Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
April 2021
1
Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng
Huafa Co., Ltd (hereinafter referred to as the Company) and its directors,
supervisors and senior executives should guarantee the reality, accuracy and
completion of the quarterly report, there are no any fictitious statements,
misleading statements or important omissions carried in this report, and shall
take legal responsibilities, individual and/or joint.
All Directors are attended the Board Meeting for Quarterly Report deliberation.
Li Zhongqiu, person in charge of the Company, Yang Bin, person in charger of
accounting works and Wu Ai’jie, person in charger of accounting organ
(accounting officer) hereby confirm that the Financial Statement of this
Quarterly Report is authentic, accurate and complete.
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Section II. Basic situation of the Company
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
At the same period of last Changes of this period over
Current period
year same period of last year
Operating income (RMB) 190,936,203.57 87,800,584.55 117.47%
Net profit attributable to shareholders of
5,566,539.83 -400,741.17 1,489.06%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 5,485,566.41 -208,179.52 2,735.02%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
-5,125,776.38 7,931,308.59 -164.63%
activities (RMB)
Basic earnings per share (RMB/Share) 0.0197 -0.0014 1,507.14%
Diluted earnings per share (RMB/Share) 0.0197 -0.0014 1,507.14%
Weighted average ROE 1.64% -0.12% 1.76%
Changes of this period-end
At the end of the reporting
At the end of last year over same period-end of last
period
year
Total assets (RMB) 637,533,668.46 627,779,621.06 1.55%
Net assets attributable to shareholder of
341,815,277.12 336,248,737.29 1.65%
listed company (RMB)
Items and amount of non-recurring gains and losses
√ Applicable □ Not applicable
In RMB
Amount from year-begin to
Item Note
period-end
Gains/losses from the disposal of non-current asset (including the
-6,163.53
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
6,000.00
national standards, which are closely relevant to enterprise’s
business)
Gain or loss on the investment or management of assets 71,186.44
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Other non-operating income and expenditure except for the
10,677.58
aforementioned items
Less: impact on income tax 727.07
Total 80,973.42 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders at the end of this report period and top ten common shareholders
In shares
Total preference shareholders
Total common stock shareholders in with voting rights recovered at
22,456 0
reporting period-end end of reporting period (if
applicable)
Top ten shareholders
Amount of Number of share pledged/frozen
Shareholder’s Nature of Proportion of Amount of shares
restricted shares
name shareholder shares held held State of share Amount
held
Wuhan Domestic Pledged 116,100,000
Zhongheng non-state-owned 42.13% 119,289,894 0
Frozen 119,289,894
Group legal person
SEG (HONG Pledged 0
Overseas legal
KONG) CO., 5.85% 16,569,560 0
person Frozen 0
LTD.
GOOD HOPE Pledged 0
CORNER Overseas legal
2.50% 7,072,000 0
INVESTMENTS person Frozen 0
LTD.
Changjiang Pledged 0
Securities
Overseas legal
Brokerage 1.89% 5,355,249 0
person Frozen 0
(Hongkong) Co.,
Ltd.
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Guoyuan Pledged 0
Securities Overseas legal
1.37% 3,870,117 0
Brokerage (Hong person Frozen 0
Kong) Limited
Overseas nature Pledged 0
Li Zhongqiu 1.00% 2,830,000 0
person Frozen 0
China Merchants Pledged 0
State-owned legal
Securities Hong 0.79% 2,230,608 0
person Frozen 0
Kong Co., Ltd.
LI SHERYN Overseas nature Pledged 0
0.51% 1,446,100 0
ZHAN MING person Frozen 0
Shengyin Pledged 0
Overseas legal
Investment Co., 0.50% 1,408,600 0
person Frozen 0
Ltd.
Domestic nature Pledged 0
# Xu Xinfen 0.45% 1,288,000 0
person Frozen 0
Top ten shareholders with unrestricted shares held
Type of shares
Shareholder’s name Amount of unrestricted shares held
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
7,072,000 listed foreign 7,072,000
INVESTMENTS LTD.
shares
Domestically
Changjiang Securities Brokerage
5,355,249 listed foreign 5,355,249
(Hongkong) Co., Ltd.
shares
Domestically
Guoyuan Securities Brokerage
3,870,117 listed foreign 3,870,117
(Hong Kong) Limited
shares
Domestically
Li Zhongqiu 2,830,000 listed foreign 2,830,000
shares
Domestically
China Merchants Securities Hong
2,230,608 listed foreign 2,230,608
Kong Co., Ltd.
shares
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Domestically
LI SHERYN ZHAN MING 1,446,100 listed foreign 1,446,100
shares
Domestically
Shengyin Investment Co., Ltd. 1,408,600 listed foreign 1,408,600
shares
RMB common
# Xu Xinfen 1,288,000 1,288,000
share
Among the top ten shareholders, Li Zhongqiu is the actual controller of Wuhan Zhongheng
New Science & Technology Industrial Group Co., Ltd. and is a party acting in
Explanation on associated concert.Shengyin Investment Co., Ltd. is an overseas wholly-owned subsidiary of Wuhan
relationship among the aforesaid Zhongheng group.
shareholders The Company neither knew whether there exists associated relationship among the other
shareholders, nor they belong to consistent actors that are prescribed in Measures for the
Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
Explanation on top 10 common
shareholders involving margin N/A
business (if applicable)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back
agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial
index and explanations of reasons
√Applicable □Not applicable
Item March 31, 2021 January 1, 2021 Y-o-y Reasons of changes
changes
Other receivables -53.87% Decrease in current accounts
2,060,681.11 4,466,949.96
Inventory 47.62% Stocking in this period
103,742,880.06 70,502,773.52
Other current assets -73.46% The tax to be deducted is deducted for
1,129,263.49 4,255,643.19 the current period.
Long-term prepaid -75.00% Cloud service fee amortization
expenses 19,361.35 77,445.31
Short-term loans 67.00% Short-term bank loans were increased
20,921,296.00 12,527,808.00 in the current period.
Contract liabilities -40.34% The deposit received in advance has
171,293.92 287,140.66 decreased during the period.
Employee -45.86% The prepaid wages and expenses are
compensation 3,106,406.38 5,737,366.59 paid in the current period
payable
Other payables -32.79% Decrease in current accounts
18,556,536.88 27,608,281.01
Interest payable 139.55% Short-term loans increased in the
63,086.88 26,335.66 current period.
Item January to March January to March Y-o-y Reasons of changes
2021 2020 changes
Operating income 117.47% Increase in orders this period
190,936,203.57 87,800,584.55
Operating cost 118.10% Increase in orders this period
160,681,999.84 73,672,446.25
Sales expense 178.52% Increase in orders this period
9,604,962.16 3,448,537.85
R&D expenses 119.12% Increased in R&D investment in this
1,990,208.94 908,285.77 period
Other income 84.53% Amortization of deferred income for
119,520.00 64,770.00 the current period
Investment income 90.26% Increase in financial income during
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
71,186.44 37,415.02 the current period
Non-operating 254.39% Government subsidy income from the
income 19,464.75 5,492.44 previous period
Non-operating -96.61% Liquidated damages occurred in the
expenses 8,950.00 263,835.56 previous period
Income tax expense -1702.25% Increase in profit for the period
1,362,439.81 -85,032.71
Item January to March January to March Y-o-y Reasons of changes
2021 2020 changes
Cash received from 37.26% Increase in sales collection in this
the sale of goods 118,847,638.92 86,584,529.58 period
and the provision of
labor services
Cash paid for 59.91% Increase in orders this period
purchasing goods 90,764,568.41 56,760,923.41
and receiving labor
services
Cash paid to and for 112.98% Increase in orders this period
employees 18,034,045.23 8,467,600.61
245.12% Increase in orders this period
Taxes paid
8,114,109.92 2,351,100.26
Cash received from 90.26% Margin interest increased in this
investment income 71,186.44 37,415.02 period
Net cash received -85.71% Disposal of old equipment in the
from the disposal of 13,000.00 91,000.00 previous period
fixed assets,
intangible assets and
other long-term
assets
Cash paid for the 247.74% Purchase production equipment in
purchase and 1,624,675.50 467,211.58 this period
construction of fixed
assets, intangible
assets and other
long-term assets
Other cash paid -100.00% Bank wealth management decreased
relating to investing - 25,000,000.00 in this period
activities
Cash received from 207.96% Increase in short-term loans
loans 20,710,525.00 6,725,056.80
Other cash paid Increase acceptance margin in this
relating to financing 6,408,886.53 - period
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
activities
Influence on cash 484.35% The impact of exchange rate
and cash equivalents -124,286.41 32,336.78 fluctuations in the current period
due to fluctuation in
exchange rate
II. Analysis and explanation of significant events and their influence and solutions
√ Applicable □Not applicable
(i) 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 of
2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal
and the progress of related transactions of ‘the updated units at Huafa Area, Gong Ming Street, Guangming New
District, Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of the
updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for the
cooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming New
District” and “Agreement on housing acquisition and removal compensation and resettlement” with Wuhan
Wuhan Zhongheng Group, Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”),
and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke
Guangming”).
On 12 September 2016, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”
against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) has
given a ruling in August 2017. On August 29, 2018, the court accepted the compulsory execution application of
Shenzhen Vanke. In October 2019, as a number of outsiders filed an “execution objection” and applied for “no
execution” to Shenzhen Intermediate People’s Court, the Shenzhen Intermediate People’s Court ruled to terminate
the enforcement procedure on March 20, 2020. If the “execution objection” and “no execution” proposed by
outsiders are rejected according to law, Shenzhen Vanke may continue to apply to the Shenzhen Intermediate
People’s Court to resume execution. In mid April 2020, Heng semiconductor sued the company in Shenzhen
intermediate people's court, requiring the company to transfer the above two pieces of land and compensate for the
economic loss of 52 million yuan. As of the disclosure date of this report, the case has not yet been
concluded.Progress of the case found more in the Notices released on Juchao website dated 14 Sept. 2016, 1 Nov.
2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018,
25 Aug. 2018 and 7 Sept. 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China
Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. On 1 Feb. 2016, Wuhan Zhongheng
Group pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31
December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expired
on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till end
of this period released, controlling shareholder still not removed the pledge and the Company has apply by letter,
relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice
released on Juchao website date 2 Feb. 2018.
Wuhan Zhongheng Group received the first-instance judgment of Guangdong Higher People’s Court to the
“pledged securities repurchase dispute” case sued by China Merchants Securities Asset Management Co., Ltd. in
March 2021. Wuhan Zhongheng Group refused to accept the judgment and has appealed to the Supreme People's
Court, the judgment of first instance has not yet taken effect. For details, please refer to the company
announcement issued by the company on www.cninfo.com.cn on March 19, 2021.
(iii) The controlling shareholder Wuhan Zhongheng Group holds 119,289,894 shares of the Company’ stock,
accounting for 42.13% of the total share capital of the Company, of which 116,489,894 shares were judicially frozen
by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on September
27, 2016, which were frozen again by the Shenzhen Intermediate People's Court on December 14, 2018, with a
frozen period of 36 months; the remaining 2,800,000 shares were frozen by the Shenzhen Intermediate People's
Court on May 29, 2019, and were frozen again by the Higher People’s Court of Guangdong Province on July 5,
2019. For details, please refer to the company’s announcements published on Juchao Website dated October 27,
2016, January 11, 2019, May 31, 2019 and August 7, 2019.
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
(iv) On September 29, 2016, the company and its controlling shareholder, Wuhan Zhongheng Group, signed the
“Agency Contract” with V&T Law Firm. On October 8, 2016, the three parties also signed the “Supplemental
Agreement for Agency Contract”, it was agreed that V&T acted as an agent for the company and Wuhan
Zhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit, due to
differences in the payment of attorney fees, V&T sued our company and Wuhan Zhongheng Group to the
Shenzhen Court of International Arbitration, and applied to the court to seize a bank account under our company’s
name and part of our company dormitories, please refer to “Other Announcements on the Progress Involving
Litigation and Arbitration” (Announcement Numbers: 2018-43, 2019-02) released by our company on Juchao
Website dated 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 profit. For details, see the company’s “Other Announcements on the Progress Involving Litigation and
Arbitration” (Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
Summary of important issues Disclosure date Interim report disclosure index
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
□ Applicable √ Not applicable
The Company has no commitments completed in Period and those without completed till end of the Period from actual controller,
shareholders, related parties, purchaser and companies.
IV. Financial asset investment
1. Securities investment
□ Applicable √ Not applicable
No security investment in the Period.
2. Derivative investment
□ Applicable √ Not applicable
No derivative investment in the Period.
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
V. Progress of investment projects with raised funds
□ Applicable √ Not applicable
VI. Prediction of business performance from January – June 2021
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
VII. Major contracts for daily operations
□ Applicable √ Not applicable
VIII. Trust financing
□ Applicable √ Not applicable
No trust financing in the Period.
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the period.
X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation form controlling shareholders and its related party in the period.
XI. Registration form for receiving research, communication and interview in the report
period
√ Applicable □ Not applicable
Main content
Reception Type of Index for the interview
Date Method Object and information
location investors and research
provided
Understand the
company's
Office of the
production and
BOD locates in Telephone
January 5, 2021 Individual Individual operation N/A
6/F, Huafa communication
situation,
Building
litigation
progress and the
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
progress of
urban renewal
projects
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
March 31, 2021
In RMB
Item March 31, 2021 March 31, 2020
Current assets:
Monetary fund 57,688,251.58 60,968,053.58
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 9,506,829.34 20,240,464.79
Account receivable 141,260,234.64 128,063,911.79
Receivable financing 9,727,239.72 10,057,385.11
Accounts paid in advance 35,287,786.09 39,643,255.11
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 2,060,681.11 4,466,949.96
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 103,742,880.06 70,166,013.49
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 1,129,263.49 4,255,643.19
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Total current assets 360,403,166.03 337,861,677.02
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 46,792,579.70 47,224,662.27
Fixed assets 181,745,798.39 193,605,444.53
Construction in progress 740,000.00 740,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 40,383,028.86 40,820,657.80
Expense on Research and
Development
Goodwill
Long-term expenses to be
19,361.35 77,445.31
apportioned
Deferred income tax asset 7,383,734.13 7,383,734.13
Other non-current asset 66,000.00 66,000.00
Total non-current asset 277,130,502.43 289,917,944.04
Total assets 637,533,668.46 627,779,621.06
Current liabilities:
Short-term loans 20,921,296.00 12,527,808.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 37,089,784.05 37,416,381.20
Account payable 120,547,983.80 98,318,239.88
Accounts received in advance
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Contractual liability 171,293.92 287,140.66
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 3,106,406.38 5,737,366.59
Taxes payable 11,967,269.75 14,204,642.62
Other account payable 18,556,536.88 27,608,281.01
Including: Interest payable 63,086.88 26,335.66
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
12,000,000.00 12,000,000.00
one year
Other current liabilities 9,369,289.56 18,322,972.81
Total current liabilities 233,434,975.36 226,127,947.79
Non-current liabilities:
Insurance contract reserve
Long-term loans 58,000,000.00 61,000,000.00
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 3,924,120.00 4,043,640.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 61,988,531.00 65,108,051.00
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Total liabilities 295,718,391.34 291,530,883.77
Owner’s equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 146,577,771.50 146,577,771.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 77,391,593.25 77,391,593.25
Provision of general risk
Retained profit -165,315,314.63 -170,881,854.46
Total owner’ s equity attributable to
341,815,277.12 336,248,737.29
parent company
Minority interests
Total owner’ s equity 341,815,277.12 336,248,737.29
Total liabilities and owner’ s equity 637,533,668.46 627,779,621.06
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item March 31, 2021 March 31, 2020
Current assets:
Monetary funds 1,575,886.56 966,379.17
Trading financial assets
Derivative financial assets
Note receivable
Account receivable
Receivable financing
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Accounts paid in advance 665,035.03 73,685.03
Other account receivable 91,466,272.68 93,922,057.92
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
Total current assets 93,722,000.77 94,976,928.62
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 186,618,400.00 186,618,400.00
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 23,655,797.76 23,957,898.42
Fixed assets 96,378,435.71 96,610,714.88
Construction in progress 740,000.00 740,000.00
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 4,372,527.09 4,408,763.52
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 7,443,826.11 7,443,826.11
Other non-current assets
Total non-current assets 319,208,986.67 319,843,364.57
Total assets 412,930,987.44 414,820,293.19
Current liabilities
Short-term borrowings
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Trading financial liability
Derivative financial liability
Notes payable
Account payable 9,740,367.33 10,745,840.16
Accounts received in advance
Contractual liability 70,649.09 79,195.32
Wage payable 818,625.54 1,476,601.12
Taxes payable 8,714,006.22 7,892,878.33
Other accounts payable 19,909,799.93 21,304,919.43
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
12,000,000.00 12,000,000.00
one year
Other current liabilities 3,959.77
Total current liabilities 51,253,448.11 53,208,509.15
Non-current liabilities:
Long-term loans 58,000,000.00 61,000,000.00
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 58,064,411.00 61,064,411.00
Total liabilities 109,317,859.11 114,272,920.15
Owners’ equity:
Share capital 283,161,227.00 283,161,227.00
Other equity instrument
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
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 -203,526,963.42 -206,656,480.35
Total owner’s equity 303,613,128.33 300,483,611.40
Total liabilities and owner’s equity 412,930,987.44 414,756,531.55
3. Consolidated Profit Statement
In RMB
Item Current period Last period
I. Total operating income 190,936,203.57 87,800,584.55
Including: Operating income 190,936,203.57 87,800,584.55
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 184,208,445.12 88,130,200.33
Including: Operating cost 160,681,999.84 73,672,446.25
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 643,046.97 584,743.27
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Sales expense 9,604,962.16 3,448,537.85
Administrative expense 9,403,968.16 8,058,091.66
R&D expense 1,990,208.94 908,285.77
Financial expense 1,884,259.05 1,458,095.53
Including: Interest
1,805,136.09 2,375,650.33
expenses
Interest income 107,550.38 128,721.93
Add: other income 119,520.00 64,770.00
Investment income (Loss is
71,186.44 37,415.02
listed with “-”)
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income from assets disposal
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
6,918,464.89 -227,430.76
“-”)
Add: Non-operating income 19,464.75 5,492.44
Less: Non-operating expense 8,950.00 263,835.56
IV. Total profit (Loss is listed with “-”) 6,928,979.64 -485,773.88
Less: Income tax expense 1,362,439.81 -85,032.71
V. Net profit (Net loss is listed with “-”) 5,566,539.83 -400,741.17
(i) Classify by business continuity
1.continuous operating net profit
5,566,539.83 -400,741.17
(net loss listed with ‘-”)
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
5,566,539.83 -400,741.17
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
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
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
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 5,566,539.83 -400,741.17
Total comprehensive income
5,566,539.83 -400,741.17
attributable to owners of parent Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0197 -0.0014
(ii) Diluted earnings per share 0.0197 -0.0014
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 institute: Wu Aijie
4. Profit Statement of Parent Company
In RMB
Item Current period Last period
I. Operating income 10,890,563.23 7,437,448.02
Less: Operating cost 1,783,550.06 613,839.48
Taxes and surcharge 277,510.56 257,246.31
Sales expenses
Administration expenses 2,938,581.71 3,553,655.31
R&D expenses
Financial expenses 1,709,732.01 2,015,272.00
Including: interest
1,709,745.85 2,015,830.25
expenses
Interest income 503.64 3,734.78
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
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 with
4,181,188.89 997,434.92
“-”)
Add: Non-operating income 0.35
Less: Non-operating expense 8,500.00
III. Total Profit (Loss is listed with “-”) 4,172,689.24 997,434.92
Less: Income tax 1,043,172.31 249,358.73
IV. Net profit (Net loss is listed with
3,129,516.93 748,076.19
“-”)
(i) continuous operating net profit
3,129,516.93 748,076.19
(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
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
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
VI. Total comprehensive income 3,129,516.93 748,076.19
VII. Earnings per share:
(i) Basic earnings per share 0.0111 0.0026
(ii) Diluted earnings per share 0.0111 0.0026
5. Consolidated Cash Flow Statement
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling 118,847,638.92 86,584,529.58
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
commodities and providing labor
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 1,717,004.00
Other cash received concerning
1,009,951.00 1,372,807.06
operating activities
Subtotal of cash inflow arising from
121,574,593.92 87,957,336.64
operating activities
Cash paid for purchasing
commodities and receiving labor 90,764,568.41 56,760,923.41
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 18,034,045.23 8,467,600.61
Taxes paid 8,114,109.92 2,351,100.26
Other cash paid concerning
9,787,646.74 12,446,403.77
operating activities
Subtotal of cash outflow arising from
126,700,370.30 80,026,028.05
operating activities
Net cash flows arising from operating
-5,125,776.38 7,931,308.59
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
71,186.44 37,415.02
income
Net cash received from disposal of
fixed, intangible and other long-term 13,000.00 91,000.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
25,000,000.00
investing activities
Subtotal of cash inflow from investing
84,186.44 25,128,415.02
activities
Cash paid for purchasing fixed,
1,624,675.50 467,211.58
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
25,000,000.00
investing activities
Subtotal of cash outflow from investing
1,624,675.50 25,467,211.58
activities
Net cash flows arising from investing
-1,540,489.06 -338,796.56
activities
III. Cash flows arising from financing
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 20,710,525.00 6,725,056.80
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
20,710,525.00 6,725,056.80
activities
Cash paid for settling debts 15,419,668.00 20,548,487.80
Cash paid for dividend and profit
1,780,079.26 2,393,884.15
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
6,408,886.53
financing activities
Subtotal of cash outflow from financing
23,608,633.79 22,942,371.95
activities
Net cash flows arising from financing
-2,898,108.79 -16,217,315.15
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -124,286.41 32,336.78
exchange rate
V. Net increase of cash and cash
-9,688,660.64 -8,592,466.34
equivalents
Add: Balance of cash and cash
30,050,989.33 36,645,061.61
equivalents at the period -begin
VI. Balance of cash and cash
20,362,328.69 28,052,595.27
equivalents at the period -end
6. Cash Flow Statement of Parent Company
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
Cash received from selling
commodities and providing labor 12,621,650.08 9,931,734.48
services
Write-back of tax received
Other cash received concerning
4,883,321.54 3,939,188.22
operating activities
Subtotal of cash inflow arising from
17,504,971.62 13,870,922.70
operating activities
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and workers 964,773.82 622,769.26
Taxes paid 773,606.33 1,239,019.63
Other cash paid concerning
5,419,192.42 7,205,331.06
operating activities
Subtotal of cash outflow arising from
7,157,572.57 9,067,119.95
operating activities
Net cash flows arising from operating
10,347,399.05 4,803,802.75
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
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
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
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 3,000,000.00 2,000,000.00
Cash paid for dividend and profit
1,710,249.49 2,015,830.25
distributing or interest paying
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
4,710,249.49 4,015,830.25
activities
Net cash flows arising from financing
-4,710,249.49 -4,015,830.25
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
5,637,149.56 787,972.50
equivalents
Add: Balance of cash and cash
737,682.09 2,046,143.44
equivalents at the period -begin
VI. Balance of cash and cash
6,374,831.65 2,834,115.94
equivalents at the period -end
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Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2021
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new leasing
rules from 2021
□Applicable √Not applicable
2. Retrospective adjustment of the comparative data for initial new leasing rules from 2021
□Applicable √Not applicable
III. Audit report
Whether the 1st quarterly report has been audited or not
□Yes √ No
1Q report of the Company is unaudited.
31
