Stock Code: 000020 200020 Public Notice No.: 2021-09Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA-B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020I. Important Notice
The 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.Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent | Title for absent director | Reasons for absent | Attorney |
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□Applicable √ Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock | Shen HUAFA A, Shen HUAFA B | Stock code | 000020, 200020 | |
Stock exchange for listing | Shenzhen Stock Exchange | |||
Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
Name | Niu Zhuo | |||
Office add. | 618, 6/F, East Tower, No.411 Building, Huafa (N) Road, Futian District, Shenzhen | |||
Fax. | 0755-86360206 | |||
Tel. | 0755-86360201 | |||
huafainvestor@126.com.cn |
2. Main business or product introduction in the reporting period
After years of development, the company has gradually formed two main businesses in industry and property
management. Among them, the industrial business mainly includes injection molding, polylon (light-weightpackaging materials), and complete machine production and sales of liquid crystal display, property managementbusiness is mainly the lease of its own property.
3. Main accounting data and financial indexes
(I) Main accounting data and financial indexes for recently three yearsWhether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
In RMB
2020 | 2019 | Changes over last year | 2018 | |
Operating income | 691,742,269.12 | 721,557,440.51 | -4.13% | 637,046,707.03 |
Net profit attributable to shareholders of the listed company | 6,830,187.40 | 5,460,049.15 | 25.09% | 3,295,022.72 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 4,103,393.55 | 4,843,096.96 | -15.27% | 1,535,043.65 |
Net cash flow arising from operating activities | 59,719,269.60 | 74,463,707.01 | -19.80% | -21,894,459.66 |
Basic earnings per share (RMB/Share) | 0.0241 | 0.0193 | 24.87% | 0.0116 |
Diluted earnings per share (RMB/Share) | 0.0241 | 0.0193 | 24.87% | 0.0116 |
Weighted average ROE | 2.05% | 1.67% | 0.38% | 1.02% |
End of 2020 | End of 2019 | Changes over end of last year | End of 2018 | |
Total assets | 627,779,621.06 | 614,163,899.86 | 2.22% | 617,090,153.46 |
Net assets attributable to shareholder of listed company | 336,248,737.29 | 329,428,049.89 | 2.07% | 323,968,000.74 |
(2) Quarterly main financial index
In RMB
First quarter | Second quarter | Third quarter | Fourth quarter | |
Operating income | 87,800,584.55 | 212,902,836.83 | 200,183,800.78 | 190,855,046.96 |
Net profit attributable to shareholders of the listed company | -400,741.17 | 3,566,338.72 | 1,685,488.94 | 2,496,470.28 |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -208,179.52 | 3,376,075.98 | 1,108,517.51 | 344,348.95 |
Net cash flow arising from operating activities | 7,931,308.59 | 13,268,903.65 | -7,509,489.19 | 46,028,546.55 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recoveredand top ten shareholders
In Share
Total common stock shareholders in reporting period-end | 21,840 | Total common stock shareholders at end of last month before annual report disclosed | 22,456 | Total preference shareholders with voting rights recovered at end of reporting period | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed | 0 | |||||
Top ten shareholders | ||||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of shares held | Amount of restricted shares held | Number of shares pledged/frozen | |||||||
State of share | Amount | |||||||||||
Wuhan Zhongheng Group | Domestic non-state-owned legal person | 42.13% | 119,289,894 | 0 | Pledged | 116,100,000 | ||||||
Frozen | 119,289,894 | |||||||||||
SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | Pledged | 0 | ||||||
Frozen | 0 | |||||||||||
GOOD HOPE CORNER INVESTMENTS LTD. | Overseas legal person | 2.50% | 7,072,000 | 0 | Pledged | 0 | ||||||
Frozen | 0 | |||||||||||
Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | Pledged | 0 | ||||||
Frozen | 0 | |||||||||||
Guoyuan Securities Brokerage (Hong Kong) Limited | Overseas legal person | 1.37% | 3,870,117 | 0 | Pledged | 0 | ||||||
Frozen | 0 | |||||||||||
Li Zhongqiu | Overseas | 1.00% | 2,830,000 | 0 | Pledged | 0 |
nature person | Frozen | 0 | ||||
LI SHERYN ZHAN MING | Overseas nature person | 0.51% | 1,446,100 | 0 | Pledged | 0 |
Frozen | 0 | |||||
China Merchants Securities Hong Kong Co., Ltd. | State-owned legal person | 0.50% | 1,413,888 | 0 | Pledged | 0 |
Frozen | 0 | |||||
Shengyin Investment Co., Ltd. | Overseas legal person | 0.50% | 1,408,600 | 0 | Pledged | 0 |
Frozen | 0 | |||||
Li Senzhuang | Domestic nature person | 0.37% | 1,041,073 | 0 | Pledged | 0 |
Frozen | 0 | |||||
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. | |||||
Explanation on involving margin business (if applicable) | N/A |
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and theCompany is as follows:
Li Zhongqiu | Li Li (Son of Li Zhongqiu) |
Wuhan Zhongheng New Science & Technology Industrial Group
Co., Ltd.Shenzhen Zhongheng Huafa Co., Ltd.
Shenzhen Zhongheng Huafa Co., Ltd.51%
51%49%
49%
42.21%
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full atmaturity on the approval date for annual report disclosedNoIII. Discussion and analysis of business
1. Introduction of operation in the reporting period
2020 was a very unusual year, the sudden outbreak of COVID-19 epidemic caused the company's importantsubsidiary in Wuhan to be affected by the epidemic, the resumption of work and production was later than in otherareas of the country, and the loss of orders was relatively serious. Faced with such a difficult businessenvironment, all employees of the company worked together to actively overcame the adverse effects of theepidemic, complied with the industry environment and the adjustment of national policies, broke through thinkingand management strategies, and achieved good operating results.
In 2020, the company achieved operating revenue of 691.7423 million yuan, a decrease of 4.13% on ayear-on-year basis, total profits of 8.82 million yuan, increased by 13.76% compared with the same period lastyear, net profit amounted to 6.8302 million yuan, a 25.09% up from a year earlier.
●Video service business achieved annual operating income of 396.06 million yuan, an increase of 19.29% on ayear-on-year basis, operation profit amounted as 6.4795 million yuan with 132.49% up from a year earlier. Duringthe reporting period, the Video Business Division adjusted the product structure and optimized the sales ratio ofeach brand of products. The sales ratio of AOC, VSCN and VSC series brands have increased, which openedonline sales channels such as Jingdong while completing existing customer orders, and sold 900,000 LCDmonitors in 2020, an increase of 9.68% over last year.
●Injection molding business achieved annual operating income of 185.4917 million yuan, a decrease of 25.86%over the same period last year, operation profit amounted as 548,600 yuan, an increase of 2.39% from a yearearlier. With the unceasingly fierce competition in the market, the profit margin of injection molding wassqueezed, but the new production line put into production by this business division at the end of 2018 gave fullplay to its automation advantages in 2020, which greatly improved production efficiency and reduced productioncosts. The injection molding division achieved annual sales volume of 9,900 tons, completed the annual salestarget.
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
●Polylon business achieved annual operating income of 35.8333 million yuan, a decrease of 44.30% over thesame period last year. Actual sales for the year were 2,500 tons, basically reaching the sales target. In order tobetter fulfill the sales target of 2021, the EPS business division maintained existing orders, increased theproportion of structural parts orders, developed new customer resources, and strive to accept more domestic andforeign large-scale household appliance customers’ orders.
●The property rental business achieved annual operating income of 40.5875 million yuan, an increase of 4.55%from a year earlier, operating profit amounted as 6 million yuan with a growth of 7.86% over that of last year. In2020, the company optimized the structural proportion of commercial tenants, and the occupancy rate was greatlyimproved, at the same time, the company strictly controlled costs and reduced unnecessary expenditures.Therefore, the company’s overall rental profits increased significantly compared with the previous year.
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating incomeor operating profit
√Applicable □Not applicable
In RMB
Name | Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y |
Monitor | 396,060,015.82 | 6,479,543.15 | 6.63% | 19.29% | 132.49% | 0.15% |
Injection model | 185,491,674.08 | 548,642.72 | 9.40% | -25.86% | 2.39% | -1.39% |
EPS products | 35,833,322.61 | -4,117,636.91 | -5.74% | -44.30% | -279.45% | -9.07% |
Property lease | 40,587,453.21 | 6,000,207.46 | 86.87% | 4.55% | 7.86% | -6.75% |
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profitattributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Facing delisting
□ Applicable √ Not applicable
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
7. Related matters relating to financial reports
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last year
□ Applicable √ Not applicable
There was no change in aspect of accounting policy, estimates and calculation method
(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 in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
√Applicable □ Not applicable
Combined party | Percentage of equity acquired in enterprise combination | Constitute the basis for the enterprise combination under the same control | Combining date | Basis for determining the date of combination | Income of the combined party from the beginning of the period of combination to the date of combination | Net profit of the combined party from the beginning of the period of combination to the date of combination | Income of the combined party during the comparison period | Net profit of the combined party during the comparison period |
Ruth Co., Ltd. | 100.00% | 2020.11.10 | Equity Transfer Agreement |
Ruth Co., Ltd was established in Hong Kong dated 25 October 2020 with registered capital of HK$ 10,000.00, no actual capitalcontributed and has not yet commenced production and operation activities.