Stock Code: 000020 200020 Public Notice No.: 2019-21

Short Form of the Stock: SHEN HUAFA-A SHEN HUAFA- B

Shenzhen Zhongheng Huafa Co. Ltd.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 semi-annual report that published on media appointed

by CSRC.

Objection statement of directors supervisors and senior executives

Name Position Content and reason

Statement

Other directors attending the Meeting for semi-annual report deliberation except for the followed

Name of director absent Title for absent director Reasons for absent Attorney

Gao Jianbai director personal reason Li Zhongqiu

Xu Jinwen independent director personal reason Zhang Zhaoguo

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 plan of cash dividends carried out bonus issued and capitalizing of common reserves either.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

Shen Huafa A

Shen Huafa B

Stock code 000020 200020

Stock exchange for listing Shenzhen Stock Exchange

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

Name Yang Bin Niu Zhuo

Office 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

E-mail hwafainvestor@126.com.cn hwafainvestor@126.com.cn

2. 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) 339190174.05 340984843.24 -0.53%

Net profit attributable to shareholders of

the listed company (RMB)

2580411.13 2793133.60 -7.62%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

2197912.06 2053467.02 7.03%

Net cash flow arising from operating

activities (RMB)

45194220.56 -26671325.63

Basic earnings per share (RMB/Share) 0.0091 0.0099 -8.08%

Diluted earnings per share (RMB/Share) 0.0091 0.0099 -8.08%

Weighted average ROE 0.79% 0.87% -0.08%

Period-end Period-end of last year

Changes over period-end of

last year (+-)

Total assets (RMB) 623980175.29 617090153.46 1.12%

Net assets attributable to shareholder of

listed company (RMB)

326548411.87 323968000.74 0.80%

3. Amount of shareholders of the Company and particulars about shares holding

In Share

Total common stock shareholders in

reporting period-end

23417

Total preference shareholders

with voting rights recovered at

end of reporting period (if

applicable)

0

Shares held by top ten shareholders

Full name of

Shareholders

Nature of

shareholder

Proportion of

shares held

Number of

shares held

Amount of restricted shares held

Number of share

pledged/frozen

State of share Amount

Wuhan

Zhongheng

Group

Domestic

non-state-owne

d 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

INVESTMENT

S LTD

Overseas legal

person

4.49% 12700000 0

Pledged 0

Frozen 0

Changjiang

Securities

Brokerage

(Hong Kong)

Co. Ltd.

Overseas legal

person

1.89% 5355249 0

Pledged 0

Frozen 0

Guoyuan

Securities

Brokerage

(Hong Kong)

Co. Ltd.

Overseas legal

person

1.36% 3845117 0

Pledged 0

Frozen 0

Li Zhongqiu

Overseas nature

person

1.00% 2830000 0

Pledged 0

Frozen 0

Zhong Jiachao

Domestic

nature person

0.45% 1277494 0

Pledged 0

Frozen 0

Li Senzhuang

Domestic

nature person

0.35% 986550 0

Pledged 0

Frozen 0

LI SHERYN

ZHAN MING

Overseas nature

person

0.35% 980100 0

Pledged 0

Frozen 0

Han Yaming

Domestic

nature person

0.30% 864200 0

Pledged 0

Frozen 0

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.

Explanation on shareholders

involving margin business (if

applicable)

Among the top ten shareholders Zhong Jiachao holds 1277494 shares of the Company of

which 743494 shares held by normal account and 534000 shares held through credit security

account

4. 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 period

Changes of actual controller in reporting period

□ Applicable √Not applicable

No changes of actual controllers for the Company 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

The Company had no shareholders with preferred stock held in the reporting.

6. Corporate bond

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 business

1. Introduction of operation in the reporting period

Whether the company needs to comply with the disclosure requirements of the particular industry

No

After years of development the company has gradually formed two main businesses in industry and property

management. Among them the industrial business mainly includes injection molding POLYLON (light-weight

packaging materials) and complete machine production and sales of liquid crystal display property management

business is mainly the lease of its own property.In the first half of 2019 the company achieved operation revenue of 339.19 million yuan with a y-o-y declined of

0.53%; operating profit of 295 million yuan with a y-o-y growth of 16.15%; net profit of 2.58 million yuan with

a y-o-y declined of 7.62%; operation revenue from industry production has 318.76 million yuan in the first half of

the year with a y-o-y declined of 1.43% operating profit of 1.69 million yuan with a y-o-y declined of 68.15%;

net profit of 1.6358 million yuan with a y-o-y declined of 68.24%; the revenue earns from property leasing in first

half year comes to 18.91 million yuan an increase of 21.20% over the same period last year and the operating

profit was 1.26 million yuan with a y-o-y growth of 3.93 million yuan (from the same period last year to (2.67)

million yuan); the net profit was 94.58 million yuan and from the same period last year to (1.72) million yuan.2. Matters relevant to financial report

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

compared with the accounting period of last year

√Applicable □ Not applicable

Contents and Causes of Accounting Policy Change Approval procedure Note

The Ministry of Finance issued 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 after revised in 2017 ( these four items are collectively referred to as the new

financial instrument standards).The Company implemented the above mentioned new standards

after revision since 1st January 2019 and relevant content with accounting policy concerned are

been adjusted.

Change of the accounting

policy has deliberated and

approved by the 11th

session of 9th BOD

In 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) (hereinafter referred to as Financial

Statement Format) in terms of the financial statement of mid-term 2019 the annual financial

statement and later period’s financial statement are required to preparing in line with the Accounting

Standards for Business Enterprise and Financial Statement Format.

Change of the accounting

policy has deliberated and

approved by the 11th

session of 9th BOD

The Company will implement the relevant regulation of Cai Kuai (2019) No.6 issued by Ministry of Finance

relevant financial statements are been adjusted. Items and amount has major influence on 31

st

December 2018 in

balance sheet are as:

Item Consolidated Balance Sheet

Before the adjustment After the adjustment

Notes Receivable and Accounts Receivable 185983351.22

Notes Receivable 69185516.71

Accounts Receivable 116797834.51

Notes Payable and Accounts Payable 88617663.09

Notes Payable 27642356.66

Accounts Payable 60975306.43

(2) Particulars about retroactive restatement on major correction for accounting errors in reporting period

□ Applicable √ Not applicable

The company had no particulars about retroactive restatement on major correction for accounting errors in the reporting period.

(3) Particulars about the change of consolidation range compared with the accounting period of last year

□ Applicable √ Not applicable

The Company’s consolidation range has no changes in the period.