SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
SHENZHEN ZHONGHENG HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2020
August 2020
1
SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, the directors, supervisors and
senior executives (excluding the follow who has objection statement) of
Shenzhen Zhongheng HUAFA Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are no any fictitious statements, misleading statements,
or important omissions carried in this semi-annual report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion
of the whole contents.
Li Zhongqiu, Principal of the Company, Yang Bin, person in charger of
accounting works and Wu Ai’jie, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of 2020
Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
Concerning the forward-looking statements with future planning involved in the
Report, they do not constitute a substantial commitment for investors. Majority
investors are advised to exercise caution of investment risks.
Risks factors are being well-described in the Report, found more in risks factors
and countermeasures disclosed in Prospects for Future Development of the
Board of Directors’ Report.
The Company has no plan of cash dividends carried out, bonus issued and
capitalizing of common reserves either.
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SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Contents
Semi-annual Report 2020 ................................................................................................................ 1
Section I Important Notice, Contents and Interpretation .............................................................. 2
Section II Company Profile and Main Financial Indexes .............................................................. 5
Section III Summary of Company Business .................................................................................... 8
Section IV Discussion and Analysis of Operation ........................................................................... 9
Section V Important Events ............................................................................................................ 18
Section VI Changes in shares and particular about shareholders ............................................. 36
Section VII Preferred Stock ............................................................................................................ 40
Section VIII Convertible Bonds .................................................................................................... 41
Section IX Particulars about Directors, Supervisors and Senior Executives ............................ 42
Section X Corporate Bonds ........................................................................................................... 43
Section XI Financial Report ............................................................................................................ 44
Section XII Documents Available for Reference ........................................................................ 151
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SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Interpretation
Items Refers to Contents
Company, Shen HUAFA Refers to SHENZHEN ZHONGHENG HUAFA CO., LTD.
Hengfa Technology Refers to Wuhan Hengfa Technology Co., Ltd.
HUAFA Property Refers to Shenzhen Zhongheng HUAFA Property Co., Ltd
HUAFA Lease Refers to Shenzhen HUAFA Property Lease Management Co., Ltd
HUAFA Trade Refers to Wuhan Zhongheng HUAFA Trade Co., Ltd.
Wuhan Zhongheng Group Refers to Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd
HK Yutian Refers to Hong Kong Yutian International Investment Co., Ltd.
Hengsheng Photo-electricity Refers to Wuhan Hengsheng Photo-electricity Industry Co., Ltd.
Hengsheng Yutian Refers to Wuhan Hengsheng Yutian Industrial Co., Ltd.
Yutian Henghua Refers to Shenzhen Yutian Henghua Co., Ltd.
HUAFA Hengtian Refers to Shenzhen HUAFA Hengtian Co., Ltd.
HUAFA Hengtai Refers to Shenzhen HUAFA Hengtai Co., Ltd.
Shenzhen Vanke Real Estate Co., Ltd., now renamed as Shenzhen Vanke
Shenzhen Vanke Refers to
Development Co., Ltd.
Vanke Guangming Refers to Shenzhen Vanke Guangming Real Estate Development Co., Ltd
V& T Law Firm Refers to Shenzhen V& T Law Firm
Huafa Technology Refers to Shenzhen Zhongheng Huafa Technology Co., Ltd.
4
SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Section II. Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock Shen HUAFA -A, Shen HUAFA - B Stock code 000020, 200020
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中恒华发股份有限公司
Chinese)
Short form of the Company
深华发
(in Chinese if applicable)
Foreign name of the
SHENZHEN ZHONGHENG HUAFA CO., LTD.
Company (if applicable)
Abbr. of the foreign name
N/A
(if applicable)
Legal representative Li Zhongqiu
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Niu Zhuo
618, East Tower, Huafa Building,
Contact add. No.411 Bldg, Huafa (N) Road, Futian
District, Shenzhen
Tel. 0755-86360201
Fax. 0755-86360206
E-mail huafainvestor@126.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting per iod or
not
√Applicable □ Not applicable
Address for registration No.411 Bldg, Huafa (N) Road, Futian District, Shenzhen
Post code of the address for registration 518031
6/F, East Tower, Huafa Building, No.411 Bldg, Huafa (N) Road, Futian
Office address
District, Shenzhen
Post code of the address for office address 518031
Company’s Internet Web Site http://www.hwafa.com.cn/
E-mail huafainvestor@126.com
Inquiry date for the extraordinary notice
released on appointed website (if applicable)
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
√ Applicable □ Not applicable
Newspaper appointed for information disclosure Securities Times; Hong Kong Commercial Daily
Website for annual report publish appointed by
http://www.cninfo.com.cn
CSRC
5
SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Preparation place for semi-annual report Office of the Board in 6/F, Huafa Building, Futian District, Shenzhen
Inquiry date for the extraordinary notice released
on appointed website (if applicable)
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Changes over last year
Current period Same period last year
(+, -)
Operating income (RMB) 300,703,421.38 339,190,174.05 -11.35%
Net profit attributable to shareholders of
3,165,597.55 2,580,411.13 22.68%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 3,167,896.46 190,686.95 1,561.31%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
21,200,212.24 45,194,220.56 -53.09%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0112 0.0091 23.08%
Diluted earnings per share (RMB/Share) 0.0112 0.0091 23.08%
Weighted average ROE 0.96% 0.79% 0.17%
Changes over period-end
Period-end Period-end of last year
of last year (+, -)
Total assets (RMB) 610,602,250.47 614,163,899.86 -0.58%
Net assets attributable to shareholder of
332,593,647.44 329,428,049.89 0.96%
listed company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including
-99,867.53
the write-off that accrued for impairment of assets)
Gains/losses from entrusted investment or assets management 66,780.40
Other non-operating income and expenditure except for the
37,897.68
aforementioned items
6
SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Less: Impact on income tax 7,109.46
Total -2,298.91 --
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
7
SHENZHEN ZHONGHENG HUAFA CO., LTD.SEMI-ANNUAL REPORT 2020
Section III. Summary of Company Business
I. Main businesses of the company 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, POLYLON (light-weight
packaging materials), and complete machine production and sales of liquid crystal display, property management
business is mainly the lease of its own property.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in progress No major changes
2. Main overseas assets
□ Applicable √ Not applicable
III. Core competitiveness analysis
All industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010
Shenzhen urban upgrade planning. In the future, development and operation of self-owned land resources would
become the income source of the Company on a long-term and stable basis.
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Section IV. Discussion and Analysis of Operation
I. Introduction
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, POLYLON (light-weight packaging materials), and complete
machine production and sales of liquid crystal display, property management business is mainly the lease of its own property.
Affected by the outbreak of COVID-19, in the first half of 2020, the company achieved operation revenue of 300.7034 million yuan
with a y-o-y declined of 11.35%; operation profit of 3.9651 million yuan, a y-o-y growth of 34.29%; net profit achieved 3.1656
million yuan , a y-o-y growth of 22.68%. The operation revenue from industry production has 281.1885 million yuan , a 11.79%
down from a year earlier, operation profit has 987300 yuan loss, a declined of 158.28% on a y-o-y basis, net profit has 824100 yuan
loss with a 150.38% down on a y-o-y basis. In property lease business, operation revenue achieved 18.7013 million yuan in first half
of the year, a 6.22% increased over same period last year, operation profit achieved 4.9531 million yuan, a y-o-y growth of 292..85%,
the net profit achieved 3.9904 million yuan , a y-o-y growth of 321.94%.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
In RMB
Current period Same period last year y-o-y changes(+,-) Reasons
Operation revenue 300,703,421.38 339,190,174.05 -11.35%
Operation cost 263,959,652.63 297,580,208.34 -11.30%
Sales expenses 9,100,079.39 9,130,380.22 -0.33%
Administrative
17,082,362.66 19,616,991.39 -12.92%
expenses
Short-term loans
Financial expenses 3,484,228.81 5,068,371.24 -31.26%
declined in the period
Profit from property
Income tax expenses 837,369.58 603,910.08 38.66%
increased in the period
Orders from new
R&D investment 2,423,425.26 3,726,992.86 -34.98% products declined in
the period
Return of sales
Net cash flow from
21,200,212.24 45,194,220.56 -53.09% declined due to the
operating activities
COVID-19
Production equipment
Net cash flow from
-1,338,379.56 -3,964,794.99 66.24% have changed last
investment activities
period
Net cash flow from
-34,838,186.71 -32,459,238.76 -7.33%
financing activities
Return of sales
Net increase of cash
-14,832,093.81 8,869,836.86 -267.22% declined due to the
and cash equivalent
COVID-19
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
9
深圳中恒华发股份有限公司 2020 年半年度报告全文
Constitution of operation revenue
In RMB
Current period Same period last year
Ratio in operation Ratio in operation y-o-y changes(+,-)
Amount Amount
revenue revenue
Total operation
300,703,421.38 100% 339,190,174.05 100% -11.35%
revenue
According to industries
Video 163,278,927.45 54.30% 164,964,344.94 48.63% 5.67%
Injection molding 85,278,752.42 28.36% 111,142,622.51 32.77% -4.41%
EPS 19,908,274.02 6.62% 34,292,527.88 10.11% -3.49%
Property leasing 18,701,335.82 6.22% 18,911,444.99 5.58% 0.64%
Income from
12,121,666.69 4.03% 7,710,873.76 2.27% 1.76%
materials
Utilities and others 1,414,464.98 0.47% 2,168,359.97 0.64% -0.17%
According to products
Display 163,278,927.45 54.30% 164,964,344.94 48.63% 5.67%
Injection molding 85,278,752.42 28.36% 111,142,622.51 32.77% -4.41%
EPS 19,908,274.02 6.62% 34,292,527.88 10.11% -3.49%
Property leasing 18,701,335.82 6.22% 18,911,444.99 5.58% 0.64%
Income from
12,121,666.69 4.03% 7,710,873.76 2.27% 1.76%
materials
Utilities and others 1,414,464.98 0.47% 2,168,359.97 0.64% -0.17%
According to region
Hong Kong,
105,186,479.34 34.98% 63,962,270.03 18.86% 16.12%
Taiwan
Central China 136,683,631.65 45.45% 166,693,597.80 49.14% -3.69%
East China 39,318,383.66 13.08% 88,099,858.28 25.97% -12.89%
South China 19,514,926.73 6.49% 20,434,447.94 6.02% 0.47%
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
Operation Gross profit se of gross
Operation cost se of operation se of operation
revenue ratio profit ratio
revenue y-o-y cost y-o-y
y-o-y
According to industries
Video 163,278,927.45 152,549,452.35 6.57% -1.02% -2.75% 1.65%
Injection
85,278,752.42 78,749,817.82 7.66% -23.27% -19.11% -4.75%
molding
EPS 19,908,274.02 18,424,496.75 7.45% -41.95% -41.10% -1.34%
Property
18,701,335.82 2,040,226.11 89.09% -1.11% -35.68% 5.86%
leasing
10
深圳中恒华发股份有限公司 2020 年半年度报告全文
According to products
Display 163,278,927.45 152,549,452.35 6.57% -1.02% -2.75% 1.65%
Injection
85,278,752.42 78,749,817.82 7.66% -23.27% -19.11% -4.75%
molding
EPS 19,908,274.02 18,424,496.75 7.45% -41.95% -41.10% -1.34%
Property
18,701,335.82 2,040,226.11 89.09% -1.11% -35.68% 5.86%
leasing
According to region
Hong Kong,
105,186,479.34 98,581,390.01 6.28% 64.45% 63.55% 0.52%
Taiwan
Central China 124,089,406.22 114,338,203.97 7.86% -21.63% -18.90% -3.10%
East China 39,318,383.66 36,804,172.94 6.39% -55.37% -56.30% 1.99%
South China 18,573,020.49 2,040,226.11 89.02% -1.79% -35.68% 5.79%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
Item 2020-6-30 2020-1-1 y-o-y Reasons of changes
changes(+,-)
Monetary fund Sales declined and the return of sales
25,894,233.18 38,095,501.00 -32.03%
decreased
Other current assets Tax to be deducted for the current
234,014.36 1,395,071.36 -83.23%
period
Long-term deferred Amortization of cloud service fee
193,613.23 309,781.15 -37.50%
expenses
Short-term loans Pay back the short-term loans to the
- 24,633,898.20 -100.00%
bank
Note payable Issuance of notes decreased in the
8,617,287.25 16,761,590.51 -48.59%
Period
Account received in Part of the customer deposit is
866,746.45 356,446.21 143.16%
advance received in advance
Including: dividend Pay back the short-term loans to the
- 89,365.28 -100.00%
payable bank
Deferred income Government subsidy related to assets
4,173,180.00 2,331,720.00 78.97%
received in the Period
Item y-o-y Reasons of changes
Jan.- Jun. 2020 Jan.- Jun. 2019
changes(+,-)
R&D expenses R&D investment declined in the
2,423,425.26 3,726,992.86 -34.98%
Period
Financial expenses 3,484,228.81 5,068,371.24 -31.26% Pay back the short-term loans to the
11
深圳中恒华发股份有限公司 2020 年半年度报告全文
bank
Other income Subsidy revenue was recognized in
348,540.00 -
the Period
Income from assets Loss from assets disposal in the
-99,867.53 129,039.57 -177.39%
disposal Period
Non-operation revenue Outstanding enterprise award last
45,200.06 232,758.00 -80.58%
period
Non-operation Liquidated damages incurred in the
7,302.38 1,100.00 563.85%
expenditure Period
Income tax expenses Profit from property increased in the
837,369.58 603,910.08 38.66%
Period
Item Jan.- Jun. 2020 Jan.- Jun. 2019 y-o-y Reasons of changes
changes(+,-)
Cash paid for Last period, Zhongzhou new
purchasing fixed assets, workshop purchased production
1,816,159.96 4,360,231.13 -58.35%
intangible assets and equipment
other long-term assets
Cash received from Pay back the short-term loans in the
6,725,056.80 61,315,748.80 -89.03%
borrowings Period
Cash pay for debts Pay back the short-term loans in the
37,370,812.20 88,051,864.63 -57.56%
Period
Cash paid for dividend Pay back the short-term loans in the
and profit distribution or 4,192,431.31 5,723,122.93 -26.75% Period
interest payment
Impact on cash and cash The effect of exchange rate
equivalent from change -44.77% fluctuation in the Period
144,260.22 99,650.05
of foreign exchange
III. Analysis of the non-main business
√Applicable □Not applicable
In RMB
Amount Ratio in total profit Description of formation Whether be sustainable
Investment Revenue from short-term
66,780.40 1.67% N
income financial products
Non-operation Revenue from handling
45,200.06 1.13% N
revenue charge
Non-operation The liquidated damages
7,302.38 0.18% N
expense paid
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end Period-end last year Ratio
Notes of major changes
Amount Ratio in Amount Ratio in changes
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深圳中恒华发股份有限公司 2020 年半年度报告全文
total total
assets assets
Monetary fund 25,894,233.18 4.24% 47,981,541.61 7.69% -3.45%
Account
162,983,895.27 26.69% 149,540,866.46 23.97% 2.72%
receivable
Inventory 70,058,031.39 11.47% 86,709,541.76 13.90% -2.43%
Investment real
48,088,827.43 7.88% 49,817,157.72 7.98% -0.10%
estate
Long-term
equity 0.00% 0.00% 0.00%
investment
Fixed assets 196,754,132.05 32.22% 185,008,101.52 29.65% 2.57%
Construction in
500,000.00 0.08% 7,552,776.46 1.21% -1.13%
process
Short-term
134,676,280.00 21.58% -21.58%
loans
Long-term
67,000,000.00 10.97% 10.97%
loans
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets right restriction till end of reporting period
Item Ending book value Restriction reasons
Monetary fund Bank acceptance deposit:2,529,797.38 yuan;
4,081,265.38 court freeze: 1,551,468 yuan
Receivable financing 9,294,702.94 Pledge
Investment real estate 36,260,337.64 Mortgage to obtain bank loans
Fixed assets 12,779,094.73 Mortgage to obtain bank loans
Disposal of fixed assets 92,857,471.69 Court seizure
Intangible assets 2,761,798.94 Mortgage to obtain bank loans
Total 158,034,671.32 --
V. Investment analysis
1. Overall situation
□ Applicable √ Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4.Financial assets measured by fair value
□ Applicable √ Not applicable
13
深圳中恒华发股份有限公司 2020 年半年度报告全文
5. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company has no securities investment in the Period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Total Operating Operatin
Type Net Assets Net profit
name business capital assets revenue g profit
R&D,
production
and sales
of the
Hengfa
products as 181,643,11 467,146,28 222,329,62 281,188,49 -987,280
Technolog Subsidiary -824,054.38
well as 1.00 2.12 2.80 4.65 .78
y Company
import &
export
business
etc.
Leasing
Huafa and
1,000,000. 8,014,037. -1,289,292. 2,794,404. 1,039,72
Property Subsidiary manageme 1,042,065.26
00 30 12 26 7.42
Company nt of own
property
Leasing
HUAFA and
1,000,000. 1,900,692. -5,026,990.
Lease Subsidiary manageme
00 20 71
Company nt of own
property
Leasing
HUAFA and
1,000,000.
Hengtian Subsidiary manageme 995,061.88 995,061.88 0.00 -393.10 -393.10
00
Company nt of own
property
14
深圳中恒华发股份有限公司 2020 年半年度报告全文
Leasing
HUAFA and
1,000,000.
Hengtai Subsidiary manageme 996,097.86 996,097.86 0.00 -393.05 -393.05
00
Company nt of own
property
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
Explanation of main holding company and stock-jointly companies
Nil
VIII. Structured vehicle controlled by the Company
□ Applicable √Not applicable
IX. Prediction of business performance from January – September 2020
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
X. Risks and countermeasures
1. Operational risks of industrial business: industrial restructuring, fluctuations in raw material prices, decline in
market demand, and frustration of new product promotion.
Countermeasures: continue to open up the market, maintain the existing customers, positively develop new
customers, and continue to improve production efficiency;
2. Financial risks: large demands for funds, substantial increase or decrease in financial costs caused by exchange
rate fluctuations, and bank credit constraints caused by changes in financial costs and so on.
Countermeasures: pay close attention to macroeconomic policy trends, actively expand the financing channels and
industrial upgrading, establish a virtuous circle mechanism for funds, improve the service efficiency, and use
financial instruments to avoid exchange rate risks.
15
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Ratio of investor Index of
Session of meeting Type Date Date of disclosure
participation disclosure
http://www.cninfo.
com.cn/new/disclo
sure/detail?stockC
2020 First
ode=000020&ann
Extraordinary Extraordinary
6.26% 2020-02-11 2020-02-12 ouncementId=120
General Meeting general meeting
7302289&orgId=g
of Shareholders
ssz0000020&anno
uncementTime=20
20-02-12
http://www.cninfo.
com.cn/new/disclo
sure/detail?stockC
ode=000020&ann
Annual General
AGM 48.03% 2020-05-21 2020-05-22 ouncementId=120
Meeting of 2019
7845176&orgId=g
ssz0000020&anno
uncementTime=20
20-05-22
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
II. Profit distribution plan in the period and capitalizing of common reserves plan
□ Applicable √Not applicable
The Company plans not to distribute cash dividend and bonus for the semi-annual, and no capitalizing of common reserves either.
III. Commitments that the actual controller, shareholders, related party, offeror and
committed party as the Company etc. have fulfilled during the reporting period and have not
yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the committed party as the actual controller, shareholders, related party, buyer and the Compan y have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
16
深圳中恒华发股份有限公司 2020 年半年度报告全文
IV. Appointme nt and non-reappointme nt (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √no
The company's semi-annual report has not been audited.
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √Not applicable
VII. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuits
Significant lawsuits and arbitration
√Applicable □Not applicable
Amount of Advances
The basic The results and
money Predicted in Execution of
situation of effects of Disclosure Disclosur
involved (in liabilities litigation the litigation
litigation litigation date e index
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17
深圳中恒华发股份有限公司 2020 年半年度报告全文
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18
深圳中恒华发股份有限公司 2020 年半年度报告全文
Ltd and
Shenzhen
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Technology Co.,
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深圳中恒华发股份有限公司 2020 年半年度报告全文
-11-14
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深圳中恒华发股份有限公司 2020 年半年度报告全文
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Other lawsuits
□Applicable √ Not applicable
IX. Major litigation and arbitration of the controlling shareholder
China Merchants Securities Asset Management Co., Ltd. (hereinafter referred to as CMAM) sued the Wuhan Zhongheng Group to
The Shenzhen Intermediate Peoples Court (hereinafter referred to as Shenzhen Intermediate Court) against “dispute over repurchase
of pledged securities”, CMAM changed the litigious claims later, and the case referred to the Guangdong Higher People’s Court
( hereinafter referred to as Guangdong Higher Court), a verdict has yet to be issued. Found more in the Notice on major litigation and
arbitration of the controlling shareholder (Notice No.: 2019-25) released on 5 September 2019, website on
http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000020&stockCode=000020&announcementId=12068891
79&announcementTime=2019-09-05
X. Media questioning
□Applicable √Not applicable
During the reporting period, the company had no media generally questioned matters.
XI. Penalty and rectification
□Applicable √ Not applicable
The Company has no penalty and rectification in the period
XII. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XIII. Imple mentation of the company’s stock incentive plan, employee stock ownership plan
or other employee incentives
□ Applicable √Not applicable
The Company had no stock incentive plan, employee stock ownership plan or other employee incentive in the reporting period.
XIV. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
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HK Sharin Purch Purch Synch 6,753. 6,753. 38.95 13,77 N Telegr —— 2020- http:
21
深圳中恒华发股份有限公司 2020 年半年度报告全文
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22
深圳中恒华发股份有限公司 2020 年半年度报告全文
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23
深圳中恒华发股份有限公司 2020 年半年度报告全文
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深圳中恒华发股份有限公司 2020 年半年度报告全文
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深圳中恒华发股份有限公司 2020 年半年度报告全文
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18,68 71,63
Total -- -- -- -- -- -- -- --
4.55 1.04
Detail of sales return with major
N/A
amount involved
In the reporting, Hengfa Technology purchased LCD display screen from HK Yutian with
US$ 9.5617 million approximately, 47.81% of the annual amount predicted at the
beginning of the year; purchased LCD display screen from Hengsheng Photo-electricity
with US $ 4.9161 million approximately, 24.58% of the annual amount predicted at the
Report the actual implementation
beginning of the year; purchasing LCD from Hengsheng Photoelectricity with about US
of the daily related transactions
$ 3.6022 million, 15.01% of the annual amount predicted at the beginning of the year; sold
which were projected about their
LCD whole machine to HK Yutian with US $ 8.3686 million approximately, 20.92% of
total amount by types during the
the annual amount predicted at the beginning of the year. Sold LCD to Hengsheng
reporting period (if applicable)
Photo-electricity with US $ 1.4543 million approximately, 11.63% of the annual amount
predicted at the beginning of the year; the sales of LCD glass to Hengsheng
Photo-electricity amounted to approximately US$ 0.3751 million, accounting for 15.63%
of the total amount expected at the beginning of the year.
Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related transactions by assets acquisition and sold
□Applicable √ Not applicable
No above-mentioned transactions occurred
3. Main related transactions of mutual investment outside
□ Applicable √Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √Not applicable
No contact of related credit and debt in the period
5. Other related transactions
□ Applicable √Not applicable
The Company had no other significant related transactions in reporting period.
XV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
26
深圳中恒华发股份有限公司 2020 年半年度报告全文
XVI. Significant contract and imple mentations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
The company and its subsidiaries' external guarantees (Barring the guarantee for subsidiaries)
Related Guaran
Name of the Announc Actual Implem tee for
Guarante Actual date of Guarantee Guarantee
Company ement guarantee ented related
e limit happening type term
guaranteed disclosur limit (Y/N) party
e date (Y/N)
Guarantee of the Company and the subsidiaries
Related Guaran
Name of the Announc Actual Implem tee for
Guarante Actual date of Guarantee Guarantee
Company ement guarantee ented related
e limit happening type term
guaranteed disclosur limit (Y/N) party
e date (Y/N)
Wuhan Hengfa Joint
2020-04-
Technology Co., 30,000 liability One year N Y
28
Ltd. guarantee
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 30,000 subsidiaries in report period
report period (B1)
(B2)
Total amount of approved Total balance of actual
guarantee for subsidiaries at guarantee for subsidiaries at
the end of reporting period 30,000 the end of reporting period
(B3) (B4)
Guarantee of the subsidiaries for the subsidiaries
Related Guaran
Name of the Announc Actual Implem tee for
Guarante Actual date of Guarantee Guarantee
Company ement guarantee ented related
e limit happening type term
guaranteed disclosur limit (Y/N) party
e date (Y/N)
27
深圳中恒华发股份有限公司 2020 年半年度报告全文
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 30,000 occurred guarantee in report
(A1+B1+C1) period (A2+B2+C3)
Total amount of approved Total balance of actual
guarantee at the end of report 30,000 guarantee at the end of
period (A3+B3+C2) report period (A4+B4+C4)
Including:
Explanations on possibly bearing joint and several
liquidating responsibilities for undue guarantees (if N/A
applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
Explanation on compound guarantee
Nil
(2) Guarantee outside against the regulation
□Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Trust financing
√Applicable □Not applicable
In 10 thousand Yuan
Type Capital sources Amount occurred Outstanding balance Overdue amount
Bank financial
Own funds 3,500 0 0
products
Total 3,500 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
4. Other material contracts
□ Applicable √Not applicable
No other material contracts for the Company in reporting period.
XVII. Social responsibility
1. Material environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
No
Listed companies and their subsidiaries do not belong to key pollutant discharge units announced by environmental protection
departments.
2. Execution of social responsibility of targeted poverty alleviation
(1) Targeted poverty alleviation
(2) Summary of targeted poverty alleviation
(3) Performance of the targeted poverty alleviation
Index Unit of Quantity /implementation
28
深圳中恒华发股份有限公司 2020 年半年度报告全文
measure
I. Overall condition —— ——
II. Poverty alleviation by items —— ——
1.Industry development —— ——
2.Shift employment —— ——
3. Relocating in other places —— ——
4. Education —— ——
5. Health —— ——
6.Ecological protection —— ——
7. Reveal all the details —— ——
8. Society —— ——
9.Other —— ——
III. Award received (content and grade) —— ——
(4) Follow-up targeted poverty alleviation scheme
XVIII. Explanation on other significant events
√Applicable □ Not applicable
(1) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & Technology Industrial Group
Co., Ltd. (Hereinafter referred to as "Wuhan Zhongheng Group") on 29 April 2009 (details were referred to in the
announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (namely
two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen (the
property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels were A627-005
andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of plan for 2010
Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and joint
cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land.
The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first
extraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the
“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area at
Gongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Group
shall obtain the corresponding compensatory consideration for removal from the respectively owned project plots
and the respectively contributed and constructed above-ground buildings before the land development, it is
estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total
consideration and Wuhan Zhongheng Group accounts for 49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting have
considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the
progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New District,
Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of the updated
units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for the cooperative
venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming New District” and
“Agreement on housing acquisition and removal compensation and resettlement” with Wuhan Zhongheng Group,
Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and Shenzhen Vanke
29
深圳中恒华发股份有限公司 2020 年半年度报告全文
Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of
urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”
against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) has
given a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application of
Shenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “no
execution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminate
the enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed by
outsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen Intermediate
People’s Court to resume execution. Progress of the case found more in the Notices released on Juchao website
(www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April
2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018 and 7 Sept. 2018 respectively.
In November 2019, the company was listed by Shenzhen Intermediate People’s Court as the dishonest person
subjected to execution, and was removed from the dishonest person subjected to execution list by the Shenzhen
Intermediate People’s Court in December 2019. For details, see the “Announcement About the Company Being
Included in the List of Dishonest Person Subjected to Execution” (Announcement No.: 2019-33) and
“Announcement About the Company Being Removed from the List of Dishonest Person Subjected to Execution”
(Announcement No.: 2019 -35) issued by the company on November 9, 2019 and December 14, 2019 on
www.cninfo.com.cn.
(2) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China
Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. on 1 Feb. 2016, Wuhan Zhongheng
Group pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31
December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expired
on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till end
of this period released, controlling shareholder still not removed the pledge and the Company has apply by letter,
relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice
released on Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.
(3) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,
accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judicially frozen
by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on September
27, 2016, which were frozen again by the Shenzhen Intermediate People's Court on December 14, 2018, with a
frozen period of 36 months; the remaining 2,800,000 shares were frozen by the Shenzhen Intermediate People's
Court on May 29, 2019, and were frozen again by the Higher People’s Court of Guangdong Province on July 5,
2019. For details, please refer to the company’s announcements published on www.cninfo.com.cn on October 27,
2016, January 11, 2019, May 31, 2019 and August 7, 2019.
(4) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the
“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “Supplemental
Agreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and Wuhan
30
深圳中恒华发股份有限公司 2020 年半年度报告全文
Zhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due to
differences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to the
Shenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’s
name and part of our company dormitories, please refer to “Other Announcements on the Progress Involving
Litigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released by our company on
www.cninfo.com on November 14, 2018 and March 6, 2019. 02. In November 2019, the Shenzhen Court of
International Arbitration ruled that the company and Wuhan Zhongheng Group paid the corresponding fees.
According to the “Agency Contract” and “Supplemental Agreement for Agency Contract” signed by the three
parties, the loss of the arbitrament in this case was borne by Wuhan Zhongheng Group, so it had no impact on the
company’s 2019 annual profit. For details, see the company’s “Other Announcements on the Progress Involving
Litigation and Arbitration” (Announcement No.: 2019-34) released on www.cninfo.com.cn on November 25,
2019.
(5) On April 29, 2009, the company signed an Asset Replacement Contract with Wuhan Zhongheng Group.
According to the contract, the company would use the the land use rights of two plots of land located at Huafa
Road, Gongming Town, Bao’an District, Shenzhen, i.e. land parcel number A627-0005 (real estate registration
number 8000101219) and A627-0007 (real estate registration number 8000101218), which are worth 18.55
million yuan, to increase capital to Shenzhen Zhongheng Huafa Technology Co., Ltd. (hereinafter referred to as
"Huafa Technology") and transfer ownership to Huafa Technology, Wuhan Zhongheng Group replaced the
company's 100% equity in Huafa Technology with its 56% equity in Wuhan Hengfa Technology Co., Ltd.. For the
main content of the above-mentioned Asset Replacement Contract, please refer to the Announcement on Related
Transactions of Asset Replacement with Controlling Shareholders published by the company on cninfo on April
30, 2009, with the announcement number 2009-17. After Wuhan Zhongheng Group fulfilled its obligations under
the Asset Replacement Contract, the company transferred 100% of its equity in Huafa Technology to Wuhan
Zhongheng Group on December 21, 2009; the company also handed over the above two plots of land to Huafa
Technology for possession, management, and use, but the land use right has not been transferred to Huafa
Technology. In April 2020, the company received a court summons, Huafa Technology sued the company,
demanding that the company transfer the above two plots of land and compensate economic losses of 52 million
yuan. As of the disclosure date of this report, the case has not yet been decided.
XIX. Significant event of subsidiary of the Company
□ Applicable √Not applicable
31
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capital
New ization
Bonus Othe Subto Proportio
Amount Proportion shares of Amount
shares rs tal n
issued public
reserve
I. Restricted shares 0 0.00% 0 0.00%
II. Unrestricted shares 283,161,227 100.00% 283,161,227 100.00%
1. RMB Ordinary
181,165,391 63.98% 181,165,391 63.98%
shares
2. Domestically listed
101,995,836 36.02% 101,995,836 36.02%
foreign shares
III. Total shares 283,161,227 100.00% 283,161,227 100.00%
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √Not applicable
II. Securities issuance and listing
□ Applicable √Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total preference shareholders
Total common stock
with voting rights recovered at
shareholders in reporting 24,154 0
end of reporting period (if
period-end
applicable) (found in note 8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
32
深圳中恒华发股份有限公司 2020 年半年度报告全文
Total Number of share
commo Amount Amount pledged/frozen
n of of
Proportio shareho Changes restricte un-restric
Full name of Nature of n of
lders at in report d ted
Shareholders shareholder shares State of
held the end period commo common Amount
share
of n shares shares
report held held
period
Wuhan Domestic Pledged 116,100,000
119,289 119,289,8
Zhongheng non-state-owned 42.13% 0 0
,894 94 Frozen 119,289,894
Group legal person
SEG (HONG Pledged 0
Overseas legal 16,569, 16,569,56
KONG) CO., 5.85% 0 0
person 560 0 Frozen 0
LTD.
GOOD Pledged 0
HOPE
Overseas legal 9,722,0
CORNER 3.43% 0 9,722,000
person 00 Frozen 0
INVESTME
NTS LTD
Changjiang Pledged 0
Securities
Overseas legal 5,355,2
Brokerage 1.89% 0 5,355,249
person 49 Frozen 0
(Hong Kong)
Co., Ltd.
Guoyuan Pledged 0
Securities
Overseas legal 3,870,1
Brokerage 1.37% 0 3,870,117
person 17 Frozen 0
(Hong Kong)
Co., Ltd.
Overseas nature 2,830,0 Pledged 0
Li Zhongqiu 1.00% 0 2,830,000
person 00 Frozen 0
Zhong Domestic nature 1,329,6 Pledged 0
0.47% 0 1,329,602
Jiachao person 02 Frozen 0
China Pledged 0
Merchants
State-owned 1,113,2
Securities 0.39% 0 1,113,288
legal person 88 Frozen 0
Hong Kong
Limited
LI SHERYN Overseas nature 1,074,0 Pledged 0
0.38% 0 1,074,000
ZHAN MING person 00 Frozen 0
Domestic nature 1,017,7 Pledged 0
Li Senzhuang 0.36% 0 1,017,773
person 73 Frozen 0
Strategy investors or general N/A
33
深圳中恒华发股份有限公司 2020 年半年度报告全文
corporation comes top 10
shareholders due to rights issue (if
applicable) (see note 3)
Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng
Explanation on associated New Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. The
relationship among the aforesaid Company neither knew whether there exists associated relationship among the other
shareholders tradable shareholders, nor they belong to consistent actors that are prescribed in Measures
for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
Particular about top ten shareholders with un-restrict common shares held
Amount of un-restrict common shares held at Type of shares
Shareholders’ name
Period-end Type Amount
RMB common
Wuhan Zhongheng Group 119,289,894 119,289,894
share
Domestically
SEG (HONG KONG) CO., LTD. 16,569,560 listed foreign 16,569,560
shares
Domestically
GOOD HOPE CORNER
9,722,000 listed foreign 9,722,000
INVESTMENTS LTD
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign 5,355,249
(Hong Kong) Co., Ltd.
shares
Domestically
Guoyuan Securities Brokerage
3,870,117 listed foreign 3,870,117
(Hong Kong) Co., Ltd.
shares
Domestically
Li Zhongqiu 2,830,000 listed foreign 2,830,000
shares
RMB common
Zhong Jiachao 1,329,602 1,329,602
share
Domestically
China Merchants Securities Hong
1,113,288 listed foreign 1,113,288
Kong Limited
shares
Domestically
LI SHERYN ZHAN MING 1,074,000 listed foreign 1,074,000
shares
Domestically
Li Senzhuang 1,017,773 listed foreign 1,017,773
shares
Expiation on associated Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng
relationship or consistent actors New Science & Technology Industrial Group Co., Ltd. and is a party acting in concert. The
within the top 10 un-restrict Company neither knew whether there exists associated relationship among the other
common shareholders and tradable shareholders, nor they belong to consistent actors that are prescribed in Measures
between top 10 un-restrict for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
34
深圳中恒华发股份有限公司 2020 年半年度报告全文
common shareholders and top 10
shareholders
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with u n-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √Not applicable
The Company had no changes of controlling shareholders in reporting period
Changes of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.
35
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √Not applicable
The Company had no preferred stock in the Period.
36
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section VIII. Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period.
37
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section IX. Particulars about Directors, Supervisors and Senior
Officers
I. Changes of shares held by directors, supervisors and senior officers
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior officers have no changes in reporting period, found more details in Annual Report
2019.
II. Resignation and dismissal of directors, supervisors and senior officers
□ Applicable √ Not applicable
The directors, supervisors and senior management of the company did not change during the reporting period, found more details in
Annual Report 2019.
38
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section X. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date w hen
semi-annual report approved for released or fail to cash in full on due
No
39
深圳中恒华发股份有限公司 2020 年半年度报告全文
Section XI. Financial Report
I. Audit report
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was un-audited
II. Financial statement
Currency used in note of financial statement is RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 25,894,233.18 38,095,501.00
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable
Account receivable 162,983,895.27 138,755,691.43
Receivable financing 29,776,291.10 42,096,834.02
Accounts paid in advance 22,083,401.55 23,007,637.46
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 4,804,531.82 6,351,361.16
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 70,058,031.39 66,971,551.96
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 234,014.36 1,395,071.36
Total current assets 315,834,398.67 316,673,648.39
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
40
深圳中恒华发股份有限公司 2020 年半年度报告全文
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 48,088,827.43 48,952,992.57
Fixed assets 196,754,132.05 198,229,817.31
Construction in progress 500,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 42,056,797.73 42,968,600.44
Expense on Research and
Development
Goodwill
Long-term expenses to be
193,613.23 309,781.15
apportioned
Deferred income tax asset 6,948,781.36 6,803,360.00
Other non-current asset 225,700.00 225,700.00
Total non-current asset 294,767,851.80 297,490,251.47
Total assets 610,602,250.47 614,163,899.86
Current liabilities:
Short-term loans 24,633,898.20
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 8,617,287.25 16,761,590.51
Account payable 140,297,671.23 108,804,905.20
Accounts received in advance 866,746.45 356,446.21
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 4,280,621.68 5,877,341.25
Taxes payable 12,568,567.03 12,877,944.98
Other account payable 28,140,118.39 28,027,592.62
Including: Interest payable 89,365.28
Dividend payable
41
深圳中恒华发股份有限公司 2020 年半年度报告全文
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due
12,000,000.00 12,000,000.00
within one year
Other current liabilities
Total current liabilities 206,771,012.03 209,339,718.97
Non-current liabilities:
Insurance contract reserve
Long-term loans 67,000,000.00 73,000,000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 64,411.00 64,411.00
Deferred income 4,173,180.00 2,331,720.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 71,237,591.00 75,396,131.00
Total liabilities 278,008,603.03 284,735,849.97
Owner’s equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -174,546,444.31 -177,712,041.86
Total owner’ s equity attributable to
332,593,647.44 329,428,049.89
parent company
Minority interests
Total owner’ s equity 332,593,647.44 329,428,049.89
Total liabilities and owner’ s equity 610,602,250.47 614,163,899.86
42
深圳中恒华发股份有限公司 2020 年半年度报告全文
Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 3,898,679.16 3,494,245.90
Trading financial assets
Derivative financial assets
Note receivable
Account receivable
Receivable financing
Accounts paid in advance 71,888.56
Other account receivable 95,507,010.91 97,165,023.85
Including: Interest receivable
Dividend
receivable
Inventories 14,806.50 14,806.50
Contractual assets
Assets held for sale
Non-current assets maturing
within one year
Other current assets 173,950.26
Total current assets 99,492,385.13 100,848,026.51
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 186,608,900.00 186,608,900.00
Investment in other equity
instrument
Other non-current financial
assets
Investment real estate 24,562,099.74 25,166,301.06
Fixed assets 97,873,874.16 98,410,024.38
Construction in progress 500,000.00
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 4,469,157.57 4,553,709.24
43
深圳中恒华发股份有限公司 2020 年半年度报告全文
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 7,367,646.35 7,367,646.35
Other non-current assets
Total non-current assets 321,381,677.82 322,106,581.03
Total assets 420,874,062.95 422,954,607.54
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 9,740,367.33 10,745,840.16
Accounts received in advance 64,745.01 57,266.01
Contractual liability
Wage payable 820,979.02 1,220,979.02
Taxes payable 7,498,209.68 8,489,130.72
Other accounts payable 22,460,372.88 19,100,375.42
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due
12,000,000.00 12,000,000.00
within one year
Other current liabilities
Total current liabilities 52,584,673.92 51,613,591.33
Non-current liabilities:
Long-term loans 67,000,000.00 73,000,000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee
compensation payable
Accrued liabilities 64,411.00 64,411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 67,064,411.00 73,064,411.00
Total liabilities 119,649,084.92 124,678,002.33
Owners’ equity:
Share capital 283,161,227.00 283,161,227.00
44
深圳中恒华发股份有限公司 2020 年半年度报告全文
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146,587,271.50 146,587,271.50
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 77,391,593.25 77,391,593.25
Retained profit -205,915,113.72 -208,863,486.54
Total owner’s equity 301,224,978.03 298,276,605.21
Total liabilities and owner’s equity 420,874,062.95 422,954,607.54
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 300,703,421.38 339,190,174.05
Including: Operating income 300,703,421.38 339,190,174.05
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 297,053,804.80 336,433,054.05
Including: Operating cost 263,959,652.63 297,580,208.34
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
Tax and extras 1,004,056.05 1,310,110.00
Sales expense 9,100,079.39 9,130,380.22
Administrative expense 17,082,362.66 19,616,991.39
R&D expense 2,423,425.26 3,726,992.86
Financial expense 3,484,228.81 5,068,371.24
Including: Interest
4,018,202.27 5,355,676.92
expenses
Interest
11,856.69 419,336.28
income
Add: other income 348,540.00
45
深圳中恒华发股份有限公司 2020 年半年度报告全文
Investment income (Loss is
66,780.40 74,936.14
listed with “-”)
Including: Investment
income on affiliated company and joint
venture
The termination of
income recognition for financial assets
measured by amortized cost(Loss is
listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging
income (Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
-8,432.50
(Loss is listed with “-”)
Losses of devaluation of
asset (Loss is listed with “-”)
Income from assets disposal
-99,867.53 129,039.57
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
3,965,069.45 2,952,663.21
“-”)
Add: Non-operating income 45,200.06 232,758.00
Less: Non-operating expense 7,302.38 1,100.00
IV. Total profit (Loss is listed with “-”) 4,002,967.13 3,184,321.21
Less: Income tax expense 837,369.58 603,910.08
V. Net profit (Net loss is listed with
3,165,597.55 2,580,411.13
“-”)
(i) Classify by business continuity
1.continuous operating net profit
3,165,597.55 2,580,411.13
(net loss listed with ‘-”)
2.termination of net profit (net
loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to
3,165,597.55 2,580,411.13
owner’s of parent company
2.Minority shareholders’ gains
and losses
VI. Net after-tax of other
comprehensive income
Net after-tax of other comprehensive
income attributable to owners of parent
46
深圳中恒华发股份有限公司 2020 年半年度报告全文
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 3,165,597.55 2,580,411.13
Total comprehensive income
attributable to owners of parent 3,165,597.55 2,580,411.13
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0112 0.0091
47
深圳中恒华发股份有限公司 2020 年半年度报告全文
(ii) Diluted earnings per share 0.0112 0.0091
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: Yang Bin
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 16,720,522.47 18,041,135.31
Less: Operating cost 2,040,226.11 3,172,031.59
Taxes and surcharge 542,709.33 562,061.05
Sales expenses
Administration expenses 6,208,200.98 9,024,394.50
R&D expenses
Financial expenses 4,015,977.09 4,423,699.05
Including: interest
4,018,202.27 4,398,333.30
expenses
Interest income 6,881.46 9,938.10
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment
income on affiliated Company and
joint venture
The termination of
income recognition for financial
assets measured by amortized cost
(Loss is listed with “-”)
Net exposure hedging
income (Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of
asset (Loss is listed with “-”)
Income on disposal of
assets (Loss is listed with “-”)
II. Operating profit (Loss is listed
3,913,408.96 858,949.12
with “-”)
48
深圳中恒华发股份有限公司 2020 年半年度报告全文
Add: Non-operating income 17,754.80 1,300.00
Less: Non-operating expense
III. Total Profit (Loss is listed with
3,931,163.76 860,249.12
“-”)
Less: Income tax 982,790.94 215,062.28
IV. Net profit (Net loss is listed with
2,948,372.82 645,186.84
“-”)
(i)continuous operating net
2,948,372.82 645,186.84
profit (net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that
cannot be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive
income items which will be
reclassified subsequently to profit or
loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
49
深圳中恒华发股份有限公司 2020 年半年度报告全文
currency financial statements
7.Other
VI. Total comprehensive income 2,948,372.82 645,186.84
VII. Earnings per share:
(i) Basic earnings per share 0.0104 0.0023
(ii) Diluted earnings per share 0.0104 0.0023
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 251,602,049.92 283,565,570.88
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from
central bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from
reinsurance business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in
sale and purchase of securities
Write-back of tax received
Other cash received concerning
3,743,255.21 3,403,272.55
operating activities
Subtotal of cash inflow arising from
255,345,305.13 286,968,843.43
operating activities
Cash paid for purchasing
commodities and receiving labor 179,132,887.12 182,811,441.04
service
Net increase of customer loans
and advances
50
深圳中恒华发股份有限公司 2020 年半年度报告全文
Net increase of deposits in
central bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest,
commission charge and commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
24,991,943.90 33,770,584.01
workers
Taxes paid 3,743,185.15 4,582,072.62
Other cash paid concerning
26,277,076.72 20,610,525.20
operating activities
Subtotal of cash outflow arising from
234,145,092.89 241,774,622.87
operating activities
Net cash flows arising from operating
21,200,212.24 45,194,220.56
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
66,780.40 74,936.14
income
Net cash received from disposal
of fixed, intangible and other 411,000.00 320,500.00
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
35,000,000.00 49,000,000.00
investing activities
Subtotal of cash inflow from
35,477,780.40 49,395,436.14
investing activities
Cash paid for purchasing fixed,
1,816,159.96 4,360,231.13
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
35,000,000.00 49,000,000.00
investing activities
Subtotal of cash outflow from
36,816,159.96 53,360,231.13
investing activities
51
深圳中恒华发股份有限公司 2020 年半年度报告全文
Net cash flows arising from investing
-1,338,379.56 -3,964,794.99
activities
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 6,725,056.80 61,315,748.80
Other cash received concerning
financing activities
Subtotal of cash inflow from
6,725,056.80 61,315,748.80
financing activities
Cash paid for settling debts 37,370,812.20 88,051,864.63
Cash paid for dividend and
4,192,431.31 5,723,122.93
profit 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
41,563,243.51 93,774,987.56
financing activities
Net cash flows arising from financing
-34,838,186.71 -32,459,238.76
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 144,260.22 99,650.05
exchange rate
V. Net increase of cash and cash
-14,832,093.81 8,869,836.86
equivalents
Add: Balance of cash and cash
36,645,061.61 27,961,209.60
equivalents at the period -begin
VI. Balance of cash and cash
21,812,967.80 36,831,046.46
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 17,825,898.30 16,386,026.55
services
52
深圳中恒华发股份有限公司 2020 年半年度报告全文
Write-back of tax received
Other cash received concerning
7,210,631.17 4,240,814.47
operating activities
Subtotal of cash inflow arising from
25,036,529.47 20,626,841.02
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and
2,100,854.64 1,551,291.30
workers
Taxes paid 1,790,646.36 791,510.74
Other cash paid concerning
11,480,046.39 25,327,205.64
operating activities
Subtotal of cash outflow arising from
15,371,547.39 27,670,007.68
operating activities
Net cash flows arising from operating
9,664,982.08 -7,043,166.66
activities
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
Cash paid for investment
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from
investing activities
Net cash flows arising from investing
activities
53
深圳中恒华发股份有限公司 2020 年半年度报告全文
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans
Other cash received concerning
financing activities
Subtotal of cash inflow from
financing activities
Cash paid for settling debts 6,000,000.00
Cash paid for dividend and
3,366,124.47 4,398,333.30
profit distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from
9,366,124.47 4,398,333.30
financing activities
Net cash flows arising from financing
-9,366,124.47 -4,398,333.30
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 2,210.11
exchange rate
V. Net increase of cash and cash
301,067.72 -11,441,499.96
equivalents
Add: Balance of cash and cash
2,046,143.44 12,024,179.58
equivalents at the period -begin
VI. Balance of cash and cash
2,347,211.16 582,679.62
equivalents at the period -end
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020 semi-annual
Owners’ equity attributable to the parent Company
Other
equity
Othe
instrument Less Tota
r Prov
Per : Reas Min l
Sha Capi com Surp ision Reta
Item pet Inve onab ority own
re Pre tal preh lus of ined Othe Subt
ual ntor le inter ers’
cap fer reser ensi reser gene profi r otal
cap Ot y reser ests equit
ital red ve ve ve ral t
ital her shar ve y
sto inco risk
sec es
ck me
urit
ies
I. Balance at 283 146, 77,3 -177 329, 329,
the end of the ,16 587, 91,5 ,712, 428, 428,
last year 1,2 271. 93.2 041. 049. 049.
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深圳中恒华发股份有限公司 2020 年半年度报告全文
27. 50 5 86 89 89
00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
283
146, 77,3 -177 329, 329,
II. Balance at ,16
587, 91,5 ,712, 428, 428,
the beginning 1,2
271. 93.2 041. 049. 049.
of this year 27.
50 5 86 89 89
00
III. Increase/
Decrease in 3,16 3,16 3,16
this year
5,59 5,59 5,59
(Decrease is
7.55 7.55 7.55
listed with
“-”)
(i) Total 3,16 3,16 3,16
comprehensiv 5,59 5,59 5,59
e income 7.55 7.55 7.55
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
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深圳中恒华发股份有限公司 2020 年半年度报告全文
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general
risk
provisions
3.
Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings from
other
comprehensiv
e income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
56
深圳中恒华发股份有限公司 2020 年半年度报告全文
2. Usage in
the report
period
(VI)Others
283
146, 77,3 -174 332, 332,
IV. Balance at ,16
587, 91,5 ,546, 593, 593,
the end of the 1,2
271. 93.2 444. 647. 647.
report period 27.
50 5 31 44 44
00
Last Period
In RMB
2019 semi-annual
Owners’ equity attributable to the parent Company
Other
equity
instrument
Pe Othe
Less
rpe r Prov Total
: Reas Mino
Sha tua Capi com Surp ision Reta owne
Item Pr Inve onab rity
re l tal preh lus of ined Othe Subt rs’
efe ntor le intere
cap ca reser ensi reser gene profi r otal equit
rre Oth y reser sts
ital pit ve ve ve ral t y
d er shar ve
al inco risk
sto es
sec me
ck
uri
tie
s
283
146, 77,3 -183 323,
I. Balance at ,16 323,9
587, 91,5 ,172, 968,
the end of the 1,2 68,00
271. 93.2 091. 000.
last year 27. 0.74
50 5 01 74
00
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Enterprise
combine
under the
same
control
Other
II. Balance at 283 146, 77,3 -183 323, 323,9
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深圳中恒华发股份有限公司 2020 年半年度报告全文
the beginning ,16 587, 91,5 ,172, 968, 68,00
of this year 1,2 271. 93.2 091. 000. 0.74
27. 50 5 01 74
00
III. Increase/
Decrease in 5,46 5,46 5,460
this year
0,04 0,04 ,049.
(Decrease is
listed with 9.15 9.15 15
“-”)
(i) Total 5,46 5,46 5,460
comprehensi 0,04 0,04 ,049.
ve income 9.15 9.15 15
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners
equity with
share-based
payment
4. Other
(III) Profit
distribution
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
provisions
3.
Distribution
for owners
(or
shareholders)
4. Other
(IV) Carrying
58
深圳中恒华发股份有限公司 2020 年半年度报告全文
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3.
Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings
from the
defined
benefit
plans
5．Carry-over
retained
earnings
from other
comprehensi
ve income
6. Other
(V)
Reasonable
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
(VI)Others
283
IV. Balance 146, 77,3 -177 329,
,16 329,4
at the end of 587, 91,5 ,712, 428,
1,2 28,04
the report 271. 93.2 041. 049.
period 27. 9.89
50 5 86 89
00
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
59
深圳中恒华发股份有限公司 2020 年半年度报告全文
In RMB
2020 semi-annual
Other equity
instrument Other
Capita
Perp Less: compr Reaso Surplu Retai
Share l Total
Item etual Invent ehensi nable s ned
capit Prefe public Other owners’
capit Othe ory ve reserv reserv profi
al rred reserv equity
al r shares incom e e t
stock e
secur e
ities
-208,
I. Balance at 283,1 146,58 77,391
863, 298,276,
the end of the 61,22 7,271. ,593.2
486. 605.21
last year 7.00 50 5
54
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
-208,
II. Balance at 283,1 146,58 77,391
863, 298,276,
the beginning 61,22 7,271. ,593.2
486. 605.21
of this year 7.00 50 5
54
III. Increase/
Decrease in 2,94
2,948,37
this year 8,37
2.82
(Decrease is 2.82
listed with “-”)
(i) Total 2,94
2,948,37
comprehensive 8,37
2.82
income 2.82
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
60
深圳中恒华发股份有限公司 2020 年半年度报告全文
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V)
Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
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深圳中恒华发股份有限公司 2020 年半年度报告全文
-205,
IV. Balance at 283,1 146,58 77,391
915,1 301,224,
the end of the 61,22 7,271. ,593.2
13.7 978.03
report period 7.00 50 5
2
Last period
In RMB
2019 semi-annual
Other equity
instrument
Other
Perp Capit
Shar Less: compr Surpl
Pref etual al Reason Total
Item e Invent ehensi us Retaine
erre capit public able Other owners’
capit Othe ory ve reserv d profit
d al reserv reserve equity
al r shares incom e
stoc secu e
e
k ritie
s
283,
I. Balance at 146,5 77,39 -211,85
161, 295,284,
the end of the 87,27 1,593 5,430.4
227. 661.34
last year 1.50 .25 1
00
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Other
283,
II. Balance at 146,5 77,39 -211,85
161, 295,284,
the beginning 87,27 1,593 5,430.4
227. 661.34
of this year 1.50 .25 1
00
III. Increase/
Decrease in
this year 2,991,9 2,991,94
(Decrease is 43.87 3.87
listed with
“-”)
(i) Total 2,991,9 2,991,94
comprehensiv
43.87 3.87
e income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares
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深圳中恒华发股份有限公司 2020 年半年度报告全文
invested by
shareholders
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1.
Withdrawal
of surplus
reserves
2.
Distribution
for owners
(or
shareholders)
3. Other
(IV) Carrying
forward
internal
owners’
equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus
reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
63
深圳中恒华发股份有限公司 2020 年半年度报告全文
other
comprehensiv
e income
6. Other
(V)
Reasonable
reserve
1.
Withdrawal
in the report
period
2. Usage in
the report
period
(VI)Others
283,
IV. Balance at 146,5 77,39 -208,86
161, 298,276,
the end of the 87,27 1,593 3,486.5
227. 605.21
report period 1.50 .25 4
00
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深圳中恒华发股份有限公司 2020 年半年度报告全文
III. Company profile
1. The registration place of the enterprise, the form of organization and the headquarters address
Shenzhen Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company),
established on 8 December 1981. Uniform social credit code 91440300618830372G.
Registered place and head office of the Company: 411 Bldg., Huafa (N) Road, Futian District, Shenzhen
Legal representative: Li Zhongqiu
Registered capital: RMB 283,161,227.00
2. The nature of the business and the main business activities
The Company belongs to the computer, telecommunication and manufacturing of other electronic equipment.
Business scope: producing and sales of vary color TV set, liquid crystal display, LCD (operates in branch),
radio-recorder, sound equipment, electronic watch, electronic game and computers, the printed wiring board,
precision injection parts, light packaging material (operates in Wuhan) and hardware (including tool and mould)
for various electronic products and supporting parts, plating and surface treatment and tin wire, development and
operation of real estate (Shen Fang Di Zi No.: 7226760) and property management. Funded affiliated companies
in Wuhan and Jilin. Setting up branches in capital of the province (Lhasa City excluded) in China and
municipality directly under the central government.
3. Relevant party offering approval reporting of financial statements and date thereof
The financial statement has been deliberated and approved by BOD on 21 August 2020. According to Article of
Association, the statement shall be submitted for deliberation in shareholders general meeting.
Consolidate scope in the Period including: subsidiaries including Shenzhen HUAFA Property Lease Management
Co., Ltd (no annual inspection in 2011, and business license revoke on 1 April 2014), Shenzhen Zhongheng
HUAFA Property Co., Ltd, Wuhan Hengfa Technology Co., Ltd., Shenzhen HUAFA Hengtian Co., Ltd. and
Shenzhen HUAFA Hengtai Co., Ltd. More of subsidiaries found in “Note VIII. Equity in other subjects”.
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards for
Business Enterprise – Basic Standards and specific principle of accounting standards issued by the Ministry of
Finance, the Company prepared and formulate the financial statement lies on the followed important accounting
policy and estimation.
2. Going concern
The Company expects that the production and sales will be in a virtuous cycle within 12 months from the end of
he reporting period, and there is no risk that affects the continued operations.
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深圳中恒华发股份有限公司 2020 年半年度报告全文
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
The following disclosure has covered the specific accounting policies and accounting estimates formulated by the Company
according to the actual production and operation characteristics.
1. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterprise
and also a true and thorough reflection to the relevant information as the Company’s financial position dated 30th
June 2020 and the operation results as well as cash flow for the first half year of 2020.
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1st January to 31st December of every
year.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle is the
determining criterion for the liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency.
5. Accounting methods for consolidation of enterprises under the same control or otherwise
1. Consolidation of enterprises under the same control
Where the Company for long term equity investment arising from business combination under common control
satisfies the combination consideration by payment of cash, transfer of non-cash assets or assumption of debt, the
carrying value of the net assets of the acquire in combined financial statement of the ultimate controller shared by
the Company as at the combination date shall be deemed as the initial investment cost of such long term equity
investment. If the equity instrument issued by combining party are consider as the combination consideration,
than the total value of the issuing shares are consider as the share capital. The difference between the initial cost of
long-term equity investment and book value of consideration (or total face value of the shares issued) paid, capital
surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.
2. Business combination not under common control
As for business combination not under common control, combination costs refer to the sum of the fair value of the
assets paid, liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control over
the acquire as at the acquisition date. As for acquiree that obtained by consolidation not under the same control,
the qualified confirmation of identified assets, liability and contingency liabilities should calculated by fair value
on day of purchased. If the consolidation cost larger than the fair value amount of identified net assets from
acquiree’s, the differences should be recognized as goodwill. If the consolidation cost less than the fair value
amount of identified net assets from acquiree’s, the differences should reckoned into current non-operating
income.
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深圳中恒华发股份有限公司 2020 年半年度报告全文
6. Preparation methods for consolidated financial statements
1. Consolidation financial statement range
The Company includes all the subsidiaries (including the separate entities controlled by the Company) into
consolidated financial statement, including companies controlled by the Company, non-integral part of the
investees and structural main body.
2. Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.
As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the
necessary adjustment is made on the subsidiaries’ financial statements in the preparation of the consolidated
financial statements according to the Company’s accounting policies and periods.
3. Offset of consolidated financial statement
The consolidated financial statements shall be prepared on the basis of the balance sheet of the parent company
and subsidiaries, which offset the internal transactions incurred between the parent company and subsidiaries and
within subsidiaries. The owner’s equity of the subsidiaries not attributable to the parent company shall be
presented as minority equity under the owner’s equity item in the consolidated balance sheet. The long term equity
investment of the parent company held by the subsidiaries, deemed as treasury stock of the corporate group as
well as the reduction of owners’ equity, shall be presented as “Less: treasury stock” under the owners’ equity item
in the consolidated balance sheet.
4. Accounting for acquisition of subsidiary through combination
For subsidiaries acquired under enterprise merger involving enterprises under common control,
the assets, liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financial
statements from the beginning of the financial year in which the combination took place. When
preparing the consolidated financial statements, for the subsidiaries acquired from business
combination not involving entities under common control, the identifiable net assets of the subsidiaries are
adjusted on the basis of their fair values on the date of acquisition.
5. Accounting treatment of disposal subsidiaries
In the case of partial disposal of long-term equity investments in subsidiaries without loss of control, in the
consolidated financial statements, the difference between the disposal price and the net asset share corresponding
to the disposal of long-term equity investments and enjoying the subsidiaries’ continued calculation from the
purchase date or the merger date is used to adjust the capital reserve (capital premium or equity premium). If the
capital reserve is insufficient to offset, the retained earnings are adjusted.
If the control power of the investee is lost due to the disposal of part of the equity investment, etc., when preparing
the consolidated financial statements, the remaining equity shall be re-measured according to its fair value on the
date of loss of control. The sum of the consideration obtained from the disposal of equity and the fair value of the
67
深圳中恒华发股份有限公司 2020 年半年度报告全文
remaining equity minus the difference between the share of the original subsidiary’s net assets that should be
continuously calculated from the purchase date or the merger date is included in the current investment income
when the control is lost and also offsets goodwill. Other comprehensive income related to the equity investment of
the original subsidiary is converted into current investment income when the control is lost.
7. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash and deposits
available for payment anytime. The cash equivalents recognized in the preparation of the cash flow statements
refers to the investment held by the Company with characteristic of short-term, strong mobility, easy transfer to
known sum cash and has slim risk from value changes.
8. Foreign currency exchange and the conversion of foreign currency statements
1. Foreign currency exchange
The approximate exchange rate of the spot exchange rate on transaction occurred should be used for standard
money conversion while foreign currency exchange occurred On the balance sheet day, the monetary items are
converted on the current rate on the balance sheet day, concerning the exchange differences between the spot
exchange rate on that date and initial confirmation or the sport exchange rate on previously balance sheet date,
should reckoned in to current gains/losses except the capitalizing on exchange differences for foreign specific
loans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost are
still measured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged.
Items of non-monetary foreign currency which was calculated by fair value, should converted by spot exchange
rate on the confirmation day of fair value, difference between the converted amount of bookkeeping currency and
original amount of bookkeeping currency, was treated as changes of fair value (including exchange rate changed)
reckoned into current gains/losses or recognized as other consolidated income.
2. Conversion of foreign currency financial statements
Upon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises,
and the affiliated enterprises on the bookkeeping standard currency different from the Company’s, the accounting
check and preparation of the consolidated financial statements are made. Assets and liabilities items in the balance
sheet are converted on the current rate on the balance sheet day; owners’ equity items besides the “retained profit”
item, the other items are converted on the actual rate. Items of revenue and expenses in profit statement, should
converted by the approximate exchange rate of spot exchange rate on occurring date. The conversion difference of
the foreign currency financial statements is listed specifically in the owners’ equity in the balance sheet. If the
foreign cash flow determined by rational system method, the approximate exchange rate of spot exchange rate on
occurring date should prevail. The cash influenced by the rate fluctuation is listed specifically in the cash flow
statement. As for the foreign operation, the conversion difference of the foreign currency statement related to the
foreign operation is transferred in proportion into the disposal of the current loss/gain.
9. Financial instrument
1. Category and recognition of financial instrument
Financial instrument is the contract that taken shape of the financial asses for an enterprise and of the financial
68
深圳中恒华发股份有限公司 2020 年半年度报告全文
liability or equity instrument for other units.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets measured at
amortized cost: ① The Company’s business model for managing financial assets is to collect contractual cash
flows as its goal; ② The contractual terms of the financial assets stipulate that the cash flow generated on a
specific date is only the payment of principal and interest based on the outstanding principal amount.
The Company classifies financial assets that meet the following conditions as financial assets measured at fair
value and whose changes are included in other comprehensive income: ① The Company’s business model for
managing financial assets is to collect contractual cash flows and sell the financial assets as its goal; ② The
contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only for the
payment of principal and interest based on the outstanding principal amount
For investment in non-trading equity instruments, the Company may irrevocably designate it as a financial asset
measured at fair value and its changes included in other comprehensive income at initial recognition. The
designation is made on the basis of a single investment, and the relevant investment meets the definition of equity
instruments from the perspective of the issuer.
Except for financial assets classified as financial assets measured at amortized cost and financial assets measured
at fair value and whose changes are included in other comprehensive income, the Company classifies the financial
assets as financial assets measured at fair value and whose changes are included in current profit or loss. At the
initial recognition, if the accounting mismatch can be eliminated or reduced, the Company can irrevocably
designate the financial asset as a financial asset measured at fair value and its changes are included in the current
profit and loss.
When the Company changes the business model for managing financial assets, it will reclassify all affected related
financial assets on the first day of the first reporting period after the business model has been changed, and will
apply future applicable methods from the date of reclassification for relevant accounting treatment, no retroactive
adjustments shall be made for previously recognized gains, losses (including impairment losses or gains) or
interest.
(2) Financial liabilities
Financial liabilities are classified as financial liabilities measured at fair value and whose changes are included in
the current profit or loss, financial liabilities formed by the transfer of financial assets that does not meet the
conditions for derecognition or continues to be involved in the transferred financial assets, and financial liabilities
measured at amortized cost at initial recognition. All financial liabilities are not reclassified.
2. Measurement of financial instruments
The initial recognition of the Company’s financial instruments is measured at fair value. For financial assets and
financial liabilities measured at fair value and whose changes are included in the current profit and loss, the
related transaction costs are directly included in the current profit and loss; for other types of financial assets or
financial liabilities, the related transaction costs are included in the initial recognition amount. For the accounts
receivable or bills receivable arising from the sale of products or the provision of labor services, not containing or
not considering significant financing components, the Company shall use the amount of consideration expected to
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深圳中恒华发股份有限公司 2020 年半年度报告全文
be received as the initial recognition amount. The subsequent measurement of financial instruments depends on
their classification.
(1) Financial assets
① Financial assets measured at amortized cost. After initial recognition, such financial assets are measured at
amortized cost by using the effective interest method. Gains or losses arising from financial assets that are
measured at amortized cost and do not belong to any hedging relationship are included in the current profit or loss
when they are derecognized, reclassified, amortized in accordance with the effective interest rate method, or
recognized for impairment.
② Financial assets measured at fair value and whose changes are included in the current profit and loss. After
initial recognition, for such financial assets (except for a part of financial assets that belong to the hedging
relationship), the fair value is used for subsequent measurement, and the resulting gains or losses (including
interest and dividend income) are included in the current profit and loss.
③ Investment in debt instruments measured at fair value and whose changes are included in other comprehensive
income. After initial recognition, the subsequent measurement of such financial assets is conducted at fair value.
Interest, impairment losses or gains calculated by using the effective interest rate method and the exchange gains
and losses are included in the current profit and loss, and other gains or losses are included in other
comprehensive income. In derecognition, the accumulated gains or losses previously included in other
comprehensive income are transferred out of other comprehensive income and included in the current profit and
loss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are included in the current profit and loss. Such
financial liabilities include transactional financial liabilities (including derivatives that belong to financial
liabilities) and financial liabilities designated to be measured at fair value and whose changes are included in the
current profit and loss. After initial recognition, the subsequent measurement of such financial liabilities is at fair
value, except for those related to hedge accounting, gains or losses (including interest expenses) resulting from
changes in the fair value of transactional financial liabilities are included in the current profit and loss. If a
financial liability designated to be measured at fair value and whose changes are included in the current profit or
loss, the amount of change in the fair value of the financial liability caused by changes in the enterprise’s own
credit risk is included in other comprehensive income, other changes in fair value are included in the current profit
and loss. If the impact of changes in the financial liability’s own credit risk included in other comprehensive
income causes or expands the accounting mismatch in profit or loss, the Company will include all gains or losses
on the financial liability in the current profit and loss.
② Financial liabilities measured at amortized cost. After initial recognition, such financial liabilities are measured
at amortized cost by using the effective interest method.
3. The Company’s methods for confirming the fair value of financial instruments
If the financial instrument has an active market, the fair value is determined by the quoted price in the active
market; if the financial instrument doesn’t have an active market, the fair value is determined by adopting the
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深圳中恒华发股份有限公司 2020 年半年度报告全文
valuation technique. Valuation techniques mainly include market approach, income approach and cost approach.
In limited circumstances, if the recent information used to determine fair value is insufficient, or the range of
possible estimated amounts of fair value is widely distributed, and the cost represents the best estimate of fair
value within this range, the cost may represent the appropriate estimates of fair value within this distribution range.
The Company uses all information on the performance and operation of the investee gettable after the initial
recognition date to determine whether the cost represents the fair value or not.
4. Confirmation basis and measurement method for the transfer of liabilities of financial assets
(1)Financial assets
If the Company’s financial asset meets one of the following conditions, it shall be terminated for confirmation:
①The contract right to receive the cash flow of the financial asset is terminated; ② The financial asset has been
transferred, and the Company has transferred almost all risks and rewards of ownership of the financial asset; ③
The financial asset has been transferred, although the Company has neither transferred nor retained almost all the
remuneration in the ownership of the financial asset, it has not retained control of the financial asset.
If the Company neither transfers nor retains almost all the remuneration in the ownership of financial assets, and
retains control over the financial assets, the relevant financial assets are recognized according to the extent that
they continue to be involved in the transferred financial assets, and the related liabilities are accordingly
recognized.
If the transfer of financial assets meets the conditions for derecognition, the difference between the following two
amounts shall be included in the current profit and loss: ① The book value of the transferred financial assets on
the date of derecognition; ② The sum of the consideration received for the transfer of financial assets and the
amount corresponding to the derecognized part of the cumulative amount of changes in fair value that was directly
included in other comprehensive income (the financial assets involved in the transfer are classified as financial
assets measured at fair value and their changes are included in other comprehensive income).
If partial transfer of financial assets satisfies the conditions for derecognition, the book value of the transferred
financial assets as a whole is apportioned respectively according to the relative fair value on the transfer date
between the derecognition portion and the non- derecognition portion, and then the difference of following two
amounts is included in the current profit and loss: ①The book value of the derecognition part on the derecognition
date; ②The sum of the consideration received in the derecognition part and the amount corresponding to the
derecognized part of the cumulative amount of changes in fair value that was directly included in other
comprehensive income (the financial assets involved in the transfer are classified as financial assets measured at
fair value and their changes are included in other comprehensive income).
(2) Financial liability
If the current obligation of the financial liability (or part of it) has been discharged, the Company derecognizes the
financial liability (or part of the financial liability).
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If the financial liability (or part of it) is derecognized, the Company shall include the difference between its book
value and the consideration paid (including non-cash assets transferred out or liabilities assumed) into the current
profit and loss.
10.Note receivable
Found more in 11.Account receivable
11.Account receivable
1. How to determine expected credit losses
Based on expected credit losses, the Company makes impairment accounting treatment and confirm loss
provisions for financial assets (including receivables) measured at amortized cost and financial assets (including
receivables financing) that are measured at fair value and whose changes are included in other comprehensive
income, and lease receivables.
The Company assesses on each balance sheet date whether the credit risk of relevant financial instruments has
increased significantly since initial recognition, and divides the process of credit impairment of financial
instruments into three stages, and adopts different accounting treatment methods for financial instruments
impairment at different stages: (1) In the first stage, if the credit risk of a financial instrument has not increased
significantly since its initial recognition, the Company shall measure the loss provisions according to the expected
credit losses of the financial instrument in the next 12 months, and calculate the interest income according to its
book balance (i.e. without deducting impairment) and actual interest rate; (2) In the second stage, if the credit risk
of a financial instrument has increased significantly since the initial recognition but no credit impairment has
occurred, the Company shall measure the loss provisions according to the expected credit losses of the financial
instrument during the entire duration, and calculate the interest income according to its book balance and actual
interest rate; (3) In the third stage, if the credit impairment occurs after initial recognition, the Company shall
measure loss provisions based on the expected credit losses of the financial instrument for the entire duration, and
calculate the interest income according to its book balance and actual interest rate.
(1) Methods of measuring loss provisions for financial instruments with lower credit risk
For financial instruments with lower credit risk on the balance sheet date, the Company can directly make the
assumption that the credit risk of the instrument has not increased significantly since the initial recognition
without comparing with the credit risk at the initial recognition.
If the default risk of financial instruments is low, the debtor’s ability to fulfill its contractual cash flow obligations
is strong in the short term, and even if there are adverse changes in the economic situation and operating
environment over a long period of time, it may not necessarily reduce the borrower’s ability to fulfill the
contractual cash flow obligations, the financial instrument shall be considered to have lower credit risk.
(2) Methods of measuring loss provisions for accounts receivable and lease receivables
①Receivables that do not contain significant financing components. For the receivables formed by transactions
regulated by “Accounting Standards for Business Enterprises No.14-Revenue” and without containing significant
financing components, the Company adopts a simplified method, that is, it always calculates the loss provisions
based on the expected credit losses for the entire duration.
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Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly
on the basis of individual financial assets or financial assets portfolios. The Company divides the notes receivable
and accounts receivable into several portfolios based on the characteristics of credit risk, and calculates the
expected credit losses on the basis of the portfolios, the basis for determining the portfolios is as follows:
Accounts receivable portfolio 1: A portfolio that uses the aging of accounts receivables as credit risk
characteristics,
Accounts receivable portfolio 2: Combination of related parties included in the scope of consolidated statements
Notes receivable portfolio 1: Same as the division of accounts receivable portfolio
Notes receivable portfolio 2: Management evaluates that this type of fund is bank acceptance portfolio with lower
credit risk
For the accounts receivable and notes receivable being divided into portfolio 1, the Company refers to the
historical credit loss experience, combines with the current conditions and the prediction of future economic
situation, and prepares a comparison table of the aging of accounts receivable and the expected credit loss rate of
the entire duration, and calculates the expected credit losses.
For accounts receivable and notes receivable being divided into portfolio 2, the Company refers to historical credit
loss experience, combines with the current conditions and the predictions of future economic conditions, and
calculates the expected credit losses of 0% through default risk exposure and expected credit loss rate for the
entire duration.
②Accounts receivables and leases receivables that contain significant financing components. For accounts
receivables that contain significant financing components and leases receivables regulated by “Accounting
Standards for Business Enterprises No. 21-Leases”, the Company measures loss provisions in accordance with the
general method, that is, the “third stage” model.
(3)Accrual method of bad debt provision for those accrual by account age as the portfolio
Account age Expected credit loss rate of receivable (%)
Within one year (one year 0
included)
1-2 years 5
2-3 years 10
Over 3 years 30
2. Accounting treatment methods of expected credit losses
In order to reflect the changes in the credit risk of financial instruments since initial recognition, the Company
remeasures the expected credit losses on each balance sheet date, and the resulting increase or reversal of the loss
provisions should be counted as an impairment loss or gain and included in the current profit and loss, and based
on the type of financial instrument, offsets the book value of the financial asset listed in the balance sheet or
includes in the estimated liability (loan commitment or financial guarantee contract) or includes in other
comprehensive income (debt investments measured at fair value and whose changes are included in other
comprehensive income).
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12.Receivable financing
Accounts receivable financing reflects the bills receivable and receivables that are measured at fair value on the
balance sheet date and whose changes are included in other comprehensive income, for example, the company
uses bank acceptance discounts or endorsements as a daily fund management business model, then the company
aims to both collect contractual cash flow and sell the bank’s acceptance bill, and classifies it as a financial asset
measured at fair value and whose changes are included in other comprehensive income. The occasional bank
acceptance discounts or endorsements not used as a daily fund management business model cannot be classified
as financial assets measured at fair value and whose changes are included in other comprehensive income or be
included in accounts receivable financing.
Accounting treatment reference to the 9.4 Classification, recognition basis and measurement method of financial
assets above mentioned
13. Other account receivable
Determination and accounting treatment on the expected credit losses of other account receivable
The Company measures the loss provisions according to the general method, that is, the “third stage” model.
When measuring the credit impairment of financial instruments, the Company considers the following factors to
assess whether the credit risk has increased significantly:
The Company divides other receivables into several portfolios based on the nature of the payments, and calculates
the expected credit losses on the basis of the portfolio, the basis for determining the portfolio is as follows:
Other receivables portfolio 1: Combination of non-related parties that make provision for impairment according to
the expected loss rate
Other receivables portfolio 2: Combination of related parties included in the scope of consolidated statements
For other receivables being divided into portfolio 1, the Company refers to the historical credit loss experience,
combines with the current conditions and the prediction of future economic situation, and prepares a comparison
table of the aging of accounts receivable and the expected credit loss rate of the entire duration, and calculates the
expected credit losses.
For other receivables being divided into portfolio 2, the Company refers to historical credit loss experience,
combines with the current conditions and the predictions of future economic conditions, and calculates the
expected credit losses of 0% through default risk exposure and expected credit loss rate for the entire duration.
Accrual method of bad debt provision for those accrual by account age as the portfolio
Account age Expected credit loss rate of other receivable (%)
Within one year (one year 0
included)
1-2 years 5
2-3 years 10
Over 3 years 30
14. Inventory
1. Categories of inventory
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深圳中恒华发股份有限公司 2020 年半年度报告全文
The inventory is goods or manufactured products held for sale, products in process, and materials and matters
utilized in the production or supply of labor. Mainly including raw material, revolving materials (wrappage and
low-value consumption goods etc.), outside processing materials, goods in process, semi-finished goods, stocks
and so on.
2. Accounting method for inventory delivery
When inventories are issued, the actual cost is determined by the first in first out method.
3. Accrual method inventory falling price reserves
On the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value,
and the provision for the falling price reserves is accrued on each inventory item; however, as for the inventory of
large quantity and low price, the provision is accrued on the inventory category.
4. Inventory system
Inventory system of the Company is perpetual inventory system
5. Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
15. Long-term equity investment
1. Recognition of initial investment cost
For a long-term equity investment obtained by a business combination, if it is a business combination under the
same control, take the share of the combine party obtained in the book value of the net assets in the consolidated
financial statements of the ultimate controlling party on the combination date as the initial investment cost; in the
case of the consolidation of enterprises not under the same control, recognized as the initial cost is the recognized
consolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, the
initial investment cost is the actual purchase payment. As for the long term equity investment obtained by the
equity securities offering, the initial investment cost is the fair value of the equity securities. As for the long-term
equity investment obtained by debt reorganization, initial investment cost of such investment should determine by
relevant regulation of the “Accounting Standards for Business Enterprise No.12- Debt Reorganization”; as for the
long term equity investment obtained by the exchange of the non-monetary assets, the initial investment cost is
recognized on the relevant rules in the “Accounting Standards for Business Enterprise No. 7- Exchange of
Non-Monetary Assets”
2. Subsequent measurement and profit or loss recognition
Where the company has a control over the investee, long-term equity investments are measured using cost method.
Long-term equity investments in associates and joint ventures are measured using equity method. Where part of
the equity investments of an investor in its associates are held indirectly through venture investment institutions,
common fund, trust companies or other similar entities including investment linked insurance funds, such part of
equity investments indirectly held by the investor shall be measured at fair value through profit or loss according
to according to relevant requirements of Accounting Standards for Business Enterprises No.22—Recognition
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深圳中恒华发股份有限公司 2020 年半年度报告全文
and measurement of Financial Instruments regardless whether the above entities have significant influence on
such part of equity investments, while the remaining part shall be measured using equity method.
3. Basis of conclusion for common control and significant influence over the investee
Joint control over an investee refers to where the activities which have a significant influence on return on certain
arrangement could be decided only by mutual consent of the investing parties sharing the control, which includes
the sales and purchase of goods or services, management of financial assets, acquisition and disposal of assets,
research and development activities and financing activities, etc.; Significant influence on the investee refers to
that: significant influence over the investee exists when holding more than 20% but less than 50% of the shares
with voting rights or even if the holding is below 20%, there is still significant influence if any of the following
conditions is met: there is representative in the board of directors or similar governing body of the investee;
participation in the investee’s policy setting process; assign key management to the investee; the investee relies on
the technology or technical information of the investing company; or major transactions with the investee.
16. Investment real estate
Measurement for investment real estate
Cost method
Depreciation or amortization method
The types of investment real estate of the Company include the leased land use rights, leased buildings, and land
use rights held and prepared for transfer after appreciation. Investment real estate is initially measured at cost and
subsequently measured by using the cost model.
The leased buildings in the Company’s investment property adopts straight-line depreciation to calculate and
distill depreciation, specific accounting policy are same as part of the fixed assets. The leased land use rights in
the investment property and the land use rights to be transferred after appreciation adopt straight-line amortization,
specific accounting policy are same as part of the intangible assets.
17. Fixed assets
(1) Recognition
Fixed assets refers to the tangible assets holding for purpose of producing goods, providing labor services, leasing
or operation management, which has one accounting fiscal year of using life. Meanwhile as up to the following
conditions, they are recognized: the economic interest related to the fixed assets probably flow into the Company;
the cost of the fixed assets can be measured reliably.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation life (year) Salvage rate
rate
Straight-line
House building 20-50 10.00 1.80-4.50
depreciation
Straight-line
Machinery equipment 10 10.00 9.00
depreciation
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Straight-line
Mold equipment 3 10.00 30.00
depreciation
Transportation Straight-line
5 10.00 18.00
equipment depreciation
Straight-line
Instrument equipment 5 10.00 18.00
depreciation
Straight-line
Tool equipment 5 10.00 18.00
depreciation
Straight-line
Office equipment 5 10.00 18.00
depreciation
The fixed assets of the Company mainly include house and buildings, machinery equipment, electronic equipment,
transportation equipment, etc.; the method of depreciation is based on the straight-line method. Determine the
useful life and estimated net residual value of fixed assets according to the nature and use of various types of fixed
assets. At the end of the year, review the useful life, estimated net residual value, and depreciation method of fixed
assets, if there is a difference from the original estimate, make corresponding adjustments. Except for the fixed
assets that have been fully depreciated and continue to be used and the land that is separately accounted for, the
Company calculates and depreciates all fixed assets.
(3) Recognition basis, valuation and depreciation method for fixed assets under financing lease
The fixed assets under financing lease are the lease that has substantially transferred all the risks and rewards
associated with asset ownership. The initial valuation of the fixed assets under financing lease is to take the lower
one between the fair value of the leased assets and the present value of the minimum lease payments on the start
date of the lease period as the entry value; the subsequent valuation of the fixed assets under financing lease
adopts the depreciation policy consistent with the own fixed assets to make depreciation and impairment
provision.
18. Construction in process
Construction in process of the Company divided as self-run construction and out-bag construction. The
Construction in process of the Company carried forward as fixed assets while the construction is ready for the
intended use. Criteria of the expected condition for use should apply one of the follow conditions: The substance
construction (installation included) of the fixed assets has completed all or basically; As the projects have been in
test production or operation, and the results show that the assets can operate properly and produce the qualified
products stably, or the test operation result shows the assets can operate or open properly. The expenditure of the
fixed assets on the construction is a little or little. The fixed assets of the project constructed have been up to the
requirements of the design or contract, or basically up to.
19. Borrowing expenses
1. Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it is
capitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on the
actual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capital
assets, investment real estate, and inventory reaching the expectant availability or sale ability.
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2. Calculation of the capitalization
Capitalization term: the period from the time starts to capitalization to the time the capitalization ends. The period
of capitalization suspended is not included. The capitalization of borrowing expenses should be suspended while
the abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction or
production.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual
interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or the
return of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum is
recognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, and
times the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount or
premium to be diluted in every accounting period is recognized in the actual rate method.
The effective interest method is the method for the measurement of the diluted discount or premium or interest
expenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the future
cash flow in the expectant duration period as the current book value of the borrowing.
20. Intangible assets
(1) Accounting method, service life and impairment test
1. Accounting method of intangible assets
The Company’s intangible assets are measured initially on cost. The intangible assets purchased in are taken as the
actual cost on the actual payment and relevant expenditure. As for the intangible assets invested in by the
investors, the actual cost is recognized on the value stipulated in the contract or agreement; however, if what is
stipulated in the contract or agreement is not fair value, the actual cost is recognized on fair value. As for the
self-developed intangible assets, their cost is the actual total expenditure before reaching the expectant purpose.
The follow-up measurements of the Company’s intangible assets respectively are: the line amortization method is
taken on the intangible assets of finite service life, and at the yea-end, the check is taken on the service life and
dilution of the intangible assets, and the corresponding adjustment is made if there is inconsistency with the
previous expected ones. As for the intangible assets of uncertain service life, it is not diluted, however, the service
life is checked at year-end; If there is solid evidence to its finite service life, its service life is estimated and
diluted in straight line method.
2. Judgment basis for uncertain service life
The Company will not be able to foresee the time limit within which the asset brings economic benefits to the
company, or the intangible assets with uncertain useful life identified as intangible assets with uncertain useful life.
The basis for judging the uncertainty of useful life is from the contractual rights or other legal rights, but the
contract stipulates or the law rules there is no definite useful life; combining the same industry case and or the
relevant expert argumentation, it is still incapable of judging the time limit within which the intangible assets
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bring economic benefits to the company.
At the end of each year, review the useful life of intangible assets with indefinite useful life by mainly adopting
the bottom-up method, the relevant departments of intangible assets take the basic review and evaluate whether
there is any change in the judgment basis for indefinite useful life.
(2) Accounting policies for internal research and development expenditure
Expenditures for internal research and development projects at the research phase shall be included in the current
profit or loss when incurred; expenditures incurred at the development phase and recognized as intangible assets
shall be transferred to intangible assets accounting.
21. Long-term assets impairment
Long-term equity investments, investment properties measured at cost and long-term assets such as fixed assets,
construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets and
goodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. If
the result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount,
a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future
cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized on
the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the
recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest
group of assets that is able to generate independent cash inflows.
Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective of
whether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carrying
amount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonable
basis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to
each of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higher
than its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of the
goodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (other
than the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of each
asset.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
22. Long-term deferred expenditure
The Company’s long-term deferred expenditure are expenses paid out and with one year above (one-year
excluded) benefit period. The long-term deferred expenses are diluted by periods according to the benefit period.
As the long-term deferred expenses cannot enable the accounting period’s beneficiary, all dilution values of the
project undiluted yet, are transferred into the current loss/gain.
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23. Employees remuneration
(1) Accounting for short-term benefits
In the period of employee services, short-term benefits are actually recognized as liabilities and charged to profit
or loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for the
current period. At the time of actual occurrence, The Company’s employee benefits are recorded into the profits
and losses of the current year or assets associated costs according to the actual amount. The non-monetary
employee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injury
insurance, maternity insurance and other social insurances, housing fund and labor union expenditure and
personnel education that the Company paid for employees, the Company should recognize corresponding
employees benefits payable according to the appropriation basis and proportion as stipulated by relevant
requirements and recognize the corresponding liabilities and include these expenses in the profits or losses of the
current period or recognized as respective assets costs.
(2) Accounting for post-employment benefits
During the accounting period in which an employee provides service, the amount payable calculated under
defined contribution scheme shall be recognized as a liability and recorded in profit and loss of the current period
or in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method and
attribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to the
service period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefits
The Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlier
of the following dates: when the Company can no longer withdraw the offer of those benefits; and when the
Company recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefits
The Company provides other long-term employee benefits to its employees. For those falling within the scope of
defined contribution scheme, the Company shall account for them according to relevant requirements of the
defined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets of
the other long-term employee benefits according to relevant requirements of the defined contribution scheme.
24. Accrual liability
The obligation related to contingencies is the current obligation assumed by the company, and performing this
obligation may result in an outflow of economic benefits, and this obligation can be determined as the estimated
liabilities when the amount can be reliably measured. The Company makes initial measurement in accordance
with the best estimate for performing the related current obligation, if the expenditure as needed has a continuous
range, and the likelihood of occurrence of various results in this range is the same, the best estimate is determined
by the median value within the range; if a number of items are involved, the best estimate is determined by the
calculation of various possible outcomes and related probabilities.
At the balance sheet date, the book value of estimated liabilities should be rechecked, if there is conclusive
evidence indicates that this book value cannot truly reflect the current best estimate, and then the book value
should be adjusted in accordance with the current best estimate.
25. Revenue(Income)
Accounting policy for recognition and measurement of revenue(income)
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深圳中恒华发股份有限公司 2020 年半年度报告全文
1. Sales of goods
The Company shall ascertain the revenue incurred by selling goods in accordance with the received or receivable
price stipulated in the contract or agreement signed between the enterprise and the buyer unless the following
conditions are met simultaneously: ① the significant risks and rewards of ownership of the goods have been
transferred to the buyer by the enterprise; ② the enterprise retains neither continuous management right that
usually keeps relation with the ownership nor effective control over the sold goods; ③the relevant amount of
revenue can be measured in a reliable way; ④ relevant economic benefits may flow into the enterprise and ⑤ the
relevant costs incurred or to be incurred can be measured in a reliable way.
Money collection for the contract or agreement use the mode of deferred, actually has the financing features. The
revenue of commodity sales is recognized by the fair value of the money receivable on contract or agreement.
2. Labor service providing
If an enterprise can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the
labor services it provides, it shall recognize the revenue from providing services employing the
percentage-of-completion method. The enterprise can ascertain the schedule of completion
(percentage-of-completion) under the transaction concerning the providing of labor services based on calculation
of completed works.
If an enterprise cannot, on the date of the balance sheet, measure the result of a transaction concerning the
providing of labor service in a reliable way, it shall be conducted in accordance with the following circumstances,
respectively: ①if the cost of labor services incurred is expected to be compensated, the revenue from the
providing of labor services shall be recognized in accordance with the amount of the cost of labor services
incurred, and the cost of labor services shall be carried forward at the same amount; ②if the cost of labor services
incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, and
no revenue from the providing of labor services may be recognized.
3. Transition of asset use right
When economic benefits relating to transition of asset use right is likely to inflow into the Company and the
relevant income can be measured reliably, the Company shall recognize such income from transition of asset use
right.
The Company’s specific income recognition method: it is recognized as income when the product has been sent
out and signed for receipt by the other party for domestic sales; it is recognized as income when the product has
been shipped and its customs procedures have been completed with the relevant declaration documents for export
sales. Income from house leases and property management is recognized according to the lease contract
agreement, receipt of relevant payments, or relevant collection proof.
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Different business models of similar business resulted in different accounting policies for revenue recogn ition
N/A
26. Government subsidy
1.Category of government subsidy and accounting treatment
Governments subsidy of the Company refer to the monetary and non-monetary assets obtained from government
for free (excluding the capital invested by government as an owner). If the government grants are monetary assets,
it shall be measured according to the amount received or receivable. If the government grants are non-monetary
assets, it shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be measured at the
nominal amount.
Government grants related to daily activities are included in other income in accordance with the economic
business. Government grants not related to daily activities are included in the non-operating income and
expenditure.
Government grants that the government documents clearly stipulate to be used for the purchase and establishment
or forming long-term assets in other way are recognized as government grants related to assets. For the
government grants that the government documents do not clearly specify the subsidy target and can form
long-term assets, the part corresponding to the asset value is recognized as the government grants related to the
assets, and the rest is recognized as the government grants related to the income. For the government grants which
are difficult to be distinguished, recognize the whole as the government grants related to the income. Government
grants related to assets are recognized as deferred income. The amount recognized as deferred income is included
in the current profit and loss in a reasonable and systematic manner within the useful life of the relevant asset.
Government grants other than government grants related to assets are recognized as government grants related to
income. If the government grants related to the income are used to compensate the related expenses or losses of
the enterprise in the future period, recognize them as deferred income and include them in the current profit and
loss during the period of recognizing the related expenses. The government grants used to compensate the relevant
expenses or losses incurred by the enterprise are directly included in the current profit and loss.
The Company obtained the policy preferential loan interest subsidy, and the finance allocated the interest subsidy
funds to the loan bank, and the loan bank provides loans to the Company at a preferential interest rate, take the
actual amount of the loan received as the entry value of the loan, and calculate the relevant borrowing costs
according to the loan principal the policy preferential interest rate. If the finance directly appropriates the interest
subsidy funds to the Company, the Company will offset the relevant borrowing costs with the corresponding
interest subsidy.
2. Time points to recognize the government grants
Government grants are recognized when they meet the conditions attached to government grants and can be
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深圳中恒华发股份有限公司 2020 年半年度报告全文
received. Government grants measured in accordance with the amount receivable are recognized when there is
conclusive evidence at the end of the period that it meets the relevant conditions stipulated in the financial support
policy and is expected to receive financial support funds. Other government grants other than government grants
measured in accordance with the receivable amount are recognized when the grant is actually received.
27. Deferred income tax asset / deferred income tax liability
1. Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for an item
that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law, the tax
base shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall be
determined according to the applicable tax rate in period of assets expected to recover or liability expected to pay
off.
2. The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which it is
most likely to obtain and which can be deducted from the deductible temporary difference. On balance sheet date,
if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct the deductible
temporary difference, the un-confirmed deferred income tax assets in previous accounting period shall be
recognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred income tax
assets, book value of the deferred income tax assets shall be kept in decreased.
3. The taxable temporary differences related to the investments of subsidiary companies and associated enterprises
shall recognized as deferred income tax liability, unless the Company can control the time of the reverse of
temporary differences and the temporary differences are unlikely to be reversed in the expected future. As for the
deductible temporary difference related to the investment of the subsidiary companies and associated enterprises,
deferred income tax assets shall be recognized while the temporary differences are likely to be reversed in the
expected future and it is likely to acquire any amount of taxable income tax that may be used for making up the
deductible temporary differences.
28. Leasing
(1) Accounting treatment for operating lease
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either
included in the cost of related asset or charged to profit or loss for the period.
(2) Accounting treatment for finance lease
Accounting treatment for finance lease: At the commencement of the lease term, the Group records the leased
asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimum
lease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge,
using the effective interest method amortization during the lease term. Minimum lease payments deducting
unrecognized financing charges are listed as long-term payable.
29. Changes in important accounting policies and estimates
(1) Changes in important accounting policies
√ Applicable □ Not applicable
Content and reason of changes in
Approval procedure Note
accounting policies
On 5 July 2017, the Ministry of Finance Deliberated and approved by 3rd session
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深圳中恒华发股份有限公司 2020 年半年度报告全文
issued the Notice on Revision and of 10th BOD
Issuance of Accounting Standards for
Business Enterprise No.14- Revenue
(Cai Kuai [2017] No.22), enterprises that
are listed both at home and abroad, as
well as those listed overseas and
prepared their financial statements using
IFRS or Accounting Standards for
Business Enterprise, shall enter into
force as of 1 Jan. 2018; other enterprise
listed at home shall enter into force as of
1 Jan. 2020; and the non-listed
enterprises that implement the
Accounting Standards for Business
Enterprise shall enter into force as of 1
Jan. 2021. In accordance with the
requirements of the above document, the
Company will implement the New
Revenue Standards as of 1 Jan. 2020,
and will make changes to the relevant
accounting policies in line with the
provisions of the New Revenue
Standards.
N/A
(2)Changes in important accounting estimates
□ Applicable √Not applicable
(3) Adjustment the financial statements at the beginning of the first year of implementation of new revenue
standards and new leasing standards since 2020
Applicable
Is it necessary to adjust the items of balance sheet at beginning of the year
□Yes √No
Explanation on the items of balance sheet at beginning of the year without adjustment
Implementation of the New Revenue Standards has no impact on the statement of the Company
(4)Retrospective adjustment of early comparison data description when initially implemented the new
revenue standards and new leasing standards since 2020
□ Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
Taxes Taxation basis Tax rate
VAT Domestic sales revenue 16%, 13% 6%, 5%, 3%
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 15%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%, 1.5%
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Property tax 0% of original value of the property 1.2%
Explain the different taxation entity of the enterprise income tax
Taxation entity Income tax rate
Shenzhen Zhongheng Huafa Co., Ltd. 25%
Wuhan Hengfa Technology Co., Ltd. 15%
2. Tax preferences
According to the “Measures for the Determination of High-tech Enterprises”, and through the enterprise
application, expert review, and public announcement and other procedures, the Company’s wholly-owned
subsidiary, Wuhan Hengfa Technology Co., Ltd., has been identified as a high-tech enterprise, and obtained the
“High-tech Enterprise Certificate” jointly issued by the Science and Technology Department of Hubei Province,
Hubei Provincial Finance Department, Hubei Provincial Office, SAT, and Local Taxation Bureau of Hubei
Province on November 28, 2017, the certificate number is GR201742001840, which is valid for 3 years. The
applicable corporate income tax rate of the subsidiary Wuhan Hengfa Technology Co., Ltd. for 2020 was 15%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
RMB/CNY
Item Closing balance Opening balance
Cash on hand 363,912.99 432,301.32
Bank deposit 23,000,522.81 37,660,862.75
Other monetary fund 2,529,797.38 2,336.93
Total 25,894,233.18 38,095,501.00
The total amount of money that has
restrictions on use due to mortgage, 4,081,265.38 1,450,439.39
pledge or freezing
Other explanation
Other monetary funds are bank acceptance deposits.
2. Account receivable
(1)Category
RMB/CNY
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
Category provision Book Book
Amoun Proport Amoun Accrua value Amoun Proport Amoun Accrual value
t ion t l ratio t ion t ratio
Account receivable
with bad debt 13,146, 13,146, 100.00 13,146, 13,146, 100.00
7.46% 8.65%
provision accrual 290.18 290.18 % 290.18 290.18 %
on a single basis
Including:
Ending Account
7,556,3 7,556,3 100.00 7,556,3 7,556,3 100.00
receivable with 4.29% 4.29%
63.72 63.72 % 63.72 63.72 %
single significant
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深圳中恒华发股份有限公司 2020 年半年度报告全文
amount and
withdrawal bad
debt provision on
single basis
Ending Account
receivable with
single minor
5,589,9 5,589,9 100.00 5,589,9 5,589,9 100.00
amount but with 3.17% 3.17%
26.46 26.46 % 26.46 26.46 %
bad debts provision
accrued on a single
basis
Account receivable
162,98 162,98 138,75
with bad debt 92.54 4,188.0 4,188.0 138,755,
8,083.3 0.00% 3,895.2 9,879.4 91.35% 0.00%
provision accrual % 6 6 691.43
3 7 9
on portfolio
Including:
Take account ages
of receivables as a 162,98 162,98 138,75
92.54 4,188.0 4,188.0 138,755,
combination of 8,083.3 0.00% 3,895.2 9,879.4 91.35% 0.00%
% 6 6 691.43
credit risk 3 7 9
characteristics
176,13 162,98 151,90
100.00 13,150, 100.00 13,150, 138,755,
Total 4,373.5 7.47% 3,895.2 6,169.6 4.53%
% 478.24 % 478.24 691.43
1 7 7
Accrual of bad debt provision on single basis: 5,589,926.46 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Hong Kong Haowei
1,870,887.18 1,870,887.18 100.00% Uncollectible
Industrial Co. Ltd.
TCL ACE ELECTRIC
APPLIANCE
1,325,431.75 1,325,431.75 100.00% Uncollectible
(HUIZHOU) CO.,
LTD.
Qingdao Haier Parts
1,225,326.15 1,225,326.15 100.00% Uncollectible
Procurement Co., Ltd.
SKYWORTH
Multimedia 579,343.89 579,343.89 100.00% Uncollectible
(Shenzhen) Co., Ltd.
Shenzhen Portman
Bowling Club Co., 2,555,374.75 2,555,374.75 100.00% Uncollectible
Ltd.
Total 7,556,363.72 7,556,363.72 -- --
Accrual of bad debt provision on single basis: 5,587,643.49 Yuan
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深圳中恒华发股份有限公司 2020 年半年度报告全文
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Huixin
Video Technology Co., 381,168.96 381,168.96 100.00% Uncollectible
Ltd.
Shenzhen Wandelai
Digital Technology 351,813.70 351,813.70 100.00% Uncollectible
Co., Ltd.
Shenzhen Dalong
344,700.00 344,700.00 100.00% Uncollectible
Electronic Co., Ltd.
Shenzhen Keya
332,337.76 332,337.76 100.00% Uncollectible
Electronic Co., Ltd.
Shenzhen Qunping
304,542.95 304,542.95 100.00% Uncollectible
Electronic Co., Ltd.
China Galaxy
Electronics (Hong 288,261.17 288,261.17 100.00% Uncollectible
Kong) Co., Ltd.
Dongguan Weite
274,399.80 274,399.80 100.00% Uncollectible
Electronic Co., Ltd.
Chuangjing 247,811.87 247,811.87 100.00% Uncollectible
Hong Kong New
Century Electronics 207,409.40 207,409.40 100.00% Uncollectible
Co., Ltd.
Shenyang Beitai
203,304.02 203,304.02 100.00% Uncollectible
Electronic Co., Ltd.
Beijing Xinfang Weiye
193,000.00 193,000.00 100.00% Uncollectible
Technology Co., Ltd.
TCL Electronics
145,087.14 145,087.14 100.00% Uncollectible
(Hong Kong) Co., Ltd.
Huizhou TCL Xinte
142,707.14 142,707.14 100.00% Uncollectible
Electronics Co., Ltd.
SkyWorth – RGB
133,485.83 133,485.83 100.00% Uncollectible
Electronic Co., Ltd.
Wuhan Hongxin
Communication 2,282.97 2,282.97 100.00% Uncollectible
Technology Co., Ltd.
Other 2,037,613.75 2,037,613.75 100.00% Uncollectible
Total 5,589,926.46 5,589,926.46 -- --
Accrual of bad debt provision on single basis:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual of bad debt provision on portfolio: 4,188.06 Yuan
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深圳中恒华发股份有限公司 2020 年半年度报告全文
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Within one year 162,906,849.90
1-2 years 78,705.66 3,935.28 5.00%
2-3 years 2,527.77 252.78 10.00%
Over 3 years
Total 162,988,083.33 4,188.06 --
Explanation on portfolio basis:
Take account ages of receivables as a combination of credit risk characteristics
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Within one year(One year included) 162,906,849.90
1-2 years 78,705.66
2-3 years 2,527.77
Over 3 years 13,146,290.18
Over 5 years 13,146,290.18
Total 176,134,373.51
(2)Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Opening Closing
Category Collected or
balance Accrual Written-off Other balance
reversal
Take account
ages of
receivables as a
4,188.06 4,188.06
combination of
credit risk
characteristics
Total 4,188.06 4,188.06
Including major amount bad debt provision that collected or reversal in the period:
RMB/CNY
Enterprise Amount collected or reversal Collection by
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深圳中恒华发股份有限公司 2020 年半年度报告全文
(4)Top 5 account receivables at ending balance by arrears party
RMB/CNY
Closing balance of account Proportion in total account Closing balance of bad debt
Company
receivable receivables at year-end provision
Qingdao Haidayuan
Purchasing Service Co., 40,178,068.82 22.81%
Ltd.
Hong Kong Yutian
International Investment 39,240,084.73 22.28%
Co., Ltd.
ViewSonic Technology
20,316,906.99 11.53%
(China) Co., Ltd.
Viewsonic International
12,471,107.43 7.08%
Copera
Wuhan Edmond
8,322,183.18 4.72%
Technology Co., Ltd.
Total 120,528,351.15 68.42%
3. Receivable financing
RMB/CNY
Item Closing balance Opening balance
Note receivable 29,776,291.10 42,096,834.02
Total 29,776,291.10 42,096,834.02
Receivable financing Changes in the period and changes in fair value
□ Applicable √ Not applicable
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
Other explanation:
The amount of pledged notes receivable at the end of the year is 9,294,702.94 yuan, and the amount of notes receivable endorsed or
discounted at the end of the year but not yet due at the balance sheet date is 83,072,587.83 yuan. At the end of the year, there is no bill
converted into accounts receivable due to the drawer's failure to perform the contract.
4. Account paid in advance
(1) By account age
RMB/CNY
Closing balance Opening balance
Account age Amount Ratio Amount Ratio
Within one year 21,510,905.11 97.41% 22,879,096.29 99.44%
1-2 years 114,550.00 0.52% 128,541.17 0.56%
2-3 years 457,946.44 2.07%
Total 22,083,401.55 -- 23,007,637.46 --
Explanation on reasons of failure to settle on important account paid in advance with age over one year:
Nil
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深圳中恒华发股份有限公司 2020 年半年度报告全文
(2)Top 5 account paid in advance at ending balance by prepayment object
Company Closing balance Proportion in total accounts
paid in advance (%)
Hong Kong Yutian International Investment Co., Ltd. 7,712,238.37 34.92%
Haier Digital Technology (Qingdao) Co., Ltd. 4,857,494.00 22.00%
Hubei Century United Innovation Technology Co., Ltd. 2,422,299.74 10.97%
Nanjing Zhongdian Panda LCD Technology Co., Ltd. 1,177,502.40 5.33%
Guangzhou Shikun Electronic Technology Co., Ltd. 1,102,431.05 4.99%
Total 17,271,965.56 78.21%
Other explanation:
Nil
5. Other account receivable
RMB/CNY
Item Closing balance Opening balance
Other account receivable 4,804,531.82 6,351,361.16
Total 4,804,531.82 6,351,361.16
(1)Other account receivable
1) By nature
RMB/CNY
Nature Closing book balance Opening book balance
Margin and deposit 1,611,408.99 1,583,408.99
Borrow money 2,135,739.46 1,944,700.12
Intercourse funds 8,912,181.51 11,534,893.51
Rent receivable 5,847,389.48
Other 7,209,793.66 505,560.36
Less: bad debt provision -15,064,591.80 -15,064,591.30
Total 4,804,531.82 6,351,361.16
2) Accrual of bad debt provision
RMB/CNY
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Expected credit
Bad debt provision the entire duration the entire duration (with Total
losses over next 12
(without credit credit impairment
months
impairment occurred) occurred)
Balance on Jan. 1,
252,531.52 14,812,059.78 15,064,591.30
2020
Balance of Jan. 1, 2020
—— —— —— ——
in the period
Balance on Jun. 30,
252,531.52 14,812,059.78 15,064,591.30
2020
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
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深圳中恒华发股份有限公司 2020 年半年度报告全文
RMB/CNY
Account age Closing balance
Within one year(One year included) 3,813,383.34
1-2 years 447,859.44
2-3 years 3.00
Over 3 years 15,607,877.84
3-4 years 2,250,126.00
Over 5 years 13,357,751.84
Total 19,869,123.62
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Opening Closing
Category Collected or
balance Accrual written-off Other balance
reversal
Phase I 252,531.52 252,531.52
Phase III 14,812,059.78 14,812,059.78
Total 15,064,591.30 15,064,591.30
Nil
Including the important amount collected or switches back in the period：
RMB/CNY
Company Amount collected or switches back Way of collection
Nil
4) Top 5 other account receivables at ending balance by arrears party
RMB/CNY
Ratio in total
Closing balance of
Enterprise Nature Closing balance Account age ending balance of
bad debt reserve
other receivables
Portman Rent receivable 4,021,734.22 Over 3 years 20.24% 4,021,734.22
Shenzhen Jifang
Investment Co., Rent receivable 1,380,608.00 Over 3 years 6.95% 1,380,608.00
Ltd
Fujian Jielian
Electronics Co., Margin & deposit 800,000.00 Over 3 years 4.03% 240,000.00
Ltd.
Traffic accident
Intercourse funds 555,785.81 Over 3 years 2.80% 555,785.81
compensation
Hebei Botou Court Intercourse funds 520,021.00 Over 3 years 2.62% 520,021.00
Total -- 7,278,149.03 -- 36.63% 6,718,149.03
6. Inventory
Whether implemented the new revenue standards
□Yes √No
(1)Category
RMB/CNY
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Closing balance Opening balance
Inventories fall Inventories fall
provision or provision or
contract contract
Item
Book balance performance Book value Book balance performance Book value
costs costs
impairment impairment
provision provision
Raw materials 34,099,631.66 2,844,484.06 31,255,147.60 33,817,180.23 2,844,484.06 30,972,696.17
In product 0.00 0.00 0.00
Inventory
31,527,522.07 486,362.31 31,041,159.76 27,590,425.68 486,362.31 27,104,063.37
goods
Low priced and
easily worn 276,946.52 111,981.81 164,964.71 463,639.07 111,981.81 351,657.26
articles
Homemade
semi-finished 7,828,849.32 232,090.00 7,596,759.32 8,775,225.16 232,090.00 8,543,135.16
products
Total 73,732,949.57 3,674,918.18 70,058,031.39 70,646,470.14 3,674,918.18 66,971,551.96
(2) Inventories fall provision or contract performance costs impairment provision
RMB/CNY
Current increased Current decreased
Opening Closing
Item Reversal or
balance Accrual Other Other balance
write-off
Raw materials 2,844,484.06 2,844,484.06
In product 0.00 0.00
Inventory
486,362.31 486,362.31
goods
Low priced and
easily worn 111,981.81 111,981.81
articles
Homemade
semi-finished 232,090.00 232,090.00
products
Total 3,674,918.18 0.00 0.00 3,674,918.18
Nil
(3) Explanation on the ending balance of inventory contains an capitalized amount of borrowing costs
(4) Explanation on the current amortization amount of contract performance costs
7. Other current assets
RMB/CNY
Item Closing balance Opening balance
Value-added tax to be deducted 191,700.06 1,352,757.06
Advance payment of income tax 42,314.30 42,314.30
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Total 234,014.36 1,395,071.36
Other explanation:
Nil
8. Investment real estate
(1) Investment real estate measured at cost
√ Applicable □Not applicable
RMB/CNY
Construction in
Item House and building Land use right Total
process
I. Original book value
1.Opening balance 133,661,686.94 133,661,686.94
2.Current increased
(1) Outsourcing
(2)inventory\fixed
assets\construction in
process transfer-in
(3)increased by
combination
3.Current decreased
(1) Disposal
(2) other transfer-out
4.Closing balance 133,661,686.94 133,661,686.94
II. Accumulated
depreciation and
accumulated
amortization
1.Opening balance 84,708,694.37 84,708,694.37
2.Current increased 864,165.14 864,165.14
(1) Accrual or
864,165.14 864,165.14
amortization
3.Current decreased
(1) Disposal
(2) other transfer-out
4.Closing balance 85,572,859.51 85,572,859.51
III. Depreciation
reserves
1.Opening balance
2.Current increased
(1)Accrual
93
深圳中恒华发股份有限公司 2020 年半年度报告全文
3. Current decreased
(1) Disposal
(2) other transfer-out
4.Closing balance
IV. Book value
1.Ending book value 48,088,827.43 48,088,827.43
2.Opening book value 48,952,992.57 48,952,992.57
9. Fixed assets
RMB/CNY
Item Closing balance Opening balance
Fixed assets 103,896,660.36 105,372,345.62
Disposal of fixed assets 92,857,471.69 92,857,471.69
Total 196,754,132.05 198,229,817.31
(1)Fixed asset
RMB/CNY
House Transportat Tool Office Mold
Item Machinery Instrument Total
building ion equipment equipment equipment
equipment equipment
equipment
I. Original 73,200,617 94,646,254 6,170,584. 8,754,968. 7,180,143. 21,250,262 3,211,408. 214,414,23
book value .41 .95 89 35 39 .83 06 9.88
4,837,879. 5,616,347.
1.Opening 144,092.43 61,543.16 566,194.98 6,637.17
93 67
balance
4,837,879. 5,616,347.
2.Current 144,092.43 61,543.16 566,194.98 6,637.17
93 67
increased
(1)
Purchasing
(2)Constru
ction in
process
transfer-in
(3)increase
d by
combinatio
n
4,478,578. 76,005.58 38,466.72 21,550.00 4,614,600.
94
深圳中恒华发股份有限公司 2020 年半年度报告全文
3.Current 34 64
decreased
(1)
4,478,578. 4,614,600.
Disposal or 76,005.58 38,466.72 21,550.00
34 64
scrapping
73,200,617 95,005,556 6,170,584. 8,823,055. 7,203,219. 21,816,457 3,196,495. 215,415,98
4.Closing
.41 .54 89 20 83 .81 23 6.91
balance
II.
Accumulati
ve
depreciatio
n
18,788,535 61,361,126 4,652,063. 3,809,126. 5,017,484. 12,840,239 2,573,318. 109,041,89
1.Opening
.27 .34 93 76 12 .70 14 4.26
balance
1,023,481. 2,617,622. 1,772,335. 6,581,777.
2.Current 371,522.84 567,726.36 163,539.20 65,549.82
84 15 30 51
increased
1,023,481. 2,617,622. 1,772,335. 6,581,777.
371,522.84 567,726.36 163,539.20 65,549.82
(1)Accrual 84 15 30 51
3,985,319. 4,104,345.
3.Current 65,010.21 34,620.05 19,395.00
96 22
decreased
(1)
3,985,319. 4,104,345.
Disposal or 65,010.21 34,620.05 19,395.00
96 22
scrapping
19,812,017 59,993,428 5,023,586. 4,311,842. 5,146,403. 14,612,575 2,619,472. 111,519,32
4.Closing
.11 .53 77 91 27 .00 96 6.55
balance
III.
Depreciatio
n reserves
1.Opening
balance
2.Current
increased
(1)Accrual
95
深圳中恒华发股份有限公司 2020 年半年度报告全文
3.Current
decreased
(1)
Disposal or
scrapping
4.Closing
balance
IV. Book
value
1.Ending 53,388,600 35,012,128 1,146,998. 4,511,212. 2,056,816. 7,203,882. 103,896,66
577,022.27
book value .30 .01 12 29 56 81 0.36
54,412,082 33,285,128 1,518,520. 4,945,841. 2,162,659. 8,410,023. 105,372,34
2.Opening 638,089.92
.14 .61 96 59 27 13 5.62
book value
(2)Fixed assets leasing-out by operational lease
RMB/CNY
Item Ending book value
House building 774,175.19
(3)Disposal of fixed assets
RMB/CNY
Item Closing balance Opening balance
Renovation of Gongming Huafa Electric
92,857,471.69 92,857,471.69
Town
Total 92,857,471.69 92,857,471.69
Other explanation
At the end of the period, the original value of fixed assets that had been fully depreciated and still in use was RMB 43,595,200.48. At
the end of the period, there was no fixed asset for which the property right certificate was not completed.
10. Construction in process
RMB/CNY
Item Closing balance Opening balance
Construction in process 500,000.00
Total 500,000.00
(1) Construction in process
RMB/CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Gongming
500,000.00 500,000.00
Electronic City
96
深圳中恒华发股份有限公司 2020 年半年度报告全文
Reconstruction
Project
Total 500,000.00 500,000.00
(2) Change of major construction in process in the period
RMB/CNY
includi
Accum
Propor ng: Interes
Fixed ulated
Other tion of interes t
Openi Curren assets Closin amoun
decrea project t capital
ng t transfe g Progre t of Source of
Item Budget sed in invest capital ization
balanc increas r-in in balanc ss interes funds
the ment ized rate of
e ed the e t
Period in amoun the
Period capital
budget t of the year
ization
year
Gong
ming
Electr
onic
500,00 500,00
City Other
0.00 0.00
Recon
structi
on
Project
500,00 500,00
Total -- -- --
0.00 0.00
11. Intangible assets
(1)Intangible assets
RMB/CNY
Non-patented
Item Land use right Patent right Software charges Total
technology
I. Original book
55,089,774.36 3,696,416.41 58,786,190.77
value
1.Opening
balance
2.Current
increased
(1)
Purchasing
(2) internal
R&D
(3)increased by
combination
97
深圳中恒华发股份有限公司 2020 年半年度报告全文
3.Current
decreased
(1)
Disposal
4.Closing
55,089,774.36 3,696,416.41 58,786,190.77
balance
II. Accumulated
14,879,506.53 828,655.90 15,708,162.43
amortization
1.Opening
734,823.26 176,979.45 911,802.71
balance
2.Current
734,823.26 176,979.45 911,802.71
increased
(1)Accrual
3.Current
decreased
(1)
Disposal
4.Closing
15,614,329.79 1,005,635.35 16,619,965.14
balance
III. Depreciation
reserves
1.Opening
109,427.90 109,427.90
balance
2.Current
increased
(1)Accrual
3.Current
decreased
(1) Disposal
4.Closing
109,427.90 109,427.90
balance
IV. Book value
1.Ending
39,475,444.57 2,581,353.16 42,056,797.73
book value
2.Opening
40,210,267.83 2,758,332.61 42,968,600.44
book value
The 100.00% proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end
12. Long-term deferred expenditure
RMB/CNY
98
深圳中恒华发股份有限公司 2020 年半年度报告全文
Amortized in
Item Opening balance Current increased Other decreased Closing balance
Period
Cloud service
309,781.15 116,167.92 193,613.23
charge
Total 309,781.15 116,167.92 193,613.23
Other explanation
Nil
13. Deferred income tax asset/Deferred income tax liability
(1)Deferred income tax assets without offset
RMB/CNY
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences asset differences asset
Provision for assets
28,835,877.81 6,787,257.25 28,835,877.80 6,787,257.25
impairment
Deductible loss 969,475.74 145,421.36
Accrual liability 64,411.00 16,102.75 64,411.00 16,102.75
Total 29,869,764.55 6,948,781.36 28,900,288.80 6,803,360.00
(2)Amount of deferred income tax asset and deferred income tax liability after trade-off
RMB/CNY
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities assets and liabilities at assets or liabilities
assets and liabilities
after off-set period-begin after off-set
Deferred income tax
6,948,781.36 6,803,360.00
asset
(3)Deferred income tax asset without recognized
RMB/CNY
Item Closing balance Opening balance
Deductible temporary differences 3,163,837.81 3,163,837.81
Total 3,163,837.81 3,163,837.81
14. Other non-current assets
RMB/CNY
Closing balance Opening balance
Item Book Impairment Book Impairment
Book value Book value
balance provision balance provision
Advance payment for equipment 225,700.00 225,700.00 225,700.00 225,700.00
Total 225,700.00 225,700.00 225,700.00 225,700.00
Other explanation:
Nil
99
深圳中恒华发股份有限公司 2020 年半年度报告全文
15. Short-term loans
(1)Category
RMB/CNY
Item Closing balance Opening balance
Loan in pledge 12,000,000.00
Secured portfolio loan 12,633,898.20
Total 24,633,898.20
Explanation on category of Short-term loans
Nil
16. Note payable
RMB/CNY
Category Closing balance Opening balance
Bank acceptance bill 8,617,287.25 16,761,590.51
Total 8,617,287.25 16,761,590.51
Totally 0 Yuan due note payable are paid at period-end
17. Account payable
(1)Account payable
RMB/CNY
Item Closing balance Opening balance
Within one year(One year included) 128,535,980.81 95,647,603.05
Over one year 11,761,690.42 13,157,302.15
Total 140,297,671.23 108,804,905.20
(2)Major account payable over one year
RMB/CNY
Item Closing balance Reasons for non-payment or carry over
Shenzhen Yuehai Global Logistics Co.,
2,858,885.97 Without settlement
Ltd.
LG 1,906,267.50 Without settlement
Dongjin Electronics (Nanjing) P lasma
617,963.45 Without settlement
Co., Ltd.
Total 5,383,116.92 --
Other explanation:
Nil
18. Account received in advance
(1)Account received in advance
RMB/CNY
Item Closing balance Opening balance
Within one year 713,265.94 257,789.27
Over one year 153,480.51 98,656.94
Total 866,746.45 356,446.21
19. Employees remuneration payable
(1) Employees remuneration payable
RMB/CNY
100
深圳中恒华发股份有限公司 2020 年半年度报告全文
Increase during the Decrease during this
Item Opening balance Closing balance
period period
I. Short-term benefits 5,848,652.79 28,058,836.53 29,658,577.70 4,248,911.62
II. Post-employment
benefits-defined 28,688.46 402,183.31 399,161.71 31,710.06
contribution plans
III. Dismiss welfare 45,365.00 45,365.00
Total 5,877,341.25 28,506,384.84 30,103,104.41 4,280,621.68
(2)Short-term benefits
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Wages ,bonuses,
4,854,064.03 24,374,368.64 26,034,732.48 3,193,700.19
allowancesandsubsidies
2. Welfare for workers
2,866,768.25 2,816,528.25 50,240.00
and staff
3. Social insurance 37,448.18 624,962.00 615,419.33 46,990.85
Including:
35,718.92 536,635.36 527,221.51 45,132.77
Medical insurance
Work
740.73 9,908.69 9,881.12 768.30
injury insurance
Maternity
988.53 78,417.95 78,316.70 1,089.78
insurance
4. Housing
24,310.00 191,777.64 190,937.64 25,150.00
accumulation fund
5. Labor union
expenditure and
932,830.58 960.00 960.00 932,830.58
personnel education
expense
Total 5,848,652.79 28,058,836.53 29,658,577.70 4,248,911.62
(3)Defined contribution plans
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
1. Basic endowment
27,561.59 386,165.97 383,205.97 30,521.59
insurance
2. Unemployment
1,126.87 16,017.34 15,955.74 1,188.47
insurance
Total 28,688.46 402,183.31 399,161.71 31,710.06
Other explanation:
Nil
20. Tax payable
RMB/CNY
101
深圳中恒华发股份有限公司 2020 年半年度报告全文
Item Closing balance Opening balance
VAT 2,937,402.63 3,192,458.47
Corporate income tax 5,779,084.29 7,032,715.76
Individual income tax 14,384.24 30,265.20
Urban maintenance and construction tax 1,033,187.22 1,050,282.59
Property tax 548,114.12 310,683.11
Land use tax 239,920.53 25,424.98
Educational surtax 443,562.78 450,889.35
Local educational surtax 229,494.62 234,049.86
Dike fee 1,665.00 1,665.00
Stamp tax 39,201.60 39,940.66
Disposal fund of waste electrical
1,302,550.00 509,570.00
products
Total 12,568,567.03 12,877,944.98
Other explanation:
Nil
21. Other account payable
RMB/CNY
Item Closing balance Opening balance
Interest payable 89,365.28
Other account payable 28,140,118.39 27,938,227.34
Total 28,140,118.39 28,027,592.62
(1)Interest payable
RMB/CNY
Item Closing balance Opening balance
Interest of short-term loans payable 89,365.28
Total 89,365.28
Significant overdue and unpaid interest:
RMB/CNY
Loan unit Overdue amount Reason for overdue
Other explanation:
Nil
(2)Other account payable
1) Other account payable by nature
RMB/CNY
Item Closing balance Opening balance
Margin and deposit 9,918,627.97 10,354,134.67
Lease management fee 5,702,755.27 3,251,610.67
Intercourse funds 9,134,770.37 8,544,383.61
After sale and repairmen 1,318,518.00 1,747,809.47
Other 2,065,446.78 4,040,288.92
Total 28,140,118.39 27,938,227.34
102
深圳中恒华发股份有限公司 2020 年半年度报告全文
2) Significant other account payable with over one year age
RMB/CNY
Item Closing balance Reasons for non-payment or carry over
Shenzhen SED Property Development
1,853,393.35 Without settlement
Co., Ltd.
Shenzhen Hua yongxing Environmental
1,000,000.00 Margin
Protection Technology Co., Ltd.
Linghang Technology (Shenzhen) Co.,
656,345.28 Without settlement
Ltd
Shenzhen Tongxing Electronics Co., Ltd. 578,259.83 Without settlement
Shenzhen Yongdasheng Investment
558,970.00 Margin
Development Co., Ltd.
Total 4,646,968.46 --
Other explanation
22. Long-term loans
(1) Category
RMB/CNY
Item Closing balance Opening balance
Mortgage loan 67,000,000.00 73,000,000.00
Total 67,000,000.00 73,000,000.00
Description of Long-term loans classification:
Nil
Other explanation, including interest rate range:
The borrowing interest rate is the same as the bank's benchmark interest rate for loans of the same grade in the same period, and the
current period is 7.9166%.
23. Accrual liability
RMB/CNY
Item Closing balance Opening balance Causes
Pending action 64,411.00 64,411.00 Business and labor disputes
Total 64,411.00 64,411.00 --
Other explanations, including important assumptions and estimation about important estimated liabilities:
According to the Enforcement Notice ( (2008) SFFZZ No.522-529) of Shenzhen Intermediate People's Court, Shenzhen Labor
Dispute Arbitration Commission issued SLZC [2007] No. 1069-1077, No. 1079, No. 1081, and No. 1085-1087 arbitration awards for
the labor dispute case of Cai Yaoqiang and other thirteen people, which has taken legal effect. According to the Basic Information
Credit Report of Enterprises, the Company has total unexecuted labor dispute subject of 64,411.00 yuan, and the Company
recognizes it as the estimated liability.
24. Deferred income
RMB/CNY
Increase during Decrease during
Item Opening balance Closing balance Causes
the period this period
Industrial
Government
2,331,720.00 2,190,000.00 348,540.00 4,173,180.00 transformation
subsidy
subsidies
Total 2,331,720.00 2,190,000.00 348,540.00 4,173,180.00 --
103
深圳中恒华发股份有限公司 2020 年半年度报告全文
Items involving Government subsidy:
RMB/CNY
Amount Amount Amount of
New
reckoned in included in cost and
subsidy Assets-rela
Opening non-operati other expense Other Closing
Liability increased ted/Income
balance ng income income in offset in change balance
in the -related
in the the current the current
period
period period period
Governme 2,331,720. 2,190,000. 4,173,180. Assets-rela
348,540.00
nt subsidy 00 00 00 ted
Other explanation:
Nil
25. Share capital
In RMB
Changes in the Period (+,-)
Opening Issuing Shares transfer
Closing balance
balance new Bonus shares from public Other Subtotal
shares reserves
Total shares 283,161,227.00 283,161,227.00
Other explanation:
Up to 30th June 2020, the shares of the Company held by controlling shareholder has 116,100,000 shares in status of pledge, taking
41% of the total share capital; mortgagee is China Merchants Securities Assets Management Co., Ltd. Shares in judicial freeze
amounted as 119,289,894 shares.
26. Capital surplus
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Capital premium
96,501,903.02 96,501,903.02
(equity premium)
Other capital surplus 50,085,368.48 50,085,368.48
Total 146,587,271.50 146,587,271.50
Other explanation, including changes and reasons of changes:
Nil
27. Surplus reserves
RMB/CNY
Increase during the Decrease during this
Item Opening balance Closing balance
period period
Statutory surplus
21,322,617.25 21,322,617.25
reserves
Discretionary surplus
56,068,976.00 56,068,976.00
reserve
Total 77,391,593.25 77,391,593.25
Other explanation, including changes and reasons for changes:
Nil
104
深圳中恒华发股份有限公司 2020 年半年度报告全文
28. Retained profit
RMB/CNY
Item Current period Last period
Retained profit at period-begin after adjustment -177,712,041.86 -183,172,091.01
Add: net profit attributable to owners of the
parent company 3,165,597.55 5,460,049.15
Retained profit at period-end -174,546,444.31 -177,712,041.86
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retained
profits at the beginning of the period amounting to 0 Yuan.
2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.
3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 0 Yuan
4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.
5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
29. Operating income and cost
RMB/CNY
Current period Last period
Item
Income Cost Income Cost
Main business 268,465,953.89 249,723,766.92 310,399,495.33 285,485,316.56
Other business 32,237,467.49 14,235,885.71 28,790,678.72 12,094,891.78
Total 300,703,421.38 263,959,652.63 339,190,174.05 297,580,208.34
Information relating to revenue:
RMB/CNY
Category Branch 1 Branch 2 Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligations:
Nil
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations that have been signed at the end of this reporting period but
have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them, yuan of revenue is expected to be rec ognized
in YEAR, yuan of revenue is expected to be recognized in YEAR, and yuan of revenue is expected to be recognized in YEAR.
Other explanation
30. Tax and surcharges
RMB/CNY
Item Current period Last period
Urban maintenance and construction tax 61,315.21 68,304.63
Educational surtax 27,476.42 33,062.14
105
深圳中恒华发股份有限公司 2020 年半年度报告全文
Property tax 463,763.85 706,398.83
Land use tax 247,776.03 278,113.28
Vehicle use tax 0.00 3,420.00
Stamp tax 187,803.80 205,372.70
Local education development fee 15,920.74 15,438.42
Total 1,004,056.05 1,310,110.00
Other explanation:
Nil
31. Sales expense
RMB/CNY
Item Current period Last period
Employees remuneration 1,544,285.76 2,350,311.18
Freight 3,120,326.41 2,883,611.66
Commodity inspection fee 512,749.42 46,041.22
Customs fee 30,322.36 85,340.66
Commodity loss 2,042,886.52 1,669,582.49
Other 1,849,508.92 2,095,493.01
Total 9,100,079.39 9,130,380.22
Other explanation:
Others are mainly after-sales service fees, low-value and easy-to-use amortization, and office expenses.
32. Administrative expense
RMB/CNY
Item Current period Last period
Salary 4,290,516.96 4,819,623.00
Depreciation charge 1,094,911.50 1,108,894.27
Social insurance premium 307,654.93 1,183,069.73
Social expenses 2,149,616.64 1,975,609.14
Taxes and surcharge 0.00 0.00
Employee benefits 975,973.80 453,205.88
Travel expenses 997,820.46 913,668.77
Amortization of intangible assets 911,802.71 872,474.94
Traffic expenses 728,044.47 880,726.46
Consulting fee 154,420.23 365,549.99
Security 826,723.53 478,584.83
Repairs 1,186,397.36 981,308.38
Audit fee 703,883.50 812,786.23
Office expenses 534,213.91 775,082.77
Communication fee 66,922.51 106,108.39
Amortization of low cost and short lived
204,519.80 76,180.62
articles
Securities information disclosure fee 247,008.75 255,915.74
Litigation fee 0.00 0.00
Staff education 123,799.49 86,051.41
106
深圳中恒华发股份有限公司 2020 年半年度报告全文
Water and electricity fee 194,204.27 336,221.83
Lease fee 496,532.52 2,444,912.69
Eco fee 202,101.81 194,709.07
Premium 0.00 45,221.73
Other expenses 685,293.51 451,085.52
Total 17,082,362.66 19,616,991.39
Other explanation:
Nil
33. R& D expenses
RMB/CNY
Item Current period Last period
Personnel cost 1,801,065.20 2,086,504.20
Direct input cost 846,252.61
Depreciation and amortization expenses 499,584.18 218,337.01
Other related expenses 122,775.88 575,899.04
Total 2,423,425.26 3,726,992.86
Other explanation:
Nil
34. Financial expense
RMB/CNY
Item Current period Last period
Interest expenditure 4,755,143.83 5,355,676.92
Less: interest income 529,170.31 419,336.28
Add: Exchange loss -800,845.19 -87,878.70
Add: Other expense 59,100.48 219,909.30
Total 3,484,228.81 5,068,371.24
Other explanation:
Nil
35. Other income
RMB/CNY
Sources Current Period Last Period
Incentive fund for Wuhan industrial
intelligent transformation demonstration 100,000.00 200,000.00
project in 2019
Provincial special fund for
transformation and upgrading of 29,540.00 59,080.00
traditional industry for 2018
Industrial investment and technological
transformation and intelligent 219,000.00
transformation in 2020
Total 348,540.00 259,080.00
36. Investment income
RMB/CNY
107
深圳中恒华发股份有限公司 2020 年半年度报告全文
Item Current period Last period
Investment income generated by financial
66,780.40 74,936.14
products
Total 66,780.40 74,936.14
Other explanation:
Nil
37. Credit impairment loss
RMB/CNY
Item Current period Last period
Bad debt loss of other account receivable -8,432.50
Total -8,432.50
Other explanation:
38. Assets impairment loss
RMB/CNY
Item Current period Last period
Other explanation:
Nil
39. Asset disposal income
RMB/CNY
Source of asset disposal income Current period Last period
Income from fixed assets sold -99,867.53 129,039.57
40. Non-operating income
RMB/CNY
Amount included in current
Item Current period Last period
non-recurring profits or losses
Government subsidy 223,300.00
Liquidated damages income 1,976.00 1,976.00
Fine income 9,458.00
Other 43,224.06 43,224.06
Total 45,200.06 232,758.00 45,200.06
Government subsidy reckoned into current gains/losses:
RMB/CNY
Subsidy
impact The special Assets-rela
Issuing Offering Amount in Amount in
Item Nature current subsidy ted/income
subject causes the Period last period
gains/losse (Y/N) -related
s (Y/N)
Other explanation:
Nil
41. Non-operating expenditure
RMB/CNY
Amount included in current
Item Current period Last period
non-recurring profits or losses
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Penalty expenditure 7,302.38 1,100.00
Total 7,302.38 1,100.00
Other explanation:
Nil
42. Income tax expenses
(1)Statement of income tax expense
RMB/CNY
Item Current period Last period
Current income tax expense 982,790.94 388,847.80
Deferred income tax expense -145,421.36 215,062.28
Total 837,369.58 603,910.08
(2)Adjustment on accounting profit and income tax expenses
RMB/CNY
Item Current period
Total profit 4,002,967.13
Income tax based on statutory/applicable rate 1,000,741.78
Impact by different tax rate applied by subsidies 96,947.57
Impact of deductible loss of un-recognized deferred income
-260,516.32
tax assets in the prior period of use
Impact of the deductible temporary differences or deductible
loss of deferred income tax asset without recognized in the 196.54
period
Income tax expense 837,369.58
Other explanation
Nil
43. Annotation of cash flow statement
(1)Cash received with other operating activities concerned
RMB/CNY
Item Current period Last period
Unit intercourse account 423,061.34 1,869,387.03
Collection management fee and utilities
870,339.55 1,189,095.86
etc.
Repayment from employees 538.70 32,462.10
Margin 178,441.66 40,263.30
Interest income 80,873.96 48,764.26
Government subsidy 2,190,000.00 223,300.00
Total 3,743,255.21 3,403,272.55
Note of cash received with other operating activities concerned:
The cash received with other operating activities concerned in the period mainly including collection management fee and utilities,
government subsidy, margin and other intercourse funds
(2)Cash paid with other operating activities concerned
RMB/CNY
Item Current period Last period
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Unit intercourse account 12,099,293.44 1,315,156.92
Advances to employees 1,518,843.50 2,563,755.64
Deposit, margin 777,760.00 1,656,408.00
Social expenses 2,225,069.64 1,299,864.19
Water and electricity 195,404.27 2,365,472.40
Travel expenses 631,364.12 638,939.25
Freight 2,885,107.75 2,983,611.66
Traffic expenses 708,540.18 521,848.44
Repairs 1,186,397.36 1,067,602.12
Audit and consulting fees 700,000.00 792,049.00
Security 363,200.00 620,945.00
Financial institutions handling fee 54,316.41 62,759.86
Office expenses 184,663.65 508,512.98
Communication fee 66,922.51 154,173.54
Lease fee 496,532.52 2,444,912.69
Other 2,183,661.37 1,614,513.51
Total 26,277,076.72 20,610,525.20
Note of cash paid with other operating activities concerned:
Other cash paid in this period related to operating activities mainly include cash payment of management expenses, sales expenses,
personal transactions, deposits, payment of utilities and management fees.
(3)Cash received with other investment activities concerned
RMB/CNY
Item Current period Last period
Redemption of principal of financial
35,000,000.00 49,000,000.00
products
Total 35,000,000.00 49,000,000.00
Note of cash received with other investment activities concerned
Nil
(4)Cash paid related with investment activities
RMB/CNY
Item Current period Last period
Purchasing financial products 35,000,000.00 49,000,000.00
Total 35,000,000.00 49,000,000.00
Note of cash paid related with investment activities
Nil
44.Supplementary information to statement of cash flow
(1)Supplementary information to statement of cash flow
RMB/CNY
Supplementary information Current period Last period
1. Net profit adjusted to cash flow of
-- --
operation activities:
Net profit 3,165,597.55 2,580,411.13
Depreciation of fixed assets, 6,364,464.64 6,025,283.55
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深圳中恒华发股份有限公司 2020 年半年度报告全文
consumption of oil assets and depreciation
of productive biology assets
Amortization of intangible assets 911,802.71 872,474.94
Amortization of long-term deferred
116,167.92 116,167.92
expenditure
Loss from disposal of fixed assets,
intangible assets and other long-term -156,701.09 -129,039.57
assets(gain is listed with “-”)
Financial expenses (gain is listed with “-”) 3,786,650.62 5,262,857.89
Investment loss (income is listed with “-”) -66,780.40 -74,936.14
Decrease of deferred income tax assets
-145,421.36
(increase is listed with “-”)
Decrease of inventory (increase is listed
-3,086,479.43 -23,735,632.38
with “-”)
Decrease of operating receivable accounts
-15,138,062.18 -17,697,245.84
(increase is listed with “-”)
Increase of operating payable accounts
25,448,973.26 71,973,879.06
(decrease is listed with “-”)
Net cash flow arising from operating
21,200,212.24 45,194,220.56
activities
2. Material investment and financing not
-- --
involved in cash flow:
3. Net change of cash and cash
-- --
equivalents:
Balance of cash at period end 21,812,967.80 38,041,641.85
Less: Balance of cash at period-begin 36,645,061.61 29,171,804.99
Net increased amount of cash and cash
-14,832,093.81 8,869,836.86
equivalent
(2)Constitution of cash and cash equivalent
RMB/CNY
Item Closing balance Opening balance
Ⅰ. Cash 21,812,967.80 36,645,061.61
Including: Cash on hand 363,912.99 432,301.32
Bank deposit available for payment
21,449,054.81 36,212,760.29
at any time
Ⅲ. Balance of cash and cash equivalent at
21,812,967.80 36,645,061.61
period-end
Other explanation:
Ending Monetary fund-other monetary fund refers to the margin of bank acceptance 2,529,797.38 Yuan, which is
not belonging to the cash and cash equivalent. Ending monetary fund-Bank deposit has 1,551,468.00 Yuan frozen
by the court, which is not belonging to the cash and cash equivalent either.
45. Assets with ownership or use right restricted
RMB/CNY
Item Ending book value Restriction reasons
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Bank acceptance deposit is 25,297.38
Monetary fund 4,081,265.38 yuan, and the court freezes 1,551,468
yuan
Fixed assets 12,779,094.73 Bank loan secured
Intangible assets 2,761,798.94 Bank loan secured
Receivable financing 9,294,702.94 Pledged
Investment real estate 36,260,337.64 Bank loan secured
Disposal of fixed assets 92,857,471.69 Court closure
Total 158,034,671.32 --
Other explanation:
Nil
46. Item of foreign currency
(1) Item of foreign currency
RMB/CNY
Closing balance of foreign Closing RMB balance
Item Rate of conversion
currency converted
Monetary fund -- --
Including:USD 760,991.14 7.07 5,380,968.35
Euro
HKD 100,032.66 0.91 91,369.83
Account receivable -- --
Including:USD 9,158,403.66 7.07 64,759,072.28
Euro
HKD
Long-term loans -- --
Including:USD
Euro
HKD
Account paid in advance
Including:USD 1,090,685.67 7.07 7,712,238.37
Other explanation:
Nil
47. Government subsidy
(1)Government subsidy
RMB/CNY
Amount reckoned into current
Category Amount Item
gains/losses
Industrial investment and
technological transformation
2,190,000.00 Deferred income 2,190,000.00
and intelligent transformation
in 2020
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深圳中恒华发股份有限公司 2020 年半年度报告全文
VIII. Equity in other subjects
1. Equity in subsidiary
(1)Constitute of enterprise group
Main operation Registered Share-holding ratio
Subsidiary Business nature Acquired way
place place Directly Indirectly
HUAFA Lease Property New
Shenzhen Shenzhen 60.00%
Company management investment
HUAFA
Property New
Property Shenzhen Shenzhen 100.00%
management investment
Company
Hengfa
Production New
Technology Wuhan Wuhan 100.00%
sales investment
Company
HUAFA
Property New
Hengtian Shenzhen Shenzhen 100.00%
management investment
Company
HUAFA
Property New
Hengtai Shenzhen Shenzhen 100.00%
management investment
Company
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Nil
Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over
half and over voting rights:
Nil
Major structured entity included in consolidate statement:
Nil
Basis of termination of agent or consignor:
Nil
Other explanation:
Nil
IX. The risk associated with financial instruments
The Group's main financial instruments include loans, receivables, payable, tradable financial assets, trading and
financial liabilities, etc. The risks associated with these financial instruments and the risk management policies
adopted by the Group to reduce these risks are described below. The management of the Group manages and
monitors these risk exposures to ensure that the above risks are controlled within the limits.
Various risk management goals and policies
The objective of the Group's risk management is to strike a proper balance between risks and profits, minimize the
negative impact of risks on the Group's operating results, and maximize the benefits of shareholders and other
equity investors. Based on this risk management objectives, the Group's basic strategy for risk management is to
identify and analyze the risks faced by the Group, establish appropriate risk bottom lines and carry out risk
management, and timely and reliably monitor the risks control them within the limits.
(1) Market risk
The market risk of financial instruments refers to the risk that the fair value or the future cash flows of financial
instruments fluctuate due to the changes in market prices, including foreign exchange risk, interest rate risk and
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深圳中恒华发股份有限公司 2020 年半年度报告全文
other price risk.
1) FX risk
The Group's exchange rate risk is mainly related to US dollars and Hong Kong dollars. Except the Group's second
level subsidiary, Hengfa Technology Company’s monitor business has day-to-day operations in US dollars; other
principal business activities of the Group settle accounts in RMB. On 30 June 2020, except for the US dollar
balance of assets and liabilities in below table and the sporadic Hong Kong dollar balance, the Group's assets and
liabilities are all RMB balance. The exchange rate risk arising from the assets and liabilities of the US dollar,
Hong Kong dollar balance may have an impact on the Group's operating results.
Item 2020-6-30(RMB conversion) 2019-12-31(RMB 2018-12-31(RMB conversion)
conversion)
Monetary fund -USD 760,991.14 9,356,958.43 2,010,146.81
Monetary fund -HKD 100,032.66 28.61 28.62
Account receivable -USD 9,158,403.66 40,836,244.74 44,086,655.90
Account paid in
1,090,685.67 15,454,592.53 19,035,307.91
advance-USD
Account payable -USD - -
Short-term loans-USD - 22,676,280.00 25,068,657.88
The Company eyes on the influence from variation of exchange
2) Interest rate risk
The interest rate risk of the Group arises from bank loans. The financial liabilities of floating interest rate make
the Group face cash flow interest rate risk, and the financial liabilities of fixed rate make the Group face the
interest rate risk of fair value. The Group determines the relative proportion of fixed rate and floating interest rate
contracts based on the prevailing market environment. On 30 June 2020, the Group's interest-bearing debt was
mainly the floating interest rate loan contract denominated in Renminbi and US dollars, amounting to RMB
79,000,000.00 (December 31, 2019: RMB 109,633,898.20).
The Group's risk of changes in the cash flow of financial instruments due to changes in interest rates is mainly
related to the floating interest rate bank loans. The Group's policy is to maintain the floating interest rate of these
loans so as to eliminate the fair value risk of the interest rate changes.
3) Price risk
The Group sells monitors and so on at market prices and is therefore affected by such price fluctuations.
(2) Credit risk
Credit risk refers to the risk that a party of the financial instrument does not fulfill its obligations and causes
property loss to another party. On June 30, 2020, the maximum credit risk exposure that may cause financial
losses to the Group is mainly attributable to the failure of the other party to fulfill its obligations resulting in the
losses of the Group's financial assets and the Group's financial guarantees, including:
The carrying amount of the financial assets recognized in the consolidated balance sheet; for the financial
instruments measured at fair value, the book value reflects its risk exposures but not the maximum risk exposure,
and its maximum risk exposure changes with the future changes in fair value.
In order to reduce the credit risk, the Group has set up a special department to determine the credit line, carry out
the credit approval, and implement other monitoring procedures to take necessary measures to recover the overdue
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深圳中恒华发股份有限公司 2020 年半年度报告全文
credit. In addition, the Group reviews the recovery of each individual receivable at every balance sheet date to
accrue sufficient provision for bad debts of uncollectible funds. As a result, the Group's management believes that
the Group's credit risk has been greatly reduced.
The Group's working capital is deposited in banks with higher credit ratings, so the credit risk of working capital
is low.
The Group has adopted necessary policies to ensure that all customers have good credit records. In addition to the
top five account receivables, the Group has no other significant credit risk.
The total amount of the top five account receivables is RMB 120,528,351.15.
(3) Liquidity risk
The liquidity risk is the risk that the Group is unable to fulfill its financial obligations on the due date. The Group's
approach to manage liquidity risk is to ensure that there is sufficient financial liquidity to fulfill its due debts but
not cause unacceptable losses or damages to the corporate reputation. The Group regularly analyzes the structure
and duration of liabilities to ensure there are sufficient funds. The management of the Group monitors the use of
bank loans and ensures the compliance with loan agreement, and conducts financing consultations with financial
institutions in order to maintain a certain line of credit and reduce the liquidity risk.
The financial assets and financial liabilities held by the Group based on the maturity of the undiscounted
outstanding contractual obligations are analyzed as follows
Amount on 30 June 2020
Item Within one year 1-2 years 2-3 years Over 3 years Total
Financial assets
Monetary funds 25,894,233.18 25,894,233.18
Receivable financing 29,776,291.10 29,776,291.10
Account receivable 162,906,849.90 78705.66 2,527.77 13,146,290.18 176,134,373.51
Other account receivable 3,813,383.34 447859.44 3.00 15,607,877.84 19,869,123.62
Account paid in advance 22,083,401.55 22,083,401.55
Financial liabilities -
Notes payable 8,617,287.25 8,617,287.25
Account payable 140,297,671.23 140,297,671.23
Other accounts payable 28,140,118.39 28,140,118.39
Advance receivable 866,746.45 866,746.45
Wage payable 4,280,621.68 4,280,621.68
2. Sensitivity analysis
The Group uses the sensitivity analysis technique to analyze the possible impacts of the reasonable and possible
changes in risk variable on the currents profit and losses or the owner's equity. Since any risk variable rarely
changes in isolation, and the correlation among the variables has a significant effect on the final effect amount of a
certain risk variable changes, and the following contents are on the assumption that the change in each variable is
independent.
(1) Sensitivity analysis of foreign exchange risk
Sensitivity analysis of foreign exchange risk assumes that all overseas operating net investment hedges and cash
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深圳中恒华发股份有限公司 2020 年半年度报告全文
flow hedges are highly effective.
On the basis of the above assumptions, in case that other variable don’t change, the after-tax effect of the possible
and reasonable changes in the exchange rate on the current profits and losses are as follows
Item Exchange rate Jan.-Jun. 2020 Jan.-Jun. 2019
fluctuation Impact on net profit Impact on owner's Impact on net Impact on owner's
equity profit equity
All foreign 5% appreciation of 2,984,313.25 2,984,313.25 1,031,885.69 1,031,885.69
currency the RMB
All foreign 5% devaluation of -2,984,313.25 -2,984,313.25 -1,031,885.69 -1,031,885.69
currency the RMB
X. Related party and related transactions
1. Parent company of the enterprise
Share-holding
ratio on the Voting right ratio
Parent company Registration place Business nature Registered capital
enterprise for on the enterprise
parent company
Production and
Wuhan Zhongheng
sales, real estate
New Science &
development and
Technology Wuhan 138,000,000.00 42.13% 42.13%
sales, housing
Industrial Group
leasing and
Co., Ltd
management
Explanation on parent company of the enterprise
Nil
The ultimate control of the enterprise is Li Zhongqiu.
Other explanation:
Nil
2. Subsidiary of the Enterprise
Found more in VIII. Equity in other entity in the Note
3. Other Related party
Other Related party Relationship with the Enterprise
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Huafa Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Hengsheng Yutian Industrial Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Hengsheng Photo-electricity Industry Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hong Kong Yutian International Investment Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan New Oriental Real Estate Development Co., Ltd.
controller
Wuhan Zhongheng Property Management Co., Ltd. Control by same controlling shareholder and ultimate
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深圳中恒华发股份有限公司 2020 年半年度报告全文
controller
Control by same controlling shareholder and ultimate
Wuhan Optical Valley Display System Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Xingye Property Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Dongfang Property Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Xiahua Zhongheng Electronics Co. Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Zhongheng Yutian Trading Co,, Ltd
controller
Control by same controlling shareholder and ultimate
Wuhan Yutian Hongguang Real Estate Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Huayu Investment Holding Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Yutian Investment Co., Ltd.(Famous Sky Capital Limited)
controller
Control by same controlling shareholder and ultimate
Yutian International Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Hong Kong Zhongheng Yutian Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Yutian Henghua Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Zhongheng Yongye Technology Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Shenzhen Yutian Hengrui Co., Ltd.
controller
Control by same controlling shareholder and ultimate
Wuhan Henglian Optoelectronics Co., Ltd.
controller
Other explanation
Nil
4. Related transaction
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
RMB/CNY
Whether over the
Trading limit
Related party Content Current Period approved limited or Last period
approved
not (Y/N)
Hong Kong
Yutian
Purchasing
International 67,538,078.36 137,752,000.00 N 55,314,886.74
goods
Investment Co.,
Ltd.
Wuhan Purchasing 60,232,724.51 303,054,400.00 N 57,732,114.71
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Hengsheng goods
Photo-electricity
Industry Co., Ltd.
Goods sold/labor service providing
RMB/CNY
Related party Content Current period Last period
Hong Kong Yutian
International Investment Co., Sales of goods 59,074,589.93 64,136,216.85
Ltd.
Wuhan Hengsheng
Photo-electricity Industry Sales of goods 10,283,633.89 12,184,138.45
Co., Ltd.
Explanation on goods purchasing, labor service providing and receiving
Nil
(2)Related guarantee
As the guarantor
RMB/CNY
Completed or not
Secured party Amount guarantee Start End
(Y/N)
As the secured party
RMB/CNY
Completed or not
Guarantor Amount guarantee Start End
(Y/N)
Li Zhongqiu 90,000,000.00 2020-07-01 2022-07-01 N
Explanation on related guarantee
Nil
(3)Remuneration of key manager
RMB/CNY
Item Current period Last period
Total remuneration 721,500.00 781,248.00
5. Receivable/payable items of related parties
(1) Receivable item
RMB/CNY
Closing balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Hong Kong Yutian
Account International
39,240,084.73 25,582,267.94
receivable Investment Co.,
Ltd.
Wuhan Hengsheng
Account
Photo-electricity 350,779.63
receivable
Industry Co., Ltd.
Account paid in Hong Kong Yutian
7,712,238.37 13,902,631.23
advance International
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Investment Co.,
Ltd.
(2)Payable item
RMB/CNY
Item Related party Closing book balance Opening book balance
Wuhan Hengsheng
Account payable Photo-electricity Industry 3,491,812.05 3,186,713.37
Co., Ltd.
Wuhan Hengsheng
Notes payable Photo-electricity Industry 138,355.71
Co., Ltd.
6. Commitments of related party
In line with the claim of application for arbitration from Shenzhen Vanke, Shen HUAFA and Wuhan Zhongheng paid and money
together. As the commitment letter to Shen HUAFA from Wuhan Zhongheng Group, if the Vanke wins, the losses from disputes
arising by contract will bear by Wuhan Zhongheng Group in full.
XI. Commitme nt or contingency
1. Important commitment
Important commitment on balance sheet date
Nil
2. Contingency
(1) Contingency on balance sheet date
On April 17, 2020, Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as the "company" or the
"defendant") received the Notice of Response to the Prosecution sent by the Shenzhen Intermediate People's Court
of Guangdong Province (hereinafter referred to as the Shenzhen Intermediate Court) [(2020) Yue 03 Minchu No.
17] and other related materials. Shenzhen Zhongheng Huafa Technology Co., Ltd. (hereinafter referred to as
"Huafa Technology" or "plaintiff") sued the company and its controlling shareholder Wuhan Zhongheng New
Science & Technology Industrial Group Co., Ltd (hereinafter referred to as "Wuhan Zhongheng Group" or "third
party") for the Asset Replacement Contract disputes, the Shenzhen Intermediate Court has filed a case, the case
number is (2020) Yue 03 Minchu No. 17.
Shenzhen Zhongheng Huafa Technology Co., Ltd.’s claims ① Request to order the defendant and the third party
to continue to perform the Asset Replacement Contract; ② Request to order the defendant to assist the plaintiff to
register the land use right and transfer ownership of the land parcel numbers A627-0005 and A627-0007 to the
plaintiff within the time limit; ③Request to order the defendant to compensate the plaintiff for the economic
losses of 52 million yuan (including the loss of benefits available); the lawsuit has not yet been heard.
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
XII. Events after balance sheet date
1. Explanation on other events after balance sheet date
Nil
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XIII. Other important event
1. Other
(i) Matters of adjudication of Southern International Arbitration Shen [2017] No. D376 from Southern China
International Economic & Trade Arbitration Commission
(1) Arbitration
In August 2015, Shenzhen HUAFA and Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter
referred to as “Wuhan Zhongheng”) signed the “Cooperation Agreement on Urban Renewal Project of Update
Units at Huafa Industrial Park, Gongming Street, Guangming New District, Shenzhen”. As Shenzhen HUAFA and
Wuhan Zhongheng planned to cooperate with Shenzhen Vanke Real Estate CO., Ltd. (hereinafter referred to as
“Shenzhen Vanke”) on the Huafa urban renewal project (hereinafter referred to as “Huafa Renovation Project) at
Gongming Street, Guangming New District, Shenzhen, both parties appointed that Shenzhen HUAFA entrusted
Wuhan Zhongheng to represent it in this cooperation, and established project company - Shenzhen Vanke
Guangming Real Estate Co., Ltd. (hereinafter referred to as “Vanke Guangming”) as the subject of project
implementation with Shenzhen Vanke; Vanke Guangming signed “Demolition Compensation Agreement” with
Shenzhen HUAFA and Wuhan Zhongheng, and paid the compensation for demolition.
On August 21, 2015, Shenzhen HUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “Cooperative
Operation Contract of Renovation Project at Huafa Industrial Park, Gongming Street, Guangming New
District”(hereinafter referred to as “Cooperative Operation Contract”), the contract refined and appointed the
cooperation model and operating steps of both sides. And then Shenzhen HUAFA, Wuhan Zhongheng and
Shenzhen Vanke signed the “Agreement on the Housing Acquisition and Removal Compensation and Settlement”.
After signing the above agreement, Shenzhen Vanke paid the cooperation price of 600 million Yuan to Wuhan
Zhongheng through Vanke Guangming.
In September 2016, Shenzhen Vanke filed an arbitration to South China International Economic and Trade
Arbitration Commission (hereinafter referred to as “South China Arbitration”) as Shenzhen HUAFA and Wuhan
Zhongheng violated the appointment of “Cooperative Operation Contract” and handled the “Confirmation of
Subject of Reconstruction Implementation” at an overdue time, and required Shenzhen HUAFA and Wuhan
Zhongheng to pay liquidated damages and attorneys' fees of 464.60 million yuan.
While filing the arbitration, Shenzhen Vanke also applied for property preservation of 400 million Yuan of
property under the name of Shenzhen Huafa and Wuhan Zhongheng to Shenzhen Intermediate People’s Court.
According to the ruling of Shenzhen Intermediate People's Court and “Notification of Sealing up, Seizing and
Freezing Assets” (The reference numbers are (2016) Yue 03 Cai Bao No. 51, (2016) Yue 03 Cai Bao No. 53), the
27 house properties (Note: the property within the scope of Huafa renovation project) under the name of Shenzhen
HUAFA and 116,489,894 shares (Note: of which 116,100,000 shares have been pledged) of Shenzhen HUAFA
stock held by Wuhan Zhongheng were frozen.
(2) Progress of arbitration
On November 12, 2016, the arbitration court held a hearing on this case.
In December 2016, Wuhan Zhongheng to Shenzhen HUAFA issued a “Commitment Letter” which included that if
the arbitration (Note: the case) ruled in favor of Shenzhen Vanke, the loss of arbitration caused by the contract
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深圳中恒华发股份有限公司 2020 年半年度报告全文
disputes should be fully assumed by our company. In the above contingent losses, if the judicial decision ruled
your company to pay the compensation in advance, our company promised to pay your company in cash within
one month, if our company could not pay on time due to uncontrollable factors, our company would like to pay the
corresponding interest according to the benchmark interest rate of bank loans in the corresponding period.
Because the plots in the renovation project placed in our company hadn’t been applied for transfer procedures and
were still under your company’s name (Note: based on the “Asset Replacement Contract” signed by Wuhan
Zhongheng and Shenzhen HUAFA on April 29, 2009), therefore, there was no risk of compliance, at the same time,
our company promised to give priority to paying the above compensation with the compensation for demolition of
renovation project.
On March 14, 2017, Shenzhen HUAFA received the “Decision of Arbitrator not Granting Avoiding” issued by
South China Arbitration, which rejected the application for avoiding of chief arbitrator proposed by Shenzhen
Vanke. On March 15, 2017, Shenzhen HUAFA received the “Letter About the Resignation of the Chief Arbitrator
of No. SHEN DP20160334 Case” signed by the chief arbitrator and forwarded by South China Arbitration. On
March 20, 2017, Shenzhen HUAFA received the “Letter About the Resignation of the Arbitrator of No. SHEN
DP20160334 Case” forwarded by South China Arbitration, the arbitrator selected by Shenzhen Vanke said to
resign from the arbitrator of this case due to physical reasons.
The deadline for giving a ruling to this case was originally scheduled on February 12, 2017. According to the
“Decision of Adjourning the Ruling” issued by South China Arbitration on February 10, 2017, the deadline for
giving a ruling to this case shall be prolonged to May 12, 2017. Due to the changes in the members of above
arbitration court, this case needs South China Arbitration to reassign the chief arbitrator and Shenzhen Vanke to
reselect the arbitrators. According to the provisions of article 32 of the Arbitration Rules of South China
Arbitration, after constituting the new arbitration court, it shall decide whether all or part of the hearing
procedures that have been carried out before need to be reopened; if the arbitration court decides to reopen all
hearing procedures, then the deadline for giving a ruling shall be calculated from the date that the arbitration court
decides to reopen the hearing procedures.
On August 16, 2017, South China International Economic and Trade Arbitration Commission made the “Arbitral
Award” SCIA [2017] D376, according to the arbitral award, the applicant and counterclaim respondent in
arbitration case SCIA [2017] D376 were Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as
“Applicant” and “Vanke”). The first respondent and the first applicant for counterclaim were Wuhan Zhongheng
New Science & Technology Industrial Group Co., Ltd (hereinafter referred to as “Wuhan Zhongheng” and “First
Respondent”). The second respondent and the second applicant for counterclaim were Zhongheng Huafa. The
award results were as follows:
① The first respondent and the second respondent pay liquidated damages to the applicant with a base number of
RMB 600 million, calculating by the annual interest rate of 36% from October 1, 2015 to November 11, 2016;
②The first respondent and the second respondent pay the lawyer fees of RMB 1.4 million to the applicant due to
the case;
③The first respondent and the second respondent pay the property preservation fees of RMB 10,000 to the
applicant;
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深圳中恒华发股份有限公司 2020 年半年度报告全文
④The arbitration fees for this request and case was RMB 3,101,515.00, the first respondent and the second
respondent should bear 70%, i.e. RMB 2,171,060.50, and the applicant should bear 30%, i.e. RMB 930,454.50.
The applicant had already paid the arbitration fees in full amount for this request which could be used as the
arbitration fees of this case and request and shall not be refunded. The first respondent and the second respondent
should directly pay RMB 2,171,060.50 to the applicant;
The arbitration fee of counterclaim in this case was RMB 76,050 which was undertaken by the first respondent
and the second respondent at their own expense. The first respondent and the second respondent paid the
arbitration fees in full amount for this request which could be used as the arbitration fees of this case and request
and shall not be refunded;
The actual expenses of the arbitrators in this case amounted to RMB 7,754.90, the first respondent and the second
respondent assumed 70%, i.e. RMB 5,428.43, and the applicant assumed 30%, i.e. RMB 2,326.47; the above
actual expenses of the arbitrators had been paid by the Commission, so the first respondent and the second
respondent and the applicant should directly pay RMB 5,428.43 and RMB 2,326.47 respectively to the
Commission;
⑤ Reject the applicant’s other arbitration requests;
⑥Reject the arbitration counterclaims of the first respondent and the second respondent.
In summary, Wuhan Zhongheng and Shenzhen Huafa should pay liquidated damages, interest, lawyer fees,
property preservation fees, and arbitration fees for this request to Vanke and pay actual expenses of the arbitrators
in this case and pay the actual expenses incurred by the arbitrators in this case to South China International
Economic and Trade Arbitration Commission.
On February 7, 2018, the company and Wuhan Zhongheng Group applied to Shenzhen Intermediate People’s
Court to revoke the Ruling HNGZSC [2017] D376, the court made a judgment on August 16, 2018, rejecting the
company’s request for revocation. The company and its controlling shareholder Wuhan Zhongheng Group
received the “Execution Notice of Shenzhen Intermediate People’s Court” ([2018] Yue03Zhi No. 1870), and the
executor applied to the court for compulsory execution, the company was listed as dishonest person subject to
execution by Shenzhen Intermediate People’s Court. On December 13, 2019, the company announced that it had
been removed from the list of dishonest persons subject to execution by the Shenzhen Intermediate People’s
Court.
(3) The response of the company’s management and the identification of the event
The company engaged lawyers to make an independent investigation and judgment on the event, and issued
special legal opinion that the reasons of Wuhan Zhongheng resulted in a failure of a net handover, the
corresponding urban renewal functional department could not issue the corresponding demolition documents,
which in turn made the project company fail to be confirmed as the subject of implementation, and finally and
directly made the subject of implementation fail to get the “Land Value Payment Notification” and sign the “Land
Use Rights Transfer Contract”. Therefore, Wuhan Zhongheng should bear all responsibilities for faults in response
to the breach of contract. Wuhan Zhongheng issued the Commitment Letter in December 2016, pledged that if the
arbitration judged Vanke to win the case, Wuhan Zhongheng should bear all arbitration losses caused by the
contract dispute; after the award came into effect, Wuhan Zhongheng issued the Confirmation Letter again on
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November 23, 2017 to divide the duty of performance of the award; the independent directors of the company
issued independent opinions after careful study that Wuhan Zhongheng should bear the arbitration losses in full;
the management of the company also made an investigation and affirmed that Wuhan Zhongheng should bear all
liability for satisfaction on the Award HNGZSC [2017] D376, and the award amount should be paid by Wuhan
Zhongheng in full.
(ii) Arbitration case of legal service contract dispute with V&T (Shenzhen) Law Firm
On March 12, 2018, the company received the arbitration notice No. SHEN DX20180087 from Shenzhen Court
of International Arbitration, V&T (Shenzhen) Law Firm requested to make a ruling that the Company and Wuhan
Zhongheng pay the delinquent lawyer’s fees of RMB 19,402,000 and the liquidated damages (The liquidated
damages shall take five ten-thousandths of a day as a standard based on RMB 19,402,000 from August 24, 2017 to
the date of payment of the above-mentioned lawyer’s fees, and the liquidated damages up to February 12, 2018
was RMB 1,678,273.00). The company should bear all the arbitration fees for this case.
On November 5, 2019, the company received the arbitration award HNGZSC [2019] D618 from Shenzhen Court
of International Arbitration, ruling that the company and its controlling shareholder Wuhan Zhongheng New
Science & Technology Industrial Group Co., Ltd should pay Shenzhen V & T Law Firm the arrears of legal fees
of RMB 19,402,000 and the liquidated damages.
The verification opinion of Guangdong HAIBU Attorneys-at-law engaged by the company on the performance of
legal liability of the arbitration result believed that the case is caused by the Vanke arbitration case No. SHEN
DP20160334, there is a close causal relationship between the two cases, as the ultimate beneficiary of the
“Agency Contract”, Wuhan Zhongheng shall be responsible for all payment in response to the Arbitration Award
HNGZSC [2019] D618
According to the company’s announcement, the dispute between V & T Law Firm and Wuhan Zhongheng Group
and the company on attorney fees was caused by its agency of the Vanke arbitration case, and it was of the same
nature as the loss of the Vanke arbitration case. In addition, Wuhan Zhongheng Group has issued a “Commitment
Letter” to Shenzhen Hwafa in December 2016 that if the arbitration decides that Vanke wins, Wuhan Zhongheng
Group shall bear the full amount of arbitration losses caused by the contract disputes. Wuhan Zhongheng Group,
as the beneficiary of the “Agency Contract”, should bear full payment responsibility for the Arbitration Award
HNGZSC [2019] D618, and the company should not bear the arbitration losses in this case.
XIV. Principle notes of financial statements of parent company
1. Account receivable
(1)Category of account receivable
RMB/CNY
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Amoun Amoun Accrual Amoun Amoun Accrual
Ratio value Ratio value
t t ratio t t ratio
Account receivable
with bad debt 10,293, 50.00 10,293, 10,293, 100.00 10,293,
100.00% 100.00%
provision accrual 424.29 % 424.29 424.29 % 424.29
on a single basis
Including:
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Ending Account
receivable with
single significant
5,000,9 24.29 5,000,9 5,000,9 5,000,9
amount and 100.00% 24.29% 100.00%
88.97 % 88.97 88.97 88.97
withdrawal bad
debt provision on
single basis
Ending Account
receivable with
single minor
5,292,4 25.71 5,292,4 5,292,4 5,292,4
amount but with 100.00% 25.71% 100.00%
35.32 % 35.32 35.32 35.32
bad debts provision
accrued on a single
basis
Including:
10,293, 100.00 10,293, 10,293, 10,293,
Total 100.00% 1.00% 100.00%
424.29 % 424.29 424.29 424.29
Accrual of bad debt provision on single basis: 5,000,988.97 Yuan
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Hong Kong Haowei
1,870,887.18 1,870,887.18 100.00% Uncollectible
Industrial Co., Ltd.
TCL ACE ELECTRIC
APPLIANCE
1,325,431.75 1,325,431.75 100.00% Uncollectible
(HUIZHOU) CO.,
LTD.
Qingdao Haier Parts
1,225,326.15 1,225,326.15 100.00% Uncollectible
Procurement Co., Ltd.
SKYWORTH
Multimedia 579,343.89 579,343.89 100.00% Uncollectible
(Shenzhen) Co., Ltd.
Total 5,000,988.97 5,000,988.97 -- --
Accrual of bad debt provision on single basis: 5,292,435.32
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Shenzhen Huixin
Video Technology Co., 381,168.96 381,168.96 100.00% Uncollectible
Ltd.
Shenzhen Wandelai
Digital Technology 351,813.70 351,813.70 100.00% Uncollectible
Co., Ltd.
Shenzhen Dalong 344,700.00 344,700.00 100.00% Uncollectible
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Electronic Co., Ltd.
Shenzhen Keya
332,337.76 332,337.76 100.00% Uncollectible
Electronic Co., Ltd.
Shenzhen Qunping
304,542.95 304,542.95 100.00% Uncollectible
Electronic Co., Ltd.
China Galaxy
Electronics (Hong 288,261.17 288,261.17 100.00% Uncollectible
Kong) Co., Ltd.
Dongguan Weite
274,399.80 274,399.80 100.00% Uncollectible
Electronic Co., Ltd.
Hong Kong New
Century Electronics 207,409.40 207,409.40 100.00% Uncollectible
Co., Ltd.
Shenyang Beitai
203,304.02 203,304.02 100.00% Uncollectible
Electronic Co., Ltd.
Beijing Xinfang Weiye
193,000.00 193,000.00 100.00% Uncollectible
Technology Co., Ltd.
TCL Electronics (Hong
145,087.14 145,087.14 100.00% Uncollectible
Kong) Co., Ltd.
Huizhou TCL Xinte
142,707.14 142,707.14 100.00% Uncollectible
Electronics Co., Ltd.
Sky Worth – RGB
133,485.83 133,485.83 100.00% Uncollectible
Electronic Co., Ltd.
Other 1,990,217.45 1,990,217.45 100.00% Uncollectible
Total 5,292,435.32 5,292,435.32 -- --
Accrual of bad debt provision on single basis:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio Accrual causes
Accrual of bad debt provision on portfolio:
RMB/CNY
Closing balance
Name
Book balance Bad debt provision Accrual ratio
Explanation on portfolio basis:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please refer
to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Over 3 years 10,293,424.29
Over 5 years 10,293,424.29
Total 10,293,424.29
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深圳中恒华发股份有限公司 2020 年半年度报告全文
(2)Top 5 account receivables at ending balance by arrears party
RMB/CNY
Closing balance of account Proportion in total account Closing balance of bad debt
Company
receivable receivables at year-end provision
Hong Kong Haowei
1,870,887.18 18.18%
Industrial Co., Ltd.
TCL ACE ELECTRIC
APPLIANCE (HUIZHOU) 1,325,431.75 12.88%
CO., LTD.
Qingdao Haier Parts
1,225,326.15 11.90%
Procurement Co., Ltd.
SKYWORTH Multimedia
579,343.89 5.63%
(Shenzhen) Co., Ltd.
Shenzhen Huixin Video
381,168.96 3.70%
Technology Co., Ltd.
Total 5,382,157.93 52.29%
2. Other account receivable
RMB/CNY
Item Closing balance Opening balance
Other account receivable 95,507,010.91 97,165,023.85
Total 95,507,010.91 97,165,023.85
(1)Other account receivable
1) Other account receivable by nature
RMB/CNY
Nature Closing book balance Opening book balance
Margin deposit 304,608.00 304,608.00
Borrow money 1,914,312.46 1,869,073.12
Intercourse funds 104,591,046.91 107,488,541.28
Rental receivable 7,209,793.66 5,847,389.48
Other 168,162.09
Less: Bad debt provision -18,512,750.12 -18,512,750.12
Total 95,507,010.91 97,165,023.85
2)Accrual of bad debt provision
RMB/CNY
Phase I Phase II Phase III
Expected credit losses for Expected credit losses for
Expected credit
Bad debt provision the entire duration the entire duration (with Total
losses over next 12
(without credit credit impairment
months
impairment occurred) occurred)
Balance on Jan. 1,
0.30 18,512,749.82 18,512,750.12
2020
Balance of Jan. 1, 2020
—— —— —— ——
in the period
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Balance on Jun. 30,
0.30 18,512,749.82 18,512,750.12
2020
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √Not applicable
By account age
RMB/CNY
Account age Closing balance
Within one year(One year included) 95,202,400.21
1-2 years 312,209.44
2-3 years 3.00
Over 3 years 18,505,148.38
3-4 years 1,446,706.00
Over 5 years 17,058,442.38
Total 114,019,761.03
3) Bad debt provision accrual, collected or reversal in the period
Bad debt provision accrual in the period:
RMB/CNY
Amount changed in the period
Opening Closing
Category Collected or
balance Accrual written-off Other balance
reversal
Phase I 0.30 0.30
Phase III 18,512,749.82 18,512,749.82
Total 18,512,750.12 18,512,750.12
Nil
Including important bad debt provision that collected or reversal in the period:
RMB/CNY
Enterprise Amount collected or reversal Collection by
Nil
4) Top 5 other account receivables at ending balance by arrears party
RMB/CNY
Ratio in total
Closing balance of
Enterprise Nature Closing balance Account age ending balance of
bad debt reserve
other receivables
Wuhan Hengfa
Technology Co., Intercourse funds 84,697,345.02 Within one year 74.28%
Ltd.
Shenzhen
Zhongheng HUAFA Intercourse funds 9,472,698.34 Within one year 8.31%
Property Co., Ltd
HUAFA Lease Lease fee
4,558,859.15 Over 3 years 4.00% 4,558,859.15
Company receivable etc
Portman Intercourse funds 4,021,734.22 Over 3 years 3.53% 4,021,734.22
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Shenzhen Jifang Lease fee
1,380,608.00 Over 3 years 1.21% 1,380,608.00
Investment Co., Ltd receivable etc
Total -- 104,131,244.73 -- 92.02% 9,961,201.37
3. Long-term equity investment
RMB/CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
187,208,900.00 600,000.00 186,608,900.00 187,208,900.00 600,000.00 186,608,900.00
subsidiary
Total 187,208,900.00 600,000.00 186,608,900.00 187,208,900.00 600,000.00 186,608,900.00
(1)Investment for subsidiary
RMB/CNY
Changes in the period Closing
Opening
The invested Accrual of Closing balance balance of
balance (Book Additional Negative
entity impairment Other (Book value) impairment
value) investment investment
provision provision
HUAFA
Lease 0.00 600,000.00
Company
HUAFA
Property 1,000,000.00 1,000,000.00
Company
Hengfa
Technology 183,608,900.00 183,608,900.00
Company
Huafa Trading
0.00
Company
HUAFA
Hengtian 1,000,000.00 1,000,000.00
Company
HUAFA
Hengtai 1,000,000.00 1,000,000.00
Company
Total 186,608,900.00 186,608,900.00 600,000.00
4. Operating income and cost
RMB/CNY
Current period Last period
Item
Income Cost Income Cost
Other business 16,720,522.47 2,040,226.11 18,041,135.31 3,172,031.59
Total 16,720,522.47 2,040,226.11 18,041,135.31 3,172,031.59
Information relating to revenue:
RMB/CNY
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Category Branch 1 Branch 2 Total
Including:
Including:
Including:
Including:
Including:
Including:
Including:
Information relating to performance obligations:
Nil
Information relating to the transaction price assigned to the remaining performance obligation:
At end of the period, the corresponding revenue amount for performance obligations that have been signed but have not been
performed or have not been performed is 0.00 yuan, of which, yuan expected to recognized as revenue in the year.
Other explanation:
Nil
XV. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □Not applicable
RMB/CNY
Item Amount Note
Gains/losses from the disposal of
-99,867.53
non-current asset
Gain/loss of entrusted investment or assets
66,780.40
management
Other non-operating income and
expenditure except for the aforementioned 37,897.68
items
Less: Impact on income tax 7,109.46
Total -2,298.91 --
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
2. ROE and earnings per share
Earnings per share
Profits during report period Weighted average ROE Basic earnings per Diluted earnings per
share(RMB/Share) share(RMB/Share)
Net profits belong to common
stock stockholders of the 0.96% 0.0112 0.0112
Company
Net profits belong to common
stock stockholders of the 0.96% 0.0112 0.0112
Company after deducting
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深圳中恒华发股份有限公司 2020 年半年度报告全文
nonrecurring gains and losses
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深圳中恒华发股份有限公司 2020 年半年度报告全文
Section XII. Documents available for reference
I. Text of the Annual Report caring signature of the Chairman;
II. Financial statement carrying the signatures and seals of the person in charge of the Company, principal of the
accounting works and person in charge of accounting organ;
III. All documents of the Company and manuscripts of public notices that disclosed in the China Securities journal,
Securities Times and Hong Kong Commercial Daily designated by CSRC in the report period;
IV. Article of Association
V. Other relevant files.
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