Stock Code: 000020 200020 Public Notice No.: 2022-44Short Form of the Stock: SHEN HUAFA-A SHEN HUAFA-B
Shenzhen Zhongheng Huafa Co., Ltd.The Third Quarterly Report for 2022
The Company and whole members of the BOD guarantee that the information disclosed is true,accurate and complete, and there are no any fictitious records, misleading statements or importantomissions.Important content reminder:
1. Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion ofthe whole contents.
2. Principal of the Company, Person in Charge of Accounting Works and Person inCharge of Accounting Organ (Accounting Officer) hereby confirm that the FinancialReport of the Third Quarterly Report is authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes √No
I. Main financial data
(i) Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
| Current period | Increase/decrease in the period compared with the same period of the previous year | Year-begin to period-end | Increase/decrease from year-begin to period-end compared with the same period of the previous year | |
| Operating income (Yuan) | 163,496,024.99 | -22.84% | 517,642,945.80 | -14.23% |
| Net profit attributable to shareholders of the listed company (Yuan) | -282,038.65 | -124.72% | 8,524,746.45 | 5.07% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (Yuan) | -1,079,915.71 | -288.72% | 3,071,013.23 | -58.12% |
| Net cash flow arising from operating activities (Yuan) | — | — | 78,036,564.86 | 424.00% |
| Basic earnings per share (Yuan /Share) | -0.0010 | -125.00% | 0.0301 | 4.51% |
| Diluted earnings per share (Yuan /Share) | -0.0010 | -125.00% | 0.0301 | 4.51% |
| Weighted average ROE | -0.08% | -0.41% | 2.45% | 0.28% |
| End of current period | End of previous year | Increase/decrease at the period-end compared with the end of the previous year | ||
| Total assets (Yuan) | 613,640,331.12 | 659,933,225.57 | -7.01% | |
| Net assets attributable to shareholder of listed company (Yuan) | 351,975,385.76 | 343,450,639.31 | 2.48% | |
(ii) Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
Unit: Yuan
| Item | Amount for the period | Amount from year-begin to period-end | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 35,802.67 | 825,110.93 | |
| Government subsidy recorded in current | 446,257.00 | 4,961,580.81 |
| gains/losses (except those closely related to the Company’s normal operation, and those continuously enjoyed on a fixed or quantitative basis with certain standards in accordance with national policy regulations) | |||
| Gains/losses of entrusting others to invest or manage assets | 188,158.81 | 368,247.00 | |
| Other non-operating income and expenses other than the above | 291,290.53 | 316,557.14 | |
| 减：所得税影响额 | 163,631.95 | 1,017,762.66 | |
| Total | 797,877.06 | 5,453,733.22 | -- |
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit (gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss(iii) Particulars about changes in items of main accounting data and financial index and explanations ofreasons
√ Applicable □Not applicable
| Item | January-September 2022 | January-September 2021 | Changes ratio | Reason |
| Monetary fund | 84,034,727.69 | 34,426,043.11 | 144.10% | Effectively accelerate inventory turnover and reduction in capital occupation |
| Note receivable | 66,137,240.28 | 105,922,317.60 | -37.56% | Less revenue and notes receivable in the current period |
| Receivable financing | 226,046.05 | 500,000.00 | -54.79% | Reduction in the amount of bank acceptance |
| Accounts paid in advance | 15,255,113.19 | 7,996,570.95 | 90.77% | The raw materials of constant hair display module of Hengfa Co., Ltd.are mostly prepaid. September increases prepayment for new orders in October |
| Inventories | 59,245,974.71 | 90,585,670.27 | -34.60% | Effectively accelerate inventory turnover and capital occupation |
| Other current assets | - | 3,732,033.86 | -100.00% | VAT withholding reduction |
| Construction in progress | 1,055,000.00 | 740,000.00 | 42.57% | Continuing investment in Gongming Electronic City Renovation Project |
| Right-of-use assets | 130,811.70 | 209,298.72 | -37.50% | Amortization of property using rights |
Short-term loans
| Short-term loans | 8,874,750.00 | 26,480,857.00 | -66.49% | Loan Reduction of Hengfa Co., Ltd. |
| Note payable | 32,770,753.77 | 21,554,981.30 | 52.03% | Increase in bill Settlement Ratio |
| Other current liabilities | 36,458,028.55 | 64,644,280.61 | -43.60% | Less endorsed undue paper |
| Lease liability | 71,938.12 | 115,101.00 | -37.50% | Amortization of Lease liability |
| Non-current liabilities due within one year | 12,104,400.61 | 61,104,400.61 | -80.19% | Return a long-term loan that is due in one year |
| Long-term loans | 40,000,000.00 | New long-term loan this year | ||
| Item | September 30, 2022 | September 30, 2021 | Changes ratio | Reason |
| Tax and extras | 2,969,226.43 | 2,180,093.13 | 36.20% | Decrease in Retained VAT this year.Increase in tax and extra charges |
| Financial expense | 947,222.43 | 6,725,414.16 | -85.92% | Currency fluctuations |
| other income | 4,961,580.81 | 345,453.35 | 1336.25% | Increased in received government subsidies this year |
| Investment income | 368,247.00 | 238,661.58 | 54.30% | Increase in financial management this year |
| Losses of devaluation of asset | 0 | -1,350,000.00 | -100% | Decrease in stock this year and effective digestion of waste material |
| Income from assets disposal | 825,110.93 | 21,059.60 | 3817.98% | Fixed Asset Disposal in the Closed-down Business Section |
| Less: Non-operating expense | 55,821.78 | 219,887.56 | -74.61% | Breach of contract damages occurred in the previous period |
| Write-back of tax received | 2,843,031.08 | 2,159,861.95 | 31.63% | Increase in Export tax rebate |
| Taxes paid | 26,493,389.34 | 19,266,205.32 | 37.51% | Increase in the payment of VAT and additional |
| Net cash received from disposal of fixed, intangible and other long-term assets | 3,858,165.26 | 100,950.00 | 3721.86% | Fixed Asset Disposal in the Closed-down Business Section |
| Other cash received concerning investing activities | 105,000,000.00 | 0 | - | Financial redemption |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,697,030.83 | 3,919,845.12 | -56.71% | Decrease in fixed asset input this year |
| Other cash paid concerning investing activities | 105,000,000.00 | 0 | - | Wealth-management products purchasing |
| Cash paid for dividend and profit distributing or interest paying | 3,758,805.15 | 5,510,317.28 | -31.79% | Decrease in loans and interest this year |
II. Shareholders Information(i) Total number of common shareholders and preference shareholders with voting rights recovered andtop ten common shareholders
In Share
| Total common shareholders at the end of report period | 22,139 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | |||
| Top ten shareholders | ||||||
| Shareholder’s name | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Information of shares pledged, tagged or frozen | |
| State of share | Amount | |||||
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd | Domestic non-state-owned legal person | 42.13% | 119,289,894 | 0 | Frozen | 119,289,894 |
| Pledged | 116,100,000 | |||||
| SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | ||
| GOOD HOPE CORNER INVESTMENTS LTD. | Overseas legal person | 2.50% | 7,072,000 | 0 | ||
| Changjiang Securities Brokerage (Hongkong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | ||
| Guoyuan Securities Brokerage (Hong Kong) Limited | Overseas legal person | 1.37% | 3,870,117 | 0 | ||
| Li Zhongqiu | Overseas nature person | 1.00% | 2,830,000 | 0 | ||
| He Wei | Domestic nature person | 0.75% | 2,111,019 | 0 | ||
| Yao Ming | Domestic nature person | 0.63% | 1,788,005 | 0 | ||
| Shengyin Investment Co., Ltd. | Overseas legal person | 0.50% | 1,408,600 | 0 | ||
| Wang Ying | Domestic nature person | 0.40% | 1,134,400 | 0 | ||
| Particular about top ten shareholders with un-restrict shares held | ||||||
| Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | ||||
| Type | Amount | |||||
| Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd | 119,289,894 | RMB common share | 119,289,894 | |||
| SEG (HONG KONG) CO., LTD. | 16,569,560 | Domestically listed foreign shares | 16,569,560 | |||
| GOOD HOPE CORNER INVESTMENTS LTD. | 7,072,000 | Domestically listed foreign shares | 7,072,000 | |
| Changjiang Securities Brokerage (Hongkong) Co., Ltd. | 5,355,249 | Domestically listed foreign shares | 5,355,249 | |
| Guoyuan Securities Brokerage (Hong Kong) Limited | 3,870,117 | Domestically listed foreign shares | 3,870,117 | |
| Li Zhongqiu | 2,830,000 | Domestically listed foreign shares | 2,830,000 | |
| He Wei | 2,111,019 | Domestically listed foreign shares | 2,111,019 | |
| Yao Ming | 1,788,005 | Domestically listed foreign shares | 1,788,005 | |
| Shengyin Investment Co., Ltd. | 1,408,600 | Domestically listed foreign shares | 1,408,600 | |
| Wang Ying | 1,134,400 | Domestically listed foreign shares | 1,134,400 | |
| Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. Shengyin Investment Co., Ltd. is an overseas wholly-owned subsidiary of Wuhan Zhongheng group.The Company neither knew whether there exists associated relationship among the other shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | |||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferredstock held
□ Applicable √ Not applicable
III. Explanation on other significant events
√ Applicable □ Not applicable
(1) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & TechnologyIndustrial Group Co., Ltd (hereinafter referred to as Wuhan Zhongheng Group) on 29 April 2009 (details werereferred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of theCompany (namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district,Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels wereA627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of planfor 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and
joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the firstextraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area atGongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Groupshall obtain the corresponding compensatory consideration for removal from the respectively owned project plotsand the respectively contributed and constructed above-ground buildings before the land development, it isestimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting of2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewaland the progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming NewDistrict, Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of theupdated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for thecooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming NewDistrict” on 26 August 2015, and “Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as“Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred toas “Vanke Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation ofurban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) hasgiven a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application ofShenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “noexecution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminatethe enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed byoutsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen IntermediatePeople’s Court to resume execution.
In April 2020, Zhongheng Semiconductor sued the company to Shenzhen Intermediate People’s Court, andrequested the company to transfer the above mentioned two pieces of lands and compensate the economic loss of52 million yuan, the first and second trial judgments reject the Semiconductor’s appeal; ZhonghengSemiconductor sued the Company and the invalid of “Agreement on the cooperation of urban renewal project ofthe updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” signed by WuhanZhongheng Group Company and Vanke, the second trial rejects all claims of Zhongheng Semiconductor. Progress
of the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016,on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018, 7 Sept.2018, 21 Apr. 2020, 3 Jun, 2021, 22 Jul. 2021 and Mar. 5, 2022 respectively.
(2) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to ChinaMerchants Securities Assets Co., Ltd. with due date of 31 December 2016. On 1 Feb. 2016, Wuhan ZhonghengGroup pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expiredon 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till endof this period released, controlling shareholder still not removed the pledge and the Company has apply by letter,relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in noticereleased on Juchao website date 2 Feb. 2018.
In March 2021, Wuhan Zhongheng Group received the judgment on case of “pledged securities repurchasedispute” brought by China Merchants Securities Assets Management Co., Ltd from High People’s Court ofGuangdong Province. Wuhan Zhongheng Group appealed to the Supreme People’s Court against the decision.Found more in notice released on Juchao Website dated March 19, 2021.
(3) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judiciallyfrozen by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") onSeptember 27, 2016, which were frozen again by the Shenzhen Intermediate People's Court on December 14,2018, with a frozen period of 36 months; the remaining 2,800,000 shares were frozen by the ShenzhenIntermediate People's Court on May 29, 2019, and were frozen again by the Higher People’s Court of GuangdongProvince on July 5, 2019. For details, please refer to the company’s announcements published on Juchao Websitedated October 27, 2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(4) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “SupplementalAgreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and WuhanZhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due todifferences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to theShenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’sname and part of our company dormitories, please refer to “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released on Juchao Website datedNovember 14, 2018 and March 6, 2019. In November 2019, the Shenzhen Court of International Arbitration ruledthat the company and Wuhan Zhongheng Group paid the corresponding fees. According to the relevant agreementof the “Entrusted Agency Contract” and “Supplementary Agreement” signed by the three parties, loss of the
ruling in the case shall be fully borne by Wuhan Zhongheng Group, therefore, it has no impact on the profit of theCompany. Found more on “Other Announcements on the Progress Involving Litigation and Arbitration”(Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
(5) Business of the Company - Styrofoam is a traditional manufacturing industry. The industry has stepping intothe maturity with severe overcapacity, the oversupply leads to a low gross margin and downward trend ofprofitability of the Company’s products. The “proposal to shut down the Styrofoam business from wholly-ownedsubsidiary” was deliberated and approved by the third interim meeting of BOD of 2022. Closure of the plant isprogressing steadily.
IV. Quarterly financial statements(i) Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
Unit: Yuan
| Item | September 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary fund | 84,034,727.69 | 34,426,043.11 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | 66,137,240.28 | 105,922,317.60 |
| Account receivable | 116,458,797.19 | 128,675,327.97 |
| Receivable financing | 226,046.05 | 500,000.00 |
| Accounts paid in advance | 15,255,113.19 | 7,996,570.95 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 5,086,075.03 | 4,520,412.70 |
| Including: Interest receivable | 0.00 | |
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 59,245,974.71 | 90,585,670.27 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 3,732,033.86 | |
| Total current assets | 346,443,974.14 | 376,358,376.46 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment |
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | ||
| Investment in other equity instrument | ||
| Other non-current financial assets | ||
| Investment real estate | 44,895,530.10 | 46,191,777.80 |
| Fixed assets | 174,130,318.28 | 187,889,261.50 |
| Construction in progress | 1,055,000.00 | 740,000.00 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | 130,811.70 | 209,298.72 |
| Intangible assets | 37,883,734.72 | 39,171,573.09 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,473,066.07 | 1,691,257.89 |
| Deferred income tax asset | 7,627,896.11 | 7,681,680.11 |
| Other non-current asset | ||
| Total non-current asset | 267,196,356.98 | 283,574,849.11 |
| Total assets | 613,640,331.12 | 659,933,225.57 |
| Current liabilities: | ||
| Short-term loans | 8,874,750.00 | 26,480,857.00 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 32,770,753.77 | 21,554,981.30 |
| Account payable | 75,725,264.50 | 88,529,478.96 |
| Accounts received in advance | 0.00 | |
| Contractual liability | 786,643.80 | 736,355.70 |
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 4,717,302.50 | 3,844,381.07 |
| Taxes payable | 14,473,118.97 | 14,657,117.69 |
| Other account payable | 31,674,585.36 | 30,448,913.14 |
| Including: Interest payable | 112,741.09 | 113,080.26 |
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | 12,104,400.61 | 61,104,400.61 |
| Other current liabilities | 36,458,028.55 | 64,644,280.61 |
| Total current liabilities | 217,584,848.06 | 312,000,766.08 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | 40,000,000.00 | |
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | 71,938.12 | 115,101.00 |
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 801,159.18 | 801,159.18 |
| Deferred income | 3,207,000.00 | 3,565,560.00 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 44,080,097.30 | 4,481,820.18 |
| Total liabilities | 261,664,945.36 | 316,482,586.26 |
| Owner’s equity: | ||
| Share capital | 283,161,227.00 | 283,161,227.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 146,577,771.50 | 146,577,771.50 |
| Less: Inventory shares | 0.00 | |
| Other comprehensive income | ||
| Reasonable reserve | 0.00 | |
| Surplus public reserve | 77,391,593.25 | 77,391,593.25 |
| Provision of general risk | 0.00 | |
| Retained profit | -155,155,205.99 | -163,679,952.44 |
| Total owner’ s equity attributable to parent company | 351,975,385.76 | 343,450,639.31 |
| Minority interests | ||
| Total owner’ s equity | 351,975,385.76 | 343,450,639.31 |
| Total liabilities and owner’ s equity | 613,640,331.12 | 659,933,225.57 |
Legal Representative: Li ZhongqiuPerson in charge of accounting works: Chen ZhigangPerson in charge of accounting institute: Chuai Guoxu
2. Consolidated Profit Statement (from the year-begin to the period-end)
Unit: Yuan
| Item | Current period | Last period |
| I. Total operating income | 517,642,945.80 | 603,532,726.46 |
| Including: Operating income | 517,642,945.80 | 603,532,726.46 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 512,537,271.49 | 592,280,418.87 |
| Including: Operating cost | 457,223,464.54 | 525,693,924.66 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense |
| Tax and extras | 2,969,226.43 | 2,180,093.13 |
| Sales expense | 14,611,641.85 | 18,991,695.17 |
| Administrative expense | 29,913,230.86 | 33,036,011.08 |
| R&D expense | 6,872,485.38 | 5,653,280.67 |
| Financial expense | 947,222.43 | 6,725,414.16 |
| Including: Interest expenses | 4,246,764.09 | 5,977,916.47 |
| Interest income | 302,035.05 | 234,372.30 |
| Add: other income | 4,961,580.81 | 345,453.35 |
| Investment income (Loss is listed with “-”) | 368,247.00 | 238,661.58 |
| Including: Investment income on affiliated company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | 0.00 | -1,350,000.00 |
| Income from assets disposal (Loss is listed with “-”) | 825,110.93 | 21,059.60 |
| III. Operating profit (Loss is listed with “-”) | 11,260,613.05 | 10,507,482.12 |
| Add: Non-operating income | 372,378.92 | 394,744.60 |
| Less: Non-operating expense | 55,821.78 | 219,887.56 |
| IV. Total profit (Loss is listed with “-”) | 11,577,170.19 | 10,682,339.16 |
| Less: Income tax expense | 3,052,423.74 | 2,569,327.53 |
| V. Net profit (Net loss is listed with “-”) | 8,524,746.45 | 8,113,011.63 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 8,524,746.45 | 8,113,011.63 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 8,524,746.45 | 8,113,011.63 |
| 2.Minority shareholders’ gains and losses | ||
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other |
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 8,524,746.45 | 8,113,011.63 |
| Total comprehensive income attributable to owners of parent Company | 8,524,746.45 | 8,113,011.63 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.0301 | 0.0288 |
| (ii) Diluted earnings per share | 0.0301 | 0.0288 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan before combination,and realized 0.00 Yuan at last period for combined partyLegal Representative: Li ZhongqiuPerson in charge of accounting works: Chen ZhigangPerson in charge of accounting institute: Chuai Guoxu
3. Consolidated Cash Flow Statement (from the year-begin to the period-end)
Unit: Yuan
| Item | Current period | Last period |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 425,141,075.61 | 383,981,831.41 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and |
| investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 2,843,031.08 | 2,159,861.95 |
| Other cash received concerning operating activities | 9,511,449.99 | 13,230,159.40 |
| Subtotal of cash inflow arising from operating activities | 437,495,556.68 | 399,371,852.76 |
| Cash paid for purchasing commodities and receiving labor service | 258,731,249.86 | 291,924,059.89 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 43,707,955.83 | 54,527,895.49 |
| Taxes paid | 26,493,389.34 | 19,266,205.32 |
| Other cash paid concerning operating activities | 30,526,396.79 | 57,707,341.64 |
| Subtotal of cash outflow arising from operating activities | 359,458,991.82 | 423,425,502.34 |
| Net cash flows arising from operating activities | 78,036,564.86 | -24,053,649.58 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 351,648.64 | 275,579.90 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 3,858,165.26 | 100,950.00 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 105,000,000.00 | |
| Subtotal of cash inflow from investing activities | 109,209,813.90 | 376,529.90 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,697,030.83 | 3,919,845.12 |
| Cash paid for investment | ||
| Net increase of mortgaged loans | 0.00 | |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 105,000,000.00 | |
| Subtotal of cash outflow from investing activities | 106,697,030.83 | 3,919,845.12 |
| Net cash flows arising from investing activities | 2,512,783.07 | -3,543,315.22 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 76,609,277.00 | 86,967,694.00 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 76,609,277.00 | 86,967,694.00 |
| Cash paid for settling debts | 104,483,955.10 | 71,384,425.00 |
| Cash paid for dividend and profit distributing or interest paying | 3,758,805.15 | 5,510,317.28 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 108,242,760.25 | 76,894,742.28 |
| Net cash flows arising from financing activities | -31,633,483.25 | 10,072,951.72 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 692,819.90 | -495,777.96 |
| V. Net increase of cash and cash equivalents | 49,608,684.58 | -18,019,791.04 |
| Add: Balance of cash and cash equivalents at the period-begin | 32,802,562.90 | 60,968,053.58 |
| VI. Balance of cash and cash equivalents at the period-end | 82,411,247.48 | 42,948,262.54 |
(iii) Audit report
Whether the 3
rdquarterly report has been audited or not
□Yes √ No
The 3
rdquarterly report of the Company has not been audited.
Board of Directors ofShenzhen Zhongheng Huafa Co., Ltd.
October 25, 2022