current asset disposal gain/loss (including the write-off part

-35,159.35

for which assets impairment provision is made)



Subsidies accounted into the current income account (except the

government subsidy closely related to the enterprise’s business 4,712,514.15

and based on unified national standard quota)



Capital using expense charged to non-financial enterprises and

585,760.51

accounted into the current income account



Gain from entrusted investment or assets management 5,533,960.61



Gain/loss from change of fair value of transactional financial

1,494,278.09

asset and liabilities, and investment gains from disposal of





4

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





transactional and derivative financial assets and liabilities and

sellable financial assets, other than valid period value instruments

related to the Company’s common businesses



Gain/loss from commissioned loans 301,965.98



Other non-business income and expenditures other than the above 4,603,867.26



Less: Influenced amount of income tax -9,786,470.36



Influenced amount of minority shareholders’ equity

-28,012.50

(after-tax)



Total 27,011,670.11 --



Explanation statement should be made for accidental gain/loss items defined and accidental gain/loss items defined as regular

gain/loss items according to the Explanation Announcement of Information Disclosure No. 1 - Non-recurring gain/loss mentioned.

□ Applicable √ Inapplicable

No circumstance that should be defined as recurrent profit and loss according to Explanation Announcement of Information

Disclosure No. 1 - Non-recurring gain/loss occurs in the report period.









2. Total number of shareholders and shareholding of top 10 shareholders by the end of the

report period



1. Ordinary shareholders, preference shareholders with resumed voting rights and top 10 shareholders



In share



Number of shareholders of

Number of shareholders of common preferred stocks of which

70,369 0

shares at the end of the report period voting rights recovered in the

report period (if any)



Top 10 Shareholders



Nature of Shareholding Shareholding Conditional Pledging or freezing

Shareholder name

shareholder percentage number shares Share status Quantity



Shenzhen

Banglin Domestic

Technologies non-state legal 10.08% 113,202,154 Pledged 32,860,000

Development person

Co., Ltd.



Shengjiu Foreign legal

8.52% 95,688,766

Investment Ltd. person



Domestic natural

Fang Wei 3.03% 34,071,739

person



Gong Qing Domestic

2.38% 26,791,488

Cheng Shi Li He non-state legal





5

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Investment person

Management

Partnership

Enterprise

(limited partner)



Shenwan

Hongyuan Foreign legal

1.22% 13,705,232

Securities (Hong person

Kong) Co., Ltd.



VANGUARD

EMERGING

Foreign legal

MARKETS 0.71% 7,946,483

person

STOCK INDEX

FUND



VANGUARD

TOTAL

Foreign legal

INTERNATION 0.52% 5,872,007

person

AL STOCK

INDEX FUND



Domestic natural

Qu Chunlin 0.38% 4,236,961

person



First Shanghai

Foreign legal

Securities 0.36% 4,001,704

person

Limited



Essence

International Foreign legal

0.33% 3,757,707

Securities (Hong person

Kong) Co., Ltd.



Top 10 holders of unconditional shares



Category of shares

Shareholder name Amount of shares without sales restriction Category of

Quantity

shares



Shenzhen Banglin Technologies RMB common

113,202,154 113,202,154

Development Co., Ltd. shares



Foreign shares

Shengjiu Investment Ltd. 95,688,766 listed in domestic 95,688,766

exchanges



RMB common

Fang Wei 34,071,739 34,071,739

shares



Gong Qing Cheng Shi Li He 26,791,488 RMB common 26,791,488







6

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Investment Management Partnership shares

Enterprise (limited partner)



Foreign shares

Shenwan Hongyuan Securities

13,705,232 listed in domestic 13,705,232

(Hong Kong) Co., Ltd.

exchanges



Foreign shares

VANGUARD EMERGING

7,946,483 listed in domestic 7,946,483

MARKETS STOCK INDEX FUND

exchanges



VANGUARD TOTAL Foreign shares

INTERNATIONAL STOCK INDEX 5,872,007 listed in domestic 5,872,007

FUND exchanges



RMB common

Qu Chunlin 4,236,961 4,236,961

shares



Foreign shares

First Shanghai Securities Limited 4,001,704 listed in domestic 4,001,704

exchanges



Foreign shares

Essence International Securities

3,757,707 listed in domestic 3,757,707

(Hong Kong) Co., Ltd.

exchanges



Among the shareholders, Shenzhen Banglin Technology Development Co., Ltd. and Shengjiu

Investment Co., Ltd. are parties action-in-concert. Shenzhen Banglin Technology

Notes to top ten shareholder

Development Co., Ltd. and Gong Qing Cheng Shi Li He Investment Management Partnership

relationship or "action in concert"

Enterprise are related parties. The Company is not notified of other action-in-concert or

related parties among the other holders of current shares.



Top-10 common share shareholders

None

participating in margin trade (if any)



Agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional common

shares in the report period

□ Yes √ No

No agreed re-purchasing by the Company’s top 10 shareholders of common shares and top 10 shareholders of unconditional

common shares in the report period





2. Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of

the report period



□ Applicable √ Inapplicable









7

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)









III Significant Events



1. Major changes in accounting items and financial data in the report period and reasons



√ Applicable □ Inapplicable

In RMB

Balance on September Balance on December YOY change

Item Cause of change

30, 2019 31, 2018 (% )

Due to payment of mature

Notes receivable 90,091,337.35 140,139,692.84 -35.71%

notes

Mainly due to the increase

Other current assets 119,263,124.05 51,698,111.14 130.69% in the input tax to be

verified and to be deducted

mainly due to the increase

in investment in

Construction in process 95,403,024.12 58,269,452.72 63.73%

construction of the

Shanghai East China Base.

Mainly due to increase in

Short-term loans 724,000,000.00 208,000,000.00 248.08%

bank borrowings

Due to the transfer for

Prepayment received 138,808,823.95 278,577,848.54 -50.17% sales to settlement in the

period

Employees' wage payable 24,458,669.74 44,513,062.17 -45.05% Annual bonus paid

Mainly due to the annual

Taxes payable 20,872,749.79 107,709,999.19 -80.62% final settlement of the

corporate income tax

Non-current liabilities due Reclassified long-term

850,000,000.00 200,000,000.00 325.00%

in 1 year loans due within 1 year

Mainly due to the repayment

and reclassification of

Long-term loans 599,198,144.39 1,193,978,153.39 -49.81%

non-current liabilities

due in 1 year

Mainly due to the

Surplus reserves 54,042,195.07 120,475,221.40 -55.14% repurchase of B shares in

the current period

Total amount in this YOY change

Item Last period Cause of change

year (% )

Mainly due to the decrease

in real estate income which

Taxes and surcharges 47,749,346.11 139,027,527.35 -65.65%

is due to the decrease in

provision of the land VAT.







8

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Due to increased investment

R&D cost 35,163,348.44 11,567,916.09 203.97%

in research and development

Due to the increase in

borrowings during the

period and the suspension

Financial expenses 75,982,086.31 51,121,831.76 48.63%

of capitalization of

interest expenses of Fangda

Town project

Due to the decrease in the

Investment income 6,163,431.10 57,877,044.56 -89.35% current wealth management

investment

Changes in the fair value of

Gain caused by changes in

- -34,326,342.25 100.00% the fund investment in the

fair value

previous period

Mainly due to the decrease

Income tax expenses 14,924,568.34 84,216,677.45 -82.28% in profits which is due to

the decrease in income tax

Mainly due to recognition

of income from the Shenzhen

Net profit 156,050,013.39 321,470,008.08 -51.46%

Fangda Town project and

decrease in the net profit

Mainly due to the decrease

Cash flow generated by

-408,455,390.94 112,612,558.74 -462.71% in cash flow from real

business operations, net

estate business activities

Mainly due to the increase

in net investment

expenditure during the

period, the increase in

Cash flow generated by

-398,879,702.81 91,103,672.34 -537.83% construction investment in

investment activities, net

construction projects and

investment real estate, and

the increase in investment

expenses of subsidiaries.

Mainly due to net increase

Net cash flow generated by

232,130,880.90 -431,042,206.35 153.85% in current period bank

financing activities

borrowings









2. Progress of key issues and its impacts and solutions



□ Applicable √ Inapplicable

Progress in the implementation of share repurchase

□ Applicable √ Inapplicable

Progress in the implementation of the reduction of shareholding shares by means of centralized bidding





9

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





□ Applicable √ Inapplicable





3. Commitments that have not been fulfilled by actual controller, shareholders, related parties,

acquirers of the Company



□ Applicable √ Inapplicable

There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company





4. Forecast of operating performance in 2019



Warning and reasons of possible net loss or substantial change from the last period between the beginning of the year and the end of

the next report period

√ Applicable □ Inapplicable

Forecast: substantial decrease from the same period last year

Data type: within a period of time



Between beginning of the Same period last Change

year to the end of the next year

report period



Net profit forecast (in 20,000 to 30,000 224,616.46 Decrease 91.10% t 86.64%

RMB10,000) o



Basic earnings per share 0.18 to 0.27 1.91 Decrease 90.58% t 85.86%

(yuan/share) o



Result forecast note The main reason for the expected decline in 2019 results:

1. The sales of Shenzhen Fangda Town project is nearly completed, resulting in a decrease in

operating income and net profit;

2. In 2018, as the 1# building of Shenzhen Fangda Town Project wasrecognized as an

investment real estat, at the end of the period, the non recurring income of fair value change

generated by the end of the period's evaluation and appreciation increased the net profit

increased by approximately RMB 2.2 billion. In 2019, there was no such income from the

above business.





5. Securities investment



√ Applicable □ Inapplicable

In RMB



Accumu

Gain/los

lative

s caused Amount Amount

Initial Account Opening changes Closing

Securiti Abbrevi by purchas sold in Gain/los Account Capital

Code investm ing book in fair book

es ation changes ed in the the s ing item source

ent cost method value value value

in fair period period

accounti

value

ng into







10

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





the

income

account



Measure Transact

Jinxin

200,000 ment at 200,000 200,000 761,235 ional Self-ow

Fund 004400 Minxing 0.00 0.00

,000.00 fair ,000.00 ,000.00 .04 financia ned fund

Bond A

value l assets



Dongfan

g Huixin

Flexible

Configu

ration Measure Transact

Compou 200,000 ment at 200,000 200,000 783,043 ional Self-ow

Fund 002163 0.00 0.00

nd ,000.00 fair ,000.00 ,000.00 .06 financia ned fund

Securitie value l assets

s

Investm

ent Fund

Class C



400,000 400,000 400,000 1,544,2

Total -- 0.00 0.00 0.00 0.00 -- --

,000.00 ,000.00 ,000.00 78.10



Disclosure date of approval

by the Board of Directors September 10, 2018

of securities investment



Disclosure date of

securities investment

approval by the None

Shareholders’ Meeting (if

any)





6. Entrusted wealth management



√ Applicable □ Inapplicable

In RMB10,000



Due balance to be

Type Source of fund Amount Undue balance

recovered



Bank financial products Self-owned fund 54,828 499.09 0



Total 54,828 499.09 0



Specific circumstances of high-risk entrusted financing with large individual amount or low security, poor liquidity, and no cost

protection

□ Applicable √ Inapplicable







11

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Entrusted financial management expected to fail to recover the principal or likely result in impairment

□ Applicable √ Inapplicable





7. Derivative investment



√ Applicable □ Inapplicable

In RMB10,000



Proporti

on of

closing

investm

Derivati Impairm ent Actual

Initial Amount Closing

ve Related Amount ent amount gain/los

Relation Initial Start End investm sold in investm

investm transacti Type in this provisio in the s in the

ship amount date date ent this ent

ent on period n (if closing report

amount period amount

operator any) net period

assets in

the

report

period



Shangha

Shangha

i January

i 2,535.7 July 13, 2,535.7 13,096. 12,059. 3,573.2

Futures No No 31, 0.71% 104.64

aluminu 6 2018 6 92 39 9

Exchan 2020

m

ge



2,535.7 2,535.7 13,096. 12,059. 3,573.2

Total -- -- 0.71% 104.64

6 6 92 39 9



Capital source Self-owned fund



Lawsuit (if any) None



Disclosure date of derivative

investment approval by the Board of October 31, 2017

Directors (if any)



Disclosure date of derivative

investment approval by the None

Shareholders’ Meeting (if any)



Risk analysis and control measures

To prevent the risk of fluctuation of raw material prices, the Company adopted the aluminum

for the derivative holding in the

futures exchanged at the domestic futures exchange to provide hedging for aluminum as a

report period (including without

raw material for the Company. The Company has set up and implemented the Provincial

limitation market, liquidity, credit,

Regulations on China Fangda Group Domestic Futures Hedging to prevent risks.

operation and legal risks)



Changes in the market price or fair Fair value of derivatives are measured at open prices in the futures market







12

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





value of the derivative in the report

period, the analysis of the derivative’

s fair value should disclose the

method used and related assumptions

and parameters.



Material changes in the accounting

policies and rules related to the

None

derivative in the report period

compared to last period



Opinions of independent directors on

the Company’s derivative None

investment and risk controlling





8. Reception of investigations, communications, or interviews in the reporting period



√ Applicable □ Inapplicable



Time/date Way Visitor Disclosure of information



Investor Relationship Record Form on

August 28, 2019 Onsite investigation Institution

www.cninfo.com.cn





9. Incompliant external guarantee



□ Applicable √ Inapplicable

The Company made no incompliant external guarantee in the report period.





10. Non-operating capital use by the controlling shareholder or related parties in the

reporting term



□ Applicable √ Inapplicable

The controlling shareholder and its affiliates occupied no capital for non-operating purpose of the Company during the report period.





11. Performance of poverty relieving responsibilities



(I) As of the disclosure date of this report, the Company has donated RMB824,000 for the precision poverty

alleviation project in 2019, as follows:

(1) Donated RMB100,000 to the Ganzhou Charity Federation of Jiangxi Province to fund the Ruijin City Charity Association to

purchase defibrillators at the Red Spot;

(2) donated RMB20,000 to two poverty-stricken villages in Luxi County, Pingxiang City, Jiangxi Province for the construction of

public facilities;

(3) Donated RMB2,000 to the Social Assistance Center of Luxiang Town, Jinshan District, Shanghai for charity assistance activities.

(4) In order to help the Lianhua County of Pingxiang City, Jiangxi Province to achieve poverty alleviation, the Company donated

500,000 yuan to Pingxiang City Charity Association of Jiangxi Province for the development of lily industry in Shanbei Village,

Liushi Township, Lianhua County, and Tianyu Village, Fanglou Town, Lianhua County.



13

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





(5) The Company donated RMB102,500 to the Jiangxi Kaixuan Foundation to help the poor students in Suichuan county, Ji'an city

and Jiangxi province.

(6) The Company donated RMB53,000 to the elder caring activity of the Shenzhen Longgang Dakang community.

(7) The Company donated RMB30,000 to the teenagers activity of the Shenzhen Longgang Dakang community.

(8) The Company donated RMB15,000 to the poor students at Zhenglong village, Shahe county, Zhanggong district, Ganzhou city,

Jiangxi province.

(9) The Company donated RMB1,500 to the CPC Shenzhen Property Management Industry Committee to purchase measure

equipment for the health center in the Liangshan Yi Autonomous Prefecture, Sichuan province.

(II) The Company will continue to fulfill its social responsibility for precision poverty alleviation, and make

donations from time to time based on business development.









12. Others



Real estate:

(1) Shenzhen Fangda Town Project: In the first three quarters of 2019, the Fangda Town project achieved a sales area of

2,966.37 square meters and an accumulated sales area of 85,376.87 square meters.

(2) Nanchang Fangda Center Project (Fangda Center Project: The project is located in Fenghuangzhou Area, Honggutan New

District, Nanchang City. Construction started in May 2018. The project covers an area of about 17,000 square meters and has a total

construction area of about 93,000 square meters. With a total construction area of 66,000 square meters, Jirong is a commercial

complex covering commercial, apartment and office buildings. The project plans to start pre-sale in the early 2020 and to complete at

the end of 2020. At present, the project construction is progressing in accordance with the expected engineering

nodes.

(3) Shenzhen Fangda Bangshen Industrial Park Project: The project is located in Fuhai sub-district, Bao'an District, Shenzhen. It

covers an area of 20,714.9 square meters and is currently an industrial plant. As of the end of the third quarter of 2019, the project has

been approved and established. The special planning phase has been applied for.

(4) Urban renewal project along the Dagang River in Henggang, Shenzhen: The project is located in Dakang Village, Yuanshan

Street, Longgang District, Shenzhen. The area of the project to be demolished is about 80,000 square meters. The update direction is

mainly residential function, and finally subject to government approval. The project work is currently being actively

promoted.









14

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)









IV Financial Statements



1. Financial statements



1. Consolidated Balance Sheet



Prepared by: China Fangda Group Co., Ltd.

September 30, 2019

In RMB



Item September 30, 2019 December 31, 2018



Current asset:



Monetary capital 1,103,139,175.15 1,389,062,083.76



Settlement provision



Outgoing call loan



Transactional financial assets 9,990,899.17



Financial assets measured at fair

value with variations accounted into

current income account



Derivative financial assets 166,875.00



Notes receivable 90,091,337.35 140,139,692.84



Account receivable 2,136,208,395.20 1,920,075,031.85



Receivable financing



Prepayment 46,395,302.30 46,454,844.74



Insurance receivable



Reinsurance receivable



Provisions of Reinsurance

contracts receivable



Other receivables 149,672,873.43 139,990,188.26



Including: interest receivable



Dividend receivable



Repurchasing of financial assets



Inventory 826,209,926.06 651,405,832.29



Contract assets



Assets held for sales



Non-current assets due in 1 year





15

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Other current assets 119,263,124.05 51,698,111.14



Total current assets 4,481,137,907.71 4,338,825,784.88



Non-current assets:



Loan and advancement provided



Debt investment



Sellable financial assets 21,674,008.23



Other debt investment



Investment held until mature



Long-term receivable



Long-term share equity investment 60,623,286.80 70,105,657.88



Investment in other equity tools 21,674,008.23



Other non-current financial assets



Investment real estate 5,287,170,813.77 5,256,442,406.63



Fixed assets 473,321,353.16 455,274,241.83



Construction in process 95,403,024.12 58,269,452.72



Productive biological assets



Gas & petrol



Use right assets



Intangible assets 79,042,376.96 80,313,240.67



R&D expense



Goodwill



Long-term amortizable expenses 2,848,412.67 2,114,331.46



Deferred income tax assets 363,287,360.68 356,474,925.76



Other non-current assets 23,912,562.00 19,360,083.67



Total of non-current assets 6,407,283,198.39 6,320,028,348.85



Total of assets 10,888,421,106.10 10,658,854,133.73



Current liabilities



Short-term loans 724,000,000.00 208,000,000.00



Loans from Central Bank



Call loan received



Transactional financial liabilities



Financial liabilities measured at

fair value with variations accounted into

current income account



Derivative financial liabilities 1,625,725.00





16

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Notes payable 574,310,069.62 507,864,518.19



Account payable 942,136,009.60 1,039,630,798.64



Prepayment received 138,808,823.95 278,577,848.54



Contract liabilities



Selling of repurchased financial

assets



Deposit received and held for

others



Entrusted trading of securities



Entrusted selling of securities



Employees' wage payable 24,458,669.74 44,513,062.17



Taxes payable 20,872,749.79 107,709,999.19



Other payables 842,141,293.22 813,118,699.84



Including: interest payable 2,411,435.97 2,098,971.44



Dividend payable



Fees and commissions payable



Reinsurance fee payable



Liabilities held for sales



Non-current liabilities due in 1

850,000,000.00 200,000,000.00

year



Other current liabilities 10,048,033.18 9,328,682.25



Total current liabilities 4,126,775,649.10 3,210,369,333.82



Non-current liabilities:



Insurance contract provision



Long-term loans 599,198,144.39 1,193,978,153.39



Bond payable



Including: preferred stock



Perpetual bond



Lease liabilities



Long-term payable



Long-term employees’ wage

payable



Anticipated liabilities 6,012,597.12 6,831,162.99



Deferred earning 10,879,551.33 10,401,161.30



Deferred income tax liabilities 1,043,689,588.60 1,042,086,700.35







17

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Other non-current liabilities



Total of non-current liabilities 1,659,779,881.44 2,253,297,178.03



Total liabilities 5,786,555,530.54 5,463,666,511.85



Owner’s equity:



Share capital 1,123,384,189.00 1,155,481,686.00



Other equity tools



Including: preferred stock



Perpetual bond



Capital reserves 1,454,191.59 1,454,191.59



Less: Shares in stock 10,831,437.66



Other miscellaneous income 3,832,489.79 7,382,087.59



Special reserves



Surplus reserves 54,042,195.07 120,475,221.40



Common risk provisions



Retained profit 3,868,770,369.15 3,921,225,872.96



Total of owner’s equity belong to the

5,051,483,434.60 5,195,187,621.88

parent company



Minor shareholders’ equity 50,382,140.96



Total of owners’ equity 5,101,865,575.56 5,195,187,621.88



Total of liabilities and owner’s interest 10,888,421,106.10 10,658,854,133.73





Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua





2. Balance Sheet of the Parent Company



In RMB



Item September 30, 2019 December 31, 2018



Current asset:



Monetary capital 122,357,849.68 410,118,157.55



Transactional financial assets



Financial assets measured at fair

value with variations accounted into

current income account



Derivative financial assets



Notes receivable 200,000,000.00



Account receivable 471,039.12







18

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Receivable financing



Prepayment 369,977.96 6,733,047.16



Other receivables 2,381,200,854.60 822,543,653.04



Including: interest receivable



Dividend receivable 100,000,000.00



Inventory



Contract assets



Assets held for sales



Non-current assets due in 1 year



Other current assets 789,549.44 919,388.18



Total current assets 2,504,718,231.68 1,440,785,285.05



Non-current assets:



Debt investment



Sellable financial assets 21,674,008.23



Other debt investment



Investment held until mature



Long-term receivable



Long-term share equity investment 1,013,339,495.35 983,339,494.35



Investment in other equity tools 21,674,008.23



Other non-current financial assets



Investment real estate 293,570,141.37 309,189,866.37



Fixed assets 67,948,275.98 53,784,811.23



Construction in process



Productive biological assets



Gas & petrol



Use right assets



Intangible assets 1,878,062.26 2,112,301.97



R&D expense



Goodwill



Long-term amortizable expenses 707,499.62 917,499.68



Deferred income tax assets 41,874,360.60 34,555,598.81



Other non-current assets



Total of non-current assets 1,440,991,843.41 1,405,573,580.64



Total of assets 3,945,710,075.09 2,846,358,865.69







19

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Current liabilities



Short-term loans 300,000,000.00 200,000,000.00



Transactional financial liabilities



Financial liabilities measured at

fair value with variations accounted into

current income account



Derivative financial liabilities



Notes payable



Account payable 606,941.85 676,941.85



Prepayment received 694,791.63 733,274.16



Contract liabilities



Employees' wage payable 1,037,729.43 2,145,763.39



Taxes payable 1,119,390.01 341,004.65



Other payables 545,462,539.20 300,006,406.51



Including: interest payable 1,207,576.41 740,208.33



Dividend payable



Liabilities held for sales



Non-current liabilities due in 1

500,000,000.00

year



Other current liabilities



Total current liabilities 1,348,921,392.12 503,903,390.56



Non-current liabilities:



Long-term loans 90,000,000.00 500,000,000.00



Bond payable



Including: preferred stock



Perpetual bond



Lease liabilities



Long-term payable



Long-term employees’ wage

payable



Anticipated liabilities



Deferred earning



Deferred income tax liabilities 63,979,716.40 64,130,617.41



Other non-current liabilities



Total of non-current liabilities 153,979,716.40 564,130,617.41







20

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Total liabilities 1,502,901,108.52 1,068,034,007.97



Owner’s equity:



Share capital 1,123,384,189.00 1,155,481,686.00



Other equity tools



Including: preferred stock



Perpetual bond



Capital reserves 360,835.52 360,835.52



Less: Shares in stock 10,831,437.66



Other miscellaneous income 3,590,127.88 8,756,553.46



Special reserves



Surplus reserves 54,042,195.07 120,475,221.40



Retained profit 1,261,431,619.10 504,081,999.00



Total of owners’ equity 2,442,808,966.57 1,778,324,857.72



Total of liabilities and owner’s interest 3,945,710,075.09 2,846,358,865.69





3. Consolidated Income Statement of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Total revenue 699,243,342.82 793,250,321.93



Incl. Business income 699,243,342.82 793,250,321.93



Interest income



Insurance fee earned



Fee and commission

received



2. Total business cost 666,684,444.58 674,600,862.14



Incl. Business cost 562,481,963.87 568,150,146.71



Interest expense



Fee and commission paid



Insurance discharge payment



Net claim amount paid



Net insurance policy

responsibility reserves provided



Insurance policy dividend

paid



Reinsurance expenses





21

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Taxes and surcharges 6,268,346.04 37,823,332.32



Sales expense 13,562,766.99 10,702,477.61



Administrative expense 37,409,946.41 37,002,879.24



R&D cost 20,460,675.32 3,572,516.18



Financial expenses 26,500,745.95 17,349,510.08



Including: interest cost 23,424,082.73 25,702,800.18



Interest income 1,208,273.71 3,207,162.41



Add: other gains 2,131,742.20 1,058,639.79



Investment gains “-” for loss) 2,107,033.94 31,632,282.15



Incl. Investment gains from

-156,637.53 -159,703.29

affiliates and joint ventures



Financial assets

derecognised as a result of amortized cost



Exchange gains ("-" for loss)



Net open hedge gains (“-” for

loss)



Gains from change of fair value

-121,506.67 -25,429,705.00

(“-“ for loss)



Credit impairment ("-" for loss) -18,366,483.61



Investment impairment loss

-11,717,054.18

("-" for loss)



Investment gains ("-" for loss) -8,050.57 -1,981,867.64



3. Operational profit ("-" for loss) 18,301,633.53 112,211,754.91



Plus: non-operational income 1,061,813.66 464,154.45



Less: non-operational expenditure 953,272.75 167,066.97



4. Gross profit ("-" for loss) 18,410,174.44 112,508,842.39



Less: Income tax expenses -9,094,691.37 21,170,497.50



5. Net profit ("-" for net loss) 27,504,865.81 91,338,344.89



(1) By operating consistency



1. Net profit from continuous

27,504,865.81 91,338,344.89

operation ("-" for net loss)



2. Net profit from discontinuous

operation ("-" for net loss)



(2) By ownership



1. Net profit attributable to the

27,468,258.38 91,338,344.89

owners of parent company







22

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





2. Minor shareholders’ equity 36,607.43



6. After-tax net amount of other misc.

227,053.45 1,286,962.78

incomes



After-tax net amount of other misc.

227,053.45 1,286,962.78

incomes attributed to parent's owner



(1) Other misc. incomes that cannot

be re-classified into gain and loss



1. Re-measure the change in

the defined benefit plan



2. Other comprehensive

income that cannot be transferred to

profit or loss under the equity method



3. Fair value change of

investment in other equity tools



4. Fair value change of the

company's credit risk



5. Others



(2) Other misc. incomes that will be

227,053.45 1,286,962.78

re-classified into gain and loss



1. Other comprehensive

income that can be transferred to profit or

loss under the equity method



2. Fair value change of other

debt investment



3. Change in the fair value of

financial asset for sale



4. Gains and losses from

changes in fair value of available-for-sale

financial assets



5. Held-to-mature

investment reclassified as gain and loss in

the financial assets for sales



6. Other credit investment

credit impairment provisions



7. Cash flow hedge reserve 127,075.00 1,232,080.00



8. Translation difference of

99,978.45 54,882.78

foreign exchange statement



9. Others









23

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





After-tax net of other misc. income

attributed to minority shareholders



7. Total of misc. incomes 27,731,919.26 92,625,307.67



Total of misc. incomes attributable

27,695,311.83 92,625,307.67

to the owners of the parent company



Total misc gains attributable to the

36,607.43

minor shareholders



8. Earnings per share:



(1) Basic earnings per share 0.02 0.08



(2) Diluted earnings per share 0.02 0.08



Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties

merged during the previous period is RMB0.00.





Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua





4. Consolidated Income Statement of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Turnover 7,375,435.58 7,795,537.50



Less: Operation cost 106,833.17 559,020.48



Taxes and surcharges 323,375.21 324,914.12



Sales expense 0.00



Administrative expense 5,985,937.55 5,790,565.51



R&D cost 0.00



Financial expenses 12,747,466.71 9,138,885.73



Including: interest cost 11,186,191.67 9,896,208.34



Interest income 72,058.89 408,881.16



Add: other gains 73,719.18



Investment gains (“-” for

1,000,481,381.24 11,500,427.84

loss)



Incl. Investment gains from

0.00

affiliates and joint ventures



Financial assets

derecognised as a result of amortized

cost



Net open hedge gains (“-”

for loss)





24

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Gains from change of fair

0.00 -10,171,856.57

value (“-“ for loss)



Credit impairment ("-" for

1,191.25

loss)



Investment impairment loss

0.00 17,615.04

("-" for loss)



Investment gains ("-" for loss) 0.00 -55,328.84



2. Operational profit (“-” for loss) 988,768,114.61 -6,726,990.87



Plus: non-operational income 0.00 2,500.00



Less: non-operational expenditure 607,774.57 5,494.62



3. Gross profit (“-” for loss) 988,160,340.04 -6,729,985.49



Less: Income tax expenses -2,951,715.89



4. Net profit (“-” for net loss) 991,112,055.93 -6,729,985.49



(1) Net profit from continuous

991,112,055.93 -6,729,985.49

operation ("-" for net loss)



(2) Net profit from discontinuous

0.00

operation ("-" for net loss)



5. After-tax net amount of other misc.

incomes



(1) Other misc. incomes that

cannot be re-classified into gain and

loss



1. Re-measure the change

in the defined benefit plan



2. Other comprehensive

income that cannot be transferred to

profit or loss under the equity method



3. Fair value change of

investment in other equity tools



4. Fair value change of the

company's credit risk



5. Others



(2) Other misc. incomes that will

be re-classified into gain and loss



1. Other comprehensive

income that can be transferred to profit

or loss under the equity method



2. Fair value change of





25

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





other debt investment



3. Change in the fair value

of financial asset for sale



4. Gains and losses from

changes in fair value of

available-for-sale financial assets



5. Held-to-mature

investment reclassified as gain and loss

in the financial assets for sales



6. Other credit investment

credit impairment provisions



7. Cash flow hedge reserve



8. Translation difference of

foreign exchange statement



9. Others



6. Total of misc. incomes 991,112,055.93 -6,729,985.49



7. Earnings per share:



(1) Basic earnings per share



(2) Diluted earnings per share





5. Consolidated Income Statement Between the Beginning of the Year and End of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Total revenue 2,125,134,289.81 2,235,301,218.46



Incl. Business income 2,125,134,289.81 2,235,301,218.46



Interest income



Insurance fee earned



Fee and commission

received



2. Total business cost 1,948,269,844.75 1,846,658,281.62



Incl. Business cost 1,628,547,934.43 1,503,636,322.43



Interest expense



Fee and commission paid



Insurance discharge payment



Net claim amount paid



Net insurance policy





26

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





responsibility reserves provided



Insurance policy dividend

paid



Reinsurance expenses



Taxes and surcharges 47,749,346.11 139,027,527.35



Sales expense 40,738,405.49 37,762,618.85



Administrative expense 120,088,723.97 103,542,065.13



R&D cost 35,163,348.44 11,567,916.09



Financial expenses 75,982,086.31 51,121,831.76



Including: interest cost 63,900,969.21 56,940,394.38



Interest income 3,647,364.62 6,869,263.66



Add: other gains 6,133,192.71 3,757,831.37



Investment gains “-” for loss) 6,163,431.10 57,877,044.56



Incl. Investment gains from

-482,371.08 -1,230,704.06

affiliates and joint ventures



Financial assets

derecognised as a result of amortized cost



Exchange gains ("-" for loss)



Net open hedge gains (“-” for

loss)



Gains from change of fair value

-34,326,342.25

(“-“ for loss)



Credit impairment ("-" for loss) -22,736,143.99



Investment impairment loss

-13,572,017.23

("-" for loss)



Investment gains ("-" for loss) -35,159.35 -3,533,733.22



3. Operational profit ("-" for loss) 166,389,765.53 398,845,720.07



Plus: non-operational income 5,935,705.81 7,530,192.86



Less: non-operational expenditure 1,331,838.55 689,227.40



4. Gross profit ("-" for loss) 170,993,632.79 405,686,685.53



Less: Income tax expenses 14,924,568.34 84,216,677.45



5. Net profit ("-" for net loss) 156,069,064.45 321,470,008.08



(1) By operating consistency



1. Net profit from continuous

156,075,582.20 321,470,008.08

operation ("-" for net loss)



2. Net profit from discontinuous -6,517.75





27

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





operation ("-" for net loss)



(2) By ownership



1. Net profit attributable to the

156,050,013.39 321,470,008.08

owners of parent company



2. Minor shareholders’ equity 19,051.06



6. After-tax net amount of other misc.

1,616,827.78 -592,793.39

incomes



After-tax net amount of other misc.

1,616,827.78 -592,793.39

incomes attributed to parent's owner



(1) Other misc. incomes that cannot

be re-classified into gain and loss



1. Re-measure the change in

the defined benefit plan



2. Other comprehensive

income that cannot be transferred to

profit or loss under the equity method



3. Fair value change of

investment in other equity tools



4. Fair value change of the

company's credit risk



5. Others



(2) Other misc. incomes that will be

1,616,827.78 -592,793.39

re-classified into gain and loss



1. Other comprehensive

income that can be transferred to profit or

loss under the equity method



2. Fair value change of other

debt investment



3. Change in the fair value of

financial asset for sale



4. Gains and losses from

changes in fair value of available-for-sale

financial assets



5. Held-to-mature

investment reclassified as gain and loss in

the financial assets for sales



6. Other credit investment

credit impairment provisions



7. Cash flow hedge reserve 1,523,710.00 -606,921.25





28

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





8. Translation difference of

93,117.78 14,127.86

foreign exchange statement



9. Others



After-tax net of other misc. income

attributed to minority shareholders



7. Total of misc. incomes 157,685,892.23 320,877,214.69



Total of misc. incomes attributable

157,666,841.17 320,877,214.69

to the owners of the parent company



Total misc gains attributable to the

19,051.06

minor shareholders



8. Earnings per share:



(1) Basic earnings per share 0.14 0.28



(2) Diluted earnings per share 0.14 0.28



Net profit contributed by entities merged under common control in the report period was RMB0.00, net profit realized by parties

merged during the previous period is RMB0.00.





Legal representative: Xiong Jianming CFO: Lin Kebing Accounting Manager: Wu Bohua





6. Income Statement of the Parent Between the Beginning of the Year and to of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Turnover 24,517,458.46 22,907,827.70



Less: Operation cost 3,603,421.23 1,232,598.73



Taxes and surcharges 969,078.70 975,716.94



Sales expense



Administrative expense 17,272,507.40 15,924,036.36



R&D cost



Financial expenses 34,116,846.72 16,687,577.76



Including: interest cost 28,509,177.79 18,446,237.53



Interest income 423,187.78 1,990,291.21



Add: other gains 307,786.17 114,556.59



Investment gains (“-” for

1,001,636,564.66 19,638,911.06

loss)



Incl. Investment gains from

affiliates and joint ventures



Financial assets

derecognised as a result of amortized



29

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





cost



Net open hedge gains (“-”

for loss)



Gains from change of fair

-13,600,985.30

value (“-“ for loss)



Credit impairment ("-" for

5,923.64

loss)



Investment impairment loss

-81,061.84

("-" for loss)



Investment gains ("-" for loss) -55,902.90



2. Operational profit (“-” for loss) 970,505,878.88 -5,896,584.48



Plus: non-operational income 13,947.68 261,144.66



Less: non-operational expenditure 714,163.21 6,232.62



3. Gross profit (“-” for loss) 969,805,663.35 -5,641,672.44



Less: Income tax expenses -7,497,054.35 1,531,510.40



4. Net profit (“-” for net loss) 977,302,717.70 -7,173,182.84



(1) Net profit from continuous

977,302,717.70 -7,173,182.84

operation ("-" for net loss)



(2) Net profit from discontinuous

operation ("-" for net loss)



5. After-tax net amount of other misc.

incomes



(1) Other misc. incomes that

cannot be re-classified into gain and

loss



1. Re-measure the change

in the defined benefit plan



2. Other comprehensive

income that cannot be transferred to

profit or loss under the equity method



3. Fair value change of

investment in other equity tools



4. Fair value change of the

company's credit risk



5. Others



(2) Other misc. incomes that will

be re-classified into gain and loss



1. Other comprehensive





30

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





income that can be transferred to profit

or loss under the equity method



2. Fair value change of

other debt investment



3. Change in the fair value

of financial asset for sale



4. Gains and losses from

changes in fair value of

available-for-sale financial assets



5. Held-to-mature

investment reclassified as gain and loss

in the financial assets for sales



6. Other credit investment

credit impairment provisions



7. Cash flow hedge reserve



8. Translation difference of

foreign exchange statement



9. Others



6. Total of misc. incomes 977,302,717.70 -7,173,182.84



7. Earnings per share:



(1) Basic earnings per share



(2) Diluted earnings per share





7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Net cash flow from business

operations:



Cash received from sales of

1,891,062,422.83 2,207,987,021.72

products and providing of services



Net increase of customer deposits

and capital kept for brother company



Net increase of loans from central

bank



Net increase of inter-bank loans

from other financial bodies



Cash received against original







31

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





insurance contract



Net cash received from reinsurance

business



Net increase of client deposit and

investment



Cash received as interest,

processing fee, and commission



Net increase of inter-bank fund

received



Net increase of repurchasing

business



Net cash received from trading

securities



Tax refunded 3,159,514.49 4,988,463.29



Other cash received from business

79,255,080.98 292,273,568.66

operation



Sub-total of cash inflow from business

1,973,477,018.30 2,505,249,053.67

operations



Cash paid for purchasing products

1,499,926,065.43 1,429,144,992.91

and services



Net increase of client trade and

advance



Net increase of savings in central

bank and brother company



Cash paid for original contract

claim



Net increase in funds dismantled



Cash paid for interest, processing

fee and commission



Cash paid for policy dividend



Cash paid to and for the staff 237,800,254.07 210,878,995.88



Taxes paid 211,775,200.67 272,518,173.65



Other cash paid for business

432,430,889.07 480,094,332.49

activities



Sub-total of cash outflow from business

2,381,932,409.24 2,392,636,494.93

operations



Cash flow generated by business

-408,455,390.94 112,612,558.74

operations, net





32

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





2. Cash flow generated by investment:



Cash received from investment

4,552,412,407.01 6,215,580,000.00

recovery



Cash received as investment profit 57,732,090.85 64,596,027.07



Net cash retrieved from disposal of

fixed assets, intangible assets, and other 13,225,319.48 16,523,904.33

long-term assets



Net cash received from disposal of

subsidiaries or other operational units



Other investment-related cash

received



Sub-total of cash inflow generated from

4,623,369,817.34 6,296,699,931.40

investment



Cash paid for construction of fixed

assets, intangible assets and other 138,895,689.84 49,609,863.23

long-term assets



Cash paid as investment 4,821,419,000.00 6,155,986,395.83



Net increase of loan against pledge



Net cash paid for acquiring

61,934,830.31

subsidiaries and other operational units



Other cash paid for investment



Subtotal of cash outflows 5,022,249,520.15 6,205,596,259.06



Cash flow generated by investment

-398,879,702.81 91,103,672.34

activities, net



3. Cash flow generated by financing

activities:



Cash received from investment



Incl. Cash received from

investment attracted by subsidiaries

from minority shareholders



Cash received from borrowed

939,219,991.00 708,000,000.00

loans



Other cash received from financing

39,406.61

activities



Subtotal of cash inflow from financing

939,259,397.61 708,000,000.00

activities



Cash paid to repay debts 368,000,000.00 780,577,298.43



Cash paid as dividend, profit, or 299,128,516.71 258,660,130.40





33

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





interests



Incl. Dividend and profit paid by

subsidiaries to minority shareholders



Other cash paid for financing

40,000,000.00 99,804,777.52

activities



Subtotal of cash outflow from financing

707,128,516.71 1,139,042,206.35

activities



Net cash flow generated by financing

232,130,880.90 -431,042,206.35

activities



4. Influence of exchange rate changes

506,834.88 3,084,851.98

on cash and cash equivalents



5. Net increase in cash and cash

-574,697,377.97 -224,241,123.29

equivalents



Plus: Balance of cash and cash

956,190,890.68 931,285,535.55

equivalents at the beginning of term



6. Balance of cash and cash equivalents

381,493,512.71 707,044,412.26

at the end of the period





8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period



In RMB



Item Amount occurred in the current period Occurred in previous period



1. Net cash flow from business

operations:



Cash received from sales of

19,933,171.21 153,999,350.74

products and providing of services



Tax refunded



Other cash received from business

2,110,545,435.02 1,409,325,820.93

operation



Sub-total of cash inflow from business

2,130,478,606.23 1,563,325,171.67

operations



Cash paid for purchasing products

2,295,025.64 1,250,558.30

and services



Cash paid to and for the staff 12,369,917.61 10,320,094.96



Taxes paid 1,788,240.77 19,134,230.81



Other cash paid for business

3,522,929,091.82 1,684,835,834.03

activities



Sub-total of cash outflow from business 3,539,382,275.84 1,715,540,718.10







34

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





operations



Cash flow generated by business

-1,408,903,669.61 -152,215,546.43

operations, net



2. Cash flow generated by investment:



Cash received from investment

1,805,000,000.00 2,273,880,000.00

recovery



Cash received as investment profit 1,101,636,564.66 20,659,911.06



Net cash retrieved from disposal of

fixed assets, intangible assets, and other 5,000.00

long-term assets



Net cash received from disposal of

10,000,000.00

subsidiaries or other operational units



Other investment-related cash

received



Sub-total of cash inflow generated from

2,906,636,564.66 2,304,544,911.06

investment



Cash paid for construction of fixed

assets, intangible assets and other 52,697.00 576,678.00

long-term assets



Cash paid as investment 1,835,000,001.00 2,321,870,000.00



Net cash paid for acquiring

subsidiaries and other operational units



Other cash paid for investment



Subtotal of cash outflows 1,835,052,698.00 2,322,446,678.00



Cash flow generated by investment

1,071,583,866.66 -17,901,766.94

activities, net



3. Cash flow generated by financing

activities:



Cash received from investment



Cash received from borrowed

400,000,000.00 700,000,000.00

loans



Other cash received from financing

39,406.61

activities



Subtotal of cash inflow from financing

400,039,406.61 700,000,000.00

activities



Cash paid to repay debts 10,000,000.00 250,000,000.00



Cash paid as dividend, profit, or

252,206,781.54 199,919,295.82

interests





35

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Other cash paid for financing

99,804,777.52

activities



Subtotal of cash outflow from financing

262,206,781.54 549,724,073.34

activities



Net cash flow generated by financing

137,832,625.07 150,275,926.66

activities



4. Influence of exchange rate changes

405.76 -169,472.11

on cash and cash equivalents



5. Net increase in cash and cash

-199,486,772.12 -20,010,858.82

equivalents



Plus: Balance of cash and cash

281,594,621.80 310,049,329.68

equivalents at the beginning of term



6. Balance of cash and cash equivalents

82,107,849.68 290,038,470.86

at the end of the period





II. Financial Statement Adjustment



1. The first implementation of the new financial instruments guidelines, new income standards, new lease

standards, adjustments the first implementation of the financial statements at the beginning of the year



√ Applicable □ Inapplicable

Consolidated Balance Sheet

In RMB



Item December 31, 2018 January 1, 2019 Adjustment



Current asset:



Monetary capital 1,389,062,083.76 1,389,062,083.76



Settlement provision



Outgoing call loan



Transactional financial

assets



Financial assets

measured at fair value with

variations accounted into

current income account



Derivative financial

assets



Notes receivable 140,139,692.84 140,139,692.84



Account receivable 1,920,075,031.85 1,932,765,689.04 12,690,657.19



Receivable financing





36

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Prepayment 46,454,844.74 46,454,844.74



Insurance receivable



Reinsurance receivable



Provisions of

Reinsurance contracts

receivable



Other receivables 139,990,188.26 142,135,200.55 2,145,012.29



Including: interest

receivable



Dividend

receivable



Repurchasing of

financial assets



Inventory 651,405,832.29 651,405,832.29



Contract assets



Assets held for sales



Non-current assets due

in 1 year



Other current assets 51,698,111.14 51,698,111.14



Total current assets 4,338,825,784.88 4,353,661,454.36 14,835,669.48



Non-current assets:



Loan and advancement

provided



Debt investment



Sellable financial assets 21,674,008.23 -21,674,008.23



Other debt investment



Investment held until

mature



Long-term receivable



Long-term share equity

70,105,657.88 70,105,657.88

investment



Investment in other

21,674,008.23 21,674,008.23

equity tools



Other non-current

financial assets



Investment real estate 5,256,442,406.63 5,230,896,067.50



Fixed assets 455,274,241.83 455,274,241.83





37

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Construction in process 58,269,452.72 58,269,452.72



Productive biological

assets



Gas & petrol



Use right assets



Intangible assets 80,313,240.67 80,313,240.67



R&D expense



Goodwill



Long-term amortizable

2,114,331.46 2,114,331.46

expenses



Deferred income tax

356,474,925.76 356,474,925.76 -3,305,914.45

assets



Other non-current assets 19,360,083.67 19,360,083.67



Total of non-current assets 6,320,028,348.85 6,316,722,434.40 -3,305,914.45



Total of assets 10,658,854,133.73 10,670,383,888.76 11,529,755.03



Current liabilities



Short-term loans 208,000,000.00 208,000,000.00



Loans from Central

Bank



Call loan received



Transactional financial

liabilities



Financial liabilities

measured at fair value with

variations accounted into

current income account



Derivative financial

1,625,725.00 1,625,725.00

liabilities



Notes payable 507,864,518.19 507,864,518.19



Account payable 1,039,630,798.64 1,039,630,798.64



Prepayment received 278,577,848.54 278,577,848.54



Contract liabilities



Selling of repurchased

financial assets



Deposit received and

held for others



Entrusted trading of





38

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





securities



Entrusted selling of

securities



Employees' wage

44,513,062.17 44,513,062.17

payable



Taxes payable 107,709,999.19 107,709,999.19



Other payables 813,118,699.84 813,118,699.84



Including: interest

2,098,971.44 2,098,971.44

payable



Dividend

payable



Fees and commissions

payable



Reinsurance fee payable



Liabilities held for sales



Non-current liabilities

200,000,000.00 200,000,000.00

due in 1 year



Other current liabilities 9,328,682.25 9,328,682.25



Total current liabilities 3,210,369,333.82 3,210,369,333.82



Non-current liabilities:



Insurance contract

provision



Long-term loans 1,193,978,153.39 1,193,978,153.39



Bond payable



Including: preferred

stock



Perpetual

bond



Lease liabilities



Long-term payable



Long-term employees’

wage payable



Anticipated liabilities 6,831,162.99 6,831,162.99



Deferred earning 10,401,161.30 10,401,161.30



Deferred income tax

1,042,086,700.35 1,042,086,700.35

liabilities



Other non-current





39

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





liabilities



Total of non-current

2,253,297,178.03 2,253,297,178.03

liabilities



Total liabilities 5,463,666,511.85 5,463,666,511.85



Owner’s equity:



Share capital 1,155,481,686.00 1,155,481,686.00



Other equity tools



Including: preferred

stock



Perpetual

bond



Capital reserves 1,454,191.59 1,454,191.59



Less: Shares in stock 10,831,437.66 10,831,437.66



Other miscellaneous

7,382,087.59 2,215,662.01 -5,166,425.58

income



Special reserves



Surplus reserves 120,475,221.40 121,000,081.43 524,860.03



Common risk provisions



Retained profit 3,921,225,872.96 3,937,397,193.54 16,171,320.58



Total of owner’s equity

5,195,187,621.88 5,206,717,376.91 11,529,755.03

belong to the parent company



Minor shareholders’

equity



Total of owners’ equity 5,195,187,621.88 5,206,717,376.91 11,529,755.03



Total of liabilities and

10,658,854,133.73 10,670,383,888.76 11,529,755.03

owner’s interest



About the adjustment

In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition

and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",

"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37

- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires

enterprises listed in China to implement the above accounting standards from January 1, 2019.

In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,

2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument

investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assets

measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the

same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new

financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when

preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other



40

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





comprehensive income at the beginning of 2019.





Balance Sheet of the Parent Company

In RMB



Item December 31, 2018 January 1, 2019 Adjustment



Current asset:



Monetary capital 410,118,157.55 410,118,157.55



Transactional financial

assets



Financial assets

measured at fair value with

variations accounted into

current income account



Derivative financial

assets



Notes receivable 200,000,000.00 200,000,000.00



Account receivable 471,039.12 471,039.12 8,595.25



Receivable financing



Prepayment 6,733,047.16 6,733,047.16



Other receivables 822,543,653.04 822,543,653.04 100,970.95



Including: interest

receivable



Dividend

100,000,000.00 100,000,000.00

receivable



Inventory



Contract assets



Assets held for sales



Non-current assets due

in 1 year



Other current assets 919,388.18 919,388.18



Total current assets 1,440,785,285.05 1,440,894,851.25 109,566.20



Non-current assets:



Debt investment



Sellable financial assets 21,674,008.23 -21,674,008.23



Other debt investment



Investment held until

mature





41

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Long-term receivable



Long-term share equity

983,339,494.35 983,339,494.35

investment



Investment in other

21,674,008.23 21,674,008.23

equity tools



Other non-current

financial assets



Investment real estate 309,189,866.37 309,189,866.37



Fixed assets 53,784,811.23 53,784,811.23



Construction in process



Productive biological

assets



Gas & petrol



Use right assets



Intangible assets 2,112,301.97 2,112,301.97



R&D expense



Goodwill



Long-term amortizable

917,499.68 917,499.68

expenses



Deferred income tax

34,555,598.81 34,528,207.26 -27,391.55

assets



Other non-current assets



Total of non-current assets 1,405,573,580.64 1,405,546,189.09 -27,391.55



Total of assets 2,846,358,865.69 2,846,441,040.34 82,174.65



Current liabilities



Short-term loans 200,000,000.00 200,000,000.00



Transactional financial

liabilities



Financial liabilities

measured at fair value with

variations accounted into

current income account



Derivative financial

liabilities



Notes payable



Account payable 676,941.85 676,941.85



Prepayment received 733,274.16 733,274.16





42

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Contract liabilities



Employees' wage

2,145,763.39 2,145,763.39

payable



Taxes payable 341,004.65 341,004.65



Other payables 300,006,406.51 300,006,406.51



Including: interest

740,208.33 740,208.33

payable



Dividend

payable



Liabilities held for sales



Non-current liabilities

due in 1 year



Other current liabilities



Total current liabilities 503,903,390.56 503,903,390.56



Non-current liabilities:



Long-term loans 500,000,000.00 500,000,000.00



Bond payable



Including: preferred

stock



Perpetual

bond



Lease liabilities



Long-term payable



Long-term employees’

wage payable



Anticipated liabilities



Deferred earning



Deferred income tax

64,130,617.41 64,130,617.41

liabilities



Other non-current

liabilities



Total of non-current

564,130,617.41 564,130,617.41

liabilities



Total liabilities 1,068,034,007.97 1,068,034,007.97



Owner’s equity:



Share capital 1,155,481,686.00 1,155,481,686.00









43

China Fangda Group Co., Ltd. 2019 Q3 Report (Full)





Other equity tools



Including: preferred

stock



Perpetual

bond



Capital reserves 360,835.52 360,835.52



Less: Shares in stock 10,831,437.66 10,831,437.66



Other miscellaneous

8,756,553.46 3,590,127.88 -5,166,425.58

income



Special reserves



Surplus reserves 120,475,221.40 121,000,081.43 524,860.03



Retained profit 504,081,999.00 508,805,739.20 4,723,740.20



Total of owners’ equity 1,778,324,857.72 1,778,407,032.37 82,174.65



Total of liabilities and

2,846,358,865.69 2,846,441,040.34 82,174.65

owner’s interest



About the adjustment

In 2017, the Ministry of Finance revised and released the "Accounting Standards for Business Enterprises No. 22 - Recognition

and Measurement of Financial Instruments", "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets",

"Accounting Standards for Business Enterprises No. 24 - Hedge Accounting" "Accounting Standards for Business Enterprises No. 37

- Financial Instruments Presentation" (hereinafter collectively referred to as the "New Financial Instruments Standards"), and requires

enterprises listed in China to implement the above accounting standards from January 1, 2019.

In accordance with the above requirements, the Company will implement the new financial instrument standard from January 1,

2019 and reclassify the original financial assets into transactional financial assets, derivative financial assets, other equity instrument

investments and other non-current financial assets. Non-transaction equity instrument investment is designated as financial assets

measured at fair value through other comprehensive income and is presented in “other equity instrument investment” items. At the

same time, the loss provision prepared by the original financial instrument standard is adjusted to be in accordance with the new

financial instrument. According to the regulations, it is not necessary to repeat the data of the 2018 comparative period when

preparing the report for each period of 2019, but it is necessary to make retrospective adjustments to the retained earnings or other

comprehensive income at the beginning of 2019.





2. Description of the 2019 implementation of the new financial instrument criteria, new lease standard

retrospective adjustment of the previous period comparison data



□ Applicable √ Inapplicable





3. Auditor’s Report



Whether the Q3 report is audited

□ Yes √ No

The Q3 Report is not audited.







44