Stock Code: 000020 200020 Short Form of the Stock: SHEN HUAFA-A, SHEN HUAFA-B Public Notice No.: 2022-18
Shenzhen Zhongheng Huafa Co., Ltd.
Supplementary Correction Notice
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.
Shenzhen Zhongheng Huafa Co.,Ltd. (Hereinafter referred to as the "Company") disclosed The Full
Text of The Report for The First quarter of 2021, The Text of The Report for The First Quarter of
2021(Announcement No.:2021-10), Semi-Annual Report 2021, Summary of Semi-Annual Report
2021 (Announcement No. :2021-19) and The Third Quarter Report 2021 (Announcement
No. :2021-21) on April 27, 2021, August 24, 2021 and October 26, 2021 respectively. The following
corrections are hereby made：
一、The original The Full Text of The Report for The First quarter of 2021
（一）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%
At the end of the reporting Changes of this period-end
At the end of last year
period over same period-end of last
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)
Revised content:
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
5,557,677.31 -400,741.17 1,489.06%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 5,476,703.89 -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) 637,523,241.97 627,779,621.06 1.55%
Net assets attributable to shareholder of
341,806,414.60 336,248,737.29 1.65%
listed company (RMB)
（二）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 2,060,681.11 4,466,949.96 -53.87% Decrease in current accounts
Inventory 103,742,880.06 70,502,773.52 47.62% Stocking in this period
The tax to be deducted is deducted for
Other current assets 1,129,263.49 4,255,643.19 -73.46%
the current period.
Long-term prepaid Cloud service fee amortization
19,361.35 77,445.31 -75.00%
expenses
Short-term bank loans were increased
Short-term loans 20,921,296.00 12,527,808.00 67.00%
in the current period.
The deposit received in advance has
Contract liabilities 171,293.92 287,140.66 -40.34%
decreased during the period.
Employee The prepaid wages and expenses are
compensation 3,106,406.38 5,737,366.59 -45.86% paid in the current period
payable
Other payables 18,556,536.88 27,608,281.01 -32.79% Decrease in current accounts
Short-term loans increased in the
Interest payable 63,086.88 26,335.66 139.55%
current period.
January to March January to March Y-o-y Reasons of changes
Item
2021 2020 changes
Operating income 190,936,203.57 87,800,584.55 117.47% Increase in orders this period
Operating cost 160,681,999.84 73,672,446.25 118.10% Increase in orders this period
Sales expense 9,604,962.16 3,448,537.85 178.52% Increase in orders this period
Increased in R&D investment in this
R&D expenses 1,990,208.94 908,285.77 119.12%
period
Amortization of deferred income for
Other income 119,520.00 64,770.00 84.53%
the current period
Increase in financial income during
Investment income 71,186.44 37,415.02 90.26%
the current period
Non-operating Government subsidy income from the
19,464.75 5,492.44 254.39%
income previous period
Non-operating Liquidated damages occurred in the
8,950.00 263,835.56 -96.61%
expenses previous period
Income tax expense 1,362,439.81 -85,032.71 -1702.25% Increase in profit for the period
January to March January to March Y-o-y Reasons of changes
Item
2021 2020 changes
Cash received from Increase in sales collection in this
the sale of goods period
118,847,638.92 86,584,529.58 37.26%
and the provision of
labor services
Cash paid for Increase in orders this period
purchasing goods
90,764,568.41 56,760,923.41 59.91%
and receiving labor
services
Cash paid to and for Increase in orders this period
18,034,045.23 8,467,600.61 112.98%
employees
Taxes paid 8,114,109.92 2,351,100.26 245.12% Increase in orders this period
Cash received from Margin interest increased in this
71,186.44 37,415.02 90.26%
investment income period
Net cash received Disposal of old equipment in the
from the disposal of previous period
fixed assets,
13,000.00 91,000.00 -85.71%
intangible assets and
other long-term
assets
Cash paid for the Purchase production equipment in
purchase and this period
construction of fixed
1,624,675.50 467,211.58 247.74%
assets, intangible
assets and other
long-term assets
Other cash paid Bank wealth management decreased
relating to investing - 25,000,000.00 -100.00% in this period
activities
Cash received from Increase in short-term loans
20,710,525.00 6,725,056.80 207.96%
loans
Other cash paid Increase acceptance margin in this
relating to financing 6,408,886.53 - period
activities
Influence on cash The impact of exchange rate
and cash equivalents fluctuations in the current period
-124,286.41 32,336.78 484.35%
due to fluctuation in
exchange rate
Revised content:
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 2,060,681.11 4,466,949.96 -53.87% Decrease in current accounts
Inventory 103,732,453.57 70,502,773.52 47.13% Stocking in this period
The tax to be deducted is deducted for
Other current assets 1,129,263.49 4,255,643.19 -73.46%
the current period.
Long-term prepaid Cloud service fee amortization
19,361.35 77,445.31 -75.00%
expenses
Short-term bank loans were increased
Short-term loans 20,921,296.00 12,527,808.00 67.00%
in the current period.
The deposit received in advance has
Contract liabilities 171,293.92 287,140.66 -40.34%
decreased during the period.
Employee The prepaid wages and expenses are
compensation 3,106,406.38 5,737,366.59 -45.86% paid in the current period
payable
Other payables 18,556,536.88 27,608,281.01 -32.79% Decrease in current accounts
Short-term loans increased in the
Interest payable 63,086.88 26,335.66 139.55%
current period.
January to March January to March Y-o-y Reasons of changes
Item
2021 2020 changes
Operating income 190,936,203.57 87,800,584.55 117.47% Increase in orders this period
Operating cost 160,692,426.33 73,672,446.25 118.12% Increase in orders this period
Sales expense 9,604,962.16 3,448,537.85 178.52% Increase in orders this period
Increased in R&D investment in this
R&D expenses 1,990,208.94 908,285.77 119.12%
period
Amortization of deferred income for
Other income 119,520.00 64,770.00 84.53%
the current period
Increase in financial income during
Investment income 71,186.44 37,415.02 90.26%
the current period
Non-operating Government subsidy income from the
19,464.75 5,492.44 254.39%
income previous period
Non-operating Liquidated damages occurred in the
8,950.00 263,835.56 -96.61%
expenses previous period
Income tax expense 1,360,875.84 -85,032.71 -1700.41% Increase in profit for the period
January to March January to March Y-o-y Reasons of changes
Item
2021 2020 changes
Cash received from Increase in sales collection in this
the sale of goods period
118,847,638.92 86,584,529.58 37.26%
and the provision of
labor services
Cash paid for Increase in orders this period
purchasing goods
90,764,568.41 56,760,923.41 59.91%
and receiving labor
services
Cash paid to and for Increase in orders this period
18,034,045.23 8,467,600.61 112.98%
employees
Taxes paid 8,114,109.92 2,351,100.26 245.12% Increase in orders this period
Cash received from Margin interest increased in this
71,186.44 37,415.02 90.26%
investment income period
Net cash received Disposal of old equipment in the
from the disposal of previous period
fixed assets,
13,000.00 91,000.00 -85.71%
intangible assets and
other long-term
assets
Cash paid for the Purchase production equipment in
purchase and this period
construction of fixed
1,624,675.50 467,211.58 247.74%
assets, intangible
assets and other
long-term assets
Other cash paid Bank wealth management decreased
relating to investing - 25,000,000.00 -100.00% in this period
activities
Cash received from Increase in short-term loans
20,710,525.00 6,725,056.80 207.96%
loans
Other cash paid Increase acceptance margin in this
relating to financing 6,408,886.53 - period
activities
Influence on cash The impact of exchange rate
and cash equivalents fluctuations in the current period
-124,286.41 32,336.78 484.35%
due to fluctuation in
exchange rate
（三）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
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
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
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
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
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 ‘-”)
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
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
Revised content:
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 103,732,453.57 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
Total current assets 360,392,739.54 337,861,677.02
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 637,523,241.97 627,779,621.06
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
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 11,965,705.78 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 233,728,296.37 226,127,947.79
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
Total liabilities 295,716,827.37 291,530,883.77
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 -165,324,177.15 -170,881,854.46
Total owner’ s equity attributable to
341,806,414.60 336,248,737.29
parent company
Minority interests
Total owner’ s equity 341,806,414.60 336,248,737.29
Total liabilities and owner’ s equity 637,523,241.97 627,779,621.06
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
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 184,218,871.61 88,130,200.33
Including: Operating cost 160,692,426.33 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
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
6,908,038.40 -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 “-”) 6,918,553.15 -485,773.88
Less: Income tax expense 1,360,875.84 -85,032.71
V. Net profit (Net loss is listed with “-”) 5,557,677.31 -400,741.17
(i) Classify by business continuity
1.continuous operating net profit
5,557,677.31 -400,741.17
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
5,557,677.31 -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
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 5,557,677.31 -400,741.17
Total comprehensive income
5,557,677.31 -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
二、The original The Text of The Report for The First Quarter of 2021
（一）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)
Revised content:
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
5,557,677.31 -400,741.17 1,489.06%
the listed company (RMB)
Net profit attributable to shareholders of
5,476,703.89 -208,179.52 2,735.02%
the listed company after deducting
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) 637,523,241.97 627,779,621.06 1.55%
Net assets attributable to shareholder of
341,806,414.60 336,248,737.29 1.65%
listed company (RMB)
（二）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 changes Reasons of changes
Other receivables 2,060,681.11 4,466,949.96 -53.87% Decrease in current accounts
Inventory 103,742,880.06 70,502,773.52 47.62% Stocking in this period
The tax to be deducted is deducted for the
Other current assets 1,129,263.49 4,255,643.19 -73.46%
current period.
Long-term prepaid Cloud service fee amortization
19,361.35 77,445.31 -75.00%
expenses
Short-term bank loans were increased in
Short-term loans 20,921,296.00 12,527,808.00 67.00%
the current period.
The deposit received in advance has
Contract liabilities 171,293.92 287,140.66 -40.34%
decreased during the period.
Employee The prepaid wages and expenses are paid
3,106,406.38 5,737,366.59 -45.86%
compensation payable in the current period
Other payables 18,556,536.88 27,608,281.01 -32.79% Decrease in current accounts
Short-term loans increased in the current
Interest payable 63,086.88 26,335.66 139.55%
period.
Item January to March January to March Reasons of changes
Y-o-y changes
2021 2020
Operating income 190,936,203.57 87,800,584.55 117.47% Increase in orders this period
Operating cost 160,681,999.84 73,672,446.25 118.10% Increase in orders this period
Sales expense 9,604,962.16 3,448,537.85 178.52% Increase in orders this period
R&D expenses 1,990,208.94 908,285.77 119.12% Increased in R&D investment in this
period
Amortization of deferred income for the
Other income 119,520.00 64,770.00 84.53%
current period
Increase in financial income during the
Investment income 71,186.44 37,415.02 90.26%
current period
Government subsidy income from the
Non-operating income 19,464.75 5,492.44 254.39%
previous period
Non-operating Liquidated damages occurred in the
8,950.00 263,835.56 -96.61%
expenses previous period
Income tax expense 1,362,439.81 -85,032.71 -1702.25% Increase in profit for the period
Item January to March January to March Reasons of changes
Y-o-y changes
2021 2020
Cash received from Increase in sales collection in this period
the sale of goods and
118,847,638.92 86,584,529.58 37.26%
the provision of labor
services
Cash paid for Increase in orders this period
purchasing goods and
90,764,568.41 56,760,923.41 59.91%
receiving labor
services
Cash paid to and for Increase in orders this period
18,034,045.23 8,467,600.61 112.98%
employees
Taxes paid 8,114,109.92 2,351,100.26 245.12% Increase in orders this period
Cash received from Margin interest increased in this period
71,186.44 37,415.02 90.26%
investment income
Net cash received Disposal of old equipment in the previous
from the disposal of period
fixed assets, intangible 13,000.00 91,000.00 -85.71%
assets and other
long-term assets
Cash paid for the Purchase production equipment in this
purchase and period
construction of fixed
1,624,675.50 467,211.58 247.74%
assets, intangible
assets and other
long-term assets
Other cash paid Bank wealth management decreased in
relating to investing - 25,000,000.00 -100.00% this period
activities
Cash received from Increase in short-term loans
20,710,525.00 6,725,056.80 207.96%
loans
Other cash paid 6,408,886.53 - Increase acceptance margin in this period
relating to financing
activities
Influence on cash and The impact of exchange rate fluctuations
cash equivalents due in the current period
-124,286.41 32,336.78 484.35%
to fluctuation in
exchange rate
Revised content:
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 changes Reasons of changes
Other receivables 2,060,681.11 4,466,949.96 -53.87% Decrease in current accounts
Inventory 103,732,453.57 70,502,773.52 47.13% Stocking in this period
The tax to be deducted is deducted for the
Other current assets 1,129,263.49 4,255,643.19 -73.46%
current period.
Long-term prepaid Cloud service fee amortization
19,361.35 77,445.31 -75.00%
expenses
Short-term bank loans were increased in
Short-term loans 20,921,296.00 12,527,808.00 67.00%
the current period.
The deposit received in advance has
Contract liabilities 171,293.92 287,140.66 -40.34%
decreased during the period.
Employee The prepaid wages and expenses are paid
3,106,406.38 5,737,366.59 -45.86%
compensation payable in the current period
Other payables 18,556,536.88 27,608,281.01 -32.79% Decrease in current accounts
Short-term loans increased in the current
Interest payable 63,086.88 26,335.66 139.55%
period.
Item January to March January to March Reasons of changes
Y-o-y changes
2021 2020
Operating income 190,936,203.57 87,800,584.55 117.47% Increase in orders this period
Operating cost 160,692,426.33 73,672,446.25 118.12% Increase in orders this period
Sales expense 9,604,962.16 3,448,537.85 178.52% Increase in orders this period
Increased in R&D investment in this
R&D expenses 1,990,208.94 908,285.77 119.12%
period
Amortization of deferred income for the
Other income 119,520.00 64,770.00 84.53%
current period
Increase in financial income during the
Investment income 71,186.44 37,415.02 90.26%
current period
Government subsidy income from the
Non-operating income 19,464.75 5,492.44 254.39%
previous period
Non-operating Liquidated damages occurred in the
8,950.00 263,835.56 -96.61%
expenses previous period
Income tax expense 1,360,875.84 -85,032.71 -1700.41% Increase in profit for the period
Item January to March January to March Reasons of changes
Y-o-y changes
2021 2020
Cash received from Increase in sales collection in this period
the sale of goods and
118,847,638.92 86,584,529.58 37.26%
the provision of labor
services
Cash paid for Increase in orders this period
purchasing goods and
90,764,568.41 56,760,923.41 59.91%
receiving labor
services
Cash paid to and for Increase in orders this period
18,034,045.23 8,467,600.61 112.98%
employees
Taxes paid 8,114,109.92 2,351,100.26 245.12% Increase in orders this period
Cash received from Margin interest increased in this period
71,186.44 37,415.02 90.26%
investment income
Net cash received Disposal of old equipment in the previous
from the disposal of period
fixed assets, intangible 13,000.00 91,000.00 -85.71%
assets and other
long-term assets
Cash paid for the Purchase production equipment in this
purchase and period
construction of fixed
1,624,675.50 467,211.58 247.74%
assets, intangible
assets and other
long-term assets
Other cash paid Bank wealth management decreased in
relating to investing - 25,000,000.00 -100.00% this period
activities
Cash received from Increase in short-term loans
20,710,525.00 6,725,056.80 207.96%
loans
Other cash paid Increase acceptance margin in this period
relating to financing 6,408,886.53 -
activities
Influence on cash and The impact of exchange rate fluctuations
cash equivalents due in the current period
-124,286.41 32,336.78 484.35%
to fluctuation in
exchange rate
三、The original Semi-Annual Report 2021
（一）Section II. Company Profile and Main Financial Indexes
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Current period Same period of last year Changes over last year
Operating income(RMB) 391,633,808.55 300,703,421.38 30.24%
Net profit attributable to shareholders of
7,023,114.72 3,165,597.55 121.86%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 7,067,951.02 3,167,896.46 123.11%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-21,818,369.59 21,200,212.24 -202.92%
activities(RMB)
Basic earnings per share(RMB/Share) 0.0248 0.0112 121.43%
Diluted earnings per share(RMB/Share) 0.0248 0.0112 121.43%
Weighted average ROE 2.07% 0.96% 1.11%
Changes over period-end
Current period-end period-end of last year
of last year
Total assets(RMB) 673,387,235.69 627,779,621.06 7.26%
Net assets attributable to shareholder of
343,271,852.01 336,248,737.29 2.09%
listed company(RMB)
Revised content:
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Current period Same period of last year Changes over last year
Operating income(RMB) 391,633,808.55 300,703,421.38 30.24%
Net profit attributable to shareholders of
6,989,362.48 3,165,597.55 120.79%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 7,034,198.78 3,167,896.46 122.05%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-21,818,369.59 21,200,212.24 -202.92%
activities(RMB)
Basic earnings per share(RMB/Share) 0.0248 0.0112 121.43%
Diluted earnings per share(RMB/Share) 0.0248 0.0112 121.43%
Weighted average ROE 2.07% 0.96% 1.11%
Changes over period-end
Current period-end period-end of last year
of last year
Total assets(RMB) 673,347,527.18 627,779,621.06 7.26%
Net assets attributable to shareholder of
343,238,099.77 336,248,737.29 2.08%
listed company(RMB)
（二）Section III Management Discussion and Analysis
III. Main business analysis
See the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
In RMB
Same period of last
Current period y-o-y changes (+,-) Reasons
year
Video incomes
Operation income 391,633,808.55 300,703,421.38 30.24%
increased
Operation cost 334,484,096.74 263,959,652.63 26.72%
After-sales service fee
Sales expenses 14,094,617.96 9,100,079.39 54.88%
increased
Administrative
22,680,307.24 17,082,362.66 32.77% Repair fee increased
expenses
Financial cost 5,241,702.86 3,484,228.81 50.44% Exchange increased
Income tax expense 1,590,676.66 837,369.58 89.96% Profit growth
Increase new products
R&D investment 3,955,647.50 2,423,425.26 63.23%
in the Period
The inventory
Net cash flow arising increased in the Period
from operation -21,818,369.59 21,200,212.24 -202.92% due to the epidemic in
activities the first half year of
last year
Net cash flow arising
Investment for fixed
from investment -2,316,374.60 -1,338,379.56 -73.07%
assets increased
activities
Net cash flow arising
Bank loans increased
from financing 23,182,219.89 -34,838,186.71 166.54%
in the period
activities
The inventory and
Net increase of cash
-1,355,867.36 -14,832,093.81 -90.86% account receivable
and cash equivalent
increased
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operation Operation Gross profit se of gross
se of operation se of operation
income cost ratio profit ratio
income y-o-y cost y-o-y
y-o-y
According to industries
Display 198,422,034.91 182,038,564.14 8.26% 22.00% 19.00% 1.69%
Plastic
injection 106,953,726.74 96,354,708.77 9.91% 25.00% 22.00% 2.25%
hardware
According to products
Display 198,422,034.91 182,038,564.14 8.26% 22.00% 19.00% 1.69%
Plastic
injection 106,953,726.74 96,354,708.77 9.91% 25.00% 19.00% 2.25%
hardware
According to region
Hong Kong and
95,746,383.92 79,562,859.88 16.90% -8.97% -19.29% 10.62%
Taiwan
Central China 207,413,929.85 194,921,928.05 6.02% 67.15% 70.48% -1.84%
East China 87,594,449.15 80,998,643.40 7.53% 122.78% 120.08% 1.14%
South China 5,152,357.42 6,030,530.61 -17.04% -72.26% 195.58% -106.06%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
Y-o-y
Item 2021-6-30 2021-1-1 changes Causes
(+,-)
20,240,464.79 -98% Discounting of note
Note receivable 491,683.78 receivable increased in
the period
5,774,948.69 10,057,385.11 -43% Discounting of note
Receivable financing receivable increased in
the period
22,540,779.20 4,466,949.96 405% Current accounts
Other account receivable
increased
70,166,013.49 85% Inventory has
Inventory 129,917,660.51 significantly increased
from Hengfa
4,255,643.19 -83% The input tax to be
Other current assets
741,380.21 deducted declined
705% Contract renewal of SAP
Long-term deferred expenses
623,601.59 77,445.31
51,089,579.00 12,527,808.00 308% Loans of Hengfa
Short-term loans
increased
167% Account received in
Contractual liabilities
765,555.97 287,140.66 advance increased
3,886,717.29 5,737,366.59 -32% Last year’s year-end
Wages payable
bonus distributed
582% Loans increased
Interest payable
179,523.72 26,335.66
18,322,972.81 -99% Notes already endorsed
Other current liability
211,799.13 and outstanding declined
Y-o-y
Item Jan.- Jun. 2021 Jan.- Jun. 2020 changes Causes
(+,-)
Operation tax and surcharge 1,428,361.92 1,004,056.05 42% Additional tax increased
1502% Loan subsidies
Interest income
189,945.55 11,856.69
-99% Government subsidy
Other income
3,553.35 348,540.00
124% Wealth management
Investment income
149,767.58 66,780.40 income
512% Government subsidy
Non-operation revenue
276,599.04 45,200.06
2847% Penalty expenses
Non-operation expense
215,202.92 7,302.38
V. Assets and liability analysis
1. Major changes of assets composition
In RMB
End of the current period End of last year
Ratio
Ratio in Ratio in Notes of major changes
Amount Amount changes
total total
assets assets
Monetary fund 59,612,186.22 8.85% 60,968,053.58 9.71% -0.86%
Account
135,750,939.59 20.16% 128,063,911.79 20.40% -0.24%
receivable
Inventory 129,917,660.51 19.29% 70,166,013.49 11.18% 8.11% Inventory from Hengfa increased
Investment real
46,360,497.13 6.88% 47,224,662.27 7.52% -0.64%
estate
Fixed assets 191,477,026.08 28.43% 193,605,444.53 30.84% -2.41%
Construction in
740,000.00 0.11% 740,000.00 0.12% -0.01%
process
Short-term
51,089,579.00 7.59% 12,527,808.00 2.00% 5.59% Loans increased in the period
loans
Contractual
765,555.97 0.11% 287,140.66 0.05% 0.06%
liabilities
Long-term
61,000,000.00 9.06% 61,000,000.00 9.72% -0.66%
loans
Revised content:
III. Main business analysis
See the “I. Main businesses of the company in the reporting period”
Change of main financial data on a y-o-y basis
In RMB
Same period of last
Current period y-o-y changes (+,-) Reasons
year
Video incomes
Operation income 391,633,808.55 300,703,421.38 30.24%
increased
Operation cost 334,523,805.25 263,959,652.63 26.73%
After-sales service fee
Sales expenses 14,094,617.96 9,100,079.39 54.88%
increased
Administrative
22,680,307.24 17,082,362.66 32.77% Repair fee increased
expenses
Financial cost 5,241,702.86 3,484,228.81 50.44% Exchange increased
Income tax expense 1,584,720.39 837,369.58 89.25% Profit growth
Increase new products
R&D investment 3,955,647.50 2,423,425.26 63.23%
in the Period
Net cash flow arising -21,818,369.59 21,200,212.24 -202.92% The inventory
from operation increased in the Period
activities due to the epidemic in
the first half year of
last year
Net cash flow arising
Investment for fixed
from investment -2,316,374.60 -1,338,379.56 -73.07%
assets increased
activities
Net cash flow arising
Bank loans increased
from financing 23,182,219.89 -34,838,186.71 166.54%
in the period
activities
The inventory and
Net increase of cash
-1,355,867.36 -14,832,093.81 -90.86% account receivable
and cash equivalent
increased
The industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrea
Increase/decrea Increase/decrea
Operation Operation Gross profit se of gross
se of operation se of operation
income cost ratio profit ratio
income y-o-y cost y-o-y
y-o-y
According to industries
Display 198,422,034.91 181,998,855.63 8.28% 22.00% 19.00% 1.69%
Plastic
injection 106,953,726.74 96,354,708.77 9.91% 25.00% 22.00% 2.25%
hardware
According to products
Display 198,422,034.91 181,998,855.63 8.28% 22.00% 19.00% 1.69%
Plastic
injection 106,953,726.74 96,354,708.77 9.91% 25.00% 19.00% 2.25%
hardware
According to region
Hong Kong and
95,569,502.38 79,562,859.88 16.75% -8.97% -19.29% 10.62%
Taiwan
Central China 203,317,499.60 190,785,789.29 6.16% 67.15% 70.48% -1.84%
East China 87,594,449.15 80,998,643.40 7.53% 122.78% 120.08% 1.14%
South China 5,152,357.42 6,030,530.61 -17.04% -72.26% 195.58% -106.06%
Reasons for y-o-y relevant data with over 30% changes
√Applicable □Not applicable
Y-o-y
Item 2021-6-30 2021-1-1 changes Causes
(+,-)
20,240,464.79 -98% Discounting of note
Note receivable 491,683.78 receivable increased in
the period
5,774,948.69 10,057,385.11 -43% Discounting of note
Receivable financing receivable increased in
the period
22,540,779.20 4,466,949.96 405% Current accounts
Other account receivable
increased
70,166,013.49 85% Inventory has
Inventory 129,877,952.00 significantly increased
from Hengfa
4,255,643.19 -83% The input tax to be
Other current assets
741,380.21 deducted declined
705% Contract renewal of SAP
Long-term deferred expenses
623,601.59 77,445.31
51,089,579.00 12,527,808.00 308% Loans of Hengfa
Short-term loans
increased
167% Account received in
Contractual liabilities
765,555.97 287,140.66 advance increased
3,886,717.29 5,737,366.59 -32% Last year’s year-end
Wages payable
bonus distributed
582% Loans increased
Interest payable
179,523.72 26,335.66
18,322,972.81 -99% Notes already endorsed
Other current liability
211,799.13 and outstanding declined
Y-o-y
Item Jan.- Jun. 2021 Jan.- Jun. 2020 changes Causes
(+,-)
Operation tax and surcharge 1,428,361.92 1,004,056.05 42% Additional tax increased
1502% Loan subsidies
Interest income
189,945.55 11,856.69
-99% Government subsidy
Other income
3,553.35 348,540.00
124% Wealth management
Investment income
149,767.58 66,780.40 income
512% Government subsidy
Non-operation revenue
276,599.04 45,200.06
Non-operation expense 2847% Penalty expenses
215,202.92 7,302.38
V. Assets and liability analysis
1. Major changes of assets composition
In RMB
End of the current period End of last year
Ratio in Ratio in Ratio
Notes of major changes
Amount total Amount total changes
assets assets
Monetary fund 59,612,186.22 8.85% 60,968,053.58 9.71% -0.86%
Account
135,750,939.59 20.16% 128,063,911.79 20.40% -0.24%
receivable
Inventory 129,877,952.00 19.29% 70,166,013.49 11.18% 8.11% Inventory from Hengfa increased
Investment real
46,360,497.13 6.88% 47,224,662.27 7.52% -0.64%
estate
Fixed assets 191,477,026.08 28.43% 193,605,444.53 30.84% -2.41%
Construction in
740,000.00 0.11% 740,000.00 0.12% -0.01%
process
Short-term
51,089,579.00 7.59% 12,527,808.00 2.00% 5.59% Loans increased in the period
loans
Contractual
765,555.97 0.11% 287,140.66 0.05% 0.06%
liabilities
Long-term
61,000,000.00 9.06% 61,000,000.00 9.72% -0.66%
loans
（三）Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD.
In RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 59,612,186.22 60,968,053.58
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 491,683.78 20,240,464.79
Account receivable 135,750,939.59 128,063,911.79
Receivable financing 5,774,948.69 10,057,385.11
Accounts paid in advance 31,961,398.64 39,643,255.11
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 22,540,779.20 4,466,949.96
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 129,917,660.51 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 386,790,976.84 337,861,677.02
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 46,360,497.13 47,224,662.27
Fixed assets 191,477,026.08 193,605,444.53
Construction in progress 740,000.00 740,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 39,945,399.92 40,820,657.80
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 623,601.59 77,445.31
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 286,596,258.85 289,917,944.04
Total assets 673,387,235.69 627,779,621.06
Current liabilities:
Short-term loans 51,089,579.00 12,527,808.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 42,983,519.37 37,416,381.20
Account payable 116,056,638.57 98,318,239.88
Accounts received in advance
Contractual liability 765,555.97 287,140.66
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 3,886,717.29 5,737,366.59
Taxes payable 12,939,066.90 14,204,642.62
Other account payable 37,074,456.45 27,608,281.01
Including: Interest payable 179,523.72 26,335.66
Dividend payable
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 12,000,000.00
Other current liabilities 211,799.13 18,322,972.81
Total current liabilities 265,007,332.68 226,422,832.77
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 330,115,383.68 291,530,883.77
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 -163,858,739.74 -170,881,854.46
Total owner’ s equity attributable to parent company 343,271,852.01 336,248,737.29
Minority interests
Total owner’ s equity 343,271,852.01 336,248,737.29
Total liabilities and owner’ s equity 673,387,235.69 627,779,621.06
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Chuai Guoxu
3. Consolidated Profit Statement
In RMB
Item 2021 semi-annual 2020 semi-annual
I. Total operating income 391,633,808.55 300,703,421.38
Including: Operating income 391,633,808.55 300,703,421.38
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 381,884,734.22 297,053,804.80
Including: Operating cost 334,484,096.74 263,959,652.63
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 1,428,361.92 1,004,056.05
Sales expense 14,094,617.96 9,100,079.39
Administrative expense 22,680,307.24 17,082,362.66
R&D expense 3,955,647.50 2,423,425.26
Financial expense 5,241,702.86 3,484,228.81
Including: Interest expenses 3,774,381.48 4,018,202.27
Interest income 189,945.55 11,856.69
Add: Other income 3,553.35 348,540.00
Investment income (Loss is listed with “-”) 149,767.58 66,780.40
Including: Investment income on affiliated company and
joint venture
The termination of income recognition for financial
assets measured by amortized cost
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 “-”) -1,350,000.00
Income from assets disposal (Loss is listed with “-”) -99,867.53
III. Operating profit (Loss is listed with “-”) 8,552,395.26 3,965,069.45
Add: Non-operating income 276,599.04 45,200.06
Less: Non-operating expense 215,202.92 7,302.38
IV. Total profit (Loss is listed with “-”) 8,613,791.38 4,002,967.13
Less: Income tax expense 1,590,676.66 837,369.58
V. Net profit (Net loss is listed with “-”) 7,023,114.72 3,165,597.55
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 7,023,114.72 3,165,597.55
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 7,023,114.72 3,165,597.55
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
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 7,023,114.72 3,165,597.55
Total comprehensive income attributable to owners of parent
7,023,114.72 3,165,597.55
Company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0248 0.0112
(ii) Diluted earnings per share 0.0248 0.0112
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Other
equity
instrument Othe
Less Tota
r Prov
Per : Reas Min l
Item Sha Capi com Surp ision Reta
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
283
146, 77,3 -170 336, 336,
I. The ending ,16
577, 91,5 ,881, 248, 248,
balance of the 1,2
771. 93.2 854. 737. 737.
previous year 27.
50 5 46 29 29
00
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
283
II. The 146, 77,3 -170 336, 336,
,16
beginning 577, 91,5 ,881, 248, 248,
1,2
balance of the 771. 93.2 854. 737. 737.
27.
current year 50 5 46 29 29
00
III. Increase/
Decrease in
7,02 7,02 7,02
the period
3,11 3,11 3,11
(Decrease is
4.72 4.72 4.72
listed with
“-”)
(i) Total 7,02 7,02 7,02
comprehensiv 3,11 3,11 3,11
e income 4.72 4.72 4.72
(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
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
2. Usage in
the report
period
(vi) Others
283
146, 77,3 -163 343, 343,
IV. Balance at ,16
577, 91,5 ,858, 271, 271,
the end of the 1,2
771. 93.2 739. 852. 852.
period 27.
50 5 74 01 01
00
Revised content:
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD.
In RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 59,612,186.22 60,968,053.58
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 491,683.78 20,240,464.79
Account receivable 135,750,939.59 128,063,911.79
Receivable financing 5,774,948.69 10,057,385.11
Accounts paid in advance 31,961,398.64 39,643,255.11
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance receivable
Other account receivable 22,540,779.20 4,466,949.96
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventories 129,877,952.00 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 386,751,268.33 337,861,677.02
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 46,360,497.13 47,224,662.27
Fixed assets 191,477,026.08 193,605,444.53
Construction in progress 740,000.00 740,000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 39,945,399.92 40,820,657.80
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 623,601.59 77,445.31
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 286,596,258.85 289,917,944.04
Total assets 673,347,527.18 627,779,621.06
Current liabilities:
Short-term loans 51,089,579.00 12,527,808.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 42,983,519.37 37,416,381.20
Account payable 116,056,638.57 98,318,239.88
Accounts received in advance
Contractual liability 765,555.97 287,140.66
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 3,886,717.29 5,737,366.59
Taxes payable 12,933,110.63 14,204,642.62
Other account payable 37,074,456.45 27,608,281.01
Including: Interest payable 179,523.72 26,335.66
Dividend payable
Commission charge and commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one year 12,000,000.00
Other current liabilities 211,799.13 18,322,972.81
Total current liabilities 265,001,376.41 226,422,832.77
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 330,109,427.41 291,530,883.77
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 -163,892,491.98 -170,881,854.46
Total owner’ s equity attributable to parent company 343,238,099.77 336,248,737.29
Minority interests
Total owner’ s equity 343,238,099.77 336,248,737.29
Total liabilities and owner’ s equity 673,347,527.18 627,779,621.06
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Chuai Guoxu
3. Consolidated Profit Statement
In RMB
Item 2021 semi-annual 2020 semi-annual
I. Total operating income 391,633,808.55 300,703,421.38
Including: Operating income 391,633,808.55 300,703,421.38
Interest income
Insurance gained
Commission charge and commission income
II. Total operating cost 381,924,442.73 297,053,804.80
Including: Operating cost 334,523,805.25 263,959,652.63
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 1,428,361.92 1,004,056.05
Sales expense 14,094,617.96 9,100,079.39
Administrative expense 22,680,307.24 17,082,362.66
R&D expense 3,955,647.50 2,423,425.26
Financial expense 5,241,702.86 3,484,228.81
Including: Interest expenses 3,774,381.48 4,018,202.27
Interest income 189,945.55 11,856.69
Add: Other income 3,553.35 348,540.00
Investment income (Loss is listed with “-”) 149,767.58 66,780.40
Including: Investment income on affiliated company and
joint venture
The termination of income recognition for financial
assets measured by amortized cost
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 “-”) -1,350,000.00
Income from assets disposal (Loss is listed with “-”) -99,867.53
III. Operating profit (Loss is listed with “-”) 8,512,686.75 3,965,069.45
Add: Non-operating income 276,599.04 45,200.06
Less: Non-operating expense 215,202.92 7,302.38
IV. Total profit (Loss is listed with “-”) 8,574,082.87 4,002,967.13
Less: Income tax expense 1,584,720.39 837,369.58
V. Net profit (Net loss is listed with “-”) 6,989,362.48 3,165,597.55
(i) Classify by business continuity
1.continuous operating net profit (net loss listed with ‘-”) 6,989,362.48 3,165,597.55
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s of parent company 6,989,362.48 3,165,597.55
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
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 6,989,362.48 3,165,597.55
Total comprehensive income attributable to owners of parent
6,989,362.48 3,165,597.55
Company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0248 0.0112
(ii) Diluted earnings per share 0.0248 0.0112
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
Semi-annual of 2021
Owners’ equity attributable to the parent Company
Other
Othe
equity Less Tota
r Prov
instrument : Reas Min l
Item Sha Capi com Surp ision Reta
Per Inve onab ority own
re Pre tal preh lus of ined Othe Subt
pet ntor le inter ers’
cap fer reser ensi reser gene profi r otal
ual Ot y reser ests equit
ital red ve ve ve ral t
cap her shar ve y
sto inco risk
ital es
ck me
sec
urit
ies
283
146, 77,3 -170 336, 336,
I. The ending ,16
577, 91,5 ,881, 248, 248,
balance of the 1,2
771. 93.2 854. 737. 737.
previous year 27.
50 5 46 29 29
00
Add: Changes
of accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
283
II. The 146, 77,3 -170 336, 336,
,16
beginning 577, 91,5 ,881, 248, 248,
1,2
balance of the 771. 93.2 854. 737. 737.
27.
current year 50 5 46 29 29
00
III. Increase/
Decrease in
6,98 6,98 6,98
the period
9,36 9,36 9,36
(Decrease is
2.48 2.48 2.48
listed with
“-”)
(i) Total 6,98 6,98 6,98
comprehensiv 9,36 9,36 9,36
e income 2.48 2.48 2.48
(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
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
2. Usage in
the report
period
(vi) Others
283
146, 77,3 -163 343, 343,
IV. Balance at ,16
577, 91,5 ,892, 238, 238,
the end of the 1,2
771. 93.2 491. 099. 099.
period 27.
50 5 98 77 77
00
（四）Section X. Financial Report
V. Important accounting policy and estimation
15. Inventory
15.1 Categories of inventory
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.
15.2 Accounting method for inventory delivery
When inventories are issued, the actual cost is determined by the first in first out method.
15.3 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.
15.4 Inventory system
Inventory system of the Company is perpetual inventory system
15.5 Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
Revised content:
15. Inventory
15.1 Categories of inventory
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.
15.2 Accounting method for inventory delivery
When inventories are issued, the actual cost is determined by monthly weighted average method.
15.3 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.
15.4 Inventory system
Inventory system of the Company is perpetual inventory system
15.5 Amortization method for the low-value consumables and wrap page
Low-value consumables and packages are amortized by one-point method
（五）Section X. Financial Report
VII. Notes to main items in consolidated financial statement
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industry
No
(1) Category
In RMB
Ending 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 67,070,060.38 2,191,320.92 64,878,739.46 39,735,101.27 1,691,320.92 38,043,780.35
Inventory
55,795,276.78 2,523,369.82 53,271,906.96 27,562,913.38 1,673,369.82 25,889,543.56
goods
Homemade
semi-finished 11,750,725.54 29,363.73 11,721,361.81 6,213,029.56 29,363.73 6,183,665.83
products
Low priced and
easily worn 156,274.66 110,622.38 45,652.28 159,646.13 110,622.38 49,023.75
articles
Total 134,772,337.36 4,854,676.85 129,917,660.51 73,670,690.34 3,504,676.85 70,166,013.49
40. Taxes payable
In RMB
Item Ending balance Opening balance
VAT 4,823,733.87 2,980,992.11
Corporate income tax 5,551,836.24 6,558,810.68
Individual income tax 4,493.98 25,195.14
Urban maintenance and construction tax 532,508.80 1,902,436.52
Property tax 520,220.76 318,618.51
Land use tax 297,696.51 33,280.48
Educational surtax 229,248.99 816,098.15
Local educational surtax 122,702.85 418,611.03
Dike fee 1,665.00 1,665.00
Stamp tax 33,429.90 28,895.00
Disposal fund of waste electrical
821,530.00 1,120,040.00
products
Total 12,939,066.90 14,204,642.62
60. Retained profit
In RMB
Item Current period Last period
Retained profit at the end of the previous period
-170,881,854.46 -177,712,041.86
before adjustment
Retained profit at period-begin after adjustment -170,881,854.46 -177,712,041.86
Add: net profit attributable to owners of the
7,023,114.72 3,165,597.55
parent company
Retained profit at period-end -163,858,739.74 -174,546,444.31
61. Operating revenue and cost
In RMB
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 323,468,602.68 282,596,348.19 268,465,953.89 249,723,766.92
Other business 68,165,205.87 47,447,861.39 32,237,467.49 14,235,885.71
Total 391,633,808.55 330,044,209.58 300,703,421.38 263,959,652.63
76. Income tax expense
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 1,590,676.66 982,790.94
Deferred income tax expense -145,421.36
Total 1,590,676.66 837,369.58
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 8,613,791.38
Income tax based on statutory/applicable rate 2,490,947.85
Impact by different tax rate applied by subsidies 230,760.37
Impact of deductible loss of un-recognized deferred income
-145,421.36
tax assets in the prior period of use
Income tax expense 1,590,676.66
Revised content:
9. Inventories
Whether companies need to comply with the disclosure requirements of the real estate industry
No
(1) Category
In RMB
Ending 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 67,070,060.38 2,191,320.92 64,878,739.46 39,735,101.27 1,691,320.92 38,043,780.35
Inventory
55,755,568.27 2,523,369.82 53,232,198.45 27,562,913.38 1,673,369.82 25,889,543.56
goods
Homemade
semi-finished 11,750,725.54 29,363.73 11,721,361.81 6,213,029.56 29,363.73 6,183,665.83
products
Low priced and
easily worn 156,274.66 110,622.38 45,652.28 159,646.13 110,622.38 49,023.75
articles
Total 134,772,337.36 4,854,676.85 129,877,952.00 73,670,690.34 3,504,676.85 70,166,013.49
40. Taxes payable
In RMB
Item Ending balance Opening balance
VAT 4,823,733.87 2,980,992.11
Corporate income tax 5,545,879.97 6,558,810.68
Individual income tax 4,493.98 25,195.14
Urban maintenance and construction tax 532,508.80 1,902,436.52
Property tax 520,220.76 318,618.51
Land use tax 297,696.51 33,280.48
Educational surtax 229,248.99 816,098.15
Local educational surtax 122,702.85 418,611.03
Dike fee 1,665.00 1,665.00
Stamp tax 33,429.90 28,895.00
Disposal fund of waste electrical
821,530.00 1,120,040.00
products
Total 12,933,110.63 14,204,642.62
60. Retained profit
In RMB
Item Current period Last period
Retained profit at the end of the previous period
-170,881,854.46 -177,712,041.86
before adjustment
Retained profit at period-begin after adjustment -170,881,854.46 -177,712,041.86
Add: net profit attributable to owners of the
6,989,362.48 3,165,597.55
parent company
Retained profit at period-end -163,892,491.98 -174,546,444.31
61. Operating revenue and cost
In RMB
Current Period Last Period
Item
Revenue Cost Revenue Cost
Main business 323,468,602.68 287,075,943.86 268,465,953.89 249,723,766.92
Other business 68,165,205.87 47,447,861.39 32,237,467.49 14,235,885.71
Total 391,633,808.55 334,523,805.25 300,703,421.38 263,959,652.63
76. Income tax expense
(1) Statement of income tax expense
In RMB
Item Current Period Last Period
Current income tax expense 1,584,720.39 982,790.94
Deferred income tax expense -145,421.36
Total 1,584,720.39 837,369.58
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item Current Period
Total profit 8,574,082.87
Income tax based on statutory/applicable rate 2,490,947.85
Impact by different tax rate applied by subsidies 230,760.37
Impact of deductible loss of un-recognized deferred income
-145,421.36
tax assets in the prior period of use
Income tax expense 1,584,720.39
四、The original Summary of Semi-Annual Report 2021
（一）II. Basic information of the company
2. Main financial data and index
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Increase/decrease in this
Current Period Same period of last year
report y-o-y
Operating revenue (RMB) 391,633,808.55 300,703,421.38 30.24%
Net profit attributable to shareholders of
the listed Company (RMB) 7,023,114.72 3,165,597.55 121.86%
Net profit attributable to shareholders of
the listed Company after deducting 7,067,951.02 3,167,896.46 123.11%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
activities (RMB) -21,818,369.59 21,200,212.24 -202.92%
Basic earnings per share (RMB/Share)
(note 1) 0.0248 0.0112 121.43%
Diluted earnings per share (RMB/Share) 0.0248 0.0112 121.43%
Weighted average ROE 2.07% 0.96% 1.11%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end (+,-)
Total assets (RMB) 673,387,235.69 627,779,621.06 7.26%
Net assets attributable to shareholder of
listed Company (RMB) 343,271,852.01 336,248,737.29 2.09%
Revised content:
2. Main financial data and index
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes √ No
Increase/decrease in this
Current Period Same period of last year
report y-o-y
Operating revenue (RMB) 391,633,808.55 300,703,421.38 30.24%
Net profit attributable to shareholders of
6,989,362.48 3,165,597.55 120.79%
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting 7,034,198.78 3,167,896.46 122.05%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
-21,818,369.59 21,200,212.24 -202.92%
activities (RMB)
Basic earnings per share (RMB/Share)
0.0248 0.0112 121.43%
(note 1)
Diluted earnings per share (RMB/Share) 0.0248 0.0112 121.43%
Weighted average ROE 2.07% 0.96% 1.11%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end (+,-)
Total assets (RMB) 673,347,527.18 627,779,621.06 7.26%
Net assets attributable to shareholder of
listed Company (RMB) 343,238,099.77 336,248,737.29 2.08%
五、The original The Third Quarter Report 2021
（一）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
Current period Increase/decrease in Year-begin to Increase/decrease from
the period compared period-end year-begin to
with the same period period-end compared
of the previous year with the same period
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 1,141,094.84 -32.30% 8,164,209.56 68.30%
listed company (Yuan)
Net profit attributable
to shareholders of the
listed company after
deducting 572,226.97 -48.38% 7,384,177.99 72.67%
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) 670,460,370.67 627,779,621.06 6.80%
Net assets attributable
to shareholder of listed 345,436,154.94 336,248,737.29 2.73%
company (Yuan)
Revised content:
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 year-begin to
Current period the period compared
period-end period-end compared
with the same period
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)
Net profit attributable
to shareholders of the
listed company after
deducting 554,781.27 -49.95% 7,332,980.06 72.67%
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)
（二）(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
Non-operating income 394,744.60 681,877.61 -42% Government subsidy received
at the period-end was less than
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 99,966,463.28 61,964,943.06 61%
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
Revised content:
(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
September 30, 2021 September 30, 202 Changes Reason
Item
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
（三）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:
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 99,966,463.28 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 386,493,179.81 337,861,677.02
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
Total non-current asset 283,967,190.86 289,917,944.04
Total assets 670,460,370.67 627,779,621.06
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 12,214,983.25 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 259,916,164.73 226,422,832.77
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 325,024,215.73 291,530,883.77
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 -161,694,436.81 -170,881,854.46
Total owner’ s equity attributable to
345,436,154.94 336,248,737.29
parent company
Minority interests
Total owner’ s equity 345,436,154.94 336,248,737.29
Total liabilities and owner’ s equity 670,460,370.67 627,779,621.06
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 592,220,186.01 496,032,602.64
Including: Operating cost 525,633,691.80 436,770,935.85
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
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
10,567,714.98 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 “-”) 10,742,572.02 6,184,616.23
Less: Income tax expense 2,578,362.46 1,333,529.74
V. Net profit (Net loss is listed with
8,164,209.56 4,851,086.49
“-”)
(i) Classify by business continuity
1.continuous operating net profit
8,164,209.56 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
8,164,209.56 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
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 8,164,209.56 4,851,086.49
Total comprehensive income
attributable to owners of parent 8,164,209.56 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
Revised content:
(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:
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
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:
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
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
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
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 8,113,011.63 4,851,086.49
attributable to owners of parent
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
