深圳中恒华发股份有限公司 2016 年年度报告摘要
Stock Code: 000020 200020 Public Notice No.:2017-09
Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA- B
Shenzhen Zhongheng Huafa Co., Ltd.
Summary of Annual Report 2016
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future
development plan of the Company; investors should found in the full-text of annual report that published on media appointed by
CSRC.
Objection statement of directors, supervisors and senior executives
Name Position Content and reason
Statement
Other directors attending the Meeting for annual report deliberation except for the followed
Name of director absent Title for absent director Reasons for absent Attorney
Xu jinwen Independent director - Li Ding’an
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting
period
□ Applicable √ Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Basic information of the company
1. Company profile
Short form of the stock Shen Hwafa A, Shen Hwafa B Stock code 000020, 200020
Stock exchange for listing Shenzhen Stock Exchange
Person/Way to contact Secretary of the Board Rep. of security affairs
Name Yang Bin Niu Yuxiang
33/F, No. 2 Building of Dachong Business 33/F, No. 2 Building of Dachong Business
Office add.
Center, Nanshan District, Shenzhen Center, Nanshan District, Shenzhen
Fax. 0755-86360206 0755-86360206
Tel. 0755-86360220 0755-86360201
E-mail hwafainvestor@126.com.cn hwafainvestor@126.com.cn
2. Main business or product introduction in the reporting period
After years of development, the company has gradually formed two main businesses in industry and property management. Among
them, the industrial business mainly includes injection molding, foam pieces (light-weight packaging materials), and complete
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深圳中恒华发股份有限公司 2016 年年度报告摘要
machine production and sales of liquid crystal display, property management business is mainly the lease of its own property.
The company's industrial business mainly provides auxiliary products and services for the home appliance industry. With the
acceleration of new urbanization process in China and upgrading and updating of household appliance consumption, the home
appliance industry will continue to maintain a relatively fast growth; the development of home appliances and other downstream
industries provides broad markets for the upstream auxiliary products. By virtue of years of industry resources and technology
accumulation, the company conforms to the market demand and optimizes the product structure and performance, and the company's
products and services have accepted by the downstream manufacturers such as Gree, Haier, TCL, etc. and possess certain
competitiveness in the industry. But it also should be noted that the current injection molding, foam pieces and liquid crystal display
business are facing fierce market competition and cost pressures, profitability of industry business weaker than expected, the
company needs to further enhance the level of research and development, develop new products, expand downstream channels and
cultivate its own brand so as to further enhance the profitability in industrial business.
On the other hand, the transformation and upgrading and profitability of industrial business are weaker than expectation in recent
years, under this circumstance, the company has actively developed the property management business, liquidized the remnant assets,
and carried out the decoration and investment promotion of its own property Huafa Building, the property management business has
made good profits for the company and became an important strategic business of the company.
3. Main accounting data and financial indexes
(I) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
In RMB
Changes over
2015 2014
last year
2016
Pre-adjustme Post-adjustm Post-adjustm Pre-adjustme Post-adjustm
nt ent ent nt ent
Operating income 619,167,770. 499,455,781. 499,455,781. 694,839,760. 694,839,760.
23.97%
74 11 11 10 10
Net profit attributable to
shareholders of the listed -6,731,513.1 -4,200,845.6
5,457,710.33 - 7,687,620.27 7,687,620.27
1 1
company
Net profit attributable to
shareholders of the listed
company after deducting -31,741,774. -29,211,107.
5,109,926.82 - 2,322,082.33 2,322,082.33
80 30
non-recurring gains and
losses
Net cash flow arising from
-18,693,296. 173,486,015. 173,486,015. 119,492,159. 119,492,159.
-110.78%
operating activities 58 99 99 01 01
Basic earnings per share
0.0193 -0.0238 -0.0148 - 0.0271 0.0271
(RMB/Share)
Diluted earnings per share
0.0193 -0.0238 -0.0148 - 0.0271 0.0271
(RMB/Share)
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深圳中恒华发股份有限公司 2016 年年度报告摘要
Weighted average ROE 1.72% -2.27% -1.50% 3.22% 2.77% 2.77%
Changes over
End of 2015 end of last End of 2014
End of 2016 year
Pre-adjustme Post-adjustm Post-adjustm Pre-adjustme Post-adjustm
nt ent ent nt ent
Total assets 632,475,542. 1,155,089,23 1,154,989,59 1,162,740,98 1,162,740,98
-45.24%
40 6.67 3.34 4.93 4.93
Net assets attributable to
shareholder of listed 319,698,568. 311,406,562. 313,937,229. 281,351,269. 281,351,269.
1.84%
63 20 70 74 74
company
The reasons for the changes in accounting policies and the correction of accounting errors
1. The company mistakenly disbursed cash deposit from the rent of 2015, which was corrected and adjusted to administration
expenses and rental fees, increased the administration expenses of 2015 by RMB 99,643.33, and reduced other receivables by RMB
99,643.33.
2. The company collected the financing income of T2 class trust units in trust plan of 2015 CITIC QianjingGreen Xingcheng
investment funds and accrued the business tax and additional tax which were identified not belonging to the business tax scope and
were corrected and returned back, reduced taxes and additional of 2015 by RMB 3,473,866.67, and reduced tax payable (business tax,
urban maintenance and construction tax, education surcharge, local education surcharge) by RMB 3,473,866.67.
3. The correction of above two items made impacts on the income tax and undistributed profits, increased income tax expenses by
RMB 843,555.84, increased tax payable (corporate income tax) by RMB 843,555.84, and increased undistributed profit by RMB
2,530,667.50.
(2) Quarterly main financial index
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 137,699,187.33 171,839,338.23 147,394,897.89 162,234,347.29
Net profit attributable to
shareholders of the listed 469,935.69 6,803,020.53 -2,763,587.66 948,341.77
company
Net profit attributable to
shareholders of the listed
137,244.07 6,045,229.45 -3,187,589.84 2,365,523.69
company after deducting
non-recurring gains and losses
Net cash flow arising from
-46,008,442.75 20,584,093.18 -45,645,033.67 52,376,086.66
operating activities
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial
index disclosed in the company’s quarterly report and semi-annual report
□Yes √ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered
and top ten shareholders
In Share
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深圳中恒华发股份有限公司 2016 年年度报告摘要
Total
Total common preference Total preference
Total
stock shareholders shareholders with
common
shareholders at with voting voting rights
stock
27,759 end of last 23,293 rights 0 recovered at end 0
shareholders
month before recovered at of last month
in reporting
annual report end of before annual
period-end
disclosed reporting report disclosed
period
Top ten shareholders
Number of shares
Nature of Amount
Full name of Proportion of pledged/frozen
shareholde of shares Amount of restricted shares held
Shareholders shares held State of
r held Amount
share
Domestic Pledged 116,100,000
Wuhan non-state-
116,489,8
Zhongheng owned 41.14% 0
94 Frozen 116,489,894
Group legal
person
SEG (HONG Overseas Pledged 0
16,569,56
KONG) CO., legal 5.85% 0
0 Frozen 0
LTD. person
GOOD HOPE Pledged 0
Overseas
CORNER 12,700,00
legal 4.49% 0
INVESTMEN 0 Frozen 0
person
TS LTD
Changjiang Pledged 0
Securities Overseas
Brokerage legal 1.89% 5,355,249 0
Frozen 0
(Hongkong) person
Co., Ltd.
Domestic Pledged 0
Xu Dongdong nature 0.60% 1,690,307 0
Frozen 0
person
Domestic Pledged 0
Zhong
nature 0.44% 1,244,440 0
Jiachao Frozen 0
person
Domestic Pledged 0
Huang
nature 0.41% 1,174,566 0
Shuqiang Frozen 0
person
BINGHUA Overseas 0.30% 840,113 0 Pledged 0
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深圳中恒华发股份有限公司 2016 年年度报告摘要
LIU nature
Frozen 0
person
Domestic Pledged 0
Zhu Xionghui nature 0.23% 661,780 0
Frozen 0
person
Domestic Pledged 0
Huang
nature 0.23% 656,500 0
Qingpeng Frozen 0
person
Among the top ten shareholders, Wuhan Zhongheng Group neither bears associated relationship
with other shareholders, nor belongs to the consistent actor that are prescribed in Measures for the
Explanation on associated
Administration of Disclosure of Shareholder Equity Changes of Listed Companies. The Company
relationship among the
neither knew whether there exists associated relationship among the other tradable shareholders,
aforesaid shareholders
nor they belong to consistent actors that are prescribed in Measures for the Administration of
Disclosure of Shareholder Equity Changes of Listed Companies.
Explanation on involving
margin business (if N/A
applicable)
(2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with
preferred stock held
□ Applicable √ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the
Company is as follows:
Li Zhongqiu
99%
Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd
41.14%
Shenzhen Zhongheng Huafa Co., Ltd.
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at
maturity on the approval date for annual report disclosed
No
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深圳中恒华发股份有限公司 2016 年年度报告摘要
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In 2016, China's economy has shown a steady operation trend as a whole, the home-appliance industry has increased, but lacked
motivation, as an industrial manufacturing enterprise providing supporting products and services for home appliance industry, the
Company actively adapted to the national economic policies and industry changes, solved difficulties and problems, positively
responded, and turned the losses into gains. In 2016, the company achieved operating income of 619,167,800 Yuan, an increase of
23.97% compared with the same period of last year; net profit of5,457,700 Yuan, and turned the losses into gains.
● Injection molding business achieved annual operating income of 188,550,900 Yuan, a decrease of 2.24 % compared with the same
period of last year. When the overall market had a poor performance, the injection molding division focused on maintaining customer
relationships, and enhanced the customer share by strategy adjustment; strengthened the fine management, improved product quality,
developed effective quality corrective measures, strictly controlled the quality, and maintained a good quality and reputation; after
introducing some advanced production equipment, once again updated some old injection molding machines, further implemented
the automation improvement and process optimization progress, reduced human input and waste of production materials, and
improved production efficiency; at the same time, strengthened the internal management, introduced the competition mechanism,
paid attention to staff training, improved staff quality, practically completed the staff logistics services, and enhanced the company's
cohesive force and centripetal force.
● Polystyrene business achieved annual operating income of 68,514,600 Yuan, a decrease of 11.87% compared with the same period
of last year. Faced with the rise in raw material prices, increase of human resource costs, decline in sales prices, and fierce
competition in the market, the polystyrene business division adhered to taking market demand as the guiding, and continued to
expand the market share by adjusting the product structure; while focused on improving the product quality and reducing the raw
material loss, and formed its own unique competitive advantages. However, due to the intensifying market competition, rising
production costs, and declining product prices, the profit margins reduced. In the future, the company shall take the thought of
promoting development by innovation, and further improve the market competitiveness and expand the market shares by
technological innovation, market innovation, resource utilization innovation, management innovation and product optimization.
● LCD business achieved annual operating income of 312,991,900 Yuan, an increase of67.52% compared with the same period of
last year. During the reporting period, the video division continued to invest more energies in the design and development of new
products, newly increased various sizes of LCD new series with more cost advantages and realized mass production, developed from
the traditional structure to ultra-thin, ultra-narrow and larger sized curve LCDs. The video division focused on product innovation,
developed from the single product sizes to multi-series and multi-sizes product line, and has LIF series, G series, FIM series, C350
curve series products with completely independent designs and tooling; in the second half year of 2016, the company successfully
introduced the new customer, Taiwan brand “ACER”, which has developed into four major customers, including the existing
customer base (AOC system), American brand Viewsonic , Taiwan brand (ACER), and its own brand (HSO); realized the
globalization of sales area, and the products produced by our company spread over our country, Asia-Pacific, Europe, North America
and other regions; at the same time, increased the e-commerce sales channels, and achieved steady growth in sales revenue.
● Property leasing business has realized an annual operation revenue of 39,501,900 Yuan, a decrease of 18.72% compared with the
same period of last year. Most sites of the company’s own property Huafa Building have signed the lease, shops have opened one
after another, the sites in idle have substantially reduced, and the average rental price has increased in some extent than the past, but
the company's own property Gongming Huafa Electronic City has entered the demolition stage of updating and reconstruction,
lessees have continued to remove and the rental income has relatively reduced, therefore, the company’s overall rental income of
2016 is lower that the previous years.
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深圳中恒华发股份有限公司 2016 年年度报告摘要
2. Whether the main business had major change in the reporting period
□ Yes √ No
3. About the industries, products, or regions accounting for over 10% of the company’s operating income
or operating profit
√Applicable □Not applicable
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operating Operating Gross profit se of gross
Name se of operating se of operating
revenue profit ratio profit ratio
revenue y-o-y profit y-o-y
y-o-y
Display 312,991,895.11 5,690,315.97 5.22% 67.52% 525.93% -1.05%
Plastic
injection 188,550,863.79 2,254,775.86 11.01% -2.24% 1,300.01% 2.80%
hardware
Foam 68,514,616.64 344,665.28 12.02% 11.87% 5,292.53% 2.20%
4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes √ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit
attributable to common stock shareholders of listed company or composing the previous reporting period
□ Applicable √ Not applicable
6. Particular about suspended and delisting
□ Applicable √ Not applicable
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method
compared with the financial report of last year
√Applicable □ Not applicable
1. Explanation on accounting policy changes
According to the Provisions Concerning the Accounting Treatments on VAT Cai Kuai [2016] No.22 issued by Ministry of Finance
on 3 December 2016, relevant business occurred since 1 May 2016 will act by new rules, main influence of the Company for
implementation are as:
Content and reasons for changes Itesm and amount affected
The “business tax and surcharge” listed in consolidate business tax and surcharge
profit statement and parent company’s profit statement will administrative expenses
adjusted as “taxes and surcharge”
The follow taxes (house duty, land use tax, stamp tax, Tax and surcharge in consolidate profit statement increased
vehicle and vessel tax and resource tax etc.) arising from 2,664,333.31 Yuan for the Year;
operation activities will listed under “taxes and surcharge” Administrative expenses in consolidate profit statement
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深圳中恒华发股份有限公司 2016 年年度报告摘要
from” administrative expenses” since 1 May 2016. the decreased 2,664,333.31 Yuan for the Year;
taxes occurred before 1 May 2016 will not adjusted and Tax and surcharge in parent company’s profit statement
comparative data either increased 1,293,535.18 Yuan for the Year;
Administrative expenses in parent company’s profit statement
decreased 1,293,535.18 Yuan for the Year;
(2) Major accounting errors within reporting period that needs retrospective restatement
√Applicable □ Not applicable
1. Preliminary accounting errors
(1) Retrospective restatement
Contenet Items of comparison period affected Cumulative effects
The rental for year of 2015 was mis-listed as cash Administrative expenses 99,643.33
deposit as collateral, and adjsuted to administrative Other account receivable -99,643.33
expenses as rental charge
The company collected the financing income of T2 Business tax and surcharge -3,473,866.67
class trust units in trust plan of 2015 CITIC Taxes payable – business tax -3,101,666.67
QianjingGreen Xingcheng investment funds and Taxes payable – urban maintenance & -217,116.67
accrued the business tax and additional tax which construction tax
were identified not belonging to the business tax
Taxes payable – extra charges of -93,050.00
scope and were corrected and returned back
education funds
Taxes payable – local education surcharge -62,033.33
The correction above mentioned have impact on Income tax expenses 843,555.84
income tax and retained profit of the Company Taxes payable- enterprise income tax 843,555.84
Retained profit 2,530,667.50
(3) Compare with last year’s financial report; explain changes in consolidation statement’s scope
□ Applicable √ Not applicable
No changes in consolidation statement’s scope for the Company in the period.
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