1、Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 1 Stock Code:000020,200020 Public Notice No.:2011-16 Short Form of the Stock:SHEN Huafa-A,SHEN Huafa-B Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 1.Important Notice 1.1 Board of Directors,Supervisory Committee,all dir
2、ectors,supervisors and senior executives of Shenzhen Zhongheng Huafa Co.,Ltd.(hereinafter referred to as the Company)hereby confirm that there are no any fictitious statements,misleading statements,or important omissions carried in this report,and shall take all responsibilities,individual and/or jo
3、int,for the reality,accuracy and completion of the whole contents.The summary of Annual Report 2010 is abstracted from the Annual Report;and full text of the Annual Report is published on Internet website http:/in the mean time.The investors are suggested to read the full text of semi-annual report
4、to get more details.1.2 Shine Wing Certified Public Accountants has audited the Annual Financial Report and issued standard unqualified Auditors Report for the Company.1.3 Mr.Li Zhongqiu,Principal of the Company;Mr.Jiang Yanjun,Person in Charge of Accounting Affairs;and Mr.Sun Wei,Person in Charge o
5、f Accounting Organ(Accounting Supervisor)hereby confirm that the Financial Report enclosed in the Annual Report is true and complete.2.Company Profile 2.1 Basic information Short form of the stock SHEN HUAFA-A,SHEN HUAFA-B Stock code 000020,200020 Listed stock exchange Shenzhen Stock Exchange Regist
6、ered address 411 Bldg.,Huafa North Road,Futian District,Shenzhen Post code of registered address 518031 Office address 6/F,East Tower,Huafa Mansion,411 Bldg,Huafa Road(N),Futian District,Shenzhen.Post code of office address 518031 Internet web site of the Company http:/E-mail 2.2 Contact person and
7、method Secretary of the Board Securities Affairs Representative Name Jiang Yanjun Weng Xiaojue Contact address 6/F,East Tower,Huafa Mansion,Huafa Road(N),Futian District,Shenzhen 6/F,East Tower,Huafa Mansion,Huafa Road(N),Futian District,Shenzhen Telephone 0755-83352206 0755-83352206 Fax 0755-833231
8、60 0755-83323160 E-mail Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 2 3.Summary of Accounting Data and Financial Indexes 3.1 Major accounting data Unit:RMB 2010 2009 Increase/decrease in this year compared with that of last year 2008 Operating income(RMB)745,580,123.38 508,262,752
9、.54 46.69%189,401,245.08 Total profit(RMB)12,504,757.81 7,143,294.51 75.06%4,914,587.51 Net profit attributable to shareholders of the listed company(RMB)9,177,262.81 4,154,592.65 120.89%7,567,912.54 Net profit attributable to shareholders of the listed company after deducting non-recurring gains an
10、d losses(RMB)11,252,462.92 4,727,307.83 138.03%1,817,162.61 Net cash flow arising from operating activities(RMB)56,799,807.76-99,642,853.06-18,616,487.18 At the end of 2010 At the end of 2009 Increase/decrease at the end of this year compared with that at the end of last year At the end of 2008 Tota
11、l assets(RMB)725,894,326.42 756,779,839.48-4.08%446,670,716.88 Owners equity attributable to shareholders of the listed company(RMB)266,564,632.01 251,963,858.81 5.79%247,809,266.16 Share capital(Share)283,161,227.00 283,161,227.00 0.00%283,161,227.00 3.2 Major financial indexes Unit:RMB 2010 2009 I
12、ncrease/decrease this year compared with that last year 2008 Basic earnings per share(RMB/Share)0.0324 0.0147 120.41%0.0267 Diluted earnings per share(RMB/Share)0.0324 0.0147 120.41%0.0267 Basic earnings per share after deducting non-recurring gains and losses(RMB/Share)0.0397 0.0167 137.72%0.0064 S
13、henzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 3 Weighted average return on equity(%)3.58%1.66%Increase 1.92 percentage points 3.08%Weighted average return on equity after deducting non-recurring gains and losses(%)4.39%1.89%Increase 2.50 percentage points 0.74%Net cash flow arising f
14、rom operating activities per share(RMB/Share)0.20-0.35-0.066 At the end of 2010 At the end of 2009 Increase/decrease at the end of this year compared with that at the end of last year At the end of 2008 Net asset per share attributable to shareholders of listed company(RMB/Share)0.94 0.89 5.62%0.875
15、 Items of non-recurring gains and losses Applicable Inapplicable Unit:RMB Items of non-recurring gains and losses Amount Notes(If applicable)Gains and losses from the disposal of non-current asset 113,185.39 Governmental subsidy reckoned into current gains and losses,but closely relevant to the Comp
16、anys business except for the governmental subsidy enjoyed in quota or ration according to the national general standards 200,000.00 Other non-operating income and expenditure except for the above items-2,393,270.85 Influenced amount of income tax 4,885.35 Total-2,075,200.11-3.3 Differences between C
17、AS and IAS Applicable Inapplicable 4.Changes in Share Capital and Particulars about Shareholders 4.1 Statement of change in share capital Unit:Share Before the change Increase/Decrease of this time(+,-)After the change Amount Proportion New shares issued Bonus shares Capitalization of public reserve
18、 Others Subtotal Amount Proportion I.Restricted shares 116,489,894 41.14%116,489,894 41.14%1.State-owned shares Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 4 2.State-owned legal persons shares 3.Other domestic shares 116,489,894 41.14%116,489,894 41.14%Including:Domestic non-state
19、-owned legal persons shares Domestic natural persons shares 116,489,894 41.14%116,489,894 41.14%4.Foreign shares Including:Foreign legal persons shares Foreign natural persons shares 5.Senior executives shares II.Unrestricted shares 166,671,333 58.86%166,671,333 58.86%1.RMB Ordinary shares 64,675,49
20、7 22.84%64,675,497 22.84%2.Domestically listed foreign shares 101,995,836 36.02%101,995,836 36.02%3.Overseas listed foreign shares 4.Others III.Total shares 283,161,227 100.00%283,161,227 100.00%Statement on changes of restricted shares Unit:Share Name of shareholders Restricted shares at year-begin
21、 Restricted shares released in current year Increased restricted shares in current year Restricted shares at year-end Reason for restriction Releasing date Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.116,489,894 0 0 116,489,894 Regarding that the total 116,489,894 shares of the C
22、ompany held were in state of pledge,till end of the report period,Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.applied no release procedures to Shenzhen Stock Exchange for the abovementioned restricted shares.2010-5-18 Total 116,489,894 0 0 116,489,894 Shenzhen Zhongheng Huafa Co.
23、,Ltd.Summary of Annual Report 2010 5 4.2 Particulars about shares held by the top ten shareholders and the top ten shareholders with unrestricted conditions Unit:Share Total shareholders 30,497 Particulars about shares held by the top ten shareholders Names of shareholders Nature of shareholder Prop
24、ortion of share held Amount of share held Amount of restricted shares held Shares pledged or frozen Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.Domestic non-state-owned legal person shares 41.14%116,489,894 116,489,894 116,489,894 SEG(HONG KONG)CO.,LTD.Foreign legal person 5.85%1
25、6,569,560 0 0 GOOD HOPE CORNER INVESTMENTS LTD Foreign legal person 4.91%13,900,000 0 0 JIA WEN JUN Domestic natural person 0.42%1,184,432 0 0 CHEN ZHU ZHAN Domestic natural person 0.40%1,146,300 0 0 BINGHUA LIU Foreign natural person 0.31%876,213 0 0 GUO XING ZHI Domestic natural person 0.22%615,10
26、0 0 0 ZHU MING Domestic natural person 0.22%611,348 0 0 LUO YA Domestic natural person 0.21%589,800 0 0 DBS VICKERS(HONG KONG)LTD A/C CLIENTS Foreign legal person 0.21%581,150 0 0 Particulars about shares held by the top ten unrestricted shareholders Name of shareholder Amount of unrestricted shares
27、 held Type of share SEG(HONG KONG)CO.,LTD.16,569,560 Domestically listed foreign share GOOD HOPE CORNER NVESTMENTS LTD 13,900,000 Domestically listed foreign share JIA WEN JUN 1,184,432 RMB common share CHEN ZHU ZHAN 1,146,300 Domestically listed foreign share BINGHUA LIU 876,213 Domestically listed
28、 foreign share GUO XING ZHI 615,100 RMB common share ZHU MING 611,348 Domestically listed foreign share LUO YA 589,800 Domestically listed foreign share DBS VICKERS(HONG KONG)LTD A/C CLIENTS 581,150 Domestically listed foreign share LIU BO 540,010 Domestically listed foreign share Explanation on ass
29、ociated relationship among the aforesaid shareholders or consistent action Among the top ten shareholders,Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.neither bears associated relationship with other shareholders,nor belongs to the consistent actor that are prescribed in Measures
30、for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.The Company neither knew whether there exists associated relationship among the other shareholders,nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Share
31、holder Equity Changes of Listed Companies.Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 6 4.3 Particulars about controlling shareholders and actual controller of the Company 4.3.1 Particulars about change in controlling shareholders and actual controller of the Company Applicable In
32、applicable 4.3.2 Introduction of especial situation for controlling shareholder and actual controller Name of the controlling shareholder:Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.Legal representative:Li Zhongqiu Date of foundation:March 21,1996 Registered capital:RMB 138,000,0
33、00 Business scope:Production;sales of computers,TV set,display,other hardware and computer software;development of internal data communication network,building of packing materials and light weight building material for packaging;hardware metal product,plastic product;acoustic product and electronic
34、 equipment;fabrics and garments;sales of building materials;management of exports business for the own products and technologies for the Company and member enterprise;management of export business on raw material,apparatus and instrument,machinery equipments,spare parts and technologies(barring thos
35、e limited on operations or forbidden products or techniques of export and import by nation),development of real-estate and sales of commercial housings.4.3.3 Property right and controlling relationships between the actual controllers of the Company and the Company is as follows:5.Particulars about D
36、irectors,Supervisors,Senior Executives 5.1 Particulars about changes in shares held by directors,supervisors and senior executives and their remunerations Name Title Sex Age Begin date of office term End date of office term Shares held at year-begin Shares held at year-end Reason for change Total re
37、muneration drawn from the Company in the report period(RMB0000)(before tax)Drawing remuneration from shareholders units or other related units or not Li Zhongqiu Chairman Male 48 2010-08-11 2013-08-10 0 0 N/A 0.00 Yes Tang Chongyin Director Male 50 2010-08-11 2013-08-10 0 0 N/A 0.00 Yes Chen Zhigang
38、 Director Male 37 2010-08-11 2013-08-10 0 0 N/A 0.00 Yes Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.Shenzhen Zhongheng Huafa Co.,Ltd.41.14%Li Zhongqiu 99%Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Report 2010 7 Jiang Yanjun Director Male 41 2010-08-11 2013-08-10 0 0 N/A
39、17.43 No Li Dingan Independent Director Male 65 2010-08-11 2013-08-10 0 0 N/A 6.00 No Zhang Yi Independent Director Male 40 2010-08-11 2013-08-10 0 0 N/A 6.00 No Li Xiaodong Independent Director Male 44 2010-08-11 2013-08-10 0 0 N/A 2.34 No Cao Li Supervisor Female 40 2010-08-11 2013-08-10 0 0 N/A 2
40、1.87 No Tang Ganyu Supervisor Female 33 2010-08-11 2013-08-10 0 0 N/A 0.00 Yes Weng Xiaojue Supervisor Female 30 2010-08-11 2013-08-10 0 0 N/A 12.78 No Total-0 0-66.42-Stocks option of the directors,supervisors and senior executives bestowed in the report period Applicable Inapplicable 5.2 Presences
41、 at the meetings of the Board by the directors Name of the directors Positions Due Presence(times)Presence in person(times)Attending the meeting in way of communication(times)Entrusted presence Absence(times)Whether attending the meeting in person in successive two times or not Li Zhongqiu Chairman
42、10 7 3 0 0 No Tang Chongyin Vice Chairman 10 6 3 1 0 No Chen Zhigang Director 10 5 3 2 0 No Jiang Yanjun Director 7 4 3 0 0 No Li Dingan Independent Director 10 6 3 1 0 No Zhang Yi Independent Director 10 7 3 0 0 No Li Xiaodong Independent Director 6 3 3 0 0 No Explanations on not attending the meet
43、ing of the Board in person in successive two times N/A Meetings of the Board held during the year(times)10 Of which:site meetings(times)7 Meetings held in way of communication(times)3 Meetings held in way of both site and communication(times)0 Shenzhen Zhongheng Huafa Co.,Ltd.Summary of Annual Repor
44、t 2010 8 6.Report of the Board of Directors 6.1 Discussion and analysis by the management team In 2010,shade of the financial crisis has gone.The global economy back into a recovery track completely.The demand for electric products in and out of China actively promoted the rapidly development in the
45、 industry of crystal display.Meanwhile,under the help of low-carbon economy industry and apparatus-village oriented policy that development sustainable from the State,the affiliated business of injection pieces&foam pieces and a set crystal display has a soaring order in needed which increase the bu
46、siness income in aspect of industry area of the Company.However,business encounter a hard situation due to the sustainable higher in material price,continuously revaluation of Renminbi,soaring labor cost and other un-favorable factors of bargaining from clients.Furthermore,the assets replacement eve
47、nts have been done in first quarter of 2010 with the printed circuit board business separation successfully.The Company suffers fewer losses in this business compared with same period of last year.Together with the efforts of all staff from the Company,total business income of RMB 746 million was re
48、alized in report period with 46.69 percent up over last year;realized net profit of RMB 9.17 million with 120.89 percent up over last year.Plastic injection business reached business income of RMB 178,625,300,a 41.08 percent up y-o-y with approximately 5.5 million sets of plastic injection pieces fo
49、r main clients produced:in report period,the Company explore market actively,strengthen the technical-reform and expand the co-operated business with Qingdao Haier for obtained 100%quota of Wuhan Air conditioner in whole year and 40%quota of Hefei Air conditioner in rush season;larger the quality co
50、ntrol at the same time,analyze abnormal feedback from the clients timely with effective measures option for solving,up grade the quality required on base of without production cost increased.The Company keep a favorable trading record in whole year;install robot arm in two of the injection equipment