深华发Ｂ：2018年年度报告（英文版）.PDF
Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 1 SHENZHEN ZHONGHENG HUAFA CO., LTD. ANNUAL REPORT 2018 April 2019Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 2 Section I. Important Notice, Contents and Paraphrase Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen Zhongheng HUAFA Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents. Li Zhongqiu, Principal of the Company, Yang Bin, person in charger of accounting works and Wu Aijie, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of 2018 Annual Report is authentic, accurate and complete. All directors are attended the Board Meeting for report deliberation. Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Majority investors are advised to exercise caution of investment risks. Risks factors are being well-described in the Report, found more in risks factors and countermeasures disclosed in Prospects for Future Development of the Board of Directors Report. The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either. Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 3 Contents Section I Important Notice, Contents and Paraphrase . 2 Section II Company Profile and Main Finnaical Indexes . 5 Section III Summary of Company Business . 7 Section IV Discussion and Analysis of Operation . 8 Section V Important Events . 12 Section VI Changes in shares and particular about shareholders . 16 Section VII Preferred Stock.18 Section VIII Particulars about Directors, Supervisors,Senior Executives and Employees . 19 Section IX Corporate Governance . 20 Section X Corporate Bonds . 22 Section XI Financial Report . 22 Section XII Documents Available for Reference . 85 Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 4 Paraphrase Items Refers to Contents Company, Shen HUAFA Refers to SHENZHEN ZHONGHENG HUAFA CO., LTD. Hengfa Technology Refers to Wuhan Hengfa Technology Co., Ltd. HUAFA Property Refers to Shenzhen Zhongheng HUAFA Property Co., Ltd HUAFA Lease Refers to Shenzhen HUAFA Property Lease Management Co., Ltd HUAFA Trade Refers to Wuhan Zhongheng HUAFA Trade Co., Ltd. Wuhan Zhongheng Group Refers to Wuhan Zhongheng New Science & Technology Industrial Group Co., Ltd HK Yutian Refers to Hong Kong Yutian International Investment Co., Ltd. Hengsheng Photo-electricity Refers to Wuhan Hengsheng Photo-electricity Industry Co., Ltd. Hengsheng Yutian Refers to Wuhan Hengsheng Yutian Industrial Co., Ltd. Yutian Henghua Refers to Shenzhen Yutian Henghua Co., Ltd. HUAFA Hengtian Refers to Shenzhen HUAFA Hengtian Co., Ltd. HUAFA Hengtai Refers to Shenzhen HUAFA Hengtai Co., Ltd. Shenzhen Vanke Refers to Shenzhen Vanke Real Estate Co., Ltd. Vanke Guangming Refers to Shenzhen Vanke Guangming Real Estate Development Co., Ltd Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 5 Section II. Company Profile and Main Financial Indexes I. Company profile Short form of the stock Shen HUAFA A, Shen HUAFA B Stock code 000020, 200020 Stock exchange for listing Shenzhen Stock Exchange Name of the Company (in Chinese) 深圳中恒华发股份有限 Company Short form of the Company (in Chinese) 深华发 Foreign name of the Company (if applicable) SHENZHEN ZHONGHENG HUAFA CO., LTD. Abbr. of the foreign name (if applicable) N/A Legal representative Li Zhongqiu Registrations add. 411 Bldg., Huafa (N) Road, Futian District, Shenzhen Code for registrations add 518031 Offices add. 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen Codes for office add. 518057 Companys Internet Web Site http:/ E-mail II. Person/Way to contact Secretary of the Board Rep. of security affairs Name Yang Bin Niu Yuxiang Contact add. 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen 33/F, No. 2 Building of Dachong Business Center, Nanshan District, Shenzhen Tel. 0755-86360201 0755-86360201 Fax. 0755-86360206 0755-86360206 E-mail Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 6 III. Information disclosure and preparation place Newspaper appointed for information disclosure China Securities Journal; Securities Times; Hong Kong Commercial Daily Website for annual report publish appointed by CSRC http:/ Preparation place for annual report Office of the Board of SHENZHEN ZHONGHENG HUAFA CO., LTD. IV. Registration changes of the Company Organization code Before change: 61883037-2; after changed: 91440300618830372G Changes of main business since listing (if applicable) Before the change of controlling shareholders: the main business was production and sales of color TV, printed circuit board and injection molded parts etc. After the change of controlling shareholders: the main business gradually adjusted to production and sales of injection molded parts, foam part (light packaging materials) and LCD whole machine. Previous changes for controlling shareholders (if applicable) The Companys predecessor was Shenzhen Huafa Electronic Co., LTD, which was founded in 1981, initiated and established by three legal persons- Shenzhen Electronics Group Co., LTD, China Zhenhua Electronic Group Co., LTD and Hong Kong Luks Industrial Co., LTD. In June 2005, Wuhan Zhongheng Group transferred the 44.12% equity of company, held by original first and second largest shareholder of the Company Shenzhen Electronics Group Co., LTD and China Zhenhua Electronic Group Co., LTD, and equity transfer formalities completed in April 2007; Wuhan Zhongheng Group became the controlling shareholder of the Company. In September 2007, the company officially changed its name to “Shenzhen Zhongheng HUAFA Co., Ltd”. V. Other relevant information CPA engaged by the Company Name of CPA DAXIN Certified Public Accountants LLP Offices add. for CPA 15/F College International Mansion, No.1 Zhi Chun Road, Haidian District, Beijing Signing Accountants Li Wei, Fan Zhang Sponsor engaged by the Company for performing continuous supervision duties in reporting period Applicable Not applicable Financial consultant engaged by the Company for performing continuous supervision duties in reporting period Applicable Not applicable VI. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 7 Yes No 2018 2017 Changes over last year 2016 Operating income(RMB) 637,046,707.03 858,040,132.74 -25.76% 619,167,770.74 Net profit attributable to shareholders of the listed company(RMB) 3,295,022.72 974,409.39 238.16% 5,457,710.33 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses(RMB) 1,535,043.65 2,079,588.86 -26.19% 5,109,926.82 Net cash flow arising from operating activities(RMB) -21,894,459.66 11,723,254.36 -286.76% -18,693,296.58 Basic earnings per share(RMB/Share) 0.0116 0.0034 241.18% 0.0193 Diluted earnings per share(RMB/Share) 0.0116 0.0034 241.18% 0.0193 Weighted average ROE 1.02% 0.30% 0.72% 1.72% End of 2018 End of 2017 Changes over end of last year End of 2016 Total assets(RMB) 617,090,153.46 629,762,731.38 -2.01% 632,475,542.40 Net assets attributable to shareholder of listed company(RMB) 323,968,000.74 320,672,978.02 1.03% 319,698,568.63 VII. Difference of the accounting data under accounting rules in and out of China 1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) Applicable Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period. 2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles) Applicable Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period. Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 8 VIII. Quarterly main financial index In RMB 1st Q 2nd Q 3rd Q 4th Q Operating income 171,620,013.62 169,364,829.62 148,975,383.05 147,086,480.74 Net profit attributable to shareholders of the listed company 307,367.89 2,485,765.71 -2,295,638.52 2,797,527.64 Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses 5,469.74 2,047,997.28 -3,406,233.82 2,887,810.45 Net cash flow arising from operating activities 337,819.42 -27,009,145.05 -27,365,096.05 32,141,962.02 Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the companys quarterly report and semi-annual report Yes No IX. Items and amounts of extraordinary profit (gains)/loss Applicable Not applicable In RMB Item 2018 2017 2016 Note Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) 49,159.75 199,069.56 82,132.08 Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprises business) 3,795,820.00 1,451,189.68 1,419,888.89 Gain/loss of entrusted investment or assets management 326,439.49 372,245.91 Other non-operating income and expenditure except for the aforementioned items -167,795.70 427,054.02 -1,209,982.33 Other gain/loss items satisfying the definition of nonrecurring gain/loss account 333,974.06 Accrual liability reversal 1,527,600.81 Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 9 Loss on assignment of claims -2,158,200.00 -5,755,200.00 Less: Impact on income tax 85,444.47 -672,860.55 278,229.19 Total 1,759,979.07 -1,105,179.47 347,783.51 - Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Extraordinary Profit/loss, explain reasons Applicable Not applicable In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Extraordinary Profit/lossShenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 10 Section III. Summary of Company Business I. Main businesses of the company in the reporting period Whether the company needs to comply with the disclosure requirements of the particular industry No After years of development, the company has gradually formed two main businesses in industry and property management. Among them, the industrial business mainly includes injection molding, polylon (light-weight packaging materials), and complete machine production and sales of liquid crystal display, property management business is mainly the lease of its own property. II. Major changes in main assets 1. Major changes in main assets Major assets Note of major changes Equity assets No major change Fixed assets No major change Intangible assets No major change Construction in progress No major change 2. Main overseas assets Applicable Not applicable III. Core competitiveness analysis Whether the company needs to comply with the disclosure requirements of the particular industry No All industrial lands of the Company located in Shenzhen were taken into the first batch of plan under 2010 Shenzhen urban upgrade planning. In the future, development and operation of self-owned land resources would become the income source of the Company on a long-term and stable basis.Shenzhen Zhongheng Huafa Co., Ltd. Annual Report 2018 (Full-Text) 11 Section IV. Discussion and Analysis of Operation 1. Introduction In 2018, the international environment was complicated, the downward pressure on Chinas economy increased, and the economic growth slowed down. Facing the unfavorable market environment, the company has actively taken measures to adjust its management concept and operating strategies and expand its main business which were supplemented with assessment and incentive mechanism. At the same time, some assets were cleaned and disposed of to maximize the benefits of assets and achieve better returns. In 2018, the company achieved operating revenue of 637,046,700 Yuan, a decrease of 25.76% on a year-on-year basis, and net profits of 3,295,000 Yuan, increased slightly compared with the same period last year. Video service business achieved annual operating revenue of 292748400 Yuan, a decrease of 38.75% on a year-on-year basis, operation profit amounted as 3387600 Yuan with 10.82% up from a year earlier. During the reporting period, the Video Business Division adjusted the product structure and optimized the sales ratio of each brand of products. The proportion of AOC series brands decreased due to the Groups adjustment, the Great Wall brand accounted for 22.41%, and the proportion of VSCN domestic sales rose to 24.54%, the increased VSCN export sales accounted for 4.91%, ACER accounted for 18.89%, and Changhong and Skyworth brands were newly increased. In 2018, it achieved sales volume of 703,900 units, outperforming the annual profit target. Injection molding business achieved annual operating revenue of 220923600 Yuan, a decrease of 12.46% over the same period last year, operation profit amounted as 443500 Yuan, a declined over same period last year. With the unceasingly fierce competition in the market, the profit margin of injection molding has been greatly reduced, but all the staff of the business division adjusted the sales strategy in time, actively seized the market share, and expanded the production workshop, purchased new type of production lines, and more than 10 existing automatic equipment, such as automatic gumming robots, injection molding machines, etc., have been put into production in November 2018, and the annual output is expected to increase by 2.3 million sets. Polylon business achieved annual
