Stock Code: 000020 200020 Public Notice No.: 2020-26

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

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

Risk warning for objection statement of directors supervisors and senior executives

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

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 Niu Zhuo

Office add. 618 East Tower Huafa Building No.411

Bldg Huafa (N) Road Futian District

Shenzhen

Tel. 0755-86360201

E-mail huafainvestor@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) 300703421.38 339190174.05 -11.35%

Net profit attributable to shareholders of

the listed company (RMB)

3165597.55 2580411.13 22.68%

Net profit attributable to shareholders of

the listed company after deducting

non-recurring gains and losses (RMB)

3167896.46 190686.95 1561.31%

Net cash flow arising from operating

activities (RMB)

21200212.24 45194220.56 -53.09%

Basic earnings per share (RMB/Share) 0.0112 0.0091 23.08%

Diluted earnings per share (RMB/Share) 0.0112 0.0091 23.08%

Weighted average ROE 0.96% 0.79% 0.17%

Period-end Period-end of last year

Changes over period-end of

last year (+-)

Total assets (RMB) 610602250.47 614163899.86 -0.58%

Net assets attributable to shareholder of

listed company (RMB)

332593647.44 329428049.89 0.96%

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

In Share

Total common stock shareholders in

reporting period-end

24154

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 Overseas legal 3.43% 9722000 0 Pledged 0

CORNER

INVESTMENT

S LTD.person

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

1.37% 3870117 0

Pledged 0

Frozen 0

Li Zhongqiu

Overseas nature

person

1.00% 2830000 0

Pledged 0

Frozen 0

Zhong Jiachao

Domestic

nature person

0.47% 1329602 0

Pledged 0

Frozen 0

China

Merchants

Securities Hong

Kong Limited

State-owned

legal person

0.39% 1113288 0

Pledged 0

Frozen 0

LI SHERYN

ZHAN MING

Overseas nature

person

0.38% 1074000 0

Pledged 0

Frozen 0

Li Senzhuang

Domestic

nature person

0.36% 1017773 0

Pledged 0

Frozen 0

Explanation on associated

relationship among the aforesaid

shareholders

Among the top ten shareholders Li Zhongqiu is the actual controller of Wuhan Zhongheng New

Science & Technology Industrial Group Co. Ltd. and is a party acting in concert. 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.

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

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.

Affected by the outbreak of COVID-19 in the first half of 2020 the company achieved operation revenue of

300.7034 million yuan with a y-o-y declined of 11.35%; operation profit of 3.9651 million yuan a y-o-y growth

of 34.29%; net profit achieved 3.1656 million yuan a y-o-y growth of 22.68%. The operation revenue from

industry production has 281.1885 million yuan a 11.79% down from a year earlier operation profit has 987300

yuan loss a declined of 158.28% on a y-o-y basis net profit has 824100 yuan loss with a 150.38% down on a

y-o-y basis. In property lease business operation revenue achieved 18.7013 million yuan in first half of the year a

6.22% increased over same period last year operation profit achieved 4.9531 million yuan a y-o-y growth of

292..85% the net profit achieved 3.9904 million yuan a y-o-y growth of 321.94%.

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

On 5 July 2017 the Ministry of Finance issued the Notice on Revision and Issuance of Accounting Standards for Business Enterprise

No.14- Revenue (Cai Kuai [2017] No.22) enterprises that are listed both at home and abroad as well as those listed overseas and

prepared their financial statements using IFRS or Accounting Standards for Business Enterprise sha ll enter into force as of 1 Jan.

2018; other enterprise listed at home shall enter into force as of 1 Jan. 2020; and the non-listed enterprises that implement the

Accounting Standards for Business Enterprise shall enter into force as of 1 Jan. 2021. In accordance with the requirements of the

above document the Company will implement the New Revenue Standards as of 1 Jan. 2020 and will make changes to the relevant

accounting policies in line with the provisions of the New Revenue Standards.

(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.