Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2014
(Full-Text)
October 2014
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
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 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.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting Works Cao Li and Person in Charge of
Accounting Organ (Accounting Officer) Wu Aijie hereby confirm that the Financial Report of the Third Quarterly
Report is authentic, accurate and complete.
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Section II. Main accounting data and changes of shareholders
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Current period-end Period-end of last year Increase/decrease
Total assets(RMB) 1,126,836,165.80 731,348,499.86 54.08%
Net assets attributable to shareholders
274,654,345.47 273,663,649.47 0.36%
of listed company (RMB)
Increase/decrease in
Increase/decrease in
Year-begin to end comparison with
Current period comparison with same
of the Period year-begin to Period-end
period of last year
of last year
Operating revenue (RMB) 208,177,270.86 38.21% 574,799,097.22 26.79%
Net profit attributable to shareholders of
-465,240.93 59.89% 990,696.00 22.60%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting -675,588.63 43.73% 363,979.24 -77.49%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-- -- -383,919,788.32 860.38%
activities(RMB)
Basic earnings per share (RMB/Share) -0.0016 60.98% 0.0035 20.69%
Diluted earnings per share (RMB/Share) -0.0016 60.98% 0.0035 20.69%
Weighted average ROE -0.17% 0.24 percent points up 0.36% 0.07 percent points up
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Amount from year-begin to
Item Note
end of the Period
Gains/losses from the disposal of non-current asset (including the write-off that accrued
54,775.18
for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not including the subsidy
enjoyed in quota or ration according to national standards, which are closely relevant to 200,695.00
enterprise’s business)
Other non-operating income and expenditure except for the aforementioned items 580,152.17
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Less: impact on income tax 208,905.59
Total 626,716.76 --
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. Statement of the total shareholders and shares-held of top ten shareholders at end of the
Period
1. Statement of the total common shareholders and shares-held of top ten common
shareholders at end of the Period
In Share
Total common shareholders in reporting period 24,827( including 16,340 shareholders of A-share)
Shares-held of top ten common shareholders
Amount of Number of share pledged/frozen
Proportion of Amount of shares
Shareholders Nature of shareholder restricted shares
shares held held State of share Amount
held
Wuhan Zhongheng New Domestic Pledged 116,489,894
Science & Technology non-state-owned legal 41.14% 116,489,894 116,489,894
Frozen 0
Industrial Group Co., Ltd. person
SEG (HONG KONG)
Overseas legal person 5.85% 16,569,560 0 Pledged / Frozen 0
CO., LTD.
GOOD HOPE CORNER
Overseas legal person 4.91% 13,900,000 0 Pledged / Frozen 0
INVESTMENTS LTD.
BINGHUA LIU Overseas nature person 0.31% 876,213 0 Pledged / Frozen 0
Xie Deqing Domestic nature person 0.28% 780,100 0 Pledged / Frozen 0
Shi Feng Domestic nature person 0.25% 714,273 0 Pledged / Frozen 0
Wang Jianguang Domestic nature person 0.23% 651,849 0 Pledged / Frozen 0
Li Jianfeng Domestic nature person 0.23% 637,600 0 Pledged / Frozen 0
Zhu Ming Domestic nature person 0.22% 611,348 0 Pledged / Frozen 0
Jia Wenjun Domestic nature person 0.20% 557,232 0 Pledged / Frozen 0
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Particular about top ten common shareholders with un-restrict shares held
Amount of un-restrict common Type of shares
Shareholders
shares held Type Amount
SEG (HONG KONG) CO., LTD. 16,569,560 Domestically listed foreign shares 16,569,560
GOOD HOPE CORNER INVESTMENTS LTD. 13,900,000 Domestically listed foreign shares 13,900,000
BINGHUA LIU 876,213 Domestically listed foreign shares 876,213
Xie Deqing 780,100 Domestically listed foreign shares 780,100
Shi Feng 714,273 RMB ordinary shares 714,273
Wang Jianguang 651,849 Domestically listed foreign shares 651,849
Li Jianfeng 637,600 Domestically listed foreign shares 637,600
Zhu Ming 611,348 Domestically listed foreign shares 611,348
Jia Wenjun 557,232 RMB ordinary shares 557,232
Wu Jingmin 491,786 RMB ordinary shares 491,786
Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial
Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs
Explanation on associated relationship among the to the consistent actor that are prescribed in Measures for the Administration of Disclosure
of Shareholder Equity Changes of Listed Companies. The Company neither knew whether
top ten shareholders or consistent action there 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 shareholders involving margin Ended as the reporting period, in top ten shareholders, 714,273 shares of the Company
were hold by Shifeng through the guarantee securities account of client credit trading under
business about top ten common shareholders with
the name of China Merchants Securities Co., Ltd., representing 100 percent of the
un-restrict shares held (if applicable) Company’s stock held by himself
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 shareholders of the Company have no buy-back agreement dealing in reporting period.
2. Total of shareholders with preferred stock held and the top ten shareholdings in Period-end
□Applicable √Not applicable
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
Item 2014-9-30 2014-1-1 Increase/decrease y-o-y Reasons
Sales collections declined and payment for
Monetary fund 31,637,263.02 54,251,456.20 -41.68% puchasement increased due to the low season
alternates with peak season
Transfer of endorsement occurred in the
Note receivable 76,943,566.42 154,375,936.49 -50.16%
Period
Accounts receivable 392,228,009.22 162,278,705.83 141.70% Operating income increased in Period
Advance payment 289,183,823.35 13,483,243.19 2044.76% Newly advance payment in trade in Period
Water and electricity of tenants increased in
Other accounts receivable 13,757,672.85 9,623,767.78 42.96%
this Period
Transfer of golf membership occurred in the
Long-term prepaid expenses 984,299.90 1,773,524.86 -44.50%
Period
Notes payable 56,081,649.22 34,646,052.79 61.87% Payment for notes increased in Period
Accounts payable 28,991,115.66 52,206,342.81 -44.47% Payment for notes increased in Period
Utilities received in advance from part of the
Advance payment 2,124,969.90 1,572,324.29 35.15%
tenant in Period
Margin for property rental received increased
Other receivables 30,283,261.48 22,392,413.99 35.24%
in Period
The Company increased new bank loans due
Long-term loans 592,800,000.00 162,418,800.00 264.98%
to the development of business
Item Jan.-Sep. 2014 Jan.-Sep. 2013 Increase/decrease y-o-y Reasons
Interest expense arising from new bank loans
Financial expenses 26,200,025.63 16,882,403.45 55.19%
in Period
Losses of devaluation of asset -140,992.99 -869,044.62 83.78% Bad debt switch back in last period
Previous accured expenses including legal
Non-operating expense 99,726.04 2,051,124.98 -95.14%
charges
Accrual income tax expenses due to the
Income tax expenses 526,828.04 -169,257.95 411.26%
earnings from subsidiary
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Cash received from selling
commodities and providing labor 254,875,585.83 379,887,983.19 -32.91% Notes settlement increased in Period
services
Cash paid for purchasing
commodities and receiving labor 579,317,407.91 361,047,890.28 60.46% Payment in advance increased in Period.
service
The Company increased new bank loans due
Cash received from loans 889,576,740.81 372,867,761.34 138.58%
to the development of business
Part of the new loans are paid for due loans in
Cash paid for settling debts 503,617,245.56 349,936,294.48 43.92%
Period
Cash paid for distribution of
23,616,708.26 15,568,339.32 51.70% Interest expense increased in Period
dividend, profit or interest payment
Impact on cash and cash equivalent The impact of exchange rate fluctuations
-1,762,391.19 -3,616,808.99 51.27%
from changes of rate relative reduced in Period.
Balance of cash and cash equivalent
50,704,319.86 112,834,841.39 -55.06% Notes settlement increased
at period-begin
Balance of cash and cash equivalent
24,226,727.34 73,958,944.04 -67.24% Payment in purchase increased
at period-end
Ministry of Finance revised the Accounting Standards for Enterprises No.2—Long-term equity investment, Accounting Standards for
Enterprises No.9—Wages and salaries of employees, Accounting Standards for Enterprises No.30—Presentation of financial
statements and Accounting Standards for Enterprises No.33—Consolidated financial statements in 2014, and enacted the concrete
standards of Accounting Standards for Enterprises No.39— Fair value measurements, Accounting Standards for Enterprises
No.40—Joint venture arrangement and Accounting Standards for Enterprises No.41—Disclosure of interests in other entity etc., and
executed since 1 July 2014. Modifying the Accounting Standards for Enterprises-Basic Standards and carried into force since 23
July, the date of modifying released; the Accounting Standards for Enterprises No.37—Presentation of financial instruments have
been revised and implemented since year of 2014 and financial reports in later period. The Company carried out the above said
accounting standards since the date of issued. Change of the accounting standards shows no impact on financial statement of the
Company and no retroactive treatment exercised either.
II. Progress of significant events, their influences, and analysis and explanation of their
solutions
√ Applicable □Not applicable
1. The site of 1/F to 3/F in Huafa Building, the self-owned property of the Company, is decorating again for renting and attract
investment due to the leasing contract run out in 3Q of 2012. Investment attraction still in process up to now, and gains greatly
progress, part of the sites are sign for tenant, shops opened successively, and the inactive sites declined greatly. Although average rent
has a certain growth over the past, due to a free-rent period in the leasing contract, it is estimated that the overall renting income from
the property in 2014 are close to the normal years before the site re-decorating.
2. With purpose of optimized the industrial pattern, explored income resources, improved financial structure and raise the level of
corporate profits, the Company is actively planning to the private placement in the Period. Controlling shareholder subscribe with the
land assets in Wuhan, other specified objects subscribe in cash. Vary preliminary works with private placement matters involved are
in an orderly manner currently.
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
III. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or made in previous period and extending to reporting period
√ Applicable □Not applicable
Commitment Dated for
Commitments Contents Commitment term Implementation
party commitment
Share Merger Reform N/A N/A
Within 1 year after transferred
Wuhan From 4 December
of this equity acquisition: 1.
Zhongheng 2007 to 4
Injected relevant capital of
Commitments in report of acquisition or New Science & November 2008;
plastic injection business into 2007-03-29 Implementing
equity change Technology From 13 May
the Company; 2.70% equity of
Industrial 2014 to 12 May
the Hengsheng Photoelectricity
Group Co., Ltd. 2015
will inject into the Company.
Commitments in assets reorganization N/A N/A
Commitments in initial public offering or
N/A N/A
refinancing
Other commitments to minority
N/A N/A
shareholders of the Company
Completed on time or not No
1. On 5 June 2008, approving by the 3rd Extraordinary Meeting of Board of Directors 2008, the
Company purchased relevant assets of plastic injection products from Wuhan Zhongheng Group by
cash of RMB 27 million, the commitment have been implemented;
2. In the first 10 days of May, 2008, the Company officially started off the significant asset
restructures work of purchasing the 70% equities of Hengsheng Photoelectricity.; 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
Detail reasons for un-complement and
to that relevant condition was not mature; there still remain obstacles in material asset restructure.
further plan (if applicable)
In April 2014, considering unpleasant operation of Hengsheng Photoelectricity, as well avoid
causing loss to listed companies due to forced commitment fulfillment, holding shareholder Wuhan
Zhongheng Group raised proposal of changing the commitment from perspective of maintaining
long-term interests of listed company, which was changed to: within 1 year since the General
Shareholders’ Meeting approved, Wuhan Zhongheng Group sold its underneath street shops located
in property of the 1st phase of Yutian Happy Sea in cash. The revised commitment has been
approved in Shareholders’ General Meeting of 2013 held on 13th May 2014.
IV. Estimation of operation performance for year of 2014
Estimation on 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 on reason
□ Applicable √ Not applicable
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
V. Particular about security investment
□ Applicable √ Not applicable
The Company had no security investment in Period.
Explanation on equity of other listed company held
□ Applicable √Not applicable
The Company had no equity of other listed company in Period.
VI. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.
VII. Registration form of receiving research, communication and interview in the report
period
√ Applicable □Not applicable
Content discussed and
Date Place Way Type Object
documents provided
Operation situation of the
From July to The company's Company, assets status and
Telephone Personal Individual investors
September in 2014 headquarters process of city update
projects
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 31,637,263.02 54,251,456.20
Settlement provisions
Capital lent
Financial assets measured by fair value and whose change is
recorded in current gains and losses
Notes receivable 76,943,566.42 154,375,936.49
Accounts receivable 392,228,009.22 162,278,705.83
Accounts paid in advance 289,183,823.35 13,483,243.19
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 13,757,672.85 9,623,767.78
Purchase restituted finance asset
Inventories 41,786,500.85 47,119,303.85
Divided into assets held ready for sales
Non-current asset due within one year
Other current assets
Total current assets 845,536,835.71 441,132,413.34
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Long-term equity investment
Investment property 31,588,353.01 32,529,420.82
Fixed assets 189,441,892.68 195,542,067.03
Construction in progress 2,853,356.00 2,323,356.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 48,240,258.89 49,360,979.93
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 984,299.90 1,773,524.86
Deferred income tax asset 8,191,169.61 8,686,737.88
Other non-current asset
Total non-current asset 281,299,330.09 290,216,086.52
Total assets 1,126,836,165.80 731,348,499.86
Current liabilities:
Short-term loans 120,700,298.98 162,140,601.13
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Notes payable 56,081,649.22 34,646,052.79
Accounts payable 28,991,115.66 52,206,342.81
Accounts received in advance 2,124,969.90 1,572,324.29
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 3,624,357.41 4,760,822.51
Taxes payable 14,971,755.87 14,943,081.06
Interest payable
Dividend payable
Other accounts payable 30,283,261.48 22,392,413.99
Reinsurance payables
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held ready for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 256,777,408.52 292,661,638.58
Non-current liabilities:
Long-term loans 592,800,000.00 162,418,800.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 2,604,411.81 2,604,411.81
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 595,404,411.81 165,023,211.81
Total liabilities 852,181,820.33 457,684,850.39
Owner’s equity (or shareholders’ equity):
Paid-in 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 -195,395,312.11 -196,386,008.11
Balance difference of foreign currency translation
Total owner’s equity attributable to parent company 274,654,345.47 273,663,649.47
Minority interests
Total owner’s equity(or shareholders’ equity) 274,654,345.47 273,663,649.47
Total liabilities and owner’s equity(or shareholders’ equity) 1,126,836,165.80 731,348,499.86
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
2. Balance Sheet of parent company
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 11,417,144.43 18,575,925.94
Financial assets measured by fair value and whose change is
recorded in current gains and losses
Notes receivable
Accounts receivable 1,699,750.46 38,718,332.28
Accounts paid in advance 500,000.00 1,004,976.83
Interest receivable
Dividend receivable
Other receivables 572,243,661.45 100,394,931.80
Inventories 14,806.50 14,806.50
Divided into assets held ready for sales
Non-current asset due within one year
Other current assets
Total current assets 585,875,362.84 158,708,973.35
Non-current assets:
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 187,708,900.00 186,708,900.00
Investment real estate 31,588,353.01 32,529,420.82
Fixed assets 101,121,228.40 104,096,997.92
Construction in progress 2,853,356.00 2,323,356.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 5,314,674.27 5,423,383.56
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 925,083.32 1,698,633.25
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Deferred income tax asset 8,527,442.54 8,485,262.26
Other non-current asset
Total non-current asset 338,039,037.54 341,265,953.81
Total assets 923,914,400.38 499,974,927.16
Current liabilities:
Short-term loans 30,908,000.00 36,180,000.00
Financial liability measured by fair value and with variation
reckoned into current gains/losses
Notes payable
Accounts payable 9,740,367.33 10,745,344.16
Accounts received in advance 1,258,950.30 126,522.29
Wage payable 707,128.38 655,258.44
Taxes payable 11,005,383.75 10,616,750.61
Interest payable
Dividend payable
Other accounts payable 16,729,344.03 11,799,762.43
Divided into liability held ready for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 70,349,173.79 70,123,637.93
Non-current liabilities:
Long-term loans 592,800,000.00 162,418,800.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 2,604,411.81 2,604,411.81
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 595,404,411.81 165,023,211.81
Total liabilities 665,753,585.60 235,146,849.74
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
14
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
General risk reserve
Retained profit -211,888,842.80 -205,221,580.16
Balance difference of foreign currency translation
Total owner’s equity(or shareholders’ equity) 258,160,814.78 264,828,077.42
Total liabilities and owner’s equity(or shareholders’ equity) 923,914,400.38 499,974,927.16
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
3. Consolidated Profit Statement (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Total operating income 208,177,270.86 150,618,600.97
Including: Operating income 208,177,270.86 150,618,600.97
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 209,036,915.32 152,358,158.50
Including: Operating cost 178,527,255.38 130,778,059.89
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 1,376,240.31 2,815,332.20
Sales expenses 3,140,144.67 2,740,965.09
Administration expenses 10,002,764.59 8,664,451.85
Financial expenses 15,990,510.37 7,359,349.47
Losses of devaluation of asset
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”)
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Including: Investment income on affiliated company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) -859,644.46 -1,739,557.53
Add: Non-operating income 282,665.42 51,325.00
Less: Non-operating expense 2,201.80 10,661.97
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) -579,180.84 -1,698,894.50
Less: Income tax expense -113,939.91 -538,996.75
V. Net profit (Net loss is listed with “-”) -465,240.93 -1,159,897.75
Including: net profit realized before consolidation by mergered party
Net profit attributable to owner’s of parent company -465,240.93 -1,159,897.75
Minority shareholders’ gains and losses
VI. Earnings per share -- --
i. Basic earnings per share -0.0016 -0.0041
ii. Diluted earnings per share -0.0016 -0.0041
VII. Other consolidated income
Inc: Other comprehensive items un-able to re-classify as gains/losses in later
accounting period
Other comprehensive items able to re-classify as gains/losses in later
accounting period while regulated conditions are satisfy
VIII. Total comprehensive income -465,240.93 -1,159,897.75
Total consolidated income attributable to owners of parent company -465,240.93 -1,159,897.75
Total consolidated income attributable to minority shareholders
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of parent company (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Amount in this period Amount in last period
I. Operating income 15,724,379.84 10,099,979.83
Less: operating cost 2,640,562.98 891,969.77
Operating tax and extras 930,324.67 704,385.03
Sales expenses 0.00
Administration expenses 4,714,135.33 4,106,604.76
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Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Financial expenses 13,235,797.59 3,586,239.12
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 “-”) -5,796,440.73 810,781.15
Add: Non-operating income 67,808.00 39,520.00
Less: Non-operating expense 77.22
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -5,728,632.73 850,223.93
Less: Income tax expense 0.00
IV. Net profit (Net loss is listed with “-”) -5,728,632.73 850,223.93
V. Earnings per share -- --
i. Basic earnings per share
ii. Diluted earnings per share
VI. Other consolidated income
Inc: Other comprehensive items un-able to re-classify as gains/losses in later
accounting period
Other comprehensive items able to re-classify as gains/losses in later
accounting period while regulated conditions are satisfy
VII. Total comprehensive income -5,728,632.73 850,223.93
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
5. Consolidated profit statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Total operating income 574,799,097.22 453,351,424.39
Including: Operating income 574,799,097.22 453,351,424.39
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 574,117,195.53 451,431,120.47
17
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Including: Operating cost 505,448,858.26 394,291,567.27
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 4,381,764.40 4,088,844.27
Sales expenses 8,704,843.81 7,298,539.82
Administration expenses 29,522,696.42 29,738,810.28
Financial expenses 26,200,025.63 16,882,403.45
Losses of devaluation of asset -140,992.99 -869,044.62
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 “-”) 681,901.69 1,920,303.92
Add: Non-operating income 935,348.39 769,645.79
Less: Non-operating expense 99,726.04 2,051,124.98
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 1,517,524.04 638,824.73
Less: Income tax expense 526,828.04 -169,257.95
V. Net profit (Net loss is listed with “-”) 990,696.00 808,082.68
Including: net profit realized before consolidation by mergered party
Net profit attributable to owner’s of parent company 990,696.00 808,082.68
Minority shareholders’ gains and losses
VI. Earnings per share -- --
i. Basic earnings per share 0.0035 0.0029
ii. Diluted earnings per share 0.0035 0.0029
VII. Other consolidated income
Inc: Other comprehensive items un-able to re-classify as gains/losses in later
accounting period
Other comprehensive items able to re-classify as gains/losses in later
accounting period while regulated conditions are satisfy
18
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
VIII. Total comprehensive income 990,696.00 808,082.68
Total consolidated income attributable to owners of parent company 990,696.00 808,082.68
Total consolidated income attributable to minority shareholders
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
6. Profit Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Amount in this period Amount in last period
I. Operating income 35,414,915.54 28,188,898.06
Less: operating cost 5,996,505.98 3,617,717.90
Operating tax and extras 2,256,699.79 1,944,199.86
Sales expenses 139,350.72
Administration expenses 15,339,318.20 14,162,532.17
Financial expenses 18,519,254.38 6,368,749.34
Losses of devaluation of asset 168,721.11 -869,044.62
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 “-”) -6,865,583.92 2,825,392.69
Add: Non-operating income 156,141.00 59,614.30
Less: Non-operating expense 1,889,182.93
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) -6,709,442.92 995,824.06
Less: Income tax expense -42,180.28 -255,015.27
IV. Net profit (Net loss is listed with “-”) -6,667,262.64 1,250,839.33
V. Earnings per share -- --
i. Basic earnings per share -0.0235 0.0044
ii. Diluted earnings per share -0.0235 0.0044
VI. Other consolidated income
Inc: Other comprehensive items un-able to re-classify as gains/losses in later
accounting period
Other comprehensive items able to re-classify as gains/losses in later
accounting period while regulated conditions are satisfy
19
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
VII. Total comprehensive income -6,667,262.64 1,250,839.33
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
7. Consolidated Cash Flow Statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In 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 254,875,585.83 379,887,983.19
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 3,999.97
Other cash received concerning operating activities 12,388,222.70 16,931,129.23
Subtotal of cash inflow arising from operating activities 267,263,808.53 396,823,112.39
Cash paid for purchasing commodities and receiving labor service 579,317,407.91 361,047,890.28
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 42,001,233.83 34,702,269.27
Taxes paid 12,140,924.96 13,523,680.36
Other cash paid concerning operating activities 17,724,030.15 27,525,035.79
Subtotal of cash outflow arising from operating activities 651,183,596.85 436,798,875.70
Net cash flows arising from operating activities -383,919,788.32 -39,975,763.31
II. Cash flows arising from investing activities:
20
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Cash received from recovering investment
Cash received from investment income
Net cash received from disposal of fixed, intangible and other long-term assets 50,000.00
Net cash received from disposal of subsidiaries and other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 50,000.00
Cash paid for purchasing fixed, intangible and other long-term assets 3,188,200.00 2,646,452.59
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 3,188,200.00 2,646,452.59
Net cash flows arising from investing activities -3,138,200.00 -2,646,452.59
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 889,576,740.81 372,867,761.34
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 889,576,740.81 372,867,761.34
Cash paid for settling debts 503,617,245.56 349,936,294.48
Cash paid for dividend and profit distributing or interest paying 23,616,708.26 15,568,339.32
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 527,233,953.82 365,504,633.80
Net cash flows arising from financing activities 362,342,786.99 7,363,127.54
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -1,762,391.19 -3,616,808.99
V. Net increase of cash and cash equivalents -26,477,592.52 -38,875,897.35
Add: Balance of cash and cash equivalents at the period -begin 50,704,319.86 112,834,841.39
VI. Balance of cash and cash equivalents at the period -end 24,226,727.34 73,958,944.04
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
21
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
8. Cash Flow Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In 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 32,446,311.37 25,283,258.59
Write-back of tax received
Other cash received concerning operating activities 59,702,045.41 16,931,129.23
Subtotal of cash inflow arising from operating activities 92,148,356.78 42,214,387.82
Cash paid for purchasing commodities and receiving labor service 1,177,778.17
Cash paid to/for staff and workers 3,819,398.87 4,119,957.91
Taxes paid 4,308,884.22 4,649,927.63
Other cash paid concerning operating activities 494,106,065.77 52,107,150.17
Subtotal of cash outflow arising from operating activities 502,234,348.86 62,054,813.88
Net cash flows arising from operating activities -410,085,992.08 -19,840,426.06
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, intangible and other long-term assets 882,600.00 1,067,935.00
Cash paid for investment 1,000,000.00
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 1,882,600.00 1,067,935.00
Net cash flows arising from investing activities -1,882,600.00 -1,067,935.00
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 627,000,000.00 31,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 627,000,000.00 31,000,000.00
22
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
Cash paid for settling debts 201,890,800.00 2,797,500.00
Cash paid for dividend and profit distributing or interest paying 20,312,256.75 9,562,956.11
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 222,203,056.75 12,360,456.11
Net cash flows arising from financing activities 404,796,943.25 18,639,543.89
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate 12,867.32 -49,705.92
V. Net increase of cash and cash equivalents -7,158,781.51 -2,318,523.09
Add: Balance of cash and cash equivalents at the period -begin 18,575,925.94 10,555,114.25
VI. Balance of cash and cash equivalents at the period -end 11,417,144.43 8,236,591.16
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
II. Audit Report
Whether the third quarter report was audited or not
□Yes √No
The third quarter report of the Company has not been audited
Board of Directors of
Shenzhen Zhongheng Huafa Co., Ltd.
25 October 2014
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