Shenzhen China Bicycle Company (Holdings) Limited
Summary of Semi-Annual Report 2018
I. Important Notice
The summary is abstract from full-text of semi-annual report, for more details of operating results, financial condition and futuredevelopment plan of the Company; investors should found in the full-text of semi-annual report that published on media appointedby CSRC.Objection statement of directors, supervisors and senior executives
| Name | Position | Content and reason |
StatementOther directors attending the Meeting for semi-annual report deliberation except for the followed
| Name of director absent | Title for absent director | Reasons for absent | Attorney |
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Company profile
1. Company Profile
| Short form of the stock | Zhonghua – A, Zhonghua -B | Stock code | 000017, 200017 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Sun Longlong | Cui Hongxia, Zhong Xiaojin | ||
| Office add. | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen | Room 1201, Wantong Building, No.3002, Sungang East Road, Shenzhen | ||
| Tel. | 0755-25516998,28181666 | 0755-25516998,28181666 | ||
| dmc@szcbc.com | dmc@szcbc.com | |||
2. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
| Current period | Same period of last year | Increase/decrease in this report y-o-y | |
| Operating revenue (RMB) | 67,734,899.35 | 48,929,676.27 | 38.43% |
| Net profit attributable to shareholders of the listed company (RMB) | 554,162.06 | -1,691,378.44 | -132.76% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 521,366.39 | -1,902,819.26 | -127.40% |
| Net cash flow arising from operating activities (RMB) | -3,362,971.19 | -8,806,042.23 | -61.81% |
| Basic earnings per share (RMB/Share) | 0.0010 | -0.0031 | -132.26% |
| Diluted earnings per share (RMB/Share) | 0.0010 | -0.0031 | -132.26% |
| Weighted average ROE | 3.43% | -12.51% | 15.94% |
| End of current period | End of last period | Increase/decrease in this report-end over that of last period-end | |
| Total assets (RMB) | 70,833,599.30 | 73,559,961.28 | -3.71% |
| Net assets attributable to shareholder of listed company (RMB) | 16,452,432.91 | 15,898,270.85 | 3.49% |
3. Number of shares and shares held
In Share
| Total common stock shareholders in reporting period-end | 49,697 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||||
| Top ten shareholders | |||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Shareholding numbers | Amount of restricted shares held | Number of share pledged/frozen | ||||
| State of share | Amount | ||||||||
| Shenzhen Guocheng Energy Investment | Domestic non-State-owned legal person | 11.52% | 63,508,747 | 0 | 0 | ||||
| Development Co., Ltd. | ||||||
| UOB Koy Hian (Hong Kong) Co., Ltd. | Foreign legal person | 2.89% | 15,907,850 | 0 | 0 | |
| Guosen Securities (Hong Kong) brokerage Co., Ltd. | Foreign legal person | 2.52% | 13,909,425 | 0 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.33 single fund trust | Other | 1.35% | 7,435,165 | 0 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.15 single fund trust | Other | 1.29% | 7,114,435 | 0 | 0 | |
| Shenwan Hongyuan Securities (Hongkong) Co., Ltd. | Foreign legal person | 1.22% | 6,707,257 | 0 | 0 | |
| Huabao Trust Co., Ltd. – Huihuang No.22 single fund trust | Other | 0.80% | 4,387,288 | 0 | 0 | |
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.13 structured portfolio investment trust plan | Other | 0.72% | 3,958,923 | 0 | 0 | |
| Li Huili | Domestic nature person | 0.71% | 3,891,124 | 0 | 0 | |
| Zhongrong International Trust Co., Ltd. – Zhongrong –Dingfu No.14structured portfolio investment trust plan | Other | 0.67% | 3,684,497 | 0 | 0 | |
| Explanation on associated relationship among the aforesaid shareholders | Li Huili, spouse of the Ji Hanfei, the actual controller of the Company- Shenzhen Guosheng Energy Investment Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guocheng Energy Investment Development Co., Ltd., beyond that, the Company has no idea of whether other circulated shareholders belong to concerted action persons ruled in the Administration Norms for Information Disclosure of Change on Shareholding of Shareholders of Listed Companies. | |||||
| Shareholders involving margin | N/A | |||||
4. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
5. Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
No preferred stock in reporting period.
6. Corporation Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whenannual report approved for released or fail to cash in full on dueNo
III. Discussion and analysis by the Management Team
1. Introduction of operation in the reporting period
Dose the Company need to comply with disclosure requirements of the special industryNo
In first half of 2018, the international political and economical situation was complex and severe, structuralproblems and deep-seated contradictions in the domestic economic development were highlighted, economicdownturn pressure continued to increase, many unstable and uncertain factors still existed, which affected andimpacted the traditional manufacturing industries and the social consumption structure demand. Under theleadership of central government and governments at all levels, the whole nation strengthened their confidence,overcame difficulties, and forged ahead, and achieved steady progress in economic and social development, andthe economic fundamentals were continuously consolidated and developed. As a sector in the traditionalmanufacturing field, the bicycle industry continued the dilemma of rise in labor cost, manufacturing costs, cost ofcapital, and material costs. Due to the low entry barriers of the industry and the large number of manufacturers,the market competition was fierce and the industry reshuffle intensified. The shared bicycle brands like Mobike
were quickly promoted with financial advantages, further met the users’ needs, and squeezed the market space of
traditional bicycle enterprises. At the same time, as a traditional manufacturing industry, the bicycle industry also
ushered in the “Made in China 2025” strategy, under the guidance of the basic principles of “Innovation Driven,Quality First, Green Development, Structure Optimization, and Talent Based”, took the important opportunity to
speed up the transformation and upgrading, and also faced with the important challenges of e-commercedevelopment impacts on channels, channel integration and Internet+.
China has the world’s largest production and marketing of electric bicycles, after years of development, electric
bicycles have gradually become an important means of transportation for consumers on everyday short-distancetrips, at present, there are about 200 million bicycles in the entire society. Structural body, motor, power battery,and control system are the core components of electric bicycles, Shenzhen China Bicycle has been closelyfollowing up the research on their technological development, application development, and commercial value fora long period of time, and has determined the qualified suppliers for core components year by year. Thenon-public offering of shares for fund-raising investment project of Shenzhen China Bicycle being planned andprepared at present also covers the application researches on switched reluctance motors, super-capacitor batteries,new materials, electric car bus control systems, wearable devices, intelligent positioning lock systems, etc. As oneof the core components, electric bicycle power batteries have been mainly lead-acid batteries in the past decade ortwo, with the development and popularization of new energy technologies and new energy materials, it is
expected to be replaced by the lithium batteries in the future. According to the strategy guidelines of “Made inChina 2025” by the State Council and the spirit of standardization reform, the Ministry of Industry and
Information Technology, the Ministry of Public Security, the State Administration for Industry and Commerce,and the General Administration of Quality Supervision, Inspection and Quarantine have introduced a new nationalstandard for electric bicycles to comprehensively improve the safety performance of electric bicycles, adjust andimprove the speed limit, vehicle quality, pedaling and riding ability and other technical indicators. New standards
not only are close to people’s livelihood, but also improve the application space for lithium battery energy storage,
and lithium battery electric bicycles usher in a new stage of development.Under this background, in first half 2018, the company combined with its actual situation of weak economicfoundation after restructuring, on the one hand, adhered to taking the traditional business model development asthe principle, strengthened the product research and development efforts, and constantly optimized and adjustedthe product structure and sales model transformation, according to the e-commerce transformation of businessteam and the cost control way of internal introduction and external connection, and actively expanded thee-commerce business model; on the one hand, correspondingly carried out the tracking study on industrial projectsand technology applications of upstream and downstream of industrial chain in the long-term process of electricbicycle business, strived to expand the lithium battery materials business based on the extensive businessconsultation and business opportunity sifting, and took it as an opportunity to gradually expand its main business;on the other hand, strived to promote the selection work of the company's restructuring, planned the non-publicoffering of shares, and started the business upgrades and connection work of the offline sales platform for sportsexperience and R & D center construction projects.In preparation for non-public offering of shares, in July 2016, the company initiated the planning and preparationfor non-public offering of shares and engaged securities companies, lawyers, accountants, and other intermediaryagencies to carry out various tasks. Since then, the nineteenth (temporary) meeting, the twenty-second (temporary)meeting, and the twenty-sixth (temporary) meeting of the ninth session of board of directors of the company, and
the second extraordinary shareholders’ meeting in 2017 reviewed and approved the relevant proposals on
non-public offering of shares. Combining the capital market with the actual situation of the company, fromJanuary to February, 2018, the fourth (temporary) meeting of the 10
th
session of board of directors and the first
extraordinary shareholders’ meeting of the company in 2018 reviewed and approved the Proposal on Adjustingthe Plan for the Company’s Non-Public Offering of A-Shares, and the Proposal on the Plan for the Company’s
Non-Public Offering of A-Shares (three revised versions) and other relevant proposals. According to the aboveproposals, the total amount of funds raised in this non-public offering of shares did not exceed 750 million Yuan,
and planned to invest 680 million Yuan for the “online and offline marketing network platform construction andupgrade project” and planned to invest 70 million Yuan for the “R&D center construction project after deducting
the issuance costs.Under the background that the traditional manufacturing industry at home was still sluggish, in accordance with
the guidelines of “Made in China 2025”, the company insisted on accelerating its professional transformation and
e-commercial transformation, striving to expand its main business, strengthening the structural adjustment,intensifying the quality management, strengthening cost control, improving the ability of traditional enterprises toadapt to economy new normal and participate in market competition. Through various efforts, the companyachieved operating revenue of 67,734,900 Yuan and net profit of 491,900 Yuan in first half of 2018, of which, the
net profit attributable to shareholders of listed companies was 554,200 Yuan. The company’s operations remained
stable and have injected new development potential.2. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last fiscal period
□ Applicable √ Not applicable
The Company had no particulars about the changes in aspect of accounting policy, estimates or calculation method in the reportingperiod.
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in reporting period.
(3) Particulars about the change of consolidation range compared with the financial report of last fiscalperiod
□ Applicable √ Not applicable
The Company had no particular about the change of consolidation range compared in reporting period.