Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Stock Code: 000020 200020 Public Notice No.: 2022-44
Short Form of the Stock: SHEN HUAFA-A SHEN HUAFA-B
Shenzhen Zhongheng Huafa Co., Ltd.
The Third Quarterly Report for 2022
The Company and whole members of the BOD guarantee that the information disclosed is true,
accurate and complete, and there are no any fictitious records, misleading statements or important
omissions.
Important content reminder:
1. 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.
2. Principal of the Company, Person in Charge of Accounting Works and Person in
Charge of Accounting Organ (Accounting Officer) hereby confirm that the Financial
Report of the Third Quarterly Report is authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes √No
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
I. Main financial data
(i) Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Increase/decrease from
Increase/decrease in the
year-begin to period-
period compared with the Year-begin to
Current period end compared with the
same period of the period-end
same period of the
previous year
previous year
Operating income (Yuan) 163,496,024.99 -22.84% 517,642,945.80 -14.23%
Net profit attributable to
shareholders of the listed -282,038.65 -124.72% 8,524,746.45 5.07%
company (Yuan)
Net profit attributable to
shareholders of the listed
company after deducting -1,079,915.71 -288.72% 3,071,013.23 -58.12%
non-recurring gains and
losses (Yuan)
Net cash flow arising from
operating activities (Yuan) — — 78,036,564.86 424.00%
Basic earnings per share
(Yuan /Share) -0.0010 -125.00% 0.0301 4.51%
Diluted earnings per share
(Yuan /Share) -0.0010 -125.00% 0.0301 4.51%
Weighted average ROE -0.08% -0.41% 2.45% 0.28%
End of current Increase/decrease at the period-end compared
End of previous year
period with the end of the previous year
Total assets (Yuan) 613,640,331.12 659,933,225.57 -7.01%
Net assets attributable to
shareholder of listed 351,975,385.76 343,450,639.31 2.48%
company (Yuan)
(ii) Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
Unit: Yuan
Amount from year-begin to
Amount for the Note
Item
period period-end
Gains/losses from the disposal of non-
current asset (including the write-off that 35,802.67 825,110.93
accrued for impairment of assets)
Government subsidy recorded in current 446,257.00 4,961,580.81
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
gains/losses (except those closely related
to the Company’s normal operation, and
those continuously enjoyed on a fixed or
quantitative basis with certain standards
in accordance with national policy
regulations)
Gains/losses of entrusting others to
invest or manage assets 188,158.81 368,247.00
Other non-operating income and
expenses other than the above 291,290.53 316,557.14
减：所得税影响额 163,631.95 1,017,762.66
Total 797,877.06 5,453,733.22 --
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit (gains)/losses
Explanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
(iii) Particulars about changes in items of main accounting data and financial index and explanations of
reasons
√ Applicable □Not applicable
January-September January-September Changes ratio Reason
Item
2022 2021
Effectively accelerate
inventory turnover and
Monetary fund 84,034,727.69 34,426,043.11 144.10%
reduction in capital
occupation
Less revenue and notes
Note receivable 66,137,240.28 105,922,317.60 -37.56% receivable in the current
period
Receivable Reduction in the amount of
226,046.05 500,000.00 -54.79%
financing bank acceptance
The raw materials of
constant hair display module
of
Accounts paid in Hengfa Co., Ltd.are mostly
15,255,113.19 7,996,570.95 90.77%
advance prepaid.
September increases
prepayment for new orders in
October
Effectively accelerate
Inventories 59,245,974.71 90,585,670.27 -34.60% inventory turnover and
capital occupation
Other current assets 3,732,033.86 -100.00% VAT withholding reduction
-
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Continuing investment in
Construction in
progress 1,055,000.00 740,000.00 42.57% Gongming Electronic City
Renovation Project
Amortization of property
Right-of-use assets 130,811.70 209,298.72 -37.50%
using rights
Loan Reduction of Hengfa
Short-term loans 8,874,750.00 26,480,857.00 -66.49%
Co., Ltd.
Increase in bill Settlement
Note payable 32,770,753.77 21,554,981.30 52.03%
Ratio
Other current
liabilities
36,458,028.55 64,644,280.61 -43.60% Less endorsed undue paper
Amortization of Lease
Lease liability 71,938.12 115,101.00 -37.50%
liability
Non-current Return a long-term loan that
liabilities due 12,104,400.61 61,104,400.61 -80.19%
within one year is due in one year
Long-term loans 40,000,000.00 New long-term loan this year
Item September 30, 2022 September 30, 2021 Changes ratio Reason
Decrease in Retained VAT
Tax and extras 2,969,226.43 2,180,093.13 36.20% this year.Increase in tax
and extra charges
Financial expense 947,222.43 6,725,414.16 -85.92% Currency fluctuations
Increased in received
other income 4,961,580.81 345,453.35 1336.25% government subsidies this
year
Investment Increase in financial
368,247.00 238,661.58 54.30%
income management this year
Decrease in stock this year
Losses of
devaluation of asset
0 -1,350,000.00 -100% and effective digestion of
waste material
Income from assets Fixed Asset Disposal in the
825,110.93 21,059.60 3817.98%
disposal Closed-down Business Section
Breach of contract damages
Less: Non-
operating expense
55,821.78 219,887.56 -74.61% occurred in the previous
period
Write-back of tax Increase in Export tax
2,843,031.08 2,159,861.95 31.63%
received rebate
Increase in the payment of
Taxes paid 26,493,389.34 19,266,205.32 37.51%
VAT and additional
Net cash
received from Fixed Asset Disposal in the
disposal of fixed, 3,858,165.26 100,950.00 3721.86%
intangible and other Closed-down Business Section
long-term assets
Other cash received
concerning
investing 105,000,000.00 0 - Financial redemption
activities
Cash paid for
purchasing fixed, Decrease in fixed asset
1,697,030.83 3,919,845.12 -56.71%
intangible and other input this year
long-term assets
Other cash paid Wealth-management products
concerning 105,000,000.00 0 -
investing activities purchasing
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Cash paid for
dividend and profit Decrease in loans and
3,758,805.15 5,510,317.28 -31.79%
distributing or interest this year
interest paying
II. Shareholders Information
(i) Total number of common shareholders and preference shareholders with voting rights recovered and
top ten common shareholders
In Share
Total common shareholders at the end of Total preference shareholders with voting rights
22,139 0
report period recovered at end of reporting period (if applicable)
Top ten shareholders
Proportion Amount of Information of shares pledged, tagged
Shareholder’s Nature of Amount of
of shares restricted or frozen
name shareholder shares held
held shares held State of share Amount
Wuhan Zhongheng Frozen 119,289,894
New Science & Domestic non-
Technology state-owned legal 42.13% 119,289,894 0
Industrial Group person Pledged 116,100,000
Co., Ltd
SEG (HONG Overseas legal
KONG) CO., LTD. person 5.85% 16,569,560 0
GOOD HOPE
CORNER Overseas legal
2.50% 7,072,000 0
INVESTMENTS person
LTD.
Changjiang
Securities
Overseas legal
Brokerage 1.89% 5,355,249 0
person
(Hongkong) Co.,
Ltd.
Guoyuan Securities
Overseas legal
Brokerage (Hong
person 1.37% 3,870,117 0
Kong) Limited
Overseas nature
Li Zhongqiu
person 1.00% 2,830,000 0
Domestic nature
He Wei 0.75% 2,111,019 0
person
Domestic nature
Yao Ming 0.63% 1,788,005 0
person
Shengyin
Overseas legal
Investment Co., 0.50% 1,408,600 0
person
Ltd.
Domestic nature
Wang Ying 0.40% 1,134,400 0
person
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders’ name Amount of un-restrict shares held at Period-end
Type Amount
Wuhan Zhongheng New Science & RMB common
119,289,894 119,289,894
Technology Industrial Group Co., Ltd share
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign 16,569,560
shares
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Domestically
GOOD HOPE CORNER
INVESTMENTS LTD. 7,072,000 listed foreign 7,072,000
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign 5,355,249
(Hongkong) Co., Ltd.
shares
Domestically
Guoyuan Securities Brokerage (Hong
3,870,117 listed foreign 3,870,117
Kong) Limited
shares
Domestically
Li Zhongqiu 2,830,000 listed foreign 2,830,000
shares
Domestically
He Wei 2,111,019 listed foreign 2,111,019
shares
Domestically
Yao Ming 1,788,005 listed foreign 1,788,005
shares
Domestically
Shengyin Investment Co., Ltd. 1,408,600 listed foreign 1,408,600
shares
Domestically
Wang Ying 1,134,400 listed foreign 1,134,400
shares
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 Investment Co., Ltd. is an
Explanation on associated relationship among the overseas wholly-owned subsidiary of Wuhan Zhongheng group.The
aforesaid shareholders Company neither knew whether there exists associated relationship among
the other shareholders, nor they belong to consistent actors that are
prescribed in Measures for the Administration of Disclosure of
Shareholder Equity Changes of Listed Companies.
Description of the above shareholders in relation to
delegate/entrusted voting rights and abstention from N/A
voting rights.
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
III. Explanation on other significant events
√ Applicable □ Not applicable
(1) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & Technology
Industrial Group Co., Ltd (hereinafter referred to as 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
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
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 of
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” on 26 August 2015, and “Agreement on housing acquisition and removal compensation and resettlement”
with Wuhan Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as
“Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to
as “Vanke Guangming”).
On 12 September 2016, 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. Shenzhen Court of International Arbitration (SCIA) has
given a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application of
Shenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “no
execution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminate
the enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed by
outsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen Intermediate
People’s Court to resume execution.
In April 2020, Zhongheng Semiconductor sued the company to Shenzhen Intermediate People’s Court, and
requested the company to transfer the above mentioned two pieces of lands and compensate the economic loss of
52 million yuan, the first and second trial judgments reject the Semiconductor’s appeal; Zhongheng
Semiconductor sued the Company and the invalid of “Agreement on the cooperation of urban renewal project of
the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” signed by Wuhan
Zhongheng Group Company and Vanke, the second trial rejects all claims of Zhongheng Semiconductor. Progress
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
of the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016,
on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018, 7 Sept.
2018, 21 Apr. 2020, 3 Jun, 2021, 22 Jul. 2021 and Mar. 5, 2022 respectively.
(2) 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. 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 date 2 Feb. 2018.
In March 2021, Wuhan Zhongheng Group received the judgment on case of “pledged securities repurchase
dispute” brought by China Merchants Securities Assets Management Co., Ltd from High People’s Court of
Guangdong Province. Wuhan Zhongheng Group appealed to the Supreme People’s Court against the decision.
Found more in notice released on Juchao Website dated March 19, 2021.
(3) 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 by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on
September 27, 2016, 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 Juchao Website
dated October 27, 2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(4) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the
“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “Supplemental
Agreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and Wuhan
Zhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due to
differences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to the
Shenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’s
name and part of our company dormitories, please refer to “Other Announcements on the Progress Involving
Litigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released on Juchao Website dated
November 14, 2018 and March 6, 2019. In November 2019, the Shenzhen Court of International Arbitration ruled
that the company and Wuhan Zhongheng Group paid the corresponding fees. According to the relevant agreement
of the “Entrusted Agency Contract” and “Supplementary Agreement” signed by the three parties, loss of the
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
ruling in the case shall be fully borne by Wuhan Zhongheng Group, therefore, it has no impact on the profit of the
Company. Found more on “Other Announcements on the Progress Involving Litigation and Arbitration”
(Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
(5) Business of the Company - Styrofoam is a traditional manufacturing industry. The industry has stepping into
the maturity with severe overcapacity, the oversupply leads to a low gross margin and downward trend of
profitability of the Company’s products. The “proposal to shut down the Styrofoam business from wholly-owned
subsidiary” was deliberated and approved by the third interim meeting of BOD of 2022. Closure of the plant is
progressing steadily.
IV. Quarterly financial statements
(i) Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
Unit: Yuan
Item September 30, 2021 December 31, 2020
Current assets:
Monetary fund 84,034,727.69 34,426,043.11
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 66,137,240.28 105,922,317.60
Account receivable 116,458,797.19 128,675,327.97
Receivable financing 226,046.05 500,000.00
Accounts paid in advance 15,255,113.19 7,996,570.95
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 5,086,075.03 4,520,412.70
Including: Interest receivable 0.00
Dividend receivable
Buying back the sale of financial
assets
Inventories 59,245,974.71 90,585,670.27
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 3,732,033.86
Total current assets 346,443,974.14 376,358,376.46
Non-current assets:
Loans and payments on behalf
Debt investment
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 44,895,530.10 46,191,777.80
Fixed assets 174,130,318.28 187,889,261.50
Construction in progress 1,055,000.00 740,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets 130,811.70 209,298.72
Intangible assets 37,883,734.72 39,171,573.09
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned 1,473,066.07 1,691,257.89
Deferred income tax asset 7,627,896.11 7,681,680.11
Other non-current asset
Total non-current asset 267,196,356.98 283,574,849.11
Total assets 613,640,331.12 659,933,225.57
Current liabilities:
Short-term loans 8,874,750.00 26,480,857.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 32,770,753.77 21,554,981.30
Account payable 75,725,264.50 88,529,478.96
Accounts received in advance 0.00
Contractual liability 786,643.80 736,355.70
Selling financial asset of repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 4,717,302.50 3,844,381.07
Taxes payable 14,473,118.97 14,657,117.69
Other account payable 31,674,585.36 30,448,913.14
Including: Interest payable 112,741.09 113,080.26
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
12,104,400.61 61,104,400.61
one year
Other current liabilities 36,458,028.55 64,644,280.61
Total current liabilities 217,584,848.06 312,000,766.08
Non-current liabilities:
Insurance contract reserve
Long-term loans 40,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability 71,938.12 115,101.00
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Long-term account payable
Long-term wages payable
Accrual liability 801,159.18 801,159.18
Deferred income 3,207,000.00 3,565,560.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 44,080,097.30 4,481,820.18
Total liabilities 261,664,945.36 316,482,586.26
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 146,577,771.50 146,577,771.50
Less: Inventory shares 0.00
Other comprehensive income
Reasonable reserve 0.00
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk 0.00
Retained profit -155,155,205.99 -163,679,952.44
Total owner’ s equity attributable to
351,975,385.76 343,450,639.31
parent company
Minority interests
Total owner’ s equity 351,975,385.76 343,450,639.31
Total liabilities and owner’ s equity 613,640,331.12 659,933,225.57
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Chen Zhigang
Person in charge of accounting institute: Chuai Guoxu
2. Consolidated Profit Statement (from the year-begin to the period-end)
Unit: Yuan
Item Current period Last period
I. Total operating income 517,642,945.80 603,532,726.46
Including: Operating income 517,642,945.80 603,532,726.46
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 512,537,271.49 592,280,418.87
Including: Operating cost 457,223,464.54 525,693,924.66
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
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Tax and extras 2,969,226.43 2,180,093.13
Sales expense 14,611,641.85 18,991,695.17
Administrative expense 29,913,230.86 33,036,011.08
R&D expense 6,872,485.38 5,653,280.67
Financial expense 947,222.43 6,725,414.16
Including: Interest
4,246,764.09 5,977,916.47
expenses
Interest income 302,035.05 234,372.30
Add: other income 4,961,580.81 345,453.35
Investment income (Loss is
368,247.00 238,661.58
listed with “-”)
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 “-”)
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
(Loss is listed with “-”)
Losses of devaluation of asset
0.00 -1,350,000.00
(Loss is listed with “-”)
Income from assets disposal
825,110.93 21,059.60
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
11,260,613.05 10,507,482.12
“-”)
Add: Non-operating income 372,378.92 394,744.60
Less: Non-operating expense 55,821.78 219,887.56
IV. Total profit (Loss is listed with “-”) 11,577,170.19 10,682,339.16
Less: Income tax expense 3,052,423.74 2,569,327.53
V. Net profit (Net loss is listed with “-”) 8,524,746.45 8,113,011.63
(i) Classify by business continuity
1.continuous operating net profit
(net loss listed with ‘-”) 8,524,746.45 8,113,011.63
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company 8,524,746.45 8,113,011.63
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
(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
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Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
(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.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 8,524,746.45 8,113,011.63
Total comprehensive income
attributable to owners of parent 8,524,746.45 8,113,011.63
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0301 0.0288
(ii) Diluted earnings per share 0.0301 0.0288
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan before combination,
and realized 0.00 Yuan at last period for combined party
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Chen Zhigang
Person in charge of accounting institute: Chuai Guoxu
3. Consolidated Cash Flow Statement (from the year-begin to the period-end)
Unit: Yuan
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 425,141,075.61 383,981,831.41
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
13
Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
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 2,843,031.08 2,159,861.95
Other cash received concerning
9,511,449.99 13,230,159.40
operating activities
Subtotal of cash inflow arising from
437,495,556.68 399,371,852.76
operating activities
Cash paid for purchasing
258,731,249.86 291,924,059.89
commodities and receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
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 workers 43,707,955.83 54,527,895.49
Taxes paid 26,493,389.34 19,266,205.32
Other cash paid concerning
30,526,396.79 57,707,341.64
operating activities
Subtotal of cash outflow arising from
359,458,991.82 423,425,502.34
operating activities
Net cash flows arising from operating
78,036,564.86 -24,053,649.58
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income 351,648.64 275,579.90
Net cash received from disposal of
fixed, intangible and other long-term 3,858,165.26 100,950.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities 105,000,000.00
Subtotal of cash inflow from investing
activities 109,209,813.90 376,529.90
Cash paid for purchasing fixed,
intangible and other long-term assets 1,697,030.83 3,919,845.12
Cash paid for investment
Net increase of mortgaged loans 0.00
Net cash received from subsidiaries
and other units obtained
Other cash paid concerning
investing activities 105,000,000.00
Subtotal of cash outflow from investing
activities 106,697,030.83 3,919,845.12
Net cash flows arising from investing
activities 2,512,783.07 -3,543,315.22
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
14
Shenzhen Zhongheng Huafa Co., Ltd. The Third Quarterly Report for 2022
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 76,609,277.00 86,967,694.00
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities 76,609,277.00 86,967,694.00
Cash paid for settling debts 104,483,955.10 71,384,425.00
Cash paid for dividend and profit
distributing or interest paying 3,758,805.15 5,510,317.28
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities 108,242,760.25 76,894,742.28
Net cash flows arising from financing
activities -31,633,483.25 10,072,951.72
IV. Influence on cash and cash
equivalents due to fluctuation in 692,819.90 -495,777.96
exchange rate
V. Net increase of cash and cash
49,608,684.58 -18,019,791.04
equivalents
Add: Balance of cash and cash
32,802,562.90 60,968,053.58
equivalents at the period-begin
VI. Balance of cash and cash equivalents
at the period-end 82,411,247.48 42,948,262.54
(iii) Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
Board of Directors of
Shenzhen Zhongheng Huafa Co., Ltd.
October 25, 2022
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