Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
Stock Code: 000020 200020 Public Notice No.: 2021-09
Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA-B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.
Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□Applicable √ Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock Shen HUAFA A, Shen HUAFA B Stock code 000020, 200020
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Niu Zhuo
Office add. 618, 6/F, East Tower, No.411 Building,
Huafa (N) Road, Futian District, Shenzhen
Fax. 0755-86360206
Tel. 0755-86360201
E-mail huafainvestor@126.com.cn
2. Main business or product introduction in the reporting period
After years of development, the company has gradually formed two main businesses in industry and property
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
management. Among them, the industrial business mainly includes injection molding, polylon (light-weight
packaging materials), and complete machine production and sales of liquid crystal display, property management
business is mainly the lease of its own property.
3. Main accounting data and financial indexes
(I) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
In RMB
2020 2019 Changes over last year 2018
Operating income 691,742,269.12 721,557,440.51 -4.13% 637,046,707.03
Net profit attributable to
6,830,187.40 5,460,049.15 25.09% 3,295,022.72
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
4,103,393.55 4,843,096.96 -15.27% 1,535,043.65
after deducting non-recurring gains
and losses
Net cash flow arising from
59,719,269.60 74,463,707.01 -19.80% -21,894,459.66
operating activities
Basic earnings per share
0.0241 0.0193 24.87% 0.0116
(RMB/Share)
Diluted earnings per share
0.0241 0.0193 24.87% 0.0116
(RMB/Share)
Weighted average ROE 2.05% 1.67% 0.38% 1.02%
Changes over end of
End of 2020 End of 2019 End of 2018
last year
Total assets 627,779,621.06 614,163,899.86 2.22% 617,090,153.46
Net assets attributable to
336,248,737.29 329,428,049.89 2.07% 323,968,000.74
shareholder of listed company
(2) Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 87,800,584.55 212,902,836.83 200,183,800.78 190,855,046.96
Net profit attributable to
-400,741.17 3,566,338.72 1,685,488.94 2,496,470.28
shareholders of the listed company
Net profit attributable to
shareholders of the listed company
-208,179.52 3,376,075.98 1,108,517.51 344,348.95
after deducting non-recurring gains
and losses
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
Net cash flow arising from
7,931,308.59 13,268,903.65 -7,509,489.19 46,028,546.55
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered
and top ten shareholders
In Share
Total preference
Total common Total preference
Total common shareholders with
stock shareholders
stock voting rights
shareholders at with voting
shareholders in 21,840 22,456 0 recovered at end of 0
end of last month rights recovered
reporting last month before
before annual at end of
period-end annual report
report disclosed reporting period
disclosed
Top ten shareholders
Number of shares
Full name of Nature of Proportion of Amount of
Amount of restricted shares held pledged/frozen
Shareholders shareholder shares held shares held
State of share Amount
Domestic Pledged 116,100,000
Wuhan
non-state-ow
Zhongheng 42.13% 119,289,894 0
ned legal Frozen 119,289,894
Group
person
SEG (HONG Pledged 0
Overseas
KONG) CO., 5.85% 16,569,560 0
legal person Frozen 0
LTD.
GOOD HOPE Pledged 0
CORNER Overseas
2.50% 7,072,000 0
INVESTMENT legal person Frozen 0
S LTD.
Changjiang Pledged 0
Securities
Overseas
Brokerage 1.89% 5,355,249 0
legal person Frozen 0
(Hong Kong)
Co., Ltd.
Guoyuan Pledged 0
Securities
Overseas
Brokerage 1.37% 3,870,117 0
legal person Frozen 0
(Hong Kong)
Limited
Li Zhongqiu Overseas 1.00% 2,830,000 0 Pledged 0
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
nature
Frozen 0
person
Overseas Pledged 0
LI SHERYN
nature 0.51% 1,446,100 0
ZHAN MING Frozen 0
person
China Pledged 0
Merchants State-owned
0.50% 1,413,888 0
Securities Hong legal person Frozen 0
Kong Co., Ltd.
Shengyin Pledged 0
Overseas
Investment Co., 0.50% 1,408,600 0
legal person Frozen 0
Ltd.
Domestic Pledged 0
Li Senzhuang nature 0.37% 1,041,073 0
Frozen 0
person
Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng New
Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. Shengyin
Explanation on associated
Investment Co., Ltd. is an overseas wholly-owned subsidiary of Wuhan Zhongheng group.The
relationship among the
Company neither knew whether there exists associated relationship among the other shareholders,
aforesaid 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 involving
margin business (if N/A
applicable)
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
Li Zhongqiu Li Li (Son of Li Zhongqiu)
49%
51%
Wuhan Zhongheng New Science & Technology Industrial Group
Co., Ltd.
42.21%
Shenzhen Zhongheng Huafa Co., Ltd.
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
2020 was a very unusual year, the sudden outbreak of COVID-19 epidemic caused the company's important
subsidiary in Wuhan to be affected by the epidemic, the resumption of work and production was later than in other
areas of the country, and the loss of orders was relatively serious. Faced with such a difficult business
environment, all employees of the company worked together to actively overcame the adverse effects of the
epidemic, complied with the industry environment and the adjustment of national policies, broke through thinking
and management strategies, and achieved good operating results.
In 2020, the company achieved operating revenue of 691.7423 million yuan, a decrease of 4.13% on a
year-on-year basis, total profits of 8.82 million yuan, increased by 13.76% compared with the same period last
year, net profit amounted to 6.8302 million yuan, a 25.09% up from a year earlier.
●Video service business achieved annual operating income of 396.06 million yuan, an increase of 19.29% on a
year-on-year basis, operation profit amounted as 6.4795 million yuan with 132.49% up from a year earlier. During
the reporting period, the Video Business Division adjusted the product structure and optimized the sales ratio of
each brand of products. The sales ratio of AOC, VSCN and VSC series brands have increased, which opened
online sales channels such as Jingdong while completing existing customer orders, and sold 900,000 LCD
monitors in 2020, an increase of 9.68% over last year.
●Injection molding business achieved annual operating income of 185.4917 million yuan, a decrease of 25.86%
over the same period last year, operation profit amounted as 548,600 yuan, an increase of 2.39% from a year
earlier. With the unceasingly fierce competition in the market, the profit margin of injection molding was
squeezed, but the new production line put into production by this business division at the end of 2018 gave full
play to its automation advantages in 2020, which greatly improved production efficiency and reduced production
costs. The injection molding division achieved annual sales volume of 9,900 tons, completed the annual sales
target.
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
●Polylon business achieved annual operating income of 35.8333 million yuan, a decrease of 44.30% over the
same period last year. Actual sales for the year were 2,500 tons, basically reaching the sales target. In order to
better fulfill the sales target of 2021, the EPS business division maintained existing orders, increased the
proportion of structural parts orders, developed new customer resources, and strive to accept more domestic and
foreign large-scale household appliance customers’ orders.
●The property rental business achieved annual operating income of 40.5875 million yuan, an increase of 4.55%
from a year earlier, operating profit amounted as 6 million yuan with a growth of 7.86% over that of last year. In
2020, the company optimized the structural proportion of commercial tenants, and the occupancy rate was greatly
improved, at the same time, the company strictly controlled costs and reduced unnecessary expenditures.
Therefore, the company’s overall rental profits increased significantly compared with the previous year.
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operating
Name Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
Monitor 396,060,015.82 6,479,543.15 6.63% 19.29% 132.49% 0.15%
Injection model 185,491,674.08 548,642.72 9.40% -25.86% 2.39% -1.39%
EPS products 35,833,322.61 -4,117,636.91 -5.74% -44.30% -279.45% -9.07%
Property lease 40,587,453.21 6,000,207.46 86.87% 4.55% 7.86% -6.75%
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Facing delisting
□ Applicable √ Not applicable
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Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2020
7. Related matters relating to financial reports
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
□ Applicable √ Not applicable
There was no change in aspect of accounting policy, estimates and calculation method
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
√Applicable □ Not applicable
Combined Percentage Constitute Combining Basis for Income of the Net profit of Income of Net profit
party of equity the basis for date determinin combined the combined the of the
acquired in the g the date party from the party from the combined combined
enterprise enterprise of beginning of beginning of party party
combinatio combination combinatio the period of the period of during the during the
n under n combination to combination to compariso comparison
the same the date of the date of n period period
control combination combination
Ruth Co., 100.00% 2020.11.10 Equity Tr
Ltd. ansfer A
greement
Ruth Co., Ltd was established in Hong Kong dated 25 October 2020 with registered capital of HK$ 10,000.00, no actual capital
contributed and has not yet commenced production and operation activities.
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