Stock Code: 000019 200019 Public Notice No.: 2020- 20

Short Form of the Stock: SZCH Shenliang B

SHENZHEN CEREALS HOLDINGS CO. LTD.

Summary of Semi-Annual Report 2020

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.

In addition to the following directors other directors attended the Board Meeting for the deliberation of the semi-annual report.Name of the director not

present in person

Title of the director not

present in person

Reason for not attending the

meeting in person

Name of principal

Lu Qiguang Director On a business trip Hu Xianghai

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 Dai Bin 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 szch@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

The Period Same period of last year Changes over last year

Operating revenue (RMB) 4740428222.10 4782167732.69 -0.87%

Net profit attributable to shareholders of

the listed Company (RMB)

210738686.12 203168850.61 3.73%

Net profit attributable to shareholders of

the listed Company after deducting

non-recurring gains and losses (RMB)

196760081.80 198195100.05 -0.72%

Net cash flow arising from operating

activities (RMB)

9610361.15 -389429629.75 102.47%

Basic earnings per share (RMB/Share) 0.1828 0.1763 3.69%

Diluted earnings per share (RMB/Share) 0.1828 0.1763 3.69%

Weighted average ROE 4.66% 4.82% -0.16%

End of the Period End of last year

Changes over end of last

year

Total assets (RMB) 7028727913.52 6775067275.86 3.74%

Net assets attributable to shareholder of

listed Company (RMB)

4400982300.34 4420751187.57 -0.45%

3. Amount of shareholders and particulars about shares holding

In Share

Total common stock shareholders in

reporting period-end

63329

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 Food Group Co. Ltd.State-owned

legal person

63.79% 735237253 669184735

Shenzhen Agricultural Products

Group Co. Ltd

State-owned

legal person

8.23% 94832294 15384832

Hong Kong Securities Clearing

Company Limited

Foreign

legal person

0.53% 6057114 0

Lin Junbo

Domestic

nature

person

0.30% 3500000 0

Shanghai Ruiting Asset Management

Co. Ltd.-Shanghai Ruiting Better

Life No. 2 Private Equity Investment

Fund

Other 0.30% 3442929 0

Sun Huiming

Domestic

nature

0.30% 3436462 0

person

Gao Lizhi

Domestic

nature

person

0.19% 2204400 0

Hu Xiangzhu

Domestic

nature

person

0.18% 2079000 0

Central Huijin Asset Management

Co. Ltd.

State-owned

legal person

0.13% 1472625 0

Zhang Jianmin

Domestic

nature

person

0.11% 1272039 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)

1. Shareholder - Shanghai Ruiting Asset Management Co. Ltd.-Shanghai

Ruiting Better Life No. 2 Private Equity Investment Fund holds 3442929

shares of the Company under customer credit trading secured securities

account through Everbright Securities Co. Ltd. common account holds 0

shares and 3442929 shares are held in total at end of the Period. During the

reporting period the credit trading secured securities account has 3442929

shares increased and no change in the common account shares held are

increased 3442929 shares in total.

2. Shareholder Zhang Jianmin holds 1272039 shares of the Company under

customer credit trading secured securities account through China Galaxy

Securities Co. Ltd. common account holds 0 shares and 1272039 shares are

held by Zhang in total at end of the Period. During the reporting period the

credit trading secured securities account has 1272039 shares increased and

no change in the common account shares held by Zhang are increased

1272039 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 the sudden novel coronavirus epidemic brought unprecedented severe challenges to

the company. The company made every effort to promote the start of production ensure the supply and

coordinate the prevention and control of the epidemic and its operation and management. In accordance with the

annual key work and strategic planning goals the company took the reorganization and subsequent integration

and the reshaping of the company's strategy as the starting point and end point of operation and management and

well completed the semi-annual goals and tasks.

1. Main business development

During the reporting period based on its own advantages and industrial development the company used

information technology to broaden product supply channels and transaction methods. Through the integration of

resources the company enhanced the synergistic effect of the industrial chain to create a new pattern in the grain

oil and food industry. The company continued to focus on the main business of grain and oil and achieved steady

development in main business by actively improving the supply chain extending the industrial chain upgrading

the value chain and completing grain and oil supply services with quality and quantity.

2. Key projects

During the reporting period the company focused on the strategy of “smart grain oil and food supply chainquality service providers” and promoted the construction and operation of grain logistics nodes projects and

achieved the strategic goals for the first half of the year. The grain logistics and terminal supporting project of

SZCG Dongguan Grain Logistics Node Project the CDE warehouse project the food deep processing project and

the first-phase terminal project have all been basically completed. The Northeast Grain Source Base Project has

accelerated the construction of the second phase project of the Grain Source Base. The 150000-ton storage main

project of the first phase of the Northeast Grain Source Base Project has been officially put into use.

3. Continuous innovation and development

The company has formed an innovative R&D system centered on the SZCG Research Institute with the key

supports of SYDATA Flour Company Product R&D Center Doximi Quality Inspection R&D Department SZCG

Reserve Branch Technology Center and Tea Product and Technology R&D Center. Up to now the company has

applied for and obtained a total of 90 patents and owns 23 software copyrights.

During the reporting period the company ensured the sustainable and healthy development of the company by

increasing the application of informatization innovation results and enhancing the efficiency of operation and

management.

4. Other key tasks

(1) During the reporting period continue to improve corporate governance. In accordance with the new regulatory

requirements and relevant regulations and procedures the company completed the combination and revision of

the internal systems and further enhanced the management effectiveness of the company through various effective

measures.

(2) During the reporting period the preparation of the "14th Five-Year" strategic plan was initiated. On the

premise of conscientiously implementing the goals and tasks of the "13th Five-Year Plan" the company combined

with its actual conditions closely focused on the "dual-zone driving effect" formulated the company's "14th

Five-Year Plan" work plan and scientifically proposed the development goals work ideas and key tasks of "14th

Five-Year Plan" period.

(3) During the reporting period the company continued to launch new products. Doximi has developed a

high-quality formula rice "Black-faced Spoonbill"; Flour Company has launched a series of special flours for new

products such as bread steamed bread and moon cakes.

(4) During the reporting period the company actively fulfilled its social responsibilities. The company helped

fight the epidemic by donating 5.1 million yuan to Hubei; implemented the policy of reducing rents and fees and

reducing or exempting rents totaling more than 16.5 million yuan for tenants who meet the requirements.

(5) During the reporting period the company implemented the main responsibility for production safety.

Resolutely implemented various safety requirements in place and achieved five "0"s for production safety

accidents food safety accidents fire safety accidents personal injury accidents and environmental pollution

accidents.In first half of 2020 the company achieved a total operating income of 4740428200 yuan a decrease of 0.87%

over the same period of the previous year; operating profit of 218523000 yuan a decrease of 7.15% over the

same period of the previous year; net profit attributable to shareholders of listed companies was 210738700 yuan

an increase of 3.73% from a year earlier.

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

1. Changes of important accounting policies

Content & reasons

Approval

procedure

Note (Name and amount of report items that

are significantly affected)

On July 5 2017 the Ministry of Finance revised and issued the

"Accounting Standards for Business Enterprises No. 14-Revenue"

(No. CK [2017] 22). According to the requirements of the Ministry of

Finance for companies listed at home and abroad at the same time

and companies listed abroad and adopting the International Financial

Reporting Standards or Accounting Standards for Business

Enterprises to prepare financial statements it has been implemented

since January 1 2018; for other domestic listed companies it has

been implemented from January 1 2020; for non-listed companies

that implement the Accounting Standards for Bushiness Enterprises it

Approved by

the 7th Session

of 10th BOD on

31 Dec. 2019

This change in accounting policy did not

cause a major change in the company’s

revenue recognition method and did not have

a major impact on the company’s current and

previous net profit total assets and net assets.This change in accounting policy is a

corresponding change made by the company

in accordance with the latest accounting

standards revised and promulgated by the

Ministry of Finance. The changed accounting

will be implemented on January 1 2021. According to the

requirements of the above documents the company made

corresponding changes to its accounting policies.policy is in compliance with relevant

regulations and the actual situation of the

company.

2. Changes of important accounting estimate

There were no significant changes in accounting estimates during the reporting 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.