Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2012
(Full Text)
§1. Important Notes
1.1 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 hereby
confirm that there are no any fictitious statements, misleading statements, or important omissions
carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
1.2 The Financial Report for the First Quarterly Report of the Company has not been audited by
CPAs.
1.3 Principal of the Company Li Zhongqiu, Person in Charge of Financial Works Jiang Yanjun, and
Person in Charge of Accounting Organ (Accounting Supervisor) Jiang Yanjun hereby confirm that
the Financial Report of the First Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes
Unit: RMB
Changes of
At the end of the report At the period-end of
increase/decrease
period the last year
(%)
Total assets (RMB) 742,637,407.56 668,385,621.82 11.11%
Owners’ equity attributable to shareholders
281,667,986.01 276,939,153.21 1.71%
of the listed company (RMB)
Share capital (Share) 283,161,227.00 283,161,227.00 0.00%
Net asset per share attributable to
shareholders of listed company 0.9947 0.9780 1.71%
(RMB/Share)
Changes of
The same period of last
In the report period increase/decrease
year
(%)
Total operating income (RMB) 214,990,907.87 229,257,873.14 -6.22%
Net profit attributable to shareholders of the
4,728,832.80 3,338,309.94 41.65%
listed company (RMB)
Net cash flow arising from operating -137.02%
-90,160,095.82 -38,039,203.77
activities (RMB)
Net cash flow arising from operating -137.02%
activities per share (RMB/Share) -0.31841 -0.13434
Basic earnings per share (RMB/Share) 0.0167 0.01179 41.65%
Diluted earnings per share (RMB/Share) 0.0167 0.01179 41.65%
Up 0.46 percentage
Weighted average return on equity (%) 1.69% 1.23%
points
Weighted average return on equity after
Up 0.45 percentage
deducting non-recurring gains and losses 1.69% 1.24%
points
(%)
Item of non-recurring gains/losses
√Applicable □Inapplicable
Unit: RMB
Amount from year-begin Remarks (If
Items of non-recurring gains and losses
to period-end applicable)
Other item of gains/losses satisfied definition of
18,951.59
non-recurring gains/losses
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Influenced amount of income tax -4,742.90
Total 14,208.69 -
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
28,963
at the end of report period
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Amount of tradable shares
Full name of shareholder with unrestricted conditions Type of shares
held at the end of report period
Domestically listed foreign
SEG (HONG KONG) CO., LTD. 16,569,560
shares
GOOD HOPE CORNER Domestically listed foreign
13,900,000
INVESTMENTS LTD shares
JIA WEN JUN 1,335,132 RMB ordinary shares
CHEN HONG YUN 956,650 RMB ordinary shares
Domestically listed foreign
BINGHUA LIU 876,213
shares
Domestically listed foreign
LI JIAN FENG 781,718
shares
Domestically listed foreign
ZHU MING 611,348
shares
DBS VICKERS (HONG Domestically listed foreign
581,150
KONG)LTD A/C CLIENTS shares
Domestically listed foreign
ZHENG QIAO FENG 552,601
shares
Domestically listed foreign
ZHAO YONG 450,000
shares
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
Unit: RMB
Amount at Amount at
Item +,- ratio Reasons for changes
period-end period-begin
Price of raw materials soaring, in
order to seize raw material
Monetary fund 86,727,094.19 141,426,712.65 -38.68% resources and price advantage,
amount for goods were paid to
suppliers timely
Wuhan Subsidiary shows a
Account period-to-period growth of sales
205,673,779.19 85,553,134.14 140.40%
receivable in first quarter, and has a tendency
of soaring month by month
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Some of the account paid in
Account paid in
1,265,792.05 9,724,896.44 -86.98% advance off-setting account
advance
payable
Bank loans increased for current
Short-term loans 151,575,160.97 104,543,897.22 44.99% capital supplementation from
Wuhan Subsidiary
Soaring raw material price, more
Account payable 71,444,124.19 43,332,376.94 64.87% raw material purchasing
increased
Account received Some of the clients are settled by
805,783.40 263,497.35 205.80%
in advance account received in advance
Wages payable 2,687,737.50 4,005,890.25 -32.91% Wages for employees paid
More income tax payable in this
period, and input amount of VAT
Taxes paid 6,103,888.19 719,584.69 748.25%
reduced from export tax refund
for video business
Jan. – March of Jan. – March of
Item +,- ratio Reasons for changes
2012 2011
Withdrawal impairment losses for
Losses of assets
1,209,844.95 0 - current assets in line with
impairment
accounting policy of the Company
Sales of video products rebound
Operation profit 6,234,328.26 3,730,613.73 67.11%
in price
Income tax 1,524,447.05 433,580.37 251.60% Profit increased
Tax refund Export rebate of video business
4,573,164.35 40,000.00 11332.91%
received increased
Price of raw materials soaring, in
Cash paid for
order to seize raw material
commodity
242,631,332.16 178,606,493.61 35.85% resources and price advantage,
purchased and
amount for goods were paid to
labor received
suppliers timely
Price of raw materials soaring, in
Net cash flow
order to seize raw material
arising from
-90,160,095.82 -38,039,203.77 -137.02% resources and price advantage,
operation
amount for goods were paid to
activities
suppliers timely
At same period of last year,
Cash paid for
investment of fixed assets of
purchase of fixed
technology reformation, newly
assets, intangible 457,566.69 7,247,439.49 -93.69%
construction of employees’
assets and other
dormitory and warehouse
long-term assets
occurred in Wuhan Subsidiary
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Subtotal of cash
Bank loans increased for current
inflow from
124,421,788.40 4,882,920.40 2448.10% capital supplementation from
financing
Wuhan Subsidiary
activities
Subtotal of cash
outflow from Short-term loans due was paid for
88,429,173.74 8,922,541.32 891.08%
financing Wuhan Subsidiary
activities
Net cash outflow
Bank loans increased for current
arising from
35,992,614.66 -4,039,620.92 - capital supplementation from
financing
Wuhan Subsidiary
activities
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
3.2.3 Particular about the significant contract of routine operation signed and implemented
□Applicable √Inapplicable
3.2.4 Other
√Applicable □Inapplicable
Establishment of internal control: targets of the internal control for 1st quarterly of 2012 mainly focus
on proposing reformation opinions for the issues and defects found previously, formulated
improvement measures, classified accountability to department and employees, completed
reformation of defects for internal control on time; moreover, organized specialist formulated and
collected files of internal control, practice efficiency test by comparing with internal control files, and
evaluated internal control in vary units by test results, which emphasize the serious-ness of internal
control files, reinforce execution of the internal control.
3.3 Implementations of commitments by the Company, shareholders and actual controller
Commitments make within the report period or persisted to the period by listed company and its
director, supervisor and senior executives, shareholder with over 5 percent shares held and its actual
controller
√Applicable □Inapplicable
Content of
Item of Commitments Promisee Implementation
commitments
Promised that the The commitment has been
Wuhan holding implemented on May 18, 2010;
Zhongheng non-circulating Till end of the report period,
New Science shares of the Wuhan Zhongheng Group applied
Commitments for Share & Company won’t be no release procedures on
Merger Reform Technology traded on the restricted shares to Shenzhen
Industrial market within 36 Stock Exchange due to the
Group Co., months since they 116,489,894 shares of the
Ltd. acquired listed Company held in mortgaged
trading right. status.
Commitments made in Wuhan Within one year 1. On Jun. 5, 2008, with
Acquisition Report or Reports Zhongheng after ownership examination and approval from the
on Change in Interests New Science transfer for equity 3rd temporary meeting of the Board
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
& purchased: for 2008, the Company took cash
Technology 1. Related assets of RMB 27 million buying relevant
Industrial injection business assets concerning production of
Group Co., in-put to the injection products from Wuhan
Ltd. Company; 2. 70 Zhongheng Group, and thus the
percent equity of commitment had been finished;
Hengsheng 2. In early of May, 2008, the
Photoelectricity Company officially started off the
held in-put to the significant asset restructures work
Company. of purchasing the 70% equities of
Wuhan Hengsheng Photoelectricity
Industry Co., Ltd.; engaged
financial consultant and law
consultant to carry out earnest
investigation on the restructure
assets that may be involved, and
negotiated with relevant
departments which were in charge
of this. However, due to that
relevant condition was not mature,
there were obstacles in material
asset restructure.
Commitments made in Material
N/A N/A N/A
Assets Reorganization
Commitments made in issuing N/A N/A N/A
Other commitments (including
N/A N/A N/A
additional commitments)
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next
report period to be loss probably or the warning of its material change compared with the
corresponding period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report
period
In the report period, there were no receptions from the investors such as spot research, telephone
communications and written enquiries.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. March 31, 2012 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 86,727,094.19 23,667,584.47 141,426,712.65 26,428,341.78
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Settlement provisions
Capital lent
Transaction finance
asset
Notes receivable 67,500,540.88 1,700,000.00 59,258,576.59 1,905,914.85
Accounts receivable 205,673,779.19 45,302,447.02 85,553,134.14 46,527,773.17
Accounts paid in
1,265,792.05 9,724,896.44
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 12,785,413.31 67,929,389.75 9,970,760.59 66,524,564.98
Purchase restituted
finance asset
Inventories 63,548,792.67 14,806.50 55,927,484.28 14,806.50
Non-current asset due
within one year
Other current assets
Total current assets 437,501,412.29 138,614,227.74 361,861,564.69 141,401,401.28
Non-current assets:
Granted loans and
advances
Finance asset available
for sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
184,708,900.00 184,708,900.00
investment
Investment property 35,110,966.46 35,110,966.46 35,730,725.03 35,730,725.03
Fixed assets 207,877,118.02 110,717,143.71 207,570,220.77 111,933,449.28
Construction in progress 1,878,320.48 1,623,356.00 2,667,769.50 1,623,356.00
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 51,581,524.98 5,677,038.57 51,963,537.72 5,713,275.00
Expense on Research
and Development
Goodwill
Long-term expenses to be
1,335,766.65 1,335,766.65 1,541,966.67 1,541,966.67
apportioned
Deferred income tax
7,352,298.68 8,056,011.45 7,049,837.44 7,753,550.21
asset
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Other non-current asset
Total non-current asset 305,135,995.27 347,229,182.84 306,524,057.13 349,005,222.19
Total assets 742,637,407.56 485,843,410.58 668,385,621.82 490,406,623.47
Current liabilities:
Short-term loans 151,575,160.97 104,543,897.22
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 25,209,646.37 33,795,522.26
Accounts payable 71,444,124.19 9,518,683.12 43,332,376.94 9,582,988.12
Accounts received in
805,783.40 632,633.40 263,497.35 90,347.35
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 2,687,737.50 572,339.23 4,005,890.25 636,334.24
Taxes payable 6,103,888.19 13,056,001.73 719,584.69 12,605,519.17
Interest payable
Dividend payable
Other accounts payable 22,722,919.31 13,406,843.06 18,400,291.35 12,930,265.33
Reinsurance payables
Insurance contract
reserve
Security trading of
agency
Security sales of agency
Non-current liabilities
due within 1 year
Other current liabilities 149,953.07
Total current liabilities 280,699,213.00 37,186,500.54 205,061,060.06 35,845,454.21
Non-current liabilities:
Long-term loans 180,026,000.00 180,026,000.00 186,141,200.00 186,141,200.00
Bonds payable
Long-term account
payable
Special accounts
payable
Projected liabilities 244,208.55 244,208.55 244,208.55 244,208.55
Deferred income tax
liabilities
Other non-current
liabilities
Total non-current liabilities 180,270,208.55 180,270,208.55 186,385,408.55 186,385,408.55
Total liabilities 460,969,421.55 217,456,709.09 391,446,468.61 222,230,862.76
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
283,161,227.00 283,161,227.00 283,161,227.00 283,161,227.00
capital)
Capital public reserve 109,496,837.33 109,496,837.33 109,496,837.33 109,496,837.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -188,381,671.57 -201,662,956.09 -193,110,504.37 -201,873,896.87
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent 281,667,986.01 268,386,701.49 276,939,153.21 268,175,760.71
company
Minority interests
Total owner’s equity 281,667,986.01 268,386,701.49 276,939,153.21 268,175,760.71
Total liabilities and owner’s
742,637,407.56 485,843,410.58 668,385,621.82 490,406,623.47
equity
4.2 Profit statement
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 214,990,907.87 12,437,637.38 229,257,873.14 10,335,292.54
Including: Operating income 214,990,907.87 12,437,637.38 229,257,873.14 10,335,292.54
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 208,756,579.61 12,168,695.34 225,527,259.41 8,969,451.11
Including: Operating cost 188,935,971.87 1,950,845.21 209,590,258.62 833,053.19
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
Operating tax and extras 838,415.68 808,754.72 829,972.33 740,596.30
Sales expenses 1,748,619.61 1,469,381.53 153,812.58
Administration expenses 10,859,762.08 5,177,251.62 9,246,367.59 4,200,739.73
Financial expenses 5,163,965.42 3,021,998.84 4,391,279.34 3,041,249.31
Losses of devaluation of asset 1,209,844.95 1,209,844.95
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated company and joint
venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
6,234,328.26 268,942.04 3,730,613.73 1,365,841.43
listed with “-”)
Add: Non-operating income 18,971.59 12,339.00 101,986.98 61,986.98
Less: Non-operating expense 20.00 20.00 60,710.40 60,710.40
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed
6,253,279.85 281,261.04 3,771,890.31 1,367,118.01
with “-”)
Less: Income tax 1,524,447.05 70,320.26 433,580.37 328,108.32
V. Net profit (Net loss is listed
4,728,832.80 210,940.78 3,338,309.94 1,039,009.69
with “-”)
Net profit attributable to
4,728,832.80 210,940.78 3,338,309.94 1,039,009.69
owner’s equity of parent company
Minority shareholders’ gains
and losses
VI. Earnings per share
i. Basic earnings per share 0.0167 0.0007 0.01179 0.0037
ii. Diluted earnings per share 0.0167 0.0007 0.01179 0.0037
VII. Other consolidated income
VIII. Total consolidated income 4,728,832.80 210,940.78 3,338,309.94 1,039,009.69
Total consolidated income
attributable to owners of parent 4,728,832.80 210,940.78 3,338,309.94 1,039,009.69
company
Total consolidated income
attributable to minority
shareholders
Concerning the enterprise consolidation under common control occurred in the period; the mergered
party realized net profit before consolidation amounting to0 yuan.
4.3 Cash flow statement
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 181,805,841.22 9,763,542.25 173,144,496.62 11,704,623.50
services
Net increase of customer
deposit and interbank deposit
Net increase of loan from
central bank
Net increase of capital
borrowed from other financial
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured savings
and investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received 4,573,164.35 40,000.00
Other cash received
7,445,859.45 5,583,804.31 6,978,930.98 4,342,162.69
concerning operating activities
Subtotal of cash inflow
193,824,865.02 15,347,346.56 180,163,427.60 16,046,786.19
arising from operating activities
Cash paid for purchasing
commodities and receiving labor 242,631,332.16 178,606,493.61 1,971,053.08
service
Net increase of customer loans
and advances
Net increase of deposits in
central bank and interbank
Cash paid for original
insurance contract compensation
Cash paid for interest,
commission charge and commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
12,426,383.59 1,580,385.10 10,029,980.98 1,201,912.05
workers
Taxes paid 1,853,723.56 1,669,741.65 1,684,246.34 1,489,952.93
Other cash paid concerning
27,073,521.53 5,662,476.76 27,881,910.44 5,133,746.25
operating activities
Subtotal of cash outflow
283,984,960.84 8,912,603.51 218,202,631.37 9,796,664.31
arising from operating activities
Net cash flows arising from
-90,160,095.82 6,434,743.05 -38,039,203.77 6,250,121.88
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
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
concerning investing activities
Subtotal of cash inflow from
investing activities
Cash paid for purchasing fixed,
intangible and other long-term 457,566.69 7,450.00 7,247,439.49 226,960.00
assets
Cash paid for investment
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
457,566.69 7,450.00 7,247,439.49 226,960.00
investing activities
Net cash flows arising from
-457,566.69 -7,450.00 -7,247,439.49 -226,960.00
investing 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 124,421,788.40 4,882,920.40
Cash received from issuing
bonds
Other cash received
concerning financing activities
Subtotal of cash inflow from
124,421,788.40 4,882,920.40
financing activities
Cash paid for settling debts 83,505,724.65 6,115,200.00 4,558,200.00 4,558,200.00
Cash paid for dividend and
4,923,449.09 3,073,346.60 4,364,341.32 3,015,184.06
profit distributing or interest paying
Including: Dividend and profit
of minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from
88,429,173.74 9,188,546.60 8,922,541.32 7,573,384.06
financing activities
Net cash flows arising from
35,992,614.66 -9,188,546.60 -4,039,620.92 -7,573,384.06
financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in -74,570.61 496.24 -32,232.52 -32,232.52
exchange rate
V. Net increase of cash and cash
-54,699,618.46 -2,760,757.31 -49,358,496.70 -1,582,454.70
equivalents
Add: Balance of cash and cash
141,426,712.65 26,428,341.78 113,686,755.85 29,345,694.04
equivalents at the period -begin
VI. Balance of cash and cash
86,727,094.19 23,667,584.47 64,328,259.15 27,763,239.34
equivalents at the period -end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
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Shenzhen Zhongheng Huafa Co., Ltd. First Quarterly Report 2012(Full-Text)
Board of Directors of
Shenzhen Zhongheng Huafa Co., Ltd.
April 26, 2012
Chairman: LI ZHONG QIU
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