1、 Shenzhen Zhongheng Huafa Co.,Ltd.SEMI-ANNUAL REPORT 2008 Stock Code:000020,200020 Short Form of the Stock:ST HUAFA-A,ST HUAFA-B Semi-annual Report 2008 1 Important Notice The Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa Co.,Ltd.(hereinafter referred to as the Company
2、)and its directors,supervisors and senior executives confirm that there are no fictitious records,misleading statements or material omissions carried in this report,and shall take all responsibilities,individual and/or joint,for the reality,accuracy and completion of the whole contents.No directors,
3、supervisors or senior executives stated that he(she)couldnt ensure the reality,accuracy and completion of the contents of the Interim Report or have objection to this report.Independent Directors of the Company Mr.Yan Haizhong and Ms.Song Pingping were absent for business,and all other directors att
4、ended the meeting of the Board.Mr.Li Zhongqiu,Chairman of Board and General Manager of the Company,Mr.Shi Cheng,Person in Charge of Accounting Work,and Mr.Zhang Zhiyong,Person in Charge of Accounting Organ hereby state that:the financial report of the 2008 Semi-annual Report is true and complete.The
5、 Semi-annual financial report of the Company has not been audited.Board of Directors of Shenzhen Zhongheng Huafa Co.,Ltd.Contents.COMPANY PROFILE.CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHARES HELD BY MAIN SHAREHOLDERS III.PARTICULARS ABOUT DIRECTORS,SUPERVISORS AND SENIOR EXECUTIVES.REPORT O
6、F THE BAORD OF DIRECTORS.SIGNIFICANT EVENTS.FINANCIAL REPORT(UNAUDITED).DOCUMENTS A V AILABLE FOR REFERENCE Semi-annual Report 2008 2 I.Company Profile 1.Name of the Company In Chinese:In English:SHENZHEN ZHONGHENG HUAFA CO.,LTD.2.Legal Representative:Li Zhongqiu 3.Secretary of the Board:Shi Cheng S
7、ecurities Affairs Representative:Weng Xiaojue Contact Address:6/F,East Tower of 411 Bldg,Huafa Building,Huafa Road(N),Futian District,Shenzhen.Tel:(86)83352206 Fax:(86)755-83323160 E-mail:4.Registered Address:411 Bldg.,Huafa North Road,Futian District,Shenzhen Office Address:6/F,East Tower of 411 Bl
8、dg.,Huafa Road(N),Futian District,Shenzhen.Post Code:518031 Companys Internet Web Site:http:/5.Newspapers for Disclosing the Information of the Company:China Securities,Securities Times and Hong Kong Wen Wei Po Internet Web Site for Publishing the Semi-Annual Report:http:/The Place Where the Semi-An
9、nual Report is Prepared and Placed:OFF.of Board of Directors of Shenzhen Zhongheng Huafa Co.,Ltd.6.Stock Exchange Listed with:Shenzhen Stock Exchange Short Form of the Stock:ST HUAFA-A,ST HUAFA-B Stock Code:000020,200020 7.Other Relevant Information of the Company Initial registered date and place o
10、r changed registered date and place:Registered date:May,1992 Registered place:411 Bldg.,Huafa North Road,Futian District,Shenzhen Registered number of enterprise legal persons business license:100296 Registered number of tax:113260 Name and office address of Certified Public Accountants engaged by t
11、he Company:Name:Shinewing Certified Public Accountants Address:9/F,Block A,Fu Hua Mansion No.8 Chaoyang Men,Bei da jie,Dong Cheng District,Beijing,P.R.China Semi-annual Report 2008 3 II.Major financial data and indexes Unit:RMB At the period-end of last yea Increase/decrease at the end of this repor
12、t period compared with that at the period-end of last year At the end of this report period Before adjustment After adjustmentBefore adjustment After adjustment Total assets 499,276,250.33 373,957,038.94 373,957,038.94 33.51 33.51Owners equity(Shareholders equity)239,696,807.32242,200,200.60242,200,
13、200.60-1.03-1.03Net assets per share 0.847 0.855 0.855-0.94-0.94The same period of last year Increase/decrease in this report period year-on-year(%)In this report period(Jan.to Jun.)Before adjustment After adjustmentBefore adjustment After adjustment Operating profit-4,320,768.46-6,374,297.27-8,082,
14、915.16 34.30 48.19Total profit-2,503,393.28-2,275,256.07-2,275,256.07-10.03-10.03Net profit attributable to the shareholders of the company-2,503,393.28-2,275,256.07-2,275,256.07-10.03-10.03Net profit attributable to the shareholders of the company after deducting non-recurring gains and losses-4,32
15、0,768.46-6,374,297.27-6,374,297.27 34.30 34.30Basic earnings per share-0.009-0.008-0.008-12.50-12.50Diluted earnings per share-0.009-0.008-0.008-12.50-12.50Return on equity-1.04%-1.03%-1.03%Decreased 0.01 percentage points Decreased 0.01percentage pointsNet cash flow arising from operating activitie
16、s-26,048,943.94-10,834,097.67-140.43Net cash flow arising from per share operating activities-0.092-0.038-140.43 Note:The adjusted amount of operating profit in last year amounted to RMB 1,708,617.89 was that the lease income and relevant expense of transferred Huafa Yard were adjusted to non-operat
17、ing expense.Items of non-recurring gains and losses Amount Donation assets calculated into current gains and losses Other non-recurring gains and losses 1,817,375.18Total 1,817,375.18 Semi-annual Report 2008 4 CAS IAS Net profit-2,503,393.28-2,503,393.28 Net asset 239,696,807.32 239,696,807.32 Retur
18、n on equity Earnings per share Item Fully diluted(%)Weighted average(%)Basic earnings per share(RMB)Diluted earnings per share(RMB)Net profit attributable to the shareholders of the company-1.044-1.039-0.009-0.009Net profit attributable to the shareholders of the company after deducting non-recurrin
19、g gains and losses-1.803-1.793-0.015-0.015 II.Change in Share Capital and Particulars about Shares Held by Main Shareholders I.Particulars about change in share capital Before the change Increase/decrease in the change of this time(+,-)After the change Amount(RMB)Proportion(%)New share issuedBonus s
20、haresCapitalization of public reserve Others Subtotal Amount Proportion(%)I.Restricted shares 116,516,142 41.15-26248-26248 116,489,894 41.141.State-owned shares 2.State-owned legal persons shares 3.Other domestic shares 116,516,142 41.15-26248-26248 116,489,894 41.14Including:Domestic legal persons
21、 shares 116,489,894 41.14 0 0 116,489,894 41.14Domestic natural persons shares(shares of senior executives)26248 0.01-26248-26248 0 04.Foreign shares Including:Foreign legal persons shares Foreign natural persons shares Semi-annual Report 2008 5II.Unrestricted shares 166,645,085 58.85 26248 26248 16
22、6,671,333 58.861.RMB Ordinary shares 64,649,249 22.83 26248 26248 64,675,497 22.842.Domestically listed foreign shares 101,995,836 36.02 0 0 101,995,836 36.023.Overseas listed foreign shares 4.Others III.Total shares 283,161,227 100 0 0 283,161,227 100Note:In accordance with the relevant regulations
23、,directors,supervisor and senior executives of the listed company could apply to release the sale restriction of shares held by them after leaving the positions 6 months later.Ended Jan.17,2008,the original chairman of supervisor committee of the Company Mr.Ye Daming leaved his position for 6 months
24、 long,with the application to China Securities Regulatory Commission and China Securities Depository and Clearing Corporation Limited Shenzhen Branch,his held 26,248 shares of the Company have all been released sales restrictions.II.Particulars about shareholders(registered on Jun.30,2008)Total shar
25、eholders 24,265 Particulars about shares held by the top ten shareholders Full name of Shareholders Nature of shareholders Proportion of shares held Total amount of shares heldAmount of restricted shares held Amount of shares pledged or frozen Wuhan Zhongheng New Science&Technology Industrial Group
26、Co.,Ltd.Domestic non-state-owned legal person shares 41.14%116,489,894 116,489,894 0 SEG(HONG KONG)CO.,LTD.Foreign legal person 5.85%16,569,560 0 Unknown GOOD HOPE CORNER INVESTMENTS LTD Foreign legal person 4.91%13,900,000 0 Unknown HE HUAN HAO Domestic natural person 0.47%1,322,981 0 Unknown REN J
27、UN DEVELOPMENT CO.,LT D.Foreign legal person 0.42%1,200,000 0 Unknown WANG ZHI HAI Domestic natural person 0.39%1,106,369 0 Unknown BINGHUA LIU Foreign natural person 0.31%876,213 0 Unknown WU WEI MIN Domestic natural person 0.31%870,500 0 Unknown LUO Y A Foreign natural person 0.27%756,620 0 Unknow
28、n LIU LIAO YUAN Foreign natural person 0.26%734,200 0 Unknown Semi-annual Report 2008 6Particulars about shares held by the top ten shareholders of unrestricted shares Name of shareholder Amount of unrestricted shares held Type of share SEG(HONG KONG)CO.,LTD.16,569,560 Domestically listed foreign sh
29、are GOOD HOPE CORNER INVESTMENTS LT D 13,900,000 Domestically listed foreign share HE HUAN HAO 1,322,981 RMB common share REN JUN DEVELOPMENT CO.,LTD.1,200,000 Domestically listed foreign share WANG ZHI HAI 1,106,369 RMB common share BINGHUA LIU 876,213 Domestically listed foreign share WU WEI MIN 8
30、70,500 RMB common share LUO Y A 756,620 Domestically listed foreign share LIU LIAO YYUAN 734,200 Domestically listed foreign share SHEN LING 722,585 RMB common share Explanation on associated relationship among the aforesaid shareholders or consistent action Among the top ten shareholders,Wuhan Zhon
31、gheng 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 for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies.The Company neither knew whet
32、her 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 Shareholder Equity Changes of Listed Companies.III.The amount and sale restriction condition of shares held by the top te
33、n restricted shareholders No.Name of restricted shareholders Amount of restricted shares held Date of being listed for transactions Amount of newly added shares being listed for transactions Restriction condition1 Wuhan Zhongheng New Science&Technology Industrial Group Co.,Ltd.116,489,894 May 18,201
34、0 0 Promising that the non-tradable shares of the Company held by it will not be listed for transaction within 36 months since the date of acquiring circulating right.4.Change of the controlling shareholder of the Company The controlling shareholder of the Company Wuhan Zhongheng New Science&Technol
35、ogy Industrial Group Co.,Ltd.(Hereinafter refers to Wuhan Zhongheng Group),the actural controller is Semi-annual Report 2008 7Mr.Li Zhongqiu,and did not change in the report period.III.Particulars about Directors,Supervisors and Senior Executives I.Changes in shares held by directors,supervisors,and
36、 senior executives Directors,supervisors,and senior executives of the Company did not hold the shares of the Company.II.Changes of the directors,supervisors,and senior executives of the Company in the report period.In June,2008,with the elections in the 3rd extraordinary meeting of the board of dire
37、ctors of the Company in 2008 and 2007 Annual Shareholders General Meeting,Mr.Li Dingan was supplemented to be the Independent Director of the 6th board of the directors of the Company.Details could be available in the public notices dated Jun 7th and 28th of 2008.IV.Report of Board of Directors I.Op
38、eration and management of the Company in the report period In the first half year of 2008,the operation of main business was similar with that of the same period of last year,with the loss of RMB 2.5 million,including:Baolilong business created net profit RMB 1,460,000 for the Company due to in mids
39、eason of production and sale;Shenzhen plastic injection business lost RMB 1,830,000 in the report period due to lack of steady order source;Wuhan injection molding business which was purchased from holding sharedholders in June gained profit RMB 730,000,which relaxed the effect of operation loss in
40、Shenzhen plastic injection business;For developing LCD entire machine business,it was mainly focused on the large order from customer such as Foxcon,which raised operating income greatly.However,due to the great increasing orders,capacity was insufficient and cost for human resources was rising,thus
41、 effect of scale did not appear.A loss of RMB 0.2 million was made in the report period;The operation of printed circuit business was in serious condition,faced many difficulties,there were problems such as low efficiency,high cost and weak management,old equipment,and reconstruction of factory,impr
42、oving management needing input and time,therefore,it lost RMB 6.5 million,increased about 3 million year-on-year,which surpassed the expectation;While the operation of the main profit source of the Companyproperty lease was steady,leasing rate reached 98.74%,leasing income was RMB 17.38 million,leas
43、ing profit was RMB 14.25 million,and recovery rate was about 99%.II.Analysis on main business operation and financial condition(I)Scope and operation of main business The main operation of the Company focuses on the industry of electronic products,including the production and sales of circuit boards
44、 and plastic injection hardware and LCD whole machine business.The sales of products of the Company focus on the area of South China,Southwest and Hong Kong.Details could be available in the following statement:Semi-annual Report 2008 8 Unit:RMB Industry Income from operations Cost of operations Gro
45、ss profit ratio(%)Increase/decrease in income from operations over the last year(%)Increase/decrease in cost of operations over the last year(%)Increase/decrease in gross profit ratio over the last year(%)Plastic injection hardware 3,221,357.57 3,976,683.25-23.45-11.61 2.83 Decreased 14.44 percentag
46、e pointsCircuit boards 20,710,905.92 25,272,028.80-22.02-31.97-22.89 Decreased 9.08 percentage pointsLCD 28,592,565.52 27,844,240.90 2.62 124.52 121.98 Increased 2.54 percentage pointsTotal 52,524,829.0157,092,952.95-8.7 12.17 16.07 Decreased 3.90 percentage points Area Income from operation Increas
47、e/decrease in income from operations over the last year(%)South China 17,837,721.21-48.16%Southwest 8,592,193.69 31.99%Hong Kong 26,094,914.11 215.69%(II)Simple analysis on finanical condition 1.Changes of main financial index of the Company in the report period Unit:RMB Item Amount in the period Am
48、ount in the same period of last year Increase or decrease(%)Operation income 72,721,200.02 67,894,925.19 7.11Operation profit-4,320,768.46-8,082,915.16 48.19Net profit attributable to shareholders of the Company-2,503,393.28-2,275,256.07-10.03Net increase amount of cash and cahs equivalents 29,543,7
49、82.07-8,965,980.93 229.51Item Amount in the period Amount in the same period of last year Increase or decrease(%)Total assets 499,276,250.33 373,957,038.94 33.51Equity attributable to owners of parent company 239,696,807.32 242,200,200.60-1.03 The analysis on reasons of changes in main financial ind
50、ex of the Company in the report period:(1)The main reason for great increase in operation income year-on-year:the order of LCD in the period increased year-on-year,and the income of LCD greatly increased;operation pr ofit of Baolilong business was RMB 1,458,496.45,while there was no this business in
