SHENZHEN ZHONGHENG HUAFA CO., LTD.
SEMI-ANNUAL REPORT 2018
August 2018
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to asthe Company) hereby confirm that there are no any fictitious statements,misleading statements, or important omissions carried in this report, and shalltake all responsibilities, individual and/or joint, for the reality, accuracy andcompletion of the whole contents.
Li Zhongqiu, Principal of the Company, Yang Bin, person in charger ofaccounting works and Wu Aijie, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of 2018Semi-Annual Report is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
Concerning the forward-looking statements with future planning involved in theReport, they do not constitute a substantial commitment for investors. Majorityinvestors are advised to exercise caution of investment risks.Risks factors are being well-described in the Report, please found more inrelevant content.The Company has no plan of cash dividends carried out, bonus issued andcapitalizing of common reserves either.
Contents
Semi-annual Report 2018 ...... 2
Section I Important Notice and Paraphrase ...... 5
Section II Company Profile and Main Finnaical Indexes ...... 8
Section III Summary of Company Business ...... 9
Section IV Discussion and Analysis of Operation ...... 15
Section V Important Events ...... 28
Section VI Changes in shares and particular about shareholders ...... 32
Section VII Preferred Stock ...... 33
Section VIII Particulars about Directors, Supervisors and Senior Executives ...... 34
Section IX Corporate Bonds ...... 35
Section X Financial Report ...... 128Section XI Documents Available for Reference ...............................................................................
Paraphrase
Items | Refers to | Contents |
Company, Shen Huafa | Refers to | SHENZHEN ZHONGHENG HUAFA CO., LTD. |
Hengfa Technology | Refers to | Wuhan Hengfa Technology Co., Ltd. |
Huafa Property | Refers to | Shenzhen Zhongheng Huafa Property Co., Ltd |
Huafa Lease | Refers to | Shenzhen Huafa Property Lease Management Co., Ltd |
Huafa Trade | Refers to | Wuhan Zhongheng Huafa Trade Co., Ltd. |
Wuhan Zhongheng Group | Refers to | Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. |
HK Yutian | Refers to | Hong Kong Yutian International Investment Co., Ltd. |
Hengsheng Photoelectricity | Refers to | Wuhan Hengsheng Photoelectricity Industry Co., Ltd. |
Hengsheng Yutian | Refers to | Wuhan Hengsheng Yutian Industrial Co., Ltd. |
Yutian Henghua | Refers to | Shenzhen Yutian Henghua Co., Ltd. |
Huafa Hengtian | Refers to | Shenzhen Huafa Hengtian Co., Ltd. |
Huafa Hengtai | Refers to | Shenzhen Huafa Hengtai Co., Ltd. |
Shenzhen Vanke | Refers to | Shenzhen Vanke Real Estate Co., Ltd. |
Vanke Guangming | Refers to | Shenzhen Vanke Guangming Real Estate Development Co., Ltd |
Section II Company Profile and Main Finnaical Indexes
I. Company profile
Short form of the stock | Shen Huafa A, Shen Huafa B | Stock code | 000020, 200020 |
Short form of the stock after changed (if applicable) | N/A | ||
Stock exchange for listing | Shenzhen Stock Exchange | ||
Name of the Company (in Chinese) | 深圳中恒华发股份有限公司 | ||
Short form of the Company (in Chinese) | 深华发 | ||
Foreign name of the Company (if applicable) | SHENZHEN ZHONGHENG HUAFA CO., LTD. | ||
Abbr. of the foreign name (if applicable) | N/A | ||
Legal representative | Li Zhongqiu |
II. Person/Way to contact
Secretary of the Board | Rep. of security affairs | |
Name | Yang Bin | Niu Zhuo |
Contact add. | 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen | 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen |
Tel. | 0755-86360201 | 0755-86360201 |
Fax. | 0755-86360206 | 0755-86360206 |
hwafainvestor@126.com.cn | hwafainvestor@126.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2017
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2017
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period | Same period last year | Changes over last year (+,-) | |
Operating income (RMB) | 340,984,843.24 | 439,480,144.17 | -22.41% |
Net profit attributable to shareholders of the listed company(RMB) | 2,793,133.60 | 2,146,472.00 | 30.13% |
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) | 2,053,467.02 | 1,477,201.29 | 39.01% |
Net cash flow arising from operating activities(RMB) | -26,671,325.63 | -35,397,366.92 | 24.65% |
Basic earnings per share (RMB/Share) | 0.0099 | 0.0076 | 30.26% |
Diluted earnings per share (RMB/Share) | 0.0099 | 0.0076 | 30.26% |
Return on Equity | 0.87% | 0.67% | 上升0.2个百分点 |
Period-end | Period-end of last year | Changes over period-end of last year(+,-) | |
Total assets (RMB) | 593,599,038.57 | 629,762,731.38 | -5.74% |
Net assets attributable to shareholder of listed company (RMB) | 323,466,111.62 | 320,672,978.02 | 0.87% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -105,779.36 | |
Governmental 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) | 771,800.00 | |
Gains/losses from entrusted investment or assets management | 245,679.10 | |
Other non-operating income and expenditure except for the aforementioned items | -56,944.69 | |
Less: Impact on income tax | 115,088.47 | |
Total | 739,666.58 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists ofextraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities tothe Public --- Extraordinary Profit/loss
Section III Summary of Company Business
I. Main businesses of the company in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industryNo
After years of development, the company has gradually formed two main businesses in industry and propertymanagement. Among them, the industrial business mainly includes injection molding, POLYLON (light-weightpackaging materials), and complete machine production and sales of liquid crystal display, property managementbusiness is mainly the lease of its own property.
II. Major changes in main assets
1. Major changes in main assets
Major assets | Note of major changes |
Equity assets | N/A |
Fixed assets | N/A |
Intangible assets | N/A |
Construction in progress | N/A |
2. Main overseas assets
□ Applicable √ Not applicable
III. Core competitiveness analysis
Whether the company needs to comply with the disclosure requirements of the particular industryNoAll industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010 Shenzhen urban upgradeplanning. In the future, development and operation of self-owned land resources would become the income source of the Company
on a long-term and stable basis.
Section IV. Discussion and Analysis of Operation
1. Introduction
In the first half of 2018, due to the influence of the international and domestic environment, the home appliance industry had somegrowth but the power was insufficient, the production and assembly of liquid crystal displays, injection-molded parts and foam partsare traditional manufacturing industries which have already entered a mature stage and the demand have reached saturation, thecompany overcame difficulties and responded positively, through the adjustment of product structure, the operating profit has beenguaranteed to increase while the operating income has slightly decreased.During the reporting period, the Company achievedoperation reveue of 340.98 million Yuan with a y-o-y declined of 22.41%; operation profit comes to 2.54 million Yuan with 30.73%up from a year earlier; net profit amounted to 2.79 million Yuan, an increased of 30.13% on a y-o-y basis. In first half year, operationrevenue from industry prodcution has 323.37 million Yuan in total, a 22.84% declined from a year earlier, operation profit comes to5.32 million Yuan with a y-o-y growth of 148.14%; the revenue earnes from propety leasing in first half year comes to 16.96 millionYuan, a 12.43% declined over that of last year, and operating profit comes to (2.16) million Yuan with 1.92 million Yuan declined
from a year earlier.
II. Main business analysis
See the “I-Introduction” in “Discussion and Analysis of Operation”
Change of main financial data on a y-o-y basis
In RMB
Current period | Same period last year | y-o-y changes | Reasons | |
Operating revenue | 340,984,843.24 | 439,480,144.17 | -22.41% | |
Operating cost | 302,582,979.44 | 398,913,925.08 | -24.15% | |
Sales expenses | 8,433,363.31 | 7,363,051.86 | 14.54% | |
Administrative expenses | 20,400,985.42 | 24,085,956.74 | -15.30% | |
Financial expenses | 5,447,070.22 | 4,914,890.46 | 10.83% | |
Income tax expenses | 463,831.41 | 723,746.91 | -35.91% | Approved high-tech enterprise in November 2017, the income tax rate declined |
Net cash flow from operating activities | -26,671,325.63 | -35,397,366.92 | -24.65% | |
Net cash flow from investment activities | -6,545,541.50 | -3,903,702.73 | -67.68% | Investment for new workshop, and renew the aged production equipment |
Net cash flow from | -21,012,832.62 | 7,520,619.22 | -379.40% | Bank loans paid in the |
financing activities | period | |||
Net increase of cash and cash equivalent | -54,379,579.55 | -32,170,554.64 | -69.04% | Bank loans paid in the period |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting periodConstitution of main business
In RMB
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 | |
According to industries | ||||||
Display | 124,089,200.92 | 116,216,327.90 | 6.34% | -49.18% | -51.29% | 4.06% |
Plastic injection hardware | 152,332,605.92 | 140,589,037.08 | 7.71% | 15.41% | 16.81% | -1.11% |
Foam | 41,800,980.14 | 38,233,351.86 | 8.53% | -0.69% | 1.96% | -2.38% |
According to products | ||||||
Display | 124,089,200.92 | 116,216,327.90 | 6.34% | -49.18% | -51.29% | 4.06% |
Plastic injection hardware | 152,332,605.92 | 140,589,037.08 | 7.71% | 15.41% | 16.81% | -1.11% |
Foam | 41,800,980.14 | 38,233,351.86 | 8.53% | -0.69% | 1.96% | -2.38% |
According to region | ||||||
Hong Kong | 77,232,679.30 | 73,672,517.63 | 4.61% | -46.95% | -48.18% | 2.27% |
Central China | 435,123,693.74 | 400,188,588.15 | 8.03% | 59.58% | 57.39% | 1.28% |
III. Analysis of the non-main business
□Applicable √ Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
Period-end | Period-end last year | Ratio changes | Notes of major changes | |||
Amount | Ratio in | Amount | Ratio in |
total assets | total assets | |||||
Monetary fund | 31,174,927.49 | 5.25% | 65,403,374.30 | 10.55% | -5.30% | |
Account receivable | 167,657,397.69 | 28.24% | 182,542,130.75 | 29.45% | -1.21% | |
Inventory | 55,600,129.94 | 9.37% | 37,519,314.34 | 6.05% | 3.32% | |
Investment real estate | 51,546,044.30 | 8.68% | 29,404,574.44 | 4.74% | 3.94% | |
Long-term equity investment | 0.00% | 0.00% | 0.00% | |||
Fix assets | 84,346,192.69 | 14.21% | 108,018,926.67 | 17.43% | -3.22% | |
Construction in process | 1,179,824.87 | 0.20% | 654,356.00 | 0.11% | 0.09% | |
Short-term loans | 152,275,976.01 | 25.65% | 85,012,392.00 | 13.72% | 11.93% | |
Long-term loans | 0.00% | 50,850,000.00 | 8.20% | -8.20% |
2. Assets and liability measured by fair value
□ Applicable √Not applicable
3. Assets right restriction till end of reporting period
Item | Ending book value | Restriction reasons |
Monetary Fund | 7,335,941.28 | Bank acceptance bill |
Notes receivable | 8,332,469.80 | Pledge |
Accounts receivable | 8,831,544.63 | Pledge |
Investment real estate | 39,197,344.30 | Bank loan secured |
Fixed assets | 43,965,447.66 | Bank loan secured |
Liquidation of fixed assets | 92,857,471.69 | Court closure |
Intangible assets | 37,605,499.26 | Bank loan secured |
Total | 238,125,718.62 | -- |
V. Investment analysis
1. Overall situation
□ Applicable √Not applicable
2. The major equity investment obtained in the reporting period
□ Applicable √Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment(1) Securities investment
□ Applicable √Not applicable
The Company has no securities investment in the Period.
(2) Derivative investment
□ Applicable √Not applicable
The Company has no derivatives investment in the Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √Not applicable
VII. Analysis of main holding company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name | Type | Main business | Register capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
Hengfa Technology Company | Subsidiary | R&D, production and sales of the products as well as import & export business etc. | 181643111 | 450,381,741.80 | 220,913,552.90 | 323,374,705.00 | 5,318,389.86 | 5,149,906.59 |
Huafa Property Company | Subsidiary | Leasing and management of own property | 1000000 | 413,406.43 | -2,319,074.38 | 649,049.51 | -511,272.63 | -511,272.63 |
Huafa Lease Company | Subsidiary | Leasing and management of own property | 1000000 | 1,900,692.20 | -5,026,990.71 | 0.00 | 0.00 | 0.00 |
Huafa Hengtian Company | Leasing and management of own property | 1000000 | 996,582.86 | 996,582.86 | 0.00 | -637.34 | -637.34 | |
Huafa Hengtai Company | Subsidiary | Leasing and management of own property | 1000000 | 997,314.02 | 997,314.02 | 0.00 | -636.71 | -636.71 |
Particular about subsidiaries obtained or disposed in report period
□Applicable √ Not applicable
ExplanationNil
VIII. Structured vehicle controlled by the Company
□ Applicable √Not applicable
IX. Prediction of business performance from January – September 2018
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or thewarning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
1. Operational risks of industrial business: industrial restructuring, fluctuations in raw material prices, decline inmarket demand, and frustration of new product promotion.Countermeasures: continue to open up the market, maintain the existing customers, positively develop newcustomers, and continue to improve production efficiency;2. Financial risks: large demands for funds, substantial increase or decrease in financial costs caused by exchangerate fluctuations, and bank credit constraints caused by changes in financial costs and so on.Countermeasures: pay close attention to macroeconomic policy trends, actively expand the financing channels,establish a virtuous circle mechanism for funds, improve the service efficiency, and use financial instruments toavoid exchange rate risks.
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
Annual General Meeting of 2017 | AGM | 51.64% | 2018-05-17 | 2018-05-18 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1204953591?announceTime=2018-05-18 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
II. Profit distribution plan in the period and capitalizing of common reserves plan
□ Applicable √Not applicable
The Company plans not to distribute cash dividend and bonus for the semi-annual, and no capitalizing of common reserves either.
III. Commitments that the actual controller, shareholders, related party, offeror and committed party asthe Company etc. have fulfilled during the reporting period and have not yet fulfilled by the end ofreporting period
□Applicable √ Not applicable
The Company has no commitments that the actual controller, shareholders, related party, offeror and committed party as theCompany etc. have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report has been audited or not
□Yes √no
Un-audited
V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √Not applicable
VII. Bankruptcy reorganization
□ Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period
VIII. Lawsuits
Significant lawsuits and arbitrations
√Applicable □Not applicable
The basic situation of litigation (Arbitration) | Amount of money involved (in 10 thousand Yuan) | Predicted liabilities (Y/N) | Advances in litigation (Arbitration) | The results and effects of litigation (Arbitration) | Execution of the litigation (Arbitration) | Disclosure date | Disclosure index |
In September 2016, Wuhan Zhongheng Group Co., Ltd. and the Company and Shenzhen Vanke were applied for arbitration due to the dispute case of “Contract for the Cooperative Operation of the Old Projects at Huafa Industrial Park, Gongming Street, Guangming New District”. | 46,460 | N | Made a ruling on 16 August 2017; The Company and controlling shareholder propose request for ruling removal in Feb. 2018 | Found more in announcement of the Company | The court dismissed the claim | 2018-08-25 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1205326846?announceTime=2018-08-25 |
In March 2016, Huafa Property suit against the Shenzhen Jifang | 1,416.67 | N | In November 2016, the | Court decision as Jifang Company has to paid 27.9023 | Case closed and collected the site in | 2016-11-08 | http://www.cninfo.com.cn/cninfo-new |
Investment Co., Ltd. for site occupation, without rental, and utilities paid for a long-time | Company win in the ruling judged by Shenzhen Arbitration Commission | million Yuan (including rental, administrative fee, compensation, penalty, lawyer’s fee and arbitration fees) in total for the Company | May 2018 | /disclosure/szse_main/bulletin_detail/true/1202817664?announceTime=2016-11-08 | |||
In March 2016, the Company and Huafa Science & Technology suit against the follow companies, including Shenzhen Huayongxing Environmental Technology Co., Ltd., Shenzhen Guangyong Breadboard Co., Ltd., Shenzhen Mingyi Electronic Co., Ltd., Shenzhen Ouruilai Technology Co., Ltd and Shenzhen Kangzhengxin Technology Co., Ltd., for arrears of rent. and refuse to move the site, forcibly occupied switch board room and other power unit | 1,964.92 | N | The first instance decision has been issued, second instance still in trial | The second instance maintains the judgment of the first | In publication of judgment | 2016-09-14 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202702423?announceTime=2016-09-14 07:41 |
under the name of the Company | |||||||
The Company and Huafa Property suit against Shenzhen Jifang investment Co., Ltd. and Shenzhen Jianianhua Foreign Trade Clothing City Co., Ltd. for refusing to paid the rents and administrative fee without justified reasons | 73.38 | N | 2018.3.15- Second instance decide the Company to win; 2018.3.26- Application for enforcement | Verdict | Case closed | 2016-09-14 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202702423?announceTime=2016-09-14 07:41 |
In March 2016, the Company and Huafa Property suit against Shenzhen Huayongxing Environmental Technology Co., Ltd., and Shenzhen Yidaxin Technology Co., Ltd. for contract violation and refuse to move the site | 947.26 | N | 2018.3.15- Second instance decide the Company to win, and waiting the enforcement application | Verdict | Applied in April | 2016-09-14 | http://www.cninfo.com.cn/cninfo-new/disclosure/szse_main/bulletin_detail/true/1202702423?announceTime=2016-09-14 07:41 |
Other lawsuits
□Applicable √ Not applicable
IX. Penalty and rectification
□Applicable √ Not applicable
The Company has no penalty and rectification in the period
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √Not applicable
XI. Implementation of the company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √Not applicable
The Company had no stock incentive plan, employee stock ownership plan or other employee incentive in the reporting period.
XII. Major related transaction
1. Related transaction with routine operation concerned
√Applicable □ Not applicable
Related party | Relationship | Type of related transaction | Content of related transaction | Pricing principle | Related transaction price | Related transaction amount (in 10 thousand Yuan) | Proportion in similar transactions | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Clearing form for related transaction | Available similar market price | Date of disclosure | Index of disclosure |
HK Yutian | Sharing the same controlling shareholder | Purchase | Purchasing LCD monitors | Synchronized with the market | 5,792.22 | 5,792.22 | 48.53% | 29,293.65 | N | Telegraphic transfer | —— | 2018-08-24 | http://www.cninfo.com.cn/finalpage/2018-08-24/1203374588.PDF |
Hengsheng Photoelectri | Sharing the same contro | Purchase | Purchasing LCD monit | Confirmed with 1% of | 2,732.35 | 2,732.35 | 22.89% | 22,783.95 | N | Telegraphic transfer | The average marke | 2018-08-24 | http://www.cnin |
city | lling shareholder | ors | current market average price in principle, and refer to both their bargaining power | t price refers to the price of same specifications which is searched from through the world famous professional market survey company website http://www.witsview.com recognized authority in the industry and LCD professional | fo.com.cn/finalpage/2018-08-24/1203374588.PDF |
market survey company website http://www.witsview.com | |||||||||||||
Hengsheng Photoelectricity | Sharing the same controlling shareholder | Purchase | Purchasing LCD monitors | According to the order price, deducted 1 Yuan each for operation charge | 1,754.27 | 1,754.27 | 14.70% | 16,274.25 | N | Telegraphic transfer | —— | 2018-08-24 | http://www.cninfo.com.cn/finalpage/2018-08-24/1203374588.PDF |
HK Yutian | Sharing the same controlling shareholder | Sales | Sales LCD overall monitor machine set | According to the customer sales order price sure | 6,323.19 | 6,323.19 | 49.68% | 38,146.84 | N | Telegraphic transfer | —— | 2018-08-24 | http://www.cninfo.com.cn/finalpage/2018-08-24/12033745 |
88.PDF | ||||||||||
Total | -- | -- | 16,602.03 | -- | 106,498.69 | -- | -- | -- | -- | -- |
Detail of sales return with major amount involved | N/A | |||||||||
Report the actual implementation of the daily related transactions which were projected about their total amount by types during the reporting period(if applicable) | In the reporting, Hengfa Technology purchased LCD from HK Yutian with US$ 9.0679 million approximately, 20.15% of the annual amount predicted at the beginning of the year; purchased LCD from Hengsheng Photoelectricity with US $ 4.1301 million approximately, 11.8% of the annual amount predicted at the beginning of the year; purchasing LCD from Hengsheng Photoelectricity with about US $ 2.6517 million, 10.61% of the annual amount predicted at the beginning of the year; sold LCD whole machine to HK Yutian with US $ 9.9215 million approximately, 16.54% of the annual amount predicted at the beginning of the year. | |||||||||
Reasons for major differences between trading price and market reference price (if applicable) | Not applicable |
2. Related transactions by assets acquisition and sold
□Applicable √ Not applicable
No above mentioned transactions occurred
3. Main related transactions of mutual investment outside
□ Applicable √Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √Not applicable
No contact of related credit and debt in the period
5. Other related transactions
□ Applicable √Not applicable
The Company had no other significant related transactions in reporting period.
XIII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing(1) Trusteeship
□ Applicable √Not applicable
No trusteeship for the Company in reporting period
(2) Contract
□ Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √Not applicable
No leasing for the Company in reporting period
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
Guarantee of the Company and the subsidiaries | ||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
Wuhan Hengfa Technology Co., Ltd. | 2018-04-24 | 30,000 | 3,877.6 | Joint liability guarantee | One year | N | Y | |
Total amount of approving guarantee for subsidiaries in report period (B1) | 30,000 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 6,267.12 | |||||
Total amount of approved guarantee for subsidiaries at the end of reporting period | 30,000 | Total balance of actual guarantee for subsidiaries at the end of reporting period | 3,877.6 |
(B3) | (B4) | ||||||||
Guarantee of the subsidiaries for the subsidiaries | |||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party | |
Total amount of guarantee of the Company( total of three abovementioned guarantee) | |||||||||
Total amount of approving guarantee in report period (A1+B1+C1) | 30,000 | Total amount of actual occurred guarantee in report period (A2+B2+C3) | 6,267.12 | ||||||
Total amount of approved guarantee at the end of report period (A3+B3+C2) | 30,000 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 3,877.6 | ||||||
The proportion of the total amount of actually guarantee in the net assets of the Company(that is A4+ B4+C4) | 11.99% | ||||||||
Including: | |||||||||
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | N/A |
Explanation on compound guarantee
(2) Guarantee outside against the regulation
□Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable √Not applicable
No other material contracts for the Company in reporting period.
XV. Social responsibility
1. Material environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection departmentNot applicable
No
2.Execution of social responsibility of targeted poverty alleviation(1) targeted poverty alleviation(2) Summary of targeted poverty alleviation(3) Performance of the targeted poverty alleviation
Index | Unit of measure | Quantity /implementation |
I. Overall condition | —— | —— |
II. Poverty alleviation by items | —— | —— |
1.Industry development | —— | —— |
2.Shift employment | —— | —— |
3. Relocating in other places | —— | —— |
4. Education | —— | —— |
5. Health | —— | —— |
6.Ecological protection | —— | —— |
7. Reveal all the details | —— | —— |
8. Society | —— | —— |
9.Other | —— | —— |
III. Award received (content and grade) | —— | —— |
(4) Follow-up targeted poverty alleviation scheme
XVI Explanation on other significant events
√Applicable □ Not applicable
(i) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details werereferred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of theCompany (namely two parcel of industrial 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 wereA627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of planfor 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project andjoint 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 firstextraordinary 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 atGongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Group
shall obtain the corresponding compensatory consideration for removal from the respectively owned project plotsand the respectively contributed and constructed above-ground buildings before the land development, it isestimated that the compensatory consideration obtained by the Company accounts for 50.5% of the totalconsideration 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 held
on September 11, 2015 have considered and adopted the “Proposal on the project promotion and implementationof 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 urbanrenewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”,“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 Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “WuhanZhongheng Group”), Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), andShenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA,Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of urban renewal project ofthe updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” against the Company
and Wuhan Zhongheng Group. The arbitration court holds hearings on 12 November 2016 and 13 May 2017.Shenzhen Court of International Arbitration (SCIA) has given a ruling in August 2017, although most of thearbitration claims proposed by Shenzhen Vanke are rejected by arbitration court, the arbitration procedures andso-called cognizance of fact of contract breach still has problems in arbitration. The results have damaged thelegitimate rights and interest of the Company, and we have putting forward the application for dismantling in
February 2018 to the Shenzhen Intermediate People’s Court. The Court dismissed the claim . Progress of the case
found more in the Notices released on Juchao website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16
Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017 ,9 Feb. 2018 and 25
August 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to ChinaMerchants Securities Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred therepurchase business day to 30 June 2017. on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 sharesheld to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. The above mentionedshares are deferred for repurchase of stock pledge by Wuhan Zhongheng Group; pledge expired on 31 December2017. The trading day for repurchase put off to the date when pledge actually removed. Till end of this periodreleased, controlling shareholder still not removed the pledge and the Company has apply by letter, relevantNotice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice releasedon Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.
(iii) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accountingfor 41.14% of total share capital. The above shares were judicially sealed on 27 September 2016, shares freezefrom 27 September 2016 to 26 September 2018. Details are set out in the announcement published at Juchaoinformation website (www.cninfo.com.cn) on 27 October 2016.
(iv) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as"Jifang Investment") signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement onLeasing Contract", which were canceled on February 5, 2016. As Jifang Investment occupied the site, anddefaulted rent, management fee and water and electricity bills in the long term, in order to safeguard the legitimaterights and interests, Huafa Property submitted a request for arbitration to Shenzhen Arbitration Commission onMarch 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration Commission inNovember 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at
www.cninfo.com.cn by the company on 8 November 2016. The sites are collected in May 2018
(v) Commitments of Major shareholder to Increase ShareholdingOn November 20, and November 28, 2017, the controlling shareholders respectively made commitments to
increase the shareholding of 2.83 million shares of the company’s B Shares and no less than 2.8 million shares ofthe company’s A Shares, with a commitment period of 6 months, and later, controlling shareholder appliedextending 6 months for commitment period. As of the disclosure date of this report, it’s still in the commitment
fulfillment period, and the commitment has not been fulfilled.
(vi) Mr. Zhang Guangliu, the company’s director and vice president, has applied for resignation from thecompany’s director, vice president and special committee member under the board of directors due to a jobtransfer. The new director’s by-election is still in progress, at present, the company’s board of directors has 5
members, which conforms to the legal minimum number of people.
XVII. Significant event of subsidiary of the Company
□ Applicable √Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
II. Unrestricted shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
1. RMB Ordinary shares | 181,165,391 | 63.98% | 0 | 0 | 0 | 0 | 0 | 181,165,391 | 63.98% |
2. Domestically listed foreign shares | 101,995,836 | 36.02% | 0 | 0 | 0 | 0 | 0 | 101,995,836 | 36.02% |
III. Total shares | 283,161,227 | 100.00% | 0 | 0 | 0 | 0 | 0 | 283,161,227 | 100.00% |
Reasons for share changed
□Applicable √Not applicable
Approval of share changed
□ Applicable √Not applicable
Ownership transfer of share changed
□ Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √Not applicable
2. Changes of restricted shares
□ Applicable √Not applicable
II. Securities issuance and listing
□ Applicable √Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
In Share
Total common stock shareholders in reporting period-end | 27,697 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (found in note8) | 0 | |||||||
Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total common shareholders at the end of report period | Changes in report period | Amount of restricted common shares held | Amount of un-restricted common shares held | Number of share pledged/frozen | |||
State of share | Amount | |||||||||
Wuhan Zhongheng Group | Domestic non-state-owned legal person | 41.14% | 11,648,989 | 0 | 0 | 116,489,894 | Pledged | 11,648,989 | ||
Frozen | 11,648,989 | |||||||||
SEG (HONG KONG) CO., LTD. | Overseas legal person | 5.85% | 16,569,560 | 0 | 0 | 16,569,560 | Pledged | 0 | ||
Frozen | 0 | |||||||||
GOOD HOPE CORNER INVESTMENTS LTD | Overseas legal person | 4.49% | 12,700,000 | 0 | 0 | 12,700,000 | Pledged | 0 | ||
Frozen | 0 | |||||||||
Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.89% | 5,355,249 | 0 | 5,355,249 | Pledged | 0 | |||
Frozen | 0 | |||||||||
Guoyuan Securities Brokerage (Hong Kong) Co., Ltd. | Overseas legal person | 1.35% | 3,820,617 | 0 | 3,820,617 | Pledged | 0 | |||
Frozen | 0 | |||||||||
LI SHERYN ZHAN MING | Overseas nature person | 0.37% | 1,038,300 | 0 | 1,038,300 | Pledged | 0 | |||
Frozen | 0 | |||||||||
Zhong Jiachao | Domestic nature person | 0.34% | 959,174 | 0 | 959,174 | Pledged | 0 | |||
Frozen | 0 | |||||||||
Li Senzhuang | Domestic nature | 0.34% | 956,600 | 0 | 956,600 | Pledged | 0 |
person | Frozen | 0 | ||||||||
Han Yaming | Domestic nature person | 0.31% | 864,200 | 0 | 864,200 | Pledged | 0 | |||
Frozen | 0 | |||||||||
BINGHUA LIU | Overseas nature person | 0.30% | 840,313 | 0 | 840,313 | Pledged | 0 | |||
Frozen | 0 | |||||||||
Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note 3) | N/A | |||||||||
Explanation on associated relationship among the aforesaid shareholders | Among the top ten shareholders, Wuhan Zhongheng Group 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 whether there exists associated relationship among the other tradable shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. | |||||||||
Particular about top ten shareholders with un-restrict common shares held | ||||||||||
Shareholders’ name | Amount of un-restrict common shares held at Period-end | Type of shares | ||||||||
Type | Amount | |||||||||
Wuhan Zhongheng Group | 11,648,989 | RMB common share | ||||||||
SEG (HONG KONG) CO., LTD. | 16,569,560 | Domestically listed foreign shares | ||||||||
GOOD HOPE CORNER INVESTMENTS LTD | 12,700,000 | Domestically listed foreign shares | ||||||||
Changjiang Securities Brokerage (Hong Kong) Co., Ltd. | 5,355,249 | Domestically listed foreign shares | ||||||||
Guoyuan Securities Brokerage (Hong Kong) Co., Ltd. | 3,820,617 | Domestically listed foreign shares | ||||||||
LI SHERYN ZHAN MING | 1,038,300 | Domestically listed foreign shares | ||||||||
Zhong Jiachao | 959,174 | RMB common share | ||||||||
Li Senzhuang | 956,600 | Domestically |
listed foreign shares | |||
Han Yaming | 864,200 | Domestically listed foreign shares | |
BINGHUA LIU | 840,313 | Domestically listed foreign shares | |
Expiation on associated relationship or consistent actors within the top 10 un-restrict common shareholders and between top 10 un-restrict common shareholders and top 10 shareholders | Among the top ten unrestricted shareholders, the Company neither knew whether there exists associated relationship among the other tradable shareholders, nor they belong to consistent actors that are prescribed in Measures for the Administration of Disclosure of Shareholder Equity Changes of Listed Companies. Among the top ten shareholders, Wuhan Zhongheng Group 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. | ||
Explanation on top 10 common shareholders involving margin business (if applicable) (see note 4) | Among the top ten shareholders, Zhong Jiachao holds 959174 shares of the Company, of which, 591274 shares held by normal account, and 367900 shares held through credit security account |
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
IV. Change of controlling shareholder or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √Not applicable
The Company had no changes of controlling shareholders in reporting periodChanges of actual controller in reporting period
□ Applicable √Not applicable
No changes of actual controllers for the Company in reporting period.
Section VII. Preferred Stock
□ Applicable √Not applicable
The Company had no preferred stock in the Period.
Section VIII. Particulars about Directors, Supervisors and Senior
Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Found more in annual report 2017 for the changes of shares held by directors, supervisors and senior executives
II. Changes of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name | Title | Type | Date | Reasons |
Zhang Guangliu | Deputy president, director | Election | 2018-07-17 | Occupation mobility |
Section IX Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and withoutdue on the date when semi-annual report approved for released or fail to cash in full on due
No
Section X. Financial Report
I. Audit report
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited
II.Financial statement
Currency used in note of financial statement is RMB (Yuan)
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
2018-06-30
In RMB
Item | Closing balance | Opening balance |
Current assets: | ||
Monetary funds | 31,174,927.49 | 68,812,495.97 |
Settlement provisions | ||
Capital lent | ||
Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial liability | ||
Notes receivable | 24,212,827.29 | 64,778,266.65 |
Accounts receivable | 167,657,397.69 | 148,795,998.26 |
Accounts paid in advance | 24,345,708.97 | 943,328.01 |
Insurance receivable | ||
Reinsurance receivables | ||
Contract reserve of reinsurance receivable | ||
Interest receivable | ||
Dividend receivable | ||
Other receivables | 9,993,555.22 | 4,335,729.72 |
Purchase restituted finance asset |
Inventories | 55,600,129.94 | 60,387,021.65 |
Assets held for sale | ||
Non-current asset due within one year | ||
Other current assets | 46,253.01 | 52,310.51 |
Total current assets | 313,030,799.61 | 348,105,150.77 |
Non-current assets: | ||
Loans and payments on behalf | ||
Finance asset available for sales | ||
Held-to-maturity investment | ||
Long-term account receivable | ||
Long-term equity investment | ||
Investment real estate | 51,546,044.30 | 52,410,958.62 |
Fix assets | 84,346,192.69 | 83,619,842.39 |
Construction in progress | 1,179,824.87 | 654,356.00 |
Engineering material | ||
Disposal of fixed asset | 92,857,471.69 | 92,857,471.69 |
Productive biological asset | ||
Oil and gas asset | ||
Intangible assets | 42,561,503.06 | 43,307,316.37 |
Expense on Research and Development | ||
Goodwill | ||
Long-term expenses to be apportioned | 774,951.44 | 141,666.55 |
Deferred income tax asset | 7,302,250.91 | 6,731,168.99 |
Other non-current asset | 1,934,800.00 | |
Total non-current asset | 280,568,238.96 | 281,657,580.61 |
Total assets | 593,599,038.57 | 629,762,731.38 |
Current liabilities: | ||
Short-term loans | 152,275,976.01 | 166,620,264.81 |
Loan from central bank | ||
Absorbing deposit and interbank deposit | ||
Capital borrowed | ||
Financial liability measured by fair value and with variation reckoned into current gains/losses |
Derivative financial liability | ||
Notes payable | 15,635,598.71 | 17,810,270.28 |
Accounts payable | 60,514,300.33 | 84,004,870.73 |
Accounts received in advance | 261,102.28 | 278,128.18 |
Selling financial asset of repurchase | ||
Commission charge and commission payable | ||
Wage payable | 3,613,350.12 | 5,083,357.93 |
Taxes payable | 10,562,817.51 | 15,136,277.68 |
Interest payable | 136,176.72 | 164,895.80 |
Dividend payable | ||
Other accounts payable | 27,069,194.27 | 19,927,276.95 |
Reinsurance payables | ||
Insurance contract reserve | ||
Security trading of agency | ||
Security sales of agency | ||
Liability held for sale | ||
Non-current liabilities due within 1 year | ||
Other current liabilities | ||
Total current liabilities | 270,068,515.95 | 309,025,342.36 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Long-term account payable | ||
Long-term wages payable | ||
Special accounts payable | ||
Projected liabilities | 64,411.00 | 64,411.00 |
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 64,411.00 | 64,411.00 |
Total liabilities | 270,132,926.95 | 309,089,753.36 |
Owner’s equity: | ||
Share capital | 283,161,227.00 | 283,161,227.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 146,587,271.50 | 146,587,271.50 |
Less: Inventory shares | ||
Other comprehensive income | ||
Reasonable reserve | ||
Surplus public reserve | 77,391,593.25 | 77,391,593.25 |
Provision of general risk | ||
Retained profit | -183,673,980.13 | -186,467,113.73 |
Total owner’s equity attributable to parent company | 323,466,111.62 | 320,672,978.02 |
Minority interests | ||
Total owner’s equity | 323,466,111.62 | 320,672,978.02 |
Total liabilities and owner’s equity | 593,599,038.57 | 629,762,731.38 |
Legal representative: Li Zhongqiu Person in charge of accounting works: Yang BinPerson in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item | Closing balance | Opening balance |
Current assets: | ||
Monetary funds | 1,454,274.31 | 25,181,764.87 |
Financial assets measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial liability | ||
Notes receivable | ||
Accounts receivable | ||
Account paid in advance | 53,050.00 | |
Interest receivable | ||
Dividends receivable |
Other receivables | 103,872,467.02 | 99,922,143.84 |
Inventories | 14,806.50 | 14,806.50 |
Assets held for sale | ||
Non-current assets maturing within one year | ||
Other current assets | ||
Total current assets | 105,394,597.83 | 125,118,715.21 |
Non-current assets: | ||
Available-for-sale financial assets | ||
Held-to-maturity investments | ||
Long-term receivables | ||
Long-term equity investment | 186,608,900.00 | 186,608,900.00 |
Investment real estate | 26,978,905.02 | 27,583,299.22 |
Fix assets | 4,665,395.35 | 6,821,367.58 |
Construction in progress | 1,172,756.00 | 654,356.00 |
Project materials | ||
Disposal of fixed assets | 92,857,471.69 | 92,857,471.69 |
Productive biological assets | ||
Oil and natural gas assets | ||
Intangible assets | 4,771,127.82 | 4,843,600.68 |
Research and development costs | ||
Goodwill | ||
Long-term deferred expenses | 116,666.53 | 141,666.55 |
Deferred income tax assets | 8,091,847.20 | 7,519,546.71 |
Other non-current assets | ||
Total non-current assets | 325,263,069.61 | 327,030,208.43 |
Total assets | 430,657,667.44 | 452,148,923.64 |
Current liabilities: | ||
Short-term borrowings | 105,000,000.00 | 120,000,000.00 |
Financial liability measured by fair value and with variation reckoned into current gains/losses | ||
Derivative financial liability | ||
Notes payable |
Accounts payable | 9,740,367.33 | 10,745,840.16 |
Accounts received in advance | 44,810.00 | 67,210.00 |
Wage payable | 815,885.20 | 1,039,196.20 |
Taxes payable | 7,447,979.03 | 9,305,468.70 |
Interest payable | ||
Dividend payable | ||
Other accounts payable | 12,801,195.39 | 14,339,551.78 |
Liability held for sale | ||
Non-current liabilities due within 1 year | ||
Other current liabilities | ||
Total current liabilities | 135,850,236.95 | 155,497,266.84 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Long-term account payable | ||
Long-term wages payable | ||
Special accounts payable | ||
Projected liabilities | 64,411.00 | 64,411.00 |
Deferred income | ||
Deferred income tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 64,411.00 | 64,411.00 |
Total liabilities | 135,914,647.95 | 155,561,677.84 |
Owners’ equity: | ||
Share capita | 283,161,227.00 | 283,161,227.00 |
Other equity instrument | ||
Including: preferred stock | ||
Perpetual capital securities | ||
Capital public reserve | 146,587,271.50 | 146,587,271.50 |
Less: Inventory shares |
Other comprehensive income | ||
Reasonable reserve | ||
Surplus reserve | 77,391,593.25 | 77,391,593.25 |
Retained profit | -212,397,072.26 | -210,552,845.95 |
Total owner’s equity | 294,743,019.49 | 296,587,245.80 |
Total liabilities and owner’s equity | 430,657,667.44 | 452,148,923.64 |
3. Consolidated Profit Statement
In RMB
Item | Current Period | Last Period |
I. Total operating income | 340,984,843.24 | 439,480,144.17 |
Including: Operating income | 340,984,843.24 | 439,480,144.17 |
Interest income | ||
Insurance gained | ||
Commission charge and commission income | ||
II. Total operating cost | 338,582,633.28 | 437,502,286.20 |
Including: Operating cost | 302,582,979.44 | 398,913,925.08 |
Interest expense | ||
Commission charge and commission expense | ||
Cash surrender value | ||
Net amount of expense of compensation | ||
Net amount of withdrawal of insurance contract reserve | ||
Bonus expense of guarantee slip | ||
Reinsurance expense | ||
Taxes and surcharge | 1,712,293.39 | 2,317,887.45 |
Sales expenses | 8,433,363.31 | 7,363,051.86 |
Administration expenses | 20,400,985.42 | 24,085,956.74 |
Financial expenses | 5,447,070.22 | 4,914,890.46 |
Losses of devaluation of asset | 5,941.50 | -93,425.39 |
Add: Changing income of fair value(Loss is listed with “-”) |
Investment income (Loss is listed with “-”) | 245,679.10 | |
Including: Investment income on affiliated company and joint venture | ||
Exchange income (Loss is listed with “-”) | ||
Assets disposal income (Loss is listed with “-”) | -105,779.36 | -33,321.94 |
Other income | ||
III. Operating profit (Loss is listed with “-”) | 2,542,109.70 | 1,944,536.03 |
Add: Non-operating income | 887,662.07 | 925,733.76 |
Less: Non-operating expense | 172,806.76 | 50.88 |
IV. Total Profit (Loss is listed with “-”) | 3,256,965.01 | 2,870,218.91 |
Less: Income tax expense | 463,831.41 | 723,746.91 |
V. Net profit (Net loss is listed with “-”) | 2,793,133.60 | 2,146,472.00 |
(i) net profit from continuous operation (Net loss is listed with “-”) | 2,793,133.60 | 2,146,472.00 |
(ii) net profit from discontinued operation (Net loss is listed with “-”) | ||
Net profit attributable to owner’s of parent company | 2,793,133.60 | 2,146,472.00 |
Minority shareholders’ gains and losses | ||
VI. Net after-tax of other comprehensive income | ||
Net after-tax of other comprehensive income attributable to owners of parent company | ||
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
2. Share of the other |
comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
5. Translation differences arising on translation of foreign currency financial statements | ||
6. Other | ||
Net after-tax of other comprehensive income attributable to minority shareholders | ||
VII. Total comprehensive income | 2,793,133.60 | 2,146,472.00 |
Total comprehensive income attributable to owners of parent Company | 2,793,133.60 | 2,146,472.00 |
Total comprehensive income attributable to minority shareholders | ||
VIII. Earnings per share: | ||
(i) Basic earnings per share | 0.0099 | 0.0076 |
(ii) Diluted earnings per share | 0.0099 | 0.0076 |
Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, andrealized 0 Yuan at last period for combined party
Legal representative: Li Zhongqiu Person in charge of accounting works: Yang BinPerson in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company
In RMB
Item | Current Period | Last Period |
I. Operating income | 16,961,088.74 | 19,368,319.99 |
Less: Operating cost | 2,510,518.82 | 2,104,257.94 |
Taxes and surcharge | 585,014.62 | 1,295,896.25 |
Sales expenses | ||
Administration expenses | 11,134,855.37 | 13,448,031.17 |
Financial expenses | 4,888,654.05 | 2,847,630.46 |
Losses of devaluation of asset | -93,425.39 | |
Add: Changing income of fair value(Loss is listed with “-”) | ||
Investment income (Loss is listed with “-”) | ||
Including: Investment income on affiliated company and joint venture | ||
Assets disposal income (Loss is listed with “-”) | ||
Other income | ||
II. Operating profit (Loss is listed with “-”) | -2,157,954.12 | -234,070.44 |
Add: Non-operating income | 50,111.89 | |
Less: Non-operating expense | 131,247.82 | 50.88 |
III. Total Profit (Loss is listed with “-”) | -2,289,201.94 | -184,009.43 |
Less: Income tax expense | -444,975.63 | -22,646.01 |
IV. Net profit (Net loss is listed with “-”) | -1,844,226.31 | -161,363.42 |
(i) net profit from continuous operation (Net loss is listed with “-”) | -1,844,226.31 | -161,363.42 |
(ii) net profit from discontinued operation (Net loss is listed with “-”) |
V. Net after-tax of other comprehensive income | ||
(I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
1. Changes as a result of re-measurement of net defined benefit plan liability or asset | ||
2. Share of the other comprehensive income of the investee accounted for using equity method which will not be reclassified subsequently to profit and loss | ||
(II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
1. Share of the other comprehensive income of the investee accounted for using equity method which will be reclassified subsequently to profit or loss | ||
2. Gains or losses arising from changes in fair value of available-for-sale financial assets | ||
3. Gains or losses arising from reclassification of held-to-maturity investment as available-for-sale financial assets | ||
4. The effect hedging portion of gains or losses arising from cash flow hedging instruments | ||
5. Translation differences arising on translation of foreign currency financial statements | ||
6. Other | ||
VI. Total comprehensive income | -1,844,226.31 | -161,363.42 |
VII. Earnings per share: | ||
(i) Basic earnings per share | -0.0065 | -0.0006 |
(ii) Diluted earnings per share | -0.0065 | -0.0006 |
5. Consolidated Cash Flow Statement
In RMB
Item | Current Period | Last Period |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 195,284,689.59 | 245,041,670.12 |
Net increase of customer deposit and interbank deposit | ||
Net increase of loan from central bank | ||
Net increase of capital borrowed from other financial institution | ||
Cash received from original insurance contract fee | ||
Net cash received from reinsurance business | ||
Net increase of insured savings and investment | ||
Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses | ||
Cash received from interest, commission charge and commission | ||
Net increase of capital borrowed | ||
Net increase of returned business capital | ||
Write-back of tax received | ||
Other cash received concerning operating activities | 3,010,278.37 | 1,905,715.83 |
Subtotal of cash inflow arising from operating activities | 198,294,967.96 | 246,947,385.95 |
Cash paid for purchasing commodities and receiving labor service | 158,655,192.45 | 216,567,324.72 |
Net increase of customer loans |
and advances | ||
Net increase of deposits in central bank and interbank | ||
Cash paid for original insurance contract compensation | ||
Cash paid for interest, commission charge and commission | ||
Cash paid for bonus of guarantee slip | ||
Cash paid to/for staff and workers | 35,688,181.95 | 36,300,498.57 |
Taxes paid | 12,954,614.98 | 9,434,091.06 |
Other cash paid concerning operating activities | 17,668,304.21 | 20,042,838.52 |
Subtotal of cash outflow arising from operating activities | 224,966,293.59 | 282,344,752.87 |
Net cash flows arising from operating activities | -26,671,325.63 | -35,397,366.92 |
II. Cash flows arising from investing activities: | ||
Cash received from recovering investment | 80,000,000.00 | |
Cash received from investment income | 253,638.00 | |
Net cash received from disposal of fixed, intangible and other long-term assets | 737,982.00 | 75,901.58 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | 80,991,620.00 | 75,901.58 |
Cash paid for purchasing fixed, intangible and other long-term assets | 7,537,161.50 | 3,979,604.31 |
Cash paid for investment | 80,000,000.00 | |
Net increase of mortgaged loans | ||
Net cash received from |
subsidiaries and other units obtained | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 87,537,161.50 | 3,979,604.31 |
Net cash flows arising from investing activities | -6,545,541.50 | -3,903,702.73 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
Cash received from loans | 156,361,250.00 | 99,600,311.57 |
Cash received from issuing bonds | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 156,361,250.00 | 99,600,311.57 |
Cash paid for settling debts | 172,529,301.86 | 87,960,209.96 |
Cash paid for dividend and profit distributing or interest paying | 4,844,780.76 | 4,119,482.39 |
Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
Other cash paid concerning financing activities | ||
Subtotal of cash outflow from financing activities | 177,374,082.62 | 92,079,692.35 |
Net cash flows arising from financing activities | -21,012,832.62 | 7,520,619.22 |
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -149,879.80 | -390,104.21 |
V. Net increase of cash and cash equivalents | -54,379,579.55 | -32,170,554.64 |
Add: Balance of cash and cash | 81,474,974.30 | 104,015,312.97 |
equivalents at the period-begin | ||
VI. Balance of cash and cash equivalents at the period-end | 27,095,394.75 | 71,844,758.33 |
6. Cash Flow Statement of Parent Company
In RMB
Item | Current Period | Last Period |
I. Cash flows arising from operating activities: | ||
Cash received from selling commodities and providing labor services | 11,824,697.08 | 10,850,641.39 |
Write-back of tax received | ||
Other cash received concerning operating activities | 107,677,057.73 | 37,579,467.16 |
Subtotal of cash inflow arising from operating activities | 119,501,754.81 | 48,430,108.55 |
Cash paid for purchasing commodities and receiving labor service | ||
Cash paid to/for staff and workers | 1,812,043.81 | 2,524,734.01 |
Taxes paid | 3,627,519.72 | 2,236,783.63 |
Other cash paid concerning operating activities | 116,155,663.65 | 37,794,518.68 |
Subtotal of cash outflow arising from operating activities | 121,595,227.18 | 42,556,036.32 |
Net cash flows arising from operating activities | -2,093,472.37 | 5,874,072.23 |
II. 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 |
Net cash received from disposal of subsidiaries and other units | ||
Other cash received concerning investing activities | ||
Subtotal of cash inflow from investing activities | ||
Cash paid for purchasing fixed, intangible and other long-term assets | 1,696,400.00 | 1,377,592.31 |
Cash paid for investment | ||
Net cash received from subsidiaries and other units | ||
Other cash paid concerning investing activities | ||
Subtotal of cash outflow from investing activities | 1,696,400.00 | 1,377,592.31 |
Net cash flows arising from investing activities | -1,696,400.00 | -1,377,592.31 |
III. Cash flows arising from financing activities | ||
Cash received from absorbing investment | ||
Cash received from loans | 100,000,000.00 | 15,000,000.00 |
Cash received from issuing bonds | ||
Other cash received concerning financing activities | ||
Subtotal of cash inflow from financing activities | 100,000,000.00 | 15,000,000.00 |
Cash paid for settling debts | 116,054,041.68 | 15,000,000.00 |
Cash paid for dividend and profit distributing or interest paying | 3,884,001.07 | 2,857,775.00 |
Other cash paid concerning financing activities | ||
Subtotal of cash outflow from financing activities | 119,938,042.75 | 17,857,775.00 |
Net cash flows arising from financing activities | -19,938,042.75 | -2,857,775.00 |
IV. Influence on cash and cash | 424.56 | 807.57 |
equivalents due to fluctuation in exchange rate | ||
V. Net increase of cash and cash equivalents | -23,727,490.56 | 1,639,512.49 |
Add: Balance of cash and cash equivalents at the period -begin | 25,181,764.87 | 10,375,152.87 |
VI. Balance of cash and cash equivalents at the period -end | 1,454,274.31 | 12,014,665.36 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB
Item | Current period | ||||||||||||
Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||
I. Balance at the end of the last year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -186,467,113.73 | 320,672,978.02 | ||||||||
Add: Changes of accounting policy | |||||||||||||
Error correction of the last period | |||||||||||||
Enterprise combine under the same control | |||||||||||||
Other | |||||||||||||
II. Balance at | 283, | 146,5 | 77,39 | -186, | 320,6 |
the beginning of this year | 161,227.00 | 87,271.50 | 1,593.25 | 467,113.73 | 72,978.02 | ||||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | 2,793,133.60 | 2,793,133.60 | |||||||||||
(i) Total comprehensive income | 2,793,133.60 | 2,793,133.60 | |||||||||||
(ii) Owners’ devoted and decreased capital | |||||||||||||
1.Common shares invested by shareholders | |||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||
4. Other | |||||||||||||
(III) Profit distribution | |||||||||||||
1. Withdrawal of surplus reserves | |||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||
4. Other | |||||||||||||
(IV) Carrying forward internal owners’ equity | |||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||
2. Surplus reserves |
conversed to capital (share capital) | |||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||
4. Other | |||||||||||||
(V) Reasonable reserve | |||||||||||||
1. Withdrawal in the report period | |||||||||||||
2. Usage in the report period | |||||||||||||
(VI)Others | |||||||||||||
IV. Balance at the end of the report period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -183,673,980.13 | 323,466,111.62 |
Last Period
In RMB
Item | Last Period | ||||||||||||
Owners’ equity attributable to parent company | Minority interests | Total owners’ equity | |||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | |||||
Preferred stock | Perpetual capital securities | Other | |||||||||||
I. Balance at the end of the last year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -187,441,523.12 | 319,698,568.63 | ||||||||
Add: Changes of accounting policy | |||||||||||||
Error correction of the |
last period | |||||||||||||
Enterprise combine under the same control | |||||||||||||
Other | |||||||||||||
II. Balance at the beginning of this year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -187,441,523.12 | 319,698,568.63 | ||||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | 974,409.39 | 974,409.39 | |||||||||||
(i) Total comprehensive income | 974,409.39 | 974,409.39 | |||||||||||
(ii) Owners’ devoted and decreased capital | |||||||||||||
1.Common shares invested by shareholders | |||||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||||
4 Other | |||||||||||||
(III) Profit distribution | |||||||||||||
1. Withdrawal of surplus reserves | |||||||||||||
2. Withdrawal of general risk provisions | |||||||||||||
3. Distribution for owners (or shareholders) | |||||||||||||
4. Other | |||||||||||||
(IV) Carrying forward internal |
owners’ equity | |||||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||||
3. Remedying loss with surplus reserve | |||||||||||||
4. Other | |||||||||||||
(V) Reasonable reserve | |||||||||||||
1. Withdrawal in the report period | |||||||||||||
2. Usage in the report period | |||||||||||||
(VI)Others | |||||||||||||
IV. Balance at the end of the report period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -186,467,113.73 | 320,672,978.02 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current period
In RMB
Item | Current period | ||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | |||||||||
I. Balance at the end of the last year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -210,552,845.95 | 296,587,245.80 | ||||||
Add: Changes of |
accounting policy | |||||||||||
Error correction of the last period | |||||||||||
Other | |||||||||||
II. Balance at the beginning of this year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -210,552,845.95 | 296,587,245.80 | ||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -1,844,226.31 | -1,844,226.31 | |||||||||
(i) Total comprehensive income | -1,844,226.31 | -1,844,226.31 | |||||||||
(ii) Owners’ devoted and decreased capital | |||||||||||
1.Common shares invested by shareholders | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||
4. Other | |||||||||||
(III) Profit distribution | |||||||||||
1. Withdrawal of surplus reserves | |||||||||||
2. Distribution for owners (or shareholders) | |||||||||||
3. Other | |||||||||||
(IV) Carrying forward internal owners’ equity | |||||||||||
1. Capital |
reserves conversed to capital (share capital) | |||||||||||
2. Surplus reserves conversed to capital (share capital) | |||||||||||
3. Remedying loss with surplus reserve | |||||||||||
4. Other | |||||||||||
(V) Reasonable reserve | |||||||||||
1. Withdrawal in the report period | |||||||||||
2. Usage in the report period | |||||||||||
(VI)Others | |||||||||||
IV. Balance at the end of the report period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -212,397,072.26 | 294,743,019.49 |
Last period
In RMB
Item | Last period | ||||||||||
Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Total owners’ equity | |||
Preferred stock | Perpetual capital securities | Other | |||||||||
I. Balance at the end of the last year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -208,106,913.40 | 299,033,178.35 | ||||||
Add: Changes of accounting policy | |||||||||||
Error correction of the last period |
Other | |||||||||||
II. Balance at the beginning of this year | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -208,106,913.40 | 299,033,178.35 | ||||||
III. Increase/ Decrease in this year (Decrease is listed with “-”) | -2,445,932.55 | -2,445,932.55 | |||||||||
(i) Total comprehensive income | -2,445,932.55 | -2,445,932.55 | |||||||||
(ii) Owners’ devoted and decreased capital | |||||||||||
1.Common shares invested by shareholders | |||||||||||
2. Capital invested by holders of other equity instruments | |||||||||||
3. Amount reckoned into owners equity with share-based payment | |||||||||||
4. Other | |||||||||||
(III) Profit distribution | |||||||||||
1. Withdrawal of surplus reserves | |||||||||||
2. Distribution for owners (or shareholders) | |||||||||||
3. Other | |||||||||||
(IV) Carrying forward internal owners’ equity | |||||||||||
1. Capital reserves conversed to capital (share capital) | |||||||||||
2. Surplus reserves |
conversed to capital (share capital) | |||||||||||
3. Remedying loss with surplus reserve | |||||||||||
4. Other | |||||||||||
(V) Reasonable reserve | |||||||||||
1. Withdrawal in the report period | |||||||||||
2. Usage in the report period | |||||||||||
(VI)Others | |||||||||||
IV. Balance at the end of the report period | 283,161,227.00 | 146,587,271.50 | 77,391,593.25 | -210,552,845.95 | 296,587,245.80 |
III. Company profile
1. The registration place of the enterprise, the form of organization and the headquarters addressShenzh Zhongheng HUAFA Company Limited (hereinafter referred to as Company or the Company), established on 8 December1981. uniform social cedit code 91440300618830372G.Registered place and head office of the Company: 411 Bldg., Huafa (N) Road, Futian District, ShenzhenLegal representative: Li ZhongqiuRegistered capital: RMB 283,161,227.00
2. The nature of the business and the main business activitiesThe Company belongs to the computer, telecommunication and manufacturing of other electronic equipment. Business scope:
producing and sales of vary colour TV set, liquid crystal disply, LCD (operates in branch), radio-recorder, sound equipment,electronic eatch, electronic game and computers, the printed wiring board, precision injection parts, light packaging material(operates in Wuhan) and hardware (including tool and mould) for various elctronic producs and supporting parts, plating and surfacetreatment and tin wire, development and operation of real estate (Shen Fang Di Zi No.: 7226760) and property management. Fundedaffiliated companies in Wuhan and Julin. Setting up branches in capital of the province (Lhasa City excluded) in China andmunicipality directrly under the central government.Relevant party offering approval reporting of financial statements and date thereof3. The financial statement has been deliberated and approved by BOD on 24 August 2018. According to Article of Association, thestatement shall be submit for deliberation in shareholders general meeting.
Consolidate scope in the Period including: parent company – Shenzhen Zhongheng Huafa Company Limited, subsidiary including
Shenzhen Huafa Perpoerty Leasing Management Co., Ltd. (no annual inspection in 2011, and business license revoke on 1 April2014 ), Shenzhen Zhongheng Huafa perperty Co., Ltd., Wuhan Hengfa Technology Co., Ltd., Shenzhen Huafa Hengtian Co., Ltd.
and Shenzhen Huafa Hengtai Co., Ltd. more of subsidiaries found in Note VII.-“Equity in other subjects”.
IV. Preparation basis of Financial Statements
1. Preparation basis
Base on the running continuously and actual transactions and events, in line with the Accounting Standards for Business Enterprise –
Basic Standards and specific principle of accounting standards issued by the Ministry of Finance, the Company prepared andformulate the financial statement lies on the followed important accounting policy and estimation.
2. Going concern
The Company estimated that the production and sales of the Company, in 12 months since end of the period, will in a virtuous cycle.We has good management and continuous operation ability, and there is no risk of continuing operations.
V. Important accounting policy and estimation
Notes on specific accounting policies and accounting estimation:
According to actual operation charateristic, the Group formulate specific accounting policy and accounting estimation, includingtrade cycle, recognization and measurement on account bad debt provision of receivables, inventory measurement, classification anddepreciation method of fixed assets, intangible assets amortization and recognization and measurement of revenue etc.
1. Declaration of obedience to Accounting Standards for Business Enterprise
The Financial Statements of the Company are up to requirements of Accounting Standards for Business Enterprise and also a true and
thorough reflection to the relevant information as the Company’s financial position dated 30
th
June 2018 and the operation results aswell as cash flow for the first half of 2018.
2. Accounting period
The Company’s accounting year is Gregorian calendar year, namely from 1
st
January to 31
st
December of every year.
3. Business cycle
The Company’s business cycle is one year (12 months) as a normal cycle, and the business cycle is the determining criterion for the
liquidity of assets and liabilities of the Company.
4. Bookkeeping standard currency
The Renminbi (RMB) is taken as the book-keeping standard currency.
5. Accounting methods for consolidation of enterprises under the same control or otherwise
(1) Consolidation of enterprises under the same controlWhere the Company for long term equity investment arising from business combination under common control satisfies thecombination consideration by payment of cash, transfer of non-cash assets or assumption of debt, the carrying value of the net assetsof the acquire in combined financial statement of the ultimate controller shared by the Company as at the combination date shall bedeemed as the initial investment cost of such long term equity investment. If the equity instrument issued by combining party areconsider as the combination consideration, than the total value of the issuing shares are consider as the share capital. The differencebetween the initial cost of long-term equity investment and book value of consideration (or total face value of the shares issued) paid,capital surplus adjusted; if the capital surplus not enough to written down, than retained earning adjusted.(2) Business combination not under common controlAs for business combination not under common control, combination costs refer to the sum of the fair value of the assets paid,liabilities occurred or assumed as well as equity securities issued by the acquirer to obtain control over the acquire as at theacquisition date. As for acquiree that obtained by consolidation not under the same control, the qualified confirmation of identifiedassets, liability and contingency liabilities should calculated by fair value on day of purchased. If the consolidation cost larger than
the fair value amount of indentified net assets from acquiree’s, the differences should be recognized as goodwill. If the consolidationcost less than the fair value amount of indentified net assets from acquiree’s, the differences should reckoned into current gains/losses
after re-examination.
6. Preparation methods for consolidated financial statements
(1) Consolidation financial statement rangeThe Company includes all the subsidiaries (including the separate entities controlled by the Company) into consolidated financialstatement, including companies controlled by the Company, non-integral part of the investees and structural main body.(2) Centralize accounting policies, balance sheet dates and accounting periods of parent and subsidiaries.As for the inconsistency between the subsidiaries and the Company in the accounting policies and periods, the necessary adjustment
is made on the subsidiaries’ financial statements in the preparation of the consolidated financial statements according to theCompany’s accounting policies and periods.
(3) Setoff of consolidated financial statementThe consolidated financial statements shall be prepared on the basis of the balance sheet of the parent company and subsidiaries,
which offset the internal transactions incurred between the parent company and subsidiaries and within subsidiaries. The owner’sequity of the subsidiaries not attributable to the parent company shall be presented as minority equity under the owner’s equity item
in the consolidated balance sheet. The long term equity investment of the parent company held by the subsidiaries, deemed as
treasury stock of the corporate group as well as the reduction of owners’ equity, shall be presented as “Less: treasury stock” under theowners’ equity item in the consolidated balance sheet.
(4) Accounting for acquisition of subsidiary through combinationFor subsidiaries acquired under enterprise merger involving enterprises under common control, the assets,liabilities, operating results and cash flows of the subsidiaries are included in the consolidated financial statements from thebeginning of the financial year in which the combination took place. When preparing the consolidated financialstatements, for the subsidiaries acquired from business combination not involving entities under common control, theidentifiable net assets of the subsidiaries are adjusted on the basis of their fair values on the date of acquisition.
7. Classification of joint arrangements and accounting treatment of joint operation
(1) Classification of joint arrangementsJoint arrangements are divided into joint operations and joint ventures. Joint arrangements achieved not through separate entities areclassified as joint operations. Separate entities refer to the entities with separate identifiable financial architecture including separatelegal entities and legally recognized entities without the qualification of legal entity. Joint arrangements achieved through separateentities are generally classified as joint ventures. In case of changes in rights entitled to and obligations undertaken by the parties ofjoint venture under a joint arrangement due to the changes in relevant facts and circumstances, the parties of joint venture willre-assess the classification of joint arrangements.(2) Accounting treatment for joint operationsThe parties of joint operation should recognize the following items in relation to their share of interest in joint operation, and proceedwith accounting in accordance with the relevant provisions under the Accounting Standards for Business Enterprises: to recognizetheir separate assets or liabilities held, and recognize the assets or liabilities jointly held according to their respective shares; torecognize the income from the disposal of their output share under joint operation; to recognize the income from the disposal ofoutput under joint operation according to their respective shares; to recognize the expenses incurred separately, and recognize theexpenses incurred under joint operation according to their respective shares.For the parties of a joint operation not under common control, if they are entitled to relevant assets and undertake relevant liabilitiesof the joint operation, accounting will be carried out with reference to the provisions of the parties of joint operation; otherwise, itshould be subject to relevant Accounting Standards for Business Enterprises.(3) Accounting treatment for joint venturesThe parties of a joint venture should perform accounting for investments by the joint venture in accordance with the Accounting
Standards for Business Enterprises No. 2 – Long-term Equity Investments. The parties not under common control should carry out
accounting depending on their influence on the joint venture.
8. Determination criteria of cash and cash equivalent
The cash recognized in the preparation of the cash flow statements, is the Company’s storage cash and deposits available for payment
anytime. The cash equivalents recognized in the preparation of the cash flow statements refers to the investment held by theCompany with characteristic of short-term, strong mobility, easy transfer to known sum cash and has slim risk from value changes.
9. Foreign currency exchange and the conversion of foreign currency statements
(1) Foreign currency exchange
The foreign trading, shall be converted with the rates of exchange, released by People’s Bank of China at beginning of the current
month, when trading occurred. On the balance sheet day, the monetary items are converted on the current rate on the balance sheetday, concerning the exchange differences between the spot exchange rate on that date and initial confirmation or the sport exchangerate on previously balance sheet date, should reckoned in to current gains/losses except the capitalizing on exchange differences forforeign specific loans, which was reckoned into cost for capitalizing. The non-monetary items measured on the historic cost are stillmeasured by the original bookkeeping rate with the sum of the bookkeeping standard currency unchanged. Items of non-monetaryforeign currency which was calculated by fair value, should converted by spot exchange rate on the confirmation day of fair value,difference between the converted amount of bookkeeping currency and original amount of bookkeeping currency, was treated aschanges of fair value (including exchange rate changed) reckoned into current gains/losses or recognized as other consolidated
income.(2) Conversion of foreign currency financial statementsUpon the conversion of the foreign currency financial statements of the controlling subsidiaries, joint enterprises, and the affiliated
enterprises on the bookkeeping standard currency different from the Company’s, the accounting check and preparation of the
consolidated financial statements are made. Assets and liabilities items in the balance sheet are converted on the current rate on the
balance sheet day; owners’ equity items besides the “retained profit” item, the other items are converted on the actual rate. Therevenue and expenses, shall be converted with the rates of exchange, released by People’s Bank of China at beginning of the current
month, when trading occurred. The conversion difference of the foreign currency financial statements is listed specifically in the
owners’ equity in the balance sheet. The cash flow of foreign currency, which was recognized by systematic rational method, shall beconverted with the rates of exchange, released by People’s Bank of China at beginning of the current month, when trading occurred.
The cash influenced by the rate fluctuation is listed specifically in the cash flow statement. As for the foreign operation, theconversion difference of the foreign currency statement related to the foreign operation is transferred in proportion into the disposalof the current loss/gain.
10. Account receivable(1) Account receivables with single major amount and withdrawal bad debt provision independently
Criterion or amount standards of major single amount | Book balance of the account receivable with over 0.5 million Yuan |
Withdrawal method for individual bad debt provision accrual with major single amount concerned | Recognized on the difference between the book value and the current value of the estimative future cash flow |
(2) Account receivable with bad debt provision accrual by portfolio
Portfolio | Accrued method for bad debts |
Age portfolio | Aging of accounts |
Withdrawing bad bed provision by aging method in portfolio:
√ Applicable □ Not applicable
Account ages | Accrued proportion of accounts receivable | Accrued proportion of other accounts receivable |
1-2 years | 5.00% | 5.00% |
2-3 years | 10.00% | 10.00% |
Over three years | 30.00% | 30.00% |
Withdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
□ Applicable √ Not applicable
(3) Account receivable with minor single amount but has individual bad debt provision accrual
Reasons for individual bad debt prevision accrual | Receivable has minor amount and can not reflect the risk characteristic by withdrawing bad debt provision by group |
Accrued method for bad debt provision | Recognized on the difference between the book value and the current value of the estimative future cash flow |
n11. Inventory
Whether the company needs to comply with the disclosure requirements of the particular industryNo(1) Categories of inventoryThe inventory is goods or manufactured products held for sale, products in process, and materials and matters utilized in theproduction or supply of labor. It mainly consists of the raw material, revolving materials, materials processed on commission,wrappage, consumable low-value product, products in process, homemade semi-finished products and inventory goods etc.(2) Accounting method for inventory deliveryWhen inventories are issued, the actual cost is determined by the first in first out method.(3) Accrual method inventory falling price reservesOn the balance sheet day, the inventory is measured on the lower one between the cost and the net realizable value, and the provisionfor the falling price reserves is accrued on each inventory item; however, as for the inventory of large quantity and low price, theprovision is accrued on the inventory category.(4) Inventory systemInventory system of the Company is perpetual inventory system(5) Amortization method for the low-value consumables and wrap pageLow-value consumables and packages are amortized by one-point method
12. Long term equity investment
(1) Recognition of initial investment costInitial investment cost of long term equity investment obtained by corporate consolidation: in the case of the consolidation of
enterprises under the same control, recognized as the initial cost is the book value of the owners’ equity obtained from the
consolidated party; in the case of the consolidation of enterprises not under the same control, recognized as the initial cost is therecognized consolidation cost on the purchase day. As for the long term equity investment obtained by cash payment, the initialinvestment cost is the actual purchase payment. As for the long term equity investment obtained by the equity securities offering, theinitial investment cost is the fair value of the equity securities. As for the long-term equity investment obtained by debt
reorganization, initial investment cost of such investment should determine by relevant regulation of the “Accounting Standards forBusiness Enterprise No.12- Debt Reorganization”; As for the long term equity investment obtained by the exchange of the
non-monetary assets and the debts restructuring, the initial investment cost is recognized on the relevant rules in the Principles.(2) Subsequent measurement and profit or loss recognitionWhere the investor has a control over the investee, long-term equity investments are measured using cost method. Long-term equityinvestments in associates and joint ventures are measured using equity method. Where part of the equity investments of an investor inits associates are held indirectly through venture investment institutions, common fund, trust companies or other similar entitiesincluding investment linked insurance funds, such part of equity investments indirectly held by the investor shall be measured at fair
value through profit or loss according to according to relevant requirements of Accounting Standards for Business Enterprises
No.22—Recognization and measurement of Financial Instruments regardless whether the above entities have significant influence on
such part of equity investments, while the remaining part shall be measured using equity method.(3) Basis of conclusion for common control and significant influence over the investeeJoint control over an investee refers to where the activities which have a significant influence on return on certain arrangement couldbe decided only by mutual consent of the investing parties sharing the control, which includes the sales and purchase of goods orservices, management of financial assets, acquisition and disposal of assets, research and development activities and financingactivities, etc.; Significant influence on the investee refers to that: significant influence over the investee exists when holding morethan 20% but less than 50% of the shares with voting rights or even if the holding is below 20%, there is still significant influence ifany of the following conditions is met: there is representative in the board of directors or similar governing body of the investee;
participation in the investee’s policy setting process; assign key management to the investee; the investee relies on the technology or
technical information of the investing company; or major transactions with the investee.
13. Investment real estate
Measurement for investment real estateCost methodDepreciation or amortization method
The leased buildings in the Company’s investment property adopts straight-line depreciation to calculate and
distill depreciation, specific accounting policy are same as part of the fixed assets. The leased land use rights inthe investment property and the land use rights to be transferred after appreciation adopt straight-line amortization,specific accounting policy are same as part of the intangible assets.
14. Fixed assets(1) RecognitionFixed assets refers to the tangible assets holding for purpose of producing goods, providing labor services, leasing
or operation management, which has one accounting fiscal year of using life. Meanwhile as up to the followingconditions, they are recognized: the economic interest related to the fixed assets probably flow into the Company;the cost of the fixed assets can be measured reliably.
(2) Depreciation method
Category | Depreciation method | Depreciation life (year) | Salvage rate | Annual depreciation rate |
House building | Straight-line depreciation | 20-50 | 10.00 | 1.80-4.50 |
Machine equipment | Straight-line depreciation | 10 | 10.00 | 9.00 |
Mold equipment | Straight-line depreciation | 3 | 10.00 | 30.00 |
Transportation equipment | Straight-line depreciation | 5 | 10.00 | 18.00 |
Instrument equipment | Straight-line depreciation | 5 | 10.00 | 18.00 |
Tool equipment | Straight-line depreciation | 5 | 10.00 | 18.00 |
Office equipment | Straight-line depreciation | 5 | 10.00 | 18.00 |
The fixed assets of the Company mainly include buildings, machinery equipment, electronic equipment, transportation equipment,etc.; the method of depreciation is based on the straight-line method. Determine the useful life and estimated net residual value offixed assets according to the nature and use of various types of fixed assets. At the end of the year, review the useful life, estimatednet residual value, and depreciation method of fixed assets, if there is a difference from the original estimate, make correspondingadjustments. Except for the fixed assets that have been fully depreciated and continue to be used and the land that is separatelyaccounted for, the Company calculates and depreciates all fixed assets.
15. Project in progressProject in progress of the Company divided as self-run construction and out-bag construction. The project in
progress of the Company carried forward as fixed assets while the construction is ready for the intended use.Criteria of the expected condition for use should apply one of the follow conditions: The substance construction(installation included) of the fixed assets has completed all or basically; As the projects have been in testproduction or operation, and the results show that the assets can operate properly and produce the qualifiedproducts stably, or the test operation result shows the assets can operate or open properly. The expenditure of thefixed assets on the construction is a little or little. The fixed assets of the project constructed have been up to therequirements of the design or contract, or basically up to.
16. Borrowing expenses(1) Recognition principle on capitalization of borrowing expenses
As for the Company’s actual borrowing expenses directly attributable to the assets construction or production, it is
capitalized and reckoned into the relevant assets cost; as for other borrowing expenses, it is recognized on theactual sum and reckoned into the current loss/gain. The assets up to the capitalization are assets as the capitalassets, investment real estate, and inventory reaching the expectant availability or sale ability.(2) Calculation of the capitalizationCapitalization term: the period from the time starts to capitalization to the time the capitalization ends. The periodof capitalization suspended is not included. The capitalization of borrowing expenses should be suspended whilethe abnormal interrupt, which surpass three months continuously, in the middle of acquisition or construction orproduction.
As for the borrowing of the specific borrowing, the capitalization sum is recognized on the current actual
interest expenses less the interest income of the borrowing capital not utilized but deposited in the bank or the
return of the temporary investment; As for the appropriation of the general borrowing, the capitalization sum isrecognized on the weighted average of, the accumulative assets expenditure above the specific borrowing, andtimes the capitalization rate of the appropriation; As for the discount or premium of the borrowing, the discount orpremium to be diluted in every accounting period is recognized in the actual rate method.The effective interest method is the method for the measurement of the diluted discount or premium or interestexpenses on the actual interest rate; and the actual interest rate is the interest rate used in the discount of the futurecash flow in the expectant duration period as the current book value of the borrowing.
17. Intangible assets(1) Accounting method, service life and impairment test1. Accounting method of intangible assets
The Company’s intangible assets are measured initially on cost. The intangible assets purchased in are taken as the
actual cost on the actual payment and relevant expenditure. As for the intangible assets invested in by theinvestors, the actual cost is recognized on the value stipulated in the contract or agreement; however, if what isstipulated in the contract or agreement is not fair value, the actual cost is recognized on fair value. As for theself-developed intangible assets, their cost is the actual total expenditure before reaching the expectant purpose.
The follow-up measurements of the Company’s intangible assets respectively are: the line amortization method is
taken on the intangible assets of finite service life, and at the yea-end, the check is taken on the service life anddilution of the intangible assets, and the corresponding adjustment is made if there is inconsistency with theprevious estimative ones. As for the intangible assets of uncertain service life, it is not diluted, however, theservice life is checked at year-end; If there is solid evidence to its finite service life, its service life is estimatedand diluted in straight line method.2. Judgment basis for uncertain service lifeThe Company will not be able to foresee the time limit within which the asset brings economic benefits to thecompany, or the intangible assets with uncertain useful life identified as intangible assets with uncertain useful life.The basis for judging the uncertainty of useful life is from the contractual rights or other legal rights, but thecontract stipulates or the law rules there is no definite useful life; combining the same industry case and or therelevant expert argumentation, it is still incapable of judging the time limit within which the intangible assetsbring economic benefits to the company.At the end of each year, review the useful life of intangible assets with indefinite useful life by mainly adoptingthe bottom-up method, the relevant departments of intangible assets take the basic review and evaluate whetherthere is any change in the judgment basis for indefinite useful life.
(2) Accounting policies for internal research and development expenditureExpenditures for internal research and development projects at the research phase shall be included in the current
profit or loss when incurred; expenditures incurred at the development phase and recognized as intangible assets
shall be transferred to intangible assets accounting.
18. Long-term investment impairmentLong-term equity investments, investment properties measured at cost and long-term assets such as fixed assets,
construction in progress, productive biological assets at cost method, oil and gas assets, intangible assets andgoodwill are tested for impairment if there is any indication that an asset may be impaired at the balance date. Ifthe result of the impairment test indicates that the recoverable amount of the asset is less than its carrying amount,
a provision for impairment and an impairment loss are recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future
cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognized onthe individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, therecoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallestgroup of assets that is able to generate independent cash inflows.Goodwill arising from a business combination is tested for impairment at least at each year end, irrespective ofwhether there is any indication that the asset may be impaired. For the purpose of impairment testing, the carryingamount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonablebasis to each of the related asset groups; if it is impossible to allocate to the related asset groups, it is allocated toeach of the related set of asset groups. If the carrying amount of the asset group or set of asset groups is higherthan its recoverable amount, the amount of the impairment loss first reduced by the carrying amount of thegoodwill allocated to the asset group or set of asset groups, and then the carrying amount of other assets (otherthan the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of eachasset.Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
19. Long-term deferred expenditure
The Company’s long-term deferred expenditure are expenses paid out and with one year above (1-year included)
benefit period. The long-term unamortized expenses are diluted by periods according to the benefit period. As the
long-term unamortized expenses cannot enable the accounting period’s beneficiary, all dilution values of the
project undiluted yet, are transferred into the current loss/gain.
20. Employees benefits(1) Accounting for short-term benefitsIn the period of employee services, short-term benefits are actually recognized as liabilities and charged to profit
or loss, or if otherwise required or allowed by other accounting standards, to the related costs of assets for the
current period. At the time of actual occurrence, The Company’s employee benefits are recorded into the profits
and losses of the current year or assets associated costs according to the actual amount. The non-monetaryemployee benefits are measured at fair value. Regarding to the medical and health insurance, industrial injury
insurance, maternity insurance and other social insurances, housing fund and labor union expenditure andpersonnel education that the Company paid for employees, the Company should recognize correspondingemployees benefits payable according to the appropriation basis and proportion as stipulated by relevantrequirements and recognize the corresponding liabilities and include these expenses in the profits or losses of thecurrent period or recognized as respective assets costs.
(2) Accounting for post-employment benefitsDuring the accounting period in which an employee provides service, the amount payable calculated under
defined contribution scheme shall be recognized as a liability and recorded in profit and loss of the current periodor in assets. In respect of the defined benefit scheme, the Company shall use the projected unit credit method andattribute the welfare obligations calculated using the formula stipulated by the defined benefit scheme to theservice period of the employee, and record the obligation in the current profit and loss or related assets cost.
(3) Accounting for termination benefitsThe Company recognizes a liability and expenses in the current profit or loss for termination benefits at the earlier
of the following dates: when the Company can no longer withdraw the offer of those benefits; and when theCompany recognizes costs for restructuring involving the payment of termination costs.
(4) Accounting for other long-term employee benefitsThe Company provides other long-term employee benefits to its employees. For those falling within the scope of
defined contribution scheme, the Company shall account for them according to relevant requirements of thedefined contribution scheme. In addition, the Company recognizes and measures the net liabilities or net assets ofthe other long-term employee benefits according to relevant requirements of the defined contribution scheme.
21. Accrual liabilityThe obligation related to contingencies is the current obligation assumed by the company, and performing this
obligation may result in an outflow of economic benefits, and this obligation can be determined as the estimatedliabilities when the amount can be reliably measured. The Company makes initial measurement in accordancewith the best estimate for performing the related current obligation, if the expenditure as needed has a continuousrange, and the likelihood of occurrence of various results in this range is the same, the best estimate is determinedby the median value within the range; if a number of items are involved, the best estimate is determined by thecalculation of various possible outcomes and related probabilities.At the balance sheet date, the book value of estimated liabilities should be rechecked, if there is conclusiveevidence indicates that this book value cannot truly reflect the current best estimate, and then the book valueshould be adjusted in accordance with the current best estimate.
22. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industryNo
1. Sales of goodsThe Company shall ascertain the revenue incurred by selling goods in accordance with the received or receivableprice stipulated in the contract or agreement signed between the enterprise and the buyer unless the following
conditions are met simultaneously: ① the significant risks and rewards of ownership of the goods have beentransferred to the buyer by the enterprise; ② the enterprise retains neither continuous management right thatusually keeps relation with the ownership nor effective control over the sold goods; ③the relevant amount ofrevenue can be measured in a reliable way; ④ relevant economic benefits may flow into the enterprise and ⑤ the
relevant costs incurred or to be incurred can be measured in a reliable way.Money collection for the contract or agreement use the mode of deferred, actually has the financing features. Therevenue of commodity sales is recognized by the fair value of the money receivable on contract or agreement.2. Labor service providingIf an enterprise can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning thelabor services it provides, it shall recognize the revenue from providing services employing thepercentage-of-completion method. The enterprise can ascertain the schedule of completion(percentage-of-completion) under the transaction concerning the providing of labor services based on calculationof completed works.If an enterprise cannot, on the date of the balance sheet, measure the result of a transaction concerning theproviding of labor service in a reliable way, it shall be conducted in accordance with the following circumstances,
respectively: ①if the cost of labor services incurred is expected to be compensated, the revenue from the
providing of labor services shall be recognized in accordance with the amount of the cost of labor services
incurred, and the cost of labor services shall be carried forward at the same amount; ②if the cost of labor services
incurred is not expected to compensate, the cost incurred should be included in the current profits and losses, andno revenue from the providing of labor services may be recognized.3. Transition of asset use rightWhen economic benefits relating to transition of asset use right is likely to inflow into the Company and therelevant income can be measured reliably, the Company shall recognize such income from transition of asset useright.
The Company’s specific income recognition method: it is recognized as income when the product has been sent
out and signed for receipt by the other party for domestic sales; it is recognized as income when the product hasbeen shipped and its customs procedures have been completed with the relevant declaration documents for exportsales. Income from house leases and property management is recognized according to the lease contractagreement, receipt of relevant payments, or relevant collection proof.
23. Government subsidy(1) Determination basis and accounting treatment for government grants related to assetsGovernment grant obtained by the Company for the purpose of constructing or otherwise forming long term assets
is recognized as government grant related to assets. The specific projects for which the government documentshave specified the subsidies should be divided according to the relative proportion of the amount paid for formingassets and the amount paid included in costs in the budgeting of the specific project, and the dividing ratio needsto be rechecked on each balance sheet date, and be changed if necessary. Government grants related to assets arerecognized as deferred income. The amount recognized as deferred income shall be included in the current profitand loss in a reasonable and systematic way within the useful life of the relevant assets. Those related to the dailyactivities of the Company are included in other income, and those not related to the daily activities of theCompany are included in non-operating income.Government grants measured on the basis of nominal amounts are directly included in the current profit or loss.
(2) Determination basis and accounting treatment for government grants related to incomeThe government documents only make general statements on the use, and those not specified as special items are
regarded as government grants related to income.Government grants related to income are treated in the following situations respectively: those used to compensatethe related expenses or losses of the enterprise in the subsequent period shall be recognized as deferred incomeand shall be included in the current profit or loss during the period of confirming related expenses. Those used tocompensate the occurred related expenses or losses of the enterprise shall be directly included in the current profit
and loss. When being included in the current profits and losses, the government grants related to the Company’sdaily activities are included in other income; government grants that are not related to the Company’s daily
activities are included in non-operating income.
24. Deferred income tax asset / deferred income tax liability1. Where there is difference between the carrying amount of the assets or liabilities and its tax base, (as for an item
that has not been recognized as an asset or liability, if its tax base can be determined in light of the tax law, the taxbase shall recognized as the difference) the deferred income tax and deferred income tax liabilities shall bedetermined according to the applicable tax rate in period of assets expected to recover or liability expected to payoff.2. The deferred income tax assets shall be recognized to the extent of the amount of the taxable income which it ismost likely to obtain and which can be deducted from the deductible temporary difference. On balance sheet date,if there have concrete evidence of obtaining, in future period, enough taxable amounts to deduct the deductibletemporary difference, the un-confirmed deferred income tax assts in previous accounting period shall berecognized. If there has no enough taxable amounts, obtained in future period, to deducted the deferred income taxassets, book value of the deferred income tax assets shall be kept in decreased.3. The taxable temporary differences related to the investments of subsidiary companies and associated enterprisesshall recognized as deferred income tax liability, unless the Company can control the time of the reverse oftemporary differences and the temporary differences are unlikely to be reversed in the expected future. As for the
deductible temporary difference related to the investment of the subsidiary companies and associated enterprises,deferred income tax assets shall be recognized while the temporary differences are likely to be reversed in theexpected future and it is likely to acquire any amount of taxable income tax that may be used for making up thedeductible temporary differences.
25. Leasing(1) Accounting treatment for operating leaseAccounting treatment for operating lease: Operating lease payments are recognized on a straight-line basis over
the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for theperiod.
(2) Accounting treatment for finance leaseAccounting treatment for finance lease: At the commencement of the lease term, the Group records the leased
asset at an amount equal to the lower of the fair value of the leased asset and the present value of the minimumlease payments. The difference between the recorded amounts is accounted for as unrecognized finance charge,using the effective interest method amortization during the lease term. Minimum lease payments deductingunrecognized financing charges are listed as long-term payables.
26. Other important accounting policy and estimationThe company does not disclose other important accounting policies and accounting estimates.27. Changes in important accounting policies and estimates(1) Changes in important accounting policies
□Applicable √Not applicable
(2) Changes in important accounting estimates
□Applicable √Not applicable
VI. Taxes
1. Major tax and tax rate
Taxes | Taxation basis | Tax rate |
VAT | Domestic sales revenue | 16%, 6%, 5%, 3% |
Urban maintenance and construction tax | Transfer tax payable | 7% |
Corporate income tax | Taxable income | 15、25% |
Educational surtax | Transfer tax payable | 3% |
Local educational surtax | Transfer tax payable | 1.5% |
Property tax | 70% of original value of the property | 1.2% |
Explain the different taxation entity of the enterprise income tax
Taxation entity | Income tax rate |
Shenzhen Zhongheng Huafa Co., Ltd. | 25% |
Wuhan Hengfa Technology Co., Ltd. | 15% |
2. Tax preferences
According to the “Measures for the Determination of High-tech Enterprises”, and through the enterpriseapplication, expert review, and public announcement and other procedures, the Company’s wholly-owned
subsidiary, Wuhan Hengfa Technology Co., Ltd., has been identified as a high-tech enterprise, and obtained the
“High-tech Enterprise Certificate” jointly issued by the Science and Technology Department of Hubei Province,
Hubei Provincial Finance Department, Hubei Provincial Office, SAT, and Local Taxation Bureau of HubeiProvince on November 28, 2017, the certificate number is GR201742001840, which is valid for 3 years. Theapplicable corporate income tax rate of the subsidiary Wuhan Hengfa Technology Co., Ltd. for 2017 was 15%.
VII. Notes to main items in consolidated financial statement
1. Monetary fund
In RMB
Item | Closing balance | Opening balance |
Cash on hand | 270,703.35 | 170,053.77 |
Bank deposit | 23,568,282.86 | 66,070,891.82 |
Other monetary fund | 7,335,941.28 | 2,571,550.38 |
Total | 31,174,927.49 | 68,812,495.97 |
Other explanationOther monetary funds are bank acceptance deposits.
2. Note receivable(1) Category
In RMB
Item | Closing balance | Opening balance |
Bank acceptance bill | 21,849,876.46 | 37,676,025.26 |
Commercial acceptance bill | 2,362,950.83 | 27,102,241.39 |
Total | 24,212,827.29 | 64,778,266.65 |
(2) Note receivable pledged at period-end
In RMB
Item | Amount pledged at period-end |
Bank acceptance bill | 8,332,469.80 |
Total | 8,332,469.80 |
(3) Note receivable which have endorsed and discount at period-end and has not expired on balance sheetdate
In RMB
Item | De-recognization amount at period-end | Un de-recognization amount at period-end |
Bank acceptance bill | 32,786,491.34 | |
Commercial acceptance bill | 55,168,339.11 | |
Total | 87,954,830.45 |
(4) Notes transfer to account receivable due for failure implementation by drawer at period-end
In RMB
Item | Amount transfer to receivable at period-end |
Other explanationNil
3. Account receivable(1) Category of account receivable
In RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
Account receivable | 7,556,3 | 4.18% | 7,556,3 | 100.00 | 7,556 | 4.67% | 7,556,3 | 100.00% |
with single significant amount and withdrawal bad debt provision separately | 63.72 | 63.72 | % | ,363.72 | 63.72 | |||||
Account receivable with bad debt provision accrual by portfolio | 167,657,625.99 | 92.73% | 228.30 | 0.00% | 167,657,397.69 | 148,804,350.34 | 91.88% | 8,352.08 | 0.01% | 148,795,998.26 |
Accounts with single significant amount and bad debts provision accrued individually | 5,592,838.19 | 3.09% | 5,592,838.19 | 100.00% | 5,592,838.19 | 3.45% | 5,592,838.19 | 100.00% | ||
Total | 180,806,827.90 | 100.00% | 13,149,430.21 | 167,657,397.69 | 161,953,552.25 | 100.00% | 13,157,553.99 | 148,795,998.26 |
Account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Account receivable (by units) | Closing balance | |||
Account receivable | Bad debt reserve | Accrual ratio | Accrual reasons | |
Shenzhen Portman Bowling Club Co., Ltd. | 2,555,374.75 | 2,555,374.75 | 100.00% | Un-recyclable |
Hong Kong Haowei Industry Co. Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Un-recyclable |
TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Un-recyclable |
Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Un-recyclable |
SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Un-recyclable |
Total | 7,556,363.72 | 7,556,363.72 | -- | -- |
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
In RMB
Account age | Closing balance | ||
Account receivable | Bad debt provision | Accrual ratio | |
Sub-item of within one year | |||
Subtotal of within one year | 167,655,343.02 | ||
2-3 year | 2,282.97 | 228.30 | 10.00% |
Over 3 years | 0.00 | ||
Total | 167,657,625.99 | 228.30 |
Explanation on portfolio basis:
NilWithdrawing bad bed provision by percentage of total accounts receivable outstanding in portfolio:
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
Accounts with single significant amount and bad debts provision accrued individually at period-end
Debtor | Book balance | Bad debt | Accrual ratio (%) | Reasons |
Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00 | Uncollectible |
Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00 | Uncollectible |
Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00 | Uncollectible |
Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00 | Uncollectible |
Yuehai International Shipping Limited | 323,405.97 | 323,405.97 | 100.00 | Uncollectible |
Shenzhen Qunping Electronic Co., | 304,542.95 | 304,542.95 | 100.00 | Uncollectible |
Ltd. | ||||
China Galaxy Electronics (Hong Kong) Co., Ltd. | 288,261.17 | 288,261.17 | 100.00 | Uncollectible |
Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00 | Uncollectible |
Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00 | Uncollectible |
Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00 | Uncollectible |
Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00 | Uncollectible |
TCL Electronics (Hong Kong) Co., Ltd. | 145,087.14 | 145,087.14 | 100.00 | Uncollectible |
Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00 | Uncollectible |
SkyWorth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00 | Uncollectible |
Shenzhen Jifang Investment Co., Ltd. | 15,860.00 | 15,860.00 | 100.00 | Uncollectible |
Other | 1,951,354.35 | 1,951,354.35 | 100.00 | Uncollectible |
Total | 5,592,838.19 | 5,592,838.19 |
(2) Bad debtprovision accrual,switch-back ortaken back in theperiod
Bad debt provisionaccrual was 0.00Yuan; the amountcollected or switchesback amounting to8,123.78 Yuan.Including majoramount of bad debtprovision that switch-back or taken back in the Period:
In RMB
Company | Amount switch back or taken back | Way |
Nil
(3)Account receivable actual charge off in the period
In RMB
Item | 核销金额 |
Major charge-off for the major receivable:
In RMB
Company | Nature | Amount charge-off | Reasons | Charge –off procedures | Resulted by related transaction (Y/N) |
Explanation:
Nil
(4) Top five receivables collected by arrears party at ending balance
Name | Closing balance | Proportion of |
(5) Account receivable derecognition due to financial assets transfer
Nil
(6) Assets and liabilities resulted by account receivable transfer and continues involvement
NilOther explanation:
Nil
4. Prepayments(1) Prepayments listed by account age
In RMB
Account age | Closing balance | Opening balance | ||
Amount | Proportion | Amount | Proportion | |
Within one year | 24,066,072.03 | 98.85% | 937,895.64 | 99.42% |
1-2 year | 54,266.97 | 0.22% | 3,732.52 | 0.40% |
2-3 year | 225,369.97 | 0.93% | 1,699.85 | 0.18% |
Total | 24,345,708.97 | -- | 943,328.01 | -- |
Explanation on prepayments with over one year in age and reasons of un-settle:
Nil
the total amount of advance payment (%) | ||
Qingdao Haidayuan purchasing Service Co., Ltd. | 86,684,100.72 | 47.94% |
Hong Kong Yutian International Investment Co., Ltd. | 34,850,150.19 | 19.27% |
View Sonic Technology (China) Co., Ltd. | 16,244,585.02 | 8.98% |
TCL Air-Conditioner (Wuhan) Co., Ltd. | 18,623,391.95 | 10.30% |
Wuhan Edmund Polytron Technology Co., Ltd. | 4,239,952.77 | 2.35% |
Total | 160,642,180.65 | 88.85% |
(2) Top 5 prepayments collected by objects at ending balance
Company | Ending balance | Ratio in total prepayments (%) |
Haier Digital Technology (Qingdao) Co., Ltd. | 7,271,076.69 | 29.87% |
Guangdong Yizhimi Precision Injection Tech.Co., Ltd | 4,158,000.00 | 17.08% |
Guangzhou Shiyuan Electronic Technology Co., Ltd. | 1,946,225.29 | 7.99% |
Kunshan Zhongji Mould Co., Ltd. | 1,916,600.00 | 7.87% |
Wuhan Qingkai Construction Group Co., Ltd. | 1,543,609.80 | 6.34% |
Total | 16,835,511.78 | 69.15% |
Other explanation:
Nil
5. Other account receivable(1) Category of other account receivable
In RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
Amount | Proportion | Amount | Accrual ratio | Amount | Proportion | Amount | Accrual ratio | |||
Other account receivable with single significant amount and withdrawal bad debt provision separately | 6,722,602.71 | 26.60% | 6,722,602.71 | 100.00% | 0.00 | 6,722,602.71 | 34.28% | 6,722,602.71 | 100.00% | 0.00 |
Other account receivable with bad debt provision | 10,186,648.94 | 40.31% | 193,093.72 | 1.90% | 9,993,555.22 | 4,528,823.44 | 23.09% | 193,093.72 | 4.26% | 4,335,729.72 |
accrual by portfolio | ||||||||||
Other account receivable with single minor amount but withdrawal single item bad debt provision | 8,359,643.58 | 33.08% | 8,359,643.58 | 100.00% | 0.00 | 8,359,643.58 | 42.63% | 8,359,643.58 | 100.00% | 0.00 |
Total | 25,268,895.23 | 100.00% | 15,275,340.01 | 9,993,555.22 | 19,611,069.73 | 100.00% | 15,275,340.01 | 4,335,729.72 |
Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Other account receivable (units) | Closing balance | |||
Other account receivable | Bad debt provision | Accrual ratio | Accrual reason | |
Shenzhen Jifang Investment Co., Ltd. | 1,071,160.00 | 1,071,160.00 | 100.00% | Partly recoverable |
Portman | 4,021,734.22 | 4,021,734.22 | 100.00% | Un-recyclable |
Without bad debt risk | ||||
Zhao Baomin | 553,901.68 | 553,901.68 | 100.00% | Un-recyclable |
Traffic accident compensation | 555,785.81 | 555,785.81 | 100.00% | Un-recyclable |
Hebei Botou Court | 520,021.00 | 520,021.00 | 100.00% | Un-recyclable |
Total | 6,722,602.71 | 6,722,602.71 | -- | -- |
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
In RMB
Account age | Closing balance | ||
Other account receivable | Bad debt provision | Accrual ratio | |
Sub-item of within one year | |||
Subtotal of within one year | 7,106,228.94 | ||
1-2 year | 2,943,020.00 | 151,873.72 | 5.16% |
Over 3 years | 137,400.00 | 41,220.00 | 30.00% |
Total | 10,186,648.94 | 193,093.72 |
Explanation on portfolio basis:
Withdrawing bad bed provision by percentage of total other accounts receivable outstanding in portfolio
□ Applicable √ Not applicable
Withdrawing bad bed provision by other methods in portfolio:
√ Applicable □ Not applicable
Other account receivable with single minor amount but withdrawal single item bad debt provision at period-end
Debtor | Book balance | Bad debt | Accrual ratio | Reasons |
Electricity fee in Gongming canteen | 489,214.70 | 489,214.70 | 100.00 | Uncollectible |
Jiantao (Fogang) Laminates Co., Ltd. | 465,528.10 | 465,528.10 | 100.00 | Uncollectible |
Labor union | 332,402.55 | 332,402.55 | 100.00 | Uncollectible |
Lu Wei | 290,000.00 | 290,000.00 | 100.00 | Uncollectible |
4/F hotel Dai Qiangbo | 194,569.00 | 194,569.00 | 100.00 | Uncollectible |
Chuangjing | 192,794.00 | 192,794.00 | 100.00 | Uncollectible |
Shenzhen Mingli Co., Ltd. | 170,394.84 | 170,394.84 | 100.00 | Uncollectible |
Other Units | 6,224,740.39 | 6,224,740.39 | 100.00 | Uncollectible |
Total | 8,359,643.58 | 8,359,643.58 | —— | —— |
(2) Bad debt provision accrual, switch-back or taken back in reporting period
Bad debt provision accrual was 0.00 Yuan; the amount collected or switches back amounting to 0.00 Yuan.Including major amount of bad debt provision that switch-back or taken back in the Period:
In RMB
Company | Amount switch-back or taken back | Way |
Nil
(3) Other receivables actually charge-off during the reporting period
In RMB
Item | Amount charge-off |
Major amount of other receivable charge-off:
In RMB
Company | Nature | Amount charge-off | Reasons | Charge –off procedures | Resulted by related transaction (Y/N) |
Explanation:
Nil
(4) Classify according to nature
In RMB
Nature | Ending book balance | Opening book balance |
Margin | 1,793,485.04 | 1,793,485.04 |
Borrow money | 1,785,713.06 | 2,190,666.85 |
Intercourse funds | 12,429,737.18 | 9,081,233.88 |
Rent receivable | 9,088,088.00 | 5,857,777.46 |
Other | 171,871.95 | 687,906.50 |
Total | 25,268,895.23 | 19,611,069.73 |
(5) Top 5 other receivables collected by arrears party at ending balance
In RMB
Company | Nature | Closing balance | Account age | Proportion in total other receivables at year-end | Ending balance of bad debt provision |
Portman | Rent receivable | 4,021,734.22 | Over 3 years | 15.92% | 4,021,734.22 |
Shenzhen Jifang Investment Co., Ltd. | Rent receivable | 1,071,160.00 | Over one year | 4.24% | 1,071,160.00 |
Wuwu Branch of Shenzhen Dachong Industrial Co., Ltd. | Premium for lease | 740,909.97 | Within one year | 2.93% | |
Zhao Baomin | Rent receivable | 553,901.68 | Over 3 years | 2.19% | 564,646.35 |
Traffic accident compensation | Intercourse funds | 555,785.81 | Over 3 years | 2.20% | 555,785.81 |
Total | -- | 6,943,491.68 | -- | 6,213,326.38 |
(6) Account receivables related to government subsidies
In RMB
Company | Name of subsidy | Closing balance | Account age at period-end | Time, amount and basis for recovery expectation |
Nil
(7) Other receivable for termination of confirmation due to the transfer of financial assets
Nil
(8) The amount of assets and liabilities that are transferred other receivable and continued to be involved
NilOther explanation;Nil
6. Inventory(1)Category of inventory
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Provision for price fall-down | Book value | Book balance | Provision for price fall-down | Book value | |
Raw materials | 30,601,378.64 | 937,858.86 | 29,663,519.78 | 29,640,518.78 | 937,858.86 | 28,702,659.92 |
Goods in process | 739,156.75 | 739,156.75 | 119,575.09 | 119,575.09 | ||
Inventory goods | 23,088,750.36 | 1,660,379.81 | 21,428,370.55 | 29,291,605.18 | 1,660,379.81 | 27,631,225.37 |
Revolving material | 0.00 | |||||
Consumptive biological assets | 0.00 | |||||
Assets without settled but completed resulted from construction contract | 0.00 | |||||
Low priced and easily worn | 721,411.93 | 85,692.51 | 635,719.42 | 587,236.21 | 85,692.51 | 501,543.70 |
articles | ||||||
Homemade semi-finished products | 3,134,807.69 | 1,444.25 | 3,133,363.44 | 3,433,461.82 | 1,444.25 | 3,432,017.57 |
Total | 58,285,505.37 | 2,685,375.43 | 55,600,129.94 | 63,072,397.08 | 2,685,375.43 | 60,387,021.65 |
Does the Company comply with the disclosure requirement of “Information Disclosure Guidelines of Shenzhen Stock ExchangeNo.4 – Listed Companies Engaged in Seed Industry and Planting Business” or not
No
(2) Provision for price fall-down
In RMB
Item | Opening balance | Current increased | Current decreased | Closing balance | ||
Accrual | Other | Switch back or Written-off | Other | |||
Raw materials | 937,858.86 | 937,858.86 | ||||
Inventory goods | 1,660,379.81 | 1,660,379.81 | ||||
Low priced and easily worn articles | 85,692.51 | 85,692.51 | ||||
Homemade semi-finished products | 1,444.25 | 1,444.25 | ||||
Work in process-outsourced | ||||||
Total | 2,685,375.43 | 2,685,375.43 |
Nil
(3) Explanation on capitalization of borrowing costs in ending balance of inventory
Nil
(4) Assets completed without settle resulted by construction contract at period-end
In RMB
Item | Amount |
Other explanation:
Nil
7. Other current assets
In RMB
Item | Closing balance | Opening balance |
Value-added tax to be deducted | 3,938.71 | 9,996.21 |
Advance payment of income tax | 42,314.30 | 42,314.30 |
Total | 46,253.01 | 52,310.51 |
Other explanation:
Nil
8. Investment real estate(1) Investment real estate measured at cost
√ Applicable □ Not applicable
In RMB
Item | House and building | Land use right | Construction in process | Total |
I. Original book value | ||||
1.Opening balance | 133,661,686.94 | 133,661,686.94 | ||
2.Current increased | ||||
(1) outsourcing | ||||
(2) inventory\fixed assets\construction in process transfer-in | ||||
(3) increased by combination | ||||
3.Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Closing balance | 133,661,686.94 | 133,661,686.94 |
II. Accumulated depreciation and accumulated amortization | ||||
1.Opening balance | 81,250,728.32 | 81,250,728.32 | ||
2.Current increased | 864,914.32 | 864,914.32 | ||
(1) accrual or amortization | 867,939.18 | 867,939.18 | ||
3.Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Closing balance | 82,115,642.64 | 82,115,642.64 | ||
III. Depreciation reserves | ||||
1.Opening balance | ||||
2.Current increased | ||||
(1) accrual | ||||
3. Current decreased | ||||
(1) disposal | ||||
(2) other transfer-out | ||||
4.Closing balance | ||||
IV. Book value | ||||
1. Ending Book value | 51,546,044.30 | 51,546,044.30 | ||
2. Opening Book value | 52,410,958.62 | 52,410,958.62 |
(2) Investment real estate measure on fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
In RMB
Item | Book value | Reasons without certification |
Other explanationNil
9. Fixed assets(1) Fixed assets
In RMB
Item | House and building | Machine equipment | Transportation equipment | Tool equipment | Office equipment | Mold equipment | Instrument equipment | Total |
I. Original book value: | ||||||||
1.Opening balance | 65,608,798.85 | 80,158,724.83 | 6,431,855.00 | 5,467,996.48 | 6,981,463.85 | 14,876,405.89 | 3,051,926.44 | 182,577,171.34 |
2.Current increased | 1,576,581.17 | 1,894,538.02 | 84,856.64 | 4,294,466.51 | 204,849.58 | 8,055,291.92 | ||
(1)purchasing | 1,576,581.17 | 1,894,538.02 | 84,856.64 | 4,294,466.51 | 204,849.58 | 8,055,291.92 | ||
(2)construction in progress transfer-in | ||||||||
(3) increased by combination | ||||||||
3.Current decreased | 2,865,431.49 | 367,719.13 | 105,003.18 | 3,041,377.31 | 78,743.40 | 6,458,274.51 | ||
(1) disposal or scrapping | 2,865,431.49 | 367,719.13 | 105,003.18 | 3,041,377.31 | 78,743.40 | 6,458,274.51 | ||
4.Closing balance | 65,608,798.85 | 78,869,874.51 | 6,431,855.00 | 6,994,815.37 | 6,961,317.31 | 16,129,495.09 | 3,178,032.62 | 184,174,188.75 |
II. Accumulative depreciation | ||||||||
1.Opening balance | ||||||||
2.Current increased | ||||||||
(1) accrual | ||||||||
3.Current decreased | ||||||||
(1) disposal or scrapping | ||||||||
4.Closing balance | ||||||||
III. Depreciation reserves | ||||||||
1.Opening balance | 14,843,969.68 | 58,679,845.60 | 3,568,166.13 | 3,108,608.37 | 5,484,551.40 | 10,775,284.39 | 2,496,903.38 | 98,957,328.95 |
2.Current increased | 2,650,840.26 | 1,839,287.34 | 332,203.14 | 372,195.25 | 142,988.05 | 1,095,405.29 | 52,260.93 | 6,485,180.26 |
(1) accrual | 2,650,840.26 | 1,839,287.34 | 332,203.14 | 372,195.25 | 142,988.05 | 1,095,405.29 | 52,260.93 | 6,485,180.26 |
3.Current decreased | 2,426,843.63 | 285,057.98 | 94,502.91 | 2,737,239.58 | 70,869.05 | 5,614,513.15 | ||
(1) disposal or scrapping | 2,426,843.63 | 285,057.98 | 94,502.91 | 2,737,239.58 | 70,869.05 | 5,614,513.15 | ||
4.Closing balance | 17,494,809.94 | 58,092,289.31 | 3,900,369.27 | 3,195,745.64 | 5,533,036.54 | 9,133,450.10 | 2,478,295.26 | 99,827,996.06 |
IV. Book value | ||||||||
1. Ending Book value | 48,113,988.91 | 20,777,585.20 | 2,531,485.73 | 3,799,069.73 | 1,428,280.77 | 6,996,044.99 | 699,737.36 | 84,346,192.69 |
2.Opening Book value | 50,764,829.17 | 21,478,879.23 | 2,863,688.87 | 2,359,388.11 | 1,496,912.45 | 4,101,121.50 | 555,023.06 | 83,619,842.39 |
(2) Fixed assets leasing-out by operational lease
In RMB
Item | Ending book value |
House and building | 905,391.76 |
10. Construction in progress(1) Construction in progress
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Transformation | 654,356.00 | 654,356.00 | 654,356.00 | 654,356.00 |
project of Huafa Building | ||||||
Construction of enclosure in Guangming Huafa Industry Park | 518,400.00 | 518,400.00 | ||||
New injection molding workshop | 7,068.87 | 7,068.87 | ||||
Total | 1,179,824.87 | 1,179,824.87 | 654,356.00 | 654,356.00 |
(2) change of major construction in process in the period
In RMB
Item | Budget | Opening balance | Current increased | Fixed assets transfer-in in the Period | Other decreased in the Period | Closing balance | Proportion of project investment in budget | Progress | Accumulated amount of interest capitalization | including: interest capitalized amount of the year | Interest capitalization rate of the year | Source of funds |
Transformation project of Huafa Building | 654,356.00 | 654,356.00 | ||||||||||
Construction of enclosure in Guangming Huafa Industry Park | 518,400.00 | 518,400.00 |
New injection molding workshop | 7,068.87 | 7,068.87 | ||||||||||
Total | 654,356.00 | 525,468.87 | 1,179,824.87 | -- | -- | -- |
11. Disposal of fixed assets
In RMB
Item | Closing balance | Opening balance |
Gongming Huafa Electronic City | 92,857,471.69 | 92,857,471.69 |
Total | 92,857,471.69 | 92,857,471.69 |
Other explanation:
Assets held for sale transfer-in
12. Intangible assets(1) Intangible assets
In RMB
Item | Land use right | Patent right | Non-patented technology | Software costs | Total |
I. Original book value | |||||
1.Opening balance | 55,089,774.36 | 661,878.97 | 55,751,653.33 | ||
2.Current increased | |||||
(1) purchasing | |||||
(2) internal R&D | |||||
(3) increased by combination | |||||
3.Current |
decreased | |||||
(1) disposal | |||||
4.Closing balance | 55,089,774.36 | 661,878.97 | 55,751,653.33 | ||
II. Accumulated amortization | |||||
1.Opening balance | 11,992,276.93 | 452,060.03 | 12,444,336.96 | ||
2.Current increased | 720,870.35 | 24,942.96 | 745,813.31 | ||
(1) accrual | 720,870.35 | 24,942.96 | 745,813.31 | ||
3.Current decreased | |||||
(1) disposal | |||||
4.Closing balance | 12,713,147.28 | 477,002.99 | 13,190,150.27 | ||
III. Depreciation reserves | |||||
1.Opening balance | |||||
2.Current increased | |||||
(1) accrual | |||||
3.Current decreased | |||||
(1) disposal | |||||
4.Closing balance | |||||
IV. Book value | |||||
1. Ending Book value | 42,376,627.08 | 184,875.98 | 42,561,503.06 |
2.Opening Book value | 43,097,497.43 | 209,818.94 | 43,307,316.37 |
The proportion of intangible assets form by internal R&D in total book value of intangible assets at period-end was 0.00%
13. Long-term deferred expenditure
In RMB
Item | Opening balance | Current increased | Amortized in Period | Other decreased | Closing balance |
Golf membership fee | 141,666.55 | 25,000.02 | 116,666.53 | ||
Cloud service charge | 697,007.55 | 38,722.64 | 658,284.91 | ||
Total | 141,666.55 | 697,007.55 | 63,722.66 | 774,951.44 |
Other explanationNil
14. Deferred income tax asset /deferred income tax liability(1) Deferred income tax assets un-offset
In RMB
Item | Closing balance | Opening balance | ||
Deductible temporary differences | Deferred income tax asset | Deductible temporary differences | Deferred income tax asset | |
Provision for impairment of assets | 30,230,614.99 | 7,286,148.16 | 27,949,536.92 | 6,715,066.24 |
Estimated liabilities | 64,411.00 | 16,102.75 | 64,411.00 | 16,102.75 |
Total | 30,295,025.99 | 7,302,250.91 | 28,013,947.92 | 6,731,168.99 |
(2) Deferred income tax liability un-trade off
In RMB
Item | Closing balance | Opening balance | ||
Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities |
(3) Amount of deferred income tax asset and deferred income tax liability after trade-off
In RMB
Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
Deferred income tax asset | 7,302,250.91 | 6,731,168.99 |
(4) Deferred income tax asset without confirmed
In RMB
Item | Closing balance | Opening balance |
Deductible temporary difference | 3,172,018.51 | |
Deductible loss | 525,348.33 | 525,348.30 |
Total | 525,348.33 | 3,697,366.81 |
(5) Deductible losses of deferred income tax asset without confirmed will expired in later year
In RMB
Year | Closing amount | Opening amount | Note |
2018 | 525,348.33 | 525,348.33 | |
2019 | |||
Total | 525,348.33 | 525,348.33 | -- |
Other explanation:
Nil
15. Other non-current assets
In RMB
Item | Closing balance | Opening balance |
Account paid in advance for mould | 1,934,800.00 | |
Total | 1,934,800.00 |
Other explanation:
Nil
16. Short-term borrowing(1) Category of short-term borrowing
In RMB
Item | Closing balance | Opening balance |
Loan in pledge | 8,500,000.00 | 8,500,000.00 |
Guaranteed loan | 5,000,000.00 | 20,000,000.00 |
Collateral loan | 138,775,976.01 | 138,120,264.81 |
Total | 152,275,976.01 | 166,620,264.81 |
Other explanation:
Nil
17. Note payable
In RMB
Category | Closing balance | Opening balance |
Bank acceptance bill | 15,635,598.71 | 17,810,270.28 |
Total | 15,635,598.71 | 17,810,270.28 |
Totally 0 Yuan due note payable are paid at period-end
18. Account payable(1) Account payable
In RMB
Item | Closing balance | Opening balance |
Within one year (one year included) | 50,577,515.81 | 71,817,382.90 |
Over one year | 9,936,784.52 | 12,187,487.83 |
Total | 60,514,300.33 | 84,004,870.73 |
(2) Major account payable over one year
In RMB
Item | Closing balance | Reasons of un-paid or carry-over |
Shenzhen Yuehai Global Logistics Co., Ltd. | 2,858,885.97 | Unsettled |
Taiwan LG Company | 1,906,267.50 | Unsettled |
Total | 4,765,153.47 | -- |
Other explanation:
Nil
19. Account received in advance(1) Account received in advance
In RMB
Item | Closing balance | Opening balance |
Within one year (one year included) | 216,292.28 | 234,017.18 |
Over one year | 44,810.00 | 44,111.00 |
Total | 261,102.28 | 278,128.18 |
20. Salary payable(1) Salary payable
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
I. Short-term compensation | 5,088,451.75 | 31,784,963.64 | 33,254,971.45 | 3,618,443.94 |
II. Post-employment welfare- defined contribution plans | -5,093.82 | 2,203,579.59 | 2,203,579.59 | -5,093.82 |
III. Dismiss welfare | 45,365.00 | 45,365.00 | ||
Total | 5,083,357.93 | 34,033,908.23 | 35,503,916.04 | 3,613,350.12 |
(2) Short-term compensation
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
1. Wages , bonuses, allowances and subsidies | 4,039,310.19 | 27,586,584.41 | 29,021,199.18 | 2,604,695.42 |
2. Welfare for workers and staff | 27,109.00 | 2,660,218.57 | 2,672,033.77 | 15,293.80 |
3. Social insurance | 23,041.98 | 1,301,496.94 | 1,325,074.78 | -535.86 |
Including: Medical insurance | 23,041.98 | 1,128,989.87 | 1,152,567.71 | -535.86 |
Work injury insurance | 95,048.43 | 95,048.43 |
Maternity insurance | 77,458.64 | 77,458.64 | ||
4. Housing accumulation fund | 24,310.00 | 229,798.32 | 229,798.32 | 24,310.00 |
5. Labor union expenditure and personnel education expense | 974,680.58 | 6,865.40 | 6,865.40 | 974,680.58 |
Total | 5,088,451.75 | 31,784,963.64 | 33,254,971.45 | 3,618,443.94 |
(3) Defined contribution plans
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
1. Basic endowment insurance | -5,093.82 | 2,129,843.75 | 2,129,843.75 | -5,093.82 |
2. Unemployment insurance | 73,735.84 | 73,735.84 | ||
Total | -5,093.82 | 2,203,579.59 | 2,203,579.59 | -5,093.82 |
Other explanation:
Nil
21. Tax payable
In RMB
Item | Closing balance | Opening balance |
Value-added tax | 3,791,391.72 | 5,473,037.12 |
Enterprise income tax | 5,323,140.64 | 5,228,514.39 |
Individual income tax | 33,669.11 | 20,213.76 |
Urban maintenance and construction tax | 164,194.41 | 1,447,509.59 |
House property tax | 511,467.49 | 743,004.72 |
Land use tax | 324,546.95 | 324,212.74 |
Education surcharge | 67,115.26 | 621,129.51 |
Local education surcharge | 41,726.83 | 322,572.35 |
Dike fee | 1,665.00 | 1,665.00 |
Stamp tax | 28,930.10 | 34,988.50 |
Disposal fund of waste electrical | 274,970.00 | 919,430.00 |
products | ||
Total | 10,562,817.51 | 15,136,277.68 |
Other explanation:
22. Interest payable
In RMB
Item | Closing balance | Opening balance |
Interest of short-term loans payable | 136,176.72 | 164,895.80 |
Total | 136,176.72 | 164,895.80 |
Significant overdue and unpaid interest:
In RMB
Loan unit | Overdue amount | Reason for overdue |
Other explanation:
Nil
23. Other payable(1) Classification of other payable according to nature of account
In RMB
Item | Closing balance | Opening balance |
Margin and deposit | 8,315,421.11 | 6,280,204.22 |
Lease management fee | 1,063,840.72 | 2,307,901.27 |
Intercourse funds | 13,919,880.52 | 6,534,652.44 |
After sale and repairmen | 1,726,191.16 | 2,384,774.18 |
Other | 2,043,860.76 | 2,419,744.84 |
Total | 27,069,194.27 | 19,927,276.95 |
(2) Significant other payable with over one year age
In RMB
Item | Closing balance | Reasons of un-paid or carry-over |
Shenzhen SED Property Development Co., Ltd. | 1,244,058.55 | Unsettled |
Shenzhen Huayongxing Environmental Protection Technology Co., Ltd. | 1,000,000.00 | Deposit |
Linghang Technology (Shenzhen) Co., | 656,345.28 | Unsettled |
Ltd. | ||
Shenzhen Tongxing Electronics Co., Ltd. | 578,259.83 | Unsettled |
Shenzhen Yongdasheng Investment Development Co., Ltd. | 558,970.00 | Deposit |
Total | 4,037,633.66 | -- |
Other explanationNil
24. Accrued liabilities
In RMB
Item | Closing balance | Opening balance | Causes |
Pending action | 64,411.00 | 64,411.00 | |
Total | 64,411.00 | 64,411.00 | -- |
Other explanations, including important assumptions and estimation about important estimated liabilities:
Business and labor disputes
25. Share capital
In RMB
Opening balance | Changes in the Period (+,-) | Closing balance | |||||
Issuing new shares | Bonus shares | Shares transfer from public reserves | Other | Subtotal | |||
Total shares | 283,161,227.00 | 283,161,227.00 |
Other explanation:
Ended as 30 June 2018, the shares of the Company held by controlling shareholder has 116,100,000 shares in status of pledge, taking41% of the total share capital; mortgagee is China Merchants Securities Assets Management Co., Ltd. Shares in judicial freezeamounted as 116,489,894 shares. The mortgage expired on 31 December 2017. The prompted notice on pledge from controllingshareholder was released on 1 Feb. 2018
26. Capital public reserve
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
Capital premium (equity premium) | 96,501,903.02 | 96,501,903.02 |
Other capital surplus | 50,085,368.48 | 50,085,368.48 | ||
Total | 146,587,271.50 | 146,587,271.50 |
Other explanation, including changes and reasons of changes:
Nil
27. Surplus reserves
In RMB
Item | Opening balance | Increase during the period | Decrease during this period | Closing balance |
Statutory surplus reserves | 21,322,617.25 | 21,322,617.25 | ||
Discretionary surplus reserve | 56,068,976.00 | 56,068,976.00 | ||
Total | 77,391,593.25 | 77,391,593.25 |
Other explanation, including changes and reasons for changes:
Nil
28. Retained profit
In RMB
Item | Current period | Last period |
Retained profit at the end of the previous period before adjustment | -186,467,113.73 | -187,441,523.12 |
Retained profit at period-begin after adjustment | -186,467,113.73 | -187,441,523.12 |
Add: net profit attributable to owners of the parent company | 2,793,133.60 | 974,409.39 |
Retained profit at period-end | -183,673,980.13 | -186,467,113.73 |
Details about adjusting the retained profits at the beginning of the period:
1) The retroactive adjustments to Accounting Standards for Business Enterprises and its relevant new regulations affect the retainedprofits at the beginning of the period amounting to 0 Yuan.2) The changes in accounting policies affect the retained profits at the beginning of the period amounting to 0 Yuan.3) The major accounting error correction affects the retained profits at the beginning of the period amounting to 2,530,667.50 Yuan4) Merge scope changes caused by the same control affect the retained profits at the beginning of the period amounting to 0 Yuan.5) Other adjustments affect the retained profits at the beginning of the period amounting to 0 Yuan
29. Operating income and cost
In RMB
Item | Current Period | Last Period | ||
Income | Cost | Income | Cost |
Main business | 318,222,786.98 | 295,038,716.84 | 418,264,065.34 | 396,452,152.81 |
Other business | 22,762,056.26 | 7,544,262.60 | 21,216,078.83 | 2,461,772.27 |
Total | 340,984,843.24 | 302,582,979.44 | 439,480,144.17 | 398,913,925.08 |
31. Tax and surcharges
In RMB
Item | Current Period | Last Period |
City maintenance and construction tax | 266,947.39 | 171,863.36 |
Educational surtax | 159,757.95 | 99,530.65 |
House property tax | 232,452.12 | 1,349,909.12 |
Land use tax | 663,931.20 | 432,592.87 |
Stamp tax | 217,911.90 | 245,831.90 |
Local education development fee | 166,492.83 | 14,603.93 |
Vehicle use tax | 4,800.00 | 3,555.62 |
Total | 1,712,293.39 | 2,317,887.45 |
Other explanation:
Nil
31. Sales expenses
In RMB
Item | Current Period | Last Period |
Employee compensation | 2,301,867.88 | 2,485,833.89 |
Transportation fee | 2,334,595.10 | 2,120,964.03 |
Commodity inspection fee | 335,545.03 | 425,265.68 |
Customs fee | 84,390.47 | 10,754.07 |
Commodity loss | 1,556,975.69 | 486,106.38 |
Other | 1,819,989.14 | 1,834,127.81 |
Total | 8,433,363.31 | 7,363,051.86 |
Other explanation:
Nil
32. Administrative expenses
In RMB
Item | Current Period | Last Period |
Salary | 4,210,697.93 | 4,544,763.62 |
Depreciation charge | 2,586,727.68 | 2,821,716.89 |
Social insurance premium | 1,219,441.85 | 1,744,892.34 |
Entertainment expenses | 1,336,624.80 | 1,480,848.53 |
Taxes and surcharges | 0.00 | 0.00 |
Employee benefits | 900,960.35 | 1,210,380.49 |
Travel expenses | 1,086,267.27 | 2,451,878.65 |
Amortization of intangible assets | 745,813.31 | 710,910.93 |
Transportation fee | 1,047,578.29 | 552,799.31 |
Consulting fee | 565,076.31 | 1,201,427.16 |
Security fee | 710,066.72 | 1,010,168.29 |
Repairs fee | 839,233.34 | 957,282.03 |
Audit fee | 624,271.85 | 972,000.00 |
Office allowance | 527,020.48 | 397,708.36 |
Communication fee | 166,858.35 | 148,788.78 |
Amortization of low cost and short lived articles | 488,293.61 | 174,265.51 |
Securities information disclosure fee | 188,679.24 | 560,425.00 |
Litigation fee | 0.00 | 10.00 |
Staff education and labor union expenditure | 35,034.65 | 53,821.70 |
Water and electricity fee | 272,971.66 | 149,863.85 |
Lease fee | 2,298,165.79 | 2,246,800.90 |
Environment protection costs | 90,598.66 | 127,614.00 |
Insurance fee | 164,030.73 | 50,736.43 |
Other expenses | 296,572.55 | 516,853.97 |
Total | 20,400,985.42 | 24,085,956.74 |
Other explanation:
Nil
33. Financial expenses
In RMB
Item | Current Period | Last Period |
Interest costs | 5,989,883.31 | 4,180,114.84 |
Less: interest income | 349,858.59 | 794,663.73 |
Add: exchange loss | -297,171.10 | 1,209,235.54 |
Add: Other expense | 104,216.60 | 320,203.81 |
Total | 5,447,070.22 | 4,914,890.46 |
Other explanation:
Nil
34. Losses on assets impairment
In RMB
Item | Current Period | Last Period |
I. Bad debt losses | 5,941.50 | -93,425.39 |
Total | 5,941.50 | -93,425.39 |
Other explanation:
35. Gains on investment
In RMB
Item | Current Period | Last Period |
Investment income generated by financial products | 245,679.10 | |
Total | 245,679.10 |
Other explanation:
Nil
36. Asset disposal income
In RMB
Source of asset disposal income | Current Period | Last Period |
Income from fixed assets disposal | 205,240.98 | 1,549.73 |
37. Non-operating income
In RMB
Item | Current Period | Last Period | Amount reckoned in current non-recurring gains/losses |
Government subsidy | 771,800.00 | 802,269.68 | 771,800.00 |
Receive donations | 51,500.00 | ||
Unable to pay | 7,130.19 | ||
Penalty revenue | 48,833.89 |
Fine income | 115,862.07 | 16,000.00 | |
Total | 887,662.07 | 925,733.76 |
Government subsidy reckoned into current gains/losses:
In RMB
Item | Issuing subject | Offering causes | Nature | Subsidy impact current gains/losses (Y/N) | The special subsidy (Y/N) | Amount in the Period | Amount in last period | Assets-related/income-related |
Technology innovation platform subsidy for 2017 | Economic & Information Bureau of Caidian District, Wuhan | Subsidy | Subsidy for research and development, technical reforming and reconstruction | N | Y | 300,000.00 | Income-related | |
Business development guidance fund | Caidian Bureau of Finance, Wuhan | Reward | Subsidy obtained for conforms with the local support policy for investment incentive to encourage investment | N | Y | 150,000.00 | Income-related | |
Nurturing enterprise subsidy | Wuhan Science & Technology Board (Wuhan Intellectual Property Office) | Subsidy | Subsidy obtained for conforms with the local support policy for investment incentive to encourage | N | Y | 50,000.00 | Income-related |
investment | ||||||||
Municipal foreign economic & trade funds for 2018 | Treasury receipts & payments sub-branch of Wuhan Municipal Finance Bureau | Reward | Subsidy obtained for conforms with the local support policy for investment incentive to encourage investment | N | Y | 271,800.00 | Income-related | |
Total | -- | -- | -- | -- | -- | 771,800.00 | -- |
Other explanation:
Nil
38. Non-operating expenditure
In RMB
Item | Current Period | Last Period | Amount included in current non-recurring profits or losses |
Penalty expenditure | 40,000.00 | 40,000.00 | |
Other | 132,857.64 | 50.88 | 132,857.64 |
Total | 172,806.76 | 50.88 |
Other explanation:
Nil
39. Income tax expenses(1) Statement of income tax expense
In RMB
Item | Current Period | Last Period |
Current income tax expense | 908,807.04 | 746,392.92 |
Deferred income tax expense | -444,975.63 | -22,646.01 |
Total | 463,831.41 | 723,746.91 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
Item | Current Period |
Total profit | 3,256,965.01 |
Income tax based on statutory/applicable rate | 814,241.25 |
Impact by different tax rate applied by subsidies | -605,871.37 |
Impact by the deductible losses of the un-recognized previous deferred income tax | 127,324.86 |
Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 128,136.67 |
Income tax expense | 463,831.41 |
Other explanationNil
40. Items of statement of cash flow(1) Other cash received in relation to operation activities
In RMB
Item | Current Period | Last Period |
Unit intercourse account | 1,042,828.59 | 614,876.45 |
Collection management fee and utilities etc. | 601,727.14 | 159,474.66 |
Repayment from employees | 22,608.36 | 23,555.74 |
Margin | 500,000.00 | 15,271.20 |
Interest income | 71,314.28 | 290,268.10 |
Government grants | 771,800.00 | 802,269.68 |
Total | 3,010,278.37 | 1,905,715.83 |
Explanation on other cash received in relation to operation activities:
Including collecting water & electricity charges and management fees, government grants, margin and other intercourse funds
(2) Other cash paid in relation to operation activities
In RMB
Item | Current Period | Last Period |
Unit intercourse account | 1,840,448.01 | 412,358.54 |
Advances to employees | 1,046,817.78 | 3,937,524.56 |
Litigation fee | 249,530.00 | |
Margin, deposit | 831,867.00 | 441,370.00 |
Entertainment expense | 1,166,779.68 | 1,220,133.12 |
Water and electricity | 2,270,904.17 | 1,623,214.94 |
Travel expenses | 849,867.40 | 1,394,764.69 |
Traffic expenses | 2,336,595.10 | 2,120,964.03 |
Car fare | 620,026.07 | 739,779.60 |
Repairs | 965,726.34 | 956,708.92 |
Audit fees, consulting fees | 1,037,410.89 | 2,686,552.16 |
Security | 218,400.00 | 218,400.00 |
Financial institutions handling fee | 103,694.09 | 213,790.21 |
Office expenses | 408,916.56 | 457,621.51 |
Communication fee | 195,355.57 | 153,528.16 |
Lease fee | 2,418,018.66 | 2,233,640.64 |
Other | 1,107,946.89 | 1,232,487.44 |
Total | 17,668,304.21 | 20,042,838.52 |
Explanation on other cash paid in relation to operation activities:
Including management expenses, sales expenses, individual intercourse fund, margin, collecting water & electricity charges andmanagement fees
41. Supplementary information to statement of cash flow(1) Supplementary information to statement of cash flow
In RMB
Supplementary information | Current Period | Last Period |
1. Net profit adjusted to cash flow of operation activities: | -- | -- |
Net profit | 2,793,133.60 | 2,146,472.00 |
Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 7,322,855.85 | 6,822,408.28 |
Amortization of intangible assets | 709,576.88 | 710,910.93 |
Amortization of long-term deferred expenses | 63,722.66 | 35,450.04 |
Loss from disposal of fixed assets, intangible assets and other long-term assets(gain is listed with “-”) | 333,454.38 | 227,675.02 |
Loss from discarding fixed assets as useless (gain is listed with “-”) | 34,871.67 |
Financial expenses (gain is listed with “-”) | 5,536,037.89 | 5,488,969.99 |
Investment loss (income is listed with “-”) | -245,679.10 | |
Decrease of deferred income tax assets (increase is listed with “-”) | 1,218.57 | |
Decrease of inventory (increase is listed with “-”) | 4,786,891.71 | -5,264,207.79 |
Decrease of operating receivable accounts (increase is listed with “-”) | -15,034,088.55 | -74,799,461.03 |
Increase of operating payable accounts (decrease is listed with “-”) | -32,938,449.52 | 29,199,543.97 |
Net cash flow arising from operating activities | -26,671,325.63 | -35,397,366.92 |
2. Material investment and financing not involved in cash flow: | -- | -- |
3. Net change of cash and cash equivalents: | -- | -- |
Balance of cash at period end | 23,838,986.21 | 59,595,073.48 |
Less: Balance of cash at period-begin | 66,240,945.59 | 91,310,804.48 |
Add: Balance of cash equivalent at period-end | 3,256,408.54 | 12,249,684.85 |
Less: Balance of cash equivalent at period-begin | 15,234,028.71 | 12,704,508.49 |
Net increasing of cash and cash equivalents | -54,379,579.55 | -32,170,554.64 |
(2) Constitution of cash and cash equivalent:
In RMB
Item | Closing balance | Opening balance |
Ⅰ. Cash | 23,838,986.21 | 66,240,945.59 |
Including: Cash on hand | 270,703.35 | 170,053.77 |
Bank deposit available for payment at any time | 23,568,282.86 | 66,070,891.82 |
II. Cash equivalent | 3,256,408.54 | 15,234,028.71 |
Note receivable due within three months | 3,256,408.54 | 15,234,028.71 |
Ⅲ. Balance of cash and cash equivalent at period-end | 27,095,394.75 | 81,474,974.30 |
Other explanation:
Monetary fund at year-end-other monetary fund refers to the bank acceptance bond 7,335,941.28 Yuan, which is not belonging to the
cash and cash equivalent. At end of the year, among the note receivable due within 3 months, the 3,432,776.86 Yuan are used forpledge, which is not belongs to cash and cash equivalent.
42. Assets with ownership or use right restricted
In RMB
Item | Ending book value | Restriction reasons |
Monetary Fund | 7,335,941.28 | Bank acceptance bill |
Notes receivable | 8,332,469.80 | Pledge |
Fixed assets | 43,965,447.66 | Bank loan secured |
Intangible assets | 37,605,499.26 | Bank loan secured |
Accounts receivable | 8,831,544.63 | Pledge |
Investment real estate | 39,197,344.30 | Bank loan secured |
Liquidation of fixed assets | 92,857,471.69 | Court closure |
Total | 238,125,718.62 | -- |
Other explanation:
Nil
43. Item of foreign currency(1) Item of foreign currency
In RMB
Item | Closing balance of foreign currency | Rate of conversion | Ending RMB balance converted |
Including: USD | 8,129.64 | 6.6157 | 53,783.26 |
HKD | 32.65 | 0.7997 | 26.11 |
Including: USD | 5,498,355.82 | 6.6157 | 36,375,472.60 |
Advance account | |||
Including: USD | 54,448.00 | 6.6157 | 360,211.63 |
Short term loan | |||
Including: USD | 3,593,871.55 | 6.6157 | 23,775,976.01 |
Account payable | |||
Including: USD | 3,058,003.88 | 6.6157 | 20,230,836.27 |
Other explanation:
Nil
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √ Not applicable
VIII. Equity in other entity
1. Equity in subsidiary(1) Constitute of enterprise group
Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
Directly | Indirectly | |||||
Huafa Lease | Shenzhen | Shenzhen | Property management | 60.00% | Investment establishment | |
Huafa Property | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
Hengfa Technology | Wuhan | Wuhan | Production and sales | 100.00% | Investment establishment | |
Huafa Hengtian | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment | |
Huafa Hengtai | Shenzhen | Shenzhen | Property management | 100.00% | Investment establishment |
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
NilBasis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with overhalf and over voting rights:
NilControlling basis for the structuring entity included in consolidated range:
NilBasis on determining to be an agent or consignor:
NilOther explanation:
Nil
IX. Related party and related transactions
1. Parent company of the enterprise
Parent company | Registration place | Business nature | Registered capital | Share-holding | Voting right ratio |
ratio on the enterprise for parent company | on the enterprise | ||||
Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd. | Wuhan | Production and sales, real estate development and sales, housing leasing and management | 34.5 million Yuan | 41.14% | 41.14% |
Explanation on parent company of the enterpriseNilThe ultimate control of the enterprise is Li Zhongqiu.Other explanation:
Nil
2. Subsidiary of the Enterprise
Found more in VIII. Equity in other entity in the Note
3. Other related party
Other related party | Relationship with the Enterprise |
Shenzhen Zhongheng Huafa Science and Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Hengsheng Yutian Industrial Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Hengsheng Photoelectricity Industry Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Hong Kong Yutian International Investment Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan New Oriental Real Estate Development Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Zhongheng Property Management Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Optical Valley Display System Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Yutian Xingye Property Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Yutian Dongfang Property Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Xiahua Zhongheng Electronics Co. Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Zhongheng Yutian Trade Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Wuhan Yutian Hongguang Real Estate Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Shenzhen Zhongheng Huayu Investment Holding Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Yutian Investment Co., Ltd. (Famous Sky Capital Limited) | Control by same controlling shareholder and ultimate controller |
Yutian International Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Hong Kong Zhongheng Yutian Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Shenzhen Yutian Henghua Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Shenzhen Zhongheng Yongye Technology Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Shenzhen Yutian Hengrui Co., Ltd. | Control by same controlling shareholder and ultimate controller |
Other explanationNil
4. Related transaction(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Related party | Content | Current Period | Trading limit approved | Whether over the approved limited or not (Y/N) | Last Period |
Hong Kong Yutian International Investment Co., Ltd. | Purchase good | 57,922,243.81 | 292,936,500.00 | N | 108,075,657.11 |
Wuhan Hengsheng Photoelectricity | Purchase good | 44,866,194.55 | 390,582,000.00 | N | 60,462,785.68 |
Goods sold/labor service providing
In RMB
Industry Co., Ltd.Related party
Related party | Content | Current Period | Last Period |
Hong Kong Yutian International Investment Co., Ltd. | Sales of good | 63,231,882.88 | 99,543,022.00 |
Wuhan Hengsheng Photoelectricity Industry Co., Ltd. | Sales of good | 2,772,074.10 | 1,237,955.69 |
Explanation on goods purchasing, labor service providing and receivingNil
(2) Related guarantee
As the guarantor
In RMB
Secured party | Amount guarantee | Start | End | Completed or not (Y/N) |
Hengfa Technology | 50,000,000.00 | 2017-11-20 | 2018-11-20 | N |
Hengfa Technology | 30,000,000.00 | 2018-03-14 | 2020-03-14 | N |
As the secured party
In RMB
Guarantor | Amount guarantee | Start | End | Completed or not (Y/N) |
Li Zhongqiu | 20,000,000.00 | 2017-12-08 | 2018-12-07 | N |
Li Zhongqiu | 100,000,000.00 | 2018-07-13 | 2019-07-12 | N |
Explanation on related guaranteeNil
(3) Remuneration of key manager
In RMB
Item | Current Period | Last Period |
Total Remuneration | 784,673.68 | 744,034.16 |
5. Receivable/payable items of related parties(1) Receivables
In RMB
Item | Related party | Closing balance | Opening balance | ||
Book balance | Bad debt reserves | Book balance | Bad debt reserves | ||
Accounts receivable | Hong Kong Yutian International Investment Co., Ltd. | 34,850,150.19 | 41,299,300.89 | ||
Advance payment | Hong Kong Yutian International Investment Co., Ltd. | 20,591,047.90 | 8,873,087.08 |
(2) Payables
In RMB
Item | Related party | Ending book balance | Opening book balance |
Accounts payable | Wuhan Hengsheng Photoelectricity Industry Co., Ltd. | 871,821.45 | 4,333,021.63 |
6. Commitments of related party
In line with the claim of application for arbitration from Shenzhen Vanke, Shen HUAFA and Wuhan Zhongheng paid and moneytogether. As the commitment letter to Shen HUAFA from Wuhan Zhongheng Group, if the Vanke wins, the losses from disputesarising by contract will bear by Wuhan Zhongheng Group in full.
X. Commitment or contingency
1. Important commitment
Important commitment on balance sheet dateAs of the balance sheet date, the irrepealable operating lease contract signed by the Company are as:
The Company entered into a house leasing contract with Wuwu Branch of Shenzhen Dacong Industrial Co., Ltd., term of the leasingperiod from 18 August 2015 to 17 August 2020
Minimum leasing payment for irrepealable operating lease contract | Minimum leasing payment |
First year after balance sheet date | 3,847,599.84 |
Second year after balance sheet date | 3,847,599.84 |
Third year after balance sheet date | 502,325.53 |
Total | 8,197,525.21 |
2. Contingency(1) Contingency on balance sheet date
1. Arbitration case of legal service contract dispute with V&T (Shenzhen) Law FirmOn March 12, 2018, the company received the arbitration notice No. SHEN DX20180087 from Shenzhen Court of InternationalArbitration, V&T (Shenzhen) Law Firm requested to make a ruling that the Company and Wuhan Zhongheng pay the delinquent
lawyer’s fees of RMB 19,402,000 and the liquidated damages (The liquidated damages shall take five ten-thousandths of a day as astandard based on RMB 19,402,000 from August 24, 2017 to the date of payment of the above-mentioned lawyer’s fees, and the
liquidated damages up to February 12, 2018 was RMB 1,678,273.00). The company should bear all the arbitration fees for this case.The company has entrusted lawyers to respond to the lawsuit and file a counterclaim against V&T Law Firm. The company filed acountersuit against V&T Law Firm that V&T Law Firm seriously violated the obligations of the Entrusted Agency Contract and theSupplementary Agreement of the Entrusted Agency Contract, failed to fulfill the contractual obligations, failed to fulfill the duty of
diligence and responsibility and failed to safeguard the legitimate rights and interests of the principal. And the lawyer’s fees are farhigher than the government guidance price of the Shenzhen lawyer service. It is requested to return the prepaid 2.5 million lawyers’
fees, terminate the Entrusted Agency Contract and the Supplementary Agreement of the Entrusted Agency Contract previously signed
with V&T Law Firm, and bear the lawyers’ fees of 100,000 Yuan for this counterclaim. On May 22, 2018, the arbitration was held,
but no verdict was issued.
2. Other pending lawsuit
Litigious party | Types of litigations, times and explaination | Cause of action | Case No. | Amount object | Note |
Defendant: Shenzhen Jifang Investment Co., Ltd. and Shenzhen Carnival Foreigning Trade Clothing City Co., Ltd . | -----2016.03.08(People’s Court of Futian Disctrict, Shenzhen) accept the case | Dispute over leasing contracts | (2016) Yue0304 MC No.: 5870; (2017) Yue 03 MZ No.: 22027; | Litigation amount: 733800 Yuan | |
-----2016.03.24 Application for bankaccount preservation of 550,000 Yuan | (2018) Yue 0304 Z No.: 10334 | ||||
----- Date of first instance opening: 2017.3.7 ----- Date of second instance opening :2017.11.9 | |||||
-----2018.3.15 (verdict of the 2nd instance effective) |
2018.3.26 Application for enforcement | |||||
2018.5.16: enforcement by Shenzhen intermediate’s court for expelling Jifang | |||||
Defendant: Shenzhen Huayongxing Enviornmental Technology Co., Ltd. Shenzhen Yidaxing Technology Co., Ltd. | ----2016.03.23 (Pepole’s Court of Baoan District, Shenzhen) accept the case | Dispute over leasing contracts | 2016 Yue 0306 MC No. 6180 | Litigation amount: | |
(Pepole’s Court of Baoan District, Shenzhen) Application for bankaccount preservation of 8 million Yuan (in payment) | 9.4726 million Yuan | ||||
-----2017.3.20 Opening a trail | |||||
The trial has come out, and applying enforcement | |||||
Defendant: Shenzhen Huayongxing Enviornmental Technology Co., Ltd., Shenzhen Guangyong Breadboard Co., Ltd., Shenzhen Mingyi Electric Co., Ltd., Shenzhen Ouruilai Technology Co., Ltd. and Shenzhen Kangzhengxin Technology Co., Ltd. | ----2016.03.24(Pepole’s Court of Baoan District, Shenzhen) accept the case | Dispute over leasing contracts | 2016 Yue 0306 MC No. 6229 | Litigation amount: 19.6492 million Yuan | |
-----2016.04.11(Pepole’s Court of Baoan District, Shenzhen) Application for bankaccount preservation of 17 million Yuan | |||||
------2017.2.14 Opening a trail | |||||
Verdict comes out and come into effect on 20 August 2018, waiting for application for enforcement | |||||
Defendant: Wuhan Zhongheng New Technology Industrial Group Co., ltd. and Shenzhen | ----2018.3.12. we received the arbitration application of V&T Law Firm from Shenzhen International Arbitration Commission, we have entrusted lawyers to respond to the suits and filed a counterclaim against V&T Law Firm, there is no notice of hearing at present. | Dispute over agency contract | Case No.: SHEN DX20180087 | Litigation amount: 19.402 million Yuan |
Zhongheng Huawa Co., Ltd. |
Plaintiff: V&T LAW FIRM |
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
Nil
XI. Other important events
1. Other
(i) concerning the ruling of Southern International Arbitration Shen [2017] No. D376 from Southern China International Economic &Trade Arbitration Commission, the Company applying for cancellating the ruling(1) Arbitration
In August 2015, Shenzhen HUAFA and Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as
“Wuhan Zhongheng”) signed the “Cooperation Agreement on Urban Renewal Project of Update Units at Huafa Industrial Park,Gongming Street, Guangming New District, Shenzhen”. As Shenzhen HUAFA and Wuhan Zhongheng planned to cooperate withShenzhen Vanke Real Estate CO., Ltd. (hereinafter referred to as “Shenzhen Vanke”) on the Huafa urban renewal project (hereinafterreferred to as “Huafa Renovation Project) at Gongming Street, Guangming New District, Shenzhen, both parties appointed that
Shenzhen HUAFA entrusted Wuhan Zhongheng to represent it in this cooperation, and established project company - Shenzhen
Vanke Guangming Real Estate Co., Ltd. (hereinafter referred to as “Vanke Guangming”) as the subject of project implementationwith Shenzhen Vanke; Vanke Guangming signed “Demolition Compensation Agreement” with Shenzhen HUAFA and Wuhan
Zhongheng, and paid the compensation for demolition.
On August 21, 2015, Shenzhen HUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “Cooperative Operation Contract ofRenovation Project at Huafa Industrial Park, Gongming Street, Guangming New District”(hereinafter referred to as “CooperativeOperation Contract”), the contract refined and appointed the cooperation model and operating steps of both sides. And then ShenzhenHUAFA, Wuhan Zhongheng and Shenzhen Vanke signed the “Agreement on the Housing Acquisition and Removal Compensationand Settlement”. After signing the above agreement, Shenzhen Vanke paid the cooperation price of 600 million Yuan to Wuhan
Zhongheng through Vanke Guangming.In September 2016, Shenzhen Vanke filed an arbitration to South China International Economic and Trade Arbitration Commission
(hereinafter referred to as “South China Arbitration”) as Shenzhen HUAFA and Wuhan Zhongheng violated the appointment of“Cooperative Operation Contract” and handled the “Confirmation of Subject of Reconstruction Implementation” at an overdue time,
and required Shenzhen HUAFA and Wuhan Zhongheng to pay liquidated damages and attorneys' fees of RMB 464.60 million.
While filing the arbitration, Shenzhen Vanke also applied for property preservation of 400 million Yuan of property under the name
of Shenzhen Huafa and Wuhan Zhongheng to Shenzhen Intermediate People’s Court. According to the ruling of ShenzhenIntermediate People's Court and “Notification of Sealing up, Seizing and Freezing Assets” (The reference numbers are (2016) Yue 03
Cai Bao No. 51, (2016) Yue 03 Cai Bao No. 53), the 27 house properties (Note: the property within the scope of Huafa renovationproject) under the name of Shenzhen HUAFA and 116,489,894 shares (Note: of which 116,100,000 shares have been pledged) ofShenzhen HUAFA stock held by Wuhan Zhongheng were frozen.(2) Progress of arbitrationOn November 12, 2016, the arbitration court held a hearing on this case.
In December 2016, Wuhan Zhongheng to Shenzhen HUAFA issued a “Commitment Letter” which included that if the arbitration
(Note: the case) ruled in favor of Shenzhen Vanke, the loss of arbitration caused by the contract disputes should be fully assumed byour company. In the above contingent losses, if the judicial decision ruled your company to pay the compensation in advance, ourcompany promised to pay your company in cash within one month, if our company could not pay on time due to uncontrollablefactors, our company would like to pay the corresponding interest according to the benchmark interest rate of bank loans in the
corresponding period. Because the plots in the renovation project placed in our company hadn’t been applied for transfer proceduresand were still under your company’s name (Note: based on the “Asset Replacement Contract” signed by Wuhan Zhongheng and
Shenzhen HUAFA on April 29, 2009), therefore, there was no risk of compliance, at the same time, our company promised to givepriority to paying the above compensation with the compensation for demolition of renovation project.
On March 14, 2017, Shenzhen HUAFA received the “Decision of Arbitrator not Granting Avoiding” issued by South China
Arbitration, which rejected the application for avoiding of chief arbitrator proposed by Shenzhen Vanke. On March 15, 2017,
Shenzhen HUAFA received the “Letter About the Resignation of the Chief Arbitrator of No. SHEN DP20160334 Case” signed bythe chief arbitrator and forwarded by South China Arbitration. On March 20, 2017, Shenzhen HUAFA received the “Letter About theResignation of the Arbitrator of No. SHEN DP20160334 Case” forwarded by South China Arbitration, the arbitrator selected by
Shenzhen Vanke said to resign from the arbitrator of this case due to physical reasons.
The deadline for giving a ruling to this case was originally scheduled on February 12, 2017. According to the “Decision ofAdjourning the Ruling” issued by South China Arbitration on February 10, 2017, the deadline for giving a ruling to this case shall be
prolonged to May 12, 2017. Due to the changes in the members of above arbitration court, this case needs South China Arbitration toreassign the chief arbitrator and Shenzhen Vanke to reselect the arbitrators. According to the provisions of article 32 of theArbitration Rules of South China Arbitration, after constituting the new arbitration court, it shall decide whether all or part of thehearing procedures that have been carried out before need to be reopened; if the arbitration court decides to reopen all hearingprocedures, then the deadline for giving a ruling shall be calculated from the date that the arbitration court decides to reopen thehearing procedures.
On August 16, 2017, South China International Economic and Trade Arbitration Commission made the “Arbitral Award” SCIA
[2017] D376, according to the arbitral award, the applicant and counterclaim respondent in arbitration case SCIA [2017] D376 were
Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Applicant” and “Vanke”). The first respondent and the firstapplicant for counterclaim were Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “WuhanZhongheng” and “First Respondent”). The second respondent and the second applicant for counterclaim were Zhongheng Huafa. The
award results were as follows:
① The first respondent and the second respondent pay liquidated damages to the applicant with a base number of RMB 600 million,
calculating by the annual interest rate of 36% from October 1, 2015 to November 11, 2016;
②The first respondent and the second respondent pay the lawyer fees of RMB 1.4 million to the applicant due to the case;③The first respondent and the second respondent pay the property preservation fees of RMB 10,000 to the applicant;④The arbitration fees for this request and case was RMB 3,101,515.00, the first respondent and the second respondent should bear
70%, i.e. RMB 2,171,060.50, and the applicant should bear 30%, i.e. RMB 930,454.50. The applicant had already paid the arbitrationfees in full amount for this request which could be used as the arbitration fees of this case and request and shall not be refunded. Thefirst respondent and the second respondent should directly pay RMB 2,171,060.50 to the applicant;The arbitration fee of counterclaim in this case was RMB 76,050 which was undertaken by the first respondent and the secondrespondent at their own expense. The first respondent and the second respondent paid the arbitration fees in full amount for thisrequest which could be used as the arbitration fees of this case and request and shall not be refunded;The actual expenses of the arbitrators in this case amounted to RMB 7,754.90, the first respondent and the second respondentassumed 70%, i.e. RMB 5,428.43, and the applicant assumed 30%, i.e. RMB 2,326.47; the above actual expenses of the arbitratorshad been paid by the Commission, so the first respondent and the second respondent and the applicant should directly pay RMB5,428.43 and RMB 2,326.47 respectively to the Commission;
⑤ Reject the applicant’s other arbitration requests;⑥Reject the arbitration counterclaims of the first respondent and the second respondent.
In summary, Wuhan Zhongheng and Shenzhen Huafa should pay liquidated damages, interest, lawyer fees, property preservationfees, and arbitration fees for this request to Vanke and pay actual expenses of the arbitrators in this case and pay the actual expensesincurred by the arbitrators in this case to South China International Economic and Trade Arbitration Commission.
(3) The response of the company’s management and the identification of the event
The company engaged lawyers to make an independent investigation and judgment on the event, and issued special legal opinion thatthe reasons of Wuhan Zhongheng resulted in a failure of a net handover, the corresponding urban renewal functional departmentcould not issue the corresponding demolition documents, which in turn made the project company fail to be confirmed as the subject
of implementation, and finally and directly made the subject of implementation fail to get the “Land Value Payment Notification”and sign the “Land Use Rights Transfer Contract”. Therefore, Wuhan Zhongheng should bear all responsibilities for faults in
response to the breach of contract. Wuhan Zhongheng issued the Commitment Letter in December 2016, pledged that if thearbitration judged Vanke to win the case, Wuhan Zhongheng should bear all arbitration losses caused by the contract dispute; afterthe award came into effect, Wuhan Zhongheng issued the Confirmation Letter again on November 23, 2017 to divide the duty ofperformance of the award; the independent directors of the company issued independent opinions after careful study that WuhanZhongheng should bear the arbitration losses in full; the management of the company also made an investigation and affirmed thatWuhan Zhongheng should bear all liability for satisfaction on the Award HNGZSC [2017] D376, and the award amount should bepaid by Wuhan Zhongheng in full. At present, the company has filed an application for revoking the Award HNGZSC [2017] D376 to
Shenzhen Intermediate People’s Court, and Shenzhen Intermediate People’s Court has officially accepted the case on February 7,2018, the case number was (2018) Yue 03 MT 113. On June 16,2018,the court ruled against the company’s claims.
XII. Principle notes of financial statements of parent company
1. Accounts receivable(1) Category of account receivable
In RMB
Category | Closing balance | Opening balance | ||||
Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value |
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Account receivable with single significant amount and withdrawal bad debt provision separately | 5,000,988.97 | 48.58% | 5,000,988.97 | 100.00% | 5,094,414.36 | 49.05% | 5,094,414.36 | 100.00% | ||
Accounts with single significant amount and bad debts provision accrued individually | 5,292,435.32 | 50.12% | 5,292,435.32 | 100.00% | 5,292,435.32 | 50.95% | 5,292,435.32 | 100.00% | ||
Total | 10,293,424.29 | 100.00% | 10,293,424.29 | 10,386,849.68 | 100.00% | 10,386,849.68 |
Account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Account receivable (by unit) | Closing balance | |||
Accounts receivable | Bad debt reserve | Provision ratio | Provision reason | |
TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 1,325,431.75 | 100.00% | Un-recyclable |
SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 579,343.89 | 100.00% | Un-recyclable |
Hong Kong Haowei Industry Co. Ltd. | 1,870,887.18 | 1,870,887.18 | 100.00% | Un-recyclable |
Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 1,225,326.15 | 100.00% | Un-recyclable |
Total | 5,000,988.97 | 5,000,988.97 | -- | -- |
Account receivable with bad debt provision withdrawal by method of account age in portfolio:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on balance proportion for account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for account receivable:
Accounts with single significant amount and bad debts provision accrued individually at period-end
Debtor | Book balance | Bad debt | Accrual ratio | Reasons |
Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 381,168.96 | 100.00 | Un-recyclable |
Shenzhen Wandelai Digital Technology Co., Ltd. | 351,813.70 | 351,813.70 | 100.00 | Un-recyclable |
Shenzhen Dalong Electronic Co., Ltd. | 344,700.00 | 344,700.00 | 100.00 | Un-recyclable |
Shenzhen Keya Electronic Co., Ltd. | 332,337.76 | 332,337.76 | 100.00 | Un-recyclable |
Shenzhen Qunping Electronic Co., Ltd. | 304,542.95 | 304,542.95 | 100.00 | Un-recyclable |
China Galaxy Electronics (Hong Kong) Co., Ltd. | 288,261.17 | 288,261.17 | 100.00 | Un-recyclable |
Dongguan Weite Electronic Co., Ltd. | 274,399.80 | 274,399.80 | 100.00 | Un-recyclable |
Hong Kong New Century Electronics Co., Ltd. | 207,409.40 | 207,409.40 | 100.00 | Un-recyclable |
Shenyang Beitai Electronic Co., Ltd. | 203,304.02 | 203,304.02 | 100.00 | Un-recyclable |
Beijing Xinfang Weiye Technology Co., Ltd. | 193,000.00 | 193,000.00 | 100.00 | Un-recyclable |
TCL Electronics (Hong Kong) Co., Ltd. | 145,087.14 | 145,087.14 | 100.00 | Un-recyclable |
Huizhou TCL Xinte Electronics Co., Ltd. | 142,707.14 | 142,707.14 | 100.00 | Un-recyclable |
SkyWorth – RGB Electronic Co., Ltd. | 133,485.83 | 133,485.83 | 100.00 | Un-recyclable |
Other | 1,990,217.45 | 1,990,217.45 | 100.00 | Un-recyclable |
Total | 5,292,435.32 | 5,292,435.32 | —— | —— |
(2)Top five receivables collected by arrears party at ending balance
Company | Closing balance | Ratio in total account receivable (%) | Balance of bad debt provision |
Hong Kong Haowei Industry Co. Ltd. | 1,870,887.18 | 18.18 | 1,870,887.18 |
TCL ACE ELECTRIC APPLIANCE (HUIZHOU) CO., LTD. | 1,325,431.75 | 12.88 | 1,325,431.75 |
Qingdao Haier Parts Procurement Co., Ltd. | 1,225,326.15 | 11.90 | 1,225,326.15 |
SKYWORTH Multimedia (Shenzhen) Co., Ltd. | 579,343.89 | 5.63 | 579,343.89 |
Shenzhen Huixin Video Technology Co., Ltd. | 381,168.96 | 3.70 | 381,168.96 |
Total | 5,382,157.93 | 52.29 | 5,382,157.93 |
2. Other accounts receivable(1) Category of other account receivable
In RMB
Category | Closing balance | Opening balance | ||||||||
Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
Amount | Ratio | Amount | Accrual ratio | Amount | Ratio | Amount | Accrual ratio | |||
Other account receivable with single significant amount and withdrawal bad debt provision separately | 11,281,461.86 | 9.17% | 11,281,461.86 | 100.00% | 0.00 | 11,281,461.86 | 9.48% | 11,281,461.86 | 100.00% | 0.00 |
Other account receivable with bad debt provision accrual by portfolio | 103,974,567.02 | 84.54% | 102,100.00 | 0.10% | 103,872,467.02 | 100,024,243.84 | 84.02% | 102,100.00 | 0.10% | 99,922,143.84 |
Other account receivable with single minor amount but withdrawal single item bad debt provision | 7,736,789.76 | 6.29% | 7,736,789.76 | 100.00% | 0.00 | 7,736,789.76 | 6.50% | 7,736,789.76 | 100.00% | 0.00 |
Total | 122,992,818.64 | 100.00% | 19,120,351.62 | 103,872,467.02 | 119,042,495.46 | 100.00% | 19,120,351.62 | 99,922,143.84 |
Other account receivable with major single amount and withdrawal bad debt provision single at period-end:
√ Applicable □ Not applicable
In RMB
Other account receivable (units) | Closing balance | |||
Other account receivable | Bad debt provision | Accrual ratio | Accrual reason | |
Shenzhen Jifang Investment Co., Ltd. | 1,071,160.00 | 1,071,160.00 | 100.00% | Un-recyclable |
Huafa Lease | 4,558,859.15 | 4,558,859.15 | 100.00% | Un-recyclable |
Portman | 4,021,734.22 | 4,021,734.22 | 100.00% | Un-recyclable |
Zhao Baomin | 553,901.68 | 553,901.68 | 100.00% | Un-recyclable |
Traffic accident compensation | 555,785.81 | 555,785.81 | 100.00% | Un-recyclable |
Hebei Botou Court | 520,021.00 | 520,021.00 | 100.00% | Un-recyclable |
Total | 11,281,461.86 | 11,281,461.86 | -- | -- |
Other account receivable with bad debt provision withdrawal by method of account age in portfolio:
√ Applicable □ Not applicable
In RMB
Account age | Closing balance | ||
Other receivable | Bad debt reserves | Accrual ratio | |
Sub-item of within one year | |||
Subtotal of within one year | 101,967,567.02 | ||
1-2 year | 2,000,000.00 | 100,000.00 | 5.00% |
Over 3 years | 7,000.00 | 2,100.00 | 30.00% |
Total | 103,974,567.02 | 102,100.00 |
Explanation on portfolio basis:
NilIn combination, withdrawal proportion of bad debt provision based on balance proportion for other account receivable:
□ Applicable √ Not applicable
In combination, withdrawal proportion of bad debt provision based on other methods for other account receivable:
√ Applicable □ Not applicable
Other account receivable with single minor amount but withdrawal single item bad debt provision at period-end
Debtor | Book balance | Bad debt | Accrual ratio (%) | Reasons |
Electricity fee in Gongming canteen | 489,214.70 | 489,214.70 | 100.00 | Un-recyclable |
Jiantao (Fogang) Laminates Co., Ltd. | 465,528.10 | 465,528.10 | 100.00 | Un-recyclable |
Labor union | 332,402.55 | 332,402.55 | 100.00 | Un-recyclable |
Lu Wei | 290,000.00 | 290,000.00 | 100.00 | Un-recyclable |
4/F hotel Dai Qiangbo | 194,569.00 | 194,569.00 | 100.00 | Un-recyclable |
Chuangjing | 192,794.00 | 192,794.00 | 100.00 | Un-recyclable |
Shenzhen Mingli Co., Ltd. | 170,394.84 | 170,394.84 | 100.00 | Un-recyclable |
Other Units | 5,601,886.57 | 5,601,886.57 | 100.00 | Un-recyclable |
Total | 7,736,789.76 | 7,736,789.76 | —— | —— |
(2) Other receivables by nature
In RMB
Nature | Ending book balance | Opening book balance |
Margin and deposit | 720,065.04 | 720,065.04 |
Borrow money | 1,475,463.06 | 2,013,402.14 |
Intercourse funds | 111,709,202.54 | 110,451,250.82 |
Rent income | 9,088,088.00 | 5,857,777.46 |
Total | 122,992,818.64 | 119,042,495.46 |
(3) Top 5 other receivables collected by arrears party at ending balance
In RMB
Company | Nature | Closing balance | Account age | Proportion in total other receivables at year-end | Ending balance of bad debt provision |
Hengfa Technology | Intercourse funds | 94,141,963.46 | Within one year | 76.54% | |
Shenzhen Jifang Investment Co., Ltd. | Lease receivable | 7,949,760.00 | Within one year | 6.46% | 1,071,160.00 |
Huafa Lease | Intercourse funds | 4,558,859.15 | Over 3 years | 3.71% | 4,558,859.15 |
Portman | Lease receivable | 4,021,734.22 | Over 3 years | 3.27% | 4,021,734.22 |
Wuwu Branch of Shenzhen Dachong Industrial Co., Ltd. | Premium for lease | 641,266.64 | Within one year | 0.52% | |
Total | -- | 111,313,583.47 | -- | 90.50% | 9,651,753.37 |
3. Long-term equity investment
In RMB
Item | Closing balance | Opening balance | ||||
Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
Investment for subsidiary | 187,208,900.00 | 600,000.00 | 186,608,900.00 | 187,208,900.00 | 600,000.00 | 186,608,900.00 |
Total | 187,208,900.00 | 600,000.00 | 186,608,900.00 | 187,208,900.00 | 600,000.00 | 186,608,900.00 |
(1) Investment for subsidiary
In RMB
The invested entity | Opening balance | Increase during the period | Decrease during this period | Closing balance | Impairment accrual | Ending balance of impairment provision |
Huafa Lease | 600,000.00 | 600,000.00 | 600,000.00 | |||
Huafa Property | 1,000,000.00 | 1,000,000.00 | ||||
Hengfa Technology | 183,608,900.00 | 183,608,900.00 | ||||
Huafa Hengtian | 1,000,000.00 | 1,000,000.00 | ||||
Huafa Hengtai | 1,000,000.00 | 1,000,000.00 | ||||
Total | 187,208,900.00 | 187,208,900.00 | 600,000.00 |
4. Operating income and cost
In RMB
Item | Current Period | Last Period | ||
Income | Cost | Income | Cost | |
Other business | 16,961,088.74 | 2,510,518.82 | 19,368,319.99 | 2,104,257.94 |
Total | 16,961,088.74 | 2,510,518.82 | 19,368,319.99 | 2,104,257.94 |
Other explanation:
Nil
XIII. Supplementary Information1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset | -105,779.36 | |
Governmental 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) | 771,800.00 |
Profit and loss of assets delegation on others’ investment or management | 245,679.10 | |
Other non-operating income and expenditure except for the aforementioned items | -56,944.69 | |
Less: impact on income tax | 115,088.47 | |
Total | 739,666.58 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. REO and earnings per share
Profits during report period | Weighted average ROE | Earnings per share | |
Basic EPS (RMB/Share) | Diluted EPS (RMB/Share) | ||
Net profits belong to common stock stockholders of the Company | 0.87% | 0.0099 | 0.0099 |
Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | 0.64% | 0.0073 | 0.0073 |
Section XI. Documents available for reference
I. Text of the Semi-Annual Report caring signature of the Chairman;II. Financial statement carrying the signatures and seals of the person in charge of the Company, principal of the accounting worksand person in charge of accounting organ;III. All documents of the Company and manuscripts of public notices that disclosed in the China Securities journal, Securities Timesand Hong Kong Commercial Daily designated by CSRC in the report period;IV. Article of AssociationV. Other relevant files.