深华发B:EN公司2022年第三季度报告

Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Stock Code: 000020 200020 Public Notice No.: 2022-44

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

Shenzhen Zhongheng Huafa Co. Ltd.The Third Quarterly Report for 2022

The Company and whole members of the BOD guarantee that the information disclosed is true

accurate and complete and there are no any fictitious records misleading statements or important

omissions.Important content reminder:

1. Board of Directors Supervisory Committee all directors supervisors and senior

executives of Shenzhen Zhongheng Huafa Co. Ltd. (hereinafter referred to as the

Company) 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.

2. Principal of the Company Person in Charge of Accounting Works and Person in

Charge of Accounting Organ (Accounting Officer) hereby confirm that the Financial

Report of the Third Quarterly Report is authentic accurate and complete.

3. Whether the Third Quarterly Report has been audited or not

□Yes √No

1Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

I. Main financial data

(i) Main accounting data and financial indexes

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

□Yes √No

Increase/decrease from

Increase/decrease in the

year-begin to period-

period compared with the Year-begin to

Current period end compared with the

same period of the period-end

same period of the

previous year

Operating income (Yuan) 163496024.99 -22.84% 517642945.80 -14.23%

Net profit attributable to

shareholders of the listed -282038.65 -124.72% 8524746.45 5.07%

company (Yuan)

Net profit attributable to

shareholders of the listed

company after deducting -1079915.71 -288.72% 3071013.23 -58.12%

non-recurring gains and

losses (Yuan)

Net cash flow arising from

— — 78036564.86 424.00% operating activities (Yuan)

Basic earnings per share

-0.0010 -125.00% 0.0301 4.51% (Yuan /Share)

Diluted earnings per share

-0.0010-125.00%0.03014.51%

(Yuan /Share)

Weighted average ROE -0.08% -0.41% 2.45% 0.28%

End of current Increase/decrease at the period-end compared

End of previous year

period with the end of the previous year

Total assets (Yuan) 613640331.12 659933225.57 -7.01%

Net assets attributable to

shareholder of listed 351975385.76 343450639.31 2.48%

company (Yuan)

(ii) Items and amounts of non-recurring profit (gains)/losses

√ Applicable □ Not applicable

Unit: Yuan

Amount from year-begin to

Amount for the

Item Note

period period-end

Gains/losses from the disposal of non-

current asset (including the write-off that 35802.67 825110.93

accrued for impairment of assets)

Government subsidy recorded in current 446257.00 4961580.81

2Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

gains/losses (except those closely related

to the Company’s normal operation and

those continuously enjoyed on a fixed or

quantitative basis with certain standards

in accordance with national policy

regulations)

Gains/losses of entrusting others to

188158.81 368247.00 invest or manage assets

Other non-operating income and

291290.53316557.14

expenses other than the above

减：所得税影响额163631.951017762.66

Total 797877.06 5453733.22 --

Other gain/loss items that qualified the definition of non-recurring profit (gains)/losses:

□ Applicable √ Not applicable

The Company does not have other gain/loss items that qualified the definition of non-recurring profit (gains)/lossesExplanation on those non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss

□ Applicable √ Not applicableThe Company does not have the non-recurring gain/loss listed in the “Q&A Announcement No.1 on Information Disclosure forCompanies Offering Their Securities to the Public --- Extraordinary Profit/loss” defined as recurring gain/loss

(iii) Particulars about changes in items of main accounting data and financial index and explanations of

reasons

√ Applicable □Not applicable

January-September January-September Changes ratio Reason

Item

20222021

Effectively accelerate

inventory turnover and

Monetary fund 84034727.69 34426043.11 144.10%

reduction in capital

occupation

Less revenue and notes

Note receivable 66137240.28 105922317.60 -37.56% receivable in the current

period

Receivable Reduction in the amount of

226046.05500000.00-54.79%

financing bank acceptance

The raw materials of

constant hair display module

Accounts paid in Hengfa Co. Ltd.are mostly

15255113.19 7996570.95 90.77% advance prepaid.

September increases

prepayment for new orders in

October

Effectively accelerate

Inventories 59245974.71 90585670.27 -34.60% inventory turnover and

capital occupation

Other current assets 3732033.86 -100.00% VAT withholding reduction

3Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Continuing investment in

Construction in

1055000.00 740000.00 42.57% Gongming Electronic City progress

Renovation Project

Amortization of property

Right-of-use assets 130811.70 209298.72 -37.50%

using rights

Loan Reduction of Hengfa

Short-term loans 8874750.00 26480857.00 -66.49%

Co. Ltd.Increase in bill Settlement

Note payable 32770753.77 21554981.30 52.03%

Ratio

Other current

36458028.55 64644280.61 -43.60% Less endorsed undue paper

liabilities

Amortization of Lease

Lease liability 71938.12 115101.00 -37.50%

liability

Non-current Return a long-term loan that

liabilities due 12104400.61 61104400.61 -80.19%

within one year is due in one year

Long-term loans 40000000.00 New long-term loan this year

Item September 30 2022 September 30 2021 Changes ratio Reason

Decrease in Retained VAT

Tax and extras 2969226.43 2180093.13 36.20% this year.Increase in tax

and extra charges

Financial expense 947222.43 6725414.16 -85.92% Currency fluctuations

Increased in received

other income 4961580.81 345453.35 1336.25% government subsidies this

year

Investment Increase in financial 368247.00 238661.58 54.30%

income management this year

Decrease in stock this year

Losses of

0 -1350000.00 -100% and effective digestion of

devaluation of asset

waste material

Income from assets Fixed Asset Disposal in the

825110.9321059.603817.98%

disposal Closed-down Business Section

Breach of contract damages

Less: Non-

55821.78 219887.56 -74.61% occurred in the previous operating expense

period

Write-back of tax Increase in Export tax

2843031.082159861.9531.63%

received rebate

Increase in the payment of

Taxes paid 26493389.34 19266205.32 37.51%

VAT and additional

Net cash

received from Fixed Asset Disposal in the

disposal of fixed 3858165.26 100950.00 3721.86%

intangible and other Closed-down Business Section

long-term assets

Other cash received

concerning

investing 105000000.00 0 - Financial redemption

activities

Cash paid for

purchasing fixed Decrease in fixed asset

1697030.833919845.12-56.71%

intangible and other input this year

long-term assets

Other cash paid Wealth-management products

concerning 105000000.00 0 -

investing activities purchasing

4Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Cash paid for

dividend and profit Decrease in loans and

3758805.155510317.28-31.79%

distributing or interest this year

interest paying

II. Shareholders Information

(i) Total number of common shareholders and preference shareholders with voting rights recovered and

top ten common shareholders

In Share

Total common shareholders at the end of Total preference shareholders with voting rights

221390

report period recovered at end of reporting period (if applicable)

Top ten shareholders

Proportion Amount of Information of shares pledged tagged

Shareholder’s Nature of Amount of

of shares restricted or frozen

name shareholder shares held

held shares held State of share Amount

Wuhan Zhongheng Frozen 119289894

New Science & Domestic non-

Technology state-owned legal 42.13% 119289894 0

Industrial Group person Pledged 116100000

Co. Ltd

SEG (HONG Overseas legal

5.85%165695600

KONG) CO. LTD. person

GOOD HOPE

CORNER Overseas legal

2.50% 7072000 0 INVESTMENTS person

LTD.Changjiang

Securities

Overseas legal

Brokerage

1.89% 5355249 0 person

(Hongkong) Co.Ltd.Guoyuan Securities

Overseas legal

Brokerage (Hong

1.37% 3870117 0 person

Kong) Limited

Overseas nature

Li Zhongqiu 1.00% 2830000 0

person

Domestic nature

He Wei 0.75% 2111019 0

person

Domestic nature

Yao Ming 0.63% 1788005 0

person

Shengyin

Overseas legal

Investment Co. 0.50% 1408600 0

person

Ltd.Domestic nature

Wang Ying 0.40% 1134400 0

person

Particular about top ten shareholders with un-restrict shares held

Type of shares

Shareholders’ name Amount of un-restrict shares held at Period-end

Type Amount

Wuhan Zhongheng New Science & RMB common

119289894119289894

Technology Industrial Group Co. Ltd share

Domestically

SEG (HONG KONG) CO. LTD. 16569560 listed foreign 16569560

5Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Domestically

GOOD HOPE CORNER

7072000 listed foreign 7072000

INVESTMENTS LTD.shares

Domestically

Changjiang Securities Brokerage

5355249 listed foreign 5355249

(Hongkong) Co. Ltd.shares

Domestically

Guoyuan Securities Brokerage (Hong

3870117 listed foreign 3870117

Kong) Limited

Domestically

Li Zhongqiu 2830000 listed foreign 2830000

Domestically

He Wei 2111019 listed foreign 2111019

Domestically

Yao Ming 1788005 listed foreign 1788005

Domestically

Shengyin Investment Co. Ltd. 1408600 listed foreign 1408600

Domestically

Wang Ying 1134400 listed foreign 1134400

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. Shengyin Investment Co. Ltd. is an

Explanation on associated relationship among the overseas wholly-owned subsidiary of Wuhan Zhongheng group.The

aforesaid shareholders 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.Description of the above shareholders in relation to

delegate/entrusted voting rights and abstention from N/A

voting rights.(ii) Total shareholders with preferred stock held and shares held by top ten shareholders with preferred

stock held

□ Applicable √ Not applicable

III. Explanation on other significant events

√ Applicable □ Not applicable

(1) 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

6Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

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 of

2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewaland the progress of related transactions of ‘the updated units at Huafa Area Gong Ming Street Guangming NewDistrict Shenzhen’” the company has signed the “Agreement on the cooperation of urban renewal project of theupdated units at Huafa Area Gong Ming Street Guangming New District Shenzhen” “Contract for thecooperative venture of reconstruction project for Huafa Industrial Park Gong Ming Street Guangming NewDistrict” on 26 August 2015 and “Agreement on housing acquisition and removal compensation and resettlement”

with Wuhan 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.In April 2020 Zhongheng Semiconductor sued the company to Shenzhen Intermediate People’s Court and

requested the company to transfer the above mentioned two pieces of lands and compensate the economic loss of

52 million yuan the first and second trial judgments reject the Semiconductor’s appeal; ZhonghengSemiconductor sued the Company and the invalid of “Agreement on the cooperation of urban renewal project ofthe updated units at Huafa Area Gong Ming Street Guangming New District Shenzhen” signed by Wuhan

Zhongheng Group Company and Vanke the second trial rejects all claims of Zhongheng Semiconductor. Progress

7Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

of the case found more in the Notices released on Juchao website 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 7 Sept.

2018 21 Apr. 2020 3 Jun 2021 22 Jul. 2021 and Mar. 5 2022 respectively.

(2) 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 date 2 Feb. 2018.In March 2021 Wuhan Zhongheng Group received the judgment on case of “pledged securities repurchasedispute” brought by China Merchants Securities Assets Management Co. Ltd from High People’s Court of

Guangdong Province. Wuhan Zhongheng Group appealed to the Supreme People’s Court against the decision.Found more in notice released on Juchao Website dated March 19 2021.

(3) 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 Juchao Website

dated October 27 2016 January 11 2019 May 31 2019 and August 7 2019.

(4) 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 “SupplementalAgreement 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 on Juchao Website dated

November 14 2018 and March 6 2019. In November 2019 the Shenzhen Court of International Arbitration ruled

that the company and Wuhan Zhongheng Group paid the corresponding fees. According to the relevant agreement

of the “Entrusted Agency Contract” and “Supplementary Agreement” signed by the three parties loss of the

8Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

ruling in the case shall be fully borne by Wuhan Zhongheng Group therefore it has no impact on the profit of the

Company. Found more on “Other Announcements on the Progress Involving Litigation and Arbitration”

(Announcement No.: 2019-34) released on Juchao Website dated November 25 2019.

(5) Business of the Company - Styrofoam is a traditional manufacturing industry. The industry has stepping into

the maturity with severe overcapacity the oversupply leads to a low gross margin and downward trend ofprofitability of the Company’s products. The “proposal to shut down the Styrofoam business from wholly-ownedsubsidiary” was deliberated and approved by the third interim meeting of BOD of 2022. Closure of the plant is

progressing steadily.IV. Quarterly financial statements

(i) Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.Unit: Yuan

Item September 30 2021 December 31 2020

Current assets:

Monetary fund 84034727.69 34426043.11

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 66137240.28 105922317.60

Account receivable 116458797.19 128675327.97

Receivable financing 226046.05 500000.00

Accounts paid in advance 15255113.19 7996570.95

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 5086075.03 4520412.70

Including: Interest receivable 0.00

Dividend receivable

Buying back the sale of financial

assets

Inventories 59245974.71 90585670.27

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 3732033.86

Total current assets 346443974.14 376358376.46

Non-current assets:

Loans and payments on behalf

Debt investment

9Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Other debt investment

Long-term account receivable

Long-term equity investment

Investment in other equity

instrument

Other non-current financial assets

Investment real estate 44895530.10 46191777.80

Fixed assets 174130318.28 187889261.50

Construction in progress 1055000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets 130811.70 209298.72

Intangible assets 37883734.72 39171573.09

Expense on Research and

Development

Goodwill

Long-term expenses to be

1473066.07 1691257.89 apportioned

Deferred income tax asset 7627896.11 7681680.11

Other non-current asset

Total non-current asset 267196356.98 283574849.11

Total assets 613640331.12 659933225.57

Current liabilities:

Short-term loans 8874750.00 26480857.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 32770753.77 21554981.30

Account payable 75725264.50 88529478.96

Accounts received in advance 0.00

Contractual liability 786643.80 736355.70

Selling financial asset of repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 4717302.50 3844381.07

Taxes payable 14473118.97 14657117.69

Other account payable 31674585.36 30448913.14

Including: Interest payable 112741.09 113080.26

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within

12104400.6161104400.61

one year

Other current liabilities 36458028.55 64644280.61

Total current liabilities 217584848.06 312000766.08

Non-current liabilities:

Insurance contract reserve

Long-term loans 40000000.00

Bonds payable

Including: Preferred stock

Perpetual capital

securities

Lease liability 71938.12 115101.00

10Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Long-term account payable

Long-term wages payable

Accrual liability 801159.18 801159.18

Deferred income 3207000.00 3565560.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 44080097.30 4481820.18

Total liabilities 261664945.36 316482586.26

Owner’s equity:

Share capital 283161227.00 283161227.00

Other equity instrument

Including: Preferred stock

Perpetual capital

securities

Capital public reserve 146577771.50 146577771.50

Less: Inventory shares 0.00

Other comprehensive income

Reasonable reserve 0.00

Surplus public reserve 77391593.25 77391593.25

Provision of general risk 0.00

Retained profit -155155205.99 -163679952.44

Total owner’ s equity attributable to

351975385.76343450639.31

parent company

Minority interests

Total owner’ s equity 351975385.76 343450639.31

Total liabilities and owner’ s equity 613640331.12 659933225.57

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Chen Zhigang

Person in charge of accounting institute: Chuai Guoxu

2. Consolidated Profit Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Total operating income 517642945.80 603532726.46

Including: Operating income 517642945.80 603532726.46

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 512537271.49 592280418.87

Including: Operating cost 457223464.54 525693924.66

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

11Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Tax and extras 2969226.43 2180093.13

Sales expense 14611641.85 18991695.17

Administrative expense 29913230.86 33036011.08

R&D expense 6872485.38 5653280.67

Financial expense 947222.43 6725414.16

Including: Interest

4246764.09 5977916.47 expenses

Interest income 302035.05 234372.30

Add: other income 4961580.81 345453.35

Investment income (Loss is

368247.00238661.58

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 “-”)

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

0.00 -1350000.00 (Loss is listed with “-”)

Income from assets disposal

825110.9321059.60

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

11260613.0510507482.12“-”)

Add: Non-operating income 372378.92 394744.60

Less: Non-operating expense 55821.78 219887.56

IV. Total profit (Loss is listed with “-”) 11577170.19 10682339.16

Less: Income tax expense 3052423.74 2569327.53

V. Net profit (Net loss is listed with “-”) 8524746.45 8113011.63

(i) Classify by business continuity

1.continuous operating net profit

8524746.45 8113011.63 (net loss listed with ‘-”)

2.termination of net profit (net losslisted with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to owner’s

8524746.45 8113011.63 of parent company

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

12Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

(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 8524746.45 8113011.63

Total comprehensive income

attributable to owners of parent 8524746.45 8113011.63

Company

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0301 0.0288

(ii) Diluted earnings per share 0.0301 0.0288

Enterprise combine under the same control in the Period the combined party realized net profit of 0.00 Yuan before combination

and realized 0.00 Yuan at last period for combined party

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Chen Zhigang

Person in charge of accounting institute: Chuai Guoxu

3. Consolidated Cash Flow Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 425141075.61 383981831.41

services

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

13Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

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 2843031.08 2159861.95

Other cash received concerning

9511449.9913230159.40

operating activities

Subtotal of cash inflow arising from

437495556.68399371852.76

operating activities

Cash paid for purchasing

258731249.86291924059.89

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 43707955.83 54527895.49

Taxes paid 26493389.34 19266205.32

Other cash paid concerning

30526396.7957707341.64

operating activities

Subtotal of cash outflow arising from

359458991.82423425502.34

operating activities

Net cash flows arising from operating

78036564.86-24053649.58

activities

II. Cash flows arising from investing

activities:

Cash received from recovering

investment

Cash received from investment

351648.64 275579.90 income

Net cash received from disposal of

fixed intangible and other long-term 3858165.26 100950.00

assets

Net cash received from disposal of

subsidiaries and other units

Other cash received concerning

105000000.00

investing activities

Subtotal of cash inflow from investing

109209813.90 376529.90 activities

Cash paid for purchasing fixed

1697030.833919845.12

intangible and other long-term assets

Cash paid for investment

Net increase of mortgaged loans 0.00

Net cash received from subsidiaries

and other units obtained

Other cash paid concerning

105000000.00

investing activities

Subtotal of cash outflow from investing

106697030.833919845.12

activities

Net cash flows arising from investing

2512783.07 -3543315.22 activities

III. Cash flows arising from financing

activities

Cash received from absorbing

investment

14Shenzhen Zhongheng Huafa Co. Ltd. The Third Quarterly Report for 2022

Including: Cash received from

absorbing minority shareholders’

investment by subsidiaries

Cash received from loans 76609277.00 86967694.00

Other cash received concerning

financing activities

Subtotal of cash inflow from financing

76609277.00 86967694.00 activities

Cash paid for settling debts 104483955.10 71384425.00

Cash paid for dividend and profit

3758805.155510317.28

distributing or interest paying

Including: Dividend and profit of

minority shareholder paid by subsidiaries

Other cash paid concerning

financing activities

Subtotal of cash outflow from financing

108242760.2576894742.28

activities

Net cash flows arising from financing

-31633483.25 10072951.72 activities

IV. Influence on cash and cash

equivalents due to fluctuation in 692819.90 -495777.96

exchange rate

V. Net increase of cash and cash

49608684.58 -18019791.04 equivalents

Add: Balance of cash and cash

32802562.90 60968053.58 equivalents at the period-begin

VI. Balance of cash and cash equivalents

82411247.48 42948262.54 at the period-end

(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.Board of Directors of

Shenzhen Zhongheng Huafa Co. Ltd.October 25 2022

行情