Stock Code: 000019 200019 Public Notice No.: 2019- 55

Short Form of the Stock: SZCH Shenliang B

SHENZHEN CEREALS HOLDINGS CO. LTD.

Summary of Semi-Annual Report 2019

I. Important Notice

The summary is abstract from full-text of annual report for more details of operating results financial condition and future

development plan of the Company; investors should found in the full-text of annual report that published on media appointed by

CSRC.

All Directors are attended the Board Meeting for deliberation of this Report.

Prompt of non-standard audit opinion

□ Applicable √ Not applicable

Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting

period

□ Applicable √ Not applicable

The Company has no plans of cash dividend distributed no bonus shares and has no share converted from capital reserve.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period

□ Applicable √ Not applicable

II. Basic information of the company

1. Company profile

Short form of the stock SZCH Shenliang B Stock code 000019 200019

Stock exchange for listing Shenzhen Stock Exchange

Person/Way to contact Secretary of the Board Rep. of security affairs

Name Du Jianguo Chen Kaiyue Liu Muya

Office add. 13/F Tower A World Trade Plaza No.9

Fuhong Rd. Futian District Shenzhen

13/F Tower A World Trade Plaza No.9

Fuhong Rd. Futian District Shenzhen

Tel. 0755-82027522 0755-82027522

E-mail dujg@slkg1949.com

chenky@slkg1949.com

liumy@slkg1949.com

2. Main financial data and index

Whether information disclosure and preparation place changed in reporting period or not

√Yes □No

Reasons for retroactive adjustment or re-statement

Enterprise combined under the same control

The Period

Same period of last year

Changes over last

year

Before adjustment After adjustment After adjustment

Operating revenue (RMB) 4782167732.69 136721215.40 4434688646.82 7.84%

Net profit attributable to shareholders of

the listed Company (RMB)

203168850.61 -18246639.07 202779343.34 0.19%

Net profit attributable to shareholders of

the listed Company after deducting

non-recurring gains and losses (RMB)

198195100.05 -18884920.69 -18884920.69 1149.49%

Net cash flow arising from operating

activities (RMB)

-389429629.75 9795470.07 52861245.30 -836.70%

Basic earnings per share (RMB/Share) 0.1763 -0.0367 0.1759 0.23%

Diluted earnings per share (RMB/Share) 0.1763 -0.0367 0.1759 0.23%

Weighted average ROE 4.82% -1.95% 5.06% -0.24%

End of the Period

End of last year

Changes over end of

last year

Before adjustment After adjustment After adjustment

Total assets (RMB) 6432513092.25 1040484135.20 6468951793.87 -0.56%

Net assets attributable to shareholder of

listed Company (RMB)

4260480115.67 928673938.26 4172502535.11 2.11%

3. Amount of shareholders and particulars about shares holding

In Share

Total common stock shareholders in

reporting period-end

1152535254

Total preference shareholders with

voting rights recovered at end of

reporting period (if applicable)

0

Particulars about shares held top 10 shareholders

Full name of Shareholders

Nature of

shareholder

Proportion of shares

held

Total shares

hold

Amount of

restricted shares

held

Number of share

pledged/frozen

State of

share

Amoun

t

Shenzhen Fude State-Owned Capital

Operation Co. Ltd.State-owned

legal person

63.79% 735237253 669184735

Shenzhen Agricultural Products Co.Ltd

State-owned

legal person

8.23% 94832294 15384832

Sun Huiming

Domestic

nature

person

0.30% 3436462 0

Bohai Securities Co. Ltd. State-owned 0.26% 2980500 0

legal person

Hu Xiangzhu

Domestic

nature

person

0.24% 2800000 0

Lin Junbo

Domestic

nature

person

0.17% 2000000 0

Central Huijin Asset Management

Co. Ltd.

State-owned

legal person

0.13% 1472625 0

Li Qian

Domestic

nature

person

0.11% 1309661 0

Li Yongqi

Domestic

nature

person

0.10% 1099205 0

Cai Congda

Domestic

nature

person

0.09% 1080051 0

Explanation on associated relationship among the

aforesaid shareholders

Shenzhen SASAC directly holds 100% equity of Fude Capital and holds 34%

of Agricultural Products indirectly through Fude Capital; the Company was

not aware of any related relationship between other shareholders above and

whether they belonged to parties acting in concert as defined by the

Acquisition Management Method of Listed Company.

Explanation on shareholders involving margin

business (if applicable)

Shareholder Li Yongqi holds 1097205 shares of the Company under

customer credit trading secured securities account through Xingye Securities

Co. ltd common account holds 2000 shares and 1099205 shares are held

by Li in total at end of the Period. During the reporting period the credit

trading secured securities account has 9100 shares decreased and 100 shares

increased in the common account shares held by Li are decreased 9000

shares in total.

4. Changes of controlling shareholders or actual controller

Controlling shareholder changed in the Period

□ Applicable √ Not applicable

Controlling shareholders had no change in reporting period.

Actual controller changed in the Period

□ Applicable √ Not applicable

Actual controller had no change in reporting period.

5. Total preferred stock shareholders of the Company and shares held by top ten shareholders with

preferred stock held

□ Applicable √ Not applicable

No preferred stock in reporting period.

6. Corporate Bonds

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when

semi-annual report approved for released or fail to cash in full on due

No

III. Discussion and analysis of the operation

1. Brief of the operation in Period

Dose the Company need to comply with disclosure requirements of the special industry

No

During the reporting period according to the annual key work and strategic planning objectives the company focused on the

post-restructuring integration development and corporate strategy reshaping and effectively exerted the leading role of party bui lding

and implemented the reform requirements of “Double Hundred Actions” throughout the various key work. The main economic

indicators in the first half of the year have been completed well the quality of main business development has been improved the

construction of strategic projects has been steadily advanced and the internal management and control level has been further

improved.

1. Main business development

During the reporting period the company

based on its own advantages and industrial development used information technology innovated and opened up the grain and oil

products supply channels and trading methods created a new pattern for tea and food business industry built a multi-group and

multi-channel food supply chain and service network expanded the effective supply of medium- and high-end grain oil and food

and strived to meet people's needs of "quality diversity nutrition health green and convenience" and promoted the transformation

of grain and oil products from "eat full" to "eat well".

As the “grain security” project and “rice bag” in Shenzhen the company completed the government grain and oil reserve service with

quality and quantity guaranteed during the reporting period the monthly average grain reserve was 1.065 million tons and the

monthly average oil reserve was 12100 tons which guaranteed the sufficient grain and oil supply and stable price in Shenzhen

through the balanced rotation of grain and oil.

During the reporting period the company integrated and reconstructed the deep processing of tea and natural plants and allocated the

staff. Through integration some businesses initially achieved stop loss or turnaround goals.

2. Key projects

During the reporting period the construction and operation of the company's Dongguan grain logistics node progressed smoothly.

The construction of grain logistics and terminal supporting projects CDE warehouse project food deep processing projects and the

first phase of the wharf have been steadily advanced according to the plan and progress. The international foods wharf loaded and

unloaded 128 vessels with a turnover of 180000 tons. The subordinate Dongguan logistics company promoted the establishment of

safety production standardization and achieved results and was awarded the second-level enterprise of safety production

standardization.

During the reporting period the company's northeast grain source base project achieved “breaking ice”. In order to speed up the

implementation of the “North Grain to the South South Grain for Storage in North” strategy the company set up the infrastructure

office of the Northeast Grain Source Project to accelerate the construction of the grain source base project. In June the main project

of the first phase of the Northeast Grain Source Base Project of 150000 tons has been started.During the reporting period the company focused on promoting grain and oil platform transactions. At the 2nd China Grain Trade

Conference “www.zglsjy.com.cn” further expanded the market influence and expanded new customers to bid and list trading on the

basis of serving internal customers. As of June the “www.zglsjy.com.cn” had a trading volume of 2.2 million tons.

3. Continuous innovation and development

During the reporting period the company improved the efficiency of its operational management by increasing the application of

informatization innovation results to ensure the sustainable and healthy development of enterprise. At present the innovative R&D

system with Shenliang research institute as the core and with the far-reaching data the product research and development center of

flour company the duoximi quality inspection R&D department the technology center of reserve branch the tea product and

technology research and development center as the key supports has been focusing on the innovation and research and development

of informatization projects guided by the operational management needs and the development of the industry's most cutting-edge

technology planed and completed 14 informatization projects such as company management and control and innovation management

platform. Up to now the company has 69 patents and 23 software copyrights.

4. Other key tasks

(1) During the reporting period the company completed the organizational restructuring completed the changes of company name

business scope registered capital and securities short name and completed the reelection of the board of directors the board of

supervisors and senior management personnel. In accordance with the new regulatory requirements and relevant regulations and

procedures the company completed the combination and revision of the internal systems to promote the improvement of corporate

governance and further enhanced the management effectiveness of the company through various effective measures.

(2) During the reporting period the company implemented the relevant requirements of the “Double Hundred Actions” state-owned

enterprise reform further expanded the compensation system and incentive and restraint mechanism and completed the overall

market-based selection and employment of the management teams of some subordinate units and promoted the rotation exchange of

key position talents and further optimized the company's talent echelon construction.

(3) During the reporting period the company further strengthened fund management and control and in accordance with the

centralized management mode of “internal bank” funds promoted the online reporting platform and effectively supervised the

expense reimbursement capital expenditure and operating expenses of the company headquarters and subordinate units. At the same

time the company further improved the CBS fund management information system function and fully opened the bank-corporate

direct linkage of 9 banks to realize the system supervision of banks and accounts. During the reporting period the company promoted

the subordinate units to optimize the structure of the debts and achieved remarkable results.

(4) During the reporting period the company built a new pattern of safe production further strengthened the concept of safe

development strictly implemented the responsibility system for production safety consolidated the foundation of safety management

investigated hidden dangers and immediately rectified them and became the first enterprise in the municipal state-owned assets

system to complete the “double” prevention mechanisms and safety standardization construction. The company closely followed the

theme of “preventing risks eliminating hidden dangers and restraining accidents” and has comprehensively launched the “SafeProduction Month” activities.In the first half of 2019 the company achieved a total operating income of RMB 4782167700 an increase of 7.84% over the same

period of the previous year (after restructuring); operating profit of RMB 235345700 an increase of 7.38% over the same period of

the previous year (after restructuring); net profit attributable to shareholders of listed companies was RMB 203168900 an increase

of 0.19% over the same period of the previous year (after restructuring).

2. Relevant items involving financial report

(1) Particulars about the changes in aspect of accounting policy estimates and calculation method

compared with the financial report of last fiscal period

√ Applicable □ Not applicable

(i) 1. Implementation of the Accounting Standards for Business Enterprise No. 22- Recognition and Measurement of Financial

Instruments Accounting Standards for Business Enterprise No. 23- Transfer of Financial Assets Accounting Standards for Business

Enterprise No. 24- Hedge Accounting and Accounting Standards for Business Enterprise No. 37- Presentation of Financial

Instruments (2017 Revised) and in 2017 the Ministry of Finance revised the Accounting Standards for Business Enterprise No. 22-

Recognition and Measurement of Financial Instruments Accounting Standards for Business Enterprise No. 23- Transfer of Financial

Assets Accounting Standards for Business Enterprise No. 24- Hedge Accounting and Accounting Standards for Business Enterprise

No. 37- Presentation of Financial Instruments. The revised standards stipulate that for financial instruments that have not been

derecognized on the first implementation date if the previous recognition and measurement are inconsistent with the requirements of

the revised standards they shall be retrospectively adjusted. If the data relating to the comparative financial statements in prior period

are inconsistent with the requirements of the revised standards no adjustment is required. The Company will adjust the retained

earnings and other comprehensive income at the beginning of the year due to the cumulative impact of retrospective adjustment themain impacts of the implementation of the above standards are as follows: (1) Due to the change in the name of the report item “thefinancial assets measured at fair value and whose changes are included in the current profit and loss” are reclassified as “t radingfinancial assets” financial assets measured at fair value and whose changes are included in the current profit and loss have a decrease

of RMB 1124927.96; and the trading financial assets have an increase of RMB 1124927.96; (2) the available-for-sale equityinstrument investments are reclassified as the “financial assets measured at fair value and whose changes are included in the currentprofit and loss”. Available-for-sale financial assets have a decrease of RMB 57500.00; other non-current financial assets have an

increase of RMB 57500.00.

2. Implementation of the Ministry of Finance issued the Notice on Revision and Issuance of 2019 Financial Statement Format for

General Corporate. On 30 April 2019 the Ministry of Finance issued the Notice on Revision and Issuance of 2019 Financial

Statement Format for General Corporate (Cai Kuai [2019] No.6) format of the financial statement has been revised. Main impact for

implementation of the above mentioned regulations: in balance sheet: the “Note receivable and account receivable” divided into

“Note receivable” and “Account receivable”; “Note payable and account payable” divided into “Note payable” and “Accountpayable”; the comparison data are adjusted accordingly. “Note receivable and account receivable” divided into “Note receivable” and

“Account receivable” current amount of “Note receivable” was RMB 350756.64 while RMB 1027635.04 at last period; the

“Account receivable” has RMB617831167.71 in the period while RMB 473646886.64 at last period; “Note payable and accountpayable” divided into “Note payable” and “Account payable” current amount of “Account payable” was RMB 171201542.03 while

RMB 472738283.80 at last period. The item of "credit impairment loss" is set up in the Income Statement. The comparison data will

not be adjusted. The current amount of "credit impairment loss" is RMB 5143559.77.

(2) Major accounting errors within reporting period that needs retrospective restatement

□ Applicable √ Not applicable

No major accounting errors within reporting period that needs retrospective restatement for the Company

(3) Particulars about the change of consolidation range compared with the financial report of last fiscal

period

□ Applicable √ Not applicable

The Company had no change of consolidation range in reporting period.

SHENZHEN CEREALS HOLDINGS CO. LTD.

Chairman: Zhu Junming

27 August 2019