1、The First Quarterly Report for 2008 1 Shenzhen Zhongheng Huafa Co.,Ltd.The First Quarterly Report for 2008 1 Important Notes 1.1 Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa Co.,Ltd.(hereinafter referred to as the Company)and its directors,supervisors and senior execu
2、tives hereby confirm that there are no any fictitious statements,misleading statements,or important omissions carried in this report,and shall take all responsibilities,individual and/or joint,for the reality,accuracy and completion of the whole contents.1.2 No directors,supervisors and senior execu
3、tives stated any objection for the correctness,accuracy and completeness of the contents of this report.1.3 All directors attended the Board meeting.1.4 The first quarterly financial report of 2008 has not been audited.1.5 Person in Charge of the Company Mr.Li Zhongqiu,Person in charge of Financal W
4、orks Mr.Shi Cheng,and Person in Charge of Finance Organ Mr.Zhang Zhiyong hereby confirm that the Financial Report of the First Quarterly Report is true and complete.2 Company Profile 2.1 Main Accounting Highlights and Financial Indexes:Unit:RMB At the end of the report period At the period-end of la
5、st year Increase/decrease(%)Total assets 364,173,370.06 373,957,038.94-2.62Owners equity(or Shareholders equity)243,723,807.65 242,200,200.60 0.63Net assets per share 0.86 0.86 0.00 This period Same period of last year Increase or decrease(%)Net profit 1,523,607.05 118,919.63 1,181.21Net cash flow a
6、rising from operating activities 11,291,901.85 243,191.60 4,543.21Net cash flow arising from operating activities per share 0.04 0.00086 4,551.16Basic earnings per share 0.00513 0.00042 1,121.43Diluted earnings per share 0.00513 0.00042 1,121.43Return on equity 0.63%0.05%Increased 0.58 percentage po
7、intsReturn on equity after deducting the non-recurring losses and gains 0.14%-0.39%Increased 0.53 percentage pointsThe First Quarterly Report for 2008 2 Items of non-recurring gains and losses Unit:RMB Items of non-recurring gains and losses Amount in year-begin to the end of report period Net lease
8、 income of the transferred the property right of Huafa Yard 949491.00Other 234,908.79Total 1,184,399.792.2 Total number of shareholders in the end of the report period and shares held by the top ten shareholders with unrestricted conditions Unit:Share Total number of shareholders 24,790 Shares held
9、by the top ten shareholders with unrestricted conditions Full Name of shareholder Amount of unrestricted shares held Type of shares SEG(HONG KONG)CO.,LTD 16,569,560 Domestically listed foreign shareGOOD HOPE CORNER INVESTMENTS LTD 13,900,000 Domestically listed foreign shareHE HUAN HAO 1,454,300 RMB
10、 common share RENJUN DEVELOPMENT CO.,LTD 1,200,000 Domestically listed foreign shareBINGHUA LIU 876,213 Domestically listed foreign shareWU WEI MIN 870,500 RMB common share LUO YA 756,620 Domestically listed foreign shareLIU LIAO YUAN 734,200 Domestically listed foreign shareFENG ZHI E 693,500 RMB c
11、ommon share ZHU MING 611,348 Domestically listed foreign share 3 Significant events 3.1 Particulars about material changes in items of main accounting statement and financial index,and explanations of reasons A pplicab le Inapplicable 1.Operation incomes increased 53%compared with the same period of
12、 last year,and operation costs increased 45%compared with the same time of last year,which were mainly because manufacturing business of liquid crystal display with high sales and costs increased;2.Sales expenses increased 72%compared with the same period of last year,which was mainly because manufa
13、cturing business of liquid crystal display increased and then transportation costs and business development costs increased;3.Administration expenses increased 65%compared with the same period of last year,which was mainly because operation scope extended,added operation business given by controllin
14、g shareholders,and various cost expense increased correspondingly;4.Financial expenses increased 81%compared with the same period of last year,which was mainly because business of liquid crystal display were most export sales,losses from exchange resulted by The First Quarterly Report for 2008 3 RMB
15、 appreciation;5.Net profits increased 11.8 times compared with the same period of last year,which was mainly because Baolilong business given by controlling shareholders in first half year was in peak season.3.2 Analysis and explanation of significant events and their influence and solutions A pplic
16、ab le Inapplicable 3.3 Implementations of commitments by the Company,shareholders and actual controller A pplicab le Inapplicable Holding shareholder Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.s commitments:1.Promised that the holding non-circulating shares of the Company wont b
17、e traded on the market within 36 months since they acquired listed trading right,and this commitment is under implementation.2.Planed to put related asset of plastic injection business and its owned 70%HSGD equity into Shenzhen Huafa within 1 year after the accomplishment of the purchased equity own
18、ership transfer.Wuhan Zhongheng Group did not accomplish the asset injection during the commitment period.At present,the Group planned to inject the orginal committed two assets in the method of selling asset and asset subscription on secifically allotted shares from the listed company;and the relev
19、ant procedure was under the process.3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason A pplicab le Inapp
20、licable The first half year is the hot season for its holding shareholders beneficence Baolilong business,which brought new profit rising point.The Company predicted will change the loss trend for its operation performance from Jan.to June of 2008 compared to the same time of last year.3.5 Other sig
21、nificant events which need explanations 3.5.1 Particulars about securities investment A pplicab le Inapplicable 3.5.2 Equity of other listed companies held A pplicab le Inapplicable 3.5.3 Registration form for receiving research,communication and interview in the report period.The Company has not re
22、ceived spot research,phone communication and written inquiry from investors during the report period.The First Quarterly Report for 2008 4 4 Appendix 4.1 Balance sheet P r epar ed by S hen zhe n Z ho n ghe ng H uaf a Co.,Lt d.Mar ch 3 1,20 08 U n it:RMB Amount at period-end Amount at period-begin It
23、ems Merger Parent Company Merger Parent Company Current assets:Monetary funds 16,169,352.86 15,853,743.15 18,308,223.25 17,175,103.18Notes receivable 970,530.09 970,530.09 3,949,751.05 3,949,751.05Accounts receivable 38,386,406.14 38,360,883.14 57,501,749.38 57,474,744.38Accounts paid in advance 7,0
24、85,618.04 7,085,618.04 2,469,127.52 2,469,127.52Other receivables 12,777,808.24 14,556,169.18 17,885,097.37 20,338,083.04Inventories 50,822,365.3950,822,365.3932,595,773.55 32,595,773.55Non-current asset due within one year Other current assets Total current assets 126,212,080.76 127,649,308.99 132,
25、709,722.12 134,002,582.72Non-current assets:Long-term account receivable Long-term equity investment Investment property 45,128,814.98 45,128,814.98 45,819,394.37 45,819,394.37Fixed assets:183,896,499.32 183,825,521.07 187,238,973.29 187,148,677.44Construction in progress 746,014.20 746,014.20 1,036
26、,612.52 1,036,612.52Engineering material Disposal of fixed asset Intangible assets 6,447,080.25 6,447,080.25 6,451,549.35 6,451,549.35Goodwill Long-term expenses to be apportioned 1,042,093.26 1,042,093.26 Deferred income tax asset 700,787.29 700,787.29 Other non-current asset Total non-current asse
27、t 237,961,289.30 237,189,523.76 241,247,316.82 240,456,233.68Total assets 364,173,370.06 364,838,832.75 373,957,038.94 374,458,816.40Current liabilities:Short-term loans 49,200,000.00 49,200,000.00 60,400,000.00 60,400,000.00Notes payable 2,899,063.90 2,899,063.90 2,812,914.35 2,812,914.35Accounts p
28、ayable 47,469,985.80 47,360,136.70 42,777,941.82 42,668,092.72Accounts received in advance 598,951.59 598,951.59 666,261.81 655,415.81Wage payable 823,260.47 830,045.33 1,028,977.77 974,636.79Taxes payable 933,336.08 915,509.20 1,870,755.16 1,836,152.65The First Quarterly Report for 2008 5 Interest
29、payable Other accounts payable 18,524,964.57 19,311,318.38 22,199,987.43 22,911,403.48Long-term liabilities due within 1 year Other current liabilities Total current liabilities 120,449,562.41 121,115,025.10 131,756,838.34 132,258,615.80Non-current liabilities:Long-term loans Bonds payable Long-term
30、 account payable Projected liabilities Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities 120,449,562.41 121,115,025.10 131,756,838.34 132,258,615.80Owners equity(or shareholders equity):Paid-in capital(or share capital)283,161,227.00 283,16
31、1,227.00 283,161,227.00 283,161,227.00Capital public reserve 106,032,173.92 106,032,173.92 106,032,173.92 106,032,173.92Less:Inventory shares Surplus public reserve 77,391,593.25 77,391,593.25 77,391,593.25 77,391,593.25Retained profit-222,861,186.52-222,861,186.52-224,384,793.57-224,384,793.57Total
32、 owners equity attributable to parent company 243,723,807.65 243,723,807.65 242,200,200.60 242,200,200.60Minority interests Total owners equity 243,723,807.65 243,723,807.65 242,200,200.60 242,200,200.60Total liabilities and owners equity 364,173,370.06 364,838,832.75 373,957,038.94 374,458,816.40 4
33、.2 Profit statement Prepared by Shenzhen Zhongheng H uaf a Co.,Lt d.Jan.-Mar.,2 00 8 U nit:R M B This period Same period of last year Items Merger Parent Company Merger I.Total operating income 42,328,434.23 41,842,186.23 27,647,381.05 27,138,424.05Including:Operating income 42,328,434.23 41,842,186
34、.23 27,647,381.05 27,138,424.05II.Total operating cost 42,940,270.50 42,454,270.40 28,534,308.83 28,025,351.83Including:Operating cost 34,131,325.38 34,131,325.38 23,607,097.31 23,366,978.09Operating tax and extras 477,565.00 452,280.11 26,444.97 Sales expenses 1,011,006.23 1,011,006.23 587,384.67 5
35、87,384.67Administration expenses 5,041,632.79 4,580,872.02 3,054,532.06 2,811,576.55The First Quarterly Report for 2008 6 Financial expenses 2,278,741.10 2,278,786.66 1,258,849.82 1,259,412.52Losses of devaluation of asset Add:Changing income of fair value(Loss is listed with“-”)Investment income(Lo
36、ss is listed with“-”)Including:Investment income on affiliated company and joint venture Income from entrusted operations 951,043.53951,043.53 Exchange income(Loss is listed with“-”)III.Operating profit(Loss is listed with“-”)339,207.26 338,959.36-886,927.78-886,927.78Add:Non-operating income 1,245,
37、349.09 1,245,349.09 1,066,626.20 1,066,626.20Less:Non-operating expense 60,949.30 60,701.40 60,778.79 60,778.79Including:Disposal loss of non-current asset IV.Total Profit(Loss is listed with“-”)1,523,607.05 1,523,607.05 118,919.63 118,919.63Less:Income tax V.Net profit(Net loss is listed with“-”)1,
38、523,607.05 1,523,607.05 118,919.63 118,919.63Net profit attributable to owners equity of parent company 1,523,607.05 1,523,607.05 118,919.63 118,919.63Minority shareholders gains and losses VI.Earnings per share i.Basic earnings per share 0.00513 0.00513 0.00042 0.00042ii.Diluted earnings per share
39、0.00513 0.00513 0.00042 0.000424.3 Cash flow statement Prepared by Shenzhen Zhongheng H uaf a Co.,Lt d.Jan.-Mar.,20 08 U n it:R MB This period Same period of last year Items Merger Parent Company Merger Parent Company I.Cash flows arising from operating activities:Cash received from selling commodit
40、ies and providing labor services 63,268,673.33 62,791,789.33 70,712,169.28 70,200,406.28Write-back of tax received Other cash received concerning operating activities 1,134,312.25 2,144,025.65 4,906,573.52 4,534,587.69 Subtotal of cash inflow 64,402,985.58 64,935,814.98 75,618,742.80 74,734,993.97Th
41、e First Quarterly Report for 2008 7 arising from operating activities Cash paid for purchasing commodities and receiving labor service 34,125,751.78 34,125,751.78 59,226,629.12 59,226,629.12Cash paid to/for staff and workers 5,259,244.43 5,191,739.57 5,837,464.66 5,700,219.39Taxes paid 4,336,818.33
42、4,292,705.13 1,581,155.04 1,552,227.39Other cash paid concerning operating activities 9,389,269.19 9,216,206.29 8,730,302.38 8,105,780.00Subtotal of cash outflow arising from operating activities 53,111,083.73 52,826,402.77 75,375,551.20 74,584,855.90Net cash flows arising from operating activities
43、11,291,901.85 12,109,412.21 243,191.60 150,138.07II.Cash flows arising from investing activities:Cash received from recovering investment Cash received from investment income Net cash received from disposal of fixed,intangible and other long-term assets 135,000.00 135,000.00 Net cash received from d
44、isposal of subsidiaries and other units Other cash received concerning investing activities Subtotal of cash inflow from investing activities 135,000.00 135,000.00 Cash paid for purchasing fixed,intangible and other long-term assets 54,401.68 54,401.68 917,673.80 917,673.80Cash paid for investment N
45、et cash received from subsidiaries and other units Other cash paid concerning investing activities Subtotal of cash outflow from investing activities 54,401.68 54,401.68 917,673.80 917,673.80Net cash flows arising from investing activities 80,598.32 80,598.32-917,673.80-917,673.80III.Cash flows aris
46、ing from financing activities Cash received from absorbing investment Including:Cash received from absorbing minority shareholders investment by subsidiaries Cash received from 10,000,000.00 10,000,000.00The First Quarterly Report for 2008 8 loans Cash received from issuing bonds Other cash received
47、 concerning financing activities Subtotal of cash inflow from financing activities 10,000,000.00 10,000,000.00Cash paid for settling debts 11,200,000.00 11,200,000.00 1,500,000.00 1,500,000.00Cash paid for dividend and profit distributing or interest paying 974,187.08 974,187.08 1,172,795.71 1,172,7
48、95.71Including:Dividend and profit of minority shareholder paid by subsidiaries Other cash paid concerning financing activities Subtotal of cash outflow from financing activities 12,174,187.08 12,174,187.08 2,672,795.71 2,672,795.71Net cash flows arising from financing activities-12,174,187.08-12,17
49、4,187.08 7,327,204.29 7,327,204.29IV.Influence on cash due to fluctuation in exchange rate-1,337,183.48-1,337,183.48-13,619.23-13,619.23V.Net increase of cash and cash equivalents-2,138,870.39-1,321,360.03 6,639,102.86 6,546,049.33Add:Balance of cash and cash equivalents at the period-begin 18,308,2
50、23.25 17,175,103.18 19,610,336.01 17,579,528.19VI.Balance of cash and cash equivalents at the period-end16,169,352.86 15,853,743.15 26,249,438.87 24,125,577.524.4 Auditor report Auditors opinions:Un-audited Chairman:Li Zhongqiu Board of the Directors of Shenzhen Zhongheng Huafa Co.,Ltd.April 29,2008
