Stock Code: 000019, 200019 Public Notice No.: 2020- 20Short Form of the Stock: SZCH, Shenliang B
SHENZHEN CEREALS HOLDINGS CO., LTD.
Summary of Semi-Annual Report 2020I. 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 annual report that published on media appointed byCSRC.In addition to the following directors, other directors attended the Board Meeting for the deliberation of the semi-annual report.
| Name of the director not present in person | Title of the director not present in person | Reason for not attending the meeting in person | Name of principal |
| Lu Qiguang | Director | On a business trip | Hu Xianghai |
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. Basic information of the company
1. Company profile
| Short form of the stock | SZCH, Shenliang B | Stock code | 000019, 200019 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Dai Bin | Chen Kaiyue, Liu Muya | ||
| Office add. | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen | 13/F, Tower A, World Trade Plaza, No.9 Fuhong Rd., Futian District, Shenzhen | ||
| Tel. | 0755-82027522 | 0755-82027522 | ||
| szch@slkg1949.com | chenky@slkg1949.com, liumy@slkg1949.com | |||
2. Main financial data and index
Whether information disclosure and preparation place changed in reporting period or not
□ Yes √ No
| The Period | Same period of last year | Changes over last year | |
| Operating revenue (RMB) | 4,740,428,222.10 | 4,782,167,732.69 | -0.87% |
| Net profit attributable to shareholders of the listed Company (RMB) | 210,738,686.12 | 203,168,850.61 | 3.73% |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 196,760,081.80 | 198,195,100.05 | -0.72% |
| Net cash flow arising from operating activities (RMB) | 9,610,361.15 | -389,429,629.75 | 102.47% |
| Basic earnings per share (RMB/Share) | 0.1828 | 0.1763 | 3.69% |
| Diluted earnings per share (RMB/Share) | 0.1828 | 0.1763 | 3.69% |
| Weighted average ROE | 4.66% | 4.82% | -0.16% |
| End of the Period | End of last year | Changes over end of last year | |
| Total assets (RMB) | 7,028,727,913.52 | 6,775,067,275.86 | 3.74% |
| Net assets attributable to shareholder of listed Company (RMB) | 4,400,982,300.34 | 4,420,751,187.57 | -0.45% |
3. Amount of shareholders and particulars about shares holding
In Share
| Total common stock shareholders in reporting period-end | 63,329 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||
| Particulars about shares held top 10 shareholders | ||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shares hold | Amount of restricted shares held | Number of share pledged/frozen | |
| State of share | Amount | |||||
| Shenzhen Food Group Co., Ltd. | State-owned legal person | 63.79% | 735,237,253 | 669,184,735 | ||
| Shenzhen Agricultural Products Group Co., Ltd | State-owned legal person | 8.23% | 94,832,294 | 15,384,832 | ||
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 0.53% | 6,057,114 | 0 | ||
| Lin Junbo | Domestic nature person | 0.30% | 3,500,000 | 0 | ||
| Shanghai Ruiting Asset Management Co., Ltd.-Shanghai Ruiting Better Life No. 2 Private Equity Investment Fund | Other | 0.30% | 3,442,929 | 0 | ||
| Sun Huiming | Domestic nature | 0.30% | 3,436,462 | 0 | ||
| person | ||||||
| Gao Lizhi | Domestic nature person | 0.19% | 2,204,400 | 0 | ||
| Hu Xiangzhu | Domestic nature person | 0.18% | 2,079,000 | 0 | ||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 0.13% | 1,472,625 | 0 | ||
| Zhang Jianmin | Domestic nature person | 0.11% | 1,272,039 | 0 | ||
| Explanation on associated relationship among the aforesaid shareholders | Shenzhen SASAC directly holds 100% equity of Fude Capital, and holds 34% of Agricultural Products indirectly through Fude Capital; the Company was not aware of any related relationship between other shareholders above, and whether they belonged to parties acting in concert as defined by the Acquisition Management Method of Listed Company. | |||||
| Explanation on shareholders involving margin business (if applicable) | 1. Shareholder - Shanghai Ruiting Asset Management Co., Ltd.-Shanghai Ruiting Better Life No. 2 Private Equity Investment Fund holds 3,442,929 shares of the Company under customer credit trading secured securities account through Everbright Securities Co., Ltd., common account holds 0 shares, and 3,442,929 shares are held in total at end of the Period. During the reporting period, the credit trading secured securities account has 3,442,929 shares increased, and no change in the common account, shares held are increased 3,442,929 shares in total. 2. Shareholder Zhang Jianmin holds 1,272,039 shares of the Company under customer credit trading secured securities account through China Galaxy Securities Co., Ltd., common account holds 0 shares, and 1,272,039 shares are held by Zhang in total at end of the Period. During the reporting period, the credit trading secured securities account has 1,272,039 shares increased, and no change in the common account, shares held by Zhang are increased 1,272,039 shares in total. | |||||
4. Changes of controlling shareholders or actual controller
Controlling shareholder changed in the Period
□ Applicable √ Not applicable
Controlling shareholders had no change in reporting period.Actual controller changed in the Period
□ Applicable √ Not applicable
Actual controller 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. Corporate Bonds
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 dueNo
III. Discussion and analysis of the operation
1. Brief of the operation in Period
Dose the Company need to comply with disclosure requirements of the special industryNoDuring the reporting period, the sudden novel coronavirus epidemic brought unprecedented severe challenges tothe company. The company made every effort to promote the start of production, ensure the supply, andcoordinate the prevention and control of the epidemic and its operation and management. In accordance with theannual key work and strategic planning goals, the company took the reorganization and subsequent integrationand the reshaping of the company's strategy as the starting point and end point of operation and management, andwell completed the semi-annual goals and tasks.
1. Main business development
During the reporting period, based on its own advantages and industrial development, the company usedinformation technology to broaden product supply channels and transaction methods. Through the integration ofresources, the company enhanced the synergistic effect of the industrial chain to create a new pattern in the grain,oil and food industry. The company continued to focus on the main business of grain and oil, and achieved steadydevelopment in main business by actively improving the supply chain, extending the industrial chain, upgradingthe value chain, and completing grain and oil supply services with quality and quantity.
2. Key projects
During the reporting period, the company focused on the strategy of “smart grain, oil and food supply chainquality service providers” and promoted the construction and operation of grain logistics nodes projects, andachieved the strategic goals for the first half of the year. The grain logistics and terminal supporting project ofSZCG Dongguan Grain Logistics Node Project, the CDE warehouse project, the food deep processing project andthe first-phase terminal project have all been basically completed. The Northeast Grain Source Base Project hasaccelerated the construction of the second phase project of the Grain Source Base. The 150,000-ton storage mainproject of the first phase of the Northeast Grain Source Base Project has been officially put into use.
3. Continuous innovation and development
The company has formed an innovative R&D system centered on the SZCG Research Institute, with the keysupports of SYDATA, Flour Company Product R&D Center, Doximi Quality Inspection R&D Department, SZCGReserve Branch Technology Center, and Tea Product and Technology R&D Center. Up to now, the company hasapplied for and obtained a total of 90 patents and owns 23 software copyrights.During the reporting period, the company ensured the sustainable and healthy development of the company byincreasing the application of informatization innovation results and enhancing the efficiency of operation andmanagement.
4. Other key tasks
(1) During the reporting period, continue to improve corporate governance. In accordance with the new regulatoryrequirements and relevant regulations and procedures, the company completed the combination and revision of
the internal systems and further enhanced the management effectiveness of the company through various effectivemeasures.
(2) During the reporting period, the preparation of the "14th Five-Year" strategic plan was initiated. On thepremise of conscientiously implementing the goals and tasks of the "13th Five-Year Plan", the company combinedwith its actual conditions, closely focused on the "dual-zone driving effect", formulated the company's "14thFive-Year Plan" work plan, and scientifically proposed the development goals, work ideas, and key tasks of "14thFive-Year Plan" period.
(3) During the reporting period, the company continued to launch new products. Doximi has developed ahigh-quality formula rice "Black-faced Spoonbill"; Flour Company has launched a series of special flours for newproducts such as bread, steamed bread and moon cakes.
(4) During the reporting period, the company actively fulfilled its social responsibilities. The company helpedfight the epidemic by donating 5.1 million yuan to Hubei; implemented the policy of reducing rents and fees, andreducing or exempting rents totaling more than 16.5 million yuan for tenants who meet the requirements.
(5) During the reporting period, the company implemented the main responsibility for production safety.Resolutely implemented various safety requirements in place, and achieved five "0"s for production safetyaccidents, food safety accidents, fire safety accidents, personal injury accidents, and environmental pollutionaccidents.In first half of 2020, the company achieved a total operating income of 4,740,428,200 yuan, a decrease of 0.87%over the same period of the previous year; operating profit of 218,523,000 yuan, a decrease of 7.15% over thesame period of the previous year; net profit attributable to shareholders of listed companies was 210,738,700 yuan,an increase of 3.73% from a year earlier.
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
1. Changes of important accounting policies
| Content & reasons | Approval procedure | Note (Name and amount of report items that are significantly affected) |
| On July 5, 2017, the Ministry of Finance revised and issued the "Accounting Standards for Business Enterprises No. 14-Revenue" (No. CK [2017] 22). According to the requirements of the Ministry of Finance, for companies listed at home and abroad at the same time and companies listed abroad and adopting the International Financial Reporting Standards or Accounting Standards for Business Enterprises to prepare financial statements, it has been implemented since January 1, 2018; for other domestic listed companies, it has been implemented from January 1, 2020; for non-listed companies that implement the Accounting Standards for Bushiness Enterprises, it | Approved by the 7th Session of 10th BOD on 31 Dec. 2019 | This change in accounting policy did not cause a major change in the company’s revenue recognition method, and did not have a major impact on the company’s current and previous net profit, total assets and net assets. This change in accounting policy is a corresponding change made by the company in accordance with the latest accounting standards revised and promulgated by the Ministry of Finance. The changed accounting |
| will be implemented on January 1, 2021. According to the requirements of the above documents, the company made corresponding changes to its accounting policies. | policy is in compliance with relevant regulations and the actual situation of the company. |
2. Changes of important accounting estimate
There were no significant changes in accounting estimates during the reporting period.
(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
(3) Particulars about the change of consolidation range compared with the financial report of last fiscalperiod
□ Applicable √ Not applicable
The Company had no change of consolidation range in reporting period.