Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2015
(Full-Text)
October 2015
1
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(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.
2
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(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) 1,165,937,036.37 1,162,740,984.93 0.27%
Net assets attributable to
shareholders of listed company 301,345,822.75 281,351,269.74 7.11%
(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 of last year
Period-end of last year
Operating revenue (RMB) 140,688,910.96 -32.42% 389,423,540.82 -32.25%
Net profit attributable to
shareholders of the listed company 5,817,241.98 1,350.37% 19,994,553.01 1,918.23%
(RMB)
Net profit attributable to
shareholders of the listed company
-16,478,039.21 -2,339.06% -24,718,751.42 -6,891.25%
after deducting non-recurring gains
and losses(RMB)
Net cash flow arising from
-- -- 48,060,038.26 112.52%
operating activities(RMB)
Basic earnings per share
0.0205 1,381.25% 0.0706 1,917.14%
(RMB/Share)
Diluted earnings per share
0.0205 1,381.25% 0.0706 1,917.14%
(RMB/Share)
Weighted average ROE 1.95% 2.12 percent points up 6.86% 6.50 percent points up
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
9,774.76
write-off that accrued for impairment of assets)
3
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,691,800.00
national standards, which are closely relevant to enterprise’s
business)
Profit and loss of assets delegation on others’ investment or
42,833,333.35 Financial products revenue
management
Other non-operating income and expenditure except for the
691,049.85
aforementioned items
Other gains/losses qualify the definition of non-recurring gains
643.49
and losses
Less: impact on income tax 513,297.02
Total 44,713,304.43 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the
Period
1. Statement of the total common shareholders and shares-held of top ten common
shareholders at end of the Period
In Share
Total common shareholders in
23,813
reporting period
Shares-held of top ten common 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 Pledged 116,489,894
Zhongheng New
Domestic
Science &
non-state-owned 41.14% 116,489,894 116,489,894
Technology Frozen 0
legal person
Industrial Group
Co., Ltd.
SEG (HONG Overseas legal 5.85% 16,569,560 0 Pledged 0
4
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
KONG) CO., person
Frozen 0
LTD.
GOOD HOPE Pledged 0
CORNER Overseas legal
4.91% 13,900,000 0
INVESTMENTS person Frozen 0
LTD.
Domestic nature Pledged 0
Xu Xiaoyang 0.94% 2,650,000 0
person Frozen 0
Domestic nature Pledged 0
Xie Pin 0.65% 1,840,000 0
person Frozen 0
Domestic nature Pledged 0
Zhao Yuzhen 0.64% 1,803,899 0
person Frozen 0
Domestic nature Pledged 0
Xu Dongdong 0.51% 1,437,407 0
person Frozen 0
China Securities Pledged 0
Finance State-owned legal
0.47% 1,336,201 0
Corporation person Frozen 0
Limited
Domestic nature Pledged 0
Zhou Ningyan 0.42% 1,200,000 0
person Frozen 0
Domestic nature Pledged 0
Li Baoqin 0.38% 1,065,201 0
person Frozen 0
Particular about top ten common shareholders with un-restrict shares held
Type of shares
Shareholders Amount of un-restrict common shares held
Type Amount
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign
shares
Domestically
GOOD HOPE CORNER
13,900,000 listed foreign
INVESTMENTS LTD.
shares
RMB ordinary
Xu Xiaoyang 2,650,000
shares
RMB ordinary
Xie Pin 1,840,000
shares
RMB ordinary
Zhao Yuzhen 1,803,899
shares
5
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
RMB ordinary
Xu Dongdong 1,437,407
shares
China Securities Finance RMB ordinary
1,336,201
Corporation Limited shares
RMB ordinary
Zhou Ningyan 1,200,000
shares
Domestically
Li Baoqin 1,065,201 listed foreign
shares
Domestically
BINGHUA LIU 877,013 listed foreign
shares
Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial
Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs to
Explanation on associated
the consistent actor that are prescribed in Measures for the Administration of Disclosure of
relationship among the top ten Shareholder Equity Changes of Listed Companies. The Company neither knew whether there
exists associated relationship among the other tradable shareholders, nor they belong to
shareholders or consistent action
consistent actors that are prescribed in Measures for the Administration of Disclosure of
Shareholder Equity Changes of Listed Companies.
Explanation on shareholders
In top ten common shareholders, Zhou Ningyan holds 1,200,000 shares of the Company,
involving margin business about top
among which, 1,200,000 shares are held through the credit account, representing 100% of the
ten common shareholders (if
total shares held, and takes 0.42% of the total shares of the Company
applicable)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
□Yes √ No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in
reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings in Period-end
□Applicable √Not applicable
6
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
y-o-y
Item 2015-9-30 2015-1-1 changes Reasons
Notes discounted and endorsement transfer
Note receivable 55,113,728.36 100,821,063.85 -45.34% occurred in the period
Part of the account are collected ahead of time
Account receivable 168,692,114.88 112,425,468.57 50.05% at end of last year
1368.51
Account paid in advance 83,251,750.92 5,669,119.87 % Account paid in advance for display increased
Intercourse funds between the companies are
Other account receivable 10,292,326.04 109,094,812.29 -90.57% collected in the Period
Account received in Advances on sales for video communication
advance 1,946,781.97 727,331.06 167.66% increased
Part of the year-end performance issued in the
Wages payable 4,154,356.02 6,208,793.90 -33.09% Period
Jan. to Sept. y-o-y
Item Jan. to Sept. 2015 2014 changes Reasons
Operation revenue 389,423,540.82 574,799,097.22 -32.25% Orders in the Period declined
Operation costs 326,662,858.89 505,448,858.26 -35.37% Orders in the Period declined
Financial expenses 43,199,943.80 26,200,025.63 64.89% Interest of long-term loans increased
Assets impairment loss - -140,992.99 Impairment loss occurred in the Period
Gains from financial products received in the
Investment gains 42,833,976.84 - Period
Revenue from export subsidy received in the
Non-operation revenue 2,706,187.41 935,348.39 189.32% Period
Overdue fine for the import surcharge occurred
Non-operation cost 313,562.80 99,726.04 214.42% in the Period
Income tax expenses 79,073.46 -84.99% There were deferred income tax occurred last
7
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
526,828.04 period
Jan. to Sept. y-o-y
Item Jan. to Sept. 2015 2014 changes Reasons
Cash received relating to Intercourse funds between the companies are
other operating activities 104,728,770.98 12,388,222.70 745.39% collected
Cash paid for purchasing
goods, receiving labor Orders are declined in the Period, the materials
service 259,502,535.91 579,317,407.91 -55.21% purchasing decreased
Taxes paid 15,916,710.01 12,140,924.96 31.10% VAT and surcharge tax paid increased
Cash received from
investment 500,000,000.00 - Financial products redemption
Cash received from
investment gains 42,833,333.35 - Gains from financial products
Net cash received from
disposal of fixed assets,
intangible assets and other The account collected from fixed assets disposal
long-term assts 20,000.00 50,000.00 -60.00% decreased
Cash paid for purchasing
fixed assets, intangible
assets and other long-term
assts 14,542,977.61 3,188,200.00 356.15% Purchasing Xingfuhai Shops in the Period
Other cash payments
relating to investing The intercourse for Gongming transformation of
activities 500,099,356.51 - old urban are paid
Cash received from loans 273,598,564.67 889,576,740.81 -69.24% Long-term loans are borrow last period
Loans are paid to China Construction Bank last
Cash paid for debt payment 303,673,954.40 503,617,245.56 -39.70% period
Cash paid for distribution of
dividend, profit or interest
payment 39,318,168.08 23,616,708.26 66.48% Interest of long-term loans increased
Impact on cash or cash
equivalent from change of
foreign exchange 31,906.89 -1,762,391.19 101.81% Exchange rate fluctuation
II. Progress of significant events, their influences, and analysis and explanation of their
solutions
√ Applicable □Not applicable
8
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were
referred to in the announcement dated 30 April 2009), and the contract was executed well (details were set out in
the 2010 annual report). 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 and A627-007,
and the aggregate area was 48,200 sq.m)) were the lands listed in the first batch of plan for 2010 Shenzhen
urbanization unit planning preparation plan. For promotion of such urbanization project and joint cooperation, the
Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first
extraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the
“Motion on promoting and implementing the urban renewal project for the renewal units of Hwafa 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 in accordance with Shenzhen urban
renewal policies and regulations and the provision of relevant governmental departments 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 Company convened the 5th extraordinary board meeting for 2015 and the 2nd extraordinary general meeting
for 2015 on 15 June and 2 July 2015 respectively, to consider and approve the resolution on implementation of
urban refresh project of “refresh units in Huafa region, Gongming street, Guangming new district, Shenzhen” and
resolution on submit to the general shareholders meeting for authority grants to the Board in aspect of
implementation of urban refresh project of “refresh units in Huafa region, Gongming street, Guangming new
district, Shenzhen”. The Company and Shenzhen Qianhai Zhongzheng City Development Management Co., Ltd
(“Qianhai ZHongzheng”), Shenzhen Zhongzheng Yutian Real Estate Co., Ltd. (“Zhongzheng Yutian”) as well as
the Wuhan Zhongheng Group entered into the Cooperation Framework Agreement relating to Gongming Huafa
Refresh Project and Cooperation Framework Agreement relating to the urban refresh project of “refresh units in
Huafa region, Gongming street, Guangming new district, Shenzhen”, Cooperation Agreement relating to
Gongming Huafa Urban Refresh Project and Relocation Compensation Agreement relating to Gongming Huafa
Urban Refresh Project. The 7th meeting of 8th session of the Baord deliberated and approved the resolution of terminate a
contract of the urban refresh project of “refresh units in Huafa region, Gongming street, Guangming new district,
Shenzhen” by the Company and Shenzhen Qianhai Zhongzheng City Development Management Co., Ltd, and the
cooperation termination contract on the urban refresh project of Gongming Huafa are signed between the
Company, Qianhai Zhongzheng, Zhongzheng Yutian and Wuhan Zhongheng Group on 25 August 2015, the
agreement signed previously are terminated.
The 6th extraordinar meeting of the Board for 2015 deliberated and approved the resolution on implementation of urban
refresh project of “refresh units in Huafa region, Gongming street, Guangming new district, Shenzhen” and
progress of related transactions, on 26 August 2015, the Company entered into the Cooperation Agreement
relating to urban refresh project of “refresh units in Huafa region, Gongming street, Guangming new district,
Shenzhen”, Cooperation operation contract of the Huafa Industry zone old urban in Guangming New district,
9
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Gongming Street and agreement of house acquisition and relocation compensation with Wuhan Zhongheng New
Science and Technology Industrial Group Company (“Wuhan Zhongheng Group” for short), Shenzhen Vanke
Real estate Co., Ltd. (“Shenzhen Vanke”) and Shenzhen Vanke Guangming Real Estate Development Co., Ltd.
(“Vanke Gongming” for shrot).
(II) With purpose of further optimize the capital structure; improve financial status of the Company and providing
necessary capital condition and liquidity for the upgrade of industry business transformation, specialization of the
property operation and development of large-scale, the Company plans to private offering A-share. Controlling
shareholder - Wuhan Zhongheng New Technology Industry Group Co., Ltd. subscribe 87.6 million shares at most
in cash, fund raised no more than 599.184 million Yuan (issuance cost included) in total, the fund are raised for
debt payment and supplement current capital in order to laying a solid foundation of the sustainable development
of the Company. Relevant private placement of A-share has been deliberated and approved by third extraordinary
meeting of 2015 of the Board, and shall submit for approval by general meeting and implemented after verify by
CSRC, found more in notice released on Juchao Website (www.cninfo.com.cn) dated 20 March 2015 and 20 May
2015.
(III)Our controlling shareholder Wuhan Zhongheng Group handling pledge formality removal procedures on the
restricted shares of the Company 6,000,000 shares (takes 5.15% of the shares of the Company held, and takes
2.12% of the total share capital of the Company) on 8 September 2015 in CSDCC, and on 10 September 2015, the
6,000,000 shares pledged to Wuhan CITIC Bank and halding the registration procedures in CSDCC.
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
√ Applicable □Not applicable
Commit
Dated for Commitment
Commitments ment Contents Implementation
commitment term
party
Share Merger Reform N/A N/A
The Company held the 3rd meeting of the Board and the
3rd meeting of supervisors respectively on 18 April
Within 1 year after
2014 to consider and approve the resolution on change
Wuhan transferred of this
of assets injection commitment from controlling
Zhonghe equity acquisition: 1.
shareholder, pursuant to which, our controlling
ng New Injected relevant From 4
shareholder Wuhan Zhongheng Group’s proposal on its
Commitments in Science capital of plastic December 2007
commitment change plan relating to that “within a year
report of & injection business into to 4 November
2007-03-29 commencing from the date when it is approved at
acquisition or equity Technol the Company; 2.70% 2008; From 13
general meeting, Wuhan Zhongheng Group will sell the
change ogy equity of the May 2014 to 12
street shops in the first floor of phase I of“Yutian
Industria Hengsheng May 2015
Happiness Sea” Project to the Company in cash ”was
l Group Photoelectricity will
approved. The above commitment change plan has been
Co., Ltd. inject into the
considered and approved at the 2013 annual general
Company.
meeting held on 13 May 2014. During the reporting
period, our wholly-owned subsidiary Hengfa Science
10
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
and Technology signed property purchase and sale
contract with Wuhan New East (the wholly-owned
subsidiary of Wuhan Zhongheng Group). According to
consideration at the 2nd extraordinary board meeting for
2015, the Company has finished property transfer
registration for No. 1# and 2# properties, and will
complete property transfer registration for No. 6# and
7# properties by 16 March 2016.
Commitments in
N/A N/A
assets reorganization
Commitments in
initial public offering N/A N/A
or refinancing
Other commitments to
minority shareholders N/A N/A
of the Company
Completed on time or
Yes
not
IV. Estimation of operation performance for year of 2015
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
V. Particular about security investment
□ Applicable √ Not applicable
The Company had no security investment in Period.
VI. Explanation on equity of other listed company held
□ Applicable √ Not applicable
No security investment in Period.
VII. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.
VIII. Registration form of receiving research, communication and interview in the report
period
√ Applicable □Not applicable
11
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Content discussed and documents
Date Place Way Type Object
provided
Operation situation of the
From July to The company's Individual Company, assets status, process of
Telephone Personal
September in 2015 headquarters investors city update projects and private
placement
12
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2015-09-30
In RMB
Items Balance at period-end Balance at period-begin
Current assets:
Monetary funds 34,340,212.39 28,819,357.68
Settlement provisions
Capital lent
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable 55,113,728.36 100,821,063.85
Accounts receivable 168,692,114.88 112,425,468.57
Accounts paid in advance 83,251,750.92 5,669,119.87
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Interest receivable
Dividend receivable
Other receivables 10,292,326.04 109,094,812.29
Purchase restituted finance asset
Inventories 36,344,341.38 30,880,050.55
Divided into assets held for sale
Non-current asset due within one year
Other current assets 500,000,000.00 500,000,000.00
Total current assets 888,034,473.97 887,709,872.81
Non-current assets:
Loans and payments on behalf
13
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Finance asset available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment
Investment property 30,333,595.93 31,274,663.74
Fixed assets 191,145,414.53 186,438,814.34
Construction in progress 3,133,170.00 2,853,356.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 46,745,964.17 47,866,685.21
Expense on Research and
Development
Goodwill
Long-term expenses to be apportioned 292,483.18 345,658.24
Deferred income tax asset 6,251,934.59 6,251,934.59
Other non-current asset
Total non-current asset 277,902,562.40 275,031,112.12
Total assets 1,165,937,036.37 1,162,740,984.93
Current liabilities:
Short-term loans 132,564,385.39 138,114,376.32
Loan from central bank
Absorbing deposit and interbank
deposit
Capital borrowed
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable 44,231,056.77 39,994,397.62
Accounts payable 70,505,730.49 65,547,836.32
Accounts received in advance 1,946,781.97 727,331.06
Selling financial asset of repurchase
Commission charge and commission
payable
Wage payable 4,154,356.02 6,208,793.90
14
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Taxes payable 15,510,838.07 18,552,046.85
Interest payable
Dividend payable
Other accounts payable 30,412,481.10 24,179,349.31
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 299,325,629.81 293,324,131.38
Non-current liabilities:
Long-term loans 562,500,000.00 585,300,000.00
Bonds payable
Including: preferred stock
Perpetual capital securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities 2,765,583.81 2,765,583.81
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 565,265,583.81 588,065,583.81
Total liabilities 864,591,213.62 881,389,715.19
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 109,496,837.33 109,496,837.33
Less: Inventory shares
Other comprehensive income
15
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -168,703,834.83 -188,698,387.84
Total owner’s equity attributable to parent
301,345,822.75 281,351,269.74
company
Minority interests
Total owner’s equity 301,345,822.75 281,351,269.74
Total liabilities and owner’s equity 1,165,937,036.37 1,162,740,984.93
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
In RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 11,298,889.64 14,802,258.59
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes receivable
Accounts receivable 1,760,172.07 1,857,222.07
Account paid in advance 1,005,472.83
Interest receivable
Dividends receivable
Other receivables 74,239,891.02 106,214,702.41
Inventories 14,806.50 14,806.50
Divided into assets held for sale
Non-current assets maturing within
one year
Other current assets 500,000,000.00 500,000,000.00
Total current assets 587,313,759.23 623,894,462.40
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investments
Long-term receivables
16
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Long-term equity investments 186,608,900.00 187,608,900.00
Investment property 30,333,595.93 31,274,663.74
Fixed assets 96,856,764.14 100,029,320.14
Construction in progress 3,093,170.00 2,853,356.00
Project materials
Disposal of fixed assets
Productive biological assets
Oil and natural gas assets
Intangible assets 5,169,728.55 5,278,437.84
Research and development costs
Goodwill
Long-term deferred expenses 254,166.64 291,666.67
Deferred income tax assets 7,056,901.94 7,056,901.94
Other non-current assets
Total non-current assets 329,373,227.20 334,393,246.33
Total assets 916,686,986.43 958,287,708.73
Current liabilities:
Short-term borrowings 19,700,000.00 20,000,000.00
Financial liability measured by fair
value and with variation reckoned into
current gains/losses
Derivative financial liability
Notes payable
Accounts payable 9,740,367.33 10,745,840.16
Accounts received in advance 443,799.24 420,611.24
Wage payable 774,746.66 724,418.36
Taxes payable 10,798,026.89 11,286,781.44
Interest payable
Dividend payable
Other accounts payable 20,344,267.68 56,873,489.93
Divided into liability held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 61,801,207.80 100,051,141.13
17
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Non-current liabilities:
Long-term loans 562,500,000.00 585,300,000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Long-term account payable
Long-term wages payable
Special accounts payable
Projected liabilities 2,765,583.81 2,765,583.81
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 565,265,583.81 588,065,583.81
Total liabilities 627,066,791.61 688,116,724.94
Owners’ equity:
Share capita 283,161,227.00 283,161,227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 109,496,837.33 109,496,837.33
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -180,429,462.76 -199,878,673.79
Total owner’s equity 289,620,194.82 270,170,983.79
Total liabilities and owner’s equity 916,686,986.43 958,287,708.73
3. Consolidated Profit Statement (this report period)
In RMB
Item Current Period Last Period
I. Total operating income 140,688,910.96 208,177,270.86
Including: Operating income 140,688,910.96 208,177,270.86
18
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 149,315,806.90 209,036,915.32
Including: Operating cost 119,199,333.52 178,527,255.38
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 1,242,893.86 1,376,240.31
Sales expenses 2,490,619.26 3,140,144.67
Administration expenses 13,576,215.13 10,002,764.59
Financial expenses 12,806,745.13 15,990,510.37
Losses of devaluation of asset
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed
13,333,333.37
with “-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is listed with
4,706,437.43 -859,644.46
“-”)
Add: Non-operating income 1,899,133.76 282,665.42
Including: Disposal gains of
9,774.76 0.00
non-current asset
Less: Non-operating expense 383.84 2,201.80
Including: Disposal loss of
0.00
non-current asset
19
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
IV. Total Profit (Loss is listed with “-”) 6,605,187.35 -579,180.84
Less: Income tax expense 787,945.37 -113,939.91
V. Net profit (Net loss is listed with “-”) 5,817,241.98 -465,240.93
Net profit attributable to owner’s of
5,817,241.98 -465,240.93
parent company
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 as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
20
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
5. Translation differences
arising on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 5,817,241.98 -465,240.93
Total comprehensive income
5,817,241.98 -465,240.93
attributable to owners of parent Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0205 -0.0016
(ii) Diluted earnings per share 0.0205 -0.0016
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of parent company (this report period)
In RMB
Item Current Period Last Period
I. Operating income 14,889,810.19 15,724,379.84
Less: Operating cost 3,566,116.87 2,640,562.98
Operating tax and extras 906,526.38 930,324.67
Sales expenses
Administration expenses 8,513,341.41 4,714,135.33
Financial expenses 12,100,843.00 13,235,797.59
Losses of devaluation of asset
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
13,333,333.37
listed with “-”)
Including: Investment income
on affiliated company and joint venture
II. Operating profit (Loss is listed
3,136,315.90 -5,796,440.73
with “-”)
Add: Non-operating income 183,848.00 67,808.00
21
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Including: Disposal gains of
non-current asset
Less: Non-operating expense 0.00
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
3,320,163.90 -5,728,632.73
“-”)
Less: Income tax expense
IV. Net profit (Net loss is listed with
3,320,163.90 -5,728,632.73
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
22
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
VI. Total comprehensive income 3,320,163.90 -5,728,632.73
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated profit statement (from year-begin to end of this period)
In RMB
Item Current Period Last Period
I. Total operating income 389,423,540.82 574,799,097.22
Including: Operating income 389,423,540.82 574,799,097.22
Interest income
Insurance gained
Commission charge and commission
income
II. Total operating cost 414,576,515.80 574,117,195.53
Including: Operating cost 326,662,858.89 505,448,858.26
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 4,920,188.37 4,381,764.40
Sales expenses 7,622,389.84 8,704,843.81
Administration expenses 32,171,134.90 29,522,696.42
Financial expenses 43,199,943.80 26,200,025.63
Losses of devaluation of asset -140,992.99
23
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is listed
42,833,976.84
with “-”)
Including: Investment income on
affiliated company and joint venture
Exchange income (Loss is listed
with “-”)
III. Operating profit (Loss is listed with
17,681,001.86 681,901.69
“-”)
Add: Non-operating income 2,706,187.41 935,348.39
Including: Disposal gains of
9,774.76 161,398.90
non-current asset
Less: Non-operating expense 313,562.80 99,726.04
Including: Disposal loss of
106,623.72
non-current asset
IV. Total Profit (Loss is listed with “-”) 20,073,626.47 1,517,524.04
Less: Income tax expense 79,073.46 526,828.04
V. Net profit (Net loss is listed with “-”) 19,994,553.01 990,696.00
Net profit attributable to owner’s of
19,994,553.01 990,696.00
parent company
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 as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method which
will not be reclassified subsequently to
profit and loss
24
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method which
will be reclassified subsequently to profit
or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale financial
assets
4. The effect hedging portion
of gains or losses arising from cash flow
hedging instruments
5. Translation differences
arising on translation of foreign currency
financial statements
6. Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 19,994,553.01 990,696.00
Total comprehensive income
19,994,553.01 990,696.00
attributable to owners of parent Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0706 0.0035
(ii) Diluted earnings per share 0.0706 0.0035
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and
realized 0 Yuan at last period for combined party
6. Profit Statement of parent company (from year-begin to end of this period)
In RMB
Item Current Period Last Period
25
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
I. Operating income 41,050,984.15 35,414,915.54
Less: Operating cost 6,822,404.01 5,996,505.98
Operating tax and extras 2,561,910.04 2,256,699.79
Sales expenses 0.00
Administration expenses 17,731,451.25 15,339,318.20
Financial expenses 37,658,777.72 18,519,254.38
Losses of devaluation of asset 168,721.11
Add: Changing income of fair
value(Loss is listed with “-”)
Investment income (Loss is
42,833,333.35
listed with “-”)
Including: Investment income
on affiliated company and joint venture
II. Operating profit (Loss is listed
19,109,774.48 -6,865,583.92
with “-”)
Add: Non-operating income 341,154.00 156,141.00
Including: Disposal gains of
non-current asset
Less: Non-operating expense 1,717.45
Including: Disposal loss of
non-current asset
III. Total Profit (Loss is listed with
19,449,211.03 -6,709,442.92
“-”)
Less: Income tax expense -42,180.28
IV. Net profit (Net loss is listed with
19,449,211.03 -6,667,262.64
“-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1. Changes as a result of
re-measurement of net defined benefit
plan liability or asset
2. Share of the other
comprehensive income of the investee
accounted for using equity method
which will not be reclassified
26
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
subsequently to profit and loss
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1. Share of the other
comprehensive income of the investee
accounted for using equity method
which will be reclassified subsequently
to profit or loss
2. Gains or losses arising
from changes in fair value of
available-for-sale financial assets
3. Gains or losses arising
from reclassification of held-to-maturity
investment as available-for-sale
financial assets
4. The effect hedging
portion of gains or losses arising from
cash flow hedging instruments
5. Translation differences
arising on translation of foreign
currency financial statements
6. Other
VI. Total comprehensive income 19,449,211.03 -6,667,262.64
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
7. Consolidated Cash Flow Statement (from year-begin to end of this period)
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 287,471,957.64 254,875,585.83
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
27
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
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 amount from
disposal financial assets that measured
by fair value and with variation
reckoned into current gains/losses
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Write-back of tax received
Other cash received concerning
104,728,770.98 12,388,222.70
operating activities
Subtotal of cash inflow arising from
392,200,728.62 267,263,808.53
operating activities
Cash paid for purchasing
commodities and receiving labor 259,502,535.91 579,317,407.91
service
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 46,694,148.75 42,001,233.83
Taxes paid 15,916,710.01 12,140,924.96
Other cash paid concerning 22,027,295.69 17,724,030.15
28
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
operating activities
Subtotal of cash outflow arising from
344,140,690.36 651,183,596.85
operating activities
Net cash flows arising from operating
48,060,038.26 -383,919,788.32
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
500,000,000.00
investment
Cash received from investment
42,833,333.35
income
Net cash received from disposal of
fixed, intangible and other long-term 20,000.00 50,000.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Subtotal of cash inflow from investing
542,853,333.35 50,000.00
activities
Cash paid for purchasing fixed,
14,542,977.61 3,188,200.00
intangible and other long-term assets
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
500,099,356.51
investing activities
Subtotal of cash outflow from investing
514,642,334.12 3,188,200.00
activities
Net cash flows arising from investing
28,210,999.23 -3,138,200.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
29
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Cash received from loans 273,598,564.67 889,576,740.81
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
273,598,564.67 889,576,740.81
activities
Cash paid for settling debts 303,673,954.40 503,617,245.56
Cash paid for dividend and profit
39,318,168.08 23,616,708.26
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
342,992,122.48 527,233,953.82
activities
Net cash flows arising from financing
-69,393,557.81 362,342,786.99
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 31,906.89 -1,762,391.19
exchange rate
V. Net increase of cash and cash
6,909,386.57 -26,477,592.52
equivalents
Add: Balance of cash and cash
22,392,147.12 50,704,319.86
equivalents at the period -begin
VI. Balance of cash and cash
29,301,533.69 24,226,727.34
equivalents at the period -end
8. Cash Flow Statement of parent company (from year-begin to end of this period)
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
46,388,625.03 32,446,311.37
commodities and providing labor services
Write-back of tax received
Other cash received concerning
29,730,709.64 59,702,045.41
operating activities
30
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Subtotal of cash inflow arising from
76,119,334.67 92,148,356.78
operating activities
Cash paid for purchasing commodities
and receiving labor service
Cash paid to/for staff and workers 4,384,404.98 3,819,398.87
Taxes paid 4,846,872.57 4,308,884.22
Other cash paid concerning operating
54,909,468.68 494,106,065.77
activities
Subtotal of cash outflow arising from
64,140,746.23 502,234,348.86
operating activities
Net cash flows arising from operating
11,978,588.44 -410,085,992.08
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
500,000,000.00
investment
Cash received from investment income 42,833,333.35
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
0.00
investing activities
Subtotal of cash inflow from investing
542,833,333.35
activities
Cash paid for purchasing fixed,
29,899.00 882,600.00
intangible and other long-term assets
Cash paid for investment 1,000,000.00
Net cash received from subsidiaries
and other units
Other cash paid concerning investing
500,000,000.00
activities
Subtotal of cash outflow from investing
500,029,899.00 1,882,600.00
activities
Net cash flows arising from investing
42,803,434.35 -1,882,600.00
activities
III. Cash flows arising from financing
activities
31
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2015(Full-Text)
Cash received from absorbing
investment
Cash received from loans 14,700,000.00 627,000,000.00
Cash received from issuing bonds
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
14,700,000.00 627,000,000.00
activities
Cash paid for settling debts 37,800,000.00 201,890,800.00
Cash paid for dividend and profit
35,196,829.31 20,312,256.75
distributing or interest paying
Other cash paid concerning financing
activities
Subtotal of cash outflow from financing
72,996,829.31 222,203,056.75
activities
Net cash flows arising from financing
-58,296,829.31 404,796,943.25
activities
IV. Influence on cash and cash equivalents
11,437.57 12,867.32
due to fluctuation in exchange rate
V. Net increase of cash and cash equivalents -3,503,368.95 -7,158,781.51
Add: Balance of cash and cash
14,802,258.59 18,575,925.94
equivalents at the period -begin
VI. Balance of cash and cash equivalents at
11,298,889.64 11,417,144.43
the period -end
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.
27 October 2015
32
