Summary of Semi-Annual Report 2019
Stock Code: 000020 200020 Public Notice No.: 2019-21
Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA- B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Semi-Annual Report 2019
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of semi-annual report that published on media appointed
by CSRC.
Objection statement of directors, supervisors and senior executives
Name Position Content and reason
Statement
Other directors attending the Meeting for semi-annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Gao Jianbai director personal reason Li Zhongqiu
Xu Jinwen independent director personal reason Zhang Zhaoguo
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Basic information of the company
1. Company profile
Shen Huafa A,
Short form of the stock Stock code 000020, 200020
Shen Huafa B
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
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Summary of Semi-Annual Report 2019
Name Yang Bin Niu Zhuo
33/F, No. 2 Building of Dachong Business 33/F, No. 2 Building of Dachong Business
Office add.
Center, Nanshan District, Shenzhen Center, Nanshan District, Shenzhen
Tel. 0755-86360201 0755-86360201
E-mail hwafainvestor@126.com.cn hwafainvestor@126.com.cn
2. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period Same period last year Changes over 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 of
Period-end Period-end of last year
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)
3. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference shareholders
Total common stock shareholders in with voting rights recovered at
23,417 0
reporting period-end end of reporting period (if
applicable)
Shares held by top ten shareholders
Number of share
Full name of Nature of Proportion of Number of
Amount of restricted shares held pledged/frozen
Shareholders shareholder shares held shares held
State of share Amount
Wuhan Domestic Pledged 116,100,000
Zhongheng non-state-owne 42.13% 119,289,894 0
Frozen 119,289,894
Group d legal person
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Summary of Semi-Annual Report 2019
SEG (HONG Pledged 0
Overseas legal
KONG) CO., 5.85% 16,569,560 0
person Frozen 0
LTD.
GOOD HOPE Pledged 0
CORNER Overseas legal
4.49% 12,700,000 0
INVESTMENT person Frozen 0
S LTD
Changjiang Pledged 0
Securities
Overseas legal
Brokerage 1.89% 5,355,249 0
person Frozen 0
(Hong Kong)
Co., Ltd.
Guoyuan Pledged 0
Securities
Overseas legal
Brokerage 1.36% 3,845,117 0
person Frozen 0
(Hong Kong)
Co., Ltd.
Overseas nature Pledged 0
Li Zhongqiu 1.00% 2,830,000 0
person Frozen 0
Domestic Pledged 0
Zhong Jiachao 0.45% 1,277,494 0
nature person Frozen 0
Domestic Pledged 0
Li Senzhuang 0.35% 986,550 0
nature person Frozen 0
LI SHERYN Overseas nature Pledged 0
0.35% 980,100 0
ZHAN MING person Frozen 0
Domestic Pledged 0
Han Yaming 0.30% 864,200 0
nature person Frozen 0
Among the top ten shareholders, Wuhan Zhongheng Group neither bears associated relationship
with other shareholders, nor belongs to the consistent actor that are prescribed in Measures for
Explanation on associated
the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The
relationship among the aforesaid
Company neither knew whether there exists associated relationship among the other tradable
shareholders
shareholders, nor they belong to consistent actors that are prescribed in Measures for the
Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
Explanation on shareholders Among the top ten shareholders, Zhong Jiachao holds 1,277,494 shares of the Company, of
involving margin business (if which, 743,494 shares held by normal account, and 534,000 shares held through credit security
applicable) account
4. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
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Summary of Semi-Annual Report 2019
□ Applicable √Not applicable
The Company had no changes of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.
5. Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
6. 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
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
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.
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.
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Summary of Semi-Annual Report 2019
2. Matters relevant to financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the accounting period of last year
√Applicable □ Not applicable
Contents and Causes of Accounting Policy Change Approval procedure Note
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. Change of the accounting
24- Hedge Accounting and Accounting Standards for Business Enterprise No. 37- Presentation of policy has deliberated and
Financial Instruments after revised in 2017 ( these four items are collectively referred to as the new approved by the 11th
financial instrument standards).The Company implemented the above mentioned new standards session of 9th BOD
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
Change of the accounting
Statement Format for General Corporate (Cai Kuai [2019] No.6) (hereinafter referred to as Financial
policy has deliberated and
Statement Format), in terms of the financial statement of mid-term 2019, the annual financial
approved by the 11th
statement and later period’s financial statement are required to preparing in line with the Accounting
session of 9th BOD
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 31 st December 2018 in
balance sheet are as:
Item Consolidated Balance Sheet
Before the adjustment After the adjustment
Notes Receivable and Accounts Receivable 185,983,351.22
Notes Receivable 69,185,516.71
Accounts Receivable 116,797,834.51
Notes Payable and Accounts Payable 88,617,663.09
Notes Payable 27,642,356.66
Accounts Payable 60,975,306.43
(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period
□ Applicable √ Not applicable
The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.
(3) Particulars about the change of consolidation range compared with the accounting period of last year
□ Applicable √ Not applicable
The Company’s consolidation range has no changes in the period.
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