1、Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 1 Stock Code:000020 200020 Public Notice No.:2021-09 Short Form of the Stock:SHEN HUAFA-A,SHEN HUAFA-B Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 I.Important Notice The summary is abstract from full-text of annual rep
2、ort,for more details of operating results,financial condition and future development plan of the Company;investors should found in the full-text of annual report that published on media appointed by CSRC.Other directors attending the Meeting for annual report deliberation except for the followed Nam
3、e of director absent Title for absent director Reasons for absent Attorney Prompt of non-standard audit opinion Applicable Not applicable Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period Applicable Not applicabl
4、e The Company has no plan of cash dividends carried out,bonus issued and capitalizing of common reserves either.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period Applicable Not applicable II.Basic information of the company 1.Company profil
5、e Short form of the stock Shen HUAFA A,Shen HUAFA B Stock code 000020,200020 Stock exchange for listing Shenzhen Stock Exchange Person/Way to contact Secretary of the Board Rep.of security affairs Name Niu Zhuo Office add.618,6/F,East Tower,No.411 Building,Huafa(N)Road,Futian District,Shenzhen Fax.0
6、755-86360206 Tel.0755-86360201 E-mail 2.Main business or product introduction in the reporting period After years of development,the company has gradually formed two main businesses in industry and property Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 2 management.Among them,the in
7、dustrial business mainly includes injection molding,polylon(light-weight packaging materials),and complete machine production and sales of liquid crystal display,property management business is mainly the lease of its own property.3.Main accounting data and financial indexes(I)Main accounting data a
8、nd financial indexes for recently three years Whether it has retroactive adjustment or re-statement on previous accounting data Yes No In RMB 2020 2019 Changes over last year 2018 Operating income 691,742,269.12 721,557,440.51-4.13%637,046,707.03 Net profit attributable to shareholders of the listed
9、 company 6,830,187.40 5,460,049.15 25.09%3,295,022.72 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses 4,103,393.55 4,843,096.96-15.27%1,535,043.65 Net cash flow arising from operating activities 59,719,269.60 74,463,707.01-19.80%-21,894,45
10、9.66 Basic earnings per share(RMB/Share)0.0241 0.0193 24.87%0.0116 Diluted earnings per share(RMB/Share)0.0241 0.0193 24.87%0.0116 Weighted average ROE 2.05%1.67%0.38%1.02%End of 2020 End of 2019 Changes over end of last year End of 2018 Total assets 627,779,621.06 614,163,899.86 2.22%617,090,153.46
11、 Net assets attributable to shareholder of listed company 336,248,737.29 329,428,049.89 2.07%323,968,000.74(2)Quarterly main financial index In RMB First quarter Second quarter Third quarter Fourth quarter Operating income 87,800,584.55 212,902,836.83 200,183,800.78 190,855,046.96 Net profit attribu
12、table to shareholders of the listed company-400,741.17 3,566,338.72 1,685,488.94 2,496,470.28 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses-208,179.52 3,376,075.98 1,108,517.51 344,348.95 Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annua
13、l Report 2020 3 Net cash flow arising from operating activities 7,931,308.59 13,268,903.65-7,509,489.19 46,028,546.55 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the company s quarterly report
14、 and semi-annual report Yes No 4.Shares and shareholders(1)Particulars about common stock shareholders,preference shareholders with voting rights recovered and top ten shareholders In Share Total common stock shareholders in reporting period-end 21,840 Total common stock shareholders at end of last
15、month before annual report disclosed 22,456 Total preference shareholders with voting rights recovered at end of reporting period 0 Total preference shareholders with voting rights recovered at end of last month before annual report disclosed 0 Top ten shareholders Full name of Shareholders Nature o
16、f shareholder Proportion of shares held Amount of shares held Amount of restricted shares held Number of shares pledged/frozen State of share Amount Wuhan Zhongheng 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 l
17、egal 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 Brokerage(Hong Kong)Co.,Ltd.Overseas legal person 1.89%5,355,249 0 Pledged 0 Frozen 0 Guoyuan Securities Brokerage(Hong Kong)Limited Overs
18、eas legal person 1.37%3,870,117 0 Pledged 0 Frozen 0 Li Zhongqiu Overseas 1.00%2,830,000 0 Pledged 0 Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 4 nature person Frozen 0 LI SHERYN ZHAN MING Overseas nature person 0.51%1,446,100 0 Pledged 0 Frozen 0 China Merchants Securities Hong
19、Kong Co.,Ltd.State-owned legal person 0.50%1,413,888 0 Pledged 0 Frozen 0 Shengyin Investment Co.,Ltd.Overseas legal person 0.50%1,408,600 0 Pledged 0 Frozen 0 Li Senzhuang Domestic nature person 0.37%1,041,073 0 Pledged 0 Frozen 0 Explanation on associated relationship among the aforesaid sharehold
20、ers Among the top ten shareholders,Li Zhongqiu is the actual controller of Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.and is a party acting in concert.Shengyin Investment Co.,Ltd.is an overseas wholly-owned subsidiary of Wuhan Zhongheng group.The Company neither knew whether the
21、re exists associated relationship among the other shareholders,nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.Explanation on involving margin business(if applicable)N/A(2)Total preferred stoc
22、k shareholders of the Company and shares held by top ten shareholders with preferred stock held Applicable Not applicable The Company had no shareholders with preferred stock held in the reporting.(3)Property right and controlling relationships between the actual controllers of the Company and the C
23、ompany is as follows:Li Zhongqiu Li Li(Son of Li Zhongqiu)Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.Shenzhen Zhongheng Huafa Co.,Ltd.51%49%42.21%Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 5 5.Corporate bonds Whether or not the Company public offering corpora
24、tion bonds in stock exchange,which undue or without payment in full at maturity on the approval date for annual report disclosed No III.Discussion and analysis of business 1.Introduction of operation in the reporting period 2020 was a very unusual year,the sudden outbreak of COVID-19 epidemic caused
25、 the companys important subsidiary in Wuhan to be affected by the epidemic,the resumption of work and production was later than in other areas of the country,and the loss of orders was relatively serious.Faced with such a difficult business environment,all employees of the company worked together to
26、 actively overcame the adverse effects of the epidemic,complied with the industry environment and the adjustment of national policies,broke through thinking and management strategies,and achieved good operating results.In 2020,the company achieved operating revenue of 691.7423 million yuan,a decreas
27、e of 4.13%on a year-on-year basis,total profits of 8.82 million yuan,increased by 13.76%compared with the same period last year,net profit amounted to 6.8302 million yuan,a 25.09%up from a year earlier.Video service business achieved annual operating income of 396.06 million yuan,an increase of 19.2
28、9%on a year-on-year basis,operation profit amounted as 6.4795 million yuan with 132.49%up from a year earlier.During the reporting period,the Video Business Division adjusted the product structure and optimized the sales ratio of each brand of products.The sales ratio of AOC,VSCN and VSC series bran
29、ds have increased,which opened online sales channels such as Jingdong while completing existing customer orders,and sold 900,000 LCD monitors in 2020,an increase of 9.68%over last year.Injection molding business achieved annual operating income of 185.4917 million yuan,a decrease of 25.86%over the s
30、ame period last year,operation profit amounted as 548,600 yuan,an increase of 2.39%from a year earlier.With the unceasingly fierce competition in the market,the profit margin of injection molding was squeezed,but the new production line put into production by this business division at the end of 201
31、8 gave full play to its automation advantages in 2020,which greatly improved production efficiency and reduced production costs.The injection molding division achieved annual sales volume of 9,900 tons,completed the annual sales target.Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2020 6
32、 Polylon business achieved annual operating income of 35.8333 million yuan,a decrease of 44.30%over the same period last year.Actual sales for the year were 2,500 tons,basically reaching the sales target.In order to better fulfill the sales target of 2021,the EPS business division maintained existin
33、g orders,increased the proportion of structural parts orders,developed new customer resources,and strive to accept more domestic and foreign large-scale household appliance customers orders.The property rental business achieved annual operating income of 40.5875 million yuan,an increase of 4.55%from
34、 a year earlier,operating profit amounted as 6 million yuan with a growth of 7.86%over that of last year.In 2020,the company optimized the structural proportion of commercial tenants,and the occupancy rate was greatly improved,at the same time,the company strictly controlled costs and reduced unnece
35、ssary expenditures.Therefore,the company s overall rental profits increased significantly compared with the previous year.2.Whether the main business had major change in the reporting period Yes No 3.About the industries,products,or regions accounting for over 10%of the company s operating income or
36、 operating profit Applicable Not applicable In RMB Name Operating revenue Operating cost Gross profit ratio Increase/decrease of operating revenue y-o-y Increase/decrease of operating cost y-o-y Increase/decrease of gross profit ratio y-o-y Monitor 396,060,015.82 6,479,543.15 6.63%19.29%132.49%0.15%
37、Injection model 185,491,674.08 548,642.72 9.40%-25.86%2.39%-1.39%EPS products 35,833,322.61-4,117,636.91-5.74%-44.30%-279.45%-9.07%Property lease 40,587,453.21 6,000,207.46 86.87%4.55%7.86%-6.75%4.Whether the characteristics of management seasonal or cyclical need special attention Yes No 5.In the r
38、eporting period,note of major changes in operating income,operating cost,total net profit attributable to common stock shareholders of listed company or composing the previous reporting period Applicable Not applicable 6.Facing delisting Applicable Not applicable Shenzhen Zhongheng Huafa Co.,Ltd.Sum
39、mary of Annual Report 2020 7 7.Related matters relating to financial reports(1)Particulars about the changes in aspect of accounting policy,estimates and calculation method compared with the financial report of last year Applicable Not applicable There was no change in aspect of accounting policy,es
40、timates and calculation method(2)Major accounting errors within reporting period that needs retrospective restatement Applicable Not applicable No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.(3)Compare with last year s financial
41、report;explain changes in consolidation statement s scope Applicable Not applicable Combined party Percentage of equity acquired in enterprise combination Constitute the basis for the enterprise combination under the same control Combining date Basis for determining the date of combination Income of
42、 the combined party from the beginning of the period of combination to the date of combination Net profit of the combined party from the beginning of the period of combination to the date of combination Income of the combined party during the comparison period Net profit of the combined party during the comparison period Ruth Co.,Ltd.100.00%2020.11.10 Equity Transfer Agreement Ruth Co.,Ltd was established in Hong Kong dated 25 October 2020 with registered capital of HK$10,000.00,no actual capital contributed and has not yet commenced production and operation activities.