Stock Code: 000020 200020 Short Form of the Stock: SHEN HUAFA-A SHEN HUAFA-B Public Notice No.: 2022-18

Shenzhen Zhongheng Huafa Co. Ltd.Supplementary Correction Notice

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.Shenzhen Zhongheng Huafa Co.Ltd. (Hereinafter referred to as the "Company") disclosed The Full

Text of The Report for The First quarter of 2021 The Text of The Report for The First Quarter of

2021(Announcement No.:2021-10) Semi-Annual Report 2021 Summary of Semi-Annual Report

2021 (Announcement No. :2021-19) and The Third Quarter Report 2021 (Announcement

No. :2021-21) on April 27 2021 August 24 2021 and October 26 2021 respectively. The following

corrections are hereby made：

一、The original The Full Text of The Report for The First quarter of 2021

（一）Section II Basic situation of the Company

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

At the same period of last Changes of this period over

Current period

year same period of last year

Operating income (RMB) 190936203.57 87800584.55 117.47%

Net profit attributable to shareholders of

5566539.83-400741.171489.06%

the listed company (RMB)

Net profit attributable to shareholders of

the listed company after deducting 5485566.41 -208179.52 2735.02%

non-recurring gains and losses (RMB)

Net cash flow arising from operating

-5125776.387931308.59-164.63%

activities (RMB)

Basic earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Diluted earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Weighted average ROE 1.64% -0.12% 1.76%

At the end of the reporting Changes of this period-end

At the end of last year

period over same period-end of lastyear

Total assets (RMB) 637533668.46 627779621.06 1.55%

Net assets attributable to shareholder of

341815277.12336248737.291.65%

listed company (RMB)

Revised content:

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

At the same period of last Changes of this period over

Current period

year same period of last year

Operating income (RMB) 190936203.57 87800584.55 117.47%

Net profit attributable to shareholders of

5557677.31-400741.171489.06%

the listed company (RMB)

Net profit attributable to shareholders of

the listed company after deducting 5476703.89 -208179.52 2735.02%

non-recurring gains and losses (RMB)

Net cash flow arising from operating

-5125776.387931308.59-164.63%

activities (RMB)

Basic earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Diluted earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Weighted average ROE 1.64% -0.12% 1.76%

Changes of this period-end

At the end of the reporting

At the end of last year over same period-end of last

period

year

Total assets (RMB) 637523241.97 627779621.06 1.55%

Net assets attributable to shareholder of

341806414.60336248737.291.65%

listed company (RMB)

（二）Section III. Significant Events

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item March 31 2021 January 1 2021 Y-o-y Reasons of changes

changes

Other receivables 2060681.11 4466949.96 -53.87% Decrease in current accounts

Inventory 103742880.06 70502773.52 47.62% Stocking in this periodThe tax to be deducted is deducted for

Other current assets 1129263.49 4255643.19 -73.46%

the current period.Long-term prepaid Cloud service fee amortization

19361.3577445.31-75.00%

expenses

Short-term bank loans were increased

Short-term loans 20921296.00 12527808.00 67.00%

in the current period.The deposit received in advance has

Contract liabilities 171293.92 287140.66 -40.34%

decreased during the period.Employee The prepaid wages and expenses are

compensation 3106406.38 5737366.59 -45.86% paid in the current period

payable

Other payables 18556536.88 27608281.01 -32.79% Decrease in current accounts

Short-term loans increased in the

Interest payable 63086.88 26335.66 139.55%

current period.January to March January to March Y-o-y Reasons of changes

Item

2021 2020 changes

Operating income 190936203.57 87800584.55 117.47% Increase in orders this period

Operating cost 160681999.84 73672446.25 118.10% Increase in orders this period

Sales expense 9604962.16 3448537.85 178.52% Increase in orders this period

Increased in R&D investment in this

R&D expenses 1990208.94 908285.77 119.12%

period

Amortization of deferred income for

Other income 119520.00 64770.00 84.53%

the current period

Increase in financial income during

Investment income 71186.44 37415.02 90.26%

the current period

Non-operating Government subsidy income from the

19464.755492.44254.39%

income previous period

Non-operating Liquidated damages occurred in the

8950.00263835.56-96.61%

expenses previous period

Income tax expense 1362439.81 -85032.71 -1702.25% Increase in profit for the period

January to March January to March Y-o-y Reasons of changes

Item

2021 2020 changes

Cash received from Increase in sales collection in this

the sale of goods period

118847638.9286584529.5837.26%

and the provision of

labor services

Cash paid for Increase in orders this period

purchasing goods

90764568.4156760923.4159.91%

and receiving labor

services

Cash paid to and for Increase in orders this period

18034045.238467600.61112.98%

employeesTaxes paid 8114109.92 2351100.26 245.12% Increase in orders this period

Cash received from Margin interest increased in this

71186.4437415.0290.26%

investment income period

Net cash received Disposal of old equipment in the

from the disposal of previous period

fixed assets

13000.0091000.00-85.71%

intangible assets and

other long-term

assets

Cash paid for the Purchase production equipment in

purchase and this period

construction of fixed

1624675.50467211.58247.74%

assets intangible

assets and other

long-term assets

Other cash paid Bank wealth management decreased

relating to investing - 25000000.00 -100.00% in this period

activities

Cash received from Increase in short-term loans

20710525.006725056.80207.96%

loans

Other cash paid Increase acceptance margin in this

relating to financing 6408886.53 - period

activities

Influence on cash The impact of exchange rate

and cash equivalents fluctuations in the current period

-124286.4132336.78484.35%

due to fluctuation in

exchange rate

Revised content:

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item March 31 2021 January 1 2021 Y-o-y Reasons of changes

changes

Other receivables 2060681.11 4466949.96 -53.87% Decrease in current accounts

Inventory 103732453.57 70502773.52 47.13% Stocking in this period

The tax to be deducted is deducted for

Other current assets 1129263.49 4255643.19 -73.46%

the current period.Long-term prepaid Cloud service fee amortization

19361.3577445.31-75.00%

expensesShort-term bank loans were increased

Short-term loans 20921296.00 12527808.00 67.00%

in the current period.The deposit received in advance has

Contract liabilities 171293.92 287140.66 -40.34%

decreased during the period.Employee The prepaid wages and expenses are

compensation 3106406.38 5737366.59 -45.86% paid in the current period

payable

Other payables 18556536.88 27608281.01 -32.79% Decrease in current accounts

Short-term loans increased in the

Interest payable 63086.88 26335.66 139.55%

current period.January to March January to March Y-o-y Reasons of changes

Item

2021 2020 changes

Operating income 190936203.57 87800584.55 117.47% Increase in orders this period

Operating cost 160692426.33 73672446.25 118.12% Increase in orders this period

Sales expense 9604962.16 3448537.85 178.52% Increase in orders this period

Increased in R&D investment in this

R&D expenses 1990208.94 908285.77 119.12%

period

Amortization of deferred income for

Other income 119520.00 64770.00 84.53%

the current period

Increase in financial income during

Investment income 71186.44 37415.02 90.26%

the current period

Non-operating Government subsidy income from the

19464.755492.44254.39%

income previous period

Non-operating Liquidated damages occurred in the

8950.00263835.56-96.61%

expenses previous period

Income tax expense 1360875.84 -85032.71 -1700.41% Increase in profit for the period

January to March January to March Y-o-y Reasons of changes

Item

2021 2020 changes

Cash received from Increase in sales collection in this

the sale of goods period

118847638.9286584529.5837.26%

and the provision of

labor services

Cash paid for Increase in orders this period

purchasing goods

90764568.4156760923.4159.91%

and receiving labor

services

Cash paid to and for Increase in orders this period

18034045.238467600.61112.98%

employees

Taxes paid 8114109.92 2351100.26 245.12% Increase in orders this period

Cash received from Margin interest increased in this

71186.4437415.0290.26%

investment income periodNet cash received Disposal of old equipment in the

from the disposal of previous period

fixed assets

13000.0091000.00-85.71%

intangible assets and

other long-term

assets

Cash paid for the Purchase production equipment in

purchase and this period

construction of fixed

1624675.50467211.58247.74%

assets intangible

assets and other

long-term assets

Other cash paid Bank wealth management decreased

relating to investing - 25000000.00 -100.00% in this period

activities

Cash received from Increase in short-term loans

20710525.006725056.80207.96%

loans

Other cash paid Increase acceptance margin in this

relating to financing 6408886.53 - period

activities

Influence on cash The impact of exchange rate

and cash equivalents fluctuations in the current period

-124286.4132336.78484.35%

due to fluctuation in

exchange rate

（三）Section IV. Financial Statement

I. Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.March 31 2021

In RMB

Item March 31 2021 March 31 2020

Current assets:

Monetary fund 57688251.58 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assetsNote receivable 9506829.34 20240464.79

Account receivable 141260234.64 128063911.79

Receivable financing 9727239.72 10057385.11

Accounts paid in advance 35287786.09 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 2060681.11 4466949.96

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 103742880.06 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 1129263.49 4255643.19

Total current assets 360403166.03 337861677.02

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 46792579.70 47224662.27

Fixed assets 181745798.39 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assetsIntangible assets 40383028.86 40820657.80

Expense on Research and

Development

Goodwill

Long-term expenses to be

19361.3577445.31

apportioned

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 277130502.43 289917944.04

Total assets 637533668.46 627779621.06

Current liabilities:

Short-term loans 20921296.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 37089784.05 37416381.20

Account payable 120547983.80 98318239.88

Accounts received in advance

Contractual liability 171293.92 287140.66

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 3106406.38 5737366.59

Taxes payable 11967269.75 14204642.62

Other account payable 18556536.88 27608281.01

Including: Interest payable 63086.88 26335.66

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for saleNon-current liabilities due within

12000000.0012000000.00

one year

Other current liabilities 9369289.56 18322972.81

Total current liabilities 233434975.36 226127947.79

Non-current liabilities:

Insurance contract reserve

Long-term loans 58000000.00 61000000.00

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 3924120.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 61988531.00 65108051.00

Total liabilities 295718391.34 291530883.77

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

Other comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -165315314.63 -170881854.46

Total owner’ s equity attributable to

341815277.12336248737.29

parent companyMinority interests

Total owner’ s equity 341815277.12 336248737.29

Total liabilities and owner’ s equity 637533668.46 627779621.06

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Wu Aijie

3. Consolidated Profit Statement

In RMB

Item Current period Last period

I. Total operating income 190936203.57 87800584.55

Including: Operating income 190936203.57 87800584.55

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 184208445.12 88130200.33

Including: Operating cost 160681999.84 73672446.25

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 643046.97 584743.27

Sales expense 9604962.16 3448537.85

Administrative expense 9403968.16 8058091.66

R&D expense 1990208.94 908285.77

Financial expense 1884259.05 1458095.53Including: Interest

1805136.092375650.33

expenses

Interest income 107550.38 128721.93

Add: other income 119520.00 64770.00

Investment income (Loss is

71186.4437415.02

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

(Loss is listed with “-”)

Income from assets disposal

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

6918464.89-227430.76

“-”)

Add: Non-operating income 19464.75 5492.44

Less: Non-operating expense 8950.00 263835.56

IV. Total profit (Loss is listed with “-”) 6928979.64 -485773.88

Less: Income tax expense 1362439.81 -85032.71

V. Net profit (Net loss is listed with “-”) 5566539.83 -400741.17

(i) Classify by business continuity

1.continuous operating net profit

5566539.83-400741.17(net loss listed with ‘-”)

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

(ii) Classify by ownership

1.Net profit attributable to owner’s

5566539.83-400741.17

of parent company2.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 comprehensiveincome attributable to minority

shareholders

VII. Total comprehensive income 5566539.83 -400741.17

Total comprehensive income

5566539.83-400741.17

attributable to owners of parent Company

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0197 -0.0014

(ii) Diluted earnings per share 0.0197 -0.0014

Revised content:

I. Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.March 31 2021

In RMB

Item March 31 2021 March 31 2020

Current assets:

Monetary fund 57688251.58 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 9506829.34 20240464.79

Account receivable 141260234.64 128063911.79

Receivable financing 9727239.72 10057385.11

Accounts paid in advance 35287786.09 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 2060681.11 4466949.96

Including: Interest receivable

Dividend receivableBuying back the sale of financial

assets

Inventories 103732453.57 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 1129263.49 4255643.19

Total current assets 360392739.54 337861677.02

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 46792579.70 47224662.27

Fixed assets 181745798.39 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 40383028.86 40820657.80

Expense on Research and

Development

Goodwill

Long-term expenses to be

19361.3577445.31

apportioned

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 277130502.43 289917944.04

Total assets 637523241.97 627779621.06

Current liabilities:Short-term loans 20921296.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 37089784.05 37416381.20

Account payable 120547983.80 98318239.88

Accounts received in advance

Contractual liability 171293.92 287140.66

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 3106406.38 5737366.59

Taxes payable 11965705.78 14204642.62

Other account payable 18556536.88 27608281.01

Including: Interest payable 63086.88 26335.66

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within

12000000.0012000000.00

one year

Other current liabilities 9369289.56 18322972.81

Total current liabilities 233728296.37 226127947.79

Non-current liabilities:

Insurance contract reserve

Long-term loans 58000000.00 61000000.00

Bonds payable

Including: Preferred stock

Perpetual capital

securitiesLease liability

Long-term account payable

Long-term wages payable

Accrual liability 64411.00 64411.00

Deferred income 3924120.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 61988531.00 65108051.00

Total liabilities 295716827.37 291530883.77

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

Other comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -165324177.15 -170881854.46

Total owner’ s equity attributable to

341806414.60336248737.29

parent company

Minority interests

Total owner’ s equity 341806414.60 336248737.29

Total liabilities and owner’ s equity 637523241.97 627779621.06

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Wu Aijie

3. Consolidated Profit Statement

In RMBItem Current period Last period

I. Total operating income 190936203.57 87800584.55

Including: Operating income 190936203.57 87800584.55

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 184218871.61 88130200.33

Including: Operating cost 160692426.33 73672446.25

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 643046.97 584743.27

Sales expense 9604962.16 3448537.85

Administrative expense 9403968.16 8058091.66

R&D expense 1990208.94 908285.77

Financial expense 1884259.05 1458095.53

Including: Interest

1805136.092375650.33

expenses

Interest income 107550.38 128721.93

Add: other income 119520.00 64770.00

Investment income (Loss is

71186.4437415.02

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

(Loss is listed with “-”)

Income from assets disposal

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

6908038.40-227430.76

“-”)

Add: Non-operating income 19464.75 5492.44

Less: Non-operating expense 8950.00 263835.56

IV. Total profit (Loss is listed with “-”) 6918553.15 -485773.88

Less: Income tax expense 1360875.84 -85032.71

V. Net profit (Net loss is listed with “-”) 5557677.31 -400741.17

(i) Classify by business continuity

1.continuous operating net profit

5557677.31-400741.17(net loss listed with ‘-”)

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

(ii) Classify by ownership

1.Net profit attributable to owner’s

5557677.31-400741.17

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 definedbenefit 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 5557677.31 -400741.17

Total comprehensive income

5557677.31-400741.17

attributable to owners of parent Company

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0197 -0.0014

(ii) Diluted earnings per share 0.0197 -0.0014二、The original The Text of The Report for The First Quarter of 2021

（一）Section II. Basic situation of the Company

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

At the same period of last Changes of this period over

Current period

year same period of last year

Operating income (RMB) 190936203.57 87800584.55 117.47%

Net profit attributable to shareholders of

5566539.83-400741.171489.06%

the listed company (RMB)

Net profit attributable to shareholders of

the listed company after deducting 5485566.41 -208179.52 2735.02%

non-recurring gains and losses (RMB)

Net cash flow arising from operating

-5125776.387931308.59-164.63%

activities (RMB)

Basic earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Diluted earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Weighted average ROE 1.64% -0.12% 1.76%

Changes of this period-end

At the end of the reporting

At the end of last year over same period-end of last

period

year

Total assets (RMB) 637533668.46 627779621.06 1.55%

Net assets attributable to shareholder of

341815277.12336248737.291.65%

listed company (RMB)

Revised content:

I. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□Yes √ No

At the same period of last Changes of this period over

Current period

year same period of last year

Operating income (RMB) 190936203.57 87800584.55 117.47%

Net profit attributable to shareholders of

5557677.31-400741.171489.06%

the listed company (RMB)

Net profit attributable to shareholders of

5476703.89-208179.522735.02%

the listed company after deductingnon-recurring gains and losses (RMB)

Net cash flow arising from operating

-5125776.387931308.59-164.63%

activities (RMB)

Basic earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Diluted earnings per share (RMB/Share) 0.0197 -0.0014 1507.14%

Weighted average ROE 1.64% -0.12% 1.76%

Changes of this period-end

At the end of the reporting

At the end of last year over same period-end of last

period

year

Total assets (RMB) 637523241.97 627779621.06 1.55%

Net assets attributable to shareholder of

341806414.60336248737.291.65%

listed company (RMB)

（二）Section III. Significant Events

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item March 31 2021 January 1 2021 Y-o-y changes Reasons of changes

Other receivables 2060681.11 4466949.96 -53.87% Decrease in current accounts

Inventory 103742880.06 70502773.52 47.62% Stocking in this period

The tax to be deducted is deducted for the

Other current assets 1129263.49 4255643.19 -73.46%

current period.Long-term prepaid Cloud service fee amortization

19361.3577445.31-75.00%

expenses

Short-term bank loans were increased in

Short-term loans 20921296.00 12527808.00 67.00%

the current period.The deposit received in advance has

Contract liabilities 171293.92 287140.66 -40.34%

decreased during the period.Employee The prepaid wages and expenses are paid

3106406.385737366.59-45.86%

compensation payable in the current period

Other payables 18556536.88 27608281.01 -32.79% Decrease in current accounts

Short-term loans increased in the current

Interest payable 63086.88 26335.66 139.55%

period.Item January to March January to March Reasons of changes

Y-o-y changes

20212020

Operating income 190936203.57 87800584.55 117.47% Increase in orders this period

Operating cost 160681999.84 73672446.25 118.10% Increase in orders this period

Sales expense 9604962.16 3448537.85 178.52% Increase in orders this period

R&D expenses 1990208.94 908285.77 119.12% Increased in R&D investment in thisperiod

Amortization of deferred income for the

Other income 119520.00 64770.00 84.53%

current period

Increase in financial income during the

Investment income 71186.44 37415.02 90.26%

current period

Government subsidy income from the

Non-operating income 19464.75 5492.44 254.39%

previous period

Non-operating Liquidated damages occurred in the

8950.00263835.56-96.61%

expenses previous period

Income tax expense 1362439.81 -85032.71 -1702.25% Increase in profit for the period

Item January to March January to March Reasons of changes

Y-o-y changes

20212020

Cash received from Increase in sales collection in this period

the sale of goods and

118847638.9286584529.5837.26%

the provision of labor

services

Cash paid for Increase in orders this period

purchasing goods and

90764568.4156760923.4159.91%

receiving labor

services

Cash paid to and for Increase in orders this period

18034045.238467600.61112.98%

employees

Taxes paid 8114109.92 2351100.26 245.12% Increase in orders this period

Cash received from Margin interest increased in this period

71186.4437415.0290.26%

investment income

Net cash received Disposal of old equipment in the previous

from the disposal of period

fixed assets intangible 13000.00 91000.00 -85.71%

assets and other

long-term assets

Cash paid for the Purchase production equipment in this

purchase and period

construction of fixed

1624675.50467211.58247.74%

assets intangible

assets and other

long-term assets

Other cash paid Bank wealth management decreased in

relating to investing - 25000000.00 -100.00% this period

activities

Cash received from Increase in short-term loans

20710525.006725056.80207.96%

loans

Other cash paid 6408886.53 - Increase acceptance margin in this periodrelating to financing

activities

Influence on cash and The impact of exchange rate fluctuations

cash equivalents due in the current period

-124286.4132336.78484.35%

to fluctuation in

exchange rate

Revised content:

I. Particulars about material changes in items of main accounting statement and financial

index and explanations of reasons

√Applicable □Not applicable

Item March 31 2021 January 1 2021 Y-o-y changes Reasons of changes

Other receivables 2060681.11 4466949.96 -53.87% Decrease in current accounts

Inventory 103732453.57 70502773.52 47.13% Stocking in this period

The tax to be deducted is deducted for the

Other current assets 1129263.49 4255643.19 -73.46%

current period.Long-term prepaid Cloud service fee amortization

19361.3577445.31-75.00%

expenses

Short-term bank loans were increased in

Short-term loans 20921296.00 12527808.00 67.00%

the current period.The deposit received in advance has

Contract liabilities 171293.92 287140.66 -40.34%

decreased during the period.Employee The prepaid wages and expenses are paid

3106406.385737366.59-45.86%

compensation payable in the current period

Other payables 18556536.88 27608281.01 -32.79% Decrease in current accounts

Short-term loans increased in the current

Interest payable 63086.88 26335.66 139.55%

period.Item January to March January to March Reasons of changes

Y-o-y changes

20212020

Operating income 190936203.57 87800584.55 117.47% Increase in orders this period

Operating cost 160692426.33 73672446.25 118.12% Increase in orders this period

Sales expense 9604962.16 3448537.85 178.52% Increase in orders this period

Increased in R&D investment in this

R&D expenses 1990208.94 908285.77 119.12%

period

Amortization of deferred income for the

Other income 119520.00 64770.00 84.53%

current period

Increase in financial income during the

Investment income 71186.44 37415.02 90.26%

current period

Government subsidy income from the

Non-operating income 19464.75 5492.44 254.39%

previous periodNon-operating Liquidated damages occurred in the

8950.00263835.56-96.61%

expenses previous period

Income tax expense 1360875.84 -85032.71 -1700.41% Increase in profit for the period

Item January to March January to March Reasons of changes

Y-o-y changes

20212020

Cash received from Increase in sales collection in this period

the sale of goods and

118847638.9286584529.5837.26%

the provision of labor

services

Cash paid for Increase in orders this period

purchasing goods and

90764568.4156760923.4159.91%

receiving labor

services

Cash paid to and for Increase in orders this period

18034045.238467600.61112.98%

employees

Taxes paid 8114109.92 2351100.26 245.12% Increase in orders this period

Cash received from Margin interest increased in this period

71186.4437415.0290.26%

investment income

Net cash received Disposal of old equipment in the previous

from the disposal of period

fixed assets intangible 13000.00 91000.00 -85.71%

assets and other

long-term assets

Cash paid for the Purchase production equipment in this

purchase and period

construction of fixed

1624675.50467211.58247.74%

assets intangible

assets and other

long-term assets

Other cash paid Bank wealth management decreased in

relating to investing - 25000000.00 -100.00% this period

activities

Cash received from Increase in short-term loans

20710525.006725056.80207.96%

loans

Other cash paid Increase acceptance margin in this period

relating to financing 6408886.53 -

activities

Influence on cash and The impact of exchange rate fluctuations

cash equivalents due in the current period

-124286.4132336.78484.35%

to fluctuation in

exchange rate

三、The original Semi-Annual Report 2021（一）Section II. Company Profile and Main Financial Indexes

VI. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √ No

Current period Same period of last year Changes over last year

Operating income(RMB) 391633808.55 300703421.38 30.24%

Net profit attributable to shareholders of

7023114.723165597.55121.86%

the listed company(RMB)

Net profit attributable to shareholders of

the listed company after deducting 7067951.02 3167896.46 123.11%

non-recurring gains and losses(RMB)

Net cash flow arising from operating

-21818369.5921200212.24-202.92%

activities(RMB)

Basic earnings per share(RMB/Share) 0.0248 0.0112 121.43%

Diluted earnings per share(RMB/Share) 0.0248 0.0112 121.43%

Weighted average ROE 2.07% 0.96% 1.11%

Changes over period-end

Current period-end period-end of last year

of last year

Total assets(RMB) 673387235.69 627779621.06 7.26%

Net assets attributable to shareholder of

343271852.01336248737.292.09%

listed company(RMB)

Revised content:

VI. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √ No

Current period Same period of last year Changes over last year

Operating income(RMB) 391633808.55 300703421.38 30.24%

Net profit attributable to shareholders of

6989362.483165597.55120.79%

the listed company(RMB)

Net profit attributable to shareholders of

the listed company after deducting 7034198.78 3167896.46 122.05%

non-recurring gains and losses(RMB)

Net cash flow arising from operating

-21818369.5921200212.24-202.92%

activities(RMB)

Basic earnings per share(RMB/Share) 0.0248 0.0112 121.43%Diluted earnings per share(RMB/Share) 0.0248 0.0112 121.43%

Weighted average ROE 2.07% 0.96% 1.11%

Changes over period-end

Current period-end period-end of last year

of last year

Total assets(RMB) 673347527.18 627779621.06 7.26%

Net assets attributable to shareholder of

343238099.77336248737.292.08%

listed company(RMB)

（二）Section III Management Discussion and Analysis

III. Main business analysis

See the “I. Main businesses of the company in the reporting period”

Change of main financial data on a y-o-y basis

In RMB

Same period of last

Current period y-o-y changes (+-) Reasons

year

Video incomes

Operation income 391633808.55 300703421.38 30.24%

increased

Operation cost 334484096.74 263959652.63 26.72%

After-sales service fee

Sales expenses 14094617.96 9100079.39 54.88%

increased

Administrative

22680307.24 17082362.66 32.77% Repair fee increased

expenses

Financial cost 5241702.86 3484228.81 50.44% Exchange increased

Income tax expense 1590676.66 837369.58 89.96% Profit growth

Increase new products

R&D investment 3955647.50 2423425.26 63.23%

in the Period

The inventory

Net cash flow arising increased in the Period

from operation -21818369.59 21200212.24 -202.92% due to the epidemic in

activities the first half year of

last year

Net cash flow arising

Investment for fixed

from investment -2316374.60 -1338379.56 -73.07%

assets increased

activities

Net cash flow arising

Bank loans increased

from financing 23182219.89 -34838186.71 166.54%

in the period

activitiesThe inventory and

Net increase of cash

-1355867.36 -14832093.81 -90.86% account receivable

and cash equivalent

increased

The industries products or regions accounting for over 10% of the company’s operating revenue or operating profit

√Applicable □ Not applicable

In RMB

Increase/decrea

Increase/decrea Increase/decrea

Operation Operation Gross profit se of gross

se of operation se of operation

income cost ratio profit ratio

income y-o-y cost y-o-y

y-o-y

According to industries

Display 198422034.91 182038564.14 8.26% 22.00% 19.00% 1.69%

Plastic

injection 106953726.74 96354708.77 9.91% 25.00% 22.00% 2.25%

hardware

According to products

Display 198422034.91 182038564.14 8.26% 22.00% 19.00% 1.69%

Plastic

injection 106953726.74 96354708.77 9.91% 25.00% 19.00% 2.25%

hardware

According to region

Hong Kong and

95746383.9279562859.8816.90%-8.97%-19.29%10.62%

Taiwan

Central China 207413929.85 194921928.05 6.02% 67.15% 70.48% -1.84%

East China 87594449.15 80998643.40 7.53% 122.78% 120.08% 1.14%

South China 5152357.42 6030530.61 -17.04% -72.26% 195.58% -106.06%

Reasons for y-o-y relevant data with over 30% changes

√Applicable □Not applicable

Y-o-y

Item 2021-6-30 2021-1-1 changes Causes

(+-)

2 0 2 4 0464.79 -98% Discounting of note

Note receivable 491683.78 receivable increased in

the period

5774948.69 10057385.11 -43% Discounting of note

Receivable financing receivable increased in

the period22540779.20 4466949.96 405% Current accounts

Other account receivable

increased

7 0 1 6 6 0 13.49 85% Inventory has

Inventory 129917660.51 significantly increased

from Hengfa

4 2 5 5643.19 -83% The input tax to be

Other current assets

741380.21 deducted declined

7 0 5 % Contract renewal of SAP

Long-term deferred expenses

623601.5977445.31

51089579.00 12527808.00 308% Loans of Hengfa

Short-term loans

increased

1 6 7% Account received in

Contractual liabilities

765555.97 287140.66 advance increased

3886717.29 5737366.59 -32% Last year’s year-end

Wages payable

bonus distributed

5 8 2 % Loans increased

Interest payable

179523.7226335.66

1 8 3 2 2972.81 -99% Notes already endorsed

Other current liability

211799.13 and outstanding declined

Y-o-y

Item Jan.- Jun. 2021 Jan.- Jun. 2020 changes Causes

(+-)

Operation tax and surcharge 1428361.92 1004056.05 42% Additional tax increased

1 5 0 2 % Loan subsidies

Interest income

189945.5511856.69

- 9 9% Government subsidy

Other income

3553.35348540.00

1 2 4 % Wealth management

Investment income

149767.58 66780.40 income

5 1 2 % Government subsidy

Non-operation revenue

276599.0445200.06

2 8 4 7 % Penalty expenses

Non-operation expense

215202.927302.38

V. Assets and liability analysis

1. Major changes of assets composition

In RMB

End of the current period End of last year

Ratio

Ratio in Ratio in Notes of major changes

Amount Amount changes

total totalassets assets

Monetary fund 59612186.22 8.85% 60968053.58 9.71% -0.86%

Account

135750939.5920.16%128063911.7920.40%-0.24%

receivable

Inventory 129917660.51 19.29% 70166013.49 11.18% 8.11% Inventory from Hengfa increased

Investment real

46360497.136.88%47224662.277.52%-0.64%

estate

Fixed assets 191477026.08 28.43% 193605444.53 30.84% -2.41%

Construction in

740000.000.11%740000.000.12%-0.01%

process

Short-term

51089579.00 7.59% 12527808.00 2.00% 5.59% Loans increased in the period

loans

Contractual

765555.970.11%287140.660.05%0.06%

liabilities

Long-term

61000000.009.06%61000000.009.72%-0.66%

loans

Revised content:

III. Main business analysis

See the “I. Main businesses of the company in the reporting period”

Change of main financial data on a y-o-y basis

In RMB

Same period of last

Current period y-o-y changes (+-) Reasons

year

Video incomes

Operation income 391633808.55 300703421.38 30.24%

increased

Operation cost 334523805.25 263959652.63 26.73%

After-sales service fee

Sales expenses 14094617.96 9100079.39 54.88%

increased

Administrative

22680307.24 17082362.66 32.77% Repair fee increased

expenses

Financial cost 5241702.86 3484228.81 50.44% Exchange increased

Income tax expense 1584720.39 837369.58 89.25% Profit growth

Increase new products

R&D investment 3955647.50 2423425.26 63.23%

in the Period

Net cash flow arising -21818369.59 21200212.24 -202.92% The inventoryfrom operation increased in the Period

activities due to the epidemic in

the first half year of

last year

Net cash flow arising

Investment for fixed

from investment -2316374.60 -1338379.56 -73.07%

assets increased

activities

Net cash flow arising

Bank loans increased

from financing 23182219.89 -34838186.71 166.54%

in the period

activities

The inventory and

Net increase of cash

-1355867.36 -14832093.81 -90.86% account receivable

and cash equivalent

increased

The industries products or regions accounting for over 10% of the company’s operating revenue or operating profit

√Applicable □ Not applicable

In RMB

Increase/decrea

Increase/decrea Increase/decrea

Operation Operation Gross profit se of gross

se of operation se of operation

income cost ratio profit ratio

income y-o-y cost y-o-y

y-o-y

According to industries

Display 198422034.91 181998855.63 8.28% 22.00% 19.00% 1.69%

Plastic

injection 106953726.74 96354708.77 9.91% 25.00% 22.00% 2.25%

hardware

According to products

Display 198422034.91 181998855.63 8.28% 22.00% 19.00% 1.69%

Plastic

injection 106953726.74 96354708.77 9.91% 25.00% 19.00% 2.25%

hardware

According to region

Hong Kong and

95569502.3879562859.8816.75%-8.97%-19.29%10.62%

Taiwan

Central China 203317499.60 190785789.29 6.16% 67.15% 70.48% -1.84%

East China 87594449.15 80998643.40 7.53% 122.78% 120.08% 1.14%

South China 5152357.42 6030530.61 -17.04% -72.26% 195.58% -106.06%

Reasons for y-o-y relevant data with over 30% changes√Applicable □Not applicable

Y-o-y

Item 2021-6-30 2021-1-1 changes Causes

(+-)

2 0 2 4 0464.79 -98% Discounting of note

Note receivable 491683.78 receivable increased in

the period

5774948.69 10057385.11 -43% Discounting of note

Receivable financing receivable increased in

the period

22540779.20 4466949.96 405% Current accounts

Other account receivable

increased

7 0 1 6 6 0 13.49 85% Inventory has

Inventory 129877952.00 significantly increased

from Hengfa

4 2 5 5643.19 -83% The input tax to be

Other current assets

741380.21 deducted declined

7 0 5 % Contract renewal of SAP

Long-term deferred expenses

623601.5977445.31

51089579.00 12527808.00 308% Loans of Hengfa

Short-term loans

increased

1 6 7% Account received in

Contractual liabilities

765555.97 287140.66 advance increased

3886717.29 5737366.59 -32% Last year’s year-end

Wages payable

bonus distributed

5 8 2 % Loans increased

Interest payable

179523.7226335.66

1 8 3 2 2972.81 -99% Notes already endorsed

Other current liability

211799.13 and outstanding declined

Y-o-y

Item Jan.- Jun. 2021 Jan.- Jun. 2020 changes Causes

(+-)

Operation tax and surcharge 1428361.92 1004056.05 42% Additional tax increased

1 5 0 2 % Loan subsidies

Interest income

189945.5511856.69

- 9 9% Government subsidy

Other income

3553.35348540.00

1 2 4 % Wealth management

Investment income

149767.58 66780.40 income

5 1 2 % Government subsidy

Non-operation revenue

276599.0445200.06

Non-operation expense 2 8 4 7 % Penalty expenses215202.92 7302.38

V. Assets and liability analysis

1. Major changes of assets composition

In RMB

End of the current period End of last year

Ratio in Ratio in Ratio

Notes of major changes

Amount total Amount total changes

assets assets

Monetary fund 59612186.22 8.85% 60968053.58 9.71% -0.86%

Account

135750939.5920.16%128063911.7920.40%-0.24%

receivable

Inventory 129877952.00 19.29% 70166013.49 11.18% 8.11% Inventory from Hengfa increased

Investment real

46360497.136.88%47224662.277.52%-0.64%

estate

Fixed assets 191477026.08 28.43% 193605444.53 30.84% -2.41%

Construction in

740000.000.11%740000.000.12%-0.01%

process

Short-term

51089579.00 7.59% 12527808.00 2.00% 5.59% Loans increased in the period

loans

Contractual

765555.970.11%287140.660.05%0.06%

liabilities

Long-term

61000000.009.06%61000000.009.72%-0.66%

loans

（三）Section X. Financial Report

I. Audit report

Whether the semi annual report is audited

□ Yes √ No

The company's semi annual financial report has not been audited

II. Financial Statement

Statement in Financial Notes are carried in RMB/CNY

1. Consolidated Balance Sheet

Prepared by SHENZHEN ZHONGHENG HUAFA CO. LTD.In RMB

Item June 30 2021 December 31 2020

Current assets:

Monetary funds 59612186.22 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 491683.78 20240464.79

Account receivable 135750939.59 128063911.79

Receivable financing 5774948.69 10057385.11

Accounts paid in advance 31961398.64 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 22540779.20 4466949.96

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventories 129917660.51 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 741380.21 4255643.19

Total current assets 386790976.84 337861677.02

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 46360497.13 47224662.27Fixed assets 191477026.08 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 39945399.92 40820657.80

Expense on Research and Development

Goodwill

Long-term expenses to be apportioned 623601.59 77445.31

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 286596258.85 289917944.04

Total assets 673387235.69 627779621.06

Current liabilities:

Short-term loans 51089579.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 42983519.37 37416381.20

Account payable 116056638.57 98318239.88

Accounts received in advance

Contractual liability 765555.97 287140.66

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 3886717.29 5737366.59

Taxes payable 12939066.90 14204642.62

Other account payable 37074456.45 27608281.01

Including: Interest payable 179523.72 26335.66

Dividend payable

Commission charge and commission payable

Reinsurance payableLiability held for sale

Non-current liabilities due within one year 12000000.00

Other current liabilities 211799.13 18322972.81

Total current liabilities 265007332.68 226422832.77

Non-current liabilities:

Insurance contract reserve

Long-term loans 61000000.00 61000000.00

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 4043640.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 65108051.00 65108051.00

Total liabilities 330115383.68 291530883.77

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

Other comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -163858739.74 -170881854.46

Total owner’ s equity attributable to parent company 343271852.01 336248737.29

Minority interests

Total owner’ s equity 343271852.01 336248737.29Total liabilities and owner’ s equity 673387235.69 627779621.06

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Chuai Guoxu

3. Consolidated Profit Statement

In RMB

Item 2021 semi-annual 2020 semi-annual

I. Total operating income 391633808.55 300703421.38

Including: Operating income 391633808.55 300703421.38

Interest income

Insurance gained

Commission charge and commission income

II. Total operating cost 381884734.22 297053804.80

Including: Operating cost 334484096.74 263959652.63

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 1428361.92 1004056.05

Sales expense 14094617.96 9100079.39

Administrative expense 22680307.24 17082362.66

R&D expense 3955647.50 2423425.26

Financial expense 5241702.86 3484228.81

Including: Interest expenses 3774381.48 4018202.27

Interest income 189945.55 11856.69

Add: Other income 3553.35 348540.00

Investment income (Loss is listed with “-”) 149767.58 66780.40

Including: Investment income on affiliated company andjoint venture

The termination of income recognition for financial

assets measured by amortized cost

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 “-”) -1350000.00

Income from assets disposal (Loss is listed with “-”) -99867.53

III. Operating profit (Loss is listed with “-”) 8552395.26 3965069.45

Add: Non-operating income 276599.04 45200.06

Less: Non-operating expense 215202.92 7302.38

IV. Total profit (Loss is listed with “-”) 8613791.38 4002967.13

Less: Income tax expense 1590676.66 837369.58

V. Net profit (Net loss is listed with “-”) 7023114.72 3165597.55

(i) Classify by business continuity

1.continuous operating net profit (net loss listed with ‘-”) 7023114.72 3165597.55

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

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent company 7023114.72 3165597.55

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 loss1.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 7023114.72 3165597.55

Total comprehensive income attributable to owners of parent

7023114.723165597.55

Company

Total comprehensive income attributable to minority

shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0248 0.0112

(ii) Diluted earnings per share 0.0248 0.0112

7. Statement of Changes in Owners’ Equity (Consolidated)

Current Amount

In RMB

Semi-annual of 2021

Owners’ equity attributable to the parent Company

Other

equity

Othe

instrument Less Tota

r Prov

Per : Reas Min l

Item Sha Capi com Surp ision Reta

pet Inve onab ority own

re Pre tal preh lus of ined Othe Subt

ual ntor le inter ers’

cap fer reser ensi reser gene profi r otal

cap Ot y reser ests equit

ital red ve ve ve ral t

ital her shar ve y

sto inco risk

sec es

ck me

urit

ies283

146773-170336336

I. The ending 16

577915881248248

balance of the 12

771.93.2854.737.737.

previous year 27.

505462929

00

Add: Changes

of accounting

policy

Error

correction of

the last period

Enterprise

combine

under the

same control

Other

283

II. The 146 773 -170 336 336

16

beginning 577 915 881 248 248

12

balance of the 771. 93.2 854. 737. 737.

27.

current year 50 5 46 29 29

00

III. Increase/

Decrease in

702702702

the period

311311311

(Decrease is

4.724.724.72

listed with

“-”)

(i) Total 702 702 702

comprehensiv 311 311 311

e income 4.72 4.72 4.72

(ii) Owners’

devoted and

decreased

capital

1.Common

shares

invested by

shareholders

2. Capital

invested by

holders ofother equity

instruments

3. Amount

reckoned into

owners equity

with

share-based

payment

4. Other

(iii) Profit

distribution

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general

risk

provisions

3.

Distribution

for owners (or

shareholders)

4. Other

(iv) Carrying

forward

internal

owners’

equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedying

loss with

surplusreserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

retained

earnings from

other

comprehensiv

e income

6. Other

(v)

Reasonable

reserve

1. Withdrawal

in the report

period

2. Usage in

the report

period

(vi) Others

283

146773-163343343

IV. Balance at 16

577915858271271

the end of the 12

771.93.2739.852.852.

period 27.

505740101

00

Revised content:

I. Audit report

Whether the semi annual report is audited

□ Yes √ No

The company's semi annual financial report has not been audited

II. Financial Statement

Statement in Financial Notes are carried in RMB/CNY1. Consolidated Balance Sheet

Prepared by SHENZHEN ZHONGHENG HUAFA CO. LTD.In RMB

Item June 30 2021 December 31 2020

Current assets:

Monetary funds 59612186.22 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 491683.78 20240464.79

Account receivable 135750939.59 128063911.79

Receivable financing 5774948.69 10057385.11

Accounts paid in advance 31961398.64 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance receivable

Other account receivable 22540779.20 4466949.96

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventories 129877952.00 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 741380.21 4255643.19

Total current assets 386751268.33 337861677.02

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 instrumentOther non-current financial assets

Investment real estate 46360497.13 47224662.27

Fixed assets 191477026.08 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 39945399.92 40820657.80

Expense on Research and Development

Goodwill

Long-term expenses to be apportioned 623601.59 77445.31

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 286596258.85 289917944.04

Total assets 673347527.18 627779621.06

Current liabilities:

Short-term loans 51089579.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 42983519.37 37416381.20

Account payable 116056638.57 98318239.88

Accounts received in advance

Contractual liability 765555.97 287140.66

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 3886717.29 5737366.59

Taxes payable 12933110.63 14204642.62

Other account payable 37074456.45 27608281.01

Including: Interest payable 179523.72 26335.66

Dividend payableCommission charge and commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one year 12000000.00

Other current liabilities 211799.13 18322972.81

Total current liabilities 265001376.41 226422832.77

Non-current liabilities:

Insurance contract reserve

Long-term loans 61000000.00 61000000.00

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 4043640.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 65108051.00 65108051.00

Total liabilities 330109427.41 291530883.77

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

Other comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -163892491.98 -170881854.46

Total owner’ s equity attributable to parent company 343238099.77 336248737.29Minority interests

Total owner’ s equity 343238099.77 336248737.29

Total liabilities and owner’ s equity 673347527.18 627779621.06

Legal Representative: Li Zhongqiu

Person in charge of accounting works: Yang Bin

Person in charge of accounting institute: Chuai Guoxu

3. Consolidated Profit Statement

In RMB

Item 2021 semi-annual 2020 semi-annual

I. Total operating income 391633808.55 300703421.38

Including: Operating income 391633808.55 300703421.38

Interest income

Insurance gained

Commission charge and commission income

II. Total operating cost 381924442.73 297053804.80

Including: Operating cost 334523805.25 263959652.63

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 1428361.92 1004056.05

Sales expense 14094617.96 9100079.39

Administrative expense 22680307.24 17082362.66

R&D expense 3955647.50 2423425.26

Financial expense 5241702.86 3484228.81

Including: Interest expenses 3774381.48 4018202.27

Interest income 189945.55 11856.69

Add: Other income 3553.35 348540.00Investment income (Loss is listed with “-”) 149767.58 66780.40

Including: Investment income on affiliated company and

joint venture

The termination of income recognition for financial

assets measured by amortized cost

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 “-”) -1350000.00

Income from assets disposal (Loss is listed with “-”) -99867.53

III. Operating profit (Loss is listed with “-”) 8512686.75 3965069.45

Add: Non-operating income 276599.04 45200.06

Less: Non-operating expense 215202.92 7302.38

IV. Total profit (Loss is listed with “-”) 8574082.87 4002967.13

Less: Income tax expense 1584720.39 837369.58

V. Net profit (Net loss is listed with “-”) 6989362.48 3165597.55

(i) Classify by business continuity

1.continuous operating net profit (net loss listed with ‘-”) 6989362.48 3165597.55

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

(ii) Classify by ownership

1.Net profit attributable to owner’s of parent company 6989362.48 3165597.55

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 6989362.48 3165597.55

Total comprehensive income attributable to owners of parent

6989362.483165597.55

Company

Total comprehensive income attributable to minority

shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0248 0.0112

(ii) Diluted earnings per share 0.0248 0.0112

7. Statement of Changes in Owners’ Equity (Consolidated)

Current Amount

In RMB

Semi-annual of 2021

Owners’ equity attributable to the parent Company

Other

Othe

equity Less Tota

r Prov

instrument : Reas Min l

Item Sha Capi com Surp ision Reta

Per Inve onab

ority own

re Pre tal preh lus of ined Othe Subt

pet ntor le inter ers’

cap fer reser ensi reser gene profi r otal

ual Ot y reser ests equit

ital red ve ve ve ral t

cap her shar ve y

sto inco risk

ital es

ck me

securit

ies

283

146773-170336336

I. The ending 16

577915881248248

balance of the 12

771.93.2854.737.737.

previous year 27.

505462929

00

Add: Changes

of accounting

policy

Error

correction of

the last period

Enterprise

combine

under the

same control

Other

283

II. The 146 773 -170 336 336

16

beginning 577 915 881 248 248

12

balance of the 771. 93.2 854. 737. 737.

27.

current year 50 5 46 29 29

00

III. Increase/

Decrease in

698698698

the period

936936936

(Decrease is

2.482.482.48

listed with

“-”)

(i) Total 698 698 698

comprehensiv 936 936 936

e income 2.48 2.48 2.48

(ii) Owners’

devoted and

decreased

capital

1.Common

shares

invested by

shareholders

2. Capitalinvested by

holders of

other equity

instruments

3. Amount

reckoned into

owners equity

with

share-based

payment

4. Other

(iii) Profit

distribution

1. Withdrawal

of surplus

reserves

2. Withdrawal

of general

risk

provisions

3.

Distribution

for owners (or

shareholders)

4. Other

(iv) Carrying

forward

internal

owners’

equity

1. Capital

reserves

conversed to

capital (share

capital)

2. Surplus

reserves

conversed to

capital (share

capital)

3. Remedyingloss with

surplus

reserve

4. Carry-over

retained

earnings from

the defined

benefit plans

5. Carry-over

retained

earnings from

other

comprehensiv

e income

6. Other

(v)

Reasonable

reserve

1. Withdrawal

in the report

period

2. Usage in

the report

period

(vi) Others

283

146773-163343343

IV. Balance at 16

577915892238238

the end of the 12

771.93.2491.099.099.

period 27.

505987777

00

（四）Section X. Financial Report

V. Important accounting policy and estimation

15. Inventory

15.1 Categories of inventory

The inventory is goods or manufactured products held for sale products in process and materials and matters

utilized in the production or supply of labor. Mainly including raw material revolving materials (wrappage and

low-value consumption goods etc.) outside processing materials goods in process semi-finished goods stocks

and so on.15.2 Accounting method for inventory delivery

When inventories are issued the actual cost is determined by the first in first out method.

15.3 Accrual method inventory falling price reserves

On the balance sheet day the inventory is measured on the lower one between the cost and the net realizable value

and the provision for the falling price reserves is accrued on each inventory item; however as for the inventory of

large quantity and low price the provision is accrued on the inventory category.

15.4 Inventory system

Inventory system of the Company is perpetual inventory system

15.5 Amortization method for the low-value consumables and wrap page

Low-value consumables and packages are amortized by one-point method

Revised content:

15. Inventory

15.1 Categories of inventory

The inventory is goods or manufactured products held for sale products in process and materials and matters

utilized in the production or supply of labor. Mainly including raw material revolving materials (wrappage and

low-value consumption goods etc.) outside processing materials goods in process semi-finished goods stocks

and so on.

15.2 Accounting method for inventory delivery

When inventories are issued the actual cost is determined by monthly weighted average method.

15.3 Accrual method inventory falling price reserves

On the balance sheet day the inventory is measured on the lower one between the cost and the net realizable value

and the provision for the falling price reserves is accrued on each inventory item; however as for the inventory of

large quantity and low price the provision is accrued on the inventory category.

15.4 Inventory system

Inventory system of the Company is perpetual inventory system

15.5 Amortization method for the low-value consumables and wrap page

Low-value consumables and packages are amortized by one-point method（五）Section X. Financial Report

VII. Notes to main items in consolidated financial statement

9. Inventories

Whether companies need to comply with the disclosure requirements of the real estate industry

No

(1) Category

In RMB

Ending balance Opening balance

Inventories fall Inventories fall

provision or provision or

contract contract

Item

Book balance performance Book value Book balance performance Book value

costs costs

impairment impairment

provision provision

Raw materials 67070060.38 2191320.92 64878739.46 39735101.27 1691320.92 38043780.35

Inventory

55795276.782523369.8253271906.9627562913.381673369.8225889543.56

goods

Homemade

semi-finished 11750725.54 29363.73 11721361.81 6213029.56 29363.73 6183665.83

products

Low priced and

easily worn 156274.66 110622.38 45652.28 159646.13 110622.38 49023.75

articles

Total 134772337.36 4854676.85 129917660.51 73670690.34 3504676.85 70166013.49

40. Taxes payable

In RMB

Item Ending balance Opening balance

VAT 4823733.87 2980992.11

Corporate income tax 5551836.24 6558810.68

Individual income tax 4493.98 25195.14

Urban maintenance and construction tax 532508.80 1902436.52

Property tax 520220.76 318618.51

Land use tax 297696.51 33280.48Educational surtax 229248.99 816098.15

Local educational surtax 122702.85 418611.03

Dike fee 1665.00 1665.00

Stamp tax 33429.90 28895.00

Disposal fund of waste electrical

821530.001120040.00

products

Total 12939066.90 14204642.62

60. Retained profit

In RMB

Item Current period Last period

Retained profit at the end of the previous period

-170881854.46-177712041.86

before adjustment

Retained profit at period-begin after adjustment -170881854.46 -177712041.86

Add: net profit attributable to owners of the

7023114.723165597.55

parent company

Retained profit at period-end -163858739.74 -174546444.31

61. Operating revenue and cost

In RMB

Current Period Last Period

Item

Revenue Cost Revenue Cost

Main business 323468602.68 282596348.19 268465953.89 249723766.92

Other business 68165205.87 47447861.39 32237467.49 14235885.71

Total 391633808.55 330044209.58 300703421.38 263959652.63

76. Income tax expense

(1) Statement of income tax expense

In RMB

Item Current Period Last Period

Current income tax expense 1590676.66 982790.94

Deferred income tax expense -145421.36

Total 1590676.66 837369.58(2) Adjustment on accounting profit and income tax expenses

In RMB

Item Current Period

Total profit 8613791.38

Income tax based on statutory/applicable rate 2490947.85

Impact by different tax rate applied by subsidies 230760.37

Impact of deductible loss of un-recognized deferred income

-145421.36

tax assets in the prior period of use

Income tax expense 1590676.66

Revised content:

9. Inventories

Whether companies need to comply with the disclosure requirements of the real estate industry

No

(1) Category

In RMB

Ending balance Opening balance

Inventories fall Inventories fall

provision or provision or

contract contract

Item

Book balance performance Book value Book balance performance Book value

costs costs

impairment impairment

provision provision

Raw materials 67070060.38 2191320.92 64878739.46 39735101.27 1691320.92 38043780.35

Inventory

55755568.272523369.8253232198.4527562913.381673369.8225889543.56

goods

Homemade

semi-finished 11750725.54 29363.73 11721361.81 6213029.56 29363.73 6183665.83

products

Low priced and

easily worn 156274.66 110622.38 45652.28 159646.13 110622.38 49023.75

articles

Total 134772337.36 4854676.85 129877952.00 73670690.34 3504676.85 70166013.4940. Taxes payable

In RMB

Item Ending balance Opening balance

VAT 4823733.87 2980992.11

Corporate income tax 5545879.97 6558810.68

Individual income tax 4493.98 25195.14

Urban maintenance and construction tax 532508.80 1902436.52

Property tax 520220.76 318618.51

Land use tax 297696.51 33280.48

Educational surtax 229248.99 816098.15

Local educational surtax 122702.85 418611.03

Dike fee 1665.00 1665.00

Stamp tax 33429.90 28895.00

Disposal fund of waste electrical

821530.001120040.00

products

Total 12933110.63 14204642.62

60. Retained profit

In RMB

Item Current period Last period

Retained profit at the end of the previous period

-170881854.46-177712041.86

before adjustment

Retained profit at period-begin after adjustment -170881854.46 -177712041.86

Add: net profit attributable to owners of the

6989362.483165597.55

parent company

Retained profit at period-end -163892491.98 -174546444.31

61. Operating revenue and cost

In RMB

Current Period Last Period

Item

Revenue Cost Revenue Cost

Main business 323468602.68 287075943.86 268465953.89 249723766.92

Other business 68165205.87 47447861.39 32237467.49 14235885.71

Total 391633808.55 334523805.25 300703421.38 263959652.6376. Income tax expense

(1) Statement of income tax expense

In RMB

Item Current Period Last Period

Current income tax expense 1584720.39 982790.94

Deferred income tax expense -145421.36

Total 1584720.39 837369.58

(2) Adjustment on accounting profit and income tax expenses

In RMB

Item Current Period

Total profit 8574082.87

Income tax based on statutory/applicable rate 2490947.85

Impact by different tax rate applied by subsidies 230760.37

Impact of deductible loss of un-recognized deferred income

-145421.36

tax assets in the prior period of use

Income tax expense 1584720.39

四、The original Summary of Semi-Annual Report 2021

（一）II. Basic information of the company

2. Main financial data and index

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √ No

Increase/decrease in this

Current Period Same period of last year

report y-o-y

Operating revenue (RMB) 391633808.55 300703421.38 30.24%

Net profit attributable to shareholders of

7023114.723165597.55121.86%

the listed Company (RMB)

Net profit attributable to shareholders of

the listed Company after deducting 7067951.02 3167896.46 123.11%

non-recurring gains and losses (RMB)

Net cash flow arising from operating

-21818369.5921200212.24-202.92%

activities (RMB)

Basic earnings per share (RMB/Share)

0.02480.0112121.43%

(note 1)

Diluted earnings per share (RMB/Share) 0.0248 0.0112 121.43%Weighted average ROE 2.07% 0.96% 1.11%

Increase/decrease in this

End of current period End of last period report-end over that of last

period-end (+-)

Total assets (RMB) 673387235.69 627779621.06 7.26%

Net assets attributable to shareholder of

343271852.01336248737.292.09%

listed Company (RMB)

Revised content:

2. Main financial data and index

Whether it has retroactive adjustment or re-statement on previous accounting data

□ Yes √ No

Increase/decrease in this

Current Period Same period of last year

report y-o-y

Operating revenue (RMB) 391633808.55 300703421.38 30.24%

Net profit attributable to shareholders of

6989362.483165597.55120.79%

the listed Company (RMB)

Net profit attributable to shareholders of

the listed Company after deducting 7034198.78 3167896.46 122.05%

non-recurring gains and losses (RMB)

Net cash flow arising from operating

-21818369.5921200212.24-202.92%

activities (RMB)

Basic earnings per share (RMB/Share)

0.02480.0112121.43%

(note 1)

Diluted earnings per share (RMB/Share) 0.0248 0.0112 121.43%

Weighted average ROE 2.07% 0.96% 1.11%

Increase/decrease in this

End of current period End of last period report-end over that of last

period-end (+-)

Total assets (RMB) 673347527.18 627779621.06 7.26%

Net assets attributable to shareholder of

listed Company (RMB) 343238099.77

336248737.292.08%

五、The original The Third Quarter Report 2021

（一）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

Current period Increase/decrease in Year-begin to Increase/decrease fromthe period compared period-end year-begin to

with the same period period-end compared

of the previous year with the same period

of the previous year

Operating income

211898917.915.85%603532726.4620.49%

(Yuan)

Net profit attributable

to shareholders of the 1141094.84 -32.30% 8164209.56 68.30%

listed company (Yuan)

Net profit attributable

to shareholders of the

listed company after

572226.97-48.38%7384177.9972.67%

deducting

non-recurring gains

and losses (Yuan)

Net cash flow arising

from operating —— —— -24053649.58 -275.69%

activities (Yuan)

Basic earnings per

0.004-33.33%0.028868.42%

share (Yuan /Share)

Diluted earnings per

0.004-33.33%0.028868.42%

share (Yuan /Share)

Weighted average ROE 0.33% -0.19% 2.17% 0.71%

Increase/decrease at the period-end compared

End of current period End of previous year

with the end of the previous year

Total assets (Yuan) 670460370.67 627779621.06 6.80%

Net assets attributable

to shareholder of listed 345436154.94 336248737.29 2.73%

company (Yuan)

Revised content:

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

Year-begin to year-begin to

Current period the period compared

period-end period-end compared

with the same period

with the same periodof the previous year of the previous year

Operating income

211898917.915.85%603532726.4620.49%

(Yuan)

Net profit attributable

to shareholders of the 1123649.14 -33.33% 8113011.63 67.24%

listed company (Yuan)

Net profit attributable

to shareholders of the

listed company after

554781.27-49.95%7332980.0672.67%

deducting

non-recurring gains

and losses (Yuan)

Net cash flow arising

from operating —— —— -24053649.58 -275.69%

activities (Yuan)

Basic earnings per

0.004-33.33%0.028868.42%

share (Yuan /Share)

Diluted earnings per

0.004-33.33%0.028868.42%

share (Yuan /Share)

Weighted average ROE 0.33% -0.19% 2.17% 0.71%

Increase/decrease at the period-end compared

End of current period End of previous year

with the end of the previous year

Total assets (Yuan) 669050137.81 627779621.06 6.57%

Net assets attributable

to shareholder of listed 344361748.92 336248737.29 2.41%

company (Yuan)

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

of reasons

√ Applicable □Not applicable

Item January-September January-September Changes Reason

2021 2020 ratio

Salary for R&D from Hengfa

R&D expenses 5653280.67 4313254.44 31%

increased

Other income 345453.35 645623.00 -46% Government subsidy of Hengfa

Gains on acceptance margin

Investment income 238661.58 103172.15 131%

from Hengfa

Disposal the company’s

Asset disposal income 21059.60 -93373.67 -123%

vehicles

Non-operating income 394744.60 681877.61 -42% Government subsidy receivedat the period-end was less than

those received in the same

period last year

Non-operating expenses 219887.56 7302.38 2911% Disposal of fixed assets

Item September 30 2021 September 30 2021 Changes Reason

ratio

Decrease in the amount of

Accounts receivable financing 5774948.69 25436468.30 -77%

promissory note

Due to the impact of

international epidemic some

raw materials are in short

supply in the market inventory

Inventory 99966463.28 61964943.06 61%

of the Company are increased

in an appropriated amount

according to the operation

needs

Other current assets 741380.21 234014.36 217% VAT retention credit

The contract signed through

Long-term prepaid expenses 568577.93 135529.27 320% system and the expenses to be

amortized increased

Borrowings of Hengfa

Thhe Short-term loan 39841600.00 13660894.00 192%

increased

Account received in advance

Contract liabilities 574325.56 2575945.15 -78%

declined

Borrowings increased in the

Interest payable 124190.30 32583.49 281% period and the interest

increased

Non-current liabilities due Reclassification of long-term

12000000.00-100%

within one year loans

Revised content:

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

reasons

√ Applicable □Not applicable

Item January-September January-September Changes Reason

2021 2020 ratio

Salary for R&D from Hengfa

R&D expenses 5653280.67 4313254.44 31%

increased

Other income 345453.35 645623.00 -46% Government subsidy of Hengfa

Gains on acceptance margin

Investment income 238661.58 103172.15 131%

from HengfaDisposal the company’s

Asset disposal income 21059.60 -93373.67 -123%

vehicles

Government subsidy received

at the period-end was less than

Non-operating income 394744.60 681877.61 -42%

those received in the same

period last year

Non-operating expenses 219887.56 7302.38 2911% Disposal of fixed assets

September 30 2021 September 30 202 Changes Reason

Item

ratio

Decrease in the amount of

Accounts receivable financing 5774948.69 25436468.30 -77%

promissory note

Due to the impact of

international epidemic some

raw materials are in short

supply in the market inventory

Inventory 98556230.42 61964943.06 59%

of the Company are increased

in an appropriated amount

according to the operation

needs

Other current assets 741380.21 234014.36 217% VAT retention credit

The contract signed through

Long-term prepaid expenses 568577.93 135529.27 320% system and the expenses to be

amortized increased

Borrowings of Hengfa

Thhe Short-term loan 39841600.00 13660894.00 192%

increased

Account received in advance

Contract liabilities 574325.56 2575945.15 -78%

declined

Borrowings increased in the

Interest payable 124190.30 32583.49 281% period and the interest

increased

Non-current liabilities due Reclassification of long-term

12000000.00-100%

within one year loans

（三）IV. Quarterly financial statements

(i) Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.September 30 2021

Unit: Yuan

Item September 30 2021 December 31 2020Current assets:

Monetary fund 42948262.54 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 43892072.62 20240464.79

Account receivable 144703950.74 128063911.79

Receivable financing 5774948.69 10057385.11

Accounts paid in advance 19408972.82 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 29057128.91 4466949.96

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 99966463.28 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 741380.21 4255643.19

Total current assets 386493179.81 337861677.02

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 financialassets

Investment real estate 45928414.57 47224662.27

Fixed assets 189772693.25 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 39507770.98 40820657.80

Expense on Research and

Development

Goodwill

Long-term expenses to be

568577.9377445.31

apportioned

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 283967190.86 289917944.04

Total assets 670460370.67 627779621.06

Current liabilities:

Short-term loans 39841600.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 33139828.80 37416381.20

Account payable 131338903.49 98318239.88

Accounts received in advance

Contractual liability 574325.56 287140.66

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 4376465.86 5737366.59

Taxes payable 12214983.25 14204642.62Other account payable 22295013.77 27608281.01

Including: Interest payable 124190.30 26335.66

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due

12000000.00

within one year

Other current liabilities 16135044.00 18322972.81

Total current liabilities 259916164.73 226422832.77

Non-current liabilities:

Insurance contract reserve

Long-term loans 61000000.00 61000000.00

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 4043640.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 65108051.00 65108051.00

Total liabilities 325024215.73 291530883.77

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 sharesOther comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -161694436.81 -170881854.46

Total owner’ s equity attributable to

345436154.94336248737.29

parent company

Minority interests

Total owner’ s equity 345436154.94 336248737.29

Total liabilities and owner’ s equity 670460370.67 627779621.06

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

Unit: Yuan

Item Current period Last period

I. Total operating income 603532726.46 500887222.16

Including: Operating income 603532726.46 500887222.16

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 592220186.01 496032602.64

Including: Operating cost 525633691.80 436770935.85

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 2180093.13 1697965.55

Sales expense 18991695.17 14895442.53Administrative expense 33036011.08 29667000.90

R&D expense 5653280.67 4313254.44

Financial expense 6725414.16 8688003.37

Including: Interest

5977916.476620657.92

expenses

Interest

234372.30-694194.83

income

Add: other income 345453.35 645623.00

Investment income (Loss is

238661.58103172.15

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

-1350000.00

asset (Loss is listed with “-”)

Income from assets disposal

21059.60-93373.67

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

10567714.985510041.00

“-”)

Add: Non-operating income 394744.60 681877.61

Less: Non-operating expense 219887.56 7302.38

IV. Total profit (Loss is listed with “-”) 10742572.02 6184616.23

Less: Income tax expense 2578362.46 1333529.74

V. Net profit (Net loss is listed with

8164209.564851086.49

“-”)

(i) Classify by business continuity1.continuous operating net profit

8164209.564851086.49(net loss listed with ‘-”)

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

(ii) Classify by ownership

1.Net profit attributable to

8164209.564851086.49

owner’s 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

(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 impairmentprovision 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 8164209.56 4851086.49

Total comprehensive income

attributable to owners of parent 8164209.56 4851086.49

Company

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0288 0.0171

(ii) Diluted earnings per share 0.0288 0.0171

Revised content:

(i) Financial statement

1. Consolidate balance sheet

Prepared by Shenzhen Zhongheng Huafa Co. Ltd.September 30 2021

Unit: Yuan

Item September 30 2021 December 31 2020

Current assets:

Monetary fund 42948262.54 60968053.58

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable 43892072.62 20240464.79

Account receivable 144703950.74 128063911.79

Receivable financing 5774948.69 10057385.11Accounts paid in advance 19408972.82 39643255.11

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 29057128.91 4466949.96

Including: Interest receivable

Dividend receivable

Buying back the sale of financial

assets

Inventories 98556230.42 70166013.49

Contractual assets

Assets held for sale

Non-current asset due within one

year

Other current assets 741380.21 4255643.19

Total current assets 385082946.95 337861677.02

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 45928414.57 47224662.27

Fixed assets 189772693.25 193605444.53

Construction in progress 740000.00 740000.00

Productive biological asset

Oil and gas asset

Right-of-use assets

Intangible assets 39507770.98 40820657.80

Expense on Research and

DevelopmentGoodwill

Long-term expenses to be

568577.9377445.31

apportioned

Deferred income tax asset 7383734.13 7383734.13

Other non-current asset 66000.00 66000.00

Total non-current asset 283967190.86 289917944.04

Total assets 669050137.81 627779621.06

Current liabilities:

Short-term loans 39841600.00 12527808.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable 33139828.80 37416381.20

Account payable 131338903.49 98318239.88

Accounts received in advance

Contractual liability 574325.56 287140.66

Selling financial asset of

repurchase

Absorbing deposit and interbank

deposit

Security trading of agency

Security sales of agency

Wage payable 4376465.86 5737366.59

Taxes payable 11979156.41 14204642.62

Other account payable 22295013.77 27608281.01

Including: Interest payable 124190.30 26335.66

Dividend payable

Commission charge and

commission payable

Reinsurance payable

Liability held for sale

Non-current liabilities due

12000000.00

within one year

Other current liabilities 16135044.00 18322972.81Total current liabilities 259580337.89 226422832.77

Non-current liabilities:

Insurance contract reserve

Long-term loans 61000000.00 61000000.00

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 4043640.00 4043640.00

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 65108051.00 65108051.00

Total liabilities 324688388.89 291530883.77

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

Other comprehensive income

Reasonable reserve

Surplus public reserve 77391593.25 77391593.25

Provision of general risk

Retained profit -162768842.83 -170881854.46

Total owner’ s equity attributable to

344361748.92336248737.29

parent company

Minority interests

Total owner’ s equity 344361748.92 336248737.29

Total liabilities and owner’ s equity 669050137.81 627779621.062. Consolidated Profit Statement (from the year-begin to the period-end)

Unit: Yuan

Item Current period Last period

I. Total operating income 603532726.46 500887222.16

Including: Operating income 603532726.46 500887222.16

Interest income

Insurance gained

Commission charge and

commission income

II. Total operating cost 592280418.87 496032602.64

Including: Operating cost 525693924.66 436770935.85

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 2180093.13 1697965.55

Sales expense 18991695.17 14895442.53

Administrative expense 33036011.08 29667000.90

R&D expense 5653280.67 4313254.44

Financial expense 6725414.16 8688003.37

Including: Interest

5977916.476620657.92

expenses

Interest

234372.30-694194.83

income

Add: other income 345453.35 645623.00

Investment income (Loss is

238661.58103172.15

listed with “-”)

Including: Investment

income on affiliated company and jointventure

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

-1350000.00

asset (Loss is listed with “-”)

Income from assets disposal

21059.60-93373.67

(Loss is listed with “-”)

III. Operating profit (Loss is listed with

10507482.125510041.00

“-”)

Add: Non-operating income 394744.60 681877.61

Less: Non-operating expense 219887.56 7302.38

IV. Total profit (Loss is listed with “-”) 10682339.16 6184616.23

Less: Income tax expense 2569327.53 1333529.74

V. Net profit (Net loss is listed with

8113011.634851086.49

“-”)

(i) Classify by business continuity

1.continuous operating net profit

8113011.634851086.49(net loss listed with ‘-”)

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

(ii) Classify by ownership

1.Net profit attributable to

8113011.634851086.49

owner’s of parent company

2.Minority shareholders’ gains

and losses

VI. Net after-tax of other

comprehensive income

Net after-tax of other comprehensiveincome 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 8113011.63 4851086.49

Total comprehensive income 8113011.63 4851086.49attributable to owners of parent

Company

Total comprehensive income

attributable to minority shareholders

VIII. Earnings per share:

(i) Basic earnings per share 0.0288 0.0171

(ii) Diluted earnings per share 0.0288 0.0171