Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2013
October 2013
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred
to as the Company) and its directors, supervisors and senior executives 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.
All directors of the Company are attended the Meeting for quarterly report deliberation.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting Works Cao Li and Person in Charge of
Accounting Organ (Accounting Officer) Wu Aijie hereby confirm that the Financial Report of the Third Quarterly
Report is authentic, accurate and complete.
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Section II. Main accounting data and changes of shareholders
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Current period-end Period-end of last year Increase/decrease
Total assets(RMB) 705,838,382.98 681,645,093.97 3.55%
Net assets attributable to shareholders
280,989,133.59 280,181,050.91 0.29%
of listed company (RMB)
Increase/decrease in
Increase/decrease in
Year-begin to end of comparison with
Current period comparison with same
the Period year-begin to Period-end of
period of last year
last year
Operating revenue (RMB) 150,618,600.97 -8.9% 453,351,424.39 -17.4%
Net profit attributable to shareholders
-1,159,897.75 -761.46% 808,082.68 -87.16%
of the listed company (RMB)
Net profit attributable to shareholders
of the listed company after deducting -1,200,560.78 -728.16% 1,617,285.44 -73.53%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-- -- -39,975,763.31 -477.74%
activities(RMB)
Basic earnings per share
-0.0041 -761.46% 0.0029 -86.94%
(RMB/Share)
Diluted earnings per share
-0.0041 -761.46% 0.0029 -86.94%
(RMB/Share)
Weighted average ROE (%) -0.41% 0.36 percent points down 0.29% 1.96 percent points down
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Amount from year-begin to
Item Note
end of the Period
Gains/losses from the disposal of non-current asset (including the
4,987.17
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not Received government subsidy RMB 0.2
including the subsidy enjoyed in quota or ration according to 450,000.00 million due to the taxes paid over one
national standards, which are closely relevant to enterprise’s million; RMB 0.25 million government
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
business) subsidy gained due to the energy-saving
and cost-reducing
Accrued liability RMB 2362203.26 was
accrued due to the lawsuit of Shanxi
Other non-operating income and expenditure except for the Linghua; the accrued liability RMB
-1,736,466.36
aforementioned items 473097.55 of Wanshang Lawsuit was
reversed and income from liquidated
damages
Less: impact on income tax -472,276.43
Total -809,202.76 --
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
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the
Period
In Share
Total shareholders at period-end 26,587 (including 17,819 shareholders of A share)
Shares-held of top ten shareholders
Amount of Number of share pledged/frozen
Nature of Proportion of Amount of shares
Shareholders restricted shares
shareholder shares held (%) held State of share Amount
held
Wuhan Zhongheng New Domestic Pledged 116,489,894
Science & Technology non-state-owned 41.14% 116,489,894 116,489,894
Frozen 0
Industrial Group Co., Ltd. legal person
SEG (HONG KONG) Overseas legal Pledged 0
5.58% 16,569,560 0
CO., LTD. person Frozen 0
GOOD HOPE CORNER Overseas legal Pledged 0
4.91% 13,900,000 0
INVESTMENTS LTD person Frozen 0
Overseas nature Pledged 0
BINGHUA LIU 0.31% 876,213 0
person Frozen 0
Domestic nature Frozen 0
Li Jianfeng 0.3% 862,800 0
person Frozen 0
Domestic nature Pledged 0
Jia Wenjun 0.27% 750,914 0
person Frozen 0
Zhu Ming Domestic nature 0.22% 611,348 0 Pledged 0
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
person Frozen 0
Specific account for Pledged 0
State-owned legal
agreed to repurchase of 0.21% 600,000 0
person Frozen 0
Caida Securities Co., Ltd.
Domestic nature Pledged 0
Lin Song 0.18% 503,000 0
person Frozen 0
Domestic nature Pledged 0
Zeng Ying 0.18% 500,000 0
person Frozen 0
Domestic nature Pledged 0
Liu Fei 0.18% 500,000 0
person Frozen 0
Domestic nature Pledged 0
Xie Deqing 0.18% 500,000 0
person Frozen 0
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders Amount of un-restrict shares held
Type Amount
Domestically listed
SEG (HONG KONG) CO., LTD. 16,569,560 16,569,560
foreign shares
GOOD HOPE CORNER INVESTMENTS Domestically listed
13,900,000 13,900,000
LTD foreign shares
Domestically listed
BINGHUA LIU 876,213 876,213
foreign shares
Domestically listed
Li Jianfeng 862,800 862,800
foreign shares
RMB ordinary
Jia Wenjun 750,914 750,914
shares
Domestically listed
Zhu Ming 611,348 611,348
foreign shares
Specific account for agreed to repurchase of RMB ordinary
600,000 600,000
Caida Securities Co., Ltd. shares
Domestically listed
Lin Song 503,000 503,000
foreign shares
Domestically listed
Zeng Ying 500,000 500,000
foreign shares
Domestically listed
Liu Fei 500,000 500,000
foreign shares
Domestically listed
Xie Deqing 500,000 500,000
foreign shares
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Among the shareholders, Wuhan Zhongheng New Science & Technology Industrial Group
Co., Ltd. neither bears associated relationship with other shareholders, nor belongs to the
consistent actor that are prescribed in Measures for the Administration of Disclosure of
Explanation on associated relationship among
Shareholder Equity Changes of Listed Companies. the Company has no idea about whether
the aforesaid shareholders
other tradable shareholders has associated relationship, and has no idea about whether 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 involving margin
N/A
business (if applicable)
Whether has a buy-back agreement dealing in reporting period
√Yes □No
During the reporting period, among the top ten shareholders, Mr. Jia Wenjun conduct a security agreed-to-buyback dealing with
Caida Securities Co., Ltd with the 400,000 shares of the Company, which occupies 0.14 percent of the total shares capital of the
Company; as of the reproting period, 750,914 shares of the Company were held by Mr. Jia Wenjun, a 0.27 percent of total share
captial of the Company.
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
In RMB
Item 2013-9-30 2012-12-31 Increase/decr Reasons
ease y-o-y
Monetary fund 73,958,944.04 112,834,841.39 -34.45% This period is the sales season, the delivery and
payment increase
Note receivable 28,513,241.87 43,000,217.81 -33.69% Note business decreased in the Period
Advance payment 26,547,840.97 14,168,016.74 87.38% Material purchasing increased in the Period
Other account receivable 14,559,680.34 9,563,505.01 52.24% Amount for investment outside was suspend
temporary
Inventory 80,734,009.19 42,771,061.45 88.76% Prepared goods for peak season
Long-term prepaid expenses 2,909,949.89 806,724.98 260.71% Renovation costs from Huafa Buildings increased
in the Period
Advance payment 2,689,907.69 764,493.92 251.85% Utilities from lessee received in advance
Payable taxes 9,793,587.42 16,502,523.22 -40.65% Operation revenue decreased in the Period
Estimated debts 3,318,719.81 1,429,614.10 132.14% The lawsuit charge of Shanxi Linghua was
withdrawal
Item 2013-9-30 2012-12-31 Increase/decr Reasons
ease y-o-y
Business tax and extra 4,088,844.27 2,711,251.58 50.81% The VAT of export rebates paid in the Period
Losses of devaluation of asset -869,044.62 1,044,504.75 -183.20% Bad debt provision reversed
Non-operating income 769,645.79 243,621.42 215.92% Part of the fixed assets are disposed and received a
government subsdy for energy-saving
Non-operating expense 2,051,124.98 100.00 2051024.98% The lawsuit charge of Shanxi Linghua was
withdrawal
Income tax expenses -169,257.95 2,343,559.45 -107.22% The deferred income tax arising from accured
liability increased and the income tax expenses
decreased in the Period
Total profit 638,824.73 8,635,154.47 -92.60% Income from property rental in the Period
decreased
Net profit 808,082.68 6,291,595.02 -87.16% Income from property rental in the Period
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
decreased
Tax rebates 3,999.97 16,867,799.10 -99.98% Amount of export rebates decreased in the Period
Cash paid for purchasing fixed, 2,646,452.59 5,913,766.51 -55.25% Production equipmet newly purchased in the
intangible and other long-term assets Peirod decreased
Cash received from loans 372,867,761.34 217,256,454.05 71.63% Short-term financing reduced
Cash paid for settling debts 349,936,294.48 183,402,482.80 90.80% Repayment of short-term financing increased
Impact on cash and cash equivalent -3,616,808.99 -356,357.14 -914.94% Excange rate has a major change in the Period
from changes of rate
Increase of net cash and cash equivalent -38,875,897.35 5,617,608.08 -792.04% Operation revenue decreased in the Period
Balance of cash and cash equivalent at 73,958,944.04 113,362,336.45 -34.76% Operation revenue decreased in the Period
period-end
II. Progress of significant events, their influences, and analysis and explanation of their
solutions
Concerning the 1/F to 3/F of Huafa Building, the self-owned property of the Company, the floors are under the refitting for leasing
since the tenancy contract expired in the third quarter of last year; part of the shops are open successively, however, the whole leasing
still in process, and the introduction of business still in negotiation; the revenue and profit from property leasing gains a major y-o-y
down due to the vacancy of the shops. The Company has released a “Risk Indicative Announcement” for the above said events on 30
January 2013.
III. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or made in previous period and extending to reporting period
Commitment Dated for
Commitments Contents Commitment term Implementation
party commitment
The commitment have been implemented
Non-tradable shares on 18 May 2010; considering all
Wuhan of the Company 116,489,894 shares of the Company are
Zhongheng should not be listed in the situation of being pledged, till the
36 months from
New Science & for trading within end of this report period, Wuhan
Share Merger Reform 2006-10-20 May 18,2007 to
Technology 36 months since the Zhongheng New Science & Technology
May 17,2010
Industrial Group date of listed Industrial Group Co., Ltd. have not
Co., Ltd. tradable right applied the released procedure to
obtained. Shenzhen Stock Exchange for the
abovementioned restricted shares.
Within 1 year after
1. On 5 June 2008, approving by the 3 rd
transferred of this
Wuhan Extraordinary Meeting of Board of
equity acquisition:
Zhongheng Directors 2008, the Company purchased
1. Injected relevant
Commitments in report of New Science & April 12,2007 to relevant assets of plastic injection
capital of plastic 2007-03-29
acquisition or equity change Technology April 11,2008 products from Wuhan Zhongheng New
injection business
Industrial Group Science & Technology Industrial Group
into the Company;
Co., Ltd. Co., Ltd. by cash of RMB 27 million, the
2. 70% equity of
commitment have been implemented;
the Hengsheng
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Photoelectricity 2. In the first 10 days of May, 2008, the
will inject into the Company officially started off the
Company. significant asset restructures work of
purchasing the 70% equities of
Hengsheng Photoelectricity.; engaged
financial consultant and law consultant to
carry out earnest investigation on the
restructure assets that may be involved,
and negotiated with relevant departments
which were in charge of this. However,
due to that relevant condition was not
mature; there still remain obstacles in
material asset restructure.
Commitments in assets
N/A
reorganization
Commitments in initial
public offering or N/A
refinancing
Other commitments to
minority shareholders of the N/A
Company
Completed on time or not No
Detail reasons for
un-complement and further Found in “Implementation”
plan (if applicable)
IV. Estimation of operation performance for year of 2013
Estimation of 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 of reason
□Applicable √Not applicable
V. Registration form of receiving research, communication and interview in the report period
Content discussed and
Date Place Way Type Object
documents provided
Operation situation of the
From July to September The company's
Telephone Personal Individual investors Company, assets status and
in 2013 headquarters
process of city update projects
Operation situation of the
The company's
2013-9-25 Investigation Personal Individual investors Company, assets status and
headquarters
process of city update projects
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 73,958,944.04 112,834,841.39
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable 28,513,241.87 43,000,217.81
Accounts receivable 187,267,079.42 161,782,907.79
Accounts paid in advance 26,547,840.97 14,168,016.74
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 14,559,680.34 9,563,505.01
Purchase restituted finance asset
Inventories 80,734,009.19 42,771,061.45
Non-current asset due within one year
Other current assets
Total current assets 411,580,795.83 384,120,550.19
Non-current assets:
Granted loans and advances
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment property 32,843,110.09 33,784,177.90
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Fixed assets 198,168,989.71 202,743,248.34
Construction in progress 2,520,356.00 2,043,356.00
Engineering material
Disposal of fixed asset 56,645.29
Productive biological asset
Oil and gas asset
Intangible assets 49,894,552.14 50,538,067.80
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 2,909,949.89 806,724.98
Deferred income tax asset 7,863,984.03 7,608,968.76
Other non-current asset
Total non-current asset 294,257,587.15 297,524,543.78
Total assets 705,838,382.98 681,645,093.97
Current liabilities:
Short-term loans 139,045,902.44 109,694,640.00
Loan from central bank
Absorbing deposit and interbank deposit
Capital borrowed
Transaction financial liabilities
Notes payable 31,793,596.88 34,511,327.39
Accounts payable 46,026,416.02 48,952,915.87
Accounts received in advance 2,689,907.69 764,493.92
Selling financial asset of repurchase
Commission charge and commission payable
Wage payable 3,896,930.01 4,609,188.91
Taxes payable 9,793,587.42 16,502,523.22
Interest payable
Dividend payable
Other accounts payable 25,565,389.12 21,280,539.65
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 258,811,729.58 236,315,628.96
Non-current liabilities:
Long-term loans 162,718,800.00 163,718,800.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 3,318,719.81 1,429,614.10
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 166,037,519.81 165,148,414.10
Total liabilities 424,849,249.39 401,464,043.06
Owner’s equity (or shareholders’ equity):
Paid-in capital (or share capital) 283,161,227.00 283,161,227.00
Capital public reserve 109,496,837.33 109,496,837.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -189,060,523.99 -189,868,606.67
Balance difference of foreign currency translation
Total owner’s equity attributable to parent company 280,989,133.59 280,181,050.91
Minority interests
Total owner’s equity(or shareholders’ equity) 280,989,133.59 280,181,050.91
Total liabilities and owner’s equity(or shareholders’ equity) 705,838,382.98 681,645,093.97
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of parent company
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Balance at period-end Balance at period-begin
Current assets:
Monetary funds 8,236,591.16 10,555,114.25
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Transaction finance asset
Notes receivable 1,790,000.00
Accounts receivable 45,182,700.67 45,179,657.87
Accounts paid in advance 2,014,203.62 3,576,103.62
Interest receivable
Dividend receivable
Other receivables 101,234,955.49 64,735,528.50
Inventories 14,806.50 14,806.50
Non-current asset due within one year
Other current assets
Total current assets 156,683,257.44 125,851,210.74
Non-current assets:
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 184,708,900.00 184,708,900.00
Investment real estate 32,843,110.09 33,784,177.90
Fixed assets 105,482,374.43 108,512,126.65
Construction in progress 2,323,356.00 2,043,356.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 5,495,856.42 5,568,329.28
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 2,829,833.27 710,933.33
Deferred income tax asset 8,392,663.12 8,137,647.85
Other non-current asset
Total non-current asset 342,076,093.33 343,465,471.01
Total assets 498,759,350.77 469,316,681.75
Current liabilities:
Short-term loans 29,352,500.00 250,000.00
Transaction financial liabilities
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Notes payable
Accounts payable 10,283,176.69 11,719,031.31
Accounts received in advance 2,436,188.69 332,823.92
Wage payable 567,439.39 667,119.57
Taxes payable 10,489,298.16 11,766,728.78
Interest payable
Dividend payable
Other accounts payable 10,052,861.42 11,143,036.79
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 63,181,464.35 35,878,740.37
Non-current liabilities:
Long-term loans 162,718,800.00 163,718,800.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities 3,318,719.81 1,429,614.10
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 166,037,519.81 165,148,414.10
Total liabilities 229,218,984.16 201,027,154.47
Owner’s equity (or shareholders’ equity):
Paid-up capital (or share capital) 283,161,227.00 283,161,227.00
Capital public reserve 109,496,837.33 109,496,837.33
Less: Inventory shares
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
General risk reserve
Retained profit -200,509,290.97 -201,760,130.30
Balance difference of foreign currency translation
Total owner’s equity(or shareholders’ equity) 269,540,366.61 268,289,527.28
Total liabilities and owner’s equity(or shareholders’ equity) 498,759,350.77 469,316,681.75
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
3. Consolidated Profit Statement (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Total operating income 150,618,600.97 165,334,212.55
Including: Operating income 150,618,600.97 165,334,212.55
II. Total operating cost 152,358,158.50 165,473,531.86
Including: Operating cost 130,778,059.89 145,162,417.42
Operating tax and extras 2,815,332.20 1,055,266.94
Sales expenses 2,740,965.09 2,564,942.86
Administration expenses 8,664,451.85 11,923,288.65
Financial expenses 7,359,349.47 4,935,227.82
Losses of devaluation of asset -167,611.83
III. Operating profit (Loss is listed with “-”) -1,739,557.53 -139,319.31
Add: Non-operating income 51,325.00 13,800.00
Less: Non-operating expense 10,661.97
IV. Total Profit (Loss is listed with “-”) -1,698,894.50 -125,519.31
Less: Income tax expense -538,996.75 9,123.48
V. Net profit (Net loss is listed with “-”) -1,159,897.75 -134,642.79
Net profit attributable to owner’s of parent company -1,159,897.75 -134,642.79
VI. Earnings per share -- --
i. Basic earnings per share -0.0041 -0.0005
ii. Diluted earnings per share -0.0041 -0.0005
VIII. Total comprehensive income -1,159,897.75 -134,642.79
Total consolidated income attributable to owners of parent company -1,159,897.75 -134,642.79
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of parent company (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Amount in this period Amount in last period
I. Operating income 10,099,979.83 9,903,540.51
Less: operating cost 891,969.77 1,321,969.05
Operating tax and extras 704,385.03 673,362.50
Sales expenses 185,740.19
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Administration expenses 4,106,604.76 5,872,792.34
Financial expenses 3,586,239.12 3,041,059.64
II. Operating profit (Loss is listed with “-”) 810,781.15 -1,191,383.21
Add: Non-operating income 39,520.00 12,000.00
Less: Non-operating expense 77.22
III. Total Profit (Loss is listed with “-”) 850,223.93 -1,179,383.21
Less: Income tax expense -294,845.80
IV. Net profit (Net loss is listed with “-”) 850,223.93 -884,537.41
V. Earnings per share -- --
i. Basic earnings per share 0.003 -0.0031
ii. Diluted earnings per share 0.003 -0.0031
VII. Total comprehensive income 850,223.93 -884,537.41
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
5. Consolidated profit statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Total operating income 453,351,424.39 548,851,511.10
Including: Operating income 453,351,424.39 548,851,511.10
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 451,431,120.47 540,459,878.05
Including: Operating cost 394,291,567.27 482,023,944.27
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
Operating tax and extras 4,088,844.27 2,711,251.58
Sales expenses 7,298,539.82 6,031,250.42
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Administration expenses 29,738,810.28 33,493,693.05
Financial expenses 16,882,403.45 15,155,233.98
Losses of devaluation of asset -869,044.62 1,044,504.75
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profit (Loss is listed with “-”) 1,920,303.92 8,391,633.05
Add: Non-operating income 769,645.79 243,621.42
Less: Non-operating expense 2,051,124.98 100.00
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”) 638,824.73 8,635,154.47
Less: Income tax expense -169,257.95 2,343,559.45
V. Net profit (Net loss is listed with “-”) 808,082.68 6,291,595.02
Including: net profit realized before consolidation by mergered party
Net profit attributable to owner’s of parent company 808,082.68 6,291,595.02
Minority shareholders’ gains and losses
VI. Earnings per share -- --
i. Basic earnings per share 0.0029 0.0222
ii. Diluted earnings per share 0.0029 0.0222
VII. Other consolidated income
VIII. Total comprehensive income 808,082.68 6,291,595.02
Total consolidated income attributable to owners of parent company 808,082.68 6,291,595.02
Total consolidated income attributable to minority shareholders
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
6. Profit Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Items Amount in this period Amount in last period
I. Operating income 28,188,898.06 35,346,500.16
Less: operating cost 3,617,717.90 6,125,838.55
Operating tax and extras 1,944,199.86 2,266,625.70
Sales expenses 139,350.72 343,339.81
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Administration expenses 14,162,532.17 16,853,264.91
Financial expenses 6,368,749.34 7,194,485.17
Losses of devaluation of asset -869,044.62 845,974.14
Add: Changing income of fair value(Loss is listed with “-”)
Investment income (Loss is listed with “-”)
Including: Investment income on affiliated company and joint venture
II. Operating profit (Loss is listed with “-”) 2,825,392.69 1,716,971.88
Add: Non-operating income 59,614.30 176,779.00
Less: Non-operating expense 1,889,182.93 20.00
Including: Disposal loss of non-current asset
III. Total Profit (Loss is listed with “-”) 995,824.06 1,893,730.88
Less: Income tax expense -255,015.27 473,437.72
IV. Net profit (Net loss is listed with “-”) 1,250,839.33 1,420,293.16
V. Earnings per share -- --
i. Basic earnings per share 0.0044 0.005
ii. Diluted earnings per share 0.0044 0.005
VI. Other consolidated income
VII. Total comprehensive income 1,250,839.33 1,420,293.16
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
7. Consolidated Cash Flow Statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 379,887,983.19 538,698,589.71
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
Net increase of disposal of transaction financial asset
Cash received from interest, commission charge and commission
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Net increase of capital borrowed
Net increase of returned business capital
Write-back of tax received 3,999.97 16,867,799.10
Other cash received concerning operating activities 16,931,129.23 21,052,639.26
Subtotal of cash inflow arising from operating activities 396,823,112.39 576,619,028.07
Cash paid for purchasing commodities and receiving labor service 361,047,890.28 499,430,259.44
Net increase of customer loans and advances
Net increase of deposits in central bank and interbank
Cash paid for original insurance contract compensation
Cash paid for interest, commission charge and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff and workers 34,702,269.27 41,606,680.51
Taxes paid 13,523,680.36 12,000,269.53
Other cash paid concerning operating activities 27,525,035.79 30,501,140.60
Subtotal of cash outflow arising from operating activities 436,798,875.70 583,538,350.08
Net cash flows arising from operating activities -39,975,763.31 -6,919,322.01
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 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, intangible and other long-term assets 2,646,452.59 5,913,766.51
Cash paid for investment
Net increase of mortgaged loans
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 2,646,452.59 5,913,766.51
Net cash flows arising from investing activities -2,646,452.59 -5,913,766.51
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 372,867,761.34 217,256,454.05
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Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 372,867,761.34 217,256,454.05
Cash paid for settling debts 349,936,294.48 183,402,482.80
Cash paid for dividend and profit distributing or interest paying 15,568,339.32 15,046,917.51
Including: Dividend and profit of minority shareholder paid by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 365,504,633.80 198,449,400.31
Net cash flows arising from financing activities 7,363,127.54 18,807,053.74
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -3,616,808.99 -356,357.14
V. Net increase of cash and cash equivalents -38,875,897.35 5,617,608.08
Add: Balance of cash and cash equivalents at the period -begin 112,834,841.39 107,744,728.37
VI. Balance of cash and cash equivalents at the period -end 73,958,944.04 113,362,336.45
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
8. Cash Flow Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
Item Amount in this period Amount in last period
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 25,283,258.59 39,141,874.06
Write-back of tax received
Other cash received concerning operating activities 16,931,129.23 23,972,639.26
Subtotal of cash inflow arising from operating activities 42,214,387.82 63,114,513.32
Cash paid for purchasing commodities and receiving labor service 1,177,778.17 2,622,832.38
Cash paid to/for staff and workers 4,119,957.91 6,599,479.77
Taxes paid 4,649,927.63 4,771,631.99
Other cash paid concerning operating activities 52,107,150.17 31,224,332.23
Subtotal of cash outflow arising from operating activities 62,054,813.88 45,218,276.37
Net cash flows arising from operating activities -19,840,426.06 17,896,236.95
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 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, intangible and other long-term assets 1,067,935.00 2,380,515.96
20
Shenzhen Zhongheng Huafa Co., Ltd. THE THIRD QUARTERLY REPORT FOR 2013（Full-Text)
Cash paid for investment
Net cash received from subsidiaries and other units
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 1,067,935.00 2,380,515.96
Net cash flows arising from investing activities -1,067,935.00 -2,380,515.96
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 31,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 31,000,000.00
Cash paid for settling debts 2,797,500.00 18,345,600.00
Cash paid for dividend and profit distributing or interest paying 9,562,956.11 8,339,907.47
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 12,360,456.11 26,685,507.47
Net cash flows arising from financing activities 18,639,543.89 -26,685,507.47
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate -49,705.92 -12,287.82
V. Net increase of cash and cash equivalents -2,318,523.09 -11,182,074.30
Add: Balance of cash and cash equivalents at the period -begin 10,555,114.25 26,428,341.78
VI. Balance of cash and cash equivalents at the period -end 8,236,591.16 15,246,267.48
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
II. Audit Report
Whether the third quarter report was audited or not
□Yes √No
The third quarter report of the Company has not been audited
Board of Directors of
SHENZHEN ZHONGHENG HUAFA CO., LTD
28 October 2013
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