Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Stock Code: 000020 200020 Public Notice No.: 2021-21 Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA-B
Shenzhen Zhongheng Huafa Co., Ltd.
The Third Quarterly Report for 2021
The Company and whole members of the BOD guarantee that the information disclosed is true,
accurate and complete, and there are no any fictitious records, misleading statements or
important omissions.
Important content reminder:
1. Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives 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 report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of
the whole contents.
2. Principal of the Company, Person in Charge of Accounting Works and Person in
Charge of Accounting Organ (Accounting Officer) hereby confirm that the Financial
Report of the Third Quarterly Report is authentic, accurate and complete.
3. Whether the Third Quarterly Report has been audited or not
□Yes √No
I. Main financial data
(i) Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Increase/decrease from
Increase/decrease in
year-begin to
the period compared Year-begin to
Current period period-end compared
with the same period period-end
with the same period
of the previous year
of the previous year
Operating income
211,898,917.91 5.85% 603,532,726.46 20.49%
(Yuan)
Net profit attributable
to shareholders of the 1,123,649.14 -33.33% 8,113,011.63 67.24%
listed company (Yuan)
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Net profit attributable
to shareholders of the
listed company after
554,781.27 -49.95% 7,332,980.06 72.67%
deducting
non-recurring gains
and losses (Yuan)
Net cash flow arising
from operating —— —— -24,053,649.58 -275.69%
activities (Yuan)
Basic earnings per
0.004 -33.33% 0.0288 68.42%
share (Yuan /Share)
Diluted earnings per
0.004 -33.33% 0.0288 68.42%
share (Yuan /Share)
Weighted average ROE 0.33% -0.19% 2.17% 0.71%
Increase/decrease at the period-end compared
End of current period End of previous year
with the end of the previous year
Total assets (Yuan) 669,050,137.81 627,779,621.06 6.57%
Net assets attributable
to shareholder of listed 344,361,748.92 336,248,737.29 2.41%
company (Yuan)
(ii) Items and amounts of non-recurring profit (gains)/losses
√ Applicable □ Not applicable
Unit: Yuan
Amount from
Amount for the year-begin to Note
Item
period
period-end
Gains/losses from the disposal of non-current asset
(including the write-off that accrued for 21,059.60 21,059.60
impairment of assets)
Government subsidy recorded in current
gains/losses (except those closely related to the
Company’s normal operation, and those
345,453.35 345,453.35
continuously enjoyed on a fixed or quantitative
basis with certain standards in accordance with
national policy regulations)
Gains/losses of entrusting others to invest or
88,894.00 238,661.58
manage assets
Other non-operating income and expenses other
113,460.92 174,857.04
than the above
Total 568,867.87 780,031.57 --
Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
□ Applicable √ Not applicable
The Company does not have other gain/loss items that qualified the definition of non-recurring profit (gains)/losses
Explanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
□ Applicable √ Not applicable
The Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss
(iii) Particulars about changes in items of main accounting data and financial index and explanations of
reasons
√ Applicable □Not applicable
Item January-September January-September Changes Reason
2021 2020 ratio
Salary for R&D from Hengfa
R&D expenses 5,653,280.67 4,313,254.44 31%
increased
Other income 345,453.35 645,623.00 -46% Government subsidy of Hengfa
Gains on acceptance margin
Investment income 238,661.58 103,172.15 131%
from Hengfa
Disposal the company’s
Asset disposal income 21,059.60 -93,373.67 -123%
vehicles
Government subsidy received
at the period-end was less than
Non-operating income 394,744.60 681,877.61 -42%
those received in the same
period last year
Non-operating expenses 219,887.56 7,302.38 2911% Disposal of fixed assets
Item September 30, 2021 September 30, 2021 Changes Reason
ratio
Decrease in the amount of
Accounts receivable financing 5,774,948.69 25,436,468.30 -77%
promissory note
Due to the impact of
international epidemic, some
raw materials are in short
supply in the market, inventory
Inventory 98,556,230.42 61,964,943.06 59%
of the Company are increased
in an appropriated amount
according to the operation
needs
Other current assets 741,380.21 234,014.36 217% VAT retention credit
The contract signed through
Long-term prepaid expenses 568,577.93 135,529.27 320% system, and the expenses to be
amortized increased
Borrowings of Hengfa
Thhe Short-term loan 39,841,600.00 13,660,894.00 192%
increased
Account received in advance
Contract liabilities 574,325.56 2,575,945.15 -78%
declined
Borrowings increased in the
Interest payable 124,190.30 32,583.49 281% period, and the interest
increased
Non-current liabilities due Reclassification of long-term
12,000,000.00 -100%
within one year loans
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
II. Shareholders Information
(i) Total number of common shareholders and preference shareholders with voting rights recovered and
top ten common shareholders
Unit: Share
Total preference
shareholders with voting
Total common shareholders at the
20,191 rights recovered at end of 0
end of report period
reporting period (if
applicable)
Top ten shareholders
Amount of Information of shares pledged,
Shareholder’s Nature of Proportion of Amount of
restricted tagged or frozen
name shareholder shares held shares held
shares held State of share Amount
Wuhan Pledged 116,100,000
Zhongheng
Domestic
New Science &
non-state-owne 42.13% 119,289,894 0
Technology Frozen 119,289,894
d legal person
Industrial
Group Co., Ltd
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
INVESTMEN person Frozen 0
TS LTD.
Changjiang Pledged 0
Securities
Overseas legal
Brokerage 1.89% 5,355,249 0
person Frozen 0
(Hongkong)
Co., Ltd.
Guoyuan Pledged 0
Securities
Overseas legal
Brokerage 1.37% 3,870,117 0
person Frozen 0
(Hong Kong)
Limited
Overseas Pledged 0
Li Zhongqiu 1.00% 2,830,000 0
nature person Frozen 0
Domestic Pledged 0
Jin Guoping 0.86% 2,443,500 0
nature person Frozen 0
Domestic Pledged 0
Huang Xuelin 0.66% 1,880,503 0
nature person Frozen 0
China Pledged 0
Merchants
State-owned
Securities 0.60% 1,708,873 0
legal person Frozen 0
Hong Kong
Co., Ltd.
Domestic Pledged 0
Li Wei non-state-owne 0.57% 1,610,000 0
d legal person Frozen 0
Top ten shareholders with unrestricted shares held
Shareholder’s name Amount of unrestricted shares held Type of shares
Type Amount
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Wuhan Zhongheng New Science
RMB common
& Technology Industrial Group 119,289,894 119,289,894
share
Co., Ltd
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
RMB common
Jin Guoping 2,443,500 2,443,500
share
RMB common
Huang Xuelin 1,880,503 1,880,503
share
Domestically
China Merchants Securities Hong
1,708,873 listed foreign 1,708,873
Kong Co., Ltd.
shares
Domestically
Li Wei 1,610,000 listed foreign 1,610,000
shares
Explanation on associated 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 concert. The
relationship among the aforesaid Company neither knew whether there exists associated relationship among the other
shareholders shareholders, nor they belong to consistent actors that are prescribed in Measures for the
Administration of Disclosure of Shareholder Equity Changes of Listed Companies.
Among the top ten shareholders, Jin Guoping holds 73,200 shares through ordinary
Explanation on top 10
accounts, 2,370,300 shares through credit securities accounts, totaling 2,443,500 shares;
shareholders involving margin
Huang Xuelin holds 629,902 shares through ordinary accounts, and 1,250,601 shares
business (if applicable)
through credit securities accounts, totaling 1,880,503 shares.
(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred
stock held
□ Applicable √ Not applicable
III. Other significant events
√ 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
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
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” on 26 August 2015, 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
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 April 2020, Zhongheng Semiconductor sued the company to Shenzhen
Intermediate People’s Court, and requested the company to transfer the above mentioned two pieces of lands and
compensate the economic loss of 52 million yuan, the company received the first trial verdict in the case in May
2021. and the company appealed to the supreme people’s court against the judgment, which has not yet entered
into force. 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, 7 Sept. 2018, 21 Apr. 2020, 3 Jun, 2021 and 22 Jul. 2021 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
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
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 dated 2 Feb. 2018.
(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.
(iv) 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 Juchao Website dated March 19, 2021.
(v) 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 on Juchao Website dated
November 14, 2018 and March 6, 2019. The Shenzhen Court of International Arbitration ruled that the company
and Wuhan Zhongheng Group paid the corresponding fees. The loss of the arbitrament in this case was borne by
Wuhan Zhongheng Group in whole, and found more on “Other Announcements on the Progress Involving
Litigation and Arbitration” (Announcement No.: 2019-34) released on Juchao Website dated November 25, 2019.
IV. Quarterly financial statements
(i) Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
September 30, 2021
Unit: Yuan
Item September 30, 2021 December 31, 2020
Current assets:
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Monetary fund 42,948,262.54 60,968,053.58
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 43,892,072.62 20,240,464.79
Account receivable 144,703,950.74 128,063,911.79
Receivable financing 5,774,948.69 10,057,385.11
Accounts paid in advance 19,408,972.82 39,643,255.11
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 29,057,128.91 4,466,949.96
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 98,556,230.42 70,166,013.49
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 741,380.21 4,255,643.19
Total current assets 385,082,946.95 337,861,677.02
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 45,928,414.57 47,224,662.27
Fixed assets 189,772,693.25 193,605,444.53
Construction in progress 740,000.00 740,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 39,507,770.98 40,820,657.80
Expense on Research and
Development
Goodwill
Long-term expenses to be
568,577.93 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
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Total non-current asset 283,967,190.86 289,917,944.04
Total assets 669,050,137.81 627,779,621.06
Current liabilities:
Short-term loans 39,841,600.00 12,527,808.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 33,139,828.80 37,416,381.20
Account payable 131,338,903.49 98,318,239.88
Accounts received in advance
Contractual liability 574,325.56 287,140.66
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 4,376,465.86 5,737,366.59
Taxes payable 11,979,156.41 14,204,642.62
Other account payable 22,295,013.77 27,608,281.01
Including: Interest payable 124,190.30 26,335.66
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due
12,000,000.00
within one year
Other current liabilities 16,135,044.00 18,322,972.81
Total current liabilities 259,580,337.89 226,422,832.77
Non-current liabilities:
Insurance contract reserve
Long-term loans 61,000,000.00 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 4,043,640.00 4,043,640.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 65,108,051.00 65,108,051.00
Total liabilities 324,688,388.89 291,530,883.77
Owner’s equity:
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
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 -162,768,842.83 -170,881,854.46
Total owner’ s equity attributable to
344,361,748.92 336,248,737.29
parent company
Minority interests
Total owner’ s equity 344,361,748.92 336,248,737.29
Total liabilities and owner’ s equity 669,050,137.81 627,779,621.06
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Chuai Guoxu
2. Consolidated Profit Statement (from the year-begin to the period-end)
Unit: Yuan
Item Current period Last period
I. Total operating income 603,532,726.46 500,887,222.16
Including: Operating income 603,532,726.46 500,887,222.16
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 592,280,418.87 496,032,602.64
Including: Operating cost 525,693,924.66 436,770,935.85
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 2,180,093.13 1,697,965.55
Sales expense 18,991,695.17 14,895,442.53
Administrative expense 33,036,011.08 29,667,000.90
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
R&D expense 5,653,280.67 4,313,254.44
Financial expense 6,725,414.16 8,688,003.37
Including: Interest
5,977,916.47 6,620,657.92
expenses
Interest
234,372.30 -694,194.83
income
Add: other income 345,453.35 645,623.00
Investment income (Loss is
238,661.58 103,172.15
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
-1,350,000.00
asset (Loss is listed with “-”)
Income from assets disposal
21,059.60 -93,373.67
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
10,507,482.12 5,510,041.00
“-”)
Add: Non-operating income 394,744.60 681,877.61
Less: Non-operating expense 219,887.56 7,302.38
IV. Total profit (Loss is listed with “-”) 10,682,339.16 6,184,616.23
Less: Income tax expense 2,569,327.53 1,333,529.74
V. Net profit (Net loss is listed with
8,113,011.63 4,851,086.49
“-”)
(i) Classify by business continuity
1.continuous operating net profit
8,113,011.63 4,851,086.49
(net loss listed with ‘-”)
2.termination of net profit (net
loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to
8,113,011.63 4,851,086.49
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
company
(i) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
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Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
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 8,113,011.63 4,851,086.49
Total comprehensive income
attributable to owners of parent 8,113,011.63 4,851,086.49
Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0288 0.0171
(ii) Diluted earnings per share 0.0288 0.0171
Enterprise combine under the same control in the Period, the combined party realized net profit of 0.00 Yuan before combination, and
realized 0.00 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: Chuai Guoxu
3. Consolidated Cash Flow Statement (from the year-begin to the period-end)
Unit: Yuan
Item Current period Last period
12
Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 383,981,831.41 404,327,921.90
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 2,159,861.95 105,447.58
Other cash received concerning
35,130,159.40 18,415,376.92
operating activities
Subtotal of cash inflow arising from
421,271,852.76 422,848,746.40
operating activities
Cash paid for purchasing
commodities and receiving labor 291,924,059.89 316,753,970.40
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
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and
54,527,895.49 43,987,629.67
workers
Taxes paid 19,266,205.32 6,909,436.73
Other cash paid concerning
79,607,341.64 41,506,986.55
operating activities
Subtotal of cash outflow arising from
445,325,502.34 409,158,023.35
operating activities
Net cash flows arising from operating
-24,053,649.58 13,690,723.05
activities
II. Cash flows arising from investing
activities:
13
Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
Cash received from recovering
investment
Cash received from investment
275,579.90 85,357.08
income
Net cash received from disposal
of fixed, intangible and other 100,950.00 213,913.05
long-term assets
Net cash received from disposal
of subsidiaries and other units
Other cash received concerning
45,000,000.00
investing activities
Subtotal of cash inflow from
376,529.90 45,299,270.13
investing activities
Cash paid for purchasing fixed,
3,919,845.12 3,628,023.06
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
45,000,000.00
investing activities
Subtotal of cash outflow from
3,919,845.12 48,628,023.06
investing activities
Net cash flows arising from investing
-3,543,315.22 -3,328,752.93
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 86,967,694.00 20,610,902.80
Other cash received concerning
financing activities
Subtotal of cash inflow from
86,967,694.00 20,610,902.80
financing activities
Cash paid for settling debts 71,384,425.00 40,370,812.20
Cash paid for dividend and
5,510,317.28 6,089,776.45
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
76,894,742.28 46,460,588.65
financing activities
Net cash flows arising from financing
10,072,951.72 -25,849,685.85
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -495,777.96 -509,270.83
exchange rate
V. Net increase of cash and cash
-18,019,791.04 -15,996,986.56
equivalents
Add: Balance of cash and cash 60,968,053.58 36,645,061.61
14
Shenzhen Zhongheng Huafa Co.,Ltd. Third quarter 2021 report
equivalents at the period-begin
VI. Balance of cash and cash
42,948,262.54 20,648,075.05
equivalents at the period-end
(ii) Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new leasing
standards from 2021
□ Applicable √ Not applicable
2. Retrospective adjustment of the comparative data for initial implementation of new leasing standards
from 2021
□ Applicable √ Not applicable
(iii) Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
Board of Directors of
Shenzhen Zhongheng Huafa Co., Ltd.
October 22, 2021
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