Stock Code: 000055 200055 Stock ID: Fangda Group Fangda B Announcement No. 2020-51

I Important Statement

The members of the Board and the Company guarantee that the

announcement 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. XiongJianming 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.

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) 11906374078.74 11369964580.11 4.72%

Net profit attributable to the

shareholders of the listed company

(RMB)

5204160939.88 5182795079.67 0.41%

This report period

Year-on-year change

(%)

Between beginning of

the year to the end of

the report period

Change from the same

period last year

Turnover (yuan) 848436105.17 21.34% 2100044169.59 -1.18%

Net profit attributable to

shareholders of the listed company

(yuan)

68793891.42 150.45% 215633776.00 38.18%

Net profit attributable to the

shareholders of the listed company

and after deducting of

non-recurring gain/loss (RMB)

54966749.35 250.97% 201259597.30 55.97%

Net cash flow generated by

business operation (RMB)

316947166.56 987.05% 179961687.16 144.06%

Basic earnings per share

(yuan/share)

0.06 200.00% 0.20 42.86%

Diluted Earnings per share

(yuan/share)

0.06 200.00% 0.20 42.86%

Weighted average net income/asset

ratio

1.32%

Increased by 0.77

percentage points

4.13%

Increased by 1.02

percentage points

Note: Due to changes in the accounting estimates of the expected credit loss rate of accounts receivable and contract assets in 2020

the net profit from January to September 2020 will increase by RMB 84734058.68.

Accidental gain/loss item and amount

√ Applicable □ Inapplicable

In RMB

Item

Amount from beginning of

the year to the end of the

Notes

report period

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

for which assets impairment provision is made)

10159456.23

Subsidies accounted into the current income account (except the

government subsidy closely related to the enterprise’s business

and based on unified national standard quota)

7433515.71

Gain/loss from change of fair value of transactional financial

asset and liabilities and investment gains from disposal of

transactional and derivative financial assets and liabilities and

sellable financial assets other than valid period value instruments

related to the Company’s common businesses

5211270.22

Gain/loss from commissioned loans 397420.84

Gain/loss from change of fair value of investment property

measured at fair value in follow-up measurement

174286.01

Other non-business income and expenditures other than the above -5875702.70

Less: Influenced amount of income tax 3052223.50

Influenced amount of minority shareholders’ equity

(after-tax)

73844.11

Total 14374178.70 --

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 common

shares at the end of the report period

61688

Number of shareholders of

preferred stocks of which

voting rights recovered in the

report period (if any)

0

Top 10 Shareholders

Shareholder name

Nature of

shareholder

Shareholding

percentage

Shareholding

number

Conditional

shares

Pledging or freezing

Share status Quantity

Shenzhen

BanglinTechnolo

Domestic

non-state legal

10.77% 117183046 Pledged 32700000

gies Development

Co. Ltd.

person

Shengjiu

Investment Ltd.

Foreign legal

person

9.66% 105134562

Fang Wei

Domestic natural

person

2.79% 30322437

Gong Qing

Cheng Shi Li He

Investment

Management

Partnership

Enterprise

(limited partner)

Domestic

non-state legal

person

2.46% 26791488

VANGUARD

TOTAL

INTERNATION

AL STOCK

INDEX FUND

Foreign legal

person

0.64% 6962407

VANGUARD

EMERGING

MARKETS

STOCK INDEX

FUND

Foreign legal

person

0.58% 6312683

ShenwanHongyu

an Securities

(Hong Kong)

Co. Ltd.

Foreign legal

person

0.52% 5705823

Qu Chunlin

Domestic natural

person

0.51% 5557161

First Shanghai

Securities

Limited

Foreign legal

person

0.36% 3938704

Shanghai Silver

Leaf Investment

Co. Ltd.-Silver

Leaf Quantitative

Hedging Phase 2

Private Securities

Investment Fund

Others 0.35% 3755500

Top 10 holders of unconditional shares

Shareholder name Amount of shares without sales restriction Category of shares

Category of

shares

Quantity

Shenzhen Banglin Technologies

Development Co. Ltd.

117183046

RMB common

shares

117183046

Shengjiu Investment Ltd. 105134562

Domestically

listed foreign

shares

105134562

Fang Wei 30322437

RMB common

shares

30322437

Gong Qing Cheng Shi Li He

Investment Management Partnership

Enterprise (limited partner)

26791488

RMB common

shares

26791488

VANGUARD TOTAL

INTERNATIONAL STOCK INDEX

FUND

6962407

Domestically

listed foreign

shares

6962407

VANGUARD EMERGING

MARKETS STOCK INDEX FUND

6312683

Domestically

listed foreign

shares

6312683

ShenwanHongyuan Securities (Hong

Kong) Co. Ltd.

5705823

Domestically

listed foreign

shares

5705823

Qu Chunlin 5557161

RMB common

shares

5557161

First Shanghai Securities Limited 3938704

Domestically

listed foreign

shares

3938704

Shanghai Silver Leaf Investment

Co. Ltd.-Silver Leaf Quantitative

Hedging Phase 2 Private Securities

Investment Fund

3755500

RMB common

shares

3755500

Notes to top ten shareholder

relationship or "action in concert"

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

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

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

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

participating in margin trade (if any)

Shenzhen Banglin Technology Development Co. Ltd. holds 55000000 shares of the

Company through the customer credit transaction guarantee securities account of Ping An

Securities Co. Ltd. and Shanghai Yinye Investment Co. Ltd.-Yinye Quantitative Hedging

Phase 2 Private Securities Investment Fund through Xiangcai Securities Co. Ltd. The

customer credit transaction guarantee securities account holds 3755500 shares of the

Company.

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

III Significant Events

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

√ Applicable □ Inapplicable

Item September 30 2020 December 31 2019 YOY change (%) Reason

Transactional

financial assets

83641134.43 10330062.18 709.69% Mainly due to increase in Closing

balance bank borrowings

Notes receivable 154118383.63 305070930.97 -49.48% Mainly due to the decrease of

unterminated notes receivable

Account

receivable

477375042.94 1956191307.07 -75.60% Mainly due to the

implementation of the new

revenue standard to classify some

accounts receivable under the old

standard into contract assets

Contract assets 1828732752.68 0.00

Short-term loans 1485747404.29 724618197.34 105.04% Mainly due to increase in bank

borrowings

Notes payable 758920601.25 578816027.44 31.12% Mainly due to increased payment

of bills

Prepayment

received

1333551.23 136340104.73 -99.02% Mainly due to the

implementation of the new

revenue standards to classify

advance receipts under the old

standards into contract liabilities;

at the same time the growth of

the subway screen door business

during the current period and the

pre-sale of the Fangda Center

project resulted in an increase in

contract liabilities compared to

the advance receipts at the end of

the previous year

Contract liabilities 197366616.18 0.00

Employees' wage

payable

23115171.51 55847134.20 -58.61% Annual bonus paid

Taxes payable 30336924.01 17848987.68 69.96% Mainly due to relevant taxes and

fees accrued at the end of the

period

Non-current

liabilities due in 1

year

95219592.88 922346563.72 -89.68% Repayment of long-term loans

due within 1 year

Other current

liabilities

58941182.96 181694574.47 -67.56% Mainly due to the decrease of

unterminated notes receivable

Long-term loans 1117411462.35 546501491.56 104.47% Mainly due to increase in bank

borrowings

Shares in stock 42748530.12 0.00 It is the repurchase cost of B

shares that have not yet been

cancelled in the current period

Surplus reserve 95525281.06 159805930.34 -40.22% Caused by the repurchase and

cancellation of B shares in the

current period

Minor

shareholders’

equity

68338731.91 48410009.60 41.17% Mainly due to the transfer of part

of the equity of the subsidiary in

the current period

Item Total amount in this

year

Last period YOY change (%) Reason

Taxes and

surcharges

13933300.17 47749346.11 -70.82% Mainly due to the decrease in real

estate income which is due to the

decrease in provision of the land

VAT.

Sales expense 27726818.37 40738405.49 -31.94% Main due to decrease in Expense

R&D cost 96985432.54 35163348.44 175.81% Mainly due to increased

investment in research and

development

Credit impairment

loss

84166868.00 -22736143.99 470.19% Mainly due to changes in

accounting estimates for accounts

receivable and expected credit

loss rate of contract assets in the

current period

Income tax

expenses

27941944.61 14924568.34 87.22% Mainly due to the increase in

profits which is due to the

increase in income tax

Net profit

attributable to the

owners of parent

company

215633776.00 156050013.39 38.18% Mainly due to the increase in the

net profit of the subway screen

door business in the current

period and the increase in the net

profit due to the change in the

accounting estimate of the

expected credit loss rate

Cash flow

generated by

business

operations net

179961687.16 -408455390.94 144.06% It is mainly due to the increase in

cash flow of operating activities

due to the gradual recovery of

mortgage bonds in the current

period and the decrease in tax and

expense.

Cash flow

generated by

investment

activities net

-170657974.82 -398879702.81 57.22% The net investment expenditure

in the current period was mainly

due to the increase in the

company's production base fixed

assets and investment real estate

construction investment and the

increase in net wealth

management expenditure

Net cash flow

generated by

financing

activities

95892601.44 232130880.90 -58.69% Mainly due to the increase in

bank loans and the payment of

cash dividends and repurchase of

B-shares in the current period.

2. Progress of key issues and its impacts and solutions

□ Applicable √ Inapplicable

Progress in the implementation of share repurchase

√ Applicable □ Inapplicable

1. The company repurchased some 35105238 shares of domestically listed foreign shares (B shares) in 2019. The repurchase

and cancellation procedures were completed on May 20 2020. For details please refer to the company’s "About Repurchase of

Shares" disclosed on May 22 2020. Announcement of completion of cancellation."

2. As of September 22 2020 the Company's 2020 repurchase period for some domestically listed foreign shares (B shares) has

expired. A total 14404724 B shares have been repurchased. The highest price of repurchase is HK$3.47 per share. The lowest price

is HK$3.16 per share and the cumulative payment of HK$48359819.24 (including transaction-related expenses). The company has

disclosed the "Announcement on the Expiry of the Repurchase Period and the Implementation Results of Share Repurchase" on

September 24 2020. The repurchased shares shall be cancelled and the registered capital shall be reduced after being reviewed and

approved by the general meeting of shareholders within three years after the announcement of the repurchase results is disclosed; if

the Company's shareholders' meeting does not pass the review the shares that have been repurchased will be transferred within three

years according to relevant regulations.Progress in the implementation of the reduction of shareholding shares by means of centralized bidding

□ 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. Financial assets investment

1. Securities investment

□ Applicable √ Inapplicable

The Company made no investment in securities in the report period

2. Derivative investment

√ Applicable □ Inapplicable

In RMB10000

Derivati

ve

investm

ent

operator

name

Relation

ship

Related

transacti

on

Type

Initial

amount

Start

date

End

date

Initial

investm

ent

amount

Amount

in this

period

Amount

sold in

this

period

Impairm

ent

provisio

n (if

any)

Closing

investm

ent

amount

Proporti

on of

closing

investm

ent

amount

in the

closing

net

assets in

the

report

period

Actual

gain/los

s in the

report

period

Shangha

i

Futures

Exchan

ge

No No

Shangha

i

aluminu

m

06

Februar

y 2020

30

Septem

ber

2020

17686.

43

11799.0

8

5887.3

5

1.13% 217.69

Banks No No

Forward

foreign

exchang

e

2166

2

August

2019

30

Septem

ber

2020

2166

7248.4

9

5467.0

7

3947.4

2

0.76% -13.02

Total 2166 -- -- 2166

24934.

92

17266.

15

9834.7

7

1.89% 204.67

Capital source Self-owned fund

Lawsuit (if any) None

Disclosure date of derivative

investment approval by the Board of

Directors (if any)

16 April 2020

Disclosure date of derivative

investment approval by the

Shareholders’ Meeting (if any)

Risk analysis and control measures

for the derivative holding in the

report period (including without

limitation market liquidity credit

operation and legal risks)

The company's aluminum futures hedging and foreign exchange derivatives trading business

are all derivatives investment business. The company has established and implemented the

"Derivatives Investment Business Management Measures" and "Commodity Futures

Hedging Business Internal Control and Risk Management System". It has made clear

regulations on the approval authority business management risk management information

disclosure and file management of derivatives trading business which can effectively control

the risk of the company's derivatives holding positions.

Changes in the market price or fair

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.

Fair value of derivatives are measured at open prices in the open market

Material changes in the accounting

policies and rules related to the

derivative in the report period

compared to last period

None

Opinions of independent directors on

the Company’s derivative investment

and risk controlling

None

5. Progress of investment projects with raised funds

□ Applicable √ Inapplicable

6. Forecast of operating performance in 2020

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

7. Major contracts for daily operations

□ Applicable √ Inapplicable

8. Entrusted wealth management

√ Applicable □ Inapplicable

In RMB10000

Type Source of fund Amount Undue balance

Due balance to be

recovered

Bank financial products Self-owned fund 61664.52 8364.11 0

Total 61664.52 8364.11 0

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

protection

□ Applicable √ Inapplicable

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

□ Applicable √ Inapplicable

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.XI. Reception of investigations communications or interviews in the reporting period

√ Applicable □ Inapplicable

Time/date Place Way Visitor Visitor

Main content

involved and

materials

provided

Disclosure of

information

30 September

2020

Shenzhen

Fangda Town

Meeting room

Onsite

investigation

Institution

GuotaiJunan

Securities Co.Ltd. Shenzhen

Cyberna Capital

Management

Partnership

(Limited

Partnership)

Shenzhen Dexun

Investment Co.Ltd. Shenzhen

QianhaiPai Asset

Management

Co. Ltd.

Shenzhen

QianhaiHongxin

Business and

future

development

Investor Relationship

Record Form on

www.cninfo.com.cn

g Investment

Co. Ltd.

Qianhai Yangtze

River Fund

Management

(Shenzhen) Co.Ltd. Shenzhen

Zhongna Capital

Investment

Management

Co. Ltd.

Shenzhen

QianhaiDaqianH

uayan

Investment Co.Ltd. Shenzhen

QianhaiLeying

Investment

Management

Co. Ltd.

Shenzhen Daqin

Fund

Management

Co. Ltd.

Shenzhen

Private Equity

Chamber of

Commerce

12. Donations

In the first three quarters of 2020 the Company and its employees donated a total of RMB7772160 for epidemic prevention and

control and targeted poverty alleviation. The main items are as follows:

1. In order to prevent and control the new crown epidemic the Company supports medical staff who are on the front line of the

epidemic respectively donating RMB2 million to the Wuhan Red Cross Society and RMB1 million to the Jiangxi Red Cross

Foundation for the purchase of prevention and control materials motivate frontline medical staff;

2. Period To help the large tenants in Shenzhen the Company has reduced the rent by RMB2.52 million;

3. The Company donated RMB2 million to the Jiangxi Red Cross Foundation to support poverty alleviation in Aktao County

Xinjiang;

4. The Company organized party members and employees to donate RMB120500 to fight the epidemic;

5. The Company donated 50000 masks to the new district of Nanchang City equivalent to RMB112500 in capital;

The Company will continue to fulfill its social responsibility for precision poverty alleviation and make donations from time to

time based on business development.

13. Others

1. New bids and contracted orders

(1) High-end curtain wall system and material industry: In the first three quarters of 2020 the total amount of bids and orders

signed was RMB2.385 billion and the order reserve was RMB3.433 billion which was 2.35 times the operating income of the

high-end curtain wall system and material industry in the first three quarters.

(2) Rail transit screen door equipment industry: In the first three quarters of 2020 the total amount of winning bids and signing

orders is RMB734 million and the order reserve is RMB1.545 billion which is 3.02 times the operating income of the rail transit

screen door industry in the first three quarters.

2. Real estate:

(1) Shenzhen Fangda Town Project: The remaining small area of the project is for sale. The sales business at the end of this year

was affected by the epidemic. In the first three quarters the subscribed sales area was 1754.31 square meters and the remaining area

for sale of the project was 5849.94 square meters; the commercial occupancy rate Reached 99.46%; the newly rented area of office

buildings in the first three quarters was 12588.86 square meters and the occupancy rate reached 50%.

（2） Nanchang Fangda Center: The project is located in the Fenghuangzhou District of the New District of Honggutan

Nanchang City. It covers a total area of 16600 square metres and has a total building area of 66432.61 square metres. It is a small

and medium-sized commercial complex integrated with office apartment shopping leisure and entertainment. The project is mainly

sold and leased with a sales area of 32460.11 square metres. It was pre-sold on 28 December 2019. In the first three quarters the

pre-sale area was 2818.52 square meters.

3. Shenzhen FangdaBangshen Industrial Park: The project is located in Fuyong Bao'an District Shenzhen. It covers an area of

20714.9 square meters and is currently an industrial plant. The project was approved in July 2019. During the reporting period the

company is actively promoting the special plan of FangdaBongShen project.

(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 72000 square meters. The update direction is mainly

residential function and finally subject to government approval. The Company is currently pushing forward the approval progress of

the urban renovation project.

China Fangda Group Co. Ltd.

Assistant representative: XiongJianming

October 21 2020