First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2019
April 2019
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng
Huafa Co., Ltd (hereinafter referred to as the Company) and its directors,
supervisors and senior executives should guarantee the reality, accuracy and
completion of the quarterly report, there are no any fictitious statements,
misleading statements or important omissions carried in this report, and shall
take legal responsibilities, individual and/or joint.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
Li Zhongqiu, person in charge of the Company, Yang Bin, person in charger of
accounting works and Wu Ai’jie, person in charger of accounting organ
(accounting officer) hereby confirm that the Financial Statement of this
Quarterly Report is authentic, accurate and complete.
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
At the same period of last Changes of this period over
Current period
year same period of last year
Operating income (RMB) 143,921,648.63 171,620,013.62 -16.14%
Net profit attributable to shareholders of
258,233.98 307,367.89 -15.99%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 196,868.38 5,469.74 3,499.23%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
19,403,902.99 337,819.42 5,643.87%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0009 0.0011 -18.18%
Diluted earnings per share (RMB/Share) 0.0009 0.0011 -18.18%
Weighted average ROE 0.08% 0.10% -0.02%
Changes of this period-end
At the end of the reporting
At the end of last year over same period-end of last
period
year
Total assets (RMB) 579,621,386.06 617,090,153.46 -6.07%
Net assets attributable to shareholder of
324,226,234.72 323,968,000.74 0.08%
listed company (RMB)
Items and amount of non-recurring gains and losses
√ Applicable □ Not applicable
In RMB
Amount from year-begin to
Item Note
period-end
Gains/losses from the disposal of non-current asset (including the
-3,018.00
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
6,000.00
national standards, which are closely relevant to enterprise’s
business)
Gain or loss on the investment or management of assets 30,941.58
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Other non-operating income and expenditure except for the
37,200.00
aforementioned items
Less: impact on income tax 9,757.18
Total 61,365.60 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders at the end of this report period and top ten common shareholders
In shares
Total preference shareholders
Total common stock shareholders in with voting rights recovered at
24,818
reporting period-end end of reporting period (if
applicable)
Top ten shareholders
Amount of Number of share pledged/frozen
Shareholder’s Nature of Proportion of Amount of shares
restricted shares
name shareholder shares held held State of share Amount
held
Wuhan Domestic Pledged 116,100,000
Zhongheng non-state-owned 41.69% 118,044,194
Frozen 116,489,894
Group legal person
SEG (HONG Pledged
Overseas legal
KONG) CO., 5.85% 16,569,560
person Frozen
LTD.
GOOD HOPE Pledged
CORNER Overseas legal
4.49% 12,700,000
INVESTMENTS person Frozen
LTD
Changjiang Pledged
Securities
Overseas legal
Brokerage 1.89% 5,355,249
person Frozen
(Hongkong) Co.,
Ltd.
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Guoyuan Pledged
Securities Overseas legal
1.37% 3,870,117
Brokerage (Hong person Frozen
Kong) Limited
LI SHERYN Overseas legal Pledged
0.39% 1,092,000
ZHAN MING person Frozen
Domestic nature Pledged
Li Senzhuang 0.36% 1,022,260
person Frozen
Domestic nature Pledged
Han Yaming 0.31% 864,200
person Frozen
Domestic nature Pledged
Zhong Jiachao 0.30% 857,994
person Frozen
Overseas nature Pledged
BINGHU LIU 0.30% 840,313
person Frozen
Top ten shareholders with unrestricted shares held
Type of shares
Shareholder’s name Amount of unrestricted shares held
Type Amount
RMB common
Wuhan Zhongheng Group 118,044,194 118,044,194
share
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign 16,569,560
shares
Domestically
GOOD HOPE CORNER
12,700,000 listed foreign 12,700,000
INVESTMENTS LTD
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign 5,355,249
(Hongkong) Co., Ltd.
shares
Domestically
Guoyuan Securities Brokerage
3,870,117 listed foreign 3,870,117
(Hong Kong) Limited
shares
Domestically
LI SHERYN ZHAN MING 1,092,000 listed foreign 1,092,000
shares
Domestically
Li Senzhuang 1,022,260 listed foreign 1,022,260
shares
Han Yaming 864,200 Domestically 864,200
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
listed foreign
shares
RMB common
# Zhong Jiachao 857,994 857,994
share
Domestically
BINGHU LIU 840,313 listed foreign 840,313
shares
Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial
Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs to
Explanation on associated the consistent actor that are prescribed in Measures for the Administration of Disclosure of
relationship among the aforesaid Shareholder Equity Changes of Listed Companies. The Company neither knew whether there
shareholders 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 top 10 common Among the top ten shareholder, Zhong Jiachao holds 857,994 shares of the Company,
shareholders involving margin including 369,000 shares holding through credit account, a 43 percent takes in total shares of
business (if applicable) the company holding
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back
agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial
index and explanations of reasons
√Applicable □Not applicable
Item 2019-3-31 2018-1-1 Y-o-y changes Reasons of changes
Account paid in Part of account paid in advance for
advance 11,506,518.47 31,348,429.54 -63.29% material at end of last year
Amount contact between the enterprises
Other receivables 7,731,577.17 5,777,179.08 33.83% increased
Account received in Account of goods are received in advance
advance 246,190.47 159,528.60 54.32% from small customers
Item Jan.-March of 2019 Jan.-March of 2018 Y-o-y changes Reasons of changes
Taxes and surcharges 628,766.00 1,117,886.20 -43.75% Sales declined, than the taxes decreased
Income from Bank financial purchased in the period
investment 30,941.58 110,910.67 -72.10% declined
Received government grants at same
Non-operation income 44,300.00 512,000.00 -91.35% period last year
Non-operation Loss of assets disposal arising at same
expenditure 4,118.80 267,736.37 -98.46% period last year
Income tax expenses 84,349.95 158,156.45 -46.67% Sales declined, than the taxes decreased
Item Jan.-March of 2019 Jan.-March of 2018 Y-o-y changes Reasons of changes
Taxes paid 2,076,195.55 7,128,845.32 -70.88% Sales declined, than the taxes decreased
Cash received from Bank financial purchased in the period
investment income 30,941.58 110,910.67 -72.10% declined
Net cash received from
disposal of fixed,
intangible and other
long-term assets - 412,682.00 -100.00% Production equipment renew last period
Cash paid for
purchasing fixed,
intangible and other Purchased new production equipment for
long-term assets 1,991,100.36 3,851,816.62 -48.31% new workshop last period
Cash received from 39,255,469.21 131,532,341.95 -70.16% Short-term loans declined in the period
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
loans
Cash paid for settling Short-term loans repayment declined in
debts 51,413,400.63 131,560,722.31 -60.92% the period
Influence on cash and
cash equivalents due to
fluctuation in exchange
rate 65,528.58 -200,355.12 132.71% Impact of exchange rate fluctuations
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in the
announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (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 were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the
lands listed in the first batch of plan for 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 first extraordinary 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 at Gongming street, Guangming new district, Shenzhen”, specified that the
Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from the
respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land
development, it is estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total
consideration 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 held on September 11,
2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress of
related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen’”, the company has
signed the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street,
Guangming New District, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong
Ming Street, Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” with
Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “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 to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA, Shenzhen Vanke
applied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area,
Gong Ming Street, Guangming New District, Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitration court
holds hearings on 12 November 2016 and 13 May 2017. Shenzhen Court of International Arbitration (SCIA) has given a ruling in
August 2017. In February 2018, the company filed an application for repeal of arbitration to the Shenzhen Intermediate People’s
Court, the Shenzhen Intermediate People’s Court made a judgment on August 16, 2018 to reject the company’s claims. On August 29,
2018, the court accepted the compulsory execution application of Shenzhen Vanke, at present, the controlling shareholders are
actively communicating with the relevant parties for the solution. Progress of the case found more in the Notices released on Juchao
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
website (www.cninfo.com.cn) 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 and 7 Sept. 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants Securities
Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 30 June 2017.
on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with
due date of 31 December 2016. The above mentioned shares are deferred for repurchase of stock pledge by Wuhan Zhongheng
Group; pledge expired on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till
end of 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 notice released on Juchao website
(www.cninfo.com.cn) date 2 Feb. 2018.
(iii) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accounting for 41.14% of total
share capital. The above shares were judicially sealed on 27 September 2016, shares freeze from 27 September 2016 to 13 September
2021; and on 14 December 2018, shares are waiting freeze by Shenzhen Intermediate’s Court with period of 36 months in freeze.
Details are set out in the announcement published at Juchao information website (www.cninfo.com.cn) on 27 October 2016 and 11
Jan. 2019.
(iv) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as \"Jifang Investment\")
signed the \"Shenzhen Housing Leasing Contract\" and the \"Supplemental Agreement on Leasing Contract\", which were canceled on
February 5, 2016. As Jifang Investment occupied the site, and defaulted rent, management fee and water and electricity bills in the
long term, in order to safeguard the legitimate rights and interests, Huafa Property submitted a request for arbitration to Shenzhen
Arbitration Commission on March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration
Commission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at
www.cninfo.com.cn by the company on November 8, 2016. The site occupied by Jifang was collected in May 2018.
(v) Commitments of Major shareholder to Increase Shareholding
On November 20, and November 28, 2017, the controlling shareholders respectively made commitments to increase the shareholding
of 2.83 million shares of the company’s B Shares and no less than 2.8 million shares of the company’s A Shares, with a commitment
period of 6 months. After that, controlling shareholders apply for two deferrals. As of the disclosure date of this report, it’s still in the
commitment fulfillment period, and the commitment has not been fulfilled.
(vi) Director and deputy chairman of the Company Mr. Zhang Guangliu resigned his job as director, deputy chairman and member of
the committee of the Board of the Company for job mobility. Nominated by second largest shareholder SEG (HK) Co., Ltd, Mr. Gao
Jianbo was elected as the director of 9th BOD of the Company with office same as the session of BOD.
Summary of important issues Disclosure date Interim report disclosure index
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
Type of Commitment Commitment
Commitments Promise Content of commitments Implementation
commitments date term
The enterprise and its subsidiaries will
not participate directly or indirectly in
operation of the business with
Implement
competitive of Shen Huafa and its
Wuhan since 12 April
controlling subsidiary concerned, and In normal
Zhongheng 2007-03-29 2007
not to damage the interest of the Shen implementing
Group throughout
Huafa and its controlling subsidiary by
the year
making use of the potential
controlling-ship of the Shen Huafa
either
The enterprise and its subordinate
enterprise shall avoid a related
transaction as far as possible with Shen
Huafa and its controlling subsidiary, as
for the related dealings occurred
inevitable or have reasonable cause, the
Commitments
enterprise promise to follow the
for share Implement
principle of fair-ness, justice and
reform Wuhan since 12 April
open-ness, signed the agreement in line In normal
Zhongheng 2007-03-29 2007
with the laws, perform legal program, implementing
Group throughout
fulfill information disclosure obligation
the year
and relevant approval procedures
according to the relevant laws,
regulations and “Listing Rules” of the
Shenzhen Stock Exchange, guarantee
not to damage the legal interest of Shen
Huafa and its shareholders through
related transactions
After acquisition and assets
Implement
restructuring, guarantee to have an
Wuhan since 12 April
independent staff, owns independent In normal
Zhongheng 2007-03-29 2007
and completed assets, and independent implementing
Group throughout
in aspect of business, financial and
the year
institution from Shen Huafa
Commitments
in report of
acquisition or
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
equity change
Commitments
in assets
reorganization
Commitments
make in initial
public offering
or re-financing
Equity
incentive
commitment
Regarding the lawsuit with Shenzhen
Vanke: 1. If the arbitration judges
Shenzhen Vanke to win, the arbitration
losses caused by the contract disputes Implemented
Wuhan
shall be undertaken by Wuhan since 20 In normal
Zhongheng 2016-12-20
Zhongheng Group in full; 2. The December implementing
Group
contingent losses and risks arising from
the termination of relevant contracts
shall be undertaken by Wuhan
Zhongheng Group in advance.
Ended as the
reporting
period, the
Other Promise to increasing shares of holding promises
Wuhan In 6 months
commitments as 2.83 million shares of B-stock of the during
for medium Zhongheng 2017-11-20 since the date
and small Company in 6 months since the letter performance
Group of notification
shareholders delivery period has not
been
implemented
yet
Ended as the
reporting
period, the
promises
Wuhan Promise to increasing shares of holding n 6 months
during
Zhongheng as 2.8 million shares of A-stock at least 2017-11-28 since the date
performance
Group in 6 months since the letter delivery of notification
period and
part of the
commitment
implemented
Completed on Yes
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
time (Y/N)
If the
commitments
is not fulfilled
on time, shall
Not applicable
explain the
specify reason
and the next
work plan
IV. Predict of the business performance from January to June 2019
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be
loss or have great changes comparing with the same period of last year
□Applicable √Not applicable
V. Securities Investment
□ Applicable √ Not applicable
No security investment in the Period.
VI. Derivative investment
□ Applicable √ Not applicable
No derivative investment in the Period.
VII. Registration form for receiving research, communication and interview in the report
period
√Applicable □ Not applicable
Date Method Type of investors Basic situation index of investigation
2019-01-03 Telephone communication Individual N/A
VIII. Guarantee outside against the regulation
□Applicable √Not applicable
The Company has no external security against the rules in the Period.
IX. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
2019-03-31
In RMB
Items 2019-3-31 2018-12-31
Current assets:
Monetary fund 36,204,765.03 34,108,330.27
Settlement provisions
Capital lent
Transactional financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable and account
155,349,020.71 185,983,351.22
receivable
Including: Notes receivable 27,134,521.33 69,185,516.71
Accounts receivable 128,214,499.38 116,797,834.51
Account paid in advance 11,506,518.47 31,348,429.54
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 7,731,577.17 5,777,179.08
Including: Interest receivable
Dividends receivable
Buying back the sale of financial
assets
Inventories 70,786,993.64 62,973,909.38
Contractual assets
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Assets held for sale
Non-current assets maturing within
one year
Other current assets 42,314.10 59,370.18
Total current assets 281,621,189.12 320,250,569.67
Non-current assets:
Loans and payments on behalf
Debt investment
Available-for-sale financial assets
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 50,249,240.29 50,681,322.86
Fixed assets 186,259,240.27 188,083,873.38
Construction in progress 6,875,558.57 5,727,760.23
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 44,427,614.19 41,815,689.74
Research and development costs
Goodwill
Long-term deferred expenses 484,033.03 542,116.99
Deferred income tax assets 6,829,856.59 6,829,856.59
Other non-current assets 2,874,654.00 3,158,964.00
Total non-current assets 298,000,196.94 296,839,583.79
Total assets 579,621,386.06 617,090,153.46
Current liabilities
Short-term borrowings 136,622,458.00 161,568,657.88
Loan from central bank
Capital borrowed
Transactional financial liability
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable & account payable 72,847,888.26 88,617,663.09
Accounts received in advance 246,190.47 159,528.60
Selling financial asset of repurchase
Absorbing deposit and interbank
deposits
Agent buying and selling securities
Acting underwriting securities
Wage payable 2,735,590.88 4,700,208.36
Taxes payable 9,489,303.40 11,232,819.87
Other accounts payable 33,389,309.33 26,778,863.92
Including: Interest payable 163,673.05 439,558.70
Dividend payable
Handling fees and commissions
payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 255,330,740.34 293,057,741.72
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Accrued liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 255,395,151.34 293,122,152.72
Owners’ equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -182,913,857.03 -183,172,091.01
Total owner’s equity attributable to
324,226,234.72 323,968,000.74
parent Company
Minority interests
Total owner’s equity 324,226,234.72 323,968,000.74
Total liabilities and owner’s equity 579,621,386.06 617,090,153.46
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Items 2019-3-31 2018-12-31
Current assets:
Monetary fund 5,239,905.52 25,181,764.87
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Transactional financial assets
Financial assets measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial assets
Note receivable and account
receivable
Including: Notes receivable
Accounts receivable
Account paid in advance 353,050.00
Other account receivable 105,431,467.95 99,922,143.84
Including: Interest receivable
Dividends receivable
Inventories 14,806.50 14,806.50
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets
Total current assets 111,039,229.97 125,118,715.21
Non-current assets:
Debt investment
Available-for-sale financial assets
Other debt investment
Held-to-maturity investments
Long-term receivables
Long-term equity investments 186,608,900.00 186,608,900.00
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 26,072,603.04 27,583,299.22
Fixed assets 98,945,724.53 99,678,839.27
Construction in progress 654,356.00
Productive biological assets
Oil and natural gas assets
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Right-of-use assets
Intangible assets 4,662,418.53 4,843,600.68
Research and development costs
Goodwill
Long-term deferred expenses 141,666.55
Deferred income tax assets 7,506,905.90 7,519,546.71
Other non-current assets
Total non-current assets 323,796,552.00 327,030,208.43
Total assets 434,835,781.97 452,148,923.64
Current liabilities
Short-term borrowings 100,000,000.00 120,000,000.00
Transactional financial liability
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable & account payable 9,740,367.33 10,745,840.16
Accounts received in advance 133,844.50 67,210.00
Contractual liability
Wage payable 820,979.02 1,039,196.20
Taxes payable 7,260,647.12 9,305,468.70
Other accounts payable 21,424,953.87 14,339,551.78
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 139,380,791.84 155,497,266.84
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 139,445,202.84 155,561,677.84
Owners’ equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -211,749,512.62 -210,552,845.95
Total owner’s equity 295,390,579.13 296,587,245.80
Total liabilities and owner’s equity 434,835,781.97 452,148,923.64
3. Consolidated Profit Statement
In RMB
Items Current Period Last Period
I. Total operating income 143,921,648.63 171,620,013.62
Including: Operating income 143,921,648.63 171,620,013.62
Interest income
Insurance gained
Handling fees and commissions
income
II. Total operating cost 143,650,187.48 171,509,663.58
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Including: Operating cost 123,972,772.66 152,728,695.85
Interest expense
Handling fees and commissions
expenses
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Taxes and surcharge 628,766.00 1,117,886.20
Sales expenses 3,231,596.06 3,844,118.14
Administration expenses 11,971,872.78 9,464,851.87
R&D expenses
Financial expenses 3,845,179.98 4,354,111.52
Including: interest expenses 2,793,872.51 3,116,070.83
Interest income 95,661.57 205,102.82
Losses of devaluation of asset
Loss of credit impairment
Add: other income
Investment income (Loss is listed
30,941.58 110,910.67
with “-”)
Including: Investment income on
affiliated Company and joint venture
Exchange income (Loss is listed
with “-”)
Net exposure hedging income (Loss
is listed with “-”)
Changing income of fair value(Loss
is listed with “-”)
Income on disposal of assets (Loss is
listed with “-”)
III. Operating profit (Loss is listed with “-”) 302,402.73 221,260.71
Add: Non-operating income 44,300.00 512,000.00
Less: Non-operating expense 4,118.80 267,736.37
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
IV. Total Profit (Loss is listed with “-”) 342,583.93 465,524.34
Less: Income tax 84,349.95 158,156.45
V. Net profit (Net loss is listed with “-”) 258,233.98 307,367.89
(i) Classify by business continuity
1.continuous operating net profit (net loss
258,233.98 307,367.89
listed with ‘-”)
2.termination of net profit (net loss listed
with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of
258,233.98 307,367.89
parent company
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
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
3.gain/loss of fair value changes
for available-for-sale financial assets
4.Amount of financial assets
re-classify to other comprehensive income
5.Gain/loss of held-to-maturity
investments that re-classify to
available-for-sale financial asset
6.Credit impairment provision for
other debt investment
7.Cash flow hedging reserve
8.Translation differences arising
on translation of foreign currency financial
statements
9.Other
Net after-tax of other comprehensive
income attributable to minority shareholders
VII. Total comprehensive income 258,233.98 307,367.89
Total comprehensive income
258,233.98 307,367.89
attributable to owners of parent Company
Total comprehensive income attributable
to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0009 0.0011
(ii) Diluted earnings per share 0.0009 0.0011
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
4. Profit Statement of Parent Company
In RMB
Items Current Period Last Period
I. Operating income 8,410,710.54 9,695,927.93
Less: Operating cost 1,229,845.47 1,069,611.54
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Taxes and surcharge 235,479.42 608,353.57
Sales expenses
Administration expenses 4,650,071.72 5,038,857.70
R&D expenses
Financial expenses 2,191,390.21 2,469,805.69
Including: interest
2,174,999.98 2,479,875.02
expenses
Interest income 6,534.22 16,259.97
Losses of devaluation of
asset
Loss of credit impairment
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment
income on affiliated Company and
joint venture
Net exposure hedging
income (Loss is listed with “-”)
Changing income of fair
value(Loss is listed with “-”)
Income on disposal of
assets (Loss is listed with “-”)
II. Operating profit (Loss is listed
103,923.72 509,299.43
with “-”)
Add: Non-operating income 37,300.00
Less: Non-operating expense
III. Total Profit (Loss is listed with
141,223.72 509,299.43
“-”)
Less: Income tax 35,305.93 127,324.86
IV. Net profit (Net loss is listed with
105,917.79 381,974.57
“-”)
(i)continuous operating net
105,917.79 381,974.57
profit (net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
comprehensive income
(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.gain/loss of fair value
changes for available-for-sale
financial assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale
financial asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
9.Other
VI. Total comprehensive income 105,917.79 381,974.57
VII. Earnings per share:
(i) Basic earnings per share 0.0004 0.0013
(ii) Diluted earnings per share 0.0004 0.0013
5. Consolidated Cash Flow Statement
In RMB
Items Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 131,395,643.63 129,571,099.86
services
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
Net increase of amount from
disposal financial assets that
measured by fair value and with
variation reckoned into current
gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital
borrowed
Net increase of returned
business capital
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Net cash received by agents in
sale and purchase of securities
Write-back of tax received
Other cash received concerning
1,243,646.01 1,231,864.14
operating activities
Subtotal of cash inflow arising from
132,639,289.64 130,802,964.00
operating activities
Cash paid for purchasing
commodities and receiving labor 85,022,628.29 96,423,780.37
service
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 financial assets
held for transaction purposes
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
16,234,429.46 18,269,550.80
workers
Taxes paid 2,076,195.55 7,128,845.32
Other cash paid concerning
9,902,133.35 8,642,968.09
operating activities
Subtotal of cash outflow arising from
113,235,386.65 130,465,144.58
operating activities
Net cash flows arising from
19,403,902.99 337,819.42
operating activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
30,941.58 110,910.67
income
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Net cash received from disposal
of fixed, intangible and other 412,682.00
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
46,000,000.00 42,000,000.00
investing activities
Subtotal of cash inflow from
46,030,941.58 42,523,592.67
investing activities
Cash paid for purchasing fixed,
1,991,100.36 3,851,816.62
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
46,000,000.00 42,000,000.00
investing activities
Subtotal of cash outflow from
47,991,100.36 45,851,816.62
investing activities
Net cash flows arising from investing
-1,960,158.78 -3,328,223.95
activities
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 39,255,469.21 131,532,341.95
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
39,255,469.21 131,532,341.95
financing activities
Cash paid for settling debts 51,413,400.63 131,560,722.31
Cash paid for dividend and
3,134,606.87 2,860,474.39
profit distributing or interest paying
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Including: Dividend and profit
of minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
54,548,007.50 134,421,196.70
financing activities
Net cash flows arising from
-15,292,538.29 -2,888,854.75
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in 65,528.58 -200,355.12
exchange rate
V. Net increase of cash and cash
2,216,734.50 -6,079,614.40
equivalents
Add: Balance of cash and cash
27,961,209.60 81,474,974.30
equivalents at the period -begin
VI. Balance of cash and cash
30,177,944.10 75,395,359.90
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Items Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 8,916,021.40 5,470,760.50
services
Write-back of tax received
Other cash received concerning
2,102,534.22 100,278,749.63
operating activities
Subtotal of cash inflow arising from
11,018,555.62 105,749,510.13
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
841,317.45 899,173.60
workers
Taxes paid 458,295.30 1,637,395.79
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
Other cash paid concerning
15,538,788.71 110,421,369.31
operating activities
Subtotal of cash outflow arising from
16,838,401.46 112,957,938.70
operating activities
Net cash flows arising from
-5,819,845.84 -7,208,428.57
operating activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
Net cash received from disposal
of fixed, intangible and other
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
investing activities
Cash paid for purchasing fixed,
1,036,800.00
intangible and other long-term assets
Cash paid for investment
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from
1,036,800.00
investing activities
Net cash flows arising from investing
-1,036,800.00
activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Cash received from loans 100,000,000.00
Cash received from issuing
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First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
100,000,000.00
financing activities
Cash paid for settling debts 100,199,862.50
Cash paid for dividend and
2,174,999.98 2,315,212.52
profit distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
2,174,999.98 102,515,075.02
financing activities
Net cash flows arising from
-2,174,999.98 -2,515,075.02
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -23.63 -166.89
exchange rate
V. Net increase of cash and cash
-7,994,869.45 -10,760,470.48
equivalents
Add: Balance of cash and cash
12,024,179.58 25,181,764.87
equivalents at the period -begin
VI. Balance of cash and cash
4,029,310.13 14,421,294.39
equivalents at the period -end
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new financial
instrument rules, new revenue rules and new leasing rules
□Applicable √Not applicable
2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument
rules and new leasing rules
□Applicable √Not applicable
III. Audit report
Whether the 1st quarterly report has been audited or not
□Yes √ No
1Q report of the Company is unaudited.
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