深圳中恒华发股份有限公司 2018 年半年度报告全文英文
SHENZHEN ZHONGHENG HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2018
August 2018
1
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as
the Company) 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.
Li Zhongqiu, Principal of the Company, Yang Bin, person in charger of
accounting works and Wu Aijie, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2018
Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
Concerning the forward-looking statements with future planning involved in the
Report, they do not constitute a substantial commitment for investors. Majority
investors are advised to exercise caution of investment risks.
Risks factors are being well-described in the Report, please found more in
relevant content.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
2
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Contents
Semi-annual Report 2018 ................................................................................................................ 2
Section I Important Notice and Paraphrase .................................................................................... 5
Section II Company Profile and Main Finnaical Indexes .............................................................. 8
Section III Summary of Company Business .................................................................................... 9
Section IV Discussion and Analysis of Operation ......................................................................... 15
Section V Important Events ............................................................................................................ 28
Section VI Changes in shares and particular about shareholders ............................................. 32
Section VII Preferred Stock ............................................................................................................ 33
Section VIII Particulars about Directors, Supervisors and Senior Executives ........................ 34
Section IX Corporate Bonds .......................................................................................................... 35
Section X Financial Report ........................................................................................................... 128
Section XI Documents Available for Reference ...............................................................................
3
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Paraphrase
Items Refers to Contents
Company, Shen Huafa Refers to SHENZHEN ZHONGHENG HUAFA CO., LTD.
Hengfa Technology Refers to Wuhan Hengfa Technology Co., Ltd.
Huafa Property Refers to Shenzhen Zhongheng Huafa Property Co., Ltd
Huafa Lease Refers to Shenzhen Huafa Property Lease Management Co., Ltd
Huafa Trade Refers to Wuhan Zhongheng Huafa Trade Co., Ltd.
Wuhan Zhongheng New Science & Technology Industrial Group
Wuhan Zhongheng Group Refers to
Co., Ltd.
HK Yutian Refers to Hong Kong Yutian International Investment Co., Ltd.
Hengsheng Photoelectricity Refers to Wuhan Hengsheng Photoelectricity Industry Co., Ltd.
Hengsheng Yutian Refers to Wuhan Hengsheng Yutian Industrial Co., Ltd.
Yutian Henghua Refers to Shenzhen Yutian Henghua Co., Ltd.
Huafa Hengtian Refers to Shenzhen Huafa Hengtian Co., Ltd.
Huafa Hengtai Refers to Shenzhen Huafa Hengtai Co., Ltd.
Shenzhen Vanke Refers to Shenzhen Vanke Real Estate Co., Ltd.
Vanke Guangming Refers to Shenzhen Vanke Guangming Real Estate Development Co., Ltd
4
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section II Company Profile and Main Finnaical Indexes
I. Company profile
Short form of the stock Shen Huafa A, Shen Huafa B Stock code 000020, 200020
Short form of the stock after
N/A
changed (if applicable)
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中恒华发股份有限公司
Chinese)
Short form of the Company
深华发
(in Chinese)
Foreign name of the
SHENZHEN ZHONGHENG HUAFA CO., LTD.
Company (if applicable)
Abbr. of the foreign name
N/A
(if applicable)
Legal representative Li Zhongqiu
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Yang Bin Niu Zhuo
33/F, No. 2 Building of Dachong 33/F, No. 2 Building of Dachong
Contact add. Business Center, Nanshan District, Business Center, Nanshan District,
Shenzhen Shenzhen
Tel. 0755-86360201 0755-86360201
Fax. 0755-86360206 0755-86360206
E-mail hwafainvestor@126.com.cn hwafainvestor@126.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2017
5
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2017
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes over last year
Current period Same period last year
(+,-)
Operating income (RMB) 340,984,843.24 439,480,144.17 -22.41%
Net profit attributable to shareholders of
2,793,133.60 2,146,472.00 30.13%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 2,053,467.02 1,477,201.29 39.01%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-26,671,325.63 -35,397,366.92 24.65%
activities(RMB)
Basic earnings per share (RMB/Share) 0.0099 0.0076 30.26%
Diluted earnings per share (RMB/Share) 0.0099 0.0076 30.26%
Return on Equity 0.87% 0.67% 上升 0.2 个百分点
Changes over period-end
Period-end Period-end of last year
of last year(+,-)
Total assets (RMB) 593,599,038.57 629,762,731.38 -5.74%
Net assets attributable to shareholder of
323,466,111.62 320,672,978.02 0.87%
listed company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
6
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including
-105,779.36
the write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
771,800.00
national standards, which are closely relevant to enterprise’s
business)
Gains/losses from entrusted investment or assets management 245,679.10
Other non-operating income and expenditure except for the
-56,944.69
aforementioned items
Less: Impact on income tax 115,088.47
Total 739,666.58 --
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
7
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
After years of development, the company has gradually formed two main businesses in industry and property
management. Among them, the industrial business mainly includes injection molding, POLYLON (light-weight
packaging materials), and complete machine production and sales of liquid crystal display, property management
business is mainly the lease of its own property.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets N/A
Fixed assets N/A
Intangible assets N/A
Construction in progress N/A
2. Main overseas assets
□ Applicable √ Not applicable
III. Core competitiveness analysis
Whether the company needs to comply with the disclosure requirements of the particular industry
No
All industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010 Shenzhen urban upgrade
planning. In the future, development and operation of self-owned land resources would become the income source of the Company
on a long-term and stable basis.
8
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section IV. Discussion and Analysis of Operation
1. Introduction
In the first half of 2018, due to the influence of the international and domestic environment, the home appliance industry had some
growth but the power was insufficient, the production and assembly of liquid crystal displays, injection-molded parts and foam parts
are traditional manufacturing industries which have already entered a mature stage and the demand have reached saturation, the
company overcame difficulties and responded positively, through the adjustment of product structure, the operating profit has been
guaranteed to increase while the operating income has slightly decreased.During the reporting period, the Company achieved
operation reveue of 340.98 million Yuan with a y-o-y declined of 22.41%; operation profit comes to 2.54 million Yuan with 30.73%
up from a year earlier; net profit amounted to 2.79 million Yuan, an increased of 30.13% on a y-o-y basis. In first half year, operation
revenue from industry prodcution has 323.37 million Yuan in total, a 22.84% declined from a year earlier, operation profit comes to
5.32 million Yuan with a y-o-y growth of 148.14%; the revenue earnes from propety leasing in first half year comes to 16.96 million
Yuan, a 12.43% declined over that of last year, and operating profit comes to (2.16) million Yuan with 1.92 million Yuan declined
from a year earlier.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
In RMB
Current period Same period last year y-o-y changes Reasons
Operating revenue 340,984,843.24 439,480,144.17 -22.41%
Operating cost 302,582,979.44 398,913,925.08 -24.15%
Sales expenses 8,433,363.31 7,363,051.86 14.54%
Administrative
20,400,985.42 24,085,956.74 -15.30%
expenses
Financial expenses 5,447,070.22 4,914,890.46 10.83%
Approved high-tech
enterprise in
Income tax expenses 463,831.41 723,746.91 -35.91% November 2017, the
income tax rate
declined
Net cash flow from
-26,671,325.63 -35,397,366.92 -24.65%
operating activities
Investment for new
Net cash flow from workshop, and renew
-6,545,541.50 -3,903,702.73 -67.68%
investment activities the aged production
equipment
Net cash flow from -21,012,832.62 7,520,619.22 -379.40% Bank loans paid in the
9
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
financing activities period
Net increase of cash Bank loans paid in the
-54,379,579.55 -32,170,554.64 -69.04%
and cash equivalent period
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of main business
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operating Gross profit se of gross
Operating cost se of operating se of operating
revenue ratio profit ratio
revenue y-o-y cost y-o-y
y-o-y
According to industries
Display 124,089,200.92 116,216,327.90 6.34% -49.18% -51.29% 4.06%
Plastic
injection 152,332,605.92 140,589,037.08 7.71% 15.41% 16.81% -1.11%
hardware
Foam 41,800,980.14 38,233,351.86 8.53% -0.69% 1.96% -2.38%
According to products
Display 124,089,200.92 116,216,327.90 6.34% -49.18% -51.29% 4.06%
Plastic
injection 152,332,605.92 140,589,037.08 7.71% 15.41% 16.81% -1.11%
hardware
Foam 41,800,980.14 38,233,351.86 8.53% -0.69% 1.96% -2.38%
According to region
Hong Kong 77,232,679.30 73,672,517.63 4.61% -46.95% -48.18% 2.27%
Central China 435,123,693.74 400,188,588.15 8.03% 59.58% 57.39% 1.28%
III. Analysis of the non-main business
□Applicable √ Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end last year Ratio
Notes of major changes
Amount Ratio in Amount Ratio in changes
10
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
total assets total assets
31,174,927.4 65,403,374.3
Monetary fund 5.25% 10.55% -5.30%
9 0
Account 167,657,397. 182,542,130.
28.24% 29.45% -1.21%
receivable 69 75
55,600,129.9 37,519,314.3
Inventory 9.37% 6.05% 3.32%
4 4
Investment real 51,546,044.3 29,404,574.4
8.68% 4.74% 3.94%
estate 0 4
Long-term
equity 0.00% 0.00% 0.00%
investment
84,346,192.6 108,018,926.
Fix assets 14.21% 17.43% -3.22%
9 67
Construction in
1,179,824.87 0.20% 654,356.00 0.11% 0.09%
process
Short-term 152,275,976. 85,012,392.0
25.65% 13.72% 11.93%
loans 01 0
Long-term 50,850,000.0
0.00% 8.20% -8.20%
loans 0
2. Assets and liability measured by fair value
□ Applicable √Not applicable
3. Assets right restriction till end of reporting period
Item Ending book value Restriction reasons
Bank acceptance bill
Monetary Fund
7,335,941.28
Notes receivable Pledge
8,332,469.80
Accounts receivable
Pledge
8,831,544.63
Investment real estate Bank loan secured
39,197,344.30
Fixed assets Bank loan secured
43,965,447.66
Liquidation of fixed Court closure
assets 92,857,471.69
11
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Intangible assets Bank loan secured
37,605,499.26
--
Total
238,125,718.62
V. Investment analysis
1. Overall situation
□ Applicable √Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √Not applicable
The Company has no securities investment in the Period.
(2) Derivative investment
□ Applicable √Not applicable
The Company has no derivatives investment in the Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √Not applicable
12
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Total Operating Operatin
Type Net Assets Net profit
name business capital assets revenue g profit
R&D,
production
and sales
of the
Hengfa
products as 450,381,74 220,913,55 323,374,70 5,318,38
Technolog Subsidiary 181643111 5,149,906.59
well as 1.80 2.90 5.00 9.86
y Company
import &
export
business
etc.
Leasing
Huafa and
-2,319,074. -511,272
Property Subsidiary manageme 1000000 413,406.43 649,049.51 -511,272.63
38 .63
Company nt of own
property
Leasing
Huafa and
1,900,692. -5,026,990.
Lease Subsidiary manageme 1000000 0.00 0.00 0.00
20 71
Company nt of own
property
Leasing
Huafa and
Hengtian manageme 1000000 996,582.86 996,582.86 0.00 -637.34 -637.34
Company nt of own
property
Leasing
Huafa and
Hengtai Subsidiary manageme 1000000 997,314.02 997,314.02 0.00 -636.71 -636.71
Company nt of own
property
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Explanation
Nil
13
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
VIII. Structured vehicle controlled by the Company
□ Applicable √Not applicable
IX. Prediction of business performance from January – September 2018
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
X. Risks and countermeasures
1. Operational risks of industrial business: industrial restructuring, fluctuations in raw material prices, decline in
market demand, and frustration of new product promotion.
Countermeasures: continue to open up the market, maintain the existing customers, positively develop new
customers, and continue to improve production efficiency;
2. Financial risks: large demands for funds, substantial increase or decrease in financial costs caused by exchange
rate fluctuations, and bank credit constraints caused by changes in financial costs and so on.
Countermeasures: pay close attention to macroeconomic policy trends, actively expand the financing channels,
establish a virtuous circle mechanism for funds, improve the service efficiency, and use financial instruments to
avoid exchange rate risks.
14
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor Index of
Session of meeting Type Date Date of disclosure
participation disclosure
http://www.cninfo.
com.cn/cninfo-ne
w/disclosure/szse_
Annual General
AGM 51.64% 2018-05-17 2018-05-18 main/bulletin_deta
Meeting of 2017
il/true/120495359
1?announceTime=
2018-05-18
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
II. Profit distribution plan in the period and capitalizing of common reserves plan
□ Applicable √Not applicable
The Company plans not to distribute cash dividend and bonus for the semi-annual, and no capitalizing of common reserves either.
III. Commitments that the actual controller, shareholders, related party, offeror and committed party as
the Company etc. have fulfilled during the reporting period and have not yet fulfilled by the end of
reporting period
□Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, offeror and committed party as the
Company etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √no
Un-audited
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
15
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
that issued by CPA
□ Applicable √Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √Not applicable
VII. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuits
Significant lawsuits and arbitrations
√Applicable □Not applicable
Amount of Advances
The basic The results and
money Predicted in Execution of
situation of effects of Disclosure Disclosur
involved (in liabilities litigation the litigation
litigation litigation date e index
10 thousand (Y/N) (Arbitrati (Arbitration)
(Arbitration) (Arbitration)
Yuan) on)
In September
2016, Wuhan
Made a
Zhongheng
ruling on
Group Co., Ltd. http://ww
16 August
and the w.cninfo.
2017; The
Company and com.cn/c
Company
Shenzhen Vanke ninfo-new
and
were applied for /disclosur
controllin
arbitration due to Found more in The court e/szse_ma
g
the dispute case 46,460 N announcement dismissed the 2018-08-25 in/bulletin
sharehold
of “Contract for of the Company claim _detail/tru
er
the Cooperative e/120532
propose
Operation of the 6846?ann
request
Old Projects at ounceTim
for ruling
Huafa Industrial e=2018-0
removal
Park, Gongming 8-25
in Feb.
Street,
2018
Guangming New
District”.
In March 2016, In Court decision http://ww
Case closed
Huafa Property Novembe as Jifang w.cninfo.
1,416.67 N and collected 2016-11-08
suit against the r 2016, Company has to com.cn/c
the site in
Shenzhen Jifang the paid 27.9023 ninfo-new
16
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Investment Co., Company million Yuan May 2018 /disclosur
Ltd. for site win in the (including e/szse_ma
occupation, ruling rental, in/bulletin
without rental, judged by administrative _detail/tru
and utilities paid Shenzhen fee, e/120281
for a long-time Arbitratio compensation, 7664?ann
n penalty, ounceTim
Commissi lawyer’s fee and e=2016-1
on arbitration fees) 1-08
in total for the
Company
In March 2016,
the Company
and Huafa
Science &
Technology suit
against the
follow
companies,
including
Shenzhen
http://ww
Huayongxing
w.cninfo.
Environmental
com.cn/c
Technology Co., The first
ninfo-new
Ltd., Shenzhen instance
/disclosur
Guangyong decision The second
e/szse_ma
Breadboard Co., has been instance
In publication in/bulletin
Ltd., Shenzhen 1,964.92 N issued, maintains the 2016-09-14
of judgment _detail/tru
Mingyi second judgment of the
e/120270
Electronic Co., instance first
2423?ann
Ltd., Shenzhen still in
ounceTim
Ouruilai trial
e=2016-0
Technology Co.,
9-14
Ltd and
07:41
Shenzhen
Kangzhengxin
Technology Co.,
Ltd., for arrears
of rent. and
refuse to move
the site, forcibly
occupied switch
board room and
other power unit
17
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
under the name
of the Company
The Company
and Huafa
http://ww
Property suit
2018.3.15 w.cninfo.
against Shenzhen
- Second com.cn/c
Jifang
instance ninfo-new
investment Co.,
decide the /disclosur
Ltd. and
Company e/szse_ma
Shenzhen
to win; in/bulletin
Jianianhua 73.38 N Verdict Case closed 2016-09-14
2018.3.26 _detail/tru
Foreign Trade
- e/120270
Clothing City
Applicati 2423?ann
Co., Ltd. for
on for ounceTim
refusing to paid
enforcem e=2016-0
the rents and
ent 9-14
administrative
07:41
fee without
justified reasons
In March 2016,
the Company http://ww
2018.3.15
and Huafa w.cninfo.
- Second
Property suit com.cn/c
instance
against Shenzhen ninfo-new
decide the
Huayongxing /disclosur
Company
Environmental e/szse_ma
to win,
Technology Co., Applied in in/bulletin
947.26 N and Verdict 2016-09-14
Ltd., and April _detail/tru
waiting
Shenzhen e/120270
the
Yidaxin 2423?ann
enforcem
Technology Co., ounceTim
ent
Ltd. for contract e=2016-0
applicatio
violation and 9-14
n
refuse to move 07:41
the site
Other lawsuits
□Applicable √ Not applicable
IX. Penalty and rectification
□Applicable √ Not applicable
The Company has no penalty and rectification in the period
18
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XI. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √Not applicable
The Company had no stock incentive plan, employee stock ownership plan or other employee incentive in the reporting period.
XII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Whet
Tradi
her
Relate ng
d over Cleari Availa
Propo limit Inde
Type Conte transa the ng ble Date
Relate rtion
of nt of Pricin ction appro form x of
Relate Relati d in appro simila of
relate relate g amou for
d onshi transa simila ved discl
d d princi nt ved relate r disclo
party p ction r
transa transa ple (in 10 (in 10 d osur
price transa limite marke sure
ction ction thousa transa
ctions thousa e
nd d or ction t price
Yuan) nd
not
Yuan)
(Y/N)
http:
//w
ww.
cnin
fo.c
Sharin
Synch om.c
g the Purch
ronize Telegr n/fin
same asing
HK Purch d with 5,792. 5,792. 48.53 29,29 aphic 2018- alpa
contro LCD N ——
Yutian ase the 22 22 % 3.65 transf 08-24 ge/2
lling monit
marke er 018-
shareh ors
t 08-2
older
4/12
033
745
88.P
DF
Hengs Sharin Purch Confir Telegr The http:
heng g the Purch asing med 2,732. 2,732. 22.89 22,78 aphic avera 2018- //w
N
Photo same ase LCD with 35 35 % 3.95 transf ge 08-24 ww.
electri contro monit 1% of er marke cnin
19
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
city lling ors curren t price fo.c
shareh t refers om.c
older marke to the n/fin
t price alpa
avera of ge/2
ge same 018-
price specif 08-2
in icatio 4/12
princi ns 033
ple, which 745
and is 88.P
refer search DF
to ed
both from
their throug
bargai h the
ning world
power famou
s
profes
sional
marke
t
surve
y
comp
any
websit
e
http://
www.
witsvi
ew.co
m
recog
nized
author
ity in
the
indust
ry and
LCD
profes
sional
20
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
marke
t
surve
y
comp
any
websit
e
http://
www.
witsvi
ew.co
m
http:
//w
Accor
ww.
ding
cnin
to the
fo.c
Sharin order
om.c
Hengs g the Purch price,
Telegr n/fin
heng same asing deduc
Purch 1,754. 1,754. 14.70 16,27 aphic 2018- alpa
Photo contro LCD ted 1 N ——
ase 27 27 % 4.25 transf 08-24 ge/2
electri lling monit Yuan
er 018-
city shareh ors each
08-2
older for
4/12
operat
033
ion
745
charge
88.P
DF
http:
//w
ww.
Accor
Sales cnin
Sharin ding
LCD fo.c
g the to the
overal Telegr om.c
same custo
HK l 6,323. 6,323. 49.68 38,14 aphic 2018- n/fin
contro Sales mer N ——
Yutian monit 19 19 % 6.84 transf 08-24 alpa
lling sales
or er ge/2
shareh order
machi 018-
older price
ne set 08-2
sure
4/12
033
745
21
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
88.P
DF
16,60 106,4
Total -- -- -- -- -- -- -- --
2.03 98.69
Detail of sales return with major
N/A
amount involved
In the reporting, Hengfa Technology purchased LCD from HK Yutian with US$ 9.0679
Report the actual implementation million approximately, 20.15% of the annual amount predicted at the beginning of the
of the daily related transactions year; purchased LCD from Hengsheng Photoelectricity with US $ 4.1301 million
which were projected about their approximately, 11.8% of the annual amount predicted at the beginning of the year;
total amount by types during the purchasing LCD from Hengsheng Photoelectricity with about US $ 2.6517 million,
reporting period(if applicable) 10.61% of the annual amount predicted at the beginning of the year; sold LCD whole
machine to HK Yutian with US $ 9.9215 million approximately, 16.54% of the annual
amount predicted at the beginning of the year.
Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related transactions by assets acquisition and sold
□Applicable √ Not applicable
No above mentioned transactions occurred
3. Main related transactions of mutual investment outside
□ Applicable √Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √Not applicable
No contact of related credit and debt in the period
5. Other related transactions
□ Applicable √Not applicable
The Company had no other significant related transactions in reporting period.
XIII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
22
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Related Actual date of Guaran
Name of the Announc happening Actual Implem tee for
Guarante Guarantee Guarantee
Company ement (Date of guarantee ented related
e limit type term
guaranteed disclosur signing limit (Y/N) party
e date agreement) (Y/N)
Guarantee of the Company and the subsidiaries
Related Actual date of Guaran
Name of the Announc happening Actual Implem tee for
Guarante Guarantee Guarantee
Company ement (Date of guarantee ented related
e limit type term
guaranteed disclosur signing limit (Y/N) party
e date agreement) (Y/N)
Wuhan Hengfa Joint
2018-04-
Technology Co., 30,000 3,877.6 liability One year N Y
24
Ltd. guarantee
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 30,000 6,267.12
subsidiaries in report period
report period (B1)
(B2)
Total amount of approved Total balance of actual
guarantee for subsidiaries at 30,000 guarantee for subsidiaries at 3,877.6
the end of reporting period the end of reporting period
23
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(B3) (B4)
Guarantee of the subsidiaries for the subsidiaries
Related Actual date of Comple
Guaran
Name of the Announc happening Actual te
Guarante Guarantee Guarantee tee for
Company ement (Date of guarantee implem
e limit type term related
guaranteed disclosur signing limit entation
party
e date agreement) or not
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 30,000 occurred guarantee in report 6,267.12
(A1+B1+C1) period (A2+B2+C3)
Total amount of approved Total balance of actual
guarantee at the end of report 30,000 guarantee at the end of 3,877.6
period (A3+B3+C2) report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in
11.99%
the net assets of the Company(that is A4+ B4+C4)
Including:
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees (if N/A
applicable)
Explanation on compound guarantee
(2) Guarantee outside against the regulation
□Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable √Not applicable
No other material contracts for the Company in reporting period.
XV. Social responsibility
1. Material environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
Not applicable
No
24
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2.Execution of social responsibility of targeted poverty alleviation
(1) targeted poverty alleviation
(2) Summary of targeted poverty alleviation
(3) Performance of the targeted poverty alleviation
Index Unit of measure Quantity /implementation
I. Overall condition —— ——
II. Poverty alleviation by items —— ——
1.Industry development —— ——
2.Shift employment —— ——
3. Relocating in other places —— ——
4. Education —— ——
5. Health —— ——
6.Ecological protection —— ——
7. Reveal all the details —— ——
8. Society —— ——
9.Other —— ——
III. Award received (content and grade) —— ——
(4) Follow-up targeted poverty alleviation scheme
XVI Explanation on other significant events
√Applicable □ Not applicable
(i) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were
referred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the
Company (namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district,
Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels were
A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of plan
for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and
joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first
extraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the
“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area at
Gongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Group
25
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
shall obtain the corresponding compensatory consideration for removal from the respectively owned project plots
and the respectively contributed and constructed above-ground buildings before the land development, it is
estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total
consideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held
on September 11, 2015 have considered and adopted the “Proposal on the project promotion and implementation
of urban renewal and the progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street,
Guangming New District, Shenzhen’”, the company has signed the “Agreement on the cooperation of urban
renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”,
“Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street,
Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement”
with Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan
Zhongheng Group”), Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and
Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA,
Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of urban renewal project of
the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” against the Company
and Wuhan Zhongheng Group. The arbitration court holds hearings on 12 November 2016 and 13 May 2017.
Shenzhen Court of International Arbitration (SCIA) has given a ruling in August 2017, although most of the
arbitration claims proposed by Shenzhen Vanke are rejected by arbitration court, the arbitration procedures and
so-called cognizance of fact of contract breach still has problems in arbitration. The results have damaged the
legitimate rights and interest of the Company, and we have putting forward the application for dismantling in
February 2018 to the Shenzhen Intermediate People’s Court. The Court dismissed the claim . Progress of the case
found more in the Notices released on Juchao website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16
Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017 ，9 Feb. 2018 and 25
August 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China
Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the
repurchase business day to 30 June 2017. on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares
held to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. The above mentioned
shares are deferred for repurchase of stock pledge by Wuhan Zhongheng Group; pledge expired on 31 December
2017. The trading day for repurchase put off to the date when pledge actually removed. Till end of this period
released, controlling shareholder still not removed the pledge and the Company has apply by letter, relevant
Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice released
on Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.
26
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(iii) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accounting
for 41.14% of total share capital. The above shares were judicially sealed on 27 September 2016, shares freeze
from 27 September 2016 to 26 September 2018. Details are set out in the announcement published at Juchao
information website (www.cninfo.com.cn) on 27 October 2016.
(iv) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as
"Jifang Investment") signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on
Leasing Contract", which were canceled on February 5, 2016. As Jifang Investment occupied the site, and
defaulted rent, management fee and water and electricity bills in the long term, in order to safeguard the legitimate
rights and interests, Huafa Property submitted a request for arbitration to Shenzhen Arbitration Commission on
March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration Commission in
November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at
www.cninfo.com.cn by the company on 8 November 2016. The sites are collected in May 2018
(v) Commitments of Major shareholder to Increase Shareholding
On November 20, and November 28, 2017, the controlling shareholders respectively made commitments to
increase the shareholding of 2.83 million shares of the company’s B Shares and no less than 2.8 million shares of
the company’s A Shares, with a commitment period of 6 months, and later, controlling shareholder applied
extending 6 months for commitment period. As of the disclosure date of this report, it’s still in the commitment
fulfillment period, and the commitment has not been fulfilled.
(vi) Mr. Zhang Guangliu, the company’s director and vice president, has applied for resignation from the
company’s director, vice president and special committee member under the board of directors due to a job
transfer. The new director’s by-election is still in progress, at present, the company’s board of directors has 5
members, which conforms to the legal minimum number of people.
XVII. Significant event of subsidiary of the Company
□ Applicable √Not applicable
27
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitali
New zation
Proporti Bonus Proporti
Amount shares of Others Subtotal Amount
on shares on
issued public
reserve
I. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%
283,161 100.00 283,161 100.00
II. Unrestricted shares 0 0 0 0 0
,227 % ,227 %
181,165 181,165
1. RMB Ordinary shares 63.98% 0 0 0 0 0 63.98%
,391 ,391
2. Domestically listed 101,995 101,995
36.02% 0 0 0 0 0 36.02%
foreign shares ,836 ,836
283,161 100.00 283,161 100.00
III. Total shares 0 0 0 0 0
,227 % ,227 %
Reasons for share changed
□Applicable √Not applicable
Approval of share changed
□ Applicable √Not applicable
Ownership transfer of share changed
□ Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √Not applicable
2. Changes of restricted shares
□ Applicable √Not applicable
II. Securities issuance and listing
□ Applicable √Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
28
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Total preference shareholders
Total common stock
with voting rights recovered at
shareholders in reporting 27,697 0
end of reporting period (if
period-end
applicable) (found in note8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Total Number of share
commo Amount Amount pledged/frozen
n of of
Proportio shareho Changes restricte un-restric
Full name of Nature of n of
lders at in report d ted
Shareholders shareholder shares
State of
held the end period commo common Amount
share
of n shares shares
report held held
period
Wuhan Domestic Pledged 11,648,989
11,648, 116,489,8
Zhongheng non-state-owned 41.14% 0 0
989 94 Frozen 11,648,989
Group legal person
SEG (HONG Pledged 0
Overseas legal 16,569, 16,569,56
KONG) CO., 5.85% 0 0
person 560 0 Frozen 0
LTD.
GOOD Pledged 0
HOPE
Overseas legal 12,700, 12,700,00
CORNER 4.49% 0 0
person 000 0 Frozen 0
INVESTME
NTS LTD
Changjiang Pledged 0
Securities
Overseas legal 5,355,2
Brokerage 1.89% 0 5,355,249
person 49 Frozen 0
(Hong Kong)
Co., Ltd.
Guoyuan Pledged 0
Securities
Overseas legal 3,820,6
Brokerage 1.35% 0 3,820,617
person 17 Frozen 0
(Hong Kong)
Co., Ltd.
LI SHERYN Overseas nature 1,038,3 Pledged 0
0.37% 0 1,038,300
ZHAN MING person 00 Frozen 0
Zhong Domestic nature Pledged 0
0.34% 959,174 0 959,174
Jiachao person Frozen 0
Li Senzhuang Domestic nature 0.34% 956,600 0 956,600 Pledged 0
29
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
person Frozen 0
Domestic nature Pledged 0
Han Yaming 0.31% 864,200 0 864,200
person Frozen 0
BINGHUA Overseas nature Pledged 0
0.30% 840,313 0 840,313
LIU person Frozen 0
Strategy investors or general
corporation comes top 10
N/A
shareholders due to rights issue (if
applicable) (see note 3)
Among the top ten shareholders, Wuhan Zhongheng Group neither bears associated
relationship with other shareholders, nor belongs to the consistent actor that are prescribed
Explanation on associated in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed
relationship among the aforesaid Companies. The Company neither knew whether there exists associated relationship among
shareholders 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.
Particular about top ten shareholders with un-restrict common shares held
Amount of un-restrict common shares held at Type of shares
Shareholders’ name
Period-end Type Amount
RMB common
Wuhan Zhongheng Group 11,648,989
share
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign
shares
Domestically
GOOD HOPE CORNER
12,700,000 listed foreign
INVESTMENTS LTD
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign
(Hong Kong) Co., Ltd.
shares
Domestically
Guoyuan Securities Brokerage
3,820,617 listed foreign
(Hong Kong) Co., Ltd.
shares
Domestically
LI SHERYN ZHAN MING 1,038,300 listed foreign
shares
RMB common
Zhong Jiachao 959,174
share
Li Senzhuang 956,600 Domestically
30
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
listed foreign
shares
Domestically
Han Yaming 864,200 listed foreign
shares
Domestically
BINGHUA LIU 840,313 listed foreign
shares
Expiation on associated Among the top ten unrestricted shareholders, the Company neither knew whether there
relationship or consistent actors exists associated relationship among the other tradable shareholders, nor they belong to
within the top 10 un-restrict consistent actors that are prescribed in Measures for the Administration of Disclosure of
common shareholders and Shareholder Equity Changes of Listed Companies. Among the top ten shareholders, Wuhan
between top 10 un-restrict Zhongheng Group neither bears associated relationship with other shareholders, nor belongs
common shareholders and top 10 to the consistent actor that are prescribed in Measures for the Administration of Disclosure
shareholders of Shareholder Equity Changes of Listed Companies.
Explanation on top 10 common
Among the top ten shareholders, Zhong Jiachao holds 959174 shares of the Company, of
shareholders involving margin
which, 591274 shares held by normal account, and 367900 shares held through credit
business (if applicable) (see note
security account
4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √Not applicable
The Company had no changes of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.
31
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section VII. Preferred Stock
□ Applicable √Not applicable
The Company had no preferred stock in the Period.
32
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section VIII. Particulars about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Found more in annual report 2017 for the changes of shares held by directors, supervisors and senior executives
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Deputy
Zhang
president, Election 2018-07-17 Occupation mobility
Guangliu
director
33
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section IX Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without
due on the date when semi-annual report approved for released or fail to cash in full on due
No
34
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section X. Financial Report
I. Audit report
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II．Financial statement
Currency used in note of financial statement is RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2018-06-30
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 31,174,927.49 68,812,495.97
Settlement provisions
Capital lent
Financial assets measured by fair
value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes receivable 24,212,827.29 64,778,266.65
Accounts receivable 167,657,397.69 148,795,998.26
Accounts paid in advance 24,345,708.97 943,328.01
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 9,993,555.22 4,335,729.72
Purchase restituted finance asset
35
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Inventories 55,600,129.94 60,387,021.65
Assets held for sale
Non-current asset due within one
year
Other current assets 46,253.01 52,310.51
Total current assets 313,030,799.61 348,105,150.77
Non-current assets:
Loans and payments on behalf
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment real estate 51,546,044.30 52,410,958.62
Fix assets 84,346,192.69 83,619,842.39
Construction in progress 1,179,824.87 654,356.00
Engineering material
Disposal of fixed asset 92,857,471.69 92,857,471.69
Productive biological asset
Oil and gas asset
Intangible assets 42,561,503.06 43,307,316.37
Expense on Research and
Development
Goodwill
Long-term expenses to be
774,951.44 141,666.55
apportioned
Deferred income tax asset 7,302,250.91 6,731,168.99
Other non-current asset 1,934,800.00
Total non-current asset 280,568,238.96 281,657,580.61
Total assets 593,599,038.57 629,762,731.38
Current liabilities:
Short-term loans 152,275,976.01 166,620,264.81
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
36
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Derivative financial liability
Notes payable 15,635,598.71 17,810,270.28
Accounts payable 60,514,300.33 84,004,870.73
Accounts received in advance 261,102.28 278,128.18
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 3,613,350.12 5,083,357.93
Taxes payable 10,562,817.51 15,136,277.68
Interest payable 136,176.72 164,895.80
Dividend payable
Other accounts payable 27,069,194.27 19,927,276.95
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Liability held for sale
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 270,068,515.95 309,025,342.36
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 270,132,926.95 309,089,753.36
37
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Owner’s equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -183,673,980.13 -186,467,113.73
Total owner’s equity attributable to
323,466,111.62 320,672,978.02
parent company
Minority interests
Total owner’s equity 323,466,111.62 320,672,978.02
Total liabilities and owner’s equity 593,599,038.57 629,762,731.38
Legal representative: Li Zhongqiu Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,454,274.31 25,181,764.87
Financial assets measured by fair
value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable
Account paid in advance 53,050.00
Interest receivable
Dividends receivable
38
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Other receivables 103,872,467.02 99,922,143.84
Inventories 14,806.50 14,806.50
Assets held for sale
Non-current assets maturing
within one year
Other current assets
Total current assets 105,394,597.83 125,118,715.21
Non-current assets:
Available-for-sale financial
assets
Held-to-maturity investments
Long-term receivables
Long-term equity investment 186,608,900.00 186,608,900.00
Investment real estate 26,978,905.02 27,583,299.22
Fix assets 4,665,395.35 6,821,367.58
Construction in progress 1,172,756.00 654,356.00
Project materials
Disposal of fixed assets 92,857,471.69 92,857,471.69
Productive biological assets
Oil and natural gas assets
Intangible assets 4,771,127.82 4,843,600.68
Research and development costs
Goodwill
Long-term deferred expenses 116,666.53 141,666.55
Deferred income tax assets 8,091,847.20 7,519,546.71
Other non-current assets
Total non-current assets 325,263,069.61 327,030,208.43
Total assets 430,657,667.44 452,148,923.64
Current liabilities:
Short-term borrowings 105,000,000.00 120,000,000.00
Financial liability measured by
fair value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes payable
39
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Accounts payable 9,740,367.33 10,745,840.16
Accounts received in advance 44,810.00 67,210.00
Wage payable 815,885.20 1,039,196.20
Taxes payable 7,447,979.03 9,305,468.70
Interest payable
Dividend payable
Other accounts payable 12,801,195.39 14,339,551.78
Liability held for sale
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 135,850,236.95 155,497,266.84
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64,411.00 64,411.00
Total liabilities 135,914,647.95 155,561,677.84
Owners’ equity:
Share capita 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
40
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Other comprehensive income
Reasonable reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -212,397,072.26 -210,552,845.95
Total owner’s equity 294,743,019.49 296,587,245.80
Total liabilities and owner’s equity 430,657,667.44 452,148,923.64
3. Consolidated Profit Statement
In RMB
Item Current Period Last Period
I. Total operating income 340,984,843.24 439,480,144.17
Including: Operating income 340,984,843.24 439,480,144.17
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 338,582,633.28 437,502,286.20
Including: Operating cost 302,582,979.44 398,913,925.08
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
Taxes and surcharge 1,712,293.39 2,317,887.45
Sales expenses 8,433,363.31 7,363,051.86
Administration expenses 20,400,985.42 24,085,956.74
Financial expenses 5,447,070.22 4,914,890.46
Losses of devaluation of asset 5,941.50 -93,425.39
Add: Changing income of fair
value(Loss is listed with “-”)
41
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Investment income (Loss is listed
245,679.10
with “-”)
Including: Investment
income on affiliated company and joint
venture
Exchange income (Loss is
listed with “-”)
Assets disposal income (Loss
-105,779.36 -33,321.94
is listed with “-”)
Other income
III. Operating profit (Loss is listed
2,542,109.70 1,944,536.03
with “-”)
Add: Non-operating income 887,662.07 925,733.76
Less: Non-operating expense 172,806.76 50.88
IV. Total Profit (Loss is listed with
3,256,965.01 2,870,218.91
“-”)
Less: Income tax expense 463,831.41 723,746.91
V. Net profit (Net loss is listed with
2,793,133.60 2,146,472.00
“-”)
(i) net profit from continuous
2,793,133.60 2,146,472.00
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
operation (Net loss is listed with “-”)
Net profit attributable to owner’s of
2,793,133.60 2,146,472.00
parent company
Minority shareholders’ gains and
losses
VI. Net after-tax of other
comprehensive income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
42
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of
held-to-maturity investment as
available-for-sale financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 2,793,133.60 2,146,472.00
Total comprehensive income
attributable to owners of parent 2,793,133.60 2,146,472.00
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0099 0.0076
(ii) Diluted earnings per share 0.0099 0.0076
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
43
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Legal representative: Li Zhongqiu Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company
In RMB
Item Current Period Last Period
I. Operating income 16,961,088.74 19,368,319.99
Less: Operating cost 2,510,518.82 2,104,257.94
Taxes and surcharge 585,014.62 1,295,896.25
Sales expenses
Administration expenses 11,134,855.37 13,448,031.17
Financial expenses 4,888,654.05 2,847,630.46
Losses of devaluation of
-93,425.39
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
Assets disposal income
(Loss is listed with “-”)
Other income
II. Operating profit (Loss is listed
-2,157,954.12 -234,070.44
with “-”)
Add: Non-operating income 50,111.89
Less: Non-operating expense 131,247.82 50.88
III. Total Profit (Loss is listed with
-2,289,201.94 -184,009.43
“-”)
Less: Income tax expense -444,975.63 -22,646.01
IV. Net profit (Net loss is listed with
-1,844,226.31 -161,363.42
“-”)
(i) net profit from continuous
-1,844,226.31 -161,363.42
operation (Net loss is listed with “-”)
(ii) net profit from discontinued
operation (Net loss is listed with “-”)
44
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
V. Net after-tax of other
comprehensive income
(I) Other comprehensive
income items which will not be
reclassified subsequently to profit of
loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the
investee accounted for using equity
method which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive
income items which will be
reclassified subsequently to profit or
loss
1. Share of the other
comprehensive income of the
investee accounted for using equity
method which will be reclassified
subsequently to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of
held-to-maturity investment as
available-for-sale financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
VI. Total comprehensive income -1,844,226.31 -161,363.42
VII. Earnings per share:
(i) Basic earnings per share -0.0065 -0.0006
(ii) Diluted earnings per share -0.0065 -0.0006
45
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
5. Consolidated Cash Flow Statement
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 195,284,689.59 245,041,670.12
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured savings
and investment
Net increase of amount from
disposal financial assets that
measured by fair value and with
variation reckoned into current
gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received
Other cash received concerning
3,010,278.37 1,905,715.83
operating activities
Subtotal of cash inflow arising from
198,294,967.96 246,947,385.95
operating activities
Cash paid for purchasing
commodities and receiving labor 158,655,192.45 216,567,324.72
service
Net increase of customer loans
46
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
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
35,688,181.95 36,300,498.57
workers
Taxes paid 12,954,614.98 9,434,091.06
Other cash paid concerning
17,668,304.21 20,042,838.52
operating activities
Subtotal of cash outflow arising from
224,966,293.59 282,344,752.87
operating activities
Net cash flows arising from operating
-26,671,325.63 -35,397,366.92
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
80,000,000.00
investment
Cash received from investment
253,638.00
income
Net cash received from disposal
of fixed, intangible and other 737,982.00 75,901.58
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
80,991,620.00 75,901.58
investing activities
Cash paid for purchasing fixed,
7,537,161.50 3,979,604.31
intangible and other long-term assets
Cash paid for investment 80,000,000.00
Net increase of mortgaged loans
Net cash received from
47
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from
87,537,161.50 3,979,604.31
investing activities
Net cash flows arising from investing
-6,545,541.50 -3,903,702.73
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 156,361,250.00 99,600,311.57
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
156,361,250.00 99,600,311.57
financing activities
Cash paid for settling debts 172,529,301.86 87,960,209.96
Cash paid for dividend and
4,844,780.76 4,119,482.39
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
177,374,082.62 92,079,692.35
financing activities
Net cash flows arising from financing
-21,012,832.62 7,520,619.22
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -149,879.80 -390,104.21
exchange rate
V. Net increase of cash and cash
-54,379,579.55 -32,170,554.64
equivalents
Add: Balance of cash and cash 81,474,974.30 104,015,312.97
48
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
equivalents at the period-begin
VI. Balance of cash and cash
27,095,394.75 71,844,758.33
equivalents at the period-end
6. Cash Flow Statement of Parent Company
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 11,824,697.08 10,850,641.39
services
Write-back of tax received
Other cash received concerning
107,677,057.73 37,579,467.16
operating activities
Subtotal of cash inflow arising from
119,501,754.81 48,430,108.55
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
1,812,043.81 2,524,734.01
workers
Taxes paid 3,627,519.72 2,236,783.63
Other cash paid concerning
116,155,663.65 37,794,518.68
operating activities
Subtotal of cash outflow arising from
121,595,227.18 42,556,036.32
operating activities
Net cash flows arising from operating
-2,093,472.37 5,874,072.23
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
49
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
investing activities
Cash paid for purchasing fixed,
1,696,400.00 1,377,592.31
intangible and other long-term assets
Cash paid for investment
Net cash received from
subsidiaries and other units
Other cash paid concerning
investing activities
Subtotal of cash outflow from
1,696,400.00 1,377,592.31
investing activities
Net cash flows arising from investing
-1,696,400.00 -1,377,592.31
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 100,000,000.00 15,000,000.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
100,000,000.00 15,000,000.00
financing activities
Cash paid for settling debts 116,054,041.68 15,000,000.00
Cash paid for dividend and
3,884,001.07 2,857,775.00
profit distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
119,938,042.75 17,857,775.00
financing activities
Net cash flows arising from financing
-19,938,042.75 -2,857,775.00
activities
IV. Influence on cash and cash 424.56 807.57
50
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
-23,727,490.56 1,639,512.49
equivalents
Add: Balance of cash and cash
25,181,764.87 10,375,152.87
equivalents at the period -begin
VI. Balance of cash and cash
1,454,274.31 12,014,665.36
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
Current period
Owners’ equity attributable to parent company
Other equity
instrument
Capit Other Total
Per Mino
Less: Provi
Shar al comp Reaso Surpl owne
Item petu rity
Pref Inven sion Retai
e publi rehen nable us rs’
al intere
erre tory of ned
capi c sive reserv reserv equit
capi Oth sts
d share gener profit
tal tal reserv inco e e y
er
stoc s al risk
sec e me
k
uriti
es
283,
I. Balance at the 146,5 77,39 -186, 320,6
161,
end of the last 87,27 1,593 467,1 72,97
227.
year 1.50 .25 13.73 8.02
00
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at 283, 146,5 77,39 -186, 320,6
51
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
the beginning of 161, 87,27 1,593 467,1 72,97
this year 227. 1.50 .25 13.73 8.02
00
III. Increase/
Decrease in this 2,793 2,793
year (Decrease ,133. ,133.
is listed with 60 60
“-”)
(i) Total 2,793 2,793
comprehensive ,133. ,133.
income 60 60
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
52
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
283,
IV. Balance at 146,5 77,39 -183, 323,4
161,
the end of the 87,27 1,593 673,9 66,11
227.
report period 1.50 .25 80.13 1.62
00
Last Period
In RMB
Last Period
Owners’ equity attributable to parent company
Other equity
instrument
Capit Other Total
Per Mino
Less: Provi
Shar al comp Reaso Surpl owne
Item petu rity
Pref Inven sion Retai
e publi rehen nable us rs’
al intere
erre tory of ned
capi c sive reserv reserv equit
capi Oth sts
d share gener profit
tal tal reserv inco e e y
er
stoc s al risk
sec e me
k
uriti
es
283,
I. Balance at the 146,5 77,39 -187, 319,6
161,
end of the last 87,27 1,593 441,5 98,56
227.
year 1.50 .25 23.12 8.63
00
Add:
Changes of
accounting
policy
Error
correction of the
53
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
last period
Enterprise
combine under
the same control
Other
283,
II. Balance at 146,5 77,39 -187, 319,6
161,
the beginning of 87,27 1,593 441,5 98,56
227.
this year 1.50 .25 23.12 8.63
00
III. Increase/
Decrease in this 974,4 974,4
year (Decrease
09.39 09.39
is listed with
“-”)
(i) Total 974,4 974,4
comprehensive
09.39 09.39
income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4 Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward internal
54
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
283,
IV. Balance at 146,5 77,39 -186, 320,6
161,
the end of the 87,27 1,593 467,1 72,97
227.
report period 1.50 .25 13.73 8.02
00
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Current period
Other equity instrument
Perpe
Less: Other
Share tual Capital Reason Retai Total
Item Invento compre Surplus
Prefer
capita capita public able ned owners
red Other ry hensive reserve
l l reserve reserve profit ’ equity
stock shares income
securi
ties
I. Balance at the 283,1 146,58 -210, 296,58
77,391,
end of the last 61,22 7,271.5 552,8 7,245.8
593.25
year 7.00 0 45.95 0
Add:
Changes of
55
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
accounting
policy
Error
correction of the
last period
Other
II. Balance at 283,1 146,58 -210, 296,58
77,391,
the beginning of 61,22 7,271.5 552,8 7,245.8
593.25
this year 7.00 0 45.95 0
III. Increase/
Decrease in this -1,84
-1,844,
year (Decrease 4,226.
226.31
is listed with 31
“-”)
(i) Total -1,84
-1,844,
comprehensive 4,226.
226.31
income 31
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
56
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 283,1 146,58 -212, 294,74
77,391,
the end of the 61,22 7,271.5 397,0 3,019.4
593.25
report period 7.00 0 72.26 9
Last period
In RMB
Last period
Other equity instrument
Perpe
Less: Other
Share tual Capital Reason Retai Total
Item Invento compre Surplus
Prefer
capita capita public able ned owners
red Other ry hensive reserve
l l reserve reserve profit ’ equity
stock shares income
securi
ties
I. Balance at the 283,1 146,58 -208, 299,03
77,391,
end of the last 61,22 7,271.5 106,9 3,178.3
593.25
year 7.00 0 13.40 5
Add:
Changes of
accounting
policy
Error
correction of the
last period
57
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Other
II. Balance at 283,1 146,58 -208, 299,03
77,391,
the beginning of 61,22 7,271.5 106,9 3,178.3
593.25
this year 7.00 0 13.40 5
III. Increase/
Decrease in this -2,44
-2,445,
year (Decrease 5,932.
932.55
is listed with 55
“-”)
(i) Total -2,44
-2,445,
comprehensive 5,932.
932.55
income 55
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
58
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 283,1 146,58 -210, 296,58
77,391,
the end of the 61,22 7,271.5 552,8 7,245.8
593.25
report period 7.00 0 45.95 0
III. Company profile
1. The registration place of the enterprise, the form of organization and the headquarters address
Shenzh Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company), established on 8 December
1981. uniform social cedit code 91440300618830372G.
Registered place and head office of the Company: 411 Bldg., Huafa (N) Road, Futian District, Shenzhen
Legal representative: Li Zhongqiu
Registered capital: RMB 283,161,227.00
2. The nature of the business and the main business activities
The Company belongs to the computer, telecommunication and manufacturing of other electronic equipment. Business scope:
producing and sales of vary colour TV set, liquid crystal disply, LCD (operates in branch), radio-recorder, sound equipment,
electronic eatch, electronic game and computers, the printed wiring board, precision injection parts, light packaging material
(operates in Wuhan) and hardware (including tool and mould) for various elctronic producs and supporting parts, plating and surface
treatment and tin wire, development and operation of real estate (Shen Fang Di Zi No.: 7226760) and property management. Funded
affiliated companies in Wuhan and Julin. Setting up branches in capital of the province (Lhasa City excluded) in China and
municipality directrly under the central government.
Relevant party offering approval reporting of financial statements and date thereof
3. The financial statement has been deliberated and approved by BOD on 24 August 2018. According to Article of Association, the
statement shall be submit for deliberation in shareholders general meeting.
Consolidate scope in the Period including: parent company – Shenzhen Zhongheng Huafa Company Limited, subsidiary including
Shenzhen Huafa Perpoerty Leasing Management Co., Ltd. (no annual inspection in 2011, and business license revoke on 1 April
2014 ), Shenzhen Zhongheng Huafa perperty Co., Ltd., Wuhan Hengfa Technology Co., Ltd., Shenzhen Huafa Hengtian Co., Ltd.
and Shenzhen Huafa Hengtai Co., Ltd. more of subsidiaries found in Note VII.-“Equity in other subjects”.
59
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards for Business Enterprise –
Basic Standards and specific principle of accounting standards issued by the Ministry of Finance, the Company prepared and
formulate the financial statement lies on the followed important accounting policy and estimation.
2. Going concern
The Company estimated that the production and sales of the Company, in 12 months since end of the period, will in a virtuous cycle.
We has good management and continuous operation ability, and there is no risk of continuing operations.
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
According to actual operation charateristic, the Group formulate specific accounting policy and accounting estimation, including
trade cycle, recognization and measurement on account bad debt provision of receivables, inventory measurement, classification and
depreciation method of fixed assets, intangible assets amortization and recognization and measurement of revenue etc.
1. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterprise and also a true and
thorough reflection to the relevant information as the Company’s financial position dated 30th June 2018 and the operation results as
well as cash flow for the first half of 2018.
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1st January to 31st December of every year.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle is the determining criterion for the
liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency.
60
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
5. Accounting methods for consolidation of enterprises under the same control or otherwise
(1) Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under common control satisfies the
combination consideration by payment of cash, transfer of non-cash assets or assumption of debt, the carrying value of the net assets
of the acquire in combined financial statement of the ultimate controller shared by the Company as at the combination date shall be
deemed as the initial investment cost of such long term equity investment. If the equity instrument issued by combining party are
consider as the combination consideration, than the total value of the issuing shares are consider as the share capital. The difference
between the initial cost of long-term equity investment and book value of consideration (or total face value of the shares issued) paid,
capital surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.
(2) Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the fair value of the assets paid,
liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control over the acquire as at the
acquisition date. As for acquiree that obtained by consolidation not under the same control, the qualified confirmation of identified
assets, liability and contingency liabilities should calculated by fair value on day of purchased. If the consolidation cost larger than
the fair value amount of indentified net assets from acquiree’s, the differences should be recognized as goodwill. If the consolidation
cost less than the fair value amount of indentified net assets from acquiree’s, the differences should reckoned into current gains/losses
after re-examination.
6. Preparation methods for consolidated financial statements
(1) Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the Company) into consolidated financial
statement, including companies controlled by the Company, non-integral part of the investees and structural main body.
(2) Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the necessary adjustment
is made on the subsidiaries’ financial statements in the preparation of the consolidated financial statements according to the
Company’s accounting policies and periods.
(3) Setoff of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the parent company and subsidiaries,
which offset the internal transactions incurred between the parent company and subsidiaries and within subsidiaries. The owner’s
equity of the subsidiaries not attributable to the parent company shall be presented as minority equity under the owner’s equity item
in the consolidated balance sheet. The long term equity investment of the parent company held by the subsidiaries, deemed as
treasury stock of the corporate group as well as the reduction of owners’ equity, shall be presented as “Less: treasury stock” under the
owners’ equity item in the consolidated balance sheet.
(4) Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under common control, the assets,
liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financial statements from the
beginning of the financial year in which the combination took place. When preparing the consolidated financial
statements, for the subsidiaries acquired from business combination not involving entities under common control, the
identifiable net assets of the subsidiaries are adjusted on the basis of their fair values on the date of acquisition.
61
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
7. Classification of joint arrangements and accounting treatment of joint operation
(1) Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. Joint arrangements achieved not through separate entities are
classified as joint operations. Separate entities refer to the entities with separate identifiable financial architecture including separate
legal entities and legally recognized entities without the qualification of legal entity. Joint arrangements achieved through separate
entities are generally classified as joint ventures. In case of changes in rights entitled to and obligations undertaken by the parties of
joint venture under a joint arrangement due to the changes in relevant facts and circumstances, the parties of joint venture will
re-assess the classification of joint arrangements.
(2) Accounting treatment for joint operations
The parties of joint operation should recognize the following items in relation to their share of interest in joint operation, and proceed
with accounting in accordance with the relevant provisions under the Accounting Standards for Business Enterprises: to recognize
their separate assets or liabilities held, and recognize the assets or liabilities jointly held according to their respective shares; to
recognize the income from the disposal of their output share under joint operation; to recognize the income from the disposal of
output under joint operation according to their respective shares; to recognize the expenses incurred separately, and recognize the
expenses incurred under joint operation according to their respective shares.
For the parties of a joint operation not under common control, if they are entitled to relevant assets and undertake relevant liabilities
of the joint operation, accounting will be carried out with reference to the provisions of the parties of joint operation; otherwise, it
should be subject to relevant Accounting Standards for Business Enterprises.
(3) Accounting treatment for joint ventures
The parties of a joint venture should perform accounting for investments by the joint venture in accordance with the Accounting
Standards for Business Enterprises No. 2 – Long-term Equity Investments. The parties not under common control should carry out
accounting depending on their influence on the joint venture.
8. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash and deposits available for payment
anytime. The cash equivalents recognized in the preparation of the cash flow statements refers to the investment held by the
Company with characteristic of short-term, strong mobility, easy transfer to known sum cash and has slim risk from value changes.
9. Foreign currency exchange and the conversion of foreign currency statements
(1) Foreign currency exchange
The foreign trading, shall be converted with the rates of exchange, released by People’s Bank of China at beginning of the current
month, when trading occurred. On the balance sheet day, the monetary items are converted on the current rate on the balance sheet
day, concerning the exchange differences between the spot exchange rate on that date and initial confirmation or the sport exchange
rate on previously balance sheet date, should reckoned in to current gains/losses except the capitalizing on exchange differences for
foreign specific loans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost are still
measured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged. Items of non-monetary
foreign currency which was calculated by fair value, should converted by spot exchange rate on the confirmation day of fair value,
difference between the converted amount of bookkeeping currency and original amount of bookkeeping currency, was treated as
changes of fair value (including exchange rate changed) reckoned into current gains/losses or recognized as other consolidated
62
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
income.
(2) Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises, and the affiliated
enterprises on the bookkeeping standard currency different from the Company’s, the accounting check and preparation of the
consolidated financial statements are made. Assets and liabilities items in the balance sheet are converted on the current rate on the
balance sheet day; owners’ equity items besides the “retained profit” item, the other items are converted on the actual rate. The
revenue and expenses, shall be converted with the rates of exchange, released by People’s Bank of China at beginning of the current
month, when trading occurred. The conversion difference of the foreign currency financial statements is listed specifically in the
owners’ equity in the balance sheet. The cash flow of foreign currency, which was recognized by systematic rational method, shall be
converted with the rates of exchange, released by People’s Bank of China at beginning of the current month, when trading occurred.
The cash influenced by the rate fluctuation is listed specifically in the cash flow statement. As for the foreign operation, the
conversion difference of the foreign currency statement related to the foreign operation is transferred in proportion into the disposal
of the current loss/gain.
10. Account receivable
(1) Account receivables with single major amount and withdrawal bad debt provision independently
Book balance of the account receivable with over 0.5 million
Criterion or amount standards of major single amount
Yuan
Withdrawal method for individual bad debt provision accrual Recognized on the difference between the book value and the
with major single amount concerned current value of the estimative future cash flow
(2) Account receivable with bad debt provision accrual by portfolio
Portfolio Accrued method for bad debts
Age portfolio Aging of accounts
Withdrawing bad bed provision by aging method in portfolio:
√ Applicable □ Not applicable
Accrued proportion of accounts Accrued proportion of other accounts
Account ages
receivable receivable
1－2 years 5.00% 5.00%
2－3 years 10.00% 10.00%
Over three years 30.00% 30.00%
Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
□ Applicable √ Not applicable
63
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(3) Account receivable with minor single amount but has individual bad debt provision accrual
Receivable has minor amount and can not reflect the risk
Reasons for individual bad debt prevision accrual
characteristic by withdrawing bad debt provision by group
Recognized on the difference between the book value and the
Accrued method for bad debt provision
current value of the estimative future cash flow
n11. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industry
No
(1) Categories of inventory
The inventory is goods or manufactured products held for sale, products in process, and materials and matters utilized in the
production or supply of labor. It mainly consists of the raw material, revolving materials, materials processed on commission,
wrappage, consumable low-value product, products in process, homemade semi-finished products and inventory goods etc.
(2) Accounting method for inventory delivery
When inventories are issued, the actual cost is determined by the first in first out method.
(3) Accrual method inventory falling price reserves
On the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value, and the provision
for the falling price reserves is accrued on each inventory item; however, as for the inventory of large quantity and low price, the
provision is accrued on the inventory category.
(4) Inventory system
Inventory system of the Company is perpetual inventory system
(5) Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
12. Long term equity investment
(1) Recognition of initial investment cost
Initial investment cost of long term equity investment obtained by corporate consolidation: in the case of the consolidation of
enterprises under the same control, recognized as the initial cost is the book value of the owners’ equity obtained from the
consolidated party; in the case of the consolidation of enterprises not under the same control, recognized as the initial cost is the
recognized consolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, the initial
investment cost is the actual purchase payment. As for the long term equity investment obtained by the equity securities offering, the
initial investment cost is the fair value of the equity securities. As for the long-term equity investment obtained by debt
reorganization, initial investment cost of such investment should determine by relevant regulation of the “Accounting Standards for
Business Enterprise No.12- Debt Reorganization”; As for the long term equity investment obtained by the exchange of the
non-monetary assets and the debts restructuring, the initial investment cost is recognized on the relevant rules in the Principles.
(2) Subsequent measurement and profit or loss recognition
Where the investor has a control over the investee, long-term equity investments are measured using cost method. Long-term equity
investments in associates and joint ventures are measured using equity method. Where part of the equity investments of an investor in
its associates are held indirectly through venture investment institutions, common fund, trust companies or other similar entities
including investment linked insurance funds, such part of equity investments indirectly held by the investor shall be measured at fair
64
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
value through profit or loss according to according to relevant requirements of Accounting Standards for Business Enterprises
No.22—Recognization and measurement of Financial Instruments regardless whether the above entities have significant influence on
such part of equity investments, while the remaining part shall be measured using equity method.
(3) Basis of conclusion for common control and significant influence over the investee
Joint control over an investee refers to where the activities which have a significant influence on return on certain arrangement could
be decided only by mutual consent of the investing parties sharing the control, which includes the sales and purchase of goods or
services, management of financial assets, acquisition and disposal of assets, research and development activities and financing
activities, etc.; Significant influence on the investee refers to that: significant influence over the investee exists when holding more
than 20% but less than 50% of the shares with voting rights or even if the holding is below 20%, there is still significant influence if
any of the following conditions is met: there is representative in the board of directors or similar governing body of the investee;
participation in the investee’s policy setting process; assign key management to the investee; the investee relies on the technology or
technical information of the investing company; or major transactions with the investee.
13. Investment real estate
Measurement for investment real estate
Cost method
Depreciation or amortization method
The leased buildings in the Company’s investment property adopts straight-line depreciation to calculate and
distill depreciation, specific accounting policy are same as part of the fixed assets. The leased land use rights in
the investment property and the land use rights to be transferred after appreciation adopt straight-line amortization,
specific accounting policy are same as part of the intangible assets.
14. Fixed assets
(1) Recognition
Fixed assets refers to the tangible assets holding for purpose of producing goods, providing labor services, leasing
or operation management, which has one accounting fiscal year of using life. Meanwhile as up to the following
conditions, they are recognized: the economic interest related to the fixed assets probably flow into the Company;
the cost of the fixed assets can be measured reliably.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation life (year) Salvage rate
rate
Straight-line
House building 20-50 10.00 1.80-4.50
depreciation
Straight-line
Machine equipment 10 10.00 9.00
depreciation
Straight-line
Mold equipment 3 10.00 30.00
depreciation
65
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Transportation Straight-line
5 10.00 18.00
equipment depreciation
Straight-line
Instrument equipment 5 10.00 18.00
depreciation
Straight-line
Tool equipment 5 10.00 18.00
depreciation
Straight-line
Office equipment 5 10.00 18.00
depreciation
The fixed assets of the Company mainly include buildings, machinery equipment, electronic equipment, transportation equipment,
etc.; the method of depreciation is based on the straight-line method. Determine the useful life and estimated net residual value of
fixed assets according to the nature and use of various types of fixed assets. At the end of the year, review the useful life, estimated
net residual value, and depreciation method of fixed assets, if there is a difference from the original estimate, make corresponding
adjustments. Except for the fixed assets that have been fully depreciated and continue to be used and the land that is separately
accounted for, the Company calculates and depreciates all fixed assets.
15. Project in progress
Project in progress of the Company divided as self-run construction and out-bag construction. The project in
progress of the Company carried forward as fixed assets while the construction is ready for the intended use.
Criteria of the expected condition for use should apply one of the follow conditions: The substance construction
(installation included) of the fixed assets has completed all or basically; As the projects have been in test
production or operation, and the results show that the assets can operate properly and produce the qualified
products stably, or the test operation result shows the assets can operate or open properly. The expenditure of the
fixed assets on the construction is a little or little. The fixed assets of the project constructed have been up to the
requirements of the design or contract, or basically up to.
16. Borrowing expenses
(1) Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it is
capitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on the
actual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capital
assets, investment real estate, and inventory reaching the expectant availability or sale ability.
(2) Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The period
of capitalization suspended is not included. The capitalization of borrowing expenses should be suspended while
the abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction or
production.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual
interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or the
66
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
return of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum is
recognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, and
times the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount or
premium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interest
expenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the future
cash flow in the expectant duration period as the current book value of the borrowing.
17. Intangible assets
(1) Accounting method, service life and impairment test
1. Accounting method of intangible assets
The Company’s intangible assets are measured initially on cost. The intangible assets purchased in are taken as the
actual cost on the actual payment and relevant expenditure. As for the intangible assets invested in by the
investors, the actual cost is recognized on the value stipulated in the contract or agreement; however, if what is
stipulated in the contract or agreement is not fair value, the actual cost is recognized on fair value. As for the
self-developed intangible assets, their cost is the actual total expenditure before reaching the expectant purpose.
The follow-up measurements of the Company’s intangible assets respectively are: the line amortization method is
taken on the intangible assets of finite service life, and at the yea-end, the check is taken on the service life and
dilution of the intangible assets, and the corresponding adjustment is made if there is inconsistency with the
previous estimative ones. As for the intangible assets of uncertain service life, it is not diluted, however, the
service life is checked at year-end; If there is solid evidence to its finite service life, its service life is estimated
and diluted in straight line method.
2. Judgment basis for uncertain service life
The Company will not be able to foresee the time limit within which the asset brings economic benefits to the
company, or the intangible assets with uncertain useful life identified as intangible assets with uncertain useful life.
The basis for judging the uncertainty of useful life is from the contractual rights or other legal rights, but the
contract stipulates or the law rules there is no definite useful life; combining the same industry case and or the
relevant expert argumentation, it is still incapable of judging the time limit within which the intangible assets
bring economic benefits to the company.
At the end of each year, review the useful life of intangible assets with indefinite useful life by mainly adopting
the bottom-up method, the relevant departments of intangible assets take the basic review and evaluate whether
there is any change in the judgment basis for indefinite useful life.
(2) Accounting policies for internal research and development expenditure
Expenditures for internal research and development projects at the research phase shall be included in the current
profit or loss when incurred; expenditures incurred at the development phase and recognized as intangible assets
67
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
shall be transferred to intangible assets accounting.
18. Long-term investment impairment
Long-term equity investments, investment properties measured at cost and long-term assets such as fixed assets,
construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets and
goodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. If
the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount,
a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future
cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective of
whether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carrying
amount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonable
basis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to
each of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higher
than its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of the
goodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (other
than the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of each
asset.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
19. Long-term deferred expenditure
The Company’s long-term deferred expenditure are expenses paid out and with one year above (1-year included)
benefit period. The long-term unamortized expenses are diluted by periods according to the benefit period. As the
long-term unamortized expenses cannot enable the accounting period’s beneficiary, all dilution values of the
project undiluted yet, are transferred into the current loss/gain.
20. Employees benefits
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profit
or loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for the
current period. At the time of actual occurrence, The Company’s employee benefits are recorded into the profits
and losses of the current year or assets associated costs according to the actual amount. The non-monetary
employee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injury
68
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
insurance, maternity insurance and other social insurances, housing fund and labor union expenditure and
personnel education that the Company paid for employees, the Company should recognize corresponding
employees benefits payable according to the appropriation basis and proportion as stipulated by relevant
requirements and recognize the corresponding liabilities and include these expenses in the profits or losses of the
current period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable calculated under
defined contribution scheme shall be recognized as a liability and recorded in profit and loss of the current period
or in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method and
attribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to the
service period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlier
of the following dates: when the Company can no longer withdraw the offer of those benefits; and when the
Company recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefits
The Company provides other long-term employee benefits to its employees. For those falling within the scope of
defined contribution scheme, the Company shall account for them according to relevant requirements of the
defined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets of
the other long-term employee benefits according to relevant requirements of the defined contribution scheme.
21. Accrual liability
The obligation related to contingencies is the current obligation assumed by the company, and performing this
obligation may result in an outflow of economic benefits, and this obligation can be determined as the estimated
liabilities when the amount can be reliably measured. The Company makes initial measurement in accordance
with the best estimate for performing the related current obligation, if the expenditure as needed has a continuous
range, and the likelihood of occurrence of various results in this range is the same, the best estimate is determined
by the median value within the range; if a number of items are involved, the best estimate is determined by the
calculation of various possible outcomes and related probabilities.
At the balance sheet date, the book value of estimated liabilities should be rechecked, if there is conclusive
evidence indicates that this book value cannot truly reflect the current best estimate, and then the book value
should be adjusted in accordance with the current best estimate.
22. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
69
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
1. Sales of goods
The Company shall ascertain the revenue incurred by selling goods in accordance with the received or receivable
price stipulated in the contract or agreement signed between the enterprise and the buyer unless the following
conditions are met simultaneously: ① the significant risks and rewards of ownership of the goods have been
transferred to the buyer by the enterprise; ② the enterprise retains neither continuous management right that
usually keeps relation with the ownership nor effective control over the sold goods; ③the relevant amount of
revenue can be measured in a reliable way; ④ relevant economic benefits may flow into the enterprise and ⑤ the
relevant costs incurred or to be incurred can be measured in a reliable way.
Money collection for the contract or agreement use the mode of deferred, actually has the financing features. The
revenue of commodity sales is recognized by the fair value of the money receivable on contract or agreement.
2. Labor service providing
If an enterprise can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the
labor services it provides, it shall recognize the revenue from providing services employing the
percentage-of-completion method. The enterprise can ascertain the schedule of completion
(percentage-of-completion) under the transaction concerning the providing of labor services based on calculation
of completed works.
If an enterprise cannot, on the date of the balance sheet, measure the result of a transaction concerning the
providing of labor service in a reliable way, it shall be conducted in accordance with the following circumstances,
respectively: ①if the cost of labor services incurred is expected to be compensated, the revenue from the
providing of labor services shall be recognized in accordance with the amount of the cost of labor services
incurred, and the cost of labor services shall be carried forward at the same amount; ②if the cost of labor services
incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, and
no revenue from the providing of labor services may be recognized.
3. Transition of asset use right
When economic benefits relating to transition of asset use right is likely to inflow into the Company and the
relevant income can be measured reliably, the Company shall recognize such income from transition of asset use
right.
The Company’s specific income recognition method: it is recognized as income when the product has been sent
out and signed for receipt by the other party for domestic sales; it is recognized as income when the product has
been shipped and its customs procedures have been completed with the relevant declaration documents for export
sales. Income from house leases and property management is recognized according to the lease contract
agreement, receipt of relevant payments, or relevant collection proof.
23. Government subsidy
(1) Determination basis and accounting treatment for government grants related to assets
Government grant obtained by the Company for the purpose of constructing or otherwise forming long term assets
70
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
is recognized as government grant related to assets. The specific projects for which the government documents
have specified the subsidies should be divided according to the relative proportion of the amount paid for forming
assets and the amount paid included in costs in the budgeting of the specific project, and the dividing ratio needs
to be rechecked on each balance sheet date, and be changed if necessary. Government grants related to assets are
recognized as deferred income. The amount recognized as deferred income shall be included in the current profit
and loss in a reasonable and systematic way within the useful life of the relevant assets. Those related to the daily
activities of the Company are included in other income, and those not related to the daily activities of the
Company are included in non-operating income.
Government grants measured on the basis of nominal amounts are directly included in the current profit or loss.
(2) Determination basis and accounting treatment for government grants related to income
The government documents only make general statements on the use, and those not specified as special items are
regarded as government grants related to income.
Government grants related to income are treated in the following situations respectively: those used to compensate
the related expenses or losses of the enterprise in the subsequent period shall be recognized as deferred income
and shall be included in the current profit or loss during the period of confirming related expenses. Those used to
compensate the occurred related expenses or losses of the enterprise shall be directly included in the current profit
and loss. When being included in the current profits and losses, the government grants related to the Company’s
daily activities are included in other income; government grants that are not related to the Company’s daily
activities are included in non-operating income.
24. Deferred income tax asset / deferred income tax liability
1. Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for an item
that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law, the tax
base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall be
determined according to the applicable tax rate in period of assets expected to recover or liability expected to pay
off.
2. The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which it is
most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheet date,
if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct the deductible
temporary difference, the un-confirmed deferred income tax assts in previous accounting period shall be
recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred income tax
assets, book value of the deferred income tax assets shall be kept in decreased.
3. The taxable temporary differences related to the investments of subsidiary companies and associated enterprises
shall recognized as deferred income tax liability, unless the Company can control the time of the reverse of
temporary differences and the temporary differences are unlikely to be reversed in the expected future. As for the
71
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
deductible temporary difference related to the investment of the subsidiary companies and associated enterprises,
deferred income tax assets shall be recognized while the temporary differences are likely to be reversed in the
expected future and it is likely to acquire any amount of taxable income tax that may be used for making up the
deductible temporary differences.
25. Leasing
(1) Accounting treatment for operating lease
Accounting treatment for operating lease: Operating lease payments are recognized on a straight-line basis over
the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the
period.
(2) Accounting treatment for finance lease
Accounting treatment for finance lease: At the commencement of the lease term, the Group records the leased
asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum
lease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge,
using the effective interest method amortization during the lease term. Minimum lease payments deducting
unrecognized financing charges are listed as long-term payables.
26. Other important accounting policy and estimation
The company does not disclose other important accounting policies and accounting estimates.
27. Changes in important accounting policies and estimates
(1) Changes in important accounting policies
□Applicable √Not applicable
(2) Changes in important accounting estimates
□Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
Taxes Taxation basis Tax rate
VAT Domestic sales revenue 16%, 6%, 5%, 3%
Urban maintenance and construction tax Transfer tax payable 7%
72
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Corporate income tax Taxable income 15、25%
Educational surtax Transfer tax payable 3%
Local educational surtax Transfer tax payable 1.5%
Property tax 70% of original value of the property 1.2%
Explain the different taxation entity of the enterprise income tax
Taxation entity Income tax rate
Shenzhen Zhongheng Huafa Co., Ltd. 25%
Wuhan Hengfa Technology Co., Ltd. 15%
2. Tax preferences
According to the “Measures for the Determination of High-tech Enterprises”, and through the enterprise
application, expert review, and public announcement and other procedures, the Company’s wholly-owned
subsidiary, Wuhan Hengfa Technology Co., Ltd., has been identified as a high-tech enterprise, and obtained the
“High-tech Enterprise Certificate” jointly issued by the Science and Technology Department of Hubei Province,
Hubei Provincial Finance Department, Hubei Provincial Office, SAT, and Local Taxation Bureau of Hubei
Province on November 28, 2017, the certificate number is GR201742001840, which is valid for 3 years. The
applicable corporate income tax rate of the subsidiary Wuhan Hengfa Technology Co., Ltd. for 2017 was 15%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
Item Closing balance Opening balance
Cash on hand 270,703.35 170,053.77
Bank deposit 23,568,282.86 66,070,891.82
Other monetary fund 7,335,941.28 2,571,550.38
Total 31,174,927.49 68,812,495.97
Other explanation
Other monetary funds are bank acceptance deposits.
2. Note receivable
(1) Category
In RMB
Item Closing balance Opening balance
73
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Bank acceptance bill 21,849,876.46 37,676,025.26
Commercial acceptance bill 2,362,950.83 27,102,241.39
Total 24,212,827.29 64,778,266.65
(2) Note receivable pledged at period-end
In RMB
Item Amount pledged at period-end
Bank acceptance bill 8,332,469.80
Total 8,332,469.80
(3) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet
date
In RMB
Un de-recognization amount at
Item De-recognization amount at period-end
period-end
Bank acceptance bill 32,786,491.34
Commercial acceptance bill 55,168,339.11
Total 87,954,830.45
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item Amount transfer to receivable at period-end
Other explanation
Nil
3. Account receivable
(1) Category of account receivable
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Accrua value Amo Proport Accrual value
Amount
t ion t l ratio unt ion ratio
Account receivable 7,556,3 4.18% 7,556,3 100.00 7,556 4.67% 7,556,3 100.00%
74
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
with single 63.72 63.72 % ,363. 63.72
significant amount 72
and withdrawal
bad debt provision
separately
Account receivable
167,65 167,65 148,8
with bad debt 92.73 91.88 8,352.0 148,795,
7,625.9 228.30 0.00% 7,397.6 04,35 0.01%
provision accrual % % 8 998.26
9 9 0.34
by portfolio
Accounts with
single significant
5,592
amount and bad 5,592,8 5,592,8 100.00 5,592,8
3.09% ,838. 3.45% 100.00%
debts provision 38.19 38.19 % 38.19
19
accrued
individually
180,80 167,65 161,9
100.00 13,149, 100.00 13,157, 148,795,
Total 6,827.9 7,397.6 53,55
% 430.21 % 553.99 998.26
0 9 2.25
Account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Account receivable (by Closing balance
units) Account receivable Bad debt reserve Accrual ratio Accrual reasons
Shenzhen Portman
Bowling Club Co., 2,555,374.75 2,555,374.75 100.00% Un-recyclable
Ltd.
Hong Kong Haowei
1,870,887.18 1,870,887.18 100.00% Un-recyclable
Industry Co. Ltd.
TCL ACE ELECTRIC
APPLIANCE
1,325,431.75 1,325,431.75 100.00% Un-recyclable
(HUIZHOU) CO.,
LTD.
Qingdao Haier Parts
1,225,326.15 1,225,326.15 100.00% Un-recyclable
Procurement Co., Ltd.
SKYWORTH
Multimedia 579,343.89 579,343.89 100.00% Un-recyclable
(Shenzhen) Co., Ltd.
Total 7,556,363.72 7,556,363.72 -- --
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
75
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
In RMB
Closing balance
Account age
Account receivable Bad debt provision Accrual ratio
Sub-item of within one year
Subtotal of within one year 167,655,343.02
2-3 year 2,282.97 228.30 10.00%
Over 3 years 0.00
Total 167,657,625.99 228.30
Explanation on portfolio basis:
Nil
Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
Accounts with single significant amount and bad debts provision accrued individually at period-end
Debtor Book balance Bad debt Accrual ratio (%) Reasons
Shenzhen
Huixin Video
381,168.96 381,168.96 100.00 Uncollectible
Technology
Co., Ltd.
Shenzhen
Wandelai
Digital 351,813.70 351,813.70 100.00 Uncollectible
Technology
Co., Ltd.
Shenzhen
Dalong
344,700.00 344,700.00 100.00 Uncollectible
Electronic Co.,
Ltd.
Shenzhen Keya
Electronic Co., 332,337.76 332,337.76 100.00 Uncollectible
Ltd.
Yuehai
International
323,405.97 323,405.97 100.00 Uncollectible
Shipping
Limited
Shenzhen
Qunping 304,542.95 304,542.95 100.00 Uncollectible
Electronic Co.,
76
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Ltd.
China Galaxy
Electronics
288,261.17 288,261.17 100.00 Uncollectible
(Hong Kong)
Co., Ltd.
Dongguan
Weite
274,399.80 274,399.80 100.00 Uncollectible
Electronic Co.,
Ltd.
Hong Kong
New Century
207,409.40 207,409.40 100.00 Uncollectible
Electronics Co.,
Ltd.
Shenyang
Beitai
203,304.02 203,304.02 100.00 Uncollectible
Electronic Co.,
Ltd.
Beijing
Xinfang Weiye
193,000.00 193,000.00 100.00 Uncollectible
Technology
Co., Ltd.
TCL
Electronics
145,087.14 145,087.14 100.00 Uncollectible
(Hong Kong)
Co., Ltd.
Huizhou TCL
Xinte
142,707.14 142,707.14 100.00 Uncollectible
Electronics Co.,
Ltd.
SkyWorth –
RGB Electronic 133,485.83 133,485.83 100.00 Uncollectible
Co., Ltd.
Shenzhen
Jifang
15,860.00 15,860.00 100.00 Uncollectible
Investment Co.,
Ltd.
Other 1,951,354.35 1,951,354.35 100.00 Uncollectible
Total
5,592,838.19 5,592,838.19
77
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(2) Bad debt
Name Closing balance Proportion of provision accrual,
switch-back or
taken back in the
period
Bad debt provision
accrual was 0.00
Yuan; the amount
collected or switches
back amounting to
8,123.78 Yuan.
Including major
amount of bad debt
provision that switch-back or taken back in the Period:
In RMB
Company Amount switch back or taken back Way
Nil
(3)Account receivable actual charge off in the period
In RMB
Item 核销金额
Major charge-off for the major receivable:
In RMB
Resulted by
Charge –off
Company Nature Amount charge-off Reasons related transaction
procedures
(Y/N)
Explanation:
Nil
(4) Top five receivables collected by arrears party at ending balance
78
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
the total amount
of advance
payment (%)
Qingdao Haidayuan purchasing Service Co., Ltd. 47.94%
86,684,100.72
Hong Kong Yutian International Investment Co., Ltd. 19.27%
34,850,150.19
View Sonic Technology (China) Co., Ltd. 8.98%
16,244,585.02
TCL Air-Conditioner (Wuhan) Co., Ltd. 10.30%
18,623,391.95
Wuhan Edmund Polytron Technology Co., Ltd. 2.35%
4,239,952.77
Total 88.85%
160,642,180.65
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
Nil
Other explanation:
Nil
4. Prepayments
(1) Prepayments listed by account age
In RMB
Closing balance Opening balance
Account age
Amount Proportion Amount Proportion
Within one year 24,066,072.03 98.85% 937,895.64 99.42%
1-2 year 54,266.97 0.22% 3,732.52 0.40%
2-3 year 225,369.97 0.93% 1,699.85 0.18%
Total 24,345,708.97 -- 943,328.01 --
Explanation on prepayments with over one year in age and reasons of un-settle:
Nil
79
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(2) Top 5 prepayments collected by objects at ending balance
Ratio in total
Company Ending balance
prepayments (%)
Haier Digital Technology (Qingdao) Co., Ltd. 29.87%
7,271,076.69
Guangdong Yizhimi Precision Injection
17.08%
Tech.Co., Ltd 4,158,000.00
Guangzhou Shiyuan Electronic Technology
7.99%
Co., Ltd. 1,946,225.29
Kunshan Zhongji Mould Co., Ltd. 7.87%
1,916,600.00
Wuhan Qingkai Construction Group Co., Ltd. 6.34%
1,543,609.80
Total 69.15%
16,835,511.78
Other explanation:
Nil
5. Other account receivable
(1) Category of other account receivable
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Accrua value Amo Proport Accrual value
Amount
t ion t l ratio unt ion ratio
Other account
receivable with
single significant 6,722
6,722,6 26.60 6,722,6 100.00 34.28 6,722,6
amount and 0.00 ,602. 100.00% 0.00
02.71 % 02.71 % % 02.71
withdrawal bad 71
debt provision
separately
Other account 4,528
10,186, 40.31 193,09 9,993,5 23.09 193,093 4,335,72
receivable with bad 1.90% ,823. 4.26%
648.94 % 3.72 55.22 % .72 9.72
debt provision 44
80
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
accrual by
portfolio
Other account
receivable with
single minor 8,359
8,359,6 33.08 8,359,6 100.00 42.63 8,359,6
amount but 0.00 ,643. 100.00% 0.00
43.58 % 43.58 % % 43.58
withdrawal single 58
item bad debt
provision
19,61
25,268, 100.00 15,275, 9,993,5 100.00 15,275, 4,335,72
Total 1,069
895.23 % 340.01 55.22 % 340.01 9.72
.73
Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Closing balance
Other account
Other account
receivable (units) Bad debt provision Accrual ratio Accrual reason
receivable
Shenzhen Jifang
1,071,160.00 1,071,160.00 100.00% Partly recoverable
Investment Co., Ltd.
Portman 4,021,734.22 4,021,734.22 100.00% Un-recyclable
Without bad debt risk
Zhao Baomin 553,901.68 553,901.68 100.00% Un-recyclable
Traffic accident
555,785.81 555,785.81 100.00% Un-recyclable
compensation
Hebei Botou Court 520,021.00 520,021.00 100.00% Un-recyclable
Total 6,722,602.71 6,722,602.71 -- --
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
In RMB
Closing balance
Account age
Other account receivable Bad debt provision Accrual ratio
Sub-item of within one year
Subtotal of within one year 7,106,228.94
1-2 year 2,943,020.00 151,873.72 5.16%
Over 3 years 137,400.00 41,220.00 30.00%
Total 10,186,648.94 193,093.72
Explanation on portfolio basis:
81
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Withdrawing bad bed provision by percentage of total other accounts receivable outstanding in portfolio
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
√ Applicable □ Not applicable
Other account receivable with single minor amount but withdrawal single item bad debt provision at period-end
Debtor Book balance Bad debt Accrual ratio Reasons
Electricity fee in Gongming canteen Uncollectible
489,214.70 489,214.70 100.00
Jiantao (Fogang) Laminates Co., Ltd. Uncollectible
465,528.10 465,528.10 100.00
Labor union Uncollectible
332,402.55 332,402.55 100.00
Lu Wei Uncollectible
290,000.00 290,000.00 100.00
4/F hotel Dai Qiangbo
Uncollectible
194,569.00 194,569.00 100.00
Chuangjing Uncollectible
192,794.00 192,794.00 100.00
Shenzhen Mingli Co., Ltd. Uncollectible
170,394.84 170,394.84 100.00
Other Units
Uncollectible
6,224,740.39 6,224,740.39 100.00
Total —— ——
8,359,643.58 8,359,643.58
(2) Bad debt provision accrual, switch-back or taken back in reporting period
Bad debt provision accrual was 0.00 Yuan; the amount collected or switches back amounting to 0.00 Yuan.
Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
Company Amount switch-back or taken back Way
Nil
(3) Other receivables actually charge-off during the reporting period
In RMB
Item Amount charge-off
Major amount of other receivable charge-off:
In RMB
82
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Resulted by
Charge –off
Company Nature Amount charge-off Reasons related transaction
procedures
(Y/N)
Explanation:
Nil
(4) Classify according to nature
In RMB
Nature Ending book balance Opening book balance
Margin 1,793,485.04 1,793,485.04
Borrow money 1,785,713.06 2,190,666.85
Intercourse funds 12,429,737.18 9,081,233.88
Rent receivable 9,088,088.00 5,857,777.46
Other 171,871.95 687,906.50
Total 25,268,895.23 19,611,069.73
(5) Top 5 other receivables collected by arrears party at ending balance
In RMB
Proportion in total
Ending balance of
Company Nature Closing balance Account age other receivables
bad debt provision
at year-end
Portman Rent receivable 4,021,734.22 Over 3 years 15.92% 4,021,734.22
Shenzhen Jifang
Investment Co., Rent receivable 1,071,160.00 Over one year 4.24% 1,071,160.00
Ltd.
Wuwu Branch of
Shenzhen
Premium for lease 740,909.97 Within one year 2.93%
Dachong
Industrial Co., Ltd.
Zhao Baomin Rent receivable 553,901.68 Over 3 years 2.19% 564,646.35
Traffic accident
Intercourse funds 555,785.81 Over 3 years 2.20% 555,785.81
compensation
Total -- 6,943,491.68 -- 6,213,326.38
(6) Account receivables related to government subsidies
In RMB
83
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Time, amount and
Account age at
Company Name of subsidy Closing balance basis for recovery
period-end
expectation
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
Nil
Other explanation;
Nil
6. Inventory
(1)Category of inventory
In RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
price fall-down price fall-down
Raw materials 30,601,378.64 937,858.86 29,663,519.78 29,640,518.78 937,858.86 28,702,659.92
Goods in
739,156.75 739,156.75 119,575.09 119,575.09
process
Inventory
23,088,750.36 1,660,379.81 21,428,370.55 29,291,605.18 1,660,379.81 27,631,225.37
goods
Revolving
0.00
material
Consumptive
biological 0.00
assets
Assets without
settled but
completed
0.00
resulted from
construction
contract
Low priced and
721,411.93 85,692.51 635,719.42 587,236.21 85,692.51 501,543.70
easily worn
84
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
articles
Homemade
semi-finished 3,134,807.69 1,444.25 3,133,363.44 3,433,461.82 1,444.25 3,432,017.57
products
Total 58,285,505.37 2,685,375.43 55,600,129.94 63,072,397.08 2,685,375.43 60,387,021.65
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock Exchange
No.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Provision for price fall-down
In RMB
Current increased Current decreased
Opening Closing
Item Switch back or
balance Accrual Other Other balance
Written-off
Raw materials 937,858.86 937,858.86
Inventory
1,660,379.81 1,660,379.81
goods
Low priced and
easily worn 85,692.51 85,692.51
articles
Homemade
semi-finished 1,444.25 1,444.25
products
Work in
process-outsour
ced
Total 2,685,375.43 2,685,375.43
Nil
(3) Explanation on capitalization of borrowing costs in ending balance of inventory
Nil
(4) Assets completed without settle resulted by construction contract at period-end
In RMB
Item Amount
Other explanation:
Nil
85
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
7. Other current assets
In RMB
Item Closing balance Opening balance
Value-added tax to be deducted 3,938.71 9,996.21
Advance payment of income tax 42,314.30 42,314.30
Total 46,253.01 52,310.51
Other explanation:
Nil
8. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Construction in
Item House and building Land use right Total
process
I. Original book value
1.Opening
133,661,686.94 133,661,686.94
balance
2.Current
increased
(1) outsourcing
(2)
inventory\fixed
assets\construction in
process transfer-in
(3) increased by
combination
3.Current
decreased
(1) disposal
(2) other
transfer-out
4.Closing balance 133,661,686.94 133,661,686.94
86
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
II. Accumulated
depreciation and
accumulated
amortization
1.Opening
81,250,728.32 81,250,728.32
balance
2.Current
864,914.32 864,914.32
increased
(1) accrual or
867,939.18 867,939.18
amortization
3.Current
decreased
(1) disposal
(2) other
transfer-out
4.Closing balance 82,115,642.64 82,115,642.64
III. Depreciation
reserves
1.Opening
balance
2.Current
increased
(1) accrual
3. Current
decreased
(1) disposal
(2) other
transfer-out
4.Closing balance
IV. Book value
1. Ending Book
51,546,044.30 51,546,044.30
value
2. Opening Book
52,410,958.62 52,410,958.62
value
87
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(2) Investment real estate measure on fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
In RMB
Item Book value Reasons without certification
Other explanation
Nil
9. Fixed assets
(1) Fixed assets
In RMB
Transportat
House and Machine Tool Office Mold Instrument
Item ion Total
building equipment equipment equipment equipment equipment
equipment
I. Original
book value:
65,608,798 80,158,724 6,431,855. 5,467,996. 6,981,463. 14,876,405 3,051,926. 182,577,17
1.Opening
.85 .83 00 48 85 .89 44 1.34
balance
1,576,581. 1,894,538. 4,294,466. 8,055,291.
2.Current 84,856.64 204,849.58
17 02 51 92
increased
1,576,581. 1,894,538. 4,294,466. 8,055,291.
(1)purchasi 84,856.64 204,849.58
17 02 51 92
ng
(2)construc
tion in
progress
transfer-in
(3)
increased
by
combinatio
n
88
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2,865,431. 3,041,377. 6,458,274.
3.Current 367,719.13 105,003.18 78,743.40
49 31 51
decreased
(1)
2,865,431. 3,041,377. 6,458,274.
disposal or 367,719.13 105,003.18 78,743.40
49 31 51
scrapping
65,608,798 78,869,874 6,431,855. 6,994,815. 6,961,317. 16,129,495 3,178,032. 184,174,18
4.Closing
.85 .51 00 37 31 .09 62 8.75
balance
II.
Accumulati
ve
depreciatio
n
1.Opening
balance
2.Current
increased
(1)
accrual
3.Current
decreased
(1)
disposal or
scrapping
4.Closing
balance
III.
Depreciatio
n reserves
14,843,969 58,679,845 3,568,166. 3,108,608. 5,484,551. 10,775,284 2,496,903. 98,957,328
1.Opening
.68 .60 13 37 40 .39 38 .95
balance
89
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2,650,840. 1,839,287. 1,095,405. 6,485,180.
2.Current 332,203.14 372,195.25 142,988.05 52,260.93
26 34 29 26
increased
(1) 2,650,840. 1,839,287. 1,095,405. 6,485,180.
332,203.14 372,195.25 142,988.05 52,260.93
accrual 26 34 29 26
2,426,843. 2,737,239. 5,614,513.
3.Current 285,057.98 94,502.91 70,869.05
63 58 15
decreased
(1)
2,426,843. 2,737,239. 5,614,513.
disposal or 285,057.98 94,502.91 70,869.05
63 58 15
scrapping
17,494,809 58,092,289 3,900,369. 3,195,745. 5,533,036. 9,133,450. 2,478,295. 99,827,996
4.Closing
.94 .31 27 64 54 10 26 .06
balance
IV. Book
value
1.
48,113,988 20,777,585 2,531,485. 3,799,069. 1,428,280. 6,996,044. 84,346,192
Ending 699,737.36
.91 .20 73 73 77 99 .69
Book value
50,764,829 21,478,879 2,863,688. 2,359,388. 1,496,912. 4,101,121. 83,619,842
2.Opening 555,023.06
.17 .23 87 11 45 50 .39
Book value
(2) Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
House and building 905,391.76
10. Construction in progress
(1) Construction in progress
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Transformation 654,356.00 654,356.00 654,356.00 654,356.00
90
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
project of
Huafa Building
Construction of
enclosure in
Guangming 518,400.00 518,400.00
Huafa Industry
Park
New injection
molding 7,068.87 7,068.87
workshop
Total 1,179,824.87 1,179,824.87 654,356.00 654,356.00
(2) change of major construction in process in the period
In RMB
includi
Accum
Propor ng: Interes
Fixed ulated
Other tion of interes t
Openi Curren assets Closin amoun
decrea project t capital
ng t transfe g Progre t of Sourceof
Item Budget sed in invest capital ization
balanc increas r-in in balanc ss interes funds
the ment ized rate of
e ed the e t
Period in amoun the
Period capital
budget t of the year
ization
year
Transf
ormati
on
project 654,35 654,35
of 6.00 6.00
Huafa
Buildi
ng
Constr
uction
of
enclos
ure in 518,40 518,40
Guang 0.00 0.00
ming
Huafa
Industr
y Park
91
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
New
injecti
on
7,068. 7,068.
moldin
87 87
g
works
hop
654,35 525,46 1,179,
Total -- -- --
6.00 8.87 824.87
11. Disposal of fixed assets
In RMB
Item Closing balance Opening balance
Gongming Huafa Electronic City 92,857,471.69 92,857,471.69
Total 92,857,471.69 92,857,471.69
Other explanation:
Assets held for sale transfer-in
12. Intangible assets
(1) Intangible assets
In RMB
Non-patented
Item Land use right Patent right Software costs Total
technology
I. Original book
value
1.Opening
55,089,774.36 661,878.97 55,751,653.33
balance
2.Current
increased
(1)
purchasing
(2) internal
R&D
(3) increased
by combination
3.Current
92
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
decreased
(1)
disposal
4.Closing
55,089,774.36 661,878.97 55,751,653.33
balance
II. Accumulated
amortization
1.Opening
11,992,276.93 452,060.03 12,444,336.96
balance
2.Current
720,870.35 24,942.96 745,813.31
increased
(1) accrual 720,870.35 24,942.96 745,813.31
3.Current
decreased
(1) disposal
4.Closing
12,713,147.28 477,002.99 13,190,150.27
balance
III. Depreciation
reserves
1.Opening
balance
2.Current
increased
(1) accrual
3.Current
decreased
(1) disposal
4.Closing
balance
IV. Book value
1. Ending
42,376,627.08 184,875.98 42,561,503.06
Book value
93
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2.Opening
43,097,497.43 209,818.94 43,307,316.37
Book value
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end was 0.00%
13. Long-term deferred expenditure
In RMB
Amortized in
Item Opening balance Current increased Other decreased Closing balance
Period
Golf membership
141,666.55 25,000.02 116,666.53
fee
Cloud service
697,007.55 38,722.64 658,284.91
charge
Total 141,666.55 697,007.55 63,722.66 774,951.44
Other explanation
Nil
14. Deferred income tax asset /deferred income tax liability
(1) Deferred income tax assets un-offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences asset differences asset
Provision for
30,230,614.99 7,286,148.16 27,949,536.92 6,715,066.24
impairment of assets
Estimated liabilities 64,411.00 16,102.75 64,411.00 16,102.75
Total 30,295,025.99 7,302,250.91 28,013,947.92 6,731,168.99
(2) Deferred income tax liability un-trade off
In RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
(3) Amount of deferred income tax asset and deferred income tax liability after trade-off
In RMB
94
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities assets and liabilities at assets or liabilities
assets and liabilities
after off-set period-begin after off-set
Deferred income tax
7,302,250.91 6,731,168.99
asset
(4) Deferred income tax asset without confirmed
In RMB
Item Closing balance Opening balance
Deductible temporary difference 3,172,018.51
Deductible loss 525,348.33 525,348.30
Total 525,348.33 3,697,366.81
(5) Deductible losses of deferred income tax asset without confirmed will expired in later year
In RMB
Year Closing amount Opening amount Note
2018 525,348.33 525,348.33
2019
Total 525,348.33 525,348.33 --
Other explanation:
Nil
15. Other non-current assets
In RMB
Item Closing balance Opening balance
Account paid in advance for mould 1,934,800.00
Total 1,934,800.00
Other explanation:
Nil
16. Short-term borrowing
(1) Category of short-term borrowing
In RMB
95
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Item Closing balance Opening balance
Loan in pledge 8,500,000.00 8,500,000.00
Guaranteed loan 5,000,000.00 20,000,000.00
Collateral loan 138,775,976.01 138,120,264.81
Total 152,275,976.01 166,620,264.81
Other explanation:
Nil
17. Note payable
In RMB
Category Closing balance Opening balance
Bank acceptance bill 15,635,598.71 17,810,270.28
Total 15,635,598.71 17,810,270.28
Totally 0 Yuan due note payable are paid at period-end
18. Account payable
(1) Account payable
In RMB
Item Closing balance Opening balance
Within one year (one year included) 50,577,515.81 71,817,382.90
Over one year 9,936,784.52 12,187,487.83
Total 60,514,300.33 84,004,870.73
(2) Major account payable over one year
In RMB
Item Closing balance Reasons of un-paid or carry-over
Shenzhen Yuehai Global Logistics Co.,
2,858,885.97 Unsettled
Ltd.
Taiwan LG Company 1,906,267.50 Unsettled
Total 4,765,153.47 --
Other explanation:
Nil
96
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
19. Account received in advance
(1) Account received in advance
In RMB
Item Closing balance Opening balance
Within one year (one year included) 216,292.28 234,017.18
Over one year 44,810.00 44,111.00
Total 261,102.28 278,128.18
20. Salary payable
(1) Salary payable
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
I. Short-term
5,088,451.75 31,784,963.64 33,254,971.45 3,618,443.94
compensation
II. Post-employment
welfare- defined -5,093.82 2,203,579.59 2,203,579.59 -5,093.82
contribution plans
III. Dismiss welfare 45,365.00 45,365.00
Total 5,083,357.93 34,033,908.23 35,503,916.04 3,613,350.12
(2) Short-term compensation
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Wages, bonuses,
4,039,310.19 27,586,584.41 29,021,199.18 2,604,695.42
allowancesand subsidies
2. Welfare for workers
27,109.00 2,660,218.57 2,672,033.77 15,293.80
and staff
3. Social insurance 23,041.98 1,301,496.94 1,325,074.78 -535.86
Including:
23,041.98 1,128,989.87 1,152,567.71 -535.86
Medical insurance
Work
95,048.43 95,048.43
injury insurance
97
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Maternity
77,458.64 77,458.64
insurance
4. Housing
24,310.00 229,798.32 229,798.32 24,310.00
accumulation fund
5. Labor union
expenditure and
974,680.58 6,865.40 6,865.40 974,680.58
personnel education
expense
Total 5,088,451.75 31,784,963.64 33,254,971.45 3,618,443.94
(3) Defined contribution plans
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Basic endowment
-5,093.82 2,129,843.75 2,129,843.75 -5,093.82
insurance
2. Unemployment
73,735.84 73,735.84
insurance
Total -5,093.82 2,203,579.59 2,203,579.59 -5,093.82
Other explanation:
Nil
21. Tax payable
In RMB
Item Closing balance Opening balance
Value-added tax 3,791,391.72 5,473,037.12
Enterprise income tax 5,323,140.64 5,228,514.39
Individual income tax 33,669.11 20,213.76
Urban maintenance and construction tax 164,194.41 1,447,509.59
House property tax 511,467.49 743,004.72
Land use tax 324,546.95 324,212.74
Education surcharge 67,115.26 621,129.51
Local education surcharge 41,726.83 322,572.35
Dike fee 1,665.00 1,665.00
Stamp tax 28,930.10 34,988.50
Disposal fund of waste electrical 274,970.00 919,430.00
98
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
products
Total 10,562,817.51 15,136,277.68
Other explanation:
22. Interest payable
In RMB
Item Closing balance Opening balance
Interest of short-term loans payable 136,176.72 164,895.80
Total 136,176.72 164,895.80
Significant overdue and unpaid interest:
In RMB
Loan unit Overdue amount Reason for overdue
Other explanation:
Nil
23. Other payable
(1) Classification of other payable according to nature of account
In RMB
Item Closing balance Opening balance
Margin and deposit 8,315,421.11 6,280,204.22
Lease management fee 1,063,840.72 2,307,901.27
Intercourse funds 13,919,880.52 6,534,652.44
After sale and repairmen 1,726,191.16 2,384,774.18
Other 2,043,860.76 2,419,744.84
Total 27,069,194.27 19,927,276.95
(2) Significant other payable with over one year age
In RMB
Item Closing balance Reasons of un-paid or carry-over
Shenzhen SED Property Development
1,244,058.55 Unsettled
Co., Ltd.
Shenzhen Huayongxing Environmental
1,000,000.00 Deposit
Protection Technology Co., Ltd.
Linghang Technology (Shenzhen) Co., 656,345.28 Unsettled
99
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Ltd.
Shenzhen Tongxing Electronics Co., Ltd. 578,259.83 Unsettled
Shenzhen Yongdasheng Investment
558,970.00 Deposit
Development Co., Ltd.
Total 4,037,633.66 --
Other explanation
Nil
24. Accrued liabilities
In RMB
Item Closing balance Opening balance Causes
Pending action 64,411.00 64,411.00
Total 64,411.00 64,411.00 --
Other explanations, including important assumptions and estimation about important estimated liabilities:
Business and labor disputes
25. Share capital
In RMB
Changes in the Period (+,-)
Shares
Opening Closing
Issuing new transfer from
balance Bonus shares Other Subtotal balance
shares public
reserves
283,161,227. 283,161,227.
Total shares
00 00
Other explanation:
Ended as 30 June 2018, the shares of the Company held by controlling shareholder has 116,100,000 shares in status of pledge, taking
41% of the total share capital; mortgagee is China Merchants Securities Assets Management Co., Ltd. Shares in judicial freeze
amounted as 116,489,894 shares. The mortgage expired on 31 December 2017. The prompted notice on pledge from controlling
shareholder was released on 1 Feb. 2018
26. Capital public reserve
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Capital premium
96,501,903.02 96,501,903.02
(equity premium)
100
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Other capital surplus 50,085,368.48 50,085,368.48
Total 146,587,271.50 146,587,271.50
Other explanation, including changes and reasons of changes:
Nil
27. Surplus reserves
In RMB
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Statutory surplus
21,322,617.25 21,322,617.25
reserves
Discretionary surplus
56,068,976.00 56,068,976.00
reserve
Total 77,391,593.25 77,391,593.25
Other explanation, including changes and reasons for changes:
Nil
28. Retained profit
In RMB
Item Current period Last period
Retained profit at the end of the previous period
-186,467,113.73 -187,441,523.12
before adjustment
Retained profit at period-begin after adjustment -186,467,113.73 -187,441,523.12
Add: net profit attributable to owners of the
2,793,133.60 974,409.39
parent company
Retained profit at period-end -183,673,980.13 -186,467,113.73
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 2,530,667.50 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
29. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
101
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Main business 318,222,786.98 295,038,716.84 418,264,065.34 396,452,152.81
Other business 22,762,056.26 7,544,262.60 21,216,078.83 2,461,772.27
Total 340,984,843.24 302,582,979.44 439,480,144.17 398,913,925.08
31. Tax and surcharges
In RMB
Item Current Period Last Period
City maintenance and construction tax 266,947.39 171,863.36
Educational surtax 159,757.95 99,530.65
House property tax 232,452.12 1,349,909.12
Land use tax 663,931.20 432,592.87
Stamp tax 217,911.90 245,831.90
Local education development fee 166,492.83 14,603.93
Vehicle use tax 4,800.00 3,555.62
Total 1,712,293.39 2,317,887.45
Other explanation:
Nil
31. Sales expenses
In RMB
Item Current Period Last Period
Employee compensation 2,301,867.88 2,485,833.89
Transportation fee 2,334,595.10 2,120,964.03
Commodity inspection fee 335,545.03 425,265.68
Customs fee 84,390.47 10,754.07
Commodity loss 1,556,975.69 486,106.38
Other 1,819,989.14 1,834,127.81
Total 8,433,363.31 7,363,051.86
Other explanation:
Nil
32. Administrative expenses
In RMB
Item Current Period Last Period
102
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Salary 4,210,697.93 4,544,763.62
Depreciation charge 2,586,727.68 2,821,716.89
Social insurance premium 1,219,441.85 1,744,892.34
Entertainment expenses 1,336,624.80 1,480,848.53
Taxes and surcharges 0.00 0.00
Employee benefits 900,960.35 1,210,380.49
Travel expenses 1,086,267.27 2,451,878.65
Amortization of intangible assets 745,813.31 710,910.93
Transportation fee 1,047,578.29 552,799.31
Consulting fee 565,076.31 1,201,427.16
Security fee 710,066.72 1,010,168.29
Repairs fee 839,233.34 957,282.03
Audit fee 624,271.85 972,000.00
Office allowance 527,020.48 397,708.36
Communication fee 166,858.35 148,788.78
Amortization of low cost and short lived
488,293.61 174,265.51
articles
Securities information disclosure fee 188,679.24 560,425.00
Litigation fee 0.00 10.00
Staff education and labor union
35,034.65 53,821.70
expenditure
Water and electricity fee 272,971.66 149,863.85
Lease fee 2,298,165.79 2,246,800.90
Environment protection costs 90,598.66 127,614.00
Insurance fee 164,030.73 50,736.43
Other expenses 296,572.55 516,853.97
Total 20,400,985.42 24,085,956.74
Other explanation:
Nil
33. Financial expenses
In RMB
Item Current Period Last Period
Interest costs 5,989,883.31 4,180,114.84
Less: interest income 349,858.59 794,663.73
103
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Add: exchange loss -297,171.10 1,209,235.54
Add: Other expense 104,216.60 320,203.81
Total 5,447,070.22 4,914,890.46
Other explanation:
Nil
34. Losses on assets impairment
In RMB
Item Current Period Last Period
I. Bad debt losses 5,941.50 -93,425.39
Total 5,941.50 -93,425.39
Other explanation:
35. Gains on investment
In RMB
Item Current Period Last Period
Investment income generated by financial
245,679.10
products
Total 245,679.10
Other explanation:
Nil
36. Asset disposal income
In RMB
Source of asset disposal income Current Period Last Period
Income from fixed assets disposal 205,240.98 1,549.73
37. Non-operating income
In RMB
Amount reckoned in current
Item Current Period Last Period
non-recurring gains/losses
Government subsidy 771,800.00 802,269.68 771,800.00
Receive donations 51,500.00
Unable to pay 7,130.19
Penalty revenue 48,833.89
104
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Fine income 115,862.07 16,000.00
Total 887,662.07 925,733.76
Government subsidy reckoned into current gains/losses:
In RMB
Subsidy
impact The special Assets-rela
Issuing Offering Amount in Amount in
Item Nature current subsidy ted/income
subject causes the Period last period
gains/losse (Y/N) -related
s (Y/N)
Subsidy for
research
Economic
and
Technology &
developme
innovation Informatio
nt, Income-rel
platform n Bureau Subsidy N Y 300,000.00
technical ated
subsidy for of Caidian
reforming
2017 District,
and
Wuhan
reconstruct
ion
Subsidy
obtained
for
conforms
Business Caidian with the
developme Bureau of local Income-rel
Reward N Y 150,000.00
nt guidance Finance, support ated
fund Wuhan policy for
investment
incentive to
encourage
investment
Subsidy
obtained
Wuhan
for
Science &
conforms
Technolog
Nurturing with the
y Board Income-rel
enterprise Subsidy local N Y 50,000.00
(Wuhan ated
subsidy support
Intellectual
policy for
Property
investment
Office)
incentive to
encourage
105
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
investment
Subsidy
obtained
Treasury for
Municipal receipts & conforms
foreign payments with the
economic sub-branch local Income-rel
Reward N Y 271,800.00
& trade of Wuhan support ated
funds for Municipal policy for
2018 Finance investment
Bureau incentive to
encourage
investment
Total -- -- -- -- -- 771,800.00 --
Other explanation:
Nil
38. Non-operating expenditure
In RMB
Amount included in current
Item Current Period Last Period
non-recurring profits or losses
Penalty expenditure 40,000.00 40,000.00
Other 132,857.64 50.88 132,857.64
Total 172,806.76 50.88
Other explanation:
Nil
39. Income tax expenses
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 908,807.04 746,392.92
Deferred income tax expense -444,975.63 -22,646.01
Total 463,831.41 723,746.91
(2) Adjustment on accounting profit and income tax expenses
In RMB
106
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Item Current Period
Total profit 3,256,965.01
Income tax based on statutory/applicable rate 814,241.25
Impact by different tax rate applied by subsidies -605,871.37
Impact by the deductible losses of the un-recognized previous
127,324.86
deferred income tax
Impact on deductible temporary differences or losses
deductible which was un-recognized as deferred income tax 128,136.67
assets
Income tax expense 463,831.41
Other explanation
Nil
40. Items of statement of cash flow
(1) Other cash received in relation to operation activities
In RMB
Item Current Period Last Period
Unit intercourse account 1,042,828.59 614,876.45
Collection management fee and utilities
601,727.14 159,474.66
etc.
Repayment from employees 22,608.36 23,555.74
Margin 500,000.00 15,271.20
Interest income 71,314.28 290,268.10
Government grants 771,800.00 802,269.68
Total 3,010,278.37 1,905,715.83
Explanation on other cash received in relation to operation activities:
Including collecting water & electricity charges and management fees, government grants, margin and other intercourse funds
(2) Other cash paid in relation to operation activities
In RMB
Item Current Period Last Period
Unit intercourse account 1,840,448.01 412,358.54
Advances to employees 1,046,817.78 3,937,524.56
Litigation fee 249,530.00
Margin, deposit 831,867.00 441,370.00
107
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Entertainment expense 1,166,779.68 1,220,133.12
Water and electricity 2,270,904.17 1,623,214.94
Travel expenses 849,867.40 1,394,764.69
Traffic expenses 2,336,595.10 2,120,964.03
Car fare 620,026.07 739,779.60
Repairs 965,726.34 956,708.92
Audit fees, consulting fees 1,037,410.89 2,686,552.16
Security 218,400.00 218,400.00
Financial institutions handling fee 103,694.09 213,790.21
Office expenses 408,916.56 457,621.51
Communication fee 195,355.57 153,528.16
Lease fee 2,418,018.66 2,233,640.64
Other 1,107,946.89 1,232,487.44
Total 17,668,304.21 20,042,838.52
Explanation on other cash paid in relation to operation activities:
Including management expenses, sales expenses, individual intercourse fund, margin, collecting water & electricity charges and
management fees
41. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current Period Last Period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 2,793,133.60 2,146,472.00
Depreciation of fixed assets, consumption
of oil assets and depreciation of productive 7,322,855.85 6,822,408.28
biology assets
Amortization of intangible assets 709,576.88 710,910.93
Amortization of long-term deferred
63,722.66 35,450.04
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term 333,454.38 227,675.02
assets(gain is listed with “-”)
Loss from discarding fixed assets as
34,871.67
useless (gain is listed with “-”)
108
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Financial expenses (gain is listed with “-”) 5,536,037.89 5,488,969.99
Investment loss (income is listed with “-”) -245,679.10
Decrease of deferred income tax assets
1,218.57
(increase is listed with “-”)
Decrease of inventory (increase is listed
4,786,891.71 -5,264,207.79
with “-”)
Decrease of operating receivable accounts
-15,034,088.55 -74,799,461.03
(increase is listed with “-”)
Increase of operating payable accounts
-32,938,449.52 29,199,543.97
(decrease is listed with “-”)
Net cash flow arising from operating
-26,671,325.63 -35,397,366.92
activities
2. Material investment and financing not
-- --
involved in cash flow:
3. Net change of cash and cash
-- --
equivalents:
Balance of cash at period end 23,838,986.21 59,595,073.48
Less: Balance of cash at period-begin 66,240,945.59 91,310,804.48
Add: Balance of cash equivalent at
3,256,408.54 12,249,684.85
period-end
Less: Balance of cash equivalent at
15,234,028.71 12,704,508.49
period-begin
Net increasing of cash and cash
-54,379,579.55 -32,170,554.64
equivalents
(2) Constitution of cash and cash equivalent:
In RMB
Item Closing balance Opening balance
Ⅰ. Cash 23,838,986.21 66,240,945.59
Including: Cash on hand 270,703.35 170,053.77
Bank deposit available for payment
23,568,282.86 66,070,891.82
at any time
II. Cash equivalent 3,256,408.54 15,234,028.71
Note receivable due within three months 3,256,408.54 15,234,028.71
Ⅲ. Balance of cash and cash equivalent at
27,095,394.75 81,474,974.30
period-end
Other explanation:
Monetary fund at year-end-other monetary fund refers to the bank acceptance bond 7,335,941.28 Yuan, which is not belonging to the
109
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
cash and cash equivalent. At end of the year, among the note receivable due within 3 months, the 3,432,776.86 Yuan are used for
pledge, which is not belongs to cash and cash equivalent.
42. Assets with ownership or use right restricted
In RMB
Item Ending book value Restriction reasons
Monetary Fund 7,335,941.28 Bank acceptance bill
Notes receivable 8,332,469.80 Pledge
Fixed assets 43,965,447.66 Bank loan secured
Intangible assets 37,605,499.26 Bank loan secured
Accounts receivable 8,831,544.63 Pledge
Investment real estate 39,197,344.30 Bank loan secured
Liquidation of fixed assets 92,857,471.69 Court closure
Total 238,125,718.62 --
Other explanation:
Nil
43. Item of foreign currency
(1) Item of foreign currency
In RMB
Closing balance of foreign Ending RMB balance
Item Rate of conversion
currency converted
Including: USD 8,129.64 6.6157 53,783.26
HKD 32.65 0.7997 26.11
Including: USD 5,498,355.82 6.6157 36,375,472.60
Advance account
Including: USD 54,448.00 6.6157 360,211.63
Short term loan
Including: USD 3,593,871.55 6.6157 23,775,976.01
Account payable
Including: USD 3,058,003.88 6.6157 20,230,836.27
Other explanation:
Nil
110
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□ Applicable √ Not applicable
VIII. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
Main operation Registered Share-holding ratio
Subsidiary Business nature Acquired way
place place Directly Indirectly
Property Investment
Huafa Lease Shenzhen Shenzhen 60.00%
management establishment
Property Investment
Huafa Property Shenzhen Shenzhen 100.00%
management establishment
Hengfa Production and Investment
Wuhan Wuhan 100.00%
Technology sales establishment
Property Investment
Huafa Hengtian Shenzhen Shenzhen 100.00%
management establishment
Property Investment
Huafa Hengtai Shenzhen Shenzhen 100.00%
management establishment
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights:
Nil
Controlling basis for the structuring entity included in consolidated range:
Nil
Basis on determining to be an agent or consignor:
Nil
Other explanation:
Nil
IX. Related party and related transactions
1. Parent company of the enterprise
Parent company Registration place Business nature Registered capital Share-holding Voting right ratio
111
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
ratio on the on the enterprise
enterprise for
parent company
Production and
Wuhan Zhongheng
sales, real estate
New Science &
development and
Technology Wuhan 34.5 million Yuan 41.14% 41.14%
sales, housing
Industrial Group
leasing and
Co., Ltd.
management
Explanation on parent company of the enterprise
Nil
The ultimate control of the enterprise is Li Zhongqiu.
Other explanation:
Nil
2. Subsidiary of the Enterprise
Found more in VIII. Equity in other entity in the Note
3. Other related party
Other related party Relationship with the Enterprise
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Huafa Science and Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Hengsheng Yutian Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Hengsheng Photoelectricity Industry Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hong Kong Yutian International Investment Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan New Oriental Real Estate Development Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Zhongheng Property Management Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Optical Valley Display System Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Xingye Property Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Dongfang Property Co., Ltd.
controller
112
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Control by same controlling shareholder and ultimate
Wuhan Xiahua Zhongheng Electronics Co. Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Zhongheng Yutian Trade Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Hongguang Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Huayu Investment Holding Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yutian Investment Co., Ltd. (Famous Sky Capital Limited)
controller
Control by same controlling shareholder and ultimate
Yutian International Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hong Kong Zhongheng Yutian Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Yutian Henghua Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Yongye Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Yutian Hengrui Co., Ltd.
controller
Other explanation
Nil
4. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether over the
Trading limit
Related party Content Current Period approved limited or Last Period
approved
not (Y/N)
Hong Kong
Yutian
International Purchase good 57,922,243.81 292,936,500.00 N 108,075,657.11
Investment Co.,
Ltd.
Wuhan
Hengsheng Purchase good 44,866,194.55 390,582,000.00 N 60,462,785.68
Photoelectricity
113
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Industry Co., Ltd.
Goods sold/labor service providing
In RMB
Related party Content Current Period Last Period
Hong Kong Yutian
International Investment Co., Sales of good 63,231,882.88 99,543,022.00
Ltd.
Wuhan Hengsheng
Photoelectricity Industry Co., Sales of good 2,772,074.10 1,237,955.69
Ltd.
Explanation on goods purchasing, labor service providing and receiving
Nil
(2) Related guarantee
As the guarantor
In RMB
Completed or not
Secured party Amount guarantee Start End
(Y/N)
Hengfa Technology 50,000,000.00 2017-11-20 2018-11-20 N
Hengfa Technology 30,000,000.00 2018-03-14 2020-03-14 N
As the secured party
In RMB
Completed or not
Guarantor Amount guarantee Start End
(Y/N)
Li Zhongqiu 20,000,000.00 2017-12-08 2018-12-07 N
Li Zhongqiu 100,000,000.00 2018-07-13 2019-07-12 N
Explanation on related guarantee
Nil
(3) Remuneration of key manager
In RMB
Item Current Period Last Period
Total Remuneration 784,673.68 744,034.16
114
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
5. Receivable/payable items of related parties
(1) Receivables
In RMB
Closing balance Opening balance
Item Related party
Book balance Bad debt reserves Book balance Bad debt reserves
Hong Kong Yutian
Accounts International
34,850,150.19 41,299,300.89
receivable Investment Co.,
Ltd.
Hong Kong Yutian
International
Advance payment 20,591,047.90 8,873,087.08
Investment Co.,
Ltd.
(2) Payables
In RMB
Item Related party Ending book balance Opening book balance
Wuhan Hengsheng
Accounts payable Photoelectricity Industry Co., 871,821.45 4,333,021.63
Ltd.
6. Commitments of related party
In line with the claim of application for arbitration from Shenzhen Vanke, Shen HUAFA and Wuhan Zhongheng paid and money
together. As the commitment letter to Shen HUAFA from Wuhan Zhongheng Group, if the Vanke wins, the losses from disputes
arising by contract will bear by Wuhan Zhongheng Group in full.
X. Commitment or contingency
1. Important commitment
Important commitment on balance sheet date
As of the balance sheet date, the irrepealable operating lease contract signed by the Company are as:
The Company entered into a house leasing contract with Wuwu Branch of Shenzhen Dacong Industrial Co., Ltd., term of the leasing
period from 18 August 2015 to 17 August 2020
Minimum leasing payment for irrepealable Minimum leasing payment
operating lease contract
First year after balance sheet date 3,847,599.84
115
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Second year after balance sheet date 3,847,599.84
Third year after balance sheet date 502,325.53
Total 8,197,525.21
2. Contingency
(1) Contingency on balance sheet date
1. Arbitration case of legal service contract dispute with V&T (Shenzhen) Law Firm
On March 12, 2018, the company received the arbitration notice No. SHEN DX20180087 from Shenzhen Court of International
Arbitration, V&T (Shenzhen) Law Firm requested to make a ruling that the Company and Wuhan Zhongheng pay the delinquent
lawyer’s fees of RMB 19,402,000 and the liquidated damages (The liquidated damages shall take five ten-thousandths of a day as a
standard based on RMB 19,402,000 from August 24, 2017 to the date of payment of the above-mentioned lawyer’s fees, and the
liquidated damages up to February 12, 2018 was RMB 1,678,273.00). The company should bear all the arbitration fees for this case.
The company has entrusted lawyers to respond to the lawsuit and file a counterclaim against V&T Law Firm. The company filed a
countersuit against V&T Law Firm that V&T Law Firm seriously violated the obligations of the Entrusted Agency Contract and the
Supplementary Agreement of the Entrusted Agency Contract, failed to fulfill the contractual obligations, failed to fulfill the duty of
diligence and responsibility and failed to safeguard the legitimate rights and interests of the principal. And the lawyer’s fees are far
higher than the government guidance price of the Shenzhen lawyer service. It is requested to return the prepaid 2.5 million lawyers’
fees, terminate the Entrusted Agency Contract and the Supplementary Agreement of the Entrusted Agency Contract previously signed
with V&T Law Firm, and bear the lawyers’ fees of 100,000 Yuan for this counterclaim. On May 22, 2018, the arbitration was held,
but no verdict was issued.
2. Other pending lawsuit
Cause
Litigious Amount
Types of litigations, times and explaination of Case No. Note
party object
action
(2016)
Defendant: Yue0304
Shenzhen -----2016.03.08(People’s Court of Futian Disctrict, Shenzhen) accept the case MC No.:
Jifang 5870; (2017)
Investment Yue 03 MZ
Dispute Litigation
Co., Ltd. and No.: 22027;
over amount:
Shenzhen (2018) Yue
-----2016.03.24 Application for bankaccount preservation of 550,000 Yuan leasing 733800
Carnival 0304 Z No.:
contracts Yuan
Foreigning 10334
Trade
----- Date of first instance opening: 2017.3.7 ----- Date of second instance
Clothing City
opening :2017.11.9
Co., Ltd .
-----2018.3.15 (verdict of the 2nd instance effective)
116
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2018.3.26 Application for enforcement
2018.5.16: enforcement by Shenzhen intermediate’s court for expelling Jifang
Defendant: Dispute 2016 Yue Litigation
----2016.03.23 (Pepole’s Court of Baoan District, Shenzhen) accept the case
Shenzhen over 0306 MC amount:
Huayongxing leasing No. 6180
9.4726
Enviornmental (Pepole’s Court of Baoan District, Shenzhen) Application for bankaccount contracts
million
Technology preservation of 8 million Yuan (in payment)
Yuan
Co., Ltd.
-----2017.3.20 Opening a trail
Shenzhen
Yidaxing
Technology The trial has come out, and applying enforcement
Co., Ltd.
Defendant: ----2016.03.24(Pepole’s Court of Baoan District, Shenzhen) accept the case
Shenzhen
-----2016.04.11(Pepole’s Court of Baoan District, Shenzhen) Application for
Huayongxing
bankaccount preservation of 17 million Yuan
Enviornmental
Technology
Co., Ltd., ------2017.2.14 Opening a trail
Shenzhen
Guangyong
Breadboard
Litigation
Co., Ltd., Dispute
2016 Yue amount:
Shenzhen over
0306 MC 19.6492
Mingyi leasing
No. 6229 million
Electric Co., contracts
Yuan
Ltd., Verdict comes out and come into effect on 20 August 2018, waiting for
Shenzhen application for enforcement
Ouruilai
Technology
Co., Ltd. and
Shenzhen
Kangzhengxin
Technology
Co., Ltd.
Defendant:
Wuhan
Zhongheng Litigation
----2018.3.12. we received the arbitration application of V&T Law Firm from Dispute
New Case No.: amount:
Shenzhen International Arbitration Commission, we have entrusted lawyers over
Technology SHEN 19.402
to respond to the suits and filed a counterclaim against V&T Law Firm, there agency
Industrial DX20180087 million
is no notice of hearing at present. contract
Group Co., Yuan
ltd. and
Shenzhen
117
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Zhongheng
Huawa Co.,
Ltd.
Plaintiff: V&T
LAW FIRM
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XI. Other important events
1. Other
(i) concerning the ruling of Southern International Arbitration Shen [2017] No. D376 from Southern China International Economic &
Trade Arbitration Commission, the Company applying for cancellating the ruling
(1) Arbitration
In August 2015, Shenzhen HUAFA and Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as
“Wuhan Zhongheng”) signed the “Cooperation Agreement on Urban Renewal Project of Update Units at Huafa Industrial Park,
Gongming Street, Guangming New District, Shenzhen”. As Shenzhen HUAFA and Wuhan Zhongheng planned to cooperate with
Shenzhen Vanke Real Estate CO., Ltd. (hereinafter referred to as “Shenzhen Vanke”) on the Huafa urban renewal project (hereinafter
referred to as “Huafa Renovation Project) at Gongming Street, Guangming New District, Shenzhen, both parties appointed that
Shenzhen HUAFA entrusted Wuhan Zhongheng to represent it in this cooperation, and established project company - Shenzhen
Vanke Guangming Real Estate Co., Ltd. (hereinafter referred to as “Vanke Guangming”) as the subject of project implementation
with Shenzhen Vanke; Vanke Guangming signed “Demolition Compensation Agreement” with Shenzhen HUAFA and Wuhan
Zhongheng, and paid the compensation for demolition.
On August 21, 2015, Shenzhen HUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “Cooperative Operation Contract of
Renovation Project at Huafa Industrial Park, Gongming Street, Guangming New District”(hereinafter referred to as “Cooperative
Operation Contract”), the contract refined and appointed the cooperation model and operating steps of both sides. And then Shenzhen
HUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “Agreement on the Housing Acquisition and Removal Compensation
and Settlement”. After signing the above agreement, Shenzhen Vanke paid the cooperation price of 600 million Yuan to Wuhan
Zhongheng through Vanke Guangming.
In September 2016, Shenzhen Vanke filed an arbitration to South China International Economic and Trade Arbitration Commission
(hereinafter referred to as “South China Arbitration”) as Shenzhen HUAFA and Wuhan Zhongheng violated the appointment of
“Cooperative Operation Contract” and handled the “Confirmation of Subject of Reconstruction Implementation” at an overdue time,
and required Shenzhen HUAFA and Wuhan Zhongheng to pay liquidated damages and attorneys' fees of RMB 464.60 million.
118
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
While filing the arbitration, Shenzhen Vanke also applied for property preservation of 400 million Yuan of property under the name
of Shenzhen Huafa and Wuhan Zhongheng to Shenzhen Intermediate People’s Court. According to the ruling of Shenzhen
Intermediate People's Court and “Notification of Sealing up, Seizing and Freezing Assets” (The reference numbers are (2016) Yue 03
Cai Bao No. 51, (2016) Yue 03 Cai Bao No. 53), the 27 house properties (Note: the property within the scope of Huafa renovation
project) under the name of Shenzhen HUAFA and 116,489,894 shares (Note: of which 116,100,000 shares have been pledged) of
Shenzhen HUAFA stock held by Wuhan Zhongheng were frozen.
(2) Progress of arbitration
On November 12, 2016, the arbitration court held a hearing on this case.
In December 2016, Wuhan Zhongheng to Shenzhen HUAFA issued a “Commitment Letter” which included that if the arbitration
(Note: the case) ruled in favor of Shenzhen Vanke, the loss of arbitration caused by the contract disputes should be fully assumed by
our company. In the above contingent losses, if the judicial decision ruled your company to pay the compensation in advance, our
company promised to pay your company in cash within one month, if our company could not pay on time due to uncontrollable
factors, our company would like to pay the corresponding interest according to the benchmark interest rate of bank loans in the
corresponding period. Because the plots in the renovation project placed in our company hadn’t been applied for transfer procedures
and were still under your company’s name (Note: based on the “Asset Replacement Contract” signed by Wuhan Zhongheng and
Shenzhen HUAFA on April 29, 2009), therefore, there was no risk of compliance, at the same time, our company promised to give
priority to paying the above compensation with the compensation for demolition of renovation project.
On March 14, 2017, Shenzhen HUAFA received the “Decision of Arbitrator not Granting Avoiding” issued by South China
Arbitration, which rejected the application for avoiding of chief arbitrator proposed by Shenzhen Vanke. On March 15, 2017,
Shenzhen HUAFA received the “Letter About the Resignation of the Chief Arbitrator of No. SHEN DP20160334 Case” signed by
the chief arbitrator and forwarded by South China Arbitration. On March 20, 2017, Shenzhen HUAFA received the “Letter About the
Resignation of the Arbitrator of No. SHEN DP20160334 Case” forwarded by South China Arbitration, the arbitrator selected by
Shenzhen Vanke said to resign from the arbitrator of this case due to physical reasons.
The deadline for giving a ruling to this case was originally scheduled on February 12, 2017. According to the “Decision of
Adjourning the Ruling” issued by South China Arbitration on February 10, 2017, the deadline for giving a ruling to this case shall be
prolonged to May 12, 2017. Due to the changes in the members of above arbitration court, this case needs South China Arbitration to
reassign the chief arbitrator and Shenzhen Vanke to reselect the arbitrators. According to the provisions of article 32 of the
Arbitration Rules of South China Arbitration, after constituting the new arbitration court, it shall decide whether all or part of the
hearing procedures that have been carried out before need to be reopened; if the arbitration court decides to reopen all hearing
procedures, then the deadline for giving a ruling shall be calculated from the date that the arbitration court decides to reopen the
hearing procedures.
On August 16, 2017, South China International Economic and Trade Arbitration Commission made the “Arbitral Award” SCIA
[2017] D376, according to the arbitral award, the applicant and counterclaim respondent in arbitration case SCIA [2017] D376 were
Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Applicant” and “Vanke”). The first respondent and the first
applicant for counterclaim were Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan
Zhongheng” and “First Respondent”). The second respondent and the second applicant for counterclaim were Zhongheng Huafa. The
award results were as follows:
① The first respondent and the second respondent pay liquidated damages to the applicant with a base number of RMB 600 million,
calculating by the annual interest rate of 36% from October 1, 2015 to November 11, 2016;
②The first respondent and the second respondent pay the lawyer fees of RMB 1.4 million to the applicant due to the case;
③The first respondent and the second respondent pay the property preservation fees of RMB 10,000 to the applicant;
④The arbitration fees for this request and case was RMB 3,101,515.00, the first respondent and the second respondent should bear
119
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
70%, i.e. RMB 2,171,060.50, and the applicant should bear 30%, i.e. RMB 930,454.50. The applicant had already paid the arbitration
fees in full amount for this request which could be used as the arbitration fees of this case and request and shall not be refunded. The
first respondent and the second respondent should directly pay RMB 2,171,060.50 to the applicant;
The arbitration fee of counterclaim in this case was RMB 76,050 which was undertaken by the first respondent and the second
respondent at their own expense. The first respondent and the second respondent paid the arbitration fees in full amount for this
request which could be used as the arbitration fees of this case and request and shall not be refunded;
The actual expenses of the arbitrators in this case amounted to RMB 7,754.90, the first respondent and the second respondent
assumed 70%, i.e. RMB 5,428.43, and the applicant assumed 30%, i.e. RMB 2,326.47; the above actual expenses of the arbitrators
had been paid by the Commission, so the first respondent and the second respondent and the applicant should directly pay RMB
5,428.43 and RMB 2,326.47 respectively to the Commission;
⑤ Reject the applicant’s other arbitration requests;
⑥Reject the arbitration counterclaims of the first respondent and the second respondent.
In summary, Wuhan Zhongheng and Shenzhen Huafa should pay liquidated damages, interest, lawyer fees, property preservation
fees, and arbitration fees for this request to Vanke and pay actual expenses of the arbitrators in this case and pay the actual expenses
incurred by the arbitrators in this case to South China International Economic and Trade Arbitration Commission.
(3) The response of the company’s management and the identification of the event
The company engaged lawyers to make an independent investigation and judgment on the event, and issued special legal opinion that
the reasons of Wuhan Zhongheng resulted in a failure of a net handover, the corresponding urban renewal functional department
could not issue the corresponding demolition documents, which in turn made the project company fail to be confirmed as the subject
of implementation, and finally and directly made the subject of implementation fail to get the “Land Value Payment Notification”
and sign the “Land Use Rights Transfer Contract”. Therefore, Wuhan Zhongheng should bear all responsibilities for faults in
response to the breach of contract. Wuhan Zhongheng issued the Commitment Letter in December 2016, pledged that if the
arbitration judged Vanke to win the case, Wuhan Zhongheng should bear all arbitration losses caused by the contract dispute; after
the award came into effect, Wuhan Zhongheng issued the Confirmation Letter again on November 23, 2017 to divide the duty of
performance of the award; the independent directors of the company issued independent opinions after careful study that Wuhan
Zhongheng should bear the arbitration losses in full; the management of the company also made an investigation and affirmed that
Wuhan Zhongheng should bear all liability for satisfaction on the Award HNGZSC [2017] D376, and the award amount should be
paid by Wuhan Zhongheng in full. At present, the company has filed an application for revoking the Award HNGZSC [2017] D376 to
Shenzhen Intermediate People’s Court, and Shenzhen Intermediate People’s Court has officially accepted the case on February 7,
2018, the case number was (2018) Yue 03 MT 113. On June 16,2018，the court ruled against the company’s claims.
XII. Principle notes of financial statements of parent company
1. Accounts receivable
(1) Category of account receivable
In RMB
Closing balance Opening balance
Category Bad debt Book Book
Book balance Book balance Bad debt reserves
reserves value value
120
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Amoun Amoun Accrua Amo Accrual
Ratio Ratio Amount
t t l ratio unt ratio
Account receivable
with single
5,094
significant amount 5,000,9 48.58 5,000,9 100.00 49.05 5,094,4
,414. 100.00%
and withdrawal 88.97 % 88.97 % % 14.36
36
bad debt provision
separately
Accounts with
single significant
5,292
amount and bad 5,292,4 50.12 5,292,4 100.00 50.95 5,292,4
,435. 100.00%
debts provision 35.32 % 35.32 % % 35.32
32
accrued
individually
10,38
10,293, 100.00 10,293, 100.00 10,386,
Total 6,849
424.29 % 424.29 % 849.68
.68
Account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Account receivable (by Closing balance
unit) Accounts receivable Bad debt reserve Provision ratio Provision reason
TCL ACE ELECTRIC
APPLIANCE 1,325,431.75 1,325,431.75 100.00% Un-recyclable
(HUIZHOU) CO., LTD.
SKYWORTH
Multimedia (Shenzhen) 579,343.89 579,343.89 100.00% Un-recyclable
Co., Ltd.
Hong Kong Haowei
1,870,887.18 1,870,887.18 100.00% Un-recyclable
Industry Co. Ltd.
Qingdao Haier Parts
1,225,326.15 1,225,326.15 100.00% Un-recyclable
Procurement Co., Ltd.
Total 5,000,988.97 5,000,988.97 -- --
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Accounts with single significant amount and bad debts provision accrued individually at period-end
Debtor Book balance Bad debt Accrual ratio Reasons
121
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Shenzhen Huixin Video Technology 381,168.96 381,168.96 100.00 Un-recyclable
Co., Ltd.
Shenzhen Wandelai Digital 351,813.70 351,813.70 100.00 Un-recyclable
Technology Co., Ltd.
Shenzhen Dalong Electronic Co., Ltd. 344,700.00 344,700.00 100.00 Un-recyclable
Shenzhen Keya Electronic Co., Ltd. 332,337.76 332,337.76 100.00 Un-recyclable
Shenzhen Qunping Electronic Co., 304,542.95 304,542.95 100.00 Un-recyclable
Ltd.
China Galaxy Electronics (Hong 288,261.17 288,261.17 100.00 Un-recyclable
Kong) Co., Ltd.
Dongguan Weite Electronic Co., Ltd. 274,399.80 274,399.80 100.00 Un-recyclable
Hong Kong New Century Electronics 207,409.40 207,409.40 100.00 Un-recyclable
Co., Ltd.
Shenyang Beitai Electronic Co., Ltd. 203,304.02 203,304.02 100.00 Un-recyclable
Beijing Xinfang Weiye Technology 193,000.00 193,000.00 100.00 Un-recyclable
Co., Ltd.
TCL Electronics (Hong Kong) Co., 145,087.14 145,087.14 100.00 Un-recyclable
Ltd.
Huizhou TCL Xinte Electronics Co., 142,707.14 142,707.14 100.00 Un-recyclable
Ltd.
SkyWorth – RGB Electronic Co., Ltd. 133,485.83 133,485.83 100.00 Un-recyclable
Other 1,990,217.45 1,990,217.45 100.00 Un-recyclable
Total 5,292,435.32 5,292,435.32 —— ——
(2)Top five receivables collected by arrears party at ending balance
Company Closing balance Ratio in total account Balance of bad debt
receivable (%) provision
Hong Kong Haowei Industry Co. Ltd. 1,870,887.18 18.18 1,870,887.18
TCL ACE ELECTRIC APPLIANCE 1,325,431.75 12.88 1,325,431.75
(HUIZHOU) CO., LTD.
Qingdao Haier Parts Procurement Co., 1,225,326.15 11.90 1,225,326.15
Ltd.
SKYWORTH Multimedia (Shenzhen) 579,343.89 5.63 579,343.89
Co., Ltd.
Shenzhen Huixin Video Technology 381,168.96 3.70 381,168.96
Co., Ltd.
Total 5,382,157.93 52.29 5,382,157.93
122
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
2. Other accounts receivable
(1) Category of other account receivable
In RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt reserves
Category reserves Book Book
Amoun Amoun Accrua value Amo Accrual value
Ratio Ratio Amount
t t l ratio unt ratio
Other account
receivable with
single significant 11,28
11,281, 11,281, 100.00 11,281,
amount and 9.17% 0.00 1,461 9.48% 100.00% 0.00
461.86 461.86 % 461.86
withdrawal bad .86
debt provision
separately
Other account
receivable with bad 103,97 103,87 100,0
84.54 102,10 84.02 102,100 99,922,1
debt provision 4,567.0 0.10% 2,467.0 24,24 0.10%
% 0.00 % .00 43.84
accrual by 2 2 3.84
portfolio
Other account
receivable with
single minor 7,736
7,736,7 7,736,7 100.00 7,736,7
amount but 6.29% 0.00 ,789. 6.50% 100.00% 0.00
89.76 89.76 % 89.76
withdrawal single 76
item bad debt
provision
122,99 103,87 119,0
100.00 19,120, 100.00 19,120, 99,922,1
Total 2,818.6 2,467.0 42,49
% 351.62 % 351.62 43.84
4 2 5.46
Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Closing balance
Other account
Other account
receivable (units) Bad debt provision Accrual ratio Accrual reason
receivable
Shenzhen Jifang
1,071,160.00 1,071,160.00 100.00% Un-recyclable
Investment Co., Ltd.
123
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Huafa Lease 4,558,859.15 4,558,859.15 100.00% Un-recyclable
Portman 4,021,734.22 4,021,734.22 100.00% Un-recyclable
Zhao Baomin 553,901.68 553,901.68 100.00% Un-recyclable
Traffic accident
555,785.81 555,785.81 100.00% Un-recyclable
compensation
Hebei Botou Court 520,021.00 520,021.00 100.00% Un-recyclable
Total 11,281,461.86 11,281,461.86 -- --
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
In RMB
Closing balance
Account age
Other receivable Bad debt reserves Accrual ratio
Sub-item of within one year
Subtotal of within one year 101,967,567.02
1-2 year 2,000,000.00 100,000.00 5.00%
Over 3 years 7,000.00 2,100.00 30.00%
Total 103,974,567.02 102,100.00
Explanation on portfolio basis:
Nil
In combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
√ Applicable □ Not applicable
Other account receivable with single minor amount but withdrawal single item bad debt provision at period-end
Debtor Book balance Bad debt Accrual ratio (%) Reasons
Electricity fee in Gongming 489,214.70 489,214.70 100.00 Un-recyclable
canteen
Jiantao (Fogang) Laminates Co., 465,528.10 465,528.10 100.00 Un-recyclable
Ltd.
Labor union 332,402.55 332,402.55 100.00 Un-recyclable
Lu Wei 290,000.00 290,000.00 100.00 Un-recyclable
4/F hotel Dai Qiangbo 194,569.00 194,569.00 100.00 Un-recyclable
Chuangjing 192,794.00 192,794.00 100.00 Un-recyclable
Shenzhen Mingli Co., Ltd. 170,394.84 170,394.84 100.00 Un-recyclable
Other Units 5,601,886.57 5,601,886.57 100.00 Un-recyclable
Total 7,736,789.76 7,736,789.76 —— ——
124
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(2) Other receivables by nature
In RMB
Nature Ending book balance Opening book balance
Margin and deposit 720,065.04 720,065.04
Borrow money 1,475,463.06 2,013,402.14
Intercourse funds 111,709,202.54 110,451,250.82
Rent income 9,088,088.00 5,857,777.46
Total 122,992,818.64 119,042,495.46
(3) Top 5 other receivables collected by arrears party at ending balance
In RMB
Proportion in total
Ending balance of
Company Nature Closing balance Account age other receivables
bad debt provision
at year-end
Hengfa Technology Intercourse funds 94,141,963.46 Within one year 76.54%
Shenzhen Jifang
Investment Co., Lease receivable 7,949,760.00 Within one year 6.46% 1,071,160.00
Ltd.
Huafa Lease Intercourse funds 4,558,859.15 Over 3 years 3.71% 4,558,859.15
Portman Lease receivable 4,021,734.22 Over 3 years 3.27% 4,021,734.22
Wuwu Branch of
Shenzhen Dachong Premium for lease 641,266.64 Within one year 0.52%
Industrial Co., Ltd.
Total -- 111,313,583.47 -- 90.50% 9,651,753.37
3. Long-term equity investment
In RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
187,208,900.00 600,000.00 186,608,900.00 187,208,900.00 600,000.00 186,608,900.00
subsidiary
Total 187,208,900.00 600,000.00 186,608,900.00 187,208,900.00 600,000.00 186,608,900.00
125
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
(1) Investment for subsidiary
In RMB
Decrease Ending balance
The invested Opening Increase during Closing Impairment
during this of impairment
entity balance the period balance accrual
period provision
Huafa Lease 600,000.00 600,000.00 600,000.00
Huafa Property 1,000,000.00 1,000,000.00
Hengfa 183,608,900.0 183,608,900.0
Technology 0 0
Huafa Hengtian 1,000,000.00 1,000,000.00
Huafa Hengtai 1,000,000.00 1,000,000.00
187,208,900.0 187,208,900.0
Total 600,000.00
0 0
4. Operating income and cost
In RMB
Current Period Last Period
Item
Income Cost Income Cost
Other business 16,961,088.74 2,510,518.82 19,368,319.99 2,104,257.94
Total 16,961,088.74 2,510,518.82 19,368,319.99 2,104,257.94
Other explanation:
Nil
XIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of
-105,779.36
non-current asset
Governmental subsidy reckoned into
current gains/losses (not including the
subsidy enjoyed in quota or ration 771,800.00
according to national standards, which are
closely relevant to enterprise’s business)
126
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Profit and loss of assets delegation on
245,679.10
others’ investment or management
Other non-operating income and
expenditure except for the aforementioned -56,944.69
items
Less: impact on income tax 115,088.47
Total 739,666.58 --
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
2. REO and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic EPS Diluted EPS
(RMB/Share) (RMB/Share)
Net profits belong to common
stock stockholders of the 0.87% 0.0099 0.0099
Company
Net profits belong to common
stock stockholders of the
0.64% 0.0073 0.0073
Company after deducting
nonrecurring gains and losses
127
深圳中恒华发股份有限公司 2018 年半年度报告全文英文
Section XI. Documents available for reference
I. Text of the Semi-Annual Report caring signature of the Chairman;
II. Financial statement carrying the signatures and seals of the person in charge of the Company, principal of the accounting works
and person in charge of accounting organ;
III. All documents of the Company and manuscripts of public notices that disclosed in the China Securities journal, Securities Times
and Hong Kong Commercial Daily designated by CSRC in the report period;
IV. Article of Association
V. Other relevant files.
128
