Shenzhen Zhongheng Huafa Co. Ltd.THE THIRD QUARTERLY REPORT FOR 2020
October 2020
Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng
Huafa Co. Ltd. (hereinafter referred to as the Company) and its directors
supervisors and senior executives hereby confirm that there are no any fictitious
statements misleading statements or important omissions carried in this report
and shall take all responsibilities individual and/or joint for the reality
accuracy and completion of the whole contents.
All directors of the Company are attended the Meeting for quarterly report
deliberation.Principal of the Company Li Zhongqiu Person in Charge of Accounting Works
Yang Bin and Person in Charge of Accounting Organ (Accounting Officer) Wu
Aijie hereby confirm that the Financial Report of the Third Quarterly Report is
authentic accurate and complete.Section II. Basic information of Company
I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √No
Current period-end Period-end of last year Increase/decrease
Total assets (RMB) 629862182.02 614163899.86 2.56%
Net assets attributable to
shareholders of listed company
(RMB)
334384583.96 329428049.89 1.50%
Current period
Increase/decrease in
comparison with same
period of last year
Year-begin to end of
the Period
Increase/decrease in
comparison with
year-begin to
Period-end of last year
Operating revenue (RMB) 200183800.78 -4.59% 500887222.16 -8.77%
Net profit attributable to
shareholders of the listed company
(RMB)
1685488.94 111.67% 4851086.49 43.66%
Net profit attributable to
shareholders of the listed company
after deducting non-recurring gains
and losses (RMB)
1108517.51 634.45% 4276413.97 114.84%
Net cash flow arising from
operating activities (RMB)
-7509489.19 -187.24% 13690723.05 -74.55%
Basic earnings per share
(RMB/Share)
0.0060 114.29% 0.0171 43.70%
Diluted earnings per share
(RMB/Share)
0.0060 114.29% 0.0171 43.70%
Weighted average ROE 0.52% 0.27% 1.46% 0.42%
Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
Item
Amount from year-begin to
end of the Period
Note
Gains/losses from the disposal of non-current asset (including the
write-off that accrued for impairment of assets)
-93373.67
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)
574800.00
Gains and losses from assets under trusted investment or
management
103172.15
Other non-operating income and expenditure except for the
aforementioned items
99775.23
Less: impact on income tax 109701.19
Total 574672.52 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities 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 of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss.II. Statement of the total shareholders and shares-held of top ten shareholders at end of the
Period
1. Total number of common shareholders at the end of this report period and top ten common shareholders
In Share
Total common stock shareholders in
reporting period-end
21195
Total preference shareholders
with voting rights recovered at
end of reporting period (if
applicable)
0
Top ten shareholders
Shareholders
Nature of
shareholder
Proportion of
shares held
Amount of shares
held
Amount of
restricted shares
held
Number of share pledged/frozen
State of share Amount
Wuhan
Zhongheng
Group
Domestic
non-state-owned
legal person
42.13% 119289894 0
Pledged 116100000
Frozen 119289894
SEG (HONG
KONG) CO.
LTD.
Overseas legal
person
5.85% 16569560 0
Pledged 0
Frozen 0
GOOD HOPE
CORNER
Overseas legal
person
3.15% 8919600 0
Pledged 0
Frozen 0
INVESTMENTS
LTD.
Changjiang
Securities
Brokerage
(Hongkong) Co.Ltd.Overseas legal
person
1.89% 5355249 0
Pledged 0
Frozen 0
Guoyuan
Securities
Brokerage (Hong
Kong) Co. Ltd.Overseas legal
person
1.37% 3870117 0
Pledged 0
Frozen 0
Li Zhongqiu
Overseas nature
person
1.00% 2830000 0
Pledged 0
Frozen 0
LI SHERYN
ZHAN MING
Overseas nature
person
0.51% 1446100 0
Pledged 0
Frozen 0
Shengyin
Investment Co.Ltd.Overseas legal
person
0.50% 1408600 0
Pledged 0
Frozen 0
China Merchants
Securities Hong
Kong Limited
State-owned legal
person
0.47% 1328288 0
Pledged 0
Frozen 0
Li Senzhuang
Domestic nature
person
0.37% 1041073 0
Pledged 0
Frozen 0
Particular about top ten shareholders with un-restrict shares held
Shareholders Amount of un-restrict shares held
Type of shares
Type Amount
Wuhan Zhongheng Group 119289894
RMB ordinary
shares
119289894
SEG (HONG KONG) CO. LTD. 16569560
Domestically
listed foreign
shares
16569560
GOOD HOPE CORNER
INVESTMENTS LTD.
8919600
Domestically
listed foreign
shares
8919600
Changjiang Securities Brokerage
(Hongkong) Co. Ltd.
5355249
Domestically
listed foreign
shares
5355249
Guoyuan Securities Brokerage
(Hong Kong) Co. Ltd.
3870117
Domestically
listed foreign
3870117
shares
Li Zhongqiu 2830000
Domestically
listed foreign
shares
2830000
LI SHERYN ZHAN MING 1446100
Domestically
listed foreign
shares
1446100
Shengyin Investment Co. Ltd. 1408600
Domestically
listed foreign
shares
1408600
China Merchants Securities Hong
Kong Limited
1328288
Domestically
listed foreign
shares
1328288
Li Senzhuang 1041073
Domestically
listed foreign
shares
1041073
Explanation on associated
relationship among the top ten
shareholders or consistent action
Among the top ten shareholders Li Zhongqiu is the actual controller of Wuhan Zhongheng
New Science & Technology Industrial Group Co. Ltd. Shengyin Investment Co. Ltd. is an
overseas wholly-owned subsidiary of Wuhan Zhongheng New Science & Technology
Industry Group Co. Ltd. and is a party acting in concert. The Company neither knew whether
there exists associated relationship among the other shareholders nor they belong to
consistent actors that are prescribed in Measures for the Administration of Disclosure of
Shareholder Equity Changes of Listed Companies.
Explanation on shareholders
involving margin business about top
ten common shareholders (if
applicable)
N/A
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
□Yes √ No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in
reporting period
2. Total of shareholders with preferred stock held and the top ten shareholdings
□Applicable √Not applicable
Section III. Important events
I. Particular about major changes from items of main accounting statements and financial
indexes as well as reasons
√ Applicable □Not applicable
Item September 30 2020 January 1 2020 Y-o-y changes Reasons
Accounts receivable
179807950.94
138755691.43
29.59% Export business increased in the current
period
Receivable financing
25436468.30
42096834.02
-39.58% Domestic sales decreased in the current
period
Other receivables
3837421.42
6351361.16
-39.58% Decrease in current accounts
Other current assets
234014.36
1395071.36
-83.23% The tax to be deducted is deducted for
the current period.Long-term prepaid expenses
135529.27
309781.15
-56.25% Amortization of cloud service fee
Short-term loan
13660894.00
24633898.20
-44.54% Short term loans returned to the bank in
the current period.Notes payable
31742938.66
16761590.51
89.38% Increase in bills issued in this period.
Advance payment
2575945.15
356446.21
622.67% Some customer deposits are collected in
advance.Including: interest payable
32583.49
89365.28
-63.54% Short-term borrowings decreased during
the current period.
Deferred income
4108410.00
2331720.00
76.20% Received financial subsidies related to
assets in this period
Item January to
September 2020
January to September
2019
Y-o-y changes Reasons
Assets disposal income
-93373.67
134781.12
-169.28% Losses on disposal of assets in the
current period
Non operating income
681877.61
1022432.24
-33.31% Decrease in corporate rewards in the
previous period
Non operating expenses
7302.38
145387.86
-94.98% Liquidated damages occurred in the
previous period
Income tax expense
1333529.74
688384.81
93.72% Increase in property profits during the
period
Item January to
September 2020
January to September
2019
Y-o-y changes Reasons
Net cash received from disposal -33.53% Disposal of old equipment in the
of fixed assets intangible assets
and other long-term assets
213913.05 321800.00 previous period
Cash paid for purchasing fixed
intangible and other long-term
assets
3628023.06
7773184.27
-53.33% Zhengzhou new workshop purchased
production equipment in the previous
period
Cash paid for investment
-
-
Cash received from loans
20610902.80
184128246.40
-88.81% Repayment of short-term loans in the
current period
Cash paid for debt payment
40370812.20
224996378.63
-82.06% Repayment of short-term loans in the
current period
Cash paid for dividend and profit
distributing or interest paying
6089776.45
8351111.69
-27.08% Repayment of short-term loans in the
current period
Impact on cash or cash
equivalent from change of
foreign exchange
-509270.83
276036.36
284.49% The impact of exchange rate fluctuations
II. Progress of significant events their influences and analysis and explanation of their
solutions
√ Applicable □Not applicable
(i) The Company signed Asset Exchange Contract with Wuhan Zhongheng New Science & Technology Industrial
Group Co. Ltd. (Hereinafter referred to as "Wuhan Zhongheng Group") on 29 April 2009 (details were referred to
in the announcement dated 30 April 2009) and pursuant to the contract since part of the assets of the Company
(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 were A627-005
andA627-007 and the aggregate area was 48200 sq.m) were the lands listed in the first batch of plan for 2010
Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and joint
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 first
extraordinary 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 plots
and the respectively contributed and constructed above-ground buildings before the land development it is
estimated that the compensatory consideration obtained by the Company accounts for 50.5% of the total
consideration 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 haveconsidered and adopted the “Proposal on the project promotion and implementation of urban renewal and theprogress 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 urban renewal project of the updatedunits at Huafa Area Gong Ming Street Guangming New District Shenzhen” “Contract for the cooperativeventure 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 Group
Shenzhen Vanke Real Estate Co. Ltd. (hereinafter referred to as “Shenzhen Vanke”) and Shenzhen Vanke
Guangming Real Estate Development Co. Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016 Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation ofurban renewal project of the updated units at Huafa Area Gong Ming Street Guangming New District Shenzhen”
against the Company and Wuhan Zhongheng Group. Shenzhen Court of International Arbitration (SCIA) has
given a ruling in August 2017. On August 29 2018 the court accepted the compulsory execution application of
Shenzhen Vanke. In October 2019 as a number of outsiders filed an “execution objection” and applied for “noexecution” to Shenzhen Intermediate People’s Court the Shenzhen Intermediate People’s Court ruled to terminate
the enforcement procedure on March 20 2020. If the “execution objection” and “no execution” proposed by
outsiders are rejected according to law Shenzhen Vanke may continue to apply to the Shenzhen Intermediate
People’s Court to resume execution. 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 25 Aug. 2018 and 7 Sept. 2018 respectively.
(ii) On 31 December 2015 the 88750047 shares held by Wuhan Zhongheng Group are pledge to China
Merchants Securities Assets Co. Ltd. with due date of 31 December 2016. on 1 Feb. 2016 Wuhan Zhongheng
Group pledge the 27349953 shares held to China Merchants Securities Assets Co. Ltd. with due date of 31
December 2016. The above-mentioned pledged shares are deferred by Wuhan Zhongheng Group; pledge expired
on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till end
of this period released controlling shareholder still not removed the pledge and the Company has apply by letter
relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice
released on Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.(iii) The controlling shareholder Wuhan Zhongheng Group holds 119289894 shares of the Company’ stock
accounting for 42.13% of the total share capital of the Company of which 116489894 shares were judicially frozen
by Shenzhen Intermediate People's Court (hereinafter referred to as "Shenzhen Intermediate Court") on September
27 2016 which were frozen again by the Shenzhen Intermediate People's Court on December 14 2018 with a
frozen period of 36 months; the remaining 2800000 shares were frozen by the Shenzhen Intermediate People's
Court on May 29 2019 and were frozen again by the Higher People’s Court of Guangdong Province on July 5
2019. For details please refer to the company’s announcements published on www.cninfo.com.cn on October 27
2016 January 11 2019 May 31 2019 and August 7 2019.
(iv) On September 29 2016 the company and its controlling shareholder Wuhan Zhongheng Group signed the
“Agency Contract” with V&T Law Firm. On October 8 2016 the three parties also signed the “Supplemental
Agreement for Agency Contract” it was agreed that V&T acted as an agent for the company and Wuhan
Zhongheng Group to deal with the arbitration case with Shenzhen Vanke. After losing the lawsuit due to
differences in the payment of attorney fees V&T sued our company and Wuhan Zhongheng Group to the
Shenzhen Court of International Arbitration and applied to the court to seize a bank account under our company’sname and part of our company dormitories please refer to “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement Numbers: 2018-43 2019-02) released by our company on
www.cninfo.com on November 14 2018 and March 6 2019. 02. In November 2019 the Shenzhen Court of
International Arbitration ruled that the company and Wuhan Zhongheng Group paid the corresponding fees.
According to the “Agency Contract” and “Supplemental Agreement for Agency Contract” signed by the three
parties the loss of the arbitrament in this case was borne by Wuhan Zhongheng Group so it had no impact on thecompany’s 2019 annual profit. For details see the company’s “Other Announcements on the Progress InvolvingLitigation and Arbitration” (Announcement No.: 2019-34) released on www.cninfo.com.cn on November 25
2019.
(v) On April 29 2009 the company signed an Asset Replacement Contract with Wuhan Zhongheng Group.
According to the contract the company would use the the land use rights of two plots of land located at Huafa
Road Gongming Town Bao’an District Shenzhen i.e. land parcel number A627-0005 (real estate registration
number 8000101219) and A627-0007 (real estate registration number 8000101218) which are worth 18.55
million yuan to increase capital to Shenzhen Zhongheng Huafa Technology Co. Ltd. (hereinafter referred to as
"Huafa Technology") and transfer ownership to Huafa Technology Wuhan Zhongheng Group replaced the
company's 100% equity in Huafa Technology with its 56% equity in Wuhan Hengfa Technology Co. Ltd.. For the
main content of the above-mentioned Asset Replacement Contract please refer to the Announcement on Related
Transactions of Asset Replacement with Controlling Shareholders published by the company on cninfo on April
30 2009 with the announcement number 2009-17. After Wuhan Zhongheng Group fulfilled its obligations under
the Asset Replacement Contract the company transferred 100% of its equity in Huafa Technology to Wuhan
Zhongheng Group on December 21 2009; the company also handed over the above two plots of land to Huafa
Technology for possession management and use but the land use right has not been transferred to Huafa
Technology. In April 2020 the company received a court summons Huafa Technology sued the company
demanding that the company transfer the above two plots of land and compensate economic losses of 52 million
yuan. As of the disclosure date of this report the case has not yet been decided.Overview Date for disclosure
Information index for temporary report
disclosure
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
III. Commitments that the company shareholders actual controller offeror directors
supervisors senior management or other related parties have fulfilled during the reporting
period and have not yet fulfilled by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the company shareholders actual controller offeror directors supervisors senior management or
other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period.IV. Financial asset investment
1. Particular about security investment
□ Applicable √ Not applicable
The Company had no security investment in Period.
2. Particulars about derivatives investment
□ Applicable √ Not applicable
The Company had no derivatives investment in Period.V. Progress of investment projects with raised funds
□ Applicable √ Not applicable
VI. Prediction of 2020 business performance
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
VII. Major contracts for daily operations
□ Applicable √ Not applicable
VIII. Trust financing
√ Applicable □Not applicable
In 10 thousand Yuan
Type Capital resources Amount for entrust Balance un-expired Overdue amount
Bank financing product Own funds 4500 0 0
Total 4500 0 0
Details of the single major amount or high-risk trust investment with low security poor fluidity and non-guaranteed:
□ Applicable √ Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
IX. Guarantee outside against the regulation
□Applicable √Not applicable
The Company had no guarantee outside against the regulation in the reporting period.X. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party.XI. Registration form for receiving research communication and interview in the report
period
√ Applicable □Not applicable
Reception time
Reception
location
Reception way
Reception object
type
Reception object
The main
content of the
discussion and
the information
provided
Index of the basic
situation of the survey
July 01 2020 Huafa Building
Telephone
communication
Individual
Individual
investor
Understand the
company's
operations and
urban renewal
projects.
N/A
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO. LTD.September 30 2020
In RMB
Item September 30 2020 December 31 2019
Current assets:
Monetary funds 39824405.18 38095501.00
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable
Account receivable 179807950.94 138755691.43
Receivable financing 25436468.30 42096834.02
Accounts paid in advance 27830306.40 23007637.46
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 3837421.42 6351361.16
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 61964943.06 66971551.96
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 234014.36 1395071.36
Total current assets 338935509.66 316673648.39
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 47656744.87 48952992.57
Fixed assets 194154090.62 198229817.31
Construction in progress 740000.00
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 41211247.60 42968600.44
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
135529.27 309781.15
Deferred income tax asset 6803360.00 6803360.00
Other non-current asset 225700.00 225700.00
Total non-current asset 290926672.36 297490251.47
Total assets 629862182.02 614163899.86
Current liabilities:
Short-term loans 13660894.00 24633898.20
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable 31742938.66 16761590.51
Account payable 117058166.53 108804905.20
Accounts received in advance 2575945.15 356446.21
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 5068809.76 5877341.25
Taxes payable 12180401.27 12877944.98
Other account payable 33017621.69 28027592.62
Including: Interest payable 32583.49 89365.28
Dividend payable
Commission charge and
commission payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within
one year
12000000.00 12000000.00
Other current liabilities
Total current liabilities 227304777.06 209339718.97
Non-current liabilities:
Insurance contract reserve
Long-term loans 64000000.00 73000000.00
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 64411.00 64411.00
Deferred income 4108410.00 2331720.00
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 68172821.00 75396131.00
Total liabilities 295477598.06 284735849.97
Owner’s equity:
Share capital 283161227.00 283161227.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 146587271.50 146587271.50
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 77391593.25 77391593.25
Provision of general risk
Retained profit -172755507.79 -177712041.86
Total owner’ s equity attributable to
parent company
334384583.96 329428049.89
Minority interests
Total owner’ s equity 334384583.96 329428049.89
Total liabilities and owner’ s equity 629862182.02 614163899.86
Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
Item September 30 2020 December 31 2019
Current assets:
Monetary funds 3064933.72 3494245.90
Trading financial assets
Derivative financial assets
Note receivable
Account receivable
Receivable financing
Accounts paid in advance 68192.99
Other account receivable 97110935.46 97165023.85
Including: Interest receivable
Dividend receivable
Inventories 14806.50 14806.50
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 173950.26
Total current assets 100258868.67 100848026.51
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 186608900.00 186608900.00
Investment in other equity
instrument
Other non-current financial assets
Investment real estate 24259999.08 25166301.06
Fixed assets 97610095.73 98410024.38
Construction in progress 740000.00
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 4444999.95 4553709.24
Research and development costs
Goodwill
Long-term deferred expenses
Deferred income tax assets 7367646.35 7367646.35
Other non-current assets
Total non-current assets 321031641.11 322106581.03
Total assets 421290509.78 422954607.54
Current liabilities
Short-term borrowings
Trading financial liability
Derivative financial liability
Notes payable
Account payable 9740367.33 10745840.16
Accounts received in advance 160847.09 57266.01
Contractual liability
Wage payable 819533.72 1220979.02
Taxes payable 7112824.21 8489130.72
Other accounts payable 25669534.23 19100375.42
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
12000000.00 12000000.00
Other current liabilities
Total current liabilities 55503106.58 51613591.33
Non-current liabilities:
Long-term loans 64000000.00 73000000.00
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities 64411.00 64411.00
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 64064411.00 73064411.00
Total liabilities 119567517.58 124678002.33
Owners’ equity:
Share capital 283161227.00 283161227.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 146587271.50 146587271.50
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 77391593.25 77391593.25
Retained profit -205417099.55 -208863486.54
Total owner’s equity 301722992.20 298276605.21
Total liabilities and owner’s equity 421290509.78 422954607.54
3. Consolidated Profit Statement (the period)
In RMB
Item Current period Last period
I. Total operating income 200183800.78 209822500.84
Including: Operating income 200183800.78 209822500.84
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 198978797.84 210763371.30
Including: Operating cost 172811283.22 189516582.40
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
Tax and extras 693909.50 935427.72
Sales expense 5795363.14 5427379.54
Administrative expense 12584638.24 11289287.85
R&D expense 1889829.18 1810336.10
Financial expense 5203774.56 1784357.69
Including: Interest
expenses
2602455.65 2581721.35
Interest income -706051.52 -125377.00
Add: other income 297083.00 590800.00
Investment income (Loss is
listed with “-”)
36391.75 25798.17
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
553901.68
Income from assets disposal
(Loss is listed with “-”)
6493.86 5741.55
III. Operating profit (Loss is listed with
“-”)
1544971.55 235370.94
Add: Non-operating income 636677.55 789674.24
Less: Non-operating expense 144287.86
IV. Total profit (Loss is listed with “-”) 2181649.10 880757.32
Less: Income tax expense 496160.16 84474.73
V. Net profit (Net loss is listed with “-”) 1685488.94 796282.59
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
1685488.94 796282.59
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
1685488.94 796282.59
2.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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 1685488.94 796282.59
Total comprehensive income
attributable to owners of parent Company
1685488.94 796282.59
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0060 0.0028
(ii) Diluted earnings per share 0.0060 0.0028
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
realized 0 Yuan at last period for combined party
Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of Parent Company (the period)
In RMB
Item Current period Last period
I. Operating income 9700766.65 9961436.61
Less: Operating cost 2010843.62 2069605.63
Taxes and surcharge 292882.29 391785.64
Sales expenses
Administration expenses 4904736.24 5609016.68
R&D expenses
Financial expenses 1899186.60 2148813.04
Including: interest
expenses
1897345.14 2145901.94
Interest income -15379.69 -2564.86
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
553901.68
Income on disposal of assets
(Loss is listed with “-”)
970.87
II. Operating profit (Loss is listed with
“-”)
593117.90 297088.17
Add: Non-operating income 70901.00 717590.27
Less: Non-operating expense 103732.84
III. Total Profit (Loss is listed with “-”) 664018.90 910945.60
Less: Income tax 166004.73 123929.34
IV. Net profit (Net loss is listed with
“-”)
498014.17 787016.26
(i)continuous operating net profit(net loss listed with ‘-”)
498014.17 787016.26
(ii) termination of net profit (netloss 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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 498014.17 787016.26
VII. Earnings per share:
(i) Basic earnings per share 0.0018 0.0028
(ii) Diluted earnings per share 0.0018 0.0028
5. Consolidated Profit Statement (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Total operating income 500887222.16 549012674.89
Including: Operating income 500887222.16 549012674.89
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 496032602.64 547196425.35
Including: Operating cost 436770935.85 487096790.74
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
Tax and extras 1697965.55 2245537.72
Sales expense 14895442.53 14557759.76
Administrative expense 29667000.90 30906279.24
R&D expense 4313254.44 5537328.96
Financial expense 8688003.37 6852728.93
Including: Interest
expenses
6620657.92 7937398.27
Interest income -694194.83 -544713.28
Add: other income 645623.00 590800.00
Investment income (Loss is
listed with “-”)
103172.15 100734.31
Including: Investment income
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
-8432.50
Losses of devaluation of asset
(Loss is listed with “-”)
553901.68
Income from assets disposal
(Loss is listed with “-”)
-93373.67 134781.12
III. Operating profit (Loss is listed with
“-”)
5510041.00 3188034.15
Add: Non-operating income 681877.61 1022432.24
Less: Non-operating expense 7302.38 145387.86
IV. Total profit (Loss is listed with “-”) 6184616.23 4065078.53
Less: Income tax expense 1333529.74 688384.81
V. Net profit (Net loss is listed with “-”) 4851086.49 3376693.72
(i) Classify by business continuity
1.continuous operating net profit(net loss listed with ‘-”)
4851086.49 3376693.72
2.termination of net profit (net losslisted with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
of parent company
4851086.49 3376693.72
2.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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income 4851086.49 3376693.72
Total comprehensive income
attributable to owners of parent Company
4851086.49 3376693.72
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.0171 0.0119
(ii) Diluted earnings per share 0.0171 0.0119
Enterprise combine under the same control in the Period the combined party realized net profit of 0 Yuan before combination and
realized 0 Yuan at last period for combined party
Legal representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institution: Wu Aijie
6. Profit Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Operating income 26421289.12 28002571.92
Less: Operating cost 4051069.73 5241637.22
Taxes and surcharge 835591.62 953846.69
Sales expenses
Administration expenses 11112937.22 14633411.18
R&D expenses
Financial expenses 5915163.69 6572512.09
Including: interest
expenses
5915547.41 6544235.24
Interest income -8498.23 -12502.96
Add: other income
Investment income (Loss is
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
553901.68
Income on disposal of assets
(Loss is listed with “-”)
970.87
II. Operating profit (Loss is listed with
“-”)
4506526.86 1156037.29
Add: Non-operating income 88655.80 718890.27
Less: Non-operating expense 103732.84
III. Total Profit (Loss is listed with “-”) 4595182.66 1771194.72
Less: Income tax 1148795.67 338991.62
IV. Net profit (Net loss is listed with
“-”)
3446386.99 1432203.10
(i)continuous operating net profit(net loss listed with ‘-”)
3446386.99 1432203.10
(ii) termination of net profit (netloss 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 of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income 3446386.99 1432203.10
VII. Earnings per share:
(i) Basic earnings per share 0.0122 0.0051
(ii) Diluted earnings per share 0.0122 0.0051
7. Consolidated Cash Flow Statement (form the year-begin to the period-end)
In RMB
Item Current Period Last Period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
404327921.90 414860034.76
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
Cash received from interest
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 105447.58
Other cash received concerning
operating activities
18415376.92 14532454.74
Subtotal of cash inflow arising from
operating activities
422848746.40 429392489.50
Cash paid for purchasing 316753970.40 269022454.37
commodities and receiving labor
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 43987629.67 48855955.01
Taxes paid 6909436.73 7705078.65
Other cash paid concerning
operating activities
41506986.55 50006770.55
Subtotal of cash outflow arising from
operating activities
409158023.35 375590258.58
Net cash flows arising from operating
activities
13690723.05 53802230.92
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment
income
85357.08 100725.72
Net cash received from disposal of
fixed intangible and other long-term
assets
213913.05 321800.00
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
45000000.00 50000000.00
Subtotal of cash inflow from investing
activities
45299270.13 50422525.72
Cash paid for purchasing fixed
intangible and other long-term assets
3628023.06 7773184.27
Cash paid for investment
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
45000000.00 50000000.00
Subtotal of cash outflow from investing
activities
48628023.06 57773184.27
Net cash flows arising from investing
activities
-3328752.93 -7350658.55
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 20610902.80 184128246.40
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
20610902.80 184128246.40
Cash paid for settling debts 40370812.20 224996378.63
Cash paid for dividend and profit
distributing or interest paying
6089776.45 8351111.69
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
46460588.65 233347490.32
Net cash flows arising from financing
activities
-25849685.85 -49219243.92
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-509270.83 276036.36
V. Net increase of cash and cash
equivalents
-15996986.56 -2491635.19
Add: Balance of cash and cash
equivalents at the period -begin
36645061.61 27961209.60
VI. Balance of cash and cash
equivalents at the period -end
20648075.05 25469574.41
8. Cash Flow Statement of Parent Company (form the year-begin to the period-end)
In RMB
Item Current period Last period
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor
services
29740862.92 20170963.62
Write-back of tax received
Other cash received concerning
operating activities
12173422.70 115634867.63
Subtotal of cash inflow arising from
operating activities
41914285.62 135805831.25
Cash paid for purchasing
commodities and receiving labor
service
Cash paid to/for staff and workers 2887228.68 2647115.02
Taxes paid 3018731.15 1683890.02
Other cash paid concerning
operating activities
22290833.36 122196203.72
Subtotal of cash outflow arising from
operating activities
28196793.19 126527208.76
Net cash flows arising from operating
activities
13717492.43 9278622.49
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
5412.95
Cash paid for investment
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
activities
5412.95
Net cash flows arising from investing
activities
-5412.95
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Cash received from loans 90000000.00
Other cash received concerning
financing activities
Subtotal of cash inflow from financing
activities
90000000.00
Cash paid for settling debts 9000000.00 102000000.00
Cash paid for dividend and profit
distributing or interest paying
5263469.61 6544235.24
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
activities
14263469.61 108544235.24
Net cash flows arising from financing
activities
-14263469.61 -18544235.24
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increase of cash and cash
equivalents
-545977.18 -9271025.70
Add: Balance of cash and cash
equivalents at the period -begin
2046143.44 12024179.58
VI. Balance of cash and cash
equivalents at the period -end
1500166.26 2753153.88
II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new revenue
rules and new leasing rules from 2020
□Applicable √Not applicable
2. Retrospective adjustment of the comparative data for initial implementation of new revenue rules and
new leasing rules from 2020
□Applicable √Not applicable
III. Audit report
Whether the 3rd quarterly report has been audited or not
□Yes √ No
The 3rd quarterly report of the Company has not been audited.
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