Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
Stock Code: 000020 200020 Public Notice No.: 2019-05
Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA- B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2018
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.
Objection statement of directors, supervisors and senior executives
Name Position Content and reason
Statement
Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□Applicable □Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock Shen HuafaA, Shen HuafaB Stock code 000020, 200020
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Yang Bin Niu Zhuo
33/F, No. 2 Building of Dachong Business 33/F, No. 2 Building of Dachong Business
Office add.
Center, Nanshan District, Shenzhen Center, Nanshan District, Shenzhen
Fax. 0755-86360206 0755-86360206
Tel. 0755-86360201 0755-86360201
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
E-mail huafainvestor@126.com.cn huafainvestor@126.com.cn
2. Main business or product introduction in the reporting period
After years of development, the company has gradually formed two main businesses in industry and property management. Among
them, the industrial business mainly includes injection molding, polylon (light-weight packaging materials), and complete machine
production and sales of liquid crystal display, property management business is mainly the lease of its own property.
3. Main accounting data and financial indexes
(I) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
In RMB
2018 2017 Changes over last year 2016
Operating income 637,046,707.03 858,040,132.74 -25.76% 619,167,770.74
Net profit attributable to
3,295,022.72 974,409.39 238.16% 5,457,710.33
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
1,535,043.65 2,079,588.86 -26.19% 5,109,926.82
after deducting non-recurring gains
and losses
Net cash flow arising from
-21,894,459.66 11,723,254.36 -286.76% -18,693,296.58
operating activities
Basic earnings per share
0.0116 0.0034 241.18% 0.0193
(RMB/Share)
Diluted earnings per share
0.0116 0.0034 241.18% 0.0193
(RMB/Share)
Weighted average ROE 1.02% 0.30% 0.72% 1.72%
Changes over end of
End of 2018 End of 2017 End of 2016
last year
Total assets 617,090,153.46 629,762,731.38 -2.01% 632,475,542.40
Net assets attributable to
323,968,000.74 320,672,978.02 1.03% 319,698,568.63
shareholder of listed company
(2) Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 171,620,013.62 169,364,829.62 148,975,383.05 147,086,480.74
Net profit attributable to
307,367.89 2,485,765.71 -2,295,638.52 2,797,527.64
shareholders of the listed company
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
Net profit attributable to
shareholders of the listed company
5,469.74 2,047,997.28 -3,406,233.82 2,887,810.45
after deducting non-recurring gains
and losses
Net cash flow arising from
337,819.42 -27,009,145.05 -27,365,096.05 32,141,962.02
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered
and top ten shareholders
In Share
Total preference
Total common Total preference
Total common shareholders with
stock shareholders
stock voting rights
shareholders at with voting
shareholders in 25,862 24,818 0 recovered at end of 0
end of last month rights recovered
reporting last month before
before annual at end of
period-end annual report
report disclosed reporting period
disclosed
Top ten shareholders
Number of shares
Full name of Nature of Proportion of Amount of
Amount of restricted shares held pledged/frozen
Shareholders shareholder shares held shares held
State of share Amount
Domestic Pledged 116,100,000
Wuhan
non-state-ow
Zhongheng 41.21% 116,681,094 0
ned legal Frozen
Group 116,489,894
person
SEG (HONG Pledged 0
Overseas
KONG) CO., 5.85% 16,569,560 0
legal person Frozen
LTD. 0
GOOD HOPE Pledged 0
Overseas
CORNER
4.49% 12,700,000 0
INVESTMENT legal person Frozen 0
S LTD
Changjiang Pledged 0
Securities
Overseas
Brokerage 1.89% 5,355,249 0
legal person Frozen
(Hongkong) 0
Co., Ltd.
Guoyuan Overseas Pledged 0
Securities 1.36% 3,845,117 0
Brokerage legal person Frozen 0
(Hong Kong)
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
Limited
Domestic Pledged 0
Li Senzhuang natural 0.36% 1,022,260 0
person Frozen 0
Overseas Pledged 0
LI SHERYN
natural 0.36% 1,009,900 0
ZHAN MING Frozen
person 0
Domestic Pledged 0
Han Yaming natural 0.31% 864,200 0
person Frozen 0
Domestic Pledged 0
BINGHU LIU natural 0.30% 840,313 0
person Frozen 0
Domestic Pledged 0
Wu Jinmin natural 0.28% 788,352 0
person Frozen 0
Among the top ten shareholders, Wuhan Zhongheng Group neither bears associated relationship
with other shareholders, nor belongs to the consistent actor that are prescribed in Measures for the
Explanation on associated
Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The Company
relationship among the
neither knew whether there exists associated relationship among the other tradable shareholders, nor
aforesaid shareholders
they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure
of Shareholder Equity Changes of Listed Companies.
Explanation on involving
margin business (if N/A
applicable)
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
Li Zhongqiu Li Li (Son of Li Zhongqiu)
49%
51%
Wuhan Zhongheng New Science & Technology Industrial Group
Co., Ltd.
41.21%
Shenzhen Zhongheng Huafa Co., Ltd.
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In 2018, the international environment was complicated, the downward pressure on China’s economy increased,
and the economic growth slowed down. Facing the unfavorable market environment, the company has actively
taken measures to adjust its management concept and operating strategies and expand its main business which
were supplemented with assessment and incentive mechanism. At the same time, some assets were cleaned and
disposed of to maximize the benefits of assets and achieve better returns. In 2018, the company achieved
operating revenue of 637,046,700 Yuan, a decrease of 25.76% on a year-on-year basis, and net profits of
3,295,000 Yuan, increased slightly compared with the same period last year.
●Video service business achieved annual operating revenue of 292,748,400 Yuan, a decrease of 38.75% on a
year-on-year basis, operation profit amounted as 3,387,600 Yuan with 10.82% up from a year earlier. During the
reporting period, the Video Business Division adjusted the product structure and optimized the sales ratio of each
brand of products. The proportion of AOC series brands decreased due to the Group's adjustment, the Great Wall
brand accounted for 22.41%, and the proportion of VSCN domestic sales rose to 24.54%, the increased VSCN
export sales accounted for 4.91%, ACER accounted for 18.89%, and Changhong and Skyworth brands were
newly increased. In 2018, it achieved sales volume of 703,900 units, outperforming the annual profit target.
●Injection molding business achieved annual operating revenue of 220,923,600 Yuan, a decrease of 12.46% over
the same period last year, operation profit amounted as 443,500 Yuan, a declined over same period last year. With
the unceasingly fierce competition in the market, the profit margin of injection molding has been greatly reduced,
but all the staff of the business division adjusted the sales strategy in time, actively seized the market share, and
expanded the production workshop, purchased new type of production lines, and more than 10 existing automatic
equipment, such as automatic gumming robots, injection molding machines, etc., have been put into production in
November 2018, and the annual output is expected to increase by 2.3 million sets.
●Polylon business achieved annual operating revenue of 68,365,100 Yuan, a decrease of 16.01% over the same
period last year, net profit amounted as -770,000 yuan, an increase of 7.49% from a year earlier. EPS Business
Division actually sold 3,873 tons in 2018. The EPS Business Division won the title of “Excellent Scientific and
Technological Innovation Enterprise of China Plastics Processing Industry” due to its outstanding achievements in
promoting industrial technology advancement and promoting the transformation of scientific and technological
achievements. In 2018, the main projects won the bidding by several hundred percents, the electric heating P3
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
packaging won 100% bidding, the fuel gas and K series packaging won 100% bidding, the T3 structural parts won
100% bidding, the freezer Dafuhao won 100% bidding, and the dual variable temperature freezer won 100%
bidding.
●The property rental business achieved annual operating revenue of 34369800 Yuan, a decrease of 5.45% over
the same period last year. The company’s own property, Huafa Building, has been included in the urban renewal
project, the lessees had great changes, and the rental income decreased relatively. Gongming Huafa Electronic
City was still in the stage of renovation and transformation, and no rental income was generated in the current year.
Therefore, in 2018, the company’s overall rental income decreased somewhat compared with the previous year.
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
□ Applicable √ Not applicable
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
7. Related matters relating to financial reports
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√Applicable □ Not applicable
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Summary of Annual Report 2018 Shenzhen Zhongheng Huafa Co., Ltd.
The “Notice on Revising and issuing the Format of General Enterprise Financial Statement for 2018” (CK[2018]
No.15) issued by Ministry of Finance on 15 June 2018, the format of financial statement for enterprise who
implemented the accounting standards shall be prepared for 2018 and later years in line with the above mentioned
Notice.
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
□ Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
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