Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Shenzhen Zhongheng Huafa Co., Ltd.
The Third Quarterly Report For 2012
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 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.
All directors of the Company are attended the Meeting for quarterly report deliberation.
The Third Quarterly Financial Report of 2012 has not been audited by CPAs.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting Works Jiang Yanjun and Person in
Charge of Accounting Organ (Accounting Officer) Wu Ai’jie hereby confirm that the Financial Report of the
Third Quarterly Report is true and complete.
II. Company Profile
(I) Major accounting data and financial indexes
Whether retroactive adjusted on previous financial report or not
□Yes √ No □Not applicable
Increase/decrease in this
2012.9.30 2011.12.31 period-end over period-end of
last year (%)
Total assets (RMB) 761,065,540.95 668,385,621.82 13.87%
Owners’ equities attributable to the
283,230,748.23 276,939,153.21 2.27%
shareholders of listed company (RMB)
Share capital (Share) 283,161,227.00 283,161,227.00 0%
Net assets per share attributable to the
1.0002 0.978 2.27%
shareholders of listed company (RMB/Share)
Increase/decrease Increase/decrease
July- September of January- September
over the same period over the same period
2012 of 2012
of the last year of the last year
Total operating income (RMB) 165,334,212.55 -26.33% 548,851,511.10 -19.98%
Net profit attributable to the shareholders of
-134,642.79 37.99% 6,291,595.02 -30.58%
listed company (RMB)
Net cash flow arising from operating activities
-- -- -6,919,322.01 -41.99%
(RMB)
Net cash flow arising from operating activities
-- -- -0.02 -41.99%
per share (RMB/Share)
Basic earnings per share (RMB/Share) -0.0005 37.99% 0.0222 30.58%
Diluted earnings per share (RMB/Share) -0.0005 37.99% 0.0222 30.58%
0.03 percentage 1.09 percentage
Weighted average return on equity (%) -0.05% 2.25%
points up points down
Weighted average return on equity after 0.11 percentage 1.32 percentage
-0.05% 2.18%
deducting non-recurring gains and losses (%) points down points down
Items and amount with non-recurring gains/losses deducted
√Applicable □ Not applicable
Amount from year-begin to
Item Note
period-end (RMB)
Gains and losses from disposal of non-current assets
Tax refund or exemption out of authorization, with absence of official
approval document or accidentally
Governmental subsidy calculated into current gains and losses(while closely
related with the normal business of the Company, excluding the
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
fixed-amount or fixed-proportion governmental subsidy according to the
unified national standard)
Fund occupation expenses received from non-financial enterprises that
reckon into current gains/losses
Income occurred when investment cost paid by enterprise for obtaining
subsidiaries, associates and joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary assets
Gains and losses from entrusted investment or management assets
Various asset impairment reserve provided for force majeure, such as natural
disaster
Gains/losses from debt reorganization
Reorganization expenses, such as expenditure for allocation of employees
and integration fee
Gains and losses from excess of transaction which are conducted on a
non-fair-valued basis over its fair value
Current net gains and losses of subsidiaries occurred from combination
under the same control commencing from period-begin to combination date
Gains and losses from contingent events which has no relation with normal
business of the Company
Gains and losses from change of fair values of held-for-transaction financial
assets and financial liabilities except for the effective hedge business related
to normal business of the Company, and investment income from disposal
of transactional financial assets and liabilities and financial assets available
for sale
Reversal of impairment reserve for account receivable with separate
impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value of investment properties
whose follow-up measurement are at fair value
Affect upon current gains/losses arising from the one-off adjustment in
subject to requirement of laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Other non-operating income and expenditure except the abovementioned
Other item that satisfied the definition of non-recurring gains and losses 243,521.42
Influenced amount of minority shareholders’ equity
Impact on income tax -60,905.36
Total 182,616.06 --
Explanation on “Other item that satisfied the definition of non-recurring gains and losses” and defined non-recurring gains and losses
as recurring gain/loss according to natures and characteristic of self-operation status
Item Amount involved (RMB) Note
Penalty income 178,579.00 Penalty of terminate the contract in advance
Fine income 64,942.42 Quality find from suppliers
(II) Total shareholders at period-end and top ten shareholders
Total number of shareholders
29,018
at the end of report period
Particulars about the shares held by the top ten shareholders with unrestricted conditions
Amount of unrestricted shares Type/amount of shares
Shareholders
held at period-end Type Amount
SEG (HONG KONG) CO., Domestically listed foreign
16,569,560 16,569,560
LTD. share
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
GOOD HOPE CORNER Domestically listed foreign
13,900,000 13,900,000
INVESTMENTS LTD share
Domestically listed foreign
Zeng Yin 1,500,000 1,500,000
share
Jia Wenjun 1,272,432 RMB common share 1,272,432
Domestically listed foreign
BINGHUA LIU 876,213 876,213
share
Domestically listed foreign
Li Jianfeng 799,000 799,000
share
Domestically listed foreign
Zhu Ming 611,348 611,348
share
Domestically listed foreign
Yang Xiaoping 553,100 553,100
share
Domestically listed foreign
Zhen Qiaofeng 550,000 550,000
share
Wu Ying 511,068 RMB common share 511,068
The Company neither knew whether there exists associated relationship among the top ten
shareholders with unrestricted conditions, nor they belong to consistent actors that are prescribed
Explanation on shareholders
in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed
Companies.
III. Significant events
(I) Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Not applicable
Unit: RMB
Item 2012-9-30 2011-12-31 Ratio Reasons for changes
Note receivable 40,831,846.65 59,258,576.59 -31.10% Part of the notes are due for cash in this period
Business from subsidiary has busy and down
Account receivable 239,596,344.79 85,553,134.14 180.06%
seasons
Account paid in advance 2,669,731.00 9,724,896.44 -72.55% Business from subsidiary decreased in this period
The historical arrears from Shenzhen Wanshang
Other account receivable 5,355,194.88 9,970,760.59 -46.29% Friendship Department Store Co., Ltd was recover
by lawsuit in this period
Short-term turnover capital increased in this period
Short-term loans 160,424,199.54 104,543,897.22 53.45%
from export invoice financing
Business from subsidiary has busy and down
Account payable 74,069,165.68 43,332,376.94 70.93%
seasons
Subscription paid by clients for video business
Account received in advance 1,172,898.19 263,497.35 345.13%
increased in this period
Payable taxes increased in this period because the
Taxes payable 15,363,673.65 719,584.69 2035.08% input tax of VAT are totally off-set the export tax
rebate
Item Jan. to Sept. 2012 Jan. to Sept. 2011 Ratio Reasons for changes
Net profit 6,291,595.02 9,063,595.21 -30.58% Profit from injection decreased in this period
Taxes refund received 16,867,799.10 0 -- Export tax refund from subsidiary in this period
Cash paid for /to staff 41,606,680.51 28,261,058.71 47.22% Soaring labor cost
Payable VAT increased in this period because the
Taxes paid 12,000,269.53 7,289,264.99 64.63% input tax of VAT are totally off-set the export tax
rebate
Net cash flows arising from operating Mainly because of labor cost increased in this
-6,919,322.01 -4,873,139.28 -41.99%
activities period
Cash paid for purchasing fixed,
5,913,766.51 12,214,294.55 -51.58% Less purchasing for material fixed assets
intangible and other long-term assets
Part of the bank deposit are cumulative save to this
Cash received from loans 217,256,454.05 440,969,749.05 -50.73%
year, loan demands in this period declined
Cash paid for settling debts 183,402,482.80 285,741,581.46 -35.82% Due short-term loans decreased in this period
Influence on cash and cash equivalents -356,357.14 -2,834,200.10 87.43% Stable changes in fluctuation of exchange rate in
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
due to fluctuation in exchange rate this period
Net increase of cash and cash
5,617,608.08 121,473,325.92 -95.38% Less bank loans in this period
equivalents
(II) Progress of significant events, their influences, and analysis and explanation of their
solutions
1. Qualified opinion
□Applicable √Not applicable
2. Particular about fund offers to controlling shareholders or associated parties and external
guarantee that against the regulation.
□Applicable √ Not applicable
3. Particular about signing and implementation on significant contracts of ordinary
management.
√Applicable □Not applicable
The Company entered into House Leasing Contract and supplementary agreement with Shenzhen Wanshang Friendship Department
Store Co., Ltd since 2001. Rental sites were the 1/F to 4/F of Huafa Building, the self-owned property of the Company, and the
contract has completed in this report period. The property of 1/F to 3/F of Huafa Building are in a planning stage and will
redecoration for rental in September 2012.
4. Other
□Applicable √ Not applicable
(III) Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or extending to reporting period.
√Applicable □Not applicable
Commitment Commitment
Commitments Accepter Contents Implementation
date term
Promised that the
holding
Zhongheng The commitment has been fulfilled on 18 May 2010.
non-circulating
Commitments New Till the end of this report period, 116,489,894 shares of
shares of the
for Share Technology 2007-5 -18 to the Company held are in the condition of pledged,
Company won’t be 2006
Merger Industry 2010-5-17 Zhongheng New Technology Industry Group Company
traded on the market
Reform Group apply no release procedure to Shenzhen Stock Exchange
within 36 months
Company for the abovementioned restricted shares yet.
since they acquired
listed trading right.
After equity 1. On 5 June 2008, with examination and approval from
ownership the 3rd temporary meeting of the Board for 2008, the
transferring, plans to Company took cash RMB 27 million to buy relevant
followed the items as assets concerning production of injection products from
bellowed within one Wuhan Zhongheng New Technology Industry Group
Commitments Wuhan year: Company, and thus fulfilled the commitment;
made in Zhongheng 1. Transfer relevant
Acquisition New 2. In the first 10 days of May 2008, the Company
assets of plastic 2007-4 -12 to officially started off the significant asset restructure
Report or Technology injection into the 2007
2008 - 4 - 11 work of purchasing the 70% equities of Wuhan
Reports on Industry Company;
Change in Group Hengsheng Photoelectricity Industry Co., Ltd.; engaged
Interests Company 2. Transfer 70% financial consultant and law consultant to carry out
equity of Wuhan earnest investigation on the restructure assets that may
Hengsheng be involved, and negotiated with relevant departments
Photoelectricity which were in charge of this. However, due to the
Industry Co., Ltd. material business-running amount between Wuhan
held into the Zhongheng New Technology Industry Group Company
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Company. and Wuhan Hengsheng Photoelectricity Industry Co.,
Ltd are not be paid in short period , there were obstacles
in material asset restructure
Commitme
nts in assets
N/A N/A N/A N/A N/A
replacemen
t
Commitme
nts made in N/A N/A N/A N/A N/A
issuing
Other
commitmen
ts for
medium N/A N/A N/A N/A N/A
and small
shareholder
s
Completed on
□Yes √No □Not applicable
time or not
Detail
reasons for
un-compleme More details in “Implementation”
nt and further
plan
Whether
made a
promise to
horizontal
competition □Yes √No □Not applicable
and related
transactions
that resulted
or not
Solution term
N/A
promised
Solution way N/A
Complementa
N/A
tion
(IV) Estimation of operation performance for year of 2012
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 √Not applicable
(V) Particulars about other significant events which needed explanations
1. Particular about security investment
□Applicable √Not applicable
2. Particulars about derivatives investment
□Applicable √Not applicable
3. Particulars about the positions of derivatives investment at the end of report period
□Applicable √Not applicable
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
4. Registration form of receiving research, communication and interview in the report period
Content discussed
Date Place Way Type Object and documents
provided
Operational
condition, assets
July to September of Telephone Several individual
Office of the Board Individual status and city
2012 communication investors
renewal projects, no
materials provided
5. Corporate bond issuance
Whether corporate bond issued or not
□ Yes √ Not
IV. Appendix
(I) Financial statement
Whether consolidated statement or not:
√ Yes □ No □ Not applicable
Unless otherwise, currency for this statement refers to CNY (RMB)
1. Consolidated Balance Sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 113,362,336.45 141,426,712.65
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 40,831,846.65 59,258,576.59
Accounts receivable 239,596,344.79 85,553,134.14
Accounts paid in advance 2,669,731.00 9,724,896.44
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 5,607,740.89 9,970,760.59
Purchase restituted finance asset
Inventories 56,014,200.12 55,927,484.28
Non-current asset due within one year
Other current assets
Total current assets 458,082,199.90 361,861,564.69
Non-current assets:
Granted loans and advances
Finance asset available for sales
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment real estate 34,127,452.87 35,730,725.03
Fixed assets 206,555,409.36 207,570,220.77
Construction in progress 2,894,794.73 2,667,769.50
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 50,822,234.22 51,963,537.72
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 1,230,583.29 1,541,966.67
Deferred income tax asset 7,352,866.58 7,049,837.44
Other non-current asset
Total non-current asset 302,983,341.05 306,524,057.13
Total assets 761,065,540.95 668,385,621.82
Current liabilities:
Short-term loans 160,424,199.54 104,543,897.22
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable 38,990,239.08 33,795,522.26
Accounts payable 74,069,165.68 43,332,376.94
Accounts received in advance 1,172,898.19 263,497.35
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 3,947,616.22 4,005,890.25
Taxes payable 15,426,810.15 719,584.69
Interest payable
Dividend payable
Other accounts payable 15,764,055.31 18,400,291.35
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 309,794,984.17 205,061,060.06
Non-current liabilities:
Long-term loans 167,795,600.00 186,141,200.00
Bonds payable
Long-term account payable
Special accounts payable
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Projected liabilities 244,208.55 244,208.55
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 168,039,808.55 186,385,408.55
Total liabilities 477,834,792.72 391,446,468.61
Owner’s equity (or shareholders’ equity):
Paid-up capital (or share capital) 283,161,227.00 283,161,227.00
Capital public reserve 109,496,837.33 109,496,837.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -186,818,909.35 -193,110,504.37
Balance difference of foreign currency translation
Total owner’s equity attributable to parent company 283,230,748.23 276,939,153.21
Minority interests
Total owner’s equity(or shareholders’ equity) 283,230,748.23 276,939,153.21
Total liabilities and owner’s equity(or shareholders’ equity) 761,065,540.95 668,385,621.82
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
2. Balance Sheet of parent company
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 15,246,267.48 26,428,341.78
Transaction finance asset
Notes receivable 1,905,914.85
Accounts receivable 45,147,863.33 46,527,773.17
Accounts paid in advance 977,823.62
Interest receivable
Dividend receivable
Other receivables 65,729,495.08 66,524,564.98
Inventories 5,624,627.73 14,806.50
Non-current asset due within one year
Other current assets
Total current assets 132,726,077.24 141,401,401.28
Non-current assets:
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 184,708,900.00 184,708,900.00
Investment real estate 34,127,452.87 35,730,725.03
Fixed assets 110,048,346.76 111,933,449.28
Construction in progress 2,665,309.73 1,623,356.00
Engineering material
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 5,604,565.71 5,713,275.00
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 1,129,566.63 1,541,966.67
Deferred income tax asset 7,965,043.75 7,753,550.21
Other non-current asset
Total non-current asset 346,249,185.45 349,005,222.19
Total assets 478,975,262.69 490,406,623.47
Current liabilities:
Short-term loans
Transaction financial liabilities
Notes payable
Accounts payable 17,547,012.55 9,582,988.12
Accounts received in advance 12,878.19 90,347.35
Wage payable 843,593.94 636,334.24
Taxes payable 12,674,802.78 12,605,519.17
Interest payable
Dividend payable
Other accounts payable 10,261,112.81 12,930,265.33
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 41,339,400.27 35,845,454.21
Non-current liabilities:
Long-term loans 167,795,600.00 186,141,200.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 244,208.55 244,208.55
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 168,039,808.55 186,385,408.55
Total liabilities 209,379,208.82 222,230,862.76
Owner’s equity (or shareholders’ equity):
Paid-up capital (or share capital) 283,161,227.00 283,161,227.00
Capital public reserve 109,496,837.33 109,496,837.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
General risk reserve
Retained profit -200,453,603.71 -201,873,896.87
Balance difference of foreign currency translation
Total owner’s equity(or shareholders’ equity) 269,596,053.87 268,175,760.71
Total liabilities and owner’s equity(or shareholders’ equity) 478,975,262.69 490,406,623.47
Legal representative: Li Zhongqiu
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
3. Consolidated Profit Statement (this report period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Item Amount in this period Amount in last period
I. Total operating income 165,334,212.55 224,433,933.93
Including: Operating income 165,334,212.55 224,433,933.93
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 165,473,531.86 223,964,363.63
Including: Operating cost 145,162,417.42 205,526,373.98
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 1,055,266.94 836,376.45
Sales expenses 6,031,250.42 2,564,942.86
Administration expenses 11,923,288.65 10,734,656.38
Financial expenses 4,935,227.82 5,186,673.70
Losses of devaluation of asset -167,611.83
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 listed with “-”) -139,319.31 469,570.30
Add: Non-operating income 13,800.00 2,550.00
Less: Non-operating expense 391,024.74
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) -125,519.31 81,095.56
Less: Income tax expense 9,123.48 298,224.98
V. Net profit (Net loss is listed with “-”) -134,642.79 -217,129.42
Including: net profit realized before consolidation by mergered party 0.00 0.00
Net profit attributable to owner’s of parent company -134,642.79 -217,129.42
Minority shareholders’ gains and losses
VI. Earnings per share -- --
i. Basic earnings per share -0.0005 -0.0008
ii. Diluted earnings per share -0.0005 -0.0008
VII. Other consolidated income
VIII. Total comprehensive income -134,642.79 -217,129.42
Total consolidated income attributable to owners of parent company -134,642.79 -217,129.42
Total consolidated income attributable to minority shareholders
The merger realized net profit RMB 0.00 before consolidation during enterprises consolidation under a same
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
control.
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
4. Profit Statement of parent company (this report period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Items Amount in this period Amount in last period
I. Operating income 9,903,540.51 12,113,738.79
Less: operating cost 1,321,969.05 803,659.98
Operating tax and extras 673,362.50 767,043.09
Sales expenses 185,740.19 54,060.00
Administration expenses 5,872,792.34 4,487,929.39
Financial expenses 3,041,059.64 3,259,643.54
Losses of devaluation of asset
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
II. Operating profit (Loss is listed with “-”) -1,191,383.21 2,741,402.79
Add: Non-operating income 12,000.00 1,190.00
Less: Non-operating expense 391,023.02
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -1,179,383.21 2,351,569.77
Less: Income tax expense -294,845.80
IV. Net profit (Net loss is listed with “-”) -884,537.41 2,351,569.77
V. Earnings per share -- --
i. Basic earnings per share -0.0031 0.0083
ii. Diluted earnings per share -0.0031 0.0083
VI. Other consolidated income
VII. Total comprehensive income -884,537.41 2,351,569.77
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
5. Consolidated profit statement (year-begin to end of this period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Item Amount in this period Amount in last period
I. Total operating income 548,851,511.10 685,932,871.16
Including: Operating income
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 540,459,878.05 674,351,677.65
Including: Operating cost 482,023,944.27 622,592,144.54
Interest expense
Commission charge and commission expense
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
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 2,711,251.58 2,573,912.90
Sales expenses 6,031,250.42 5,009,162.64
Administration expenses 33,493,693.05 30,187,870.36
Financial expenses 15,155,233.98 13,988,587.21
Losses of devaluation of asset 1,044,504.75
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 listed with “-”) 8,391,633.05 11,581,193.51
Add: Non-operating income 243,621.42 19,276.00
Less: Non-operating expense 100.00 452,685.14
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 8,635,154.47 11,147,784.37
Less: Income tax expense 2,343,559.45 2,084,189.16
V. Net profit (Net loss is listed with “-”) 6,291,595.02 9,063,595.21
Including: net profit realized before consolidation by mergered party 0.00 0.00
Net profit attributable to owner’s of parent company 6,291,595.02 9,063,595.21
Minority shareholders’ gains and losses
VI. Earnings per share -- --
i. Basic earnings per share 0.0222 0.032
ii. Diluted earnings per share 0.0222 0.032
VII. Other consolidated income
VIII. Total comprehensive income 6,291,595.02 9,063,595.21
Total consolidated income attributable to owners of parent company 6,291,595.02 9,063,595.21
Total consolidated income attributable to minority shareholders
The merger realized net profit RMB 0.00 before consolidation during enterprises consolidation under a same
control.
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
6. Profit Statement of parent company (year-begin to end of this period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Items Amount in this period Amount in last period
I. Operating income 35,346,500.16 33,159,698.12
Less: operating cost 6,125,838.55 2,470,763.68
Operating tax and extras 2,266,625.70 2,305,215.20
Sales expenses 343,339.81 228,682.90
Administration expenses 16,853,264.91 13,986,094.11
Financial expenses 7,194,485.17 7,787,515.72
Losses of devaluation of asset 845,974.14
Add: Changing income of fair value(Loss is listed with “-”)
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated company and joint venture
II. Operating profit (Loss is listed with “-”) 1,716,971.88 6,381,426.51
Add: Non-operating income 176,779.00 17,916.00
Less: Non-operating expense 20.00 451,783.42
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) 1,893,730.88 5,947,559.09
Less: Income tax expense 473,437.72
IV. Net profit (Net loss is listed with “-”) 1,420,293.16 5,947,559.09
V. Earnings per share -- --
i. Basic earnings per share 0.005 0.021
ii. Diluted earnings per share 0.005 0.021
VI. Other consolidated income
VII. Total comprehensive income 1,420,293.16 5,947,559.09
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
7. Consolidated Cash Flow Statement (year-begin to end of this period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Amount in this Amount in last
Item
period period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 538,698,589.71 618,063,541.66
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 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 16,867,799.10
Other cash received concerning operating activities 21,052,639.26 28,608,736.64
Subtotal of cash inflow arising from operating activities 576,619,028.07 646,672,278.30
Cash paid for purchasing commodities and receiving labor service 499,430,259.44 581,598,684.62
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 workers 41,606,680.51 28,261,058.71
Taxes paid 12,000,269.53 7,289,264.99
Other cash paid concerning operating activities 30,501,140.60 34,396,409.26
Subtotal of cash outflow arising from operating activities 583,538,350.08 651,545,417.58
Net cash flows arising from operating activities -6,919,322.01 -4,873,139.28
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
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 0.00 0.00
Cash paid for purchasing fixed, intangible and other long-term assets 5,913,766.51 12,214,294.55
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 investing activities 5,913,766.51 12,214,294.55
Net cash flows arising from investing activities -5,913,766.51 -12,214,294.55
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 217,256,454.05 440,969,749.05
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 217,256,454.05 440,969,749.05
Cash paid for settling debts 183,402,482.80 285,741,581.46
Cash paid for dividend and profit distributing or interest paying 15,046,917.51 13,833,207.74
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 198,449,400.31 299,574,789.20
Net cash flows arising from financing activities 18,807,053.74 141,394,959.85
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -356,357.14 -2,834,200.10
V. Net increase of cash and cash equivalents 5,617,608.08 121,473,325.92
Add: Balance of cash and cash equivalents at the period -begin 107,744,728.37 113,686,755.85
VI. Balance of cash and cash equivalents at the period -end 113,362,336.45 235,160,081.77
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
8. Cash Flow Statement of parent company (year-begin to end of this period)
Prepared by Shenzhen Zhongheng Huafa Co., Ltd. Unit: RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 39,141,874.06 35,210,603.90
Write-back of tax received
Other cash received concerning operating activities 23,972,639.26 15,542,418.66
Subtotal of cash inflow arising from operating activities 63,114,513.32 50,753,022.56
Cash paid for purchasing commodities and receiving labor service 2,622,832.38 1,406,345.91
Cash paid to/for staff and workers 6,599,479.77 3,579,985.84
Taxes paid 4,771,631.99 4,080,418.49
Other cash paid concerning operating activities 31,224,332.23 20,712,069.07
Subtotal of cash outflow arising from operating activities 45,218,276.37 29,778,819.31
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2012(Full Text)
Net cash flows arising from operating activities 17,896,236.95 20,974,203.25
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 0.00 0.00
Cash paid for purchasing fixed, intangible and other long-term assets 2,380,515.96 576,960.00
Cash paid for investment
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 2,380,515.96 576,960.00
Net cash flows arising from investing activities -2,380,515.96 -576,960.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 0.00 0.00
Cash paid for settling debts 18,345,600.00 13,674,600.00
Cash paid for dividend and profit distributing or interest paying 8,339,907.47 9,605,772.42
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 26,685,507.47 23,280,372.42
Net cash flows arising from financing activities -26,685,507.47 -23,280,372.42
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -12,287.82
V. Net increase of cash and cash equivalents -11,182,074.30 -2,883,129.17
Add: Balance of cash and cash equivalents at the period -begin 26,428,341.78 29,345,694.04
VI. Balance of cash and cash equivalents at the period -end 15,246,267.48 26,462,564.87
Legal representative: Li Zhongqiu
Person in charge of accounting works: Jiang Yanjun
Person in charge of accounting institution: Wu Ai’jie
(II) Auditing Report
Auditing Opinion Un-audited
Board of Directors of
Shenzhen Zhongheng Huafa Co., Ltd.
October 27, 2012
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