1、Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 1 Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 April 2021 Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 2 Section I.Important Notes Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa
2、 Co.,Ltd(hereinafter referred to as the Company)and its directors,supervisors and senior executives should guarantee the reality,accuracy and completion of the quarterly report,there are no any fictitious statements,misleading statements or important omissions carried in this report,and shall take l
3、egal responsibilities,individual and/or joint.All Directors are attended the Board Meeting for Quarterly Report deliberation.Li Zhongqiu,person in charge of the Company,Yang Bin,person in charger of accounting works and Wu Ai jie,person in charger of accounting organ(accounting officer)hereby confir
4、m that the Financial Statement of this Quarterly Report is authentic,accurate and complete.Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 3 Section II.Basic situation of the Company I.Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on pr
5、evious accounting data Yes No Current period At the same period of last year Changes of this period over same period of last year Operating income(RMB)190,936,203.57 87,800,584.55 117.47%Net profit attributable to shareholders of the listed company(RMB)5,566,539.83-400,741.17 1,489.06%Net profit att
6、ributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB)5,485,566.41-208,179.52 2,735.02%Net cash flow arising from operating activities(RMB)-5,125,776.38 7,931,308.59-164.63%Basic earnings per share(RMB/Share)0.0197-0.0014 1,507.14%Diluted earnings per sha
7、re(RMB/Share)0.0197-0.0014 1,507.14%Weighted average ROE 1.64%-0.12%1.76%At the end of the reporting period At the end of last year Changes of this period-end 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 listed compan
8、y(RMB)341,815,277.12 336,248,737.29 1.65%Items and amount of non-recurring gains and losses Applicable Not applicable In RMB Item Amount from year-begin to period-end Note Gains/losses from the disposal of non-current asset(including the write-off that accrued for impairment of assets)-6,163.53 Gove
9、rnmental subsidy reckoned into current gains/losses(not including the subsidy enjoyed in quota or ration according to national standards,which are closely relevant to enterprise s business)6,000.00 Gain or loss on the investment or management of assets 71,186.44 Shenzhen Zhongheng Huafa Co.,Ltd.Firs
10、t Quarterly Report 2021 4 Other non-operating income and expenditure except for the aforementioned items 10,677.58 Less:impact on income tax 727.07 Total 80,973.42-Concerning the extraordinary profit(gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their S
11、ecurities to the Public-Extraordinary Profit/loss,and the items defined as recurring profit(gain)/loss according to the lists of extraordinary profit(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Extraordinary Profit/loss,explain
12、reasons Applicable Not applicable In reporting period,the Company has no particular about items defined as recurring profit(gain)/loss according to the lists of extraordinary profit(gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Ex
13、traordinary Profit/loss II.Total number of shareholders at the end of this report period and top ten shareholders 1.Total number of common shareholders at the end of this report period and top ten common shareholders In shares Total common stock shareholders in reporting period-end 22,456 Total pref
14、erence shareholders with voting rights recovered at end of reporting period(if applicable)0 Top ten shareholders Shareholder s name Nature of shareholder Proportion of shares held Amount of shares held Amount of restricted shares held Number of share pledged/frozen State of share Amount Wuhan Zhongh
15、eng Group Domestic non-state-owned legal person 42.13%119,289,894 0 Pledged 116,100,000 Frozen 119,289,894 SEG(HONG KONG)CO.,LTD.Overseas legal person 5.85%16,569,560 0 Pledged 0 Frozen 0 GOOD HOPE CORNER INVESTMENTS LTD.Overseas legal person 2.50%7,072,000 0 Pledged 0 Frozen 0 Changjiang Securities
16、 Brokerage(Hongkong)Co.,Ltd.Overseas legal person 1.89%5,355,249 0 Pledged 0 Frozen 0 Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 5 Guoyuan Securities Brokerage(Hong Kong)Limited Overseas legal person 1.37%3,870,117 0 Pledged 0 Frozen 0 Li Zhongqiu Overseas nature person 1.00%2,830,
17、000 0 Pledged 0 Frozen 0 China Merchants Securities Hong Kong Co.,Ltd.State-owned legal person 0.79%2,230,608 0 Pledged 0 Frozen 0 LI SHERYN ZHAN MING Overseas nature person 0.51%1,446,100 0 Pledged 0 Frozen 0 Shengyin Investment Co.,Ltd.Overseas legal person 0.50%1,408,600 0 Pledged 0 Frozen 0#Xu X
18、infen Domestic nature person 0.45%1,288,000 0 Pledged 0 Frozen 0 Top ten shareholders with unrestricted shares held Shareholder s name Amount of unrestricted shares held Type of shares Type Amount Wuhan Zhongheng Group 119,289,894 RMB common share 119,289,894 SEG(HONG KONG)CO.,LTD.16,569,560 Domesti
19、cally listed foreign shares 16,569,560 GOOD HOPE CORNER INVESTMENTS LTD.7,072,000 Domestically listed foreign shares 7,072,000 Changjiang Securities Brokerage(Hongkong)Co.,Ltd.5,355,249 Domestically listed foreign shares 5,355,249 Guoyuan Securities Brokerage(Hong Kong)Limited 3,870,117 Domestically
20、 listed foreign shares 3,870,117 Li Zhongqiu 2,830,000 Domestically listed foreign shares 2,830,000 China Merchants Securities Hong Kong Co.,Ltd.2,230,608 Domestically listed foreign shares 2,230,608 Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 6 LI SHERYN ZHAN MING 1,446,100 Domesti
21、cally listed foreign shares 1,446,100 Shengyin Investment Co.,Ltd.1,408,600 Domestically listed foreign shares 1,408,600#Xu Xinfen 1,288,000 RMB common share 1,288,000 Explanation on associated relationship among the aforesaid shareholders Among the top ten shareholders,Li Zhongqiu is the actual con
22、troller of Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.and is a party acting in concert.Shengyin Investment Co.,Ltd.is an overseas wholly-owned subsidiary of Wuhan Zhongheng group.The Company neither knew whether there exists associated relationship among the other shareholders,n
23、or they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.Explanation on top 10 common shareholders involving margin business(if applicable)N/A Whether top ten common shareholders or top ten common share
24、holders with un-restrict shares held have a buy-back agreement dealing in reporting period Yes No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.2.Total shareholders with preferred stoc
25、k held and shares held by top ten shareholders with preferred stock held Applicable Not applicable Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 7 Section III.Significant Events I.Particulars about material changes in items of main accounting statement and financial index and explanat
26、ions 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 Other current assets 1,129,263.49 4,255,643
27、.19-73.46%The tax to be deducted is deducted for the current period.Long-term prepaid expenses 19,361.35 77,445.31-75.00%Cloud service fee amortization Short-term loans 20,921,296.00 12,527,808.00 67.00%Short-term bank loans were increased in the current period.Contract liabilities 171,293.92 287,14
28、0.66-40.34%The deposit received in advance has decreased during the period.Employee compensation payable 3,106,406.38 5,737,366.59-45.86%The prepaid wages and expenses are paid in the current period Other payables 18,556,536.88 27,608,281.01-32.79%Decrease in current accounts Interest payable 63,086
29、.88 26,335.66 139.55%Short-term loans increased in the current period.Item January to March 2021 January to March 2020 Y-o-y changes Reasons of 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 o
30、rders 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 Other income 119,520.00 64,770.00 84.53%Amortization of deferred income for the current period Investment income 90.2
31、6%Increase in financial income during Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 8 71,186.44 37,415.02 the current period Non-operating income 19,464.75 5,492.44 254.39%Government subsidy income from the previous period Non-operating expenses 8,950.00 263,835.56-96.61%Liquidated da
32、mages occurred in the previous period Income tax expense 1,362,439.81-85,032.71-1702.25%Increase in profit for the period Item January to March 2021 January to March 2020 Y-o-y changes Reasons of changes Cash received from the sale of goods and the provision of labor services 118,847,638.92 86,584,5
33、29.58 37.26%Increase in sales collection in this period Cash paid for purchasing goods and receiving labor services 90,764,568.41 56,760,923.41 59.91%Increase in orders this period Cash paid to and for employees 18,034,045.23 8,467,600.61 112.98%Increase in orders this period Taxes paid 8,114,109.92
34、 2,351,100.26 245.12%Increase in orders this period Cash received from investment income 71,186.44 37,415.02 90.26%Margin interest increased in this period Net cash received from the disposal of fixed assets,intangible assets and other long-term assets 13,000.00 91,000.00-85.71%Disposal of old equip
35、ment in the previous period Cash paid for the purchase and construction of fixed assets,intangible assets and other long-term assets 1,624,675.50 467,211.58 247.74%Purchase production equipment in this period Other cash paid relating to investing activities-25,000,000.00-100.00%Bank wealth managemen
36、t decreased in this period Cash received from loans 20,710,525.00 6,725,056.80 207.96%Increase in short-term loans Other cash paid relating to financing 6,408,886.53-Increase acceptance margin in this period Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Report 2021 9 activities Influence on cash
37、and cash equivalents due to fluctuation in exchange rate-124,286.41 32,336.78 484.35%The impact of exchange rate fluctuations in the current period II.Analysis and explanation of significant events and their influence and solutions Applicable Not applicable(i)The Company signed Asset Exchange Contra
38、ct with Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd(hereinafter referred to as Wuhan Zhongheng Group)on 29 April 2009(details were referred to in the announcement dated 30 April 2009),and pursuant to the contract,since part of the assets of the Company(namely two parcel of indust
39、rial lands located at Huafa road,Gongming town,Guangming new district,Shenzhen(the property certificate No.were SFDZ No.7226760 and SFDZ No.7226763,No.of parcels were A627-005 andA627-007,and the aggregate area was 48,200 sq.m)were the lands listed in the first batch of plan for 2010 Shenzhen urbani
40、zation unit planning preparation plan.For promotion of such urbanization project and joint cooperation,the Company has not completed the transfer procedures in respect of the aforesaid land.The Company convoked the first extraordinary meeting of the Board in 2015 on February 16,2015 and the first ex
41、traordinary general meeting of the Board in 2015 on March 4,2015,which considered and approved the“Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area at Gongming street,Guangming new district,Shenzhen”,specified that the Company and Wuhan Zhongheng Gro
42、up shall obtain the corresponding compensatory consideration for removal from the respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land development,it is estimated that the compensatory consideration obtained by the Company accounts
43、for 50.5%of the total consideration and Wuhan Zhongheng Group accounts for 49.5%by calculation.The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting of 2015 have considered and adopted the“Proposal on the project promotion and implementation of
44、 urban renewal and the progress of related transactions of the updated units at Huafa Area,Gong Ming Street,Guangming New District,Shenzhen”,the company has signed the“Agreement on the cooperation of urban renewal project of the updated units at Huafa Area,Gong Ming Street,Guangming New District,She
45、nzhen”,“Contract for the cooperative venture of reconstruction project for Huafa Industrial Park,Gong Ming Street,Guangming New District”and“Agreement on housing acquisition and removal compensation and resettlement”with Wuhan Wuhan Zhongheng Group,Shenzhen V anke Real Estate Co.,Ltd.(hereinafter re
46、ferred to as“Shenzhen V anke”),and Shenzhen V anke Guangming Real Estate Development Co.,Ltd.(hereinafter referred to as“V anke Guangming”).On 12 September 2016,Shenzhen V anke applied for arbitration in respect of“Agreement on the cooperation of Shenzhen Zhongheng Huafa Co.,Ltd.First Quarterly Repo
47、rt 2021 10 urban renewal project of the updated units at Huafa Area,Gong Ming Street,Guangming New District,Shenzhen”against the Company and Wuhan Zhongheng Group.Shenzhen Court of International Arbitration(SCIA)has given a ruling in August 2017.On August 29,2018,the court accepted the compulsory ex
48、ecution application of Shenzhen V anke.In October 2019,as a number of outsiders filed an“execution objection”and applied for“no execution”to Shenzhen Intermediate People s Court,the Shenzhen Intermediate People s Court ruled to terminate the enforcement procedure on March 20,2020.If the“execution ob
49、jection”and“no execution”proposed by outsiders are rejected according to law,Shenzhen V anke may continue to apply to the Shenzhen Intermediate People s Court to resume execution.In mid April 2020,Heng semiconductor sued the company in Shenzhen intermediate peoples court,requiring the company to tra
50、nsfer the above two pieces of land and compensate for the economic loss of 52 million yuan.As of the disclosure date of this report,the case has not yet been concluded.Progress of the case found more in the Notices released on Juchao website dated 14 Sept.2016,1 Nov.2016,16 Nov.2016,on 18 Feb.2017,2
