SEMI-ANNUAL REPORT 2019
SHENZHEN ZHONGHENG HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2019
August 2019
1
SEMI-ANNUAL REPORT 2019
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 2019
Semi-Annual Report is authentic, accurate and complete.
Other directors attending the Meeting for semi-annual report deliberation
except for the followed
Name of director
Title for absent director Reasons for absent Attorney
absent
Gao Jianbai director personal reason Li Zhongqiu
Xu Jinwen independent director personal reason Zhang Zhaoguo
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.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
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SEMI-ANNUAL REPORT 2019
Contents
Semi-annual Report 2019 ............................................................................................................ 1
Section I Important Notice and Paraphrase ................................................................................ 2
Section II Company Profile and Main Financial Indexes ............................................................ 5
Section III Summary of Company Business................................................................................. 8
Section IV Discussion and Analysis of Operation ........................................................................ 9
Section V Important Events ........................................................................................................ 15
Section VI Changes in shares and particular about shareholders ........................................... 32
Section VII Preferred Stock ........................................................................................................ 37
Section VIII Particulars about Directors, Supervisors and Senior Executives ....................... 38
Section IX Corporate Bonds ..................................................................................................... 39
Section X Financial Report ......................................................................................................... 40
Section XI Documents Available for Reference ...................................................................... 147
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SEMI-ANNUAL REPORT 2019
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
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SEMI-ANNUAL REPORT 2019
Section II. Company Profile and Main Financial 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 2018.
5
SEMI-ANNUAL REPORT 2019
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 2018
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) 339,190,174.05 340,984,843.24 -0.53%
Net profit attributable to shareholders of
2,580,411.13 2,793,133.60 -7.62%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 2,197,912.06 2,053,467.02 7.03%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
45,194,220.56 -26,671,325.63
activities (RMB)
Basic earnings per share (RMB/Share) 0.0091 0.0099 -8.08%
Diluted earnings per share (RMB/Share) 0.0091 0.0099 -8.08%
Weighted average ROE 0.79% 0.87% -0.08%
Changes over period-end
Period-end Period-end of last year
of last year (+, -)
Total assets (RMB) 623,980,175.29 617,090,153.46 1.12%
Net assets attributable to shareholder of
326,548,411.87 323,968,000.74 0.80%
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.
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SEMI-ANNUAL REPORT 2019
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
129,039.57
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
223,300.00
national standards, which are closely relevant to enterprise’s
business)
Gains/losses from entrusted investment or assets management 74,936.14
Other non-operating income and expenditure except for the
9,458.00
aforementioned items
Less: Impact on income tax 54,234.64
Total 382,499.07 --
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
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SEMI-ANNUAL REPORT 2019
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.
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SEMI-ANNUAL REPORT 2019
Section IV. Discussion and Analysis of Operation
I. Introduction
After years of development, the company has gradually formed two main businesses of industrial business and
property management business. Among them, the industrial business is the production and sales of
injection-molded parts, Styrofoam (lightweight material packaging), and liquid crystal display. The property
management business is mainly for the rental of self-owned properties.
In the first half of 2019, the company achieved operation revenue of 339.19 million yuan, with a y-o-y declined of
0.53%; operating profit of 295 million yuan, with a y-o-y growth of 16.15%; net profit of 2.58 million yuan, with
a y-o-y declined of 7.62%; operation revenue from industry production has 318.76 million yuan in the first half of
the year, with a y-o-y declined of 1.43%, operating profit of 1.69 million yuan, with a y-o-y declined of 68.15%;
net profit of 1.6358 million yuan, with a y-o-y declined of 68.24%; the revenue earns from property leasing in first
half year comes to 18.91 million yuan, an increase of 21.20% over the same period last year, and the operating
profit was 1.26 million yuan, with a y-o-y growth of 3.93 million yuan (from the same period last year to (2.67)
million yuan); the net profit was 94.58 million yuan, and from the same period last year to (1.72) million yuan.
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 339,190,174.05 340,984,843.24 -0.53%
Operating cost 297,580,208.34 302,582,979.44 -1.65%
Sales expenses 9,130,380.22 8,433,363.31 8.26%
Administrative
19,616,991.39 20,400,985.42 -3.84%
expenses
Financial expenses 5,068,371.24 5,447,070.22 -6.95%
Increase in property
Income tax expenses 603,910.08 463,831.41 30.20%
rental income
Net cash flow from Note receivable are
45,194,220.56 -26,671,325.63
operating activities collected at maturity
Last period, invest in
Net cash flow from
-3,964,794.99 -6,545,541.50 new workshop and
investment activities
replace old production
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SEMI-ANNUAL REPORT 2019
equipment
Short-term borrowing
Net cash flow from
-32,459,238.76 -21,012,832.62 decreased in the
financing activities
current period
Net increase of cash Note receivable are
8,869,836.86 -54,379,579.55
and cash equivalent collected at maturity
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 164,964,344.94 156,855,763.07 4.92% 32.94% 34.97% -1.42%
Plastic
injection 111,142,622.51 97,350,242.91 12.41% -27.04% -30.76% 4.70%
hardware
Styrofoam 34,292,527.88 31,279,310.58 8.79% -17.96% -18.19% 0.26%
According to products
Display 164,964,344.94 156,855,763.07 4.92% 32.94% 34.97% -1.42%
Plastic
injection 111,142,622.51 97,350,242.91 12.41% -27.04% -30.76% 4.70%
hardware
Styrofoam 34,292,527.88 31,279,310.58 8.79% -17.96% -18.19% 0.26%
According to region
Hong Kong and
63,962,270.03 60,275,954.47 5.76% -17.18% -18.18% 1.15%
Taiwan
Central China 158,337,367.02 140,986,540.09 10.96% -20.17% -22.39% 2.55%
East China 88,099,858.28 84,222,822.00 4.40% 106.63% 112.14% -2.48%
III. Analysis of the non-main business
□Applicable √ Not applicable
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SEMI-ANNUAL REPORT 2019
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end last year
Ratio
Ratio in Ratio in Notes of major changes
Amount Amount changes
total assets total assets
47,981,541.6 65,403,374.3
Monetary fund 7.69% 10.55% -2.86%
1 0
Account 149,540,866. 182,542,130.
23.97% 29.45% -5.48%
receivable 46 75
86,709,541.7 37,519,314.3
Inventory 13.90% 6.05% 7.85%
6 4
Investment real 49,817,157.7 29,404,574.4
7.98% 4.74% 3.24%
estate 2 4
Long-term
equity 0.00% 0.00% 0.00%
investment
185,008,101. 108,018,926.
Fix assets 29.65% 17.43% 12.22%
52 67
Construction in
7,552,776.46 1.21% 654,356.00 0.11% 1.10%
process
Short-term 134,676,280. 85,012,392.0
21.58% 13.72% 7.86%
loans 00 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 deposit and frozen by court
Monetary Fund
11,150,495.15
Notes receivable Pledge
3,866,647.92
Accounts receivable
Pledge
14,609,128.53
Investment real estate Bank loan secured
37,728,701.12
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SEMI-ANNUAL REPORT 2019
Fixed assets Bank loan secured
42,487,962.49
Court closure
Liquidation of fixed assets
92,857,471.69
Intangible assets Bank loan secured
36,306,830.17
--
Total
239,007,237.07
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.
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SEMI-ANNUAL REPORT 2019
2. Sales of major equity
□ Applicable √Not applicable
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 181,643,11 472,002,52 222,311,68 318,755,72 1,694,08
Technolog Subsidiary 1,635,779.35
well as 1.00 1.79 5.87 6.11 8.29
y Company
import &
export
business
etc.
Leasing
Huafa and
1,000,000. 18,582,268 -1,921,466. 2,393,312. 400,723.
Property Subsidiary manageme 300,542.58
00 .84 74 63 44
Company nt of own
property
Leasing
Huafa and
1,000,000. 1,900,692. -5,026,990.
Lease Subsidiary manageme 0.00 0.00 0.00
00 20 71
Company nt of own
property
Leasing
Huafa and
1,000,000.
Hengtian Subsidiary manageme 995,680.41 995,680.41 0.00 -701.25 -701.25
00
Company nt of own
property
Leasing
Huafa and
1,000,000.
Hengtai Subsidiary manageme 996,716.29 996,716.29 0.00 -396.39 -396.39
00
Company nt of own
property
Particular about subsidiaries obtained or disposed in report period
13
SEMI-ANNUAL REPORT 2019
□Applicable √ Not applicable
Explanation of main holding company and stock-jointly companies
Nil
VIII. Structured vehicle controlled by the Company
□ Applicable √Not applicable
IX. Prediction of business performance from January – September 2019
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.
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SEMI-ANNUAL REPORT 2019
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/new/disclo
sure/detail?plate=s
Annual General zse&stockCode=0
AGM 48.02% 2019-05-21 2019-05-22
Meeting of 2017 00020&announce
mentId=12062889
41&announcement
Time=2019-05-22
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
Type of
Content of
Commitmen Commitmen Implementa
Commitments Promise commitmen commitmen
t date t term tion
ts
ts
Commitments for share reform
Commitments in report of
acquisition or equity change
Commitments in assets
15
SEMI-ANNUAL REPORT 2019
reorganization
Commitments make in initial public
offering or re-financing
Equity incentive commitment
Promise to
increasing
shares of
holding as
2.83 million
In 6 months
Wuhan shares of
since the Performanc
Zhongheng B-stock of 2017-11-20
date of e Finished
Group the
notification
Company in
6 months
since the
letter
Other commitments for medium
delivery
and small shareholders
Promise to
increasing
shares of
holding as
2.8 million In 6 months
Wuhan
shares of since the Performanc
Zhongheng 2017-11-28
A-stock at date of e Finished
Group
least in 6 notification
months
since the
letter
delivery
Completed on time(Y/N) Yes
If the commitments are not fulfilled
on time, shall explain the specify Not applicable
reason and the next work plan
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √no
The company's semi-annual report has not been audited.
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SEMI-ANNUAL REPORT 2019
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
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 arbitration
√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)
http://ww
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17
SEMI-ANNUAL REPORT 2019
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nounceme
ntId=120
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cementTi
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In March 2016,
the Company
and HUAFA
Science &
Technology suit
against the
follow
companies,
including
Shenzhen
Huayongxing
http://ww
Environmental
w.cninfo.
Technology Co., The
com.cn/c
Ltd., Shenzhen judgment
ninfo-new
Guangyong of 2nd trial
/disclosur
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e/szse_ma
Ltd., Shenzhen issued,
in/bulletin
Mingyi 1,964.92 No and has Ended Ended 2016-09-14
_detail/tru
Electronic Co., applied
e/120270
Ltd., Shenzhen for
2423?ann
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ounceTim
Technology Co., ry
e=2016-0
Ltd and execution
9-14
Shenzhen
07:41
Kangzhengxin
Technology Co.,
Ltd., for arrears
of rent. and
refuse to move
the site, forcibly
occupied switch
board room and
other power unit
under the name
of the Company
18
SEMI-ANNUAL REPORT 2019
In March 2016,
The
the Company http://ww
second
and HUAFA w.cninfo.
trial
Property suit com.cn/c
decides
against Shenzhen ninfo-new
the
Huayongxing /disclosur
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Environmental e/szse_ma
wins the
Technology Co., in/bulletin
947.26 No lawsuit on Implementing Implementing 2016-09-14
Ltd., and _detail/tru
15 March
Shenzhen e/120270
2018, and
Yidaxin 2423?ann
has
Technology Co., ounceTim
applied
Ltd. for contract e=2016-0
for
violation and 9-14
enforcem
refuse to move 07:41
ent
the site
http://ww
w.cninfo.
Application for
com.cn/n
arbitration in
ew/disclo
case of contract
sure/detai
dispute between
Arbitratio l?plate=sz
the V&T
n has se&stock
(Shenzhen) Law
been To be To be Code=00
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heard for adjudicated adjudicated 0020&an
Shenzhen
adjudicati nounceme
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5602053
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Other lawsuits
□Applicable √ Not applicable
IX. Penalty and rectification
□Applicable √ Not applicable
The Company has no penalty and rectification in the period
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
19
SEMI-ANNUAL REPORT 2019
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
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21
SEMI-ANNUAL REPORT 2019
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22
SEMI-ANNUAL REPORT 2019
operat detai
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23
SEMI-ANNUAL REPORT 2019
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l?pla
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24
SEMI-ANNUAL REPORT 2019
0&st
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18,93 65,26
Total -- -- -- -- -- -- -- --
6.73 3.35
Detail of sales return with major
N/A
amount involved
In the reporting, Hengfa Technology purchased LCD display screen from HK Yutian with
US$ 8.1662 million approximately, 33.33% of the annual amount predicted at the
beginning of the year; purchased LCD display screen from Hengsheng Photoelectricity
Report the actual implementation
with US $ 6.8918 million approximately, 38.29% of the annual amount predicted at the
of the daily related transactions
beginning of the year; purchasing LCD from Hengsheng Photoelectricity with about US
which were projected about their
$ 1.5097 million, 12.58% of the annual amount predicted at the beginning of the year; sold
total amount by types during the
LCD whole machine to HK Yutian with US $ 9.4896 million approximately, 27.11% of the
reporting period (if applicable)
annual amount predicted at the beginning of the year. Sold LCD (display screen) to
Hengsheng Photoelectricity with US $ 1.7731 million approximately, 30.57% 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
25
SEMI-ANNUAL REPORT 2019
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.
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
26
SEMI-ANNUAL REPORT 2019
(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
2019-08-
Technology Co., 30,000 2,267.63 liability One year N Y
27
Ltd. guarantee
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 30,000 5,926.83
subsidiaries in report period
report period (B1)
(B2)
Total amount of approved Total balance of actual
guarantee for subsidiaries at guarantee for subsidiaries at
30,000 2,267.63
the end of reporting period the end of reporting period
(B3) (B4)
Guarantee of the subsidiaries for 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)
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 5,926.83
(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 2,267.63
period (A3+B3+C2) report period (A4+B4+C4)
The proportion of the total amount of actually guarantee in
6.94%
the net assets of the Company (that is A4+ B4+C4)
27
SEMI-ANNUAL REPORT 2019
Including:
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees (if N/A
applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
Explanation on compound guarantee
Nil
(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 belong to the key sewage units released from environmental protection department
Not applicable
Listed companies and their subsidiaries do not belong to key pollutant discharge units announced by environmental protection
departments.
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
Unit of
Index Quantity /implementation
measure
I. Overall condition —— ——
II. Poverty alleviation by items —— ——
1.Industry development —— ——
28
SEMI-ANNUAL REPORT 2019
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
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
29
SEMI-ANNUAL REPORT 2019
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 has accepted the case formally. 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 and 9
Feb. 2018 respectively.
(ii) Major shareholders’ commitment to increase holdings
On November 20 and 28, 2017, the controlling shareholders made a commitment to increase the holding of 2.83
million shares of the company's B shares and not less than 2.8 million shares of the A shares, the commitment period
was within 6 months, and it has been completed in May 2019 after two times of postponement.
(iii) 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
pledged shares are deferred 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.
(iv) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,
accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judicially frozen
on September 27, 2016, and the frozen period was until September 13, 2021, which were frozen again by the
Shenzhen Intermediate People's Court on December 14, 2018, with a frozen period of 36 months, the remaining
2,800,000 shares were frozen by the Shenzhen Intermediate People's Court on May 29, 2019, and were frozen again
by the Higher People’s Court of Guangdong Province on July 5, 2019. For details, please refer to the company’s
announcements published on www.cninfo.com.cn on October 27, 2016, January 11, 2019, May 31, 2019 and
August 7, 2019.
30
SEMI-ANNUAL REPORT 2019
XVII. Significant event of subsidiary of the Company
□ Applicable √Not applicable
31
SEMI-ANNUAL REPORT 2019
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
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ 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
32
SEMI-ANNUAL REPORT 2019
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
Total preference shareholders
Total common stock
with voting rights recovered at
shareholders in reporting 23,417 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 116,100,000
119,289 119,289,8
Zhongheng non-state-owned 42.13% 2608800 0
,894 94 Frozen 119,289,894
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 0 5,355,249
person 49 Frozen 0
(Hong Kong)
Co., Ltd.
Guoyuan Overseas legal 1.36% 3,845,1 0 0 3,845,117 Pledged 0
33
SEMI-ANNUAL REPORT 2019
Securities person 17
Brokerage
Frozen 0
(Hong Kong)
Co., Ltd.
Overseas nature 2,830,0 Pledged 0
Li Zhongqiu 1.00% 2,830,000 0 2,830,000
person 00 Frozen 0
Zhong Domestic nature 1,277,4 Pledged 0
0.45% 1,277,494
Jiachao person 94 Frozen 0
Domestic nature Pledged 0
Li Senzhuang 0.35% 986,550 986,550
person Frozen 0
LI SHERYN Overseas nature Pledged 0
0.35% 980,100 980,100
ZHAN MING person Frozen 0
Domestic nature Pledged 0
Han Yaming 0.30% 864,200 864,200
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 119,289,894 119,289,894
share
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign 16,569,560
shares
Domestically
GOOD HOPE CORNER
12,700,000 listed foreign 12,700,000
INVESTMENTS LTD
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign 5,355,249
(Hong Kong) Co., Ltd.
shares
34
SEMI-ANNUAL REPORT 2019
Domestically
Guoyuan Securities Brokerage
3,845,117 listed foreign 3,845,117
(Hong Kong) Co., Ltd.
shares
Domestically
Li Zhongqiu 2,830,000 listed foreign 2,830,000
shares
RMB common
Zhong Jiachao 1,277,494 1,277,494
share
Domestically
Li Senzhuang 986,550 listed foreign 986,550
shares
Domestically
LI SHERYN ZHAN MING 980,100 listed foreign 980,100
shares
Domestically
Han Yaming 864,200 listed foreign 864,200
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 1,277,494 shares of the Company, of
shareholders involving margin
which, 743,494 shares held by normal account, and 534,000 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
35
SEMI-ANNUAL REPORT 2019
No changes of actual controllers for the Company in reporting period.
36
SEMI-ANNUAL REPORT 2019
Section VII. Preferred Stock
□ Applicable √Not applicable
The Company had no preferred stock in the Period.
37
SEMI-ANNUAL REPORT 2019
Section VIII. Particulars about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
Amount of
Amount of
Shares held shares
Start shares
Working End date at increased
Sex dated of
Title Age of office decreased in
Name status (M/F) office period-begi in this
term
term this period
n (Share) period
(Share)
(Share)
Chairma
Li Currentl
n/Gener 2,830,00 2,830,00
Zhongqi y in 0 0 0 0 0
al 0 0
u office
Manager
2,830,00 2,830,00
Total -- -- 0 0 0 0 0
0 0
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
No changes of directors, supervisors and senior executives, found more details in Annual Report 2018.
38
SEMI-ANNUAL REPORT 2019
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
39
深圳中恒华发股份有限公司 2019 年半年度报告全文
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
2019-08-27
In RMB
Item 2019-6-30 2018-12-31
Current assets:
Monetary funds 47,981,541.61 34,108,330.27
Settlement provisions
Capital lent
Tradable financial assets
Financial assets measured by fair
value and with variation reckoned
into current gains/losses
Derivative financial assets
Note receivable 10,427,934.87 69,185,516.71
Account receivable 149,540,866.46 116,797,834.51
Receivable financing
Accounts paid in advance 28,418,600.46 31,348,429.54
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 5,781,851.15 5,777,179.08
40
深圳中恒华发股份有限公司 2019 年半年度报告全文
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 86,709,541.76 62,973,909.38
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 1,218,695.38 59,370.18
Total current assets 330,079,031.69 320,250,569.67
Non-current assets:
Loans and payments on behalf
Debt investment
Finance asset available for sales
Other debt investment
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 49,817,157.72 50,681,322.86
Fixed assets 185,008,101.52 188,083,873.38
Construction in progress 7,552,776.46 5,727,760.23
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 43,977,752.24 41,815,689.74
Expense on Research and
Development
Goodwill
Long-term expenses to be
425,949.07 542,116.99
apportioned
Deferred income tax asset 6,829,856.59 6,829,856.59
41
深圳中恒华发股份有限公司 2019 年半年度报告全文
Other non-current asset 289,550.00 3,158,964.00
Total non-current asset 293,901,143.60 296,839,583.79
Total assets 623,980,175.29 617,090,153.46
Current liabilities:
Short-term loans 134,676,280.00 161,568,657.88
Loan from central bank
Capital borrowed
Transactional financial liability
Financial liability measured by
fair value and with variation reckoned
into current gains/losses
Derivative financial liability
Note payable 13,804,210.29 27,642,356.66
Account payable 102,035,210.28 60,975,306.43
Accounts received in advance 156,232.44 159,528.60
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 4,045,824.29 4,700,208.36
Taxes payable 11,609,232.63 11,232,819.87
Other account payable 31,040,362.49 26,778,863.92
Including: Interest payable 54,347.32 439,558.70
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Contractual liability
Liability held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 297,367,352.42 293,057,741.72
Non-current liabilities:
42
深圳中恒华发股份有限公司 2019 年半年度报告全文
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 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 297,431,763.42 293,122,152.72
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 -180,591,679.88 -183,172,091.01
Total owner’ s equity attributable to
326,548,411.87 323,968,000.74
parent company
Minority interests
Total owner’ s equity 326,548,411.87 323,968,000.74
Total liabilities and owner’ s equity 623,980,175.29 617,090,153.46
Legal representative: Li Zhongqiu
43
深圳中恒华发股份有限公司 2019 年半年度报告全文
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 2019-6-30 2018-12-31
Current assets:
Monetary funds 1,793,275.01 13,234,774.97
Transactional financial assets
Financial assets measured by fair
value and with variation reckoned
into current gains/losses
Derivative financial assets
Note receivable
Account receivable
Receivable financing
Accounts paid in advance 53,050.00 153,050.00
Other account receivable 111,782,724.70 99,155,253.08
Including: Interest receivable
Dividend
receivable
Inventories 14,806.50 14,806.50
Contractual assets
Assets held for sale
Non-current assets maturing
within one year
Other current assets 17,055.88
Total current assets 113,643,856.21 112,574,940.43
Non-current assets:
Debt investment
Available-for-sale financial
assets
Other debt investment
Held-to-maturity investments
Long-term receivables
44
深圳中恒华发股份有限公司 2019 年半年度报告全文
Long-term equity investments 186,608,900.00 186,608,900.00
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 25,770,502.38 26,374,703.70
Fixed assets 98,675,129.84 99,227,872.22
Construction in progress
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 4,626,182.10 4,698,654.96
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 7,506,905.90 7,506,905.90
Other non-current assets
Total non-current assets 323,187,620.22 324,417,036.78
Total assets 436,831,476.43 436,991,977.21
Current liabilities
Short-term borrowings 100,000,000.00 100,000,000.00
Transactional financial liability
Financial liability measured by
fair value and with variation reckoned
into current gains/losses
Derivative financial liability
Notes payable
Account payable 9,740,367.33 10,745,840.16
Accounts received in advance 41,605.01 41,937.00
Contractual liability
Wage payable 820,979.02 1,020,979.02
Taxes payable 7,423,067.53 7,161,707.15
Other accounts payable 22,811,198.36 22,672,441.54
Including: Interest payable
Dividend payable
45
深圳中恒华发股份有限公司 2019 年半年度报告全文
Liability held for sale
Non-current liabilities due
within one year
Other current liabilities
Total current liabilities 140,837,217.25 141,642,904.87
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee
compensation payable
Accrued 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 140,901,628.25 141,707,315.87
Owners’ 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
Special reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -211,210,243.57 -211,855,430.41
Total owner’s equity 295,929,848.18 295,284,661.34
Total liabilities and owner’s equity 436,831,476.43 436,991,977.21
46
深圳中恒华发股份有限公司 2019 年半年度报告全文
3. Consolidated Profit Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Total operating income 339,190,174.05 340,984,843.24
Including: Operating income 339,190,174.05 340,984,843.24
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 336,433,054.05 338,576,691.78
Including: Operating cost 297,580,208.34 302,582,979.44
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
Tax and extras 1,310,110.00 1,712,293.39
Sales expense 9,130,380.22 8,433,363.31
Administrative expense 19,616,991.39 20,400,985.42
R&D expense 3,726,992.86
Financial expense 5,068,371.24 5,447,070.22
Including: Interest
5,355,676.92 5,989,883.31
expenses
Interest
-419,336.28 -349,858.59
income
Add: other income
Investment income (Loss is
74,936.14 245,679.10
listed with “-”)
Including: Investment
income on affiliated company and joint
venture
47
深圳中恒华发股份有限公司 2019 年半年度报告全文
The termination of
income recognition for financial assets
measured by amortized cost(Loss is
listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging
income (Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
-8,432.50
(Loss is listed with “-”)
Losses of devaluation of
-5,941.50
asset (Loss is listed with “-”)
Income from assets disposal
129,039.57 -105,779.36
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
2,952,663.21 2,542,109.70
“-”)
Add: Non-operating income 232,758.00 887,662.07
Less: Non-operating expense 1,100.00 172,806.76
IV. Total profit (Loss is listed with “-”) 3,184,321.21 3,256,965.01
Less: Income tax expense 603,910.08 463,831.41
V. Net profit (Net loss is listed with
2,580,411.13 2,793,133.60
“-”)
(i) Classify by business continuity
1.continuous operating net profit
2,580,411.13 2,793,133.60
(net loss listed with ‘-”)
2.termination of net profit (net
loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to
2,580,411.13 2,793,133.60
owner’s of parent company
2.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
48
深圳中恒华发股份有限公司 2019 年半年度报告全文
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale financial
assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale
financial asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
49
深圳中恒华发股份有限公司 2019 年半年度报告全文
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 2,580,411.13 2,793,133.60
Total comprehensive income
attributable to owners of parent 2,580,411.13 2,793,133.60
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0091 0.0099
(ii) Diluted earnings per share 0.0091 0.0099
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
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 Semi-annual of 2019 Semi-annual of 2018
I. Operating income 18,041,135.31 16,961,088.74
Less: Operating cost 3,172,031.59 2,510,518.82
Taxes and surcharge 562,061.05 585,014.62
Sales expenses
Administration expenses 9,024,394.50 11,134,855.37
R&D expenses
Financial expenses 4,423,699.05 4,888,654.05
Including: interest
4,398,333.30 4,903,025.04
expenses
Interest income -9,938.10 -22,022.66
Add: other income
Investment income (Loss is
listed with “-”)
50
深圳中恒华发股份有限公司 2019 年半年度报告全文
Including: Investment
income on affiliated Company and
joint venture
The termination of
income recognition for financial
assets measured by amortized cost
(Loss is listed with “-”)
Net exposure hedging
income (Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of
asset (Loss is listed with “-”)
Income on disposal of
assets (Loss is listed with “-”)
II. Operating profit (Loss is listed
858,949.12 -2,157,954.12
with “-”)
Add: Non-operating income 1,300.00
Less: Non-operating expense 131,247.82
III. Total Profit (Loss is listed with
860,249.12 -2,289,201.94
“-”)
Less: Income tax 215,062.28 -444,975.63
IV. Net profit (Net loss is listed with
645,186.84 -1,844,226.31
“-”)
(i)continuous operating net
645,186.84 -1,844,226.31
profit (net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
51
深圳中恒华发股份有限公司 2019 年半年度报告全文
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive
income items which will be
reclassified subsequently to profit or
loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.gain/loss of fair value
changes for available-for-sale
financial assets
4.Amount of financial
assets re-classify to other
comprehensive income
5.Gain/loss of
held-to-maturity investments that
re-classify to available-for-sale
financial asset
6.Credit impairment
provision for other debt investment
7.Cash flow hedging
reserve
8.Translation differences
arising on translation of foreign
currency financial statements
9.Other
VI. Total comprehensive income 645,186.84 -1,844,226.31
VII. Earnings per share:
(i) Basic earnings per share 0.0023 -0.0065
(ii) Diluted earnings per share 0.0023 -0.0065
52
深圳中恒华发股份有限公司 2019 年半年度报告全文
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 283,565,570.88 195,284,689.59
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
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in
sale and purchase of securities
Write-back of tax received
Other cash received concerning
3,403,272.55 3,010,278.37
operating activities
Subtotal of cash inflow arising from
286,968,843.43 198,294,967.96
operating activities
Cash paid for purchasing
commodities and receiving labor 182,811,441.04 158,655,192.45
service
Net increase of customer loans
and advances
Net increase of deposits in
53
深圳中恒华发股份有限公司 2019 年半年度报告全文
central bank and interbank
Cash paid for original insurance
contract compensation
Net increase of financial assets
held for transaction purposes
Net increase of capital lent
Cash paid for interest,
commission charge and commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
33,770,584.01 35,688,181.95
workers
Taxes paid 4,582,072.62 12,954,614.98
Other cash paid concerning
20,610,525.20 17,668,304.21
operating activities
Subtotal of cash outflow arising from
241,774,622.87 224,966,293.59
operating activities
Net cash flows arising from operating
45,194,220.56 -26,671,325.63
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
74,936.14 253,638.00
income
Net cash received from disposal
of fixed, intangible and other 320,500.00 737,982.00
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
49,000,000.00 80,000,000.00
investing activities
Subtotal of cash inflow from
49,395,436.14 80,991,620.00
investing activities
Cash paid for purchasing fixed,
4,360,231.13 7,537,161.50
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
54
深圳中恒华发股份有限公司 2019 年半年度报告全文
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
49,000,000.00 80,000,000.00
investing activities
Subtotal of cash outflow from
53,360,231.13 87,537,161.50
investing activities
Net cash flows arising from investing
-3,964,794.99 -6,545,541.50
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 61,315,748.80 156,361,250.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
61,315,748.80 156,361,250.00
financing activities
Cash paid for settling debts 88,051,864.63 172,529,301.86
Cash paid for dividend and
5,723,122.93 4,844,780.76
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
93,774,987.56 177,374,082.62
financing activities
Net cash flows arising from financing
-32,459,238.76 -21,012,832.62
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 99,650.05 -149,879.80
exchange rate
V. Net increase of cash and cash
8,869,836.86 -54,379,579.55
equivalents
55
深圳中恒华发股份有限公司 2019 年半年度报告全文
Add: Balance of cash and cash
27,961,209.60 81,474,974.30
equivalents at the period -begin
VI. Balance of cash and cash
36,831,046.46 27,095,394.75
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Semi-annual of 2019 Semi-annual of 2018
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 16,386,026.55 11,824,697.08
services
Write-back of tax received
Other cash received concerning
4,240,814.47 107,677,057.73
operating activities
Subtotal of cash inflow arising from
20,626,841.02 119,501,754.81
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
1,551,291.30 1,812,043.81
workers
Taxes paid 791,510.74 3,627,519.72
Other cash paid concerning
25,327,205.64 116,155,663.65
operating activities
Subtotal of cash outflow arising from
27,670,007.68 121,595,227.18
operating activities
Net cash flows arising from operating
-7,043,166.66 -2,093,472.37
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
56
深圳中恒华发股份有限公司 2019 年半年度报告全文
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from
investing activities
Cash paid for purchasing fixed,
1,696,400.00
intangible and other long-term assets
Cash paid for investment
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from
1,696,400.00
investing activities
Net cash flows arising from investing
-1,696,400.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 100,000,000.00
Cash received from issuing
bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from
100,000,000.00
financing activities
Cash paid for settling debts 116,054,041.68
Cash paid for dividend and
4,398,333.30 3,884,001.07
profit distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
4,398,333.30 119,938,042.75
financing activities
Net cash flows arising from financing
-4,398,333.30 -19,938,042.75
activities
57
深圳中恒华发股份有限公司 2019 年半年度报告全文
IV. Influence on cash and cash
equivalents due to fluctuation in 424.56
exchange rate
V. Net increase of cash and cash
-11,441,499.96 -23,727,490.56
equivalents
Add: Balance of cash and cash
12,024,179.58 25,181,764.87
equivalents at the period -begin
VI. Balance of cash and cash
582,679.62 1,454,274.31
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
Semi-annual of 2019
Owners’ equity attributable to the parent Company
Other
equity
Othe
instrument Less Tota
r Prov
Per : Reas Min l
Item Sha Capi com Surp ision Reta
pet Inve onab ority own
re Pre tal preh lus of ined Othe Subt
ual ntor le inter ers’
cap fer reser ensi reser gene profi r otal
cap Ot y reser ests equit
ital red ve ve ve ral t
ital her shar ve y
sto inco risk
sec es
ck me
urit
ies
283
146, 77,3 -183 323, 323,
I. Balance at ,16
587, 91,5 ,172, 968, 968,
the end of the 1,2
271. 93.2 091. 000. 000.
last year 27.
50 5 01 74 74
00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
58
深圳中恒华发股份有限公司 2019 年半年度报告全文
283
146, 77,3 -183 323, 323,
II. Balance at ,16
587, 91,5 ,172, 968, 968,
the beginning 1,2
271. 93.2 091. 000. 000.
of this year 27.
50 5 01 74 74
00
III. Increase/
Decrease in 2,58 2,58 2,58
this year
0,41 0,41 0,41
(Decrease is
listed with 1.13 1.13 1.13
“-”)
(i) Total 2,58 2,58 2,58
comprehensiv 0,41 0,41 0,41
e income 1.13 1.13 1.13
(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
59
深圳中恒华发股份有限公司 2019 年半年度报告全文
forward
internal
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．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in
the report
period
(VI)Others
283
146, 77,3 -180 326, 326,
IV. Balance at ,16
587, 91,5 ,591, 548, 548,
the end of the 1,2
271. 93.2 679. 411. 411.
report period 27.
50 5 88 87 87
00
Last Period
In RMB
60
深圳中恒华发股份有限公司 2019 年半年度报告全文
Semi-annual of 2018
Owners’ equity attributable to the parent Company
Other
equity
instrument
Pe Othe
Less
rpe r Prov Total
: Reas Mino
Sha tua Capi com Surp ision Reta owne
Item Pr Inve onab rity
re l tal preh lus of ined Othe Subt rs’
efe ntor le intere
cap ca reser ensi reser gene profi r otal equit
rre Oth y reser sts
ital pit ve ve ve ral t y
d er shar ve
al inco risk
sto es
sec me
ck
uri
tie
s
283
146, 77,3 -186 320,
I. Balance at ,16 320,6
587, 91,5 ,467, 672,
the end of the 1,2 72,97
271. 93.2 113. 978.
last year 27. 8.02
50 5 73 02
00
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Enterprise
combine
under the
same
control
Other
283
146, 77,3 -186 320,
II. Balance at ,16 320,6
587, 91,5 ,467, 672,
the beginning 1,2 72,97
271. 93.2 113. 978.
of this year 27. 8.02
50 5 73 02
00
III. Increase/
Decrease in 2,79 2,79 2,793
this year
3,13 3,13 ,133.
(Decrease is
listed with 3.60 3.60 60
“-”)
(i) Total
2,79 2,79 2,793
comprehensi
61
深圳中恒华发股份有限公司 2019 年半年度报告全文
ve income 3,13 3,13 ,133.
3.60 3.60 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
62
深圳中恒华发股份有限公司 2019 年半年度报告全文
conversed to
capital (share
capital)
3.
Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings
from other
comprehensi
ve income
6. Other
(V)
Reasonable
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
(VI)Others
283
146, 77,3 -183 323,
IV. Balance ,16 323,4
at the end of 587, 91,5 ,673, 466,
1,2 66,11
the report 271. 93.2 980. 111.
period 27. 1.62
50 5 13 62
00
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Semi-annual of 2019
Other equity Capita Less: Other Reaso Surplu Retai
Share Total
Item instrument l Invent compr nable s ned
capit Other owners’
Prefe Perp Othe public ory ehensi reserv reserv profi
al equity
rred etual r reserv shares ve e e t
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深圳中恒华发股份有限公司 2019 年半年度报告全文
stock capit e incom
al e
secur
ities
-211,
I. Balance at 283,1 146,58 77,391
855, 295,284,
the end of the 61,22 7,271. ,593.2
430. 661.34
last year 7.00 50 5
41
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
-211,
II. Balance at 283,1 146,58 77,391
855, 295,284,
the beginning 61,22 7,271. ,593.2
430. 661.34
of this year 7.00 50 5
41
III. Increase/
Decrease in 645,
645,186.
this year 186.
84
(Decrease is 84
listed with “-”)
(i) Total 645,
645,186.
comprehensive 186.
84
income 84
(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
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深圳中恒华发股份有限公司 2019 年半年度报告全文
(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
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 295,929,
283,1 146,58 77,391 -211,
the end of the
61,22 7,271. ,593.2 210, 848.18
report period
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深圳中恒华发股份有限公司 2019 年半年度报告全文
7.00 50 5 243.
57
Last period
In RMB
Semi-annual of 2018
Other equity
instrument
Other
Perp Capit
Shar Less: compr Surpl
Pref etual al Reason Total
Item e Invent ehensi us Retaine
erre capit public able Other owners’
capit Othe ory ve reserv d profit
d al reserv reserve equity
al r shares incom e
stoc secu e
e
k ritie
s
283,
I. Balance at 146,5 77,39 -210,55
161, 296,587,
the end of the 87,27 1,593 2,845.9
227. 245.80
last year 1.50 .25 5
00
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Other
283,
II. Balance at 146,5 77,39 -210,55
161, 296,587,
the beginning 87,27 1,593 2,845.9
227. 245.80
of this year 1.50 .25 5
00
III. Increase/
Decrease in
this year -1,844, -1,844,22
(Decrease is 226.31 6.31
listed with
“-”)
(i) Total
-1,844, -1,844,22
comprehensiv
226.31 6.31
e income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
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深圳中恒华发股份有限公司 2019 年半年度报告全文
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
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
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深圳中恒华发股份有限公司 2019 年半年度报告全文
other
comprehensiv
e income
6. 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 -212,39
161, 294,743,
the end of the 87,27 1,593 7,072.2
227. 019.49
report period 1.50 .25 6
00
III. Company profile
(i) The registration place of the enterprise, the form of organization and the headquarters address
Shenzhen Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company),
established on 8 December 1981. Uniform social credit 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
(ii) 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 color TV set, liquid crystal display, LCD (operates in branch),
radio-recorder, sound equipment, electronic watch, 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 electronic products 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 Jilin. Setting up branches in capital of the province (Lhasa City excluded) in China and
municipality directly under the central government.
(iii) Relevant party offering approval reporting of financial statements and date thereof
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深圳中恒华发股份有限公司 2019 年半年度报告全文
The financial statement has been deliberated and approved by BOD on 23 August 2019. According to Article of
Association, the statement shall be submitted for deliberation in shareholders general meeting.
Consolidate scope in the Period including: parent company – Shenzhen Zhongheng HUAFA Company Limited,
subsidiary including Shenzhen HUAFA Property Leasing Management Co., Ltd. (no annual inspection in 2011,
and business license revoke on 1 April 2014), Shenzhen Zhongheng HUAFA property Co., Ltd., Wuhan Hengfa
Technology Co., Ltd., Shenzhen HUAFA Hengtian Co., Ltd. and Shenzhen HUAFA Hengtai Co., Ltd. more of
subsidiaries found in “Note IX. Equity in other subjects”.
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 have 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 characteristic, the Group formulate specific accounting policy and accounting
estimation, including trade cycle, reorganization and measurement on account bad debt provision of receivables,
inventory measurement, classification and depreciation method of fixed assets, intangible assets amortization and
reorganization 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 30 th
June 2019 and the operation results as well as cash flow for the first half year of 2019.
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深圳中恒华发股份有限公司 2019 年半年度报告全文
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1 st 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.
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 identified net assets from
acquiree’s, the differences should be recognized as goodwill. If the consolidation cost less than the fair value
amount of identified net assets from acquiree’s, the differences should reckoned into current non-operating
income.
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深圳中恒华发股份有限公司 2019 年半年度报告全文
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. Offset 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.
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
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深圳中恒华发股份有限公司 2019 年半年度报告全文
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 approximate exchange rate of the spot exchange rate on transaction occurred should be used for standard
money conversion while foreign currency exchange 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)
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深圳中恒华发股份有限公司 2019 年半年度报告全文
reckoned into current gains/losses or recognized as other consolidated 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. Items of revenue and expenses in profit statement, should
converted by the approximate exchange rate of spot exchange rate on occurring date. The conversion difference of
the foreign currency financial statements is listed specifically in the owners’ equity in the balance sheet. If the
foreign cash flow determined by rational system method, the approximate exchange rate of spot exchange rate on
occurring date should prevail. 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. Financial instrument
Financial asset or financial liability is recognized when the Company becomes a party to financial instrument
contract.
(1) Classification, recognition and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, the Company classifies the financial assets into the financial assets measured at amortized cost,
the financial assets measured at fair value and whose changes are included in other comprehensive income, and
the financial assets measured at fair value and whose changes are included in current profit or loss.
Financial assets are measured at fair value on initial recognition. For financial assets measured at fair value and
whose changes are included in current profit or loss, the related transaction expenses are directly included in
current profit or loss. For other types of financial assets, the related transaction costs are included in the initial
recognition amount. For the accounts receivable or notes receivable arising from the sale of products or the
provision of labor services that do not contain or consider the significant financing components, the Company
uses the consideration amount that is expected to be received as the initial recognition amount.
①Financial assets measured at amortized cost
The Company's business model for managing financial assets measured at amortized cost is to collect contractual
cash flows, and the contractual cash flow characteristics of such financial assets are consistent with the basic
borrowing and lending arrangements, i.e. the cash flows generated on a specific date are only the payment for the
principal and the interest based on the outstanding principal amount. The Company adopts effective interest
method for this type of financial assets which are subsequently measured at amortized cost, the gains or losses
arising from amortization or impairment are included in current profit or loss.
② Financial assets measured at fair value and whose changes are included in other comprehensive income
The Company's business model for managing such financial assets is to target at both the collection of contractual
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深圳中恒华发股份有限公司 2019 年半年度报告全文
cash flows and the sale, and the contractual cash flow characteristics of such financial assets are consistent with
the basic borrowing and lending arrangements. The Company adopts the fair value measurement for such
financial assets and whose changes are included in the current profit and loss, but the impairment losses or gains,
exchange gains and losses and interest income calculated by using the effective interest method are included in
current profit or loss.
In addition, the Company designates part of non-trading equity instrument investments as financial assets
measured at fair value and whose changes are included in other comprehensive income. The Company's related
dividend income of such financial assets is included in the current profit and loss, and the changes in fair value are
included in other comprehensive income. When the financial assets are derecognized, the accumulated gains or
losses previously included in other comprehensive income are transferred from other comprehensive income to
retained earnings, which are not included in current profit or loss.
③Financial assets carried at fair value through profit or loss for the current period
The Company classifies the financial assets except the above financial assets measured at amortized cost and the
above financial assets measured at fair value and whose changes are included in other comprehensive income into
the financial assets measured at fair value and whose changes are included in current profit or loss. In addition, at
the time of initial recognition, the Company designates part of financial assets as financial assets measured at fair
value and whose changes are included in current profit or loss in order to eliminate or significantly reduce
accounting mismatch. For such financial assets, the Company adopts fair value for subsequent measurement, and
changes in fair value are included in current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured by fair value with
changes counted into current gains/losses and other financial liabilities. For financial liabilities classified as fair
value through profit or loss, relevant transaction costs are directly recognized in profit or loss for the period. For
financial liabilities classified as other categories, relevant transaction costs are included in the amount initially
recognized.
① Financial liabilities at fair value through profit or loss for the period
Financial liabilities measured at fair value and whose changes are included in current profits or losses include the
trading financial liabilities (including derivatives belong to financial liabilities) and the financial liabilities that are
designated as fair value in the initial recognition and whose changes are included in current profit or loss.
Trading financial liabilities (including derivatives belong to financial liabilities) are subsequently measured at fair
value, in addition to those related to hedge accounting, the changes in fair value are included in current profit or
loss.
A financial liability designated to be measured at fair value and whose changes are included in current profit or
loss, and of which the changes in fair value arising from changes in the Company's own credit risk are included in
other comprehensive income, when the liability is derecognized, its accumulated amount of changes in fair value
included in other comprehensive income and the changes arising from its own credit risk are transferred to
retained earnings. The remaining changes in fair value are included in the current profit and loss. If the effects of
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深圳中恒华发股份有限公司 2019 年半年度报告全文
changes in the own credit risk of these financial liabilities are handled as described above, but the handling causes
or expands the accounting mismatch in the profit or loss, the Company will include all gains or losses of the
financial liabilities (including the amount affected by changes in the credit risk of the enterprise itself) in the
current profit and loss.
② Other financial liabilities
Other financial liabilities, except for the financial liabilities whose transfer of financial assets doesn’t fit the
derecognition condition or continue to be involved in the transferred financial assets, and the financial guarantee
contract, are classified as financial liabilities measured at amortized cost, which takes follow-up measurement by
amortized cost, the gains or losses arising from derecognition or amortization are included in current profit or loss.
(3) Recognition basis and measurement method for transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available: ①Termination
of the contract right to take the cash flow of the financial assets; ② transferred to the transferring-in part nearly all
risk and compensation; ③ all risk and compensation neither transferred nor retained, and with the give-up of the
control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and without the
give-up of the control over the financial assets, it was recognized according to the extension of the continual entry
into the transferred financial assets and relevant liabilities are correspondingly recognized. The continual entry
into the transferred financial assets is risk level which the enterprise faces up to due to the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the book value of the
transferred assets, together with the difference between the consideration value and the accumulative total of the
fair value change of the other consolidated income, is reckoned into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the book value of the
transferred assets is diluted on the relative fair value between the terminated part and the un-terminated part; and
reckoned into the current loss/gain is the difference between the sum of the consideration value and the
accumulative sum of the valuation change ought to be diluted into the recognition termination part but into the
other consolidated income, and the above diluted book value, is reckoned into the current loss/gain.
For financial assets that are transferred with recourse or endorsement, the Group needs to determine whether the
risk and rewards of ownership of the financial asset have been substantially transferred. If the risk and rewards of
ownership of the financial asset have been substantially transferred, the financial assets shall be derecognized. If
the risk and rewards of ownership of the financial asset have been retained, the financial assets shall not be
derecognized. If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset, the Group shall assess whether the control over the financial asset is retained, and the financial
assets shall be accounted for according to the above paragraphs.
(4) Termination recognition of financial liabilities
Only is released the whole (or part) of the current duties, the termination of the liabilities (or part of it) is available.
The Group (the debtor) signed the agreement with the lender: the original liabilities are replaced by the bearing of
the new liabilities; and the contract terms are fundamentally different of the new liabilities and the original ones;
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深圳中恒华发股份有限公司 2019 年半年度报告全文
the termination of the recognition of the original ones is available; and the recognition of new ones is available. If
the Company makes substantial changes to the contractual terms of the original financial liabilities (or a part
thereof), derecognize the original financial liabilities, and recognize a new financial liability in accordance with
the revised terms.
If the financial liability (or a part thereof) is derecognized, the Company includes the difference between the book
value and the consideration paid (including the transferred non-cash assets or liabilities assumed) in current profit
or loss.
(5) Balance-out between the financial assets and liabilities
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial
assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition,
the financial assets and liabilities are listed in the balance sheet without being balanced out.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can get by selling an asset or has to pay for transferring a
liability in an orderly transaction that occurs on the measurement date. For a financial instrument having an active
market, the Company uses the quoted prices in the active market to determine its fair value. Quotations in an
active market refer to prices that are readily available from exchanges, brokers, industry associations, pricing
services, etc., and represent the prices of market transactions that actually occur in an arm's length transaction. If
there is no active market for a financial instrument, the Company uses valuation techniques to determine its fair
value. Valuation techniques include reference to prices used in recent market transactions by parties familiar with
the situation and through voluntary trade, and reference to current fair values of other financial instruments that
are substantially identical, discounted cash flow methods, and option pricing models. At the time of valuation, the
company adopts valuation techniques that are applicable in the current circumstances and that are sufficiently
supported by data and other information, selects the input value with characteristics consistent with the
characteristics of assets or liabilities to be considered in the transactions of the relevant assets or liabilities of the
market participants, and uses the relevant observable input values as much as possible. Use unallowable input
values if the relevant observable input values are not available or are not practicable.
(7) Impairment of financial assets
The financial assets that the Company needs to recognize impairment loss are financial assets measured at
amortized cost, debt instruments investment that are measured at fair value and whose changes are included in
other comprehensive income, and lease receivables, mainly including bills receivable, account receivables, other
receivables, debt investment, other debt investments, long-term receivables, etc. In addition, for contract assets
and some financial guarantee contracts, the impairment provision is also made and credit impairment losses are
recognized in accordance with the accounting policies described in this section.
①Confirmation method of impairment provision
On the basis of expected credit losses, the Company makes provision for impairment and confirms credit
impairment losses for each of the above items in accordance with its applicable expected credit loss measurement
method (general method or simplified method).
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深圳中恒华发股份有限公司 2019 年半年度报告全文
Credit loss refers to the difference between all contractual cash flows that the Company discounts at the original
actual interest rate and are receivable in accordance with contract and all cash flows expected to be received, that
is, the present value of all cash shortages. Among them, for the purchase or source of financial assets that have
suffered credit impairment, the Company discounts the financial assets at the actual interest rate adjusted by
credit.
The general method for measuring the estimated credit loss is that the Company assesses whether the credit risk of
the financial assets (including other applicable items such as contract assets, the same below) has been
significantly increased since the initial recognition on each balance sheet date, if the credit risk has increased
significantly after the initial recognition, the Company shall measure the loss preparation according to the amount
of expected credit loss in the whole duration; if the credit risk has not increased significantly since the initial
recognition, the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the next 12 months. The Company considers all reasonable and evidenced information, including
forward-looking information, when evaluating expected credit losses.
For the financial instrument with lower credit risk on the balance sheet date, the Company assumes that its credit
risk has not increased significantly since the initial recognition, and measures the loss provisions according to the
expected credit losses in the next 12 months.
② Judging criteria for whether credit risk has increased significantly since initial recognition
If the probability of default of a financial asset within the estimated duration recognized on the balance sheet is
significantly higher than the probability of default within the estimated duration decided at the initial recognition,
it indicates that the credit risk of the financial asset is significantly increased. Except for special circumstances,
the Company uses the change in default risk occurring within the next 12 months as a reasonable estimate of the
change in default risk throughout the duration to determine whether the credit risk has increased significantly
since the initial recognition.
③A combined approach to assessing expected credit risk on a portfolio basis
The Company evaluates credit risk individually for financial assets with significantly different credit risks. Such
as receivables from related parties; receivables that are in dispute with the other party or involve litigation or
arbitration; receivables have clear indications that the debtor is likely to be unable to fulfill the repayment
obligations.
In addition to financial assets that assess credit risk individually, the Company classifies financial assets into
different groups based on common risk characteristics and evaluates credit risk on a portfolio basis.
④Accounting treatment of financial assets impairment
At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the
estimated credit loss is greater than the carrying amount of its current impairment provision, the difference is
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深圳中恒华发股份有限公司 2019 年半年度报告全文
recognized as the impairment loss; if it is less than the carrying amount of the current impairment provision, the
difference is recognized as an impairment gain.
11.Note receivable
Found more in 10.(7)-Impairment of financial assets
12. Account receivable, account receivable
For receivables that do not contain significant financing components, the Company measures the loss provision
based on the amount of expected credit losses equivalent to the entire duration of the period.
For receivables that contain significant financing components, the Company measures the loss provision always
based on the amount of expected credit losses equivalent to the entire duration of the period.
In addition to accounts receivable whose credit risk is assessed individually, they are classified into different
combinations based on their credit risk characteristics:
Item Basis
Account age Take the account age of receivable as the credit risk characteristics
Related party The related parties in consolidate scope
(8) Determination and accounting treatment on the expected credit losses of account receivable found more in
10(7)Impairment of financial assets above mentioned
13. Receivable financing
Including the note receivable and account receivable that measured on fair value and with its variation reckoned
into other comprehensive income on balance sheet date.
14. Other account receivable
Determination and accounting treatment on the expected credit losses of other account receivable
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The Company measures the impairment loss based on the amount of expected credit losses in the next 12 months
or the entire duration based on whether the credit risk of other receivables has increased significantly since the
initial recognition.
15. 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. Mainly including raw material, revolving materials, outside
processing materials, wrappage, low-value consumption goods, goods in process, semi-finished goods, stocks and
so on.
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
16. Long-term equity investment
1. Recognition of initial investment cost
For a long-term equity investment obtained by a business combination, if it is a business combination under the
same control, take the share of the combine party obtained in the book value of the net assets in the consolidated
financial statements of the ultimate controlling party on the combination date as the initial investment cost; 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
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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, the initial investment cost is
recognized on the relevant rules in the “Accounting Standards for Business Enterprise No. 7- Exchange of
Non-Monetary Assets”
2. Subsequent measurement and profit or loss recognition
Where the company 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 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.
17. Investment real estate
Measurement for investment real estate
Cost method
Depreciation or amortization method
The types of investment real estate of the Company include the leased land use rights, leased buildings, and land
use rights held and prepared for transfer after appreciation. Investment real estate is initially measured at cost and
subsequently measured by using the cost model.
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
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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.
18. 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
Machinery equipment 10 10.00 9.00
depreciation
Straight-line
Mold equipment 3 10.00 30.00
depreciation
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.
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(3) Recognition basis, valuation and depreciation method for fixed assets under financing lease
The fixed assets under financing lease are the lease that has substantially transferred all the risks and rewards
associated with asset ownership. The initial valuation of the fixed assets under financing lease is to take the lower
one between the fair value of the leased assets and the present value of the minimum lease payments on the start
date of the lease period as the entry value; the subsequent valuation of the fixed assets under financing lease
adopts the depreciation policy consistent with the own fixed assets to make depreciation and impairment
provision.
19. Construction in process
Construction in process of the Company divided as self-run construction and out-bag construction. The
Construction in process 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.
20. 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
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
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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.
21. 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 expected 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
shall be transferred to intangible assets accounting.
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22. Long-term assets 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.
23. Long-term deferred expenditure
The Company’s long-term deferred expenditure are expenses paid out and with one year above (one-year
excluded) benefit period. The long-term deferred expenses are diluted by periods according to the benefit period.
As the long-term deferred expenses cannot enable the accounting period’s beneficiary, all dilution values of the
project undiluted yet, are transferred into the current loss/gain.
24. Employees remuneration
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profit
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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
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.
25. 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
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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.
26. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented the new revenue standards
□Yes √No
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
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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.
27. Government subsidy
1.Category of government subsidy and accounting treatment
Governments subsidy of the Company refer to the monetary and non-monetary assets obtained from government
for free (excluding the capital invested by government as an owner). If the government grants are monetary assets,
it shall be measured according to the amount received or receivable. If the government grants are non-monetary
assets, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the
nominal amount.
Government grants related to daily activities are included in other income in accordance with the economic
business. Government grants not related to daily activities are included in the non-operating income and
expenditure.
Government grants that the government documents clearly stipulate to be used for the purchase and establishment
or forming long-term assets in other way are recognized as government grants related to assets. For the
government grants that the government documents do not clearly specify the subsidy target and can form
long-term assets, the part corresponding to the asset value is recognized as the government grants related to the
assets, and the rest is recognized as the government grants related to the income. For the government grants which
are difficult to be distinguished, recognize the whole as the government grants related to the income. Government
grants related to assets are recognized as deferred income. The amount recognized as deferred income is included
in the current profit and loss in a reasonable and systematic manner within the useful life of the relevant asset.
Government grants other than government grants related to assets are recognized as government grants related to
income. If the government grants related to the income are used to compensate the related expenses or losses of
the enterprise in the future period, recognize them as deferred income and include them in the current profit and
loss during the period of recognizing the related expenses. The government grants used to compensate the relevant
expenses or losses incurred by the enterprise are directly included in the current profit and loss.
The Company obtained the policy preferential loan interest subsidy, and the finance allocated the interest subsidy
funds to the loan bank, and the loan bank provides loans to the Company at a preferential interest rate, take the
actual amount of the loan received as the entry value of the loan, and calculate the relevant borrowing costs
according to the loan principal the policy preferential interest rate. If the finance directly appropriates the interest
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subsidy funds to the Company, the Company will offset the relevant borrowing costs with the corresponding
interest subsidy.
2. Time points to recognize the government grants
Government grants are recognized when they meet the conditions attached to government grants and can be
received. Government grants measured in accordance with the amount receivable are recognized when there is
conclusive evidence at the end of the period that it meets the relevant conditions stipulated in the financial support
policy and is expected to receive financial support funds. Other government grants other than government grants
measured in accordance with the receivable amount are recognized when the grant is actually received.
28. 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 assets 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
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.
29. Leasing
(1) 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.
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(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 payable.
30. Changes in important accounting policies and estimates
(1)Changes in important accounting policies
√ Applicable □Not applicable
Content and reason of changes in
Approval procedure Note
accounting policies
The Ministry of Finance issued the
Accounting Standards for Business
Enterprise No. 22- Recognition and
Measurement of Financial Instruments,
Accounting Standards for Business
Enterprise No. 23- Transfer of Financial
Assets, Accounting Standards for
Business Enterprise No. 24- Hedge
Accounting and Accounting Standards Change of the accounting policy has
for Business Enterprise No. 37- deliberated and approved by the 11th
Presentation of Financial Instruments session of 9th BOD
after revised in 2017 ( these four items
are collectively referred to as the new
financial instrument standards).The
Company implemented the above
mentioned new standards after revision
since 1st January 2019, and relevant
content with accounting policy
concerned are been adjusted.
In April 2019, the Ministry of Finance
issued the Notice on Revision and
Issuance of 2019 Financial Statement
Format for General Corporate (Cai Kuai Change of the accounting policy has
deliberated and approved by the 11th
[2019] No.6) (hereinafter referred to as
Financial Statement Format), in terms of session of 9th BOD
the financial statement of mid-term
2019, the annual financial statement and
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later period’s financial statement are
required to preparing in line with the
Accounting Standards for Business
Enterprise and Financial Statement
Format.
The Company will implement the relevant regulation of Cai Kuai (2019) No.6 issued by Ministry of Finance, relevant financial
statements are been adjusted. Items and amount has major influence on 31st December 2018 in balance sheet are as:
Item Consolidate balance sheet
Before adjustment After adjustment
Note receivable and account receivable 185,983,351.22
Note receivable 69,185,516.71
Account receivable 116,797,834.51
Note payable and account payable 88,617,663.09
Note payable 27,642,356.66
Account payable 60,975,306.43
(2)Changes in important accounting estimates
□ Applicable √Not applicable
(3)Adjustment the financial statements at the beginning of the first year of implementation of new financial
instrument standards, new revenue standards and new leasing standards
□ Applicable √Not applicable
(4)Retrospective adjustment of early comparison data description when initially implemented the new
financial instrument standards and new leasing standards
□ Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
Taxes Taxation basis Tax rate
VAT Domestic sales revenue 16%, 13% 6%, 5%, 3%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 15%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%, 1.5%
Property tax 0% of original value of the property 1.2%
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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 2018 was 15%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
RMB/CNY
Item Closing balance Opening balance
Cash on hand 426,742.83 236,354.29
Bank deposit 37,614,899.02 28,935,450.70
Other monetary fund 9,939,899.76 4,936,525.28
Total 47,981,541.61 34,108,330.27
Other explanation
Other monetary funds are bank acceptance deposits.
2. Note receivable
(1)Category
RMB/CNY
Item Closing balance Opening balance
Bank acceptance bill 4,773,726.59 56,817,845.23
Commercial acceptance bill 5,654,208.28 12,367,671.48
Total 10,427,934.87 69,185,516.71
RMB/CNY
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Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Accrua value Amoun Proport Accrual value
Amount
t ion t l ratio t ion ratio
Including:
Including:
Accrual of bad debt provision on single basis:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer to
the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
(2)Note receivable that pledged at period-end
RMB/CNY
Item Amount pledged at period-end
Bank acceptance bill 3,866,647.92
Total 3,866,647.92
(3)Notes endorsement or discount and undue on balance sheet date
RMB/CNY
Item Amount derecognition at period-end Amount not derecognition at period-end
Bank acceptance bill 21,094,964.31
Commercial acceptance bill 48,107,418.75
Total 69,202,383.06
92
深圳中恒华发股份有限公司 2019 年半年度报告全文
3. Account receivable
(1)Category
RMB/CNY
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Accrua value Amoun Proport Amoun Accrual value
t ion t l ratio t ion t ratio
Account receivable
with bad debt 13,144, 13,144, 100.00 13,144, 13,144, 100.00
8.08% 0.00 8.08% 0.00
provision accrual 007.21 007.21 % 007.21 007.21 %
on a single basis
Including:
Account receivable
with single
significant amount 7,556,3 7,556,3 100.00 7,556,3 7,556,3 100.00
4.64% 0.00 4.64% 0.00
and withdrawal 63.72 63.72 % 63.72 63.72 %
bad debt provision
on single basis
Account receivable
with single minor
amount but with 5,587,6 5,587,6 100.00 5,587,6 5,587,6 100.00
3.43% 0.00 3.43% 0.00
bad debts provision 43.49 43.49 % 43.49 43.49 %
accrued on a single
basis
Account receivable
149,54 149,54 116,79
with bad debt 91.92 116,797,8
1,677.7 811.28 0.00% 0,866.4 8,645.7 91.88% 811.28 0.01%
provision accrual % 34.51
4 6 9
on portfolio
Including:
162,68 149,54 129,94
13,144, 13,144, 116,797,8
Total 5,684.9 0,866.4 2,653.0
818.49 818.49 34.51
5 6 0
Accrual of bad debt provision on single basis: 7,556,363.72 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Portman 2,555,374.75 2,555,374.75 100.00% Uncollectible
93
深圳中恒华发股份有限公司 2019 年半年度报告全文
Bowling Club Co.,
Ltd.
Hong Kong Haowei
1,870,887.18 1,870,887.18 100.00% Uncollectible
Industrial Co. Ltd.
TCL ACE ELECTRIC
APPLIANCE
1,325,431.75 1,325,431.75 100.00% Uncollectible
(HUIZHOU) CO.,
LTD.
Qingdao Haier Parts
1,225,326.15 1,225,326.15 100.00% Uncollectible
Procurement Co., Ltd.
SKYWORTH
Multimedia 579,343.89 579,343.89 100.00% Uncollectible
(Shenzhen) Co., Ltd.
Total 7,556,363.72 7,556,363.72 -- --
Accrual of bad debt provision on single basis: 5,587,643.49 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Huixin
Video Technology Co., 381,168.96 381,168.96 100.00% Uncollectible
Ltd.
Shenzhen Wandelai
Digital Technology 351,813.70 351,813.70 100.00% Uncollectible
Co., Ltd.
Shenzhen Dalong
344,700.00 344,700.00 100.00% Uncollectible
Electronic Co., Ltd.
Shenzhen Keya
332,337.76 332,337.76 100.00% Uncollectible
Electronic Co., Ltd.
Shenzhen Qunping
304,542.95 304,542.95 100.00% Uncollectible
Electronic Co., Ltd.
China Galaxy
Electronics (Hong 288,261.17 288,261.17 100.00% Uncollectible
Kong) Co., Ltd.
Dongguan Weite
274,399.80 274,399.80 100.00% Uncollectible
Electronic Co., Ltd.
Chuangjing 247,811.87 247,811.87 100.00% Uncollectible
Hong Kong New
Century Electronics 207,409.40 207,409.40 100.00% Uncollectible
Co., Ltd.
94
深圳中恒华发股份有限公司 2019 年半年度报告全文
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
133,485.83 133,485.83 100.00% Uncollectible
Electronic Co., Ltd.
Other 2,037,613.75 2,037,613.75 100.00% Uncollectible
Total 5,587,643.49 5,587,643.49 -- --
Accrual of bad debt provision on single basis:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual of bad debt provision on portfolio: 811.28 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Account age 149,541,677.74 811.28
Total 149,541,677.74 811.28 --
Explanation on portfolio basis:
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Within one year(One year included) 149,536,867.00
149,536,867.00
1-2 years 2,527.77
95
深圳中恒华发股份有限公司 2019 年半年度报告全文
Over 3 years 2,282.97
3-4 years 2,282.97
Total 149,541,677.74
(2)Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Category Opening balance Collected or Closing balance
Accrual Written-off
reversal
Including major amount bad debt provision that collected or reversal in the period:
RMB/CNY
Enterprise Amount collected or reversal Collection by
(3)Account receivable actually written-off in the period
RMB/CNY
Item Amount written-off
Including major account receivable written-off :
RMB/CNY
Amount arising
Nature of account Amount Causes of Procedures of
Enterprise from related
receivable written-off written-off written-off
transactions (Y/N)
Explanation on account receivable written-off:
(4)Top 5 account receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 138,920,788.78 Yuan, takes 85.39 percent of the total
account receivable at period-end, bad debt provision accrual correspondingly at year-end amounting as 0 Yuan.
4. Account paid in advance
(1) By account age
RMB/CNY
Closing balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 28,212,818.13 99.28% 31,254,429.54 99.42%
96
深圳中恒华发股份有限公司 2019 年半年度报告全文
1-2 years 135,695.39 0.48% 94,000.00 0.40%
2-3 years 70,086.94 0.25% 0.18%
Total 28,418,600.46 -- 31,348,429.54 --
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
Nil
(2)Top 5 account paid in advance at ending balance by prepayment object
Total period-end balance of top five account paid in advance by prepayment object amounted to 26,129,883.92 Yuan, takes 91.95
percent of the total advance payment at period-end.
Other explanation:
Nil
5. Other account receivable
RMB/CNY
Item Closing balance Opening balance
Other account receivable 5,781,851.15 5,777,179.08
Total 5,781,851.15 5,777,179.08
(1)Other account receivable
1) By nature
RMB/CNY
Nature Closing book balance Opening book balance
Margin and deposit 1,793,485.04 1,793,485.04
Borrow money 2,005,861.48 1,973,013.76
Intercourse funds 11,333,647.83 10,108,494.46
Rent receivable 5,918,159.34 6,317,469.46
Other 0.00 845,586.40
Total 21,051,153.69 21,038,049.12
2)Accrual of bad debt provision
RMB/CNY
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Expected credit
Bad debt provision the entire duration the entire duration (with Total
losses over next 12
(without credit credit impairment
months
impairment occurred) occurred)
97
深圳中恒华发股份有限公司 2019 年半年度报告全文
Balance on Jan. 1,
15,260,870.04 15,260,870.04
2019
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Current accrual 8,432.50 8,432.50
Balance on Jun. 30,
15,269,302.54 15,269,302.54
2019
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Within one year(One year included) 4,786,976.16
4,786,976.16
1-2 years 54,876.99
2-3 years 848,718.00
Over 3 years 91,280.00
3-4 years 91,280.00
Total 5,781,851.15
3) Top 5 other account receivables at ending balance by arrears party
RMB/CNY
Ratio in total
Closing balance of
Enterprise Nature Closing balance Account age ending balance of
bad debt reserve
other receivables
Portman Rent receivable 4,021,734.22 Over 3 years 19.10% 4,021,734.22
Shenzhen Jifang
Investment Co., Rent receivable 1,380,608.00 Over one year 6.56% 1,380,608.00
Ltd
Wuwu Branch of
Shenzhen
Deposit for leasing 740,909.97 Within one year 3.52%
Dachong
Industrial Co., Ltd.
Zhao Baomin Rent receivable 553,901.68 Over 3 years 2.63% 564,646.35
Traffic accident
Intercourse funds 555,785.81 Over 3 years 2.64% 555,785.81
compensation
Total -- 7,252,939.68 -- 34.45% 6,522,774.38
98
深圳中恒华发股份有限公司 2019 年半年度报告全文
6. Inventory
Whether implemented the new revenue standards
□Yes √No
(1)Category
RMB/CNY
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 42,796,975.03 1,539,330.06 41,215,197.14 39,497,353.01 1,695,940.61 37,801,412.40
Inventory
40,987,482.00 1,083,796.82 39,903,685.18 24,483,140.41 1,543,123.71 22,940,016.70
goods
Low priced and
easily worn 313,838.99 0.00 356,286.82 216,771.16 35,563.68 181,207.48
articles
Homemade
semi-finished 5,639,117.53 404,744.91 5,234,372.62 2,175,657.06 124,384.26 2,051,272.80
products
Total 89,737,413.55 3,027,871.79 86,709,541.76 66,372,921.64 3,399,012.26 62,973,909.38
Whether the Company needs to comply with the disclosure requirement of Industry Information Disclosure Guidelines of Shenzhen
Stock Exchange No.4 -Listed Companies Engaged in Seed Planting Business
No
(2)Provision for price fall-down
RMB/CNY
Current increased Current decreased
Opening Closing
Item Reversal or
balance Accrual Other Other balance
write-off
Raw materials 1,695,940.61 156,610.55 1,539,330.06
Inventory
1,543,123.71 459,326.89 1,083,796.82
goods
Low priced and
easily worn 35,563.68 35,563.68
articles
Homemade
semi-finished 124,384.26 280,360.65 404,744.91
products
99
深圳中恒华发股份有限公司 2019 年半年度报告全文
Total 3,399,012.26 280,360.65 0.00 651,501.12 3,027,871.79
Nil
7. Other current assets
Whether implemented the new revenue standards
□Yes √No
RMB/CNY
Item Closing balance Opening balance
Value-added tax to be deducted 1,176,381.08 17,055.88
Advance payment of income tax 42,314.30 42,314.30
Total 1,218,695.38 59,370.18
Other explanation
8. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □Not applicable
RMB/CNY
Construction in
Item House and building Land use right Total
process
I. Original book value
1.Opening balance 133,661,686.94 133,661,686.94
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
II. Accumulated
100
深圳中恒华发股份有限公司 2019 年半年度报告全文
depreciation and
accumulated
amortization
1.Opening balance 82,980,364.08 82,980,364.08
2.Current increased 864,165.14 864,165.14
(1) Accrual or
864,165.14 864,165.14
amortization
3.Current decreased
(1) Disposal
(2) other transfer-out
4.Closing balance 83,844,529.22 83,844,529.22
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 value 49,817,157.72 49,817,157.72
2.Opening book value 50,681,322.86 50,681,322.86
9. Fixed assets
RMB/CNY
Item Closing balance Opening balance
Fixed assets 92,150,629.83 95,226,401.69
Disposal of fixed assets 92,857,471.69 92,857,471.69
Total 185,008,101.52 188,083,873.38
101
深圳中恒华发股份有限公司 2019 年半年度报告全文
(1)Fixed asset
RMB/CNY
House Transportat Tool Office Mold
Item Machinery Instrument Total
building ion equipment equipment equipment
equipment equipment
equipment
I. Original
book value
65,608,798 90,197,960 5,960,519. 6,552,700. 6,325,043. 16,231,125 3,137,707. 194,013,85
1.Opening
.85 .43 70 16 73 .01 65 5.53
balance
1,719,220. 2,844,194.
2.Current 424,216.15 27,792.74 665,886.99 7,077.88
35 11
increased
(1) 1,719,220. 2,844,194.
424,216.15 27,792.74 665,886.99 7,077.88
Purchasing 35 11
(2)Constru
ction in
process
transfer-in
(3)increase
d by
combinatio
n
1,101,038. 1,198,718.
3.Current 85,470.09 12,210.00
34 43
decreased
(1)
1,101,038. 1,198,718.
Disposal or 85,470.09 12,210.00
34 43
scrapping
65,608,798 90,816,142 5,960,519. 6,891,446. 6,352,836. 16,897,012 3,132,575. 195,659,33
4.Closing
.85 .44 70 22 47 .00 53 1.21
balance
II.
Accumulati
102
深圳中恒华发股份有限公司 2019 年半年度报告全文
ve
depreciatio
n
16,797,572 58,664,225 4,178,805. 2,960,180. 4,171,441. 9,535,972. 2,479,255. 98,787,453
1.Opening
.46 .14 31 84 92 63 54 .84
balance
2,302,459. 1,486,528. 5,765,319.
2.Current 962,101.85 368,771.97 438,939.57 148,478.01 58,040.38
41 54 73
increased
2,302,459. 1,486,528. 5,765,319.
962,101.85 368,771.97 438,939.57 148,478.01 58,040.38
(1)Accrual 41 54 73
1,044,072.
3.Current 990,775.51 42,307.68 10,989.00
19
decreased
(1)
1,044,072.
Disposal or 990,775.51 42,307.68 10,989.00
19
scrapping
17,759,674 59,975,909 4,547,577. 3,356,812. 4,319,919. 11,022,501 2,526,306. 103,508,70
4.Closing
.31 .04 28 73 93 .17 92 1.38
balance
III.
Depreciatio
n reserves
1.Opening
balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1)
Disposal or
scrapping
103
深圳中恒华发股份有限公司 2019 年半年度报告全文
4.Closing
balance
IV. Book
value
1.Ending 47,849,124 30,840,233 1,412,942. 3,534,633. 2,032,916. 5,874,510. 92,150,629
606,268.61
book value .54 .40 42 49 54 83 .83
48,811,226 31,533,735 1,781,714. 3,592,519. 2,153,601. 6,695,152. 95,226,401
2.Opening 658,452.11
.39 .29 39 32 81 38 .69
book value
(2)Fixed assets leasing-out by operational lease
RMB/CNY
Item Ending book value
House building 826,662.23
(3)Disposal of fixed assets
RMB/CNY
Item Closing balance Opening balance
Renovation of Gongming Huafa Electric
92,857,471.69 92,857,471.69
Town
Total 92,857,471.69 92,857,471.69
Other explanation
Nil
10. Construction in process
RMB/CNY
Item Closing balance Opening balance
Construction in process 7,552,776.46 5,727,760.23
Total 7,552,776.46 5,727,760.23
(1)Construction in process
RMB/CNY
Item Closing balance Opening balance
104
深圳中恒华发股份有限公司 2019 年半年度报告全文
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Expansion for
the plastic
7,552,776.46 7,552,776.46 5,727,760.23 5,727,760.23
injection 3#
plant
Total 7,552,776.46 7,552,776.46 5,727,760.23 5,727,760.23
(2) change of major construction in process in the period
RMB/CNY
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
Expan
sion
for 3#
5,727, 1,825, 7,552,
injecti
760.23 016.23 776.46
on
moldin
g Plant
5,727, 1,825, 7,552,
Total -- -- --
760.23 016.23 776.46
11. Intangible assets
(1)Intangible assets
RMB/CNY
Non-patented
Item Land use right Patent right Software charges Total
technology
I. Original book
value
1.Opening
55,089,774.36 661,878.97 55,751,653.33
balance
105
深圳中恒华发股份有限公司 2019 年半年度报告全文
2.Current
increased
(1)
3,034,537.44 3,034,537.44
Purchasing
(2) internal
R&D
(3)increased by
combination
3.Current
decreased
(1)
Disposal
4.Closing
55,089,774.36 3,696,416.41 58,786,190.77
balance
II. Accumulated
amortization
1.Opening
13,434,017.64 501,945.95 13,935,963.59
balance
2.Current
722,744.45 149,730.49 872,474.94
increased
(1)Accrual 722,744.45 149,730.49 872,474.94
3.Current
decreased
(1)
Disposal
4.Closing
14,156,762.09 651,676.44 14,808,438.53
balance
III. Depreciation
reserves
1.Opening
balance
2.Current
increased
106
深圳中恒华发股份有限公司 2019 年半年度报告全文
(1)Accrual
3.Current
decreased
(1) Disposal
4.Closing
balance
IV. Book value
1.Ending
40,933,012.27 3,044,739.97 43,977,752.24
book value
2.Opening
41,655,756.72 159,933.02 41,815,689.74
book value
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end
12. Long-term deferred expenditure
RMB/CNY
Amortized in
Item Opening balance Current increased Other decreased Closing balance
Period
Golf membership
fee
Cloud service
542,116.99 116,167.92 425,949.07
charge
Total 542,116.99 116,167.92 425,949.07
Other explanation
Nil
13. Deferred income tax asset/Deferred income tax liability
(1)Deferred income tax assets without offset
RMB/CNY
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences asset differences asset
Provision for assets
28,641,162.99 6,813,753.84 28,641,162.96 6,813,753.84
impairment
Accrual liability 64,411.00 16,102.75 64,411.00 16,102.75
107
深圳中恒华发股份有限公司 2019 年半年度报告全文
Total 28,705,573.99 6,829,856.59 28,705,573.96 6,829,856.59
(2)Amount of deferred income tax asset and deferred income tax liability after trade-off
RMB/CNY
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
6,829,856.59 6,829,856.59
asset
(3)Deferred income tax asset without recognized
RMB/CNY
Item Closing balance Opening balance
Deductible temporary differences 3,163,837.81 3,163,837.81
Deductible loss 1,427,605.96 1,427,605.96
Total 4,591,443.77 4,591,443.77
(4)Deductible losses of deferred income tax asset without recognized will expired in later year
RMB/CNY
Year Closing amount Opening amount Note
2019 51,859.78 51,859.78
2020
2021 182,573.55 182,573.55
2022 848,078.83 848,078.83
2023 345,093.80 345,093.80
Total 1,427,605.96 1,427,605.96 --
Other explanation
14. Other non-current assets
Whether implemented the new revenue standards
□Yes √No
RMB/CNY
Item Closing balance Opening balance
Advance payment for engineering 80,000.00 80,000.00
108
深圳中恒华发股份有限公司 2019 年半年度报告全文
Advance payment for equipment 209,550.00 357,810.00
Advance payment for intangible assets 2,721,154.00
Total 289,550.00 3,158,964.00
Other explanation
15. Short-term loans
(1)Category
RMB/CNY
Item Closing balance Opening balance
Loan in pledge 22,676,280.00 13,500,000.00
Secured portfolio loan 112,000,000.00 148,068,657.88
Total 134,676,280.00 161,568,657.88
Explanation on category of Short-term loans
Nil
16. Note payable
RMB/CNY
Category Closing balance Opening balance
Commercial acceptance bill 13,804,210.29 17,642,356.66
Bank acceptance bill 10,000,000.00
Total 13,804,210.29 27,642,356.66
Totally 0 Yuan due note payable are paid at period-end
17. Account payable
(1)Account payable
RMB/CNY
Item Closing balance Opening balance
Within one year(One year included) 90,992,129.99 48,686,573.85
Over one year 11,043,080.29 12,288,732.58
Total 102,035,210.28 60,975,306.43
(2)Major account payable over one year
RMB/CNY
109
深圳中恒华发股份有限公司 2019 年半年度报告全文
Item Closing balance Reasons for non-payment or carry over
Shenzhen Yuehai Global Logistics Co.,
2,858,885.97 Without settlement
Ltd.
LG 1,906,267.50 Without settlement
Dongjin Electronics (Nanjing) Plasma
617,963.45 Without settlement
Co., Ltd.
Total 5,383,116.92 --
Other explanation:
Nil
18. Account received in advance
Whether implemented the new revenue standards
□Yes √No
(1)Account received in advance
RMB/CNY
Item Closing balance Opening balance
Within one year(One year included) 113,637.43 116,601.60
Over one year 42,595.01 42,927.00
Total 156,232.44 159,528.60
19. Employees remuneration payable
(1)Employees remuneration payable
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
I. Short-term benefits 4,700,208.36 32,286,086.59 32,958,058.24 4,028,236.71
II. Post-employment
benefits-defined 2,247,995.53 2,230,407.95 17,587.58
contribution plans
III. Dismiss welfare 45,365.00 45,365.00
Total 4,700,208.36 34,579,447.12 35,233,831.19 4,045,824.29
(2)Short-term benefits
RMB/CNY
110
深圳中恒华发股份有限公司 2019 年半年度报告全文
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Wages, bonuses,
3,720,025.80 28,492,788.83 29,146,144.28 3,066,670.35
allowances andsubsidies
2. Welfare for workers
754.00 2,489,517.44 2,489,517.44 754.00
and staff
3. Social insurance 22,287.98 1,067,739.83 1,086,356.03 3,671.78
Including:
22,287.98 894,902.90 913,519.10 3,671.78
Medical insurance
Work
91,845.56 91,845.56
injury insurance
Maternity
80,991.37 80,991.37
insurance
4. Housing
24,310.00 150,800.88 150,800.88 24,310.00
accumulation fund
5. Labor union
expenditure and
932,830.58 85,239.61 85,239.61 932,830.58
personnel education
expense
Total 4,700,208.36 32,286,086.59 32,958,058.24 4,028,236.71
(3)Defined contribution plans
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Basic endowment
2,170,497.43 2,152,909.85 17,587.58
insurance
2. Unemployment
77,498.10 77,498.10
insurance
Total 2,247,995.53 2,230,407.95 17,587.58
Other explanation:
Nil
20. Tax payable
RMB/CNY
Item Closing balance Opening balance
VAT 3,119,280.60 3,432,174.00
111
深圳中恒华发股份有限公司 2019 年半年度报告全文
Corporate income tax 5,914,787.16 5,683,136.41
Individual income tax 219,921.41 45,962.89
Urban maintenance and construction tax 50,723.32 547,965.38
Property tax 533,189.74 290,438.28
Land use tax 552,604.04 75,345.69
Educational surtax 229,278.13 235,610.56
Local educational surtax 123,222.03 126,852.76
Dike fee 1,665.00 1,665.00
Stamp tax 33,611.20 24,738.90
Disposal fund of waste electrical
830,950.00 768,930.00
products
Total 11,609,232.63 11,232,819.87
Other explanation:
Nil
21. Other account payable
RMB/CNY
Item Closing balance Opening balance
Interest payable 54,347.32 439,558.70
Other account payable 30,986,015.17 26,339,305.22
Total 31,040,362.49 26,778,863.92
(1)Interest payable
RMB/CNY
Item Closing balance Opening balance
Interest of short-term loans payable 54,347.32 439,558.70
Total 54,347.32 439,558.70
Significant overdue and unpaid interest:
RMB/CNY
Loan unit Overdue amount Reason for overdue
Other explanation:
Nil
(2)Other account payable
1)Other account payable by nature
112
深圳中恒华发股份有限公司 2019 年半年度报告全文
RMB/CNY
Item Closing balance Opening balance
Margin and deposit 17,395,159.40 10,914,478.12
Lease management fee 7,152,279.11 2,612,566.67
Intercourse funds 3,741,736.55 7,531,055.87
After sale and repairmen 1,759,470.00 1,696,994.97
Other 937,370.11 3,584,209.59
Total 30,986,015.17 26,339,305.22
2)Significant other account payable with over one year age
RMB/CNY
Item Closing balance Reasons for non-payment or carry over
Shenzhen SED Property Development
1,244,058.55 Without settlement
Co., Ltd.
Shenzhen Huayongxing Environmental
1,000,000.00 Margin
Protection Technology Co., Ltd.
Linghang Technology (Shenzhen) Co.,
656,345.28 Without settlement
Ltd
Shenzhen Tongxing Electronics Co., Ltd. 578,259.83 Without settlement
Shenzhen Yongdasheng Investment
558,970.00 Margin
Development Co., Ltd.
Total 4,037,633.66 --
Other explanation
Nil
22. Accrual liability
Whether implemented the new revenue standards
□Yes √No
RMB/CNY
Item Closing balance Opening balance Causes
Pending action 64,411.00 64,411.00 Business and labor disputes
Total 64,411.00 64,411.00 --
Other explanations, including important assumptions and estimation about important estimated liabilities:
According to the Enforcement Notice ( (2008) SFFZZ No.522-529) of Shenzhen Intermediate People's Court, Shenzhen Labor
Dispute Arbitration Commission issued SLZC [2007] No. 1069-1077, No. 1079, No. 1081, and No. 1085-1087 arbitration awards for
the labor dispute case of Cai Yaoqiang and other thirteen people, which has taken legal effect. According to the Basic Information
Credit Report of Enterprises, the Company has total unexecuted labor dispute subject of 64,411.00 yuan, and the Company
recognizes it as the estimated liability.
113
深圳中恒华发股份有限公司 2019 年半年度报告全文
23.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:
Up to 30th June 2019, 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 119,289,894 shares.
24. Capital surplus
RMB/CNY
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)
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
25. Surplus reserves
RMB/CNY
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:
114
深圳中恒华发股份有限公司 2019 年半年度报告全文
Nil
26. Retained profit
RMB/CNY
Item Current period Last period
Retained profit at the end of the previous period
-183,172,091.01 -186,467,113.73
before adjustment
Retained profit at period-begin after adjustment -183,172,091.01 -186,467,113.73
Add: net profit attributable to owners of the
2,587,578.75 3,295,022.72
parent company
Retained profit at period-end -180,591,679.88 -183,172,091.01
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 0 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
27. Operating income and cost
RMB/CNY
Current period Last period
Item
Income Cost Income Cost
Main business 310,399,495.33 285,485,316.56 318,222,786.98 295,038,716.84
Other business 28,790,678.72 12,094,891.78 22,762,056.26 7,544,262.60
Total 339,190,174.05 297,580,208.34 340,984,843.24 302,582,979.44
Whether implemented the new revenue standards
□Yes √No
Other explanation
Nil
28. Tax and surcharges
RMB/CNY
Item Current period Last period
Urban maintenance and construction tax 68,304.63 266,947.39
Educational surtax 33,062.14 159,757.95
115
深圳中恒华发股份有限公司 2019 年半年度报告全文
Property tax 706,398.83 232,452.12
Land use tax 278,113.28 663,931.20
Vehicle use tax 3,420.00 4,800.00
Stamp tax 205,372.70 217,911.90
Local education development fee 15,438.42 166,492.83
Total 1,310,110.00 1,712,293.39
Other explanation:
Nil
29. Sales expense
RMB/CNY
Item Current period Last period
Employees remuneration 2,350,311.18 2,301,867.88
Freight 2,883,611.66 2,334,595.10
Commodity inspection fee 46,041.22 335,545.03
Customs fee 85,340.66 84,390.47
Commodity loss 1,669,582.49 1,556,975.69
Other 2,095,493.01 1,819,989.14
Total 9,130,380.22 8,433,363.31
Other explanation:
Nil
30. Administrative expense
RMB/CNY
Item Current period Last period
Salary 4,819,623.00 4,210,697.93
Depreciation charge 1,108,894.27 2,586,727.68
Social insurance premium 1,183,069.73 1,219,441.85
Social expenses 1,975,609.14 1,336,624.80
Taxes and surcharge 0.00 0.00
Employee benefits 453,205.88 900,960.35
Travel expenses 913,668.77 1,086,267.27
Amortization of intangible assets 872,474.94 745,813.31
Traffic expenses 880,726.46 1,047,578.29
116
深圳中恒华发股份有限公司 2019 年半年度报告全文
Consulting fee 365,549.99 565,076.31
Security 478,584.83 710,066.72
Repairs 981,308.38 839,233.34
Audit fee 812,786.23 624,271.85
Office expenses 775,082.77 527,020.48
Communication fee 106,108.39 166,858.35
Amortization of low cost and short lived
76,180.62 488,293.61
articles
Securities information disclosure fee 255,915.74 188,679.24
Litigation fee 0.00 0.00
Staff education 86,051.41 35,034.65
Water and electricity fee 336,221.83 272,971.66
Lease fee 2,444,912.69 2,298,165.79
Eco fee 194,709.07 90,598.66
Premium 45,221.73 164,030.73
Other expenses 451,085.52 296,572.55
Total 19,616,991.39 20,400,985.42
Other explanation:
Nil
31. R& D expenses
RMB/CNY
Item Current period Last period
Personnel cost 2,086,504.20
Direct input cost 846,252.61
Depreciation and amortization expenses 218,337.01
Other related expenses 575,899.04
Total 3,726,992.86
Other explanation:
Nil
32. Financial expense
RMB/CNY
Item Current period Last period
Interest expenditure 5,355,676.92 5,989,883.31
117
深圳中恒华发股份有限公司 2019 年半年度报告全文
Less: interest income 419,336.28 349,858.59
Add: Exchange loss -87,878.70 -297,171.10
Add: Other expense 219,909.30 104,216.60
Total 5,068,371.24 5,447,070.22
Other explanation:
Nil
33. Investment income
RMB/CNY
Item Current period Last period
Investment income generated by financial
74,936.14 245,679.10
products
Total 74,936.14 245,679.10
Other explanation:
Nil
34. Credit impairment loss
RMB/CNY
Item Current period Last period
Bad debt loss of other account receivable -8,432.50
Total -8,432.50
Other explanation:
Nil
35. Assets impairment loss
Whether implemented the new revenue standards
□Yes √No
RMB/CNY
Item Current period Last period
I. Bad debt losses -5,941.50
Total -5,941.50
Other explanation:
Nil
118
深圳中恒华发股份有限公司 2019 年半年度报告全文
36. Asset disposal income
RMB/CNY
Source of asset disposal income Current period Last period
Income from fixed assets sold 129,039.57 -105,779.36
37. Non-operating income
RMB/CNY
Amount included in current
Item Current period Last period
non-recurring profits or losses
Government subsidy 223,300.00 771,800.00
Fine income 9,458.00 115,862.07
Total 232,758.00 887,662.07
Government subsidy reckoned into current gains/losses:
RMB/CNY
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
obtained
for
Finance
conforms
bureau of
Award for with the
economic
excellent local Income-rel
developme Award N N 200,000.00
enterprise support ated
nt district
for 2018 policy for
of Wuhan
investment
Caidian
incentive to
encourage
investment
Subsidy
2018 Zero-balan obtained
provincial ce special for
foreign account of conforms Income-rel
Award N N 17,300.00
economic the Finance with the ated
and trade bureau of local
funds Wuhan support
policy for
119
深圳中恒华发股份有限公司 2019 年半年度报告全文
investment
incentive to
encourage
investment
Subsidy
obtained
for
Labor and conforms
Job-huntin
employme with the
g and
nt bureau local Income-rel
entreprene Subsidy N N 6,000.00
of Caidian support ated
urship
District, policy for
subsidy
Wuhan investment
incentive to
encourage
investment
Subsidy
Bureau of obtained
Science, for
Subsidy for Technolog conforms
science & y and with the
technology Economic local Income-rel
Subsidy N N 300,000.00
innovation Informatio support ated
platform in n of policy for
2017 Caidian investment
District, incentive to
Wuhan encourage
investment
Subsidy
obtained
for
conforms
Guiding
Caidian with the
funds for
Bureau of local Income-rel
business Award N N 150,000.00
Finance, support ated
developme
Wuhan policy for
nt
investment
incentive to
encourage
investment
Subsidy for Wuhan Subsidy
Income-rel
cultivating Science Subsidy obtained N N 50,000.00
ated
enterprise and for
120
深圳中恒华发股份有限公司 2019 年半年度报告全文
Technolog conforms
y Bureau with the
(Wuhan local
Intellectual support
Property policy for
Office) investment
incentive to
encourage
investment
Subsidy
obtained
for
2018 conforms
Treasury
municipal with the
branch of
foreign local Income-rel
Wuhan Award N N 271,800.00
economic support ated
Finance
and trade policy for
bureau
funds investment
incentive to
encourage
investment
Other explanation:
Nil
38. Non-operating expenditure
RMB/CNY
Amount included in current
Item Current period Last period
non-recurring profits or losses
Penalty expenditure 1,100.00 40,000.00 1,100.00
Other 132,806.76
Total 1,100.00 172,806.76 1,100.00
Other explanation:
Nil
39. Income tax expenses
(1)Statement of income tax expense
RMB/CNY
Item Current period Last period
121
深圳中恒华发股份有限公司 2019 年半年度报告全文
Current income tax expense 388,847.80 908,807.04
Deferred income tax expense 215,062.28 -444,975.63
Total 603,910.08 463,831.41
(2)Adjustment on accounting profit and income tax expenses
RMB/CNY
Item Current period
Total profit 3,184,321.21
Income tax based on statutory/applicable rate 796,080.30
Impact by different tax rate applied by subsidies -193,287.88
Impact of the deductible temporary differences or deductible
loss of deferred income tax asset without recognized in the 274.41
period
Income tax expense 603,910.08
Other explanation
40. Annotation of cash flow statement
(1)Cash received with other operating activities concerned
RMB/CNY
Item Current period Last period
Unit intercourse account 1,869,387.03 1,042,828.59
Collection management fee and utilities
1,189,095.86 601,727.14
etc.
Repayment from employees 32,462.10 22,608.36
Margin 40,263.30 500,000.00
Interest income 48,764.26 71,314.28
Government subsidy 223,300.00 771,800.00
Total 3,403,272.55 3,010,278.37
Note of cash received with other operating activities concerned:
The cash received with other operating activities concerned in the period mainly including collection management fee and utilities,
government subsidy, margin and other intercourse funds
(2)Cash paid with other operating activities concerned
RMB/CNY
122
深圳中恒华发股份有限公司 2019 年半年度报告全文
Item Current period Last period
Unit intercourse account 1,315,156.92 1,840,448.01
Advances to employees 2,563,755.64 1,046,817.78
Litigation fee 249,530.00
Deposit, margin 1,656,408.00 831,867.00
Social expenses 1,299,864.19 1,166,779.68
Water and electricity 2,365,472.40 2,270,904.17
Travel expenses 638,939.25 849,867.40
Freight 2,983,611.66 2,336,595.10
Traffic expenses 521,848.44 620,026.07
Repairs 1,067,602.12 965,726.34
Audit and consulting fees 792,049.00 1,037,410.89
Security 620,945.00 218,400.00
Financial institutions handling fee 62,759.86 103,694.09
Office expenses 508,512.98 408,916.56
Communication fee 154,173.54 195,355.57
Lease fee 2,444,912.69 2,418,018.66
Other 1,614,513.51 1,107,946.89
Total 20,610,525.20 17,668,304.21
Note of cash paid with other operating activities concerned:
(3)Cash received with other investment activities concerned
RMB/CNY
Item Current period Last period
Redemption of principal of financial
49,000,000.00 80,000,000.00
products
Total 49,000,000.00 80,000,000.00
Note of cash received with other investment activities concerned
Nil
(4)Cash paid related with investment activities
RMB/CNY
Item Current period Last period
Purchasing financial products 49,000,000.00 80,000,000.00
123
深圳中恒华发股份有限公司 2019 年半年度报告全文
Total 49,000,000.00 80,000,000.00
Note of cash paid related with investment activities
Nil
41.Supplementary information to statement of cash flow
(1)Supplementary information to statement of cash flow
RMB/CNY
Supplementary information Current period Last period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 2,580,411.13 2,793,133.60
Add: Provision for assets impairment 6,025,283.55 7,322,855.85
Amortization of intangible assets 872,474.94 709,576.88
Amortization of long-term deferred
116,167.92 63,722.66
expenditure
Loss from disposal of fixed assets,
intangible assets and other long-term -129,039.57 333,454.38
assets(gain is listed with “-”)
Financial expenses (gain is listed with “-”) 5,262,857.89 5,536,037.89
Investment loss (income is listed with “-”) -74,936.14 -245,679.10
Decrease of deferred income tax assets
1,218.57
(increase is listed with “-”)
Decrease of inventory (increase is listed
-23,735,632.38 4,786,891.71
with “-”)
Decrease of operating receivable accounts
-17,697,245.84 -15,034,088.55
(increase is listed with “-”)
Increase of operating payable accounts
71,973,879.06 -32,938,449.52
(decrease is listed with “-”)
Net cash flow arising from operating
45,194,220.56 -26,671,325.63
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 38,041,641.85 23,838,986.21
Less: Balance of cash at period-begin 29,171,804.99 66,240,945.59
Add: Balance of cash equivalent at 3,256,408.54
124
深圳中恒华发股份有限公司 2019 年半年度报告全文
period-end
Less: Balance of cash equivalent at
15,234,028.71
period-begin
Net increased amount of cash and cash
8,869,836.86 -54,379,579.55
equivalent
(2)Constitution of cash and cash equivalent
RMB/CNY
Item Closing balance Opening balance
Ⅰ. Cash 38,041,641.85 29,171,804.99
Including:Cash on hand 426,742.83 236,354.29
Bank deposit available for payment
37,614,899.02 28,935,450.70
at any time
Ⅲ. Balance of cash and cash equivalent at
36,831,046.46 27,961,209.60
period-end
Other explanation:
Ending Monetary fund-other monetary fund refers to the margin of bank acceptance 9,939,899.76 Yuan, which is
not belonging to the cash and cash equivalent. Ending Monetary fund-Bank deposit has 1,210,595.39 Yuan frozen
by the court, which is not belonging to the cash and cash equivalent either.
42. Assets with ownership or use right restricted
RMB/CNY
Item Ending book value Restriction reasons
Monetary fund 11,150,495.15 Issuing the bank acceptance
Note receivable 3,866,647.92 Pledged
Inventory 14,609,128.53 Pledged
Fixed assets 37,728,701.12 Bank loan secured
Intangible assets 42,487,962.49 Bank loan secured
Disposal of fixed assets 92,857,471.69 Court closure
Intangible assets 36,306,830.17 Bank loan secured
Total 239,007,237.07 --
Other explanation:
Nil
125
深圳中恒华发股份有限公司 2019 年半年度报告全文
43. Item of foreign currency
(1) Item of foreign currency
RMB/CNY
Closing balance of foreign Closing RMB balance
Item Rate of conversion
currency converted
Monetary fund -- --
Including:USD 1,361,685.55 6.87 9,356,958.43
Euro
HKD 32.66 0.88 28.62
Account receivable -- --
Including:USD 5,942,756.38 6.87 40,836,244.74
Euro
HKD
Long-term loans -- --
Including:USD
Euro
HKD
Account paid in advance
Including:USD 2,249,052.99 6.87 15,454,592.53
Short-term loans
Including:USD 3,300,000.00 6.87 22,676,280.00
Other explanation:
Nil
44. Government subsidy
(1)Government subsidy
RMB/CNY
Amount reckoned into current
Category Amount Item
gains/losses
Award for excellent
200,000.00 Non-operating income 200,000.00
enterprise for 2018
126
深圳中恒华发股份有限公司 2019 年半年度报告全文
2018 provincial foreign
17,300.00 Non-operating income 17,300.00
economic and trade funds
Job-hunting and
6,000.00 Non-operating income 6,000.00
entrepreneurship subsidy
(2)Refund of government subsidy
□ Applicable √Not applicable
Other explanation:
Nil
VIII. Equity in other subjects
1. Equity in subsidiary
(1)Constitute of enterprise group
Main operation Registered Share-holding ratio
Subsidiary Business nature Acquired way
place place Directly Indirectly
HUAFA Lease Property Investment
Shenzhen Shenzhen 60.00%
Company management establishment
HUAFA
Property Investment
Property Shenzhen Shenzhen 100.00%
management establishment
Company
Hengfa
Production Investment
Technology Wuhan Wuhan 100.00%
sales establishment
Company
HUAFA
Property Investment
Hengtian Shenzhen Shenzhen 100.00%
management establishment
Company
HUAFA
Property Investment
Hengtai Shenzhen Shenzhen 100.00%
management establishment
Company
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
Major structured entity included in consolidate statement:
Nil
Basis of termination of agent or consignor:
127
深圳中恒华发股份有限公司 2019 年半年度报告全文
Nil
Other explanation:
Nil
IX. The risk associated with financial instruments
The Group's main financial instruments include loans, receivables, payable, tradable financial assets, trading and
financial liabilities, etc. The risks associated with these financial instruments and the risk management policies
adopted by the Group to reduce these risks are described below. The management of the Group manages and
monitors these risk exposures to ensure that the above risks are controlled within the limits.
The objective of the Group's risk management is to strike a proper balance between risks and profits, minimize the
negative impact of risks on the Group's operating results, and maximize the benefits of shareholders and other
equity investors. Based on this risk management objectives, the Group's basic strategy for risk management is to
identify and analyze the risks faced by the Group, establish appropriate risk bottom lines and carry out risk
management, and timely and reliably monitor the risks control them within the limits.
(1) Market risk
The market risk of financial instruments refers to the risk that the fair value or the future cash flows of financial
instruments fluctuate due to the changes in market prices, including foreign exchange risk, interest rate risk and
other price risk.
1)FX risk
The Group's exchange rate risk is mainly related to US dollars and Hong Kong dollars. Except the Group's second
level subsidiary, Hengfa Technology Company’s monitor business has day-to-day operations in US dollars; other
principal business activities of the Group settle accounts in RMB. On 30 June 2019, except for the US dollar
balance of assets and liabilities in below table and the sporadic Hong Kong dollar balance, the Group's assets and
liabilities are all RMB balance. The exchange rate risk arising from the assets and liabilities of the US dollar,
Hong Kong dollar balance may have an impact on the Group's operating results.
Item 2019-6-30(RMB conversion) 2018-12-31(RMB conversion)
Monetary fund -USD 9,356,958.43 2,010,146.81
Monetary fund -HKD 28.61 28.62
Account receivable -USD 40,836,244.74 44,086,655.90
Account paid in advance-USD 15,454,592.53 19,035,307.91
Account payable -USD 0.00
Short-term loans-USD 22,676,280.00 25,068,657.88
The Company eyes on the influence from variation of exchange
2) Interest rate risk
The interest rate risk of the Group arises from bank loans. The financial liabilities of floating interest rate make
128
深圳中恒华发股份有限公司 2019 年半年度报告全文
the Group face cash flow interest rate risk, and the financial liabilities of fixed rate make the Group face the
interest rate risk of fair value. The Group determines the relative proportion of fixed rate and floating interest rate
contracts based on the prevailing market environment. On 30 June 2019, the Group's interest-bearing debt was
mainly the floating interest rate loan contract denominated in Renminbi and US dollars, amounting to RMB
124,676,280 (December 31, 2018: RMB 161,568,657.88).
The Group's risk of changes in the cash flow of financial instruments due to changes in interest rates is mainly
related to the floating interest rate bank loans. The Group's policy is to maintain the floating interest rate of these
loans so as to eliminate the fair value risk of the interest rate changes.
3) Price risk
The Group sells monitors and so on at market prices and is therefore affected by such price fluctuations.
(2) Credit risk
Credit risk refers to the risk that a party of the financial instrument does not fulfill its obligations and causes
property loss to another party. On December 31, 2017, the maximum credit risk exposure that may cause financial
losses to the Group is mainly attributable to the failure of the other party to fulfill its obligations resulting in the
losses of the Group's financial assets and the Group's financial guarantees, including:
The carrying amount of the financial assets recognized in the consolidated balance sheet; for the financial
instruments measured at fair value, the book value reflects its risk exposures but not the maximum risk exposure,
and its maximum risk exposure changes with the future changes in fair value.
In order to reduce the credit risk, the Group has set up a special department to determine the credit line, carry out
the credit approval, and implement other monitoring procedures to take necessary measures to recover the overdue
credit. In addition, the Group reviews the recovery of each individual receivable at every balance sheet date to
accrue sufficient provision for bad debts of uncollectible funds. As a result, the Group's management believes that
the Group's credit risk has been greatly reduced.
The Group's working capital is deposited in banks with higher credit ratings, so the credit risk of working capital
is low.
The Group has adopted necessary policies to ensure that all customers have good credit records. In addition to the
top five account receivables, the Group has no other significant credit risk.
The total amount of the top five account receivables is RMB 138,920,788.78.
(3) Liquidity risk
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深圳中恒华发股份有限公司 2019 年半年度报告全文
The liquidity risk is the risk that the Group is unable to fulfill its financial obligations on the due date. The Group's
approach to manage liquidity risk is to ensure that there is sufficient financial liquidity to fulfill its due debts but
not cause unacceptable losses or damages to the corporate reputation. The Group regularly analyzes the structure
and duration of liabilities to ensure there are sufficient funds. The management of the Group monitors the use of
bank loans and ensures the compliance with loan agreement, and conducts financing consultations with financial
institutions in order to maintain a certain line of credit and reduce the liquidity risk.
2. Sensitivity analysis
The Group uses the sensitivity analysis technique to analyze the possible impacts of the reasonable and possible
changes in risk variable on the currents profit and losses or the owner's equity. Since any risk variable rarely
changes in isolation, and the correlation among the variables has a significant effect on the final effect amount of a
certain risk variable changes, and the following contents are on the assumption that the change in each variable is
independent.
(1) Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all overseas operating net investment hedges and cash
flow hedges are highly effective.
On the basis of the above assumptions, in case that other variable don’t change, the after-tax effect of the possible
and reasonable changes in the exchange rate on the current profits and losses are as follows
Item Exchange rate Jan.-Jun. 2019 Jan.-Jun. 2018
fluctuation Impact on net profit Impact on owner's Impact on net profit Impact on owner's
equity equity
All foreign 5% appreciation of 1,031,885.69 1,031,885.69 -284,157.38 -284,157.38
currency the RMB
All foreign 5% devaluation of -1,031,885.69 -1,031,885.69 284,157.38 284,157.38
currency the RMB
130
深圳中恒华发股份有限公司 2019 年半年度报告全文
X. Related party and related transactions
1. Parent company of the enterprise
Share-holding
ratio on the Voting right ratio
Parent company Registration place Business nature Registered capital
enterprise for on the enterprise
parent company
Production and
Wuhan Zhongheng
sales, real estate
New Science &
development and
Technology Wuhan 138,000,000.00 42.13% 42.13%
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.
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 Photo-electricity 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
131
深圳中恒华发股份有限公司 2019 年半年度报告全文
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
Control by same controlling shareholder and ultimate
Wuhan Xiahua Zhongheng Electronics Co. Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Zhongheng Yutian Trading 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
RMB/CNY
Whether over the
Trading limit
Related party Content Current Period approved limited or Last period
approved
not (Y/N)
Hong Kong
Yutian Purchasing
55,314,886.74 167,780,900.00 N 57,922,243.81
International goods
Investment Co.,
132
深圳中恒华发股份有限公司 2019 年半年度报告全文
Ltd.
Wuhan
Hengsheng Purchasing
57,732,114.71 205,446,000.00 N 44,866,194.55
Photo-electricity goods
Industry Co., Ltd.
Goods sold/labor service providing
RMB/CNY
Related party Content Current period Last period
Hong Kong Yutian
International Investment Co., Sales of goods 64,136,216.85 63,231,882.88
Ltd.
Wuhan Hengsheng
Photo-electricity Industry Sales of goods 12,184,138.45 2,772,074.10
Co., Ltd.
Explanation on goods purchasing, labor service providing and receiving
Nil
(2)Related guarantee
As the guarantor
RMB/CNY
Completed or not
Secured party Amount guarantee Start End
(Y/N)
Hengfa Technology
30,000,000.00 2018-04-20 2022-04-20 N
Company
As the secured party
RMB/CNY
Completed or not
Guarantor Amount guarantee Start End
(Y/N)
Explanation on related guarantee
Nil
(3)Remuneration of key manager
RMB/CNY
Item Current period Last period
Total remuneration 781,248.00 784,673.68
133
深圳中恒华发股份有限公司 2019 年半年度报告全文
5. Receivable/payable items of related parties
(1) Receivable item
RMB/CNY
Closing balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Hong Kong Yutian
Account International
37,716,619.04 34,850,150.19
receivable Investment Co.,
Ltd.
Hong Kong Yutian
Account paid in International
15,495,075.48 20,591,047.90
advance Investment Co.,
Ltd.
(2)Payable item
RMB/CNY
Item Related party Closing book balance Opening book balance
Wuhan Hengsheng
Account payable Photo-electricity Industry 1,933,617.32 871,821.45
Co., 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.
XI. 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 operating lease Minimum leasing payment
contract
134
深圳中恒华发股份有限公司 2019 年半年度报告全文
First year after balance sheet date 3,847,599.84
Second year after balance sheet date 502,325.53
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. The case is
pending, and on 4 April 2019, the Company received a notice from the Shenzhen International Arbitration Court
extending the award to 5 May 2019.
2. Other pending lawsuit
Amount
Accrual
involved in Enforceme
Basic information of liability Outcome and Disclosur
the case (10 Progress nt of Index for disclosure
litigation (arbitration) resulted impact e date
thousand judgments
(Y/N)
Yuan)
In September 2016, Judgement on 16 Found more in the Executing 2018-02- http://www.cninfo.com.cn/cni
the dispute was August 2017, Notice of the 09 nfo-new/disclosure/szse_main
submitted for arbitration the Company Company /bulletin_detail/true/12044066
on “Cooperative and its 06?announceTime=2018-02-0
Operation Contract of 46,460 N controlling 9 ；
Renovation Project at shareholders are http://www.cninfo.com.cn/ne
Huafa Industrial Park, applied for w/disclosure/detail?plate=szse
Gongming Street, withdrawal the &stockCode=000020&annou
Guangming New judgement, but it ncementId=1205326846&ann
135
深圳中恒华发股份有限公司 2019 年半年度报告全文
District” entered into was rejected by ouncementTime=2018-08-25
between Wuhan the Court.
Zhongheng, the
Company and Shenzhen
Vanke
In March 2016, the Now the second Case closed Case 2019-05- http://www.cninfo.com.cn/cni
Company and Huafa instance closed 07 nfo-new/disclosure/szse_main
Technology bring an judgment has /bulletin_detail/true/12027024
action against the been made, and 23?announceTime=2016-09-1
flowed enterprise as has applied for 4 07:41
Shenzhen Huayongxing compulsory
Eco Technology Co., execution.
Ltd, Shenzhen
Guanyong Line Board
Co., Ltd, Shenzhen
Mingyi Electric Co.,
1,964.92 N
Ltd, Shenzhen ORL
Technology Co., Ltd.
and Shenzhen
Kangzhengxin
Technology Co., Ltd
for delays payment of
rent, refuse to move out
the site, forcibly occupy
the Company’s
distribution room and
other power supply unit
In March 2016, the On 15 March Executing Executing 2016-09- http://www.cninfo.com.cn/cni
nd
Company and Huafa 2018, the 2 14 nfo-new/disclosure/szse_main
Property bring a suit trial decides was /bulletin_detail/true/12027024
against Shenzhen won and has 23?announceTime=2016-09-1
Huayongxing Eco applied for 4 07:41
Technology Co., Ltd 947.26 N compulsory
and Shenzhen YDX execution
Technology Co., Ltd for
violation of the Contract
and refuse to clear up
and remove the place
Arbitration case of legal 1,940.2 N The arbitration Waiting for Waiting 2018-11-1 http://www.cninfo.com.cn/ne
service contract dispute has been held adjudicate for 4 w/disclosure/detail?plate=szse
with V&T (Shenzhen) and waiting for adjudicate &stockCode=000020&annou
Law Firm and the adjudication ncementId=1205602053&ann
Company and Wuhan ouncementTime=2018-11-14
136
深圳中恒华发股份有限公司 2019 年半年度报告全文
Zhongheng Group
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XII. Events after balance sheet date
1. important non-adjustment items
RMB/CNY
Impact on financial status and Reasons for the inability to
Item Content
operating results estimate the impact
2. Profit distribution
RMB/CNY
3. Sales return
Nil
4. Explanation on other events after balance sheet date
Nil
XIII. Other important event
1. Earlier accounting errors collection
(1)Retrospective restatement
RMB/CNY
Items for each comparison
Correction content Treatment procedures Cumulative impact
period affected
(2)Prospective application
Reasons for prospective application
Correction content Approval procedures
adoption
137
深圳中恒华发股份有限公司 2019 年半年度报告全文
2. Debt restructuring
3. Assets exchange
(1)Non-monetary assets exchange
(2)Other assets exchange
4. Pension plan
5. Discontinuing operation
RMB/CNY
Profit of
discontinuing
operation
Income tax
Item Income Expenses Total profit Net profit attributable to
expenses
owners of
parent
company
Other explanation
6. Segment
(1)Recognition basis and accounting policy for reportable segment
(2)Financial information for reportable segment
RMB/CNY
Item Offset of segment Total
138
深圳中恒华发股份有限公司 2019 年半年度报告全文
(3) If there are no segment in the Company, or the total assets and liabilities of the segment are un-able to
disclosed, explain the reasons
(4)Other explanation
7. Major transaction and events makes influence on investor’s decision
8. Other
XIV. Principle notes of financial statements of parent company
1. Account receivable
(1)Category of account receivable
RMB/CNY
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Amoun Accrua value Amoun Amoun Accrual value
Ratio Ratio
t t l ratio t t ratio
Account receivable
with bad debt 10,293, 100.00 10,293, 100.00 10,293, 100.00 10,293, 100.00
0.00 0.00
provision accrual 424.29 % 424.29 % 424.29 % 424.29 %
on a single basis
Including:
Including:
10,293, 10,293, 10,293, 10,293,
Total
424.29 424.29 424.29 424.29
Accrual of bad debt provision on single basis: 10,293,424.29 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Huafa
Proerty Leasing 4,558,859.15 4,558,859.15 100.00% Uncollectible
Company
Portman 4,021,734.22 4,021,734.22 100.00% Uncollectible
Shenzhen Jifang
1,380,608.00 1,380,608.00 100.00% Uncollectible
Investment Co., Ltd
Traffic accident 555,785.81 555,785.81 100.00% Uncollectible
139
深圳中恒华发股份有限公司 2019 年半年度报告全文
compensation
Zhao Baomin 553,901.68 553,901.68 100.00% Uncollectible
Hebei Botou Court 520,021.00 520,021.00 101.00% Uncollectible
Electricity charge of
the canteen in 489,214.70 489,214.70 100.00% Uncollectible
Gongming
Jiantao (Fogang)
Laminated Board Co., 465,528.10 465,528.10 100.00% Uncollectible
Ltd.
Labor union 72,402.55 72,402.55 100.00% Uncollectible
Lu Wei 290,000.00 290,000.00 100.00% Uncollectible
Dai Qiangbo 4/F hotel 354,569.00 354,569.00 100.00% Uncollectible
Chuangjing 192,794.00 192,794.00 100.00% Uncollectible
Shenzhen Mingli Co.,
170,394.84 170,394.84 100.00% Uncollectible
ltd
Other enterprise 5,440,838.45 5,440,838.45 100.00% Uncollectible
Total 10,293,424.29 10,293,424.29 -- --
Accrual of bad debt provision on single basis:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
Nil
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
140
深圳中恒华发股份有限公司 2019 年半年度报告全文
RMB/CNY
Account age Closing balance
Total 0.00
(2)Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Category Opening balance Collected or Closing balance
Accrual Written-off
reversal
Including major amount bad debt provision that collected or reversal in the period:
RMB/CNY
Enterprise Amount collected or reversal Collection by
(3)Account receivable actually written-off in the period
RMB/CNY
Item Amount written-off
Including major account receivable written-off :
RMB/CNY
Amount arising
Nature of account Amount Causes of Procedures of
Enterprise from related
receivable written-off written-off written-off
transactions (Y/N)
Explanation on account receivable written-off:
(4)Top 5 account receivables at ending balance by arrears party
(5)Assets and liabilities resulted by account receivable transfer and continues involvement
Other explanation:
2. Other account receivable
RMB/CNY
Item Closing balance Opening balance
Other account receivable 111,782,724.70 99,155,253.08
Total 111,782,724.70 99,155,253.08
141
深圳中恒华发股份有限公司 2019 年半年度报告全文
(1)Interest receivable
1)Category of interest receivable
RMB/CNY
Item Closing balance Opening balance
2)Significant overdue interest
Whether impairment
Borrower Closing balance Overdue time Overdue reason occurs and judgment
basis
Other explanation:
3)Accrual of bad debt provision
□ Applicable √Not applicable
(2)Dividend receivable
1)Category of dividend receivable
RMB/CNY
Item (or invested enterprise) Closing balance Opening balance
2)Important dividend receivable with account age over one year
RMB/CNY
Whether impairment
Item (or invested Reasons for
Closing balance Account age occurs and judgment
enterprise) un-collection
basis
3)Accrual of bad debt provision
□ Applicable √Not applicable
Other explanation:
(3)Other account receivable
1)Other account receivable by nature
RMB/CNY
Nature Closing book balance Opening book balance
Margin deposit 720,065.04 720,065.04
Borrow money 1,475,463.06 2,013,402.14
Intercourse funds 119,568,896.93 110,451,250.82
Rental income 9,088,088.00 5,857,777.46
Total 130,852,513.03 119,042,495.46
2)Accrual of bad debt provision
RMB/CNY
142
深圳中恒华发股份有限公司 2019 年半年度报告全文
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Expected credit
Bad debt provision the entire duration the entire duration (with Total
losses over next 12
(without credit credit impairment
months
impairment occurred) occurred)
Balance on Jan. 1,
19,069,788.33 19,069,788.33
2019
Balance of Jan. 1, 2019
—— —— —— ——
in the period
Balance on Jun. 30,
19,069,788.33 19,069,788.33
2019
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Within one year(One year included) 111,723,124.99
111,723,124.99
1-2 years 59,599.71
Total 111,782,724.70
3)Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Category Opening balance Closing balance
Accrual Collected or reversal
Nil
Including important bad debt provision that collected or reversal in the period:
RMB/CNY
Enterprise Amount collected or reversal Collection by
4)Other account receivable actually written-off in the period
RMB/CNY
Item Amount written-off
Including important other account receivable written-off in the period:
RMB/CNY
Nature of other Amount arising
Amount Causes of Procedures of
Enterprise account from related
written-off written-off written-off
receivable transactions (Y/N)
Explanation on other account receivable written-off:
143
深圳中恒华发股份有限公司 2019 年半年度报告全文
5) Top 5 other account receivables at ending balance by arrears party
RMB/CNY
Ratio in total
Closing balance of
Enterprise Nature Closing balance Account age ending balance of
bad debt reserve
other receivables
Hengfa Technology
Intercourse funds 91,887,895.78 Within one year 70.22%
Company
Zhongheng Huafa
Intercourse funds 20,186,113.28 Within 2 years 15.43%
Property
HUAFA Lease
Intercourse funds 4,558,859.15 Over 3 years 3.48% 4,558,859.15
Company
Lease fee
Portman 4,021,734.22 Over 3 years 3.07% 4,021,734.22
receivable etc
Shenzhen Jifang Lease fee
1,380,608.00 Within one year 1.06%
Investment Co., Ltd receivable etc
Total -- 122,035,210.43 -- 93.26% 8,580,593.37
3. Long-term equity investment
RMB/CNY
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
(1)Investment for subsidiary
RMB/CNY
Changes in the period Closing
Opening Closing
The invested Accrual of balance of
balance Additional Negative balance
entity impairment Other impairment
(Book value) investment investment (Book value)
provision provision
HUAFA
Lease 0.00 0.00 600,000.00
Company
HUAFA
1,000,000.00 1,000,000.00
Property
144
深圳中恒华发股份有限公司 2019 年半年度报告全文
Company
Hengfa
183,608,900. 183,608,900.
Technology
00 00
Company
Huafa Trading
0.00
Company
HUAFA
Hengtian 1,000,000.00 1,000,000.00
Company
HUAFA
Hengtai 1,000,000.00 1,000,000.00
Company
186,608,900. 186,608,900.
Total 600,000.00
00 00
4. Operating income and cost
RMB/CNY
Current period Last period
Item
Income Cost Income Cost
Other business 18,041,135.31 3,172,031.59 16,961,088.74 2,510,518.82
Total 18,041,135.31 3,172,031.59 16,961,088.74 2,510,518.82
Whether implemented the new revenue standards
□Yes √No
Other explanation:
Nil
XV. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
RMB/CNY
Item Amount Note
Gains/losses from the disposal of
129,039.57
non-current asset
Governmental subsidy reckoned into
current gains/losses (not including the
223,300.00
subsidy enjoyed in quota or ration
according to national standards, which are
145
深圳中恒华发股份有限公司 2019 年半年度报告全文
closely relevant to enterprise’s business)
Gain/loss of entrusted investment or assets
74,936.14
management
Other non-operating income and
expenditure except for the aforementioned 9,458.00
items
Less: Impact on income tax 54,234.64
Total 382,499.07 --
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. ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic earnings per Diluted earnings per
share(RMB/Share) share(RMB/Share)
Net profits belong to common
stock stockholders of the 0.79% 0.0091 0.0091
Company
Net profits belong to common
stock stockholders of the
0.68% 0.0078 0.0078
Company after deducting
nonrecurring gains and losses
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深圳中恒华发股份有限公司 2019 年半年度报告全文
Section XI. Documents available for reference
I. Text of the 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.
147
