Stock Code: 000019, 200019 Public Notice No.: 2019- 55Short Form of the Stock: SZCH, Shenliang B
SHENZHEN CEREALS HOLDINGS 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 annual report that published on media appointed byCSRC.All Directors are attended the Board Meeting for deliberation of this Report.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 | Du Jianguo | 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 | ||
| dujg@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
Reasons for retroactive adjustment or re-statementEnterprise combined under the same control
| The Period | Same period of last year | Changes over last year | ||
| Before adjustment | After adjustment | After adjustment | ||
| Operating revenue (RMB) | 4,782,167,732.69 | 136,721,215.40 | 4,434,688,646.82 | 7.84% |
| Net profit attributable to shareholders of the listed Company (RMB) | 203,168,850.61 | -18,246,639.07 | 202,779,343.34 | 0.19% |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 198,195,100.05 | -18,884,920.69 | -18,884,920.69 | 1,149.49% |
| Net cash flow arising from operating activities (RMB) | -389,429,629.75 | 9,795,470.07 | 52,861,245.30 | -836.70% |
| Basic earnings per share (RMB/Share) | 0.1763 | -0.0367 | 0.1759 | 0.23% |
| Diluted earnings per share (RMB/Share) | 0.1763 | -0.0367 | 0.1759 | 0.23% |
| Weighted average ROE | 4.82% | -1.95% | 5.06% | -0.24% |
| End of the Period | End of last year | Changes over end of last year | ||
| Before adjustment | After adjustment | After adjustment | ||
| Total assets (RMB) | 6,432,513,092.25 | 1,040,484,135.20 | 6,468,951,793.87 | -0.56% |
| Net assets attributable to shareholder of listed Company (RMB) | 4,260,480,115.67 | 928,673,938.26 | 4,172,502,535.11 | 2.11% |
3. Amount of shareholders and particulars about shares holding
In Share
| Total common stock shareholders in reporting period-end | 54,313 | 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 Fude State-Owned Capital Operation Co., Ltd. | State-owned legal person | 63.79% | 735,237,253 | 669,184,735 | ||
| Shenzhen Agricultural Products Co., Ltd | State-owned legal person | 8.23% | 94,832,294 | 15,384,832 | ||
| Sun Huiming | Domestic nature person | 0.30% | 3,436,462 | 0 | ||
| Bohai Securities Co., Ltd. | State-owned | 0.26% | 2,980,500 | 0 | ||
| legal person | ||||||
| Hu Xiangzhu | Domestic nature person | 0.24% | 2,800,000 | 0 | ||
| Lin Junbo | Domestic nature person | 0.17% | 2,000,000 | 0 | ||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 0.13% | 1,472,625 | 0 | ||
| Li Qian | Domestic nature person | 0.11% | 1,309,661 | 0 | ||
| Li Yongqi | Domestic nature person | 0.10% | 1,099,205 | 0 | ||
| Cai Congda | Domestic nature person | 0.09% | 1,080,051 | 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) | Shareholder Li Yongqi holds 1,097,205 shares of the Company under customer credit trading secured securities account through Xingye Securities Co., ltd, common account holds 2,000 shares, and 1,099,205 shares are held by Li in total at end of the Period. During the reporting period, the credit trading secured securities account has 9,100 shares decreased, and 100 shares increased in the common account, shares held by Li are decreased 9,000 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 dueNoIII. 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, according to the annual key work and strategic planning objectives, the company focused on thepost-restructuring integration development and corporate strategy reshaping, and effectively exerted the leading role of party building,and implemented the reform requirements of “Double Hundred Actions” throughout the various key work. The main economicindicators in the first half of the year have been completed well, the quality of main business development has been improved, theconstruction of strategic projects has been steadily advanced, and the internal management and control level has been furtherimproved.
1. Main business development
During the reporting period, the companybased on its own advantages and industrial development, used information technology, innovated and opened up the grain and oilproducts supply channels and trading methods, created a new pattern for tea and food business industry, built a multi-group andmulti-channel food supply chain and service network, expanded the effective supply of medium- and high-end grain, oil, and food,and strived to meet people's needs of "quality, diversity, nutrition, health, green, and convenience", and promoted the transformationof grain and oil products from "eat full" to "eat well".As the “grain security” project and “rice bag” in Shenzhen, the company completed the government grain and oil reserve service withquality and quantity guaranteed during the reporting period, the monthly average grain reserve was 1.065 million tons, and themonthly average oil reserve was 12,100 tons, which guaranteed the sufficient grain and oil supply and stable price in Shenzhenthrough the balanced rotation of grain and oil.During the reporting period, the company integrated and reconstructed the deep processing of tea and natural plants, and allocated thestaff. Through integration, some businesses initially achieved stop loss or turnaround goals.
2. Key projects
During the reporting period, the construction and operation of the company's Dongguan grain logistics node progressed smoothly.The construction of grain logistics and terminal supporting projects, CDE warehouse project, food deep processing projects and thefirst phase of the wharf have been steadily advanced according to the plan and progress. The international foods wharf loaded andunloaded 128 vessels with a turnover of 180,000 tons. The subordinate Dongguan logistics company promoted the establishment ofsafety production standardization and achieved results, and was awarded the second-level enterprise of safety productionstandardization.During the reporting period, the company's northeast grain source base project achieved “breaking ice”. In order to speed up theimplementation of the “North Grain to the South, South Grain for Storage in North” strategy, the company set up the infrastructureoffice of the Northeast Grain Source Project to accelerate the construction of the grain source base project. In June, the main projectof the first phase of the Northeast Grain Source Base Project of 150,000 tons has been started.
During the reporting period, the company focused on promoting grain and oil platform transactions. At the 2
ndChina Grain TradeConference, “www.zglsjy.com.cn” further expanded the market influence and expanded new customers to bid and list trading on thebasis of serving internal customers. As of June, the “www.zglsjy.com.cn” had a trading volume of 2.2 million tons.
3. Continuous innovation and development
During the reporting period, the company improved the efficiency of its operational management by increasing the application ofinformatization innovation results to ensure the sustainable and healthy development of enterprise. At present, the innovative R&Dsystem with Shenliang research institute as the core and with the far-reaching data, the product research and development center offlour company, the duoximi quality inspection R&D department, the technology center of reserve branch, the tea product andtechnology research and development center as the key supports has been focusing on the innovation and research and developmentof informatization projects, guided by the operational management needs and the development of the industry's most cutting-edgetechnology, planed and completed 14 informatization projects such as company management and control and innovation managementplatform. Up to now, the company has 69 patents and 23 software copyrights.
4. Other key tasks
(1) During the reporting period, the company completed the organizational restructuring, completed the changes of company name,business scope, registered capital and securities short name, and completed the reelection of the board of directors, the board ofsupervisors and senior management personnel. In accordance with the new regulatory requirements and relevant regulations andprocedures, the company completed the combination and revision of the internal systems to promote the improvement of corporategovernance, and further enhanced the management effectiveness of the company through various effective measures.
(2) During the reporting period, the company implemented the relevant requirements of the “Double Hundred Actions” state-ownedenterprise reform, further expanded the compensation system and incentive and restraint mechanism, and completed the overallmarket-based selection and employment of the management teams of some subordinate units, and promoted the rotation exchange ofkey position talents, and further optimized the company's talent echelon construction.
(3) During the reporting period, the company further strengthened fund management and control, and in accordance with thecentralized management mode of “internal bank” funds, promoted the online reporting platform, and effectively supervised theexpense reimbursement, capital expenditure and operating expenses of the company headquarters and subordinate units. At the sametime, the company further improved the CBS fund management information system function, and fully opened the bank-corporatedirect linkage of 9 banks to realize the system supervision of banks and accounts. During the reporting period, the company promotedthe subordinate units to optimize the structure of the debts and achieved remarkable results.
(4) During the reporting period, the company built a new pattern of safe production, further strengthened the concept of safedevelopment, strictly implemented the responsibility system for production safety, consolidated the foundation of safety management,investigated hidden dangers and immediately rectified them, and became the first enterprise in the municipal state-owned assetssystem to complete the “double” prevention mechanisms and safety standardization construction. The company closely followed thetheme of “preventing risks, eliminating hidden dangers, and restraining accidents”, and has comprehensively launched the “SafeProduction Month” activities.In the first half of 2019, the company achieved a total operating income of RMB 4,782,167,700, an increase of 7.84% over the sameperiod of the previous year (after restructuring); operating profit of RMB 235,345,700, an increase of 7.38% over the same period ofthe previous year (after restructuring); net profit attributable to shareholders of listed companies was RMB 203,168,900, an increaseof 0.19% over the same period of the previous year (after restructuring).
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
(i) 1. Implementation of the Accounting Standards for Business Enterprise No. 22- Recognition and Measurement of FinancialInstruments, Accounting Standards for Business Enterprise No. 23- Transfer of Financial Assets, Accounting Standards for BusinessEnterprise No. 24- Hedge Accounting and Accounting Standards for Business Enterprise No. 37- Presentation of FinancialInstruments (2017 Revised), and in 2017, the Ministry of Finance revised the Accounting Standards for Business Enterprise No. 22-Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprise No. 23- Transfer of FinancialAssets, Accounting Standards for Business Enterprise No. 24- Hedge Accounting and Accounting Standards for Business EnterpriseNo. 37- Presentation of Financial Instruments. The revised standards stipulate that for financial instruments that have not beenderecognized on the first implementation date, if the previous recognition and measurement are inconsistent with the requirements ofthe revised standards, they shall be retrospectively adjusted. If the data relating to the comparative financial statements in prior periodare inconsistent with the requirements of the revised standards, no adjustment is required. The Company will adjust the retainedearnings and other comprehensive income at the beginning of the year due to the cumulative impact of retrospective adjustment, themain impacts of the implementation of the above standards are as follows: (1) Due to the change in the name of the report item, “thefinancial assets measured at fair value and whose changes are included in the current profit and loss” are reclassified as “tradingfinancial assets”, financial assets measured at fair value and whose changes are included in the current profit and loss have a decreaseof RMB 1,124,927.96; and the trading financial assets have an increase of RMB 1,124,927.96; (2) the available-for-sale equityinstrument investments are reclassified as the “financial assets measured at fair value and whose changes are included in the currentprofit and loss”. Available-for-sale financial assets have a decrease of RMB 57,500.00; other non-current financial assets have anincrease of RMB 57,500.00.
2. Implementation of the Ministry of Finance issued the Notice on Revision and Issuance of 2019 Financial Statement Format forGeneral Corporate. On 30 April 2019, the Ministry of Finance issued the Notice on Revision and Issuance of 2019 FinancialStatement Format for General Corporate (Cai Kuai [2019] No.6), format of the financial statement has been revised. Main impact forimplementation of the above mentioned regulations: in balance sheet: the “Note receivable and account receivable” divided into“Note receivable” and “Account receivable”; “Note payable and account payable” divided into “Note payable” and “Accountpayable”; the comparison data are adjusted accordingly. “Note receivable and account receivable” divided into “Note receivable” and“Account receivable”, current amount of “Note receivable” was RMB 350,756.64 while RMB 1,027,635.04 at last period; the“Account receivable” has RMB617,831,167.71 in the period while RMB 473,646,886.64 at last period; “Note payable and accountpayable” divided into “Note payable” and “Account payable”, current amount of “Account payable” was RMB 171,201,542.03 whileRMB 472,738,283.80 at last period. The item of "credit impairment loss" is set up in the Income Statement. The comparison data willnot be adjusted. The current amount of "credit impairment loss" is RMB 5,143,559.77.
(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.
SHENZHEN CEREALS HOLDINGS CO., LTD.
Chairman: Zhu Junming
27 August 2019