Stock Code: 000019 200019 Public Notice No.: 2018- 70

Short Form of the Stock: Shenshenbao-A Shenshenbao-B

Shenzhen Shenbao Industrial Co. Ltd.Summary of Semi-Annual Report 2018

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.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

SHENSHENBAO-A

SHENSHENBAO-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 Li Yiyan Huang Bingxia

Office add. 8/F Tower-B Building 4 Technology 8/F Tower-B Building 4 Technology

Park Nanshan Software Base

Nanshan District Shenzhen

Park Nanshan Software Base Nanshan

District Shenzhen

Tel. 0755-82027522 0755-82027522

E-mail lyy@sbsy.com.cn huangbx@sbsy.com.cn

2. Main financial data and index

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes √ No

Current period

Same period of last

year

Changes over last year

Operating revenue (RMB) 136721215.40 138158382.95 -1.04%

Net profit attributable to

shareholders of the listed

Company (RMB)

-18246639.07 -17759776.83 -2.74%

Net profit attributable to

shareholders of the listed

Company after deducting

non-recurring gains and losses

(RMB)

-18884920.69 -19357560.01 2.44%

Net cash flow arising from

operating activities (RMB)

9795470.07 -50432648.15 119.42%

Basic earnings per share

(RMB/Share)

-0.0367 -0.0357 -2.80%

Diluted earnings per share

(RMB/Share)

-0.0367 -0.0357 -2.80%

Weighted average ROE -1.95% -1.74% -0.21%

End of current period End of last year Changes over end of last year

Total assets (RMB) 1040484135.20 1070386220.55 -2.79%

Net assets attributable to

shareholder of listed

Company(RMB)

928673938.26 946920577.33 -1.93%

3. Amount of shareholders and particulars about shares holding

In Share

Total common stock 71459 Total preference 0

shareholders in reporting

period-end

shareholders with voting

rights recovered at end of

reporting period (if

applicable)

Particulars about shares held top 10 shareholders

Full name of Shareholders

Nature of

shareholder

Proportio

n of

shares

held

Total shares

hold

Amount of

restricted shares

held

Number of

share

pledged/froz

en

State

of

share

Amou

nt

Shenzhen Agricultural Products Co.Ltd

Other 19.09% 94832294 15384832

Shenzhen Fude State-Owned Capital

Operation Co. Ltd.Other 16.00% 79484302 13431784

Sun Huiming

Domestic

nature person

0.69% 3403262 0

Hu Xiangzhu

Domestic

nature person

0.45% 2238400 0

Zhou Jun

Domestic

nature person

0.33% 1636790 0

Central Huijin Asset Management Co.

Ltd.State-owned

legal person

0.30% 1472625 0

Li Qian

Domestic

nature person

0.26% 1278311 0

Ye Xiuxia

Domestic

nature person

0.20% 1000230 0

Chen Xianping

Domestic

nature person

0.20% 990000 0

Gu Fengyuan

Domestic

nature person

0.19% 950300 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)

N/A

. Change of controlling shareholder or actual controller

Changes of controlling shareholders in reporting period

√ Applicable □ Not applicable

New controlling shareholder

Shenzhen Fude State-Owned Capital Operation Co.Ltd.

Date of change 2018-04-03

Query index in appointed website

”Notice of State-owned Shares Transfer for

Free”(Notice No.:2018-27) released on Juchao Website

Disclosure date in appointed website 2018-04-04

Changes of actual controller in reporting period

□ Applicable √ Not applicable

The Company had no changes of actual controller 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

□ Yes √ 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

□Yes √ No

In first half of 2018 the Company continued to promote scientific and technological innovation by

focusing on the existing industrial layout and market development trends fully implemented

various operational measures to consolidate the industrial foundation and enhance the industrial

value vigorously expand the main business and enhance the profitability and core competitiveness

of the enterprise. At the same time in line with the overall strategic deployment of state-owned

grain and agricultural enterprises in Shenzhen it was planned to acquire 100% equity of Shenzhen

Cereals Group Co. Ltd. by issuing shares to purchase assets. During this period the Company

adhered to grasping two objects at the same time in the case of steadily implementing various

intrinsic management measures ensured the stable development of various business segments

actively promoted the progress of major assets restructuring projects adjusted and optimized the

industrial layout and achieved resource integration by superior resource complementary of all

parties which ultimately promoted the Company’s sustainable operation ability and profitability

and improved the quality and efficiency of enterprise development.

During the reporting period the Company continuously promoted the project research and

development and technical support promoted the industrial development by product breakthroughs

and technological innovations steadily improved the advantages of traditional business segments

and strived to improve quality and reduce losses and increase revenue. In the first half of the year

the Technology Center completed a number of government application projects including

“Shenzhen High-tech Enterprise Cultivation and Storage” and “Shenzhen R&D Expenses Funding”

and reached cooperation with many brand customers which provided integrative solutions with

multiple dimensions and aspects for related enterprises from concept to product realization; the

deep processing business module somewhat increased the product gross margin through a series of

strict cost control measures such as optimizing supply chain reducing consumption and increasing

efficiency; Huizhou Shenbao Technology continued to improve the production process and formula

of the beverage and condiments business and completed various production tasks by guaranteeing

both quality and quantity; the overall sales of specialty tea business of Hangzhou Ju Fang Yong did

not meet the expectations but the fast drink business of its subordinate “iTealife” has gradually

opened up the franchise market through the third party cooperation and the performance has been

improved to some extent; under the premise of the existing business model Shenbao tea culture

continued to promote the internal rectification sorted out the product system and achieved

expectations in new product development cost control and operation procedure improvement and

reduced losses.

During the reporting period the Company actively promoted the major assets restructuring projects

and fulfilled the relevant internal decision-making procedures and information disclosure

obligations.In the first half of 2018 the Company achieved a total operating income of 136721215.40 Yuan a

decline of 1.04% over the same period of last year; operating profit of -18090617.03 Yuan a

decrease of 15.97% over the same period of last year; net profit attributable to shareholders of listed

companies was -18246639.07 Yuan a decline of 2.74% compared with the same period of last year.The main reason for the change was that the Company’s profit from tea deep processing business

increased compared with the same period of the previous year by optimizing the product structure.

At the same time the Company added new assets restructuring related expenses in the current

period which caused the Company’s overall losses were basically the same as that of the same

period of last year.

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

There are no particulars of changes in aspect of accounting policy estimates and calculation method

in the period

(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 Shenbao Industrial Co. Ltd.

Chairman: Zheng Yuxi

28 August 2018