Stock Code: 000020 200020 Public Notice No.: 2019-21Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA- B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Semi-Annual Report 2019I. Important NoticeThe summary is abstract from full-text of 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 |
| Gao Jianbai | director | personal reason | Li Zhongqiu |
| Xu Jinwen | independent director | personal reason | Zhang Zhaoguo |
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 plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Basic information of the company
1. Company profile
| Short form of the stock | Shen Huafa A, Shen Huafa B | Stock code | 000020, 200020 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Yang Bin | Niu Zhuo |
| Office add. | 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen | 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen |
| Tel. | 0755-86360201 | 0755-86360201 |
| hwafainvestor@126.com.cn | hwafainvestor@126.com.cn |
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 last year | Changes over last year (+,-) | |
| Operating income (RMB) | 339,190,174.05 | 340,984,843.24 | -0.53% |
| Net profit attributable to shareholders of the listed company (RMB) | 2,580,411.13 | 2,793,133.60 | -7.62% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 2,197,912.06 | 2,053,467.02 | 7.03% |
| Net cash flow arising from operating activities (RMB) | 45,194,220.56 | -26,671,325.63 | |
| Basic earnings per share (RMB/Share) | 0.0091 | 0.0099 | -8.08% |
| Diluted earnings per share (RMB/Share) | 0.0091 | 0.0099 | -8.08% |
| Weighted average ROE | 0.79% | 0.87% | -0.08% |
| Period-end | Period-end of last year | Changes over period-end of last year (+,-) | |
| Total assets (RMB) | 623,980,175.29 | 617,090,153.46 | 1.12% |
| Net assets attributable to shareholder of listed company (RMB) | 326,548,411.87 | 323,968,000.74 | 0.80% |
3. Amount of shareholders of the Company and particulars about shares holding
In Share
| Total common stock shareholders in reporting period-end | 23,417 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||||
| Shares held by top ten shareholders | |||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Number of shares held | Amount of restricted shares held | Number of share pledged/frozen | ||||
| State of share | Amount | ||||||||
| Wuhan Zhongheng Group | Domestic non-state-owned legal person | 42.13% | 119,289,894 | 0 | Pledged | 116,100,000 | |||
| Frozen | 119,289,894 | ||||||||
| SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| GOOD HOPE CORNER INVESTMENTS LTD | Overseas legal person | 4.49% | 12,700,000 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Guoyuan Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.36% | 3,845,117 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Li Zhongqiu | Overseas nature person | 1.00% | 2,830,000 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Zhong Jiachao | Domestic nature person | 0.45% | 1,277,494 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Li Senzhuang | Domestic nature person | 0.35% | 986,550 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| LI SHERYN ZHAN MING | Overseas nature person | 0.35% | 980,100 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Han Yaming | Domestic nature person | 0.30% | 864,200 | 0 | Pledged | 0 |
| Frozen | 0 | |||||
| Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, Wuhan Zhongheng Group neither bears associated relationship with other shareholders, nor belongs to the consistent actor that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The Company neither knew whether there exists associated relationship among the other tradable shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | |||||
| Explanation on shareholders involving margin business (if applicable) | Among the top ten shareholders, Zhong Jiachao holds 1,277,494 shares of the Company, of which, 743,494 shares held by normal account, and 534,000 shares held through credit security account | |||||
4. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √Not applicable
The Company had no changes of controlling shareholders in reporting periodChanges of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.
5. Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
6. Corporate bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whensemi-annual report approved for released or fail to cash in full on due:
NoIII. Discussion and analysis of business
1. Introduction of operation in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industryNoAfter years of development, the company has gradually formed two main businesses in industry and propertymanagement. Among them, the industrial business mainly includes injection molding, POLYLON (light-weightpackaging materials), and complete machine production and sales of liquid crystal display, property managementbusiness is mainly the lease of its own property.In the first half of 2019, the company achieved operation revenue of 339.19 million yuan, with a y-o-y declined of
0.53%; operating profit of 295 million yuan, with a y-o-y growth of 16.15%; net profit of 2.58 million yuan, witha y-o-y declined of 7.62%; operation revenue from industry production has 318.76 million yuan in the first half ofthe year, with a y-o-y declined of 1.43%, operating profit of 1.69 million yuan, with a y-o-y declined of 68.15%;net profit of 1.6358 million yuan, with a y-o-y declined of 68.24%; the revenue earns from property leasing in firsthalf year comes to 18.91 million yuan, an increase of 21.20% over the same period last year, and the operatingprofit was 1.26 million yuan, with a y-o-y growth of 3.93 million yuan (from the same period last year to (2.67)million yuan); the net profit was 94.58 million yuan, and from the same period last year to (1.72) million yuan.
2. Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the accounting period of last year
√Applicable □ Not applicable
| Contents and Causes of Accounting Policy Change | Approval procedure | Note |
| The Ministry of Finance issued the Accounting Standards for Business Enterprise No. 22- Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprise No. 23- Transfer of Financial Assets, Accounting Standards for Business Enterprise No. 24- Hedge Accounting and Accounting Standards for Business Enterprise No. 37- Presentation of Financial Instruments after revised in 2017 ( these four items are collectively referred to as the new financial instrument standards).The Company implemented the above mentioned new standards after revision since 1st January 2019, and relevant content with accounting policy concerned are been adjusted. | Change of the accounting policy has deliberated and approved by the 11th session of 9th BOD |
| In April 2019, the Ministry of Finance issued the Notice on Revision and Issuance of 2019 Financial Statement Format for General Corporate (Cai Kuai [2019] No.6) (hereinafter referred to as Financial Statement Format), in terms of the financial statement of mid-term 2019, the annual financial statement and later period’s financial statement are required to preparing in line with the Accounting Standards for Business Enterprise and Financial Statement Format. | Change of the accounting policy has deliberated and approved by the 11th session of 9th BOD |
The Company will implement the relevant regulation of Cai Kuai (2019) No.6 issued by Ministry of Finance,relevant financial statements are been adjusted. Items and amount has major influence on 31
stDecember 2018 inbalance sheet are as:
| Item | Consolidated Balance Sheet | |
| Before the adjustment | After the adjustment | |
| Notes Receivable and Accounts Receivable | 185,983,351.22 | |
| Notes Receivable | 69,185,516.71 | |
| Accounts Receivable | 116,797,834.51 | |
| Notes Payable and Accounts Payable | 88,617,663.09 |
| Notes Payable | 27,642,356.66 | |
| Accounts Payable | 60,975,306.43 |
(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period
□ Applicable √ Not applicable
The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.
(3) Particulars about the change of consolidation range compared with the accounting period of last year
□ Applicable √ Not applicable
The Company’s consolidation range has no changes in the period.