Shenzhen Zhongheng Huafa Co., Ltd.
THE THIRD QUARTERLY REPORT FOR 2014
(Full-Text)
October 2014
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) Section I. Important Notes
Board of Directors and the Supervisory Committee of Shenzhen Zhongheng Huafa Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives 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.
All directors of the Company are attended the Meeting for quarterly report deliberation.
Principal of the Company Li Zhongqiu, Person in Charge of Accounting Works Cao Li and Person in Charge of Accounting Organ (Accounting Officer) Wu Aijie hereby confirm that the Financial Report of the Third Quarterly Report is authentic, accurate and complete.
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) Section II. Main accounting data and changes of shareholders I. Main accounting data and index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes√ No
||||||||
|-|-|-|-|-|-|-|
||Current period-end||Period-end of last year||Increase/decrease||
|Total assets(RMB)|1,126,836,165.80||731,348,499.86||54.08%||
|Net assets attributable to shareholders|274,654,345.47||273,663,649.47||||
||||||0.36%||
|of listed company (RMB)|||||||
|||||||Increase/decrease in|
|||Increase/decrease in|||||
|||||Year-begin to end||comparison with|
||Current period|comparison with same|||||
|||||of the Period||year-begin to Period-end|
|||period of last year|||||
|||||||of last year|
|Operating revenue (RMB)|208,177,270.86|38.21%||574,799,097.22||26.79%|
|Net profit attributable to shareholders of|-465,240.93|||990,696.00|||
|||59.89%||||22.60%|
|the listed company (RMB)|||||||
|Net profit attributable to shareholders of|||||||
|the listed company after deducting|-675,588.63|43.73%||363,979.24||-77.49%|
|non-recurring gains and losses(RMB)|||||||
|Net cash flow arising from operating||||-383,919,788.32|||
||--|--||||860.38%|
|activities(RMB)|||||||
|Basic earnings per share (RMB/Share)|-0.0016|60.98%||0.0035||20.69%|
|Diluted earnings per share (RMB/Share)|-0.0016|60.98%||0.0035||20.69%|
|Weighted average ROE|-0.17%|0.24 percent points up||0.36%||0.07 percent points up|

 Items and amount of extraordinary profit (gains)/losses
√Applicable □Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||end of the Period||
|Gains/losses from the disposal of non-current asset (including the write-off that accruedfor impairment of assets)|||
||54,775.18||
|Governmental subsidy reckoned into current gains/losses (not including the subsidyenjoyed in quota or ration according to national standards, which are closely relevant toenterprise’s business)|||
||200,695.00||
|Other non-operating income and expenditure except for the aforementioned items|580,152.17||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Less: impact on income tax|208,905.59||
|Total|626,716.76|--|

 Concerning the extraordinary profit (gain)/loss defined byQ&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 inQ&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 inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
II. Statement of the total shareholders and shares-held of top ten shareholders at end of the Period
1. Statement of the total common shareholders and shares-held of top ten common shareholders at end of the Period
In Share
||||||||
|-|-|-|-|-|-|-|
|Total common shareholders in reporting period||24,827( including 16,340 shareholders of A-share)|||||
|Shares-held of top ten common shareholders|||||||
|||||Amount of|Number of share pledged/frozen||
|||Proportion of|Amount of shares||||
|Shareholders|Nature of shareholder|||restricted shares|||
|||shares held|held||State of share|Amount|
|||||held|||
|Wuhan Zhongheng NewScience & TechnologyIndustrial Group Co., Ltd.|Domesticnon-state-owned legalperson|41.14%|116,489,894|116,489,894|Pledged|116,489,894|
||||||Frozen|0|
|SEG (HONG KONG)CO., LTD.|Overseas legal person|5.85%|16,569,560|0|||
||||||Pledged / Frozen|0|
|GOOD HOPE CORNERINVESTMENTS LTD.|Overseas legal person|4.91%|13,900,000|0|||
||||||Pledged / Frozen|0|
|BINGHUA LIU|Overseas nature person|0.31%|876,213|0|Pledged / Frozen|0|
|Xie Deqing|Domestic nature person|0.28%|780,100|0|Pledged / Frozen|0|
|Shi Feng|Domestic nature person|0.25%|714,273|0|Pledged / Frozen|0|
|Wang Jianguang|Domestic nature person|0.23%|651,849|0|Pledged / Frozen|0|
|Li Jianfeng|Domestic nature person|0.23%|637,600|0|Pledged / Frozen|0|
|Zhu Ming|Domestic nature person|0.22%|611,348|0|Pledged / Frozen|0|
|Jia Wenjun|Domestic nature person|0.20%|557,232|0|Pledged / Frozen|0|

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
|||||
|-|-|-|-|
|Particular about top ten common shareholders with un-restrict shares held||||
||Amount of un-restrict common|Type of shares||
|Shareholders||||
||shares held|Type|Amount|
|SEG (HONG KONG) CO., LTD.|16,569,560|Domestically listed foreign shares|16,569,560|
|GOOD HOPE CORNER INVESTMENTS LTD.|13,900,000|Domestically listed foreign shares|13,900,000|
|BINGHUA LIU|876,213|Domestically listed foreign shares|876,213|
|Xie Deqing|780,100|Domestically listed foreign shares|780,100|
|Shi Feng|714,273|RMB ordinary shares|714,273|
|Wang Jianguang|651,849|Domestically listed foreign shares|651,849|
|Li Jianfeng|637,600|Domestically listed foreign shares|637,600|
|Zhu Ming|611,348|Domestically listed foreign shares|611,348|
|Jia Wenjun|557,232|RMB ordinary shares|557,232|
|Wu Jingmin|491,786|RMB ordinary shares|491,786|
||Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial|||
||Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs|||
|Explanation on associated relationship among the|to the consistent actor that are prescribed in Measures for the Administration of Disclosure|||
||of Shareholder Equity Changes of Listed Companies. The Company neither knew whether|||
|top ten shareholders or consistent action||||
||there exists associated relationship among the other tradable shareholders, nor they belong|||
||to consistent actors that are prescribed in Measures for the Administration of Disclosure of|||
||Shareholder Equity Changes of Listed Companies.|||
|Explanation on shareholders involving margin|Ended as the reporting period, in top ten shareholders, 714,273 shares of the Company|||
|business about top ten common shareholders with|were hold by Shifeng through the guarantee securities account of client credit trading under|||
||the name of China Merchants Securities Co., Ltd., representing 100 percent of the|||
|un-restrict shares held (if applicable)|Company’s stock held by himself|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The shareholders of the Company have no buy-back agreement dealing in reporting period.
2. Total of shareholders with preferred stock held and the top ten shareholdings in Period-end□Applicable √Not applicable
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) Section III. Important events
I. Particular about major changes from items of main accounting statements and financial indexes as well as reasons
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Item|2014-9-30|2014-1-1|Increase/decrease y-o-y|Reasons|
||||-41.68%|Sales collections declined and payment forpuchasement increased due to the low seasonalternates with peak season|
|Monetary fund|31,637,263.02|54,251,456.20|||
||||-50.16%|Transfer of endorsement occurred in thePeriod|
|Note receivable|76,943,566.42|154,375,936.49|||
||||141.70%|Operating income increased in Period|
|Accounts receivable|392,228,009.22|162,278,705.83|||
||||2044.76%|Newly advance payment in trade in Period|
|Advance payment|289,183,823.35|13,483,243.19|||
||||42.96%|Water and electricity of tenants increased inthis Period|
|Other accounts receivable|13,757,672.85|9,623,767.78|||
||||-44.50%|Transfer of golf membership occurred in thePeriod|
|Long-term prepaid expenses|984,299.90|1,773,524.86|||
||||61.87%|Payment for notes increased in Period|
|Notes payable|56,081,649.22|34,646,052.79|||
||||-44.47%|Payment for notes increased in Period|
|Accounts payable|28,991,115.66|52,206,342.81|||
||||35.15%|Utilities received in advance from part of thetenant in Period|
|Advance payment|2,124,969.90|1,572,324.29|||
||||35.24%|Margin for property rental received increasedin Period|
|Other receivables|30,283,261.48|22,392,413.99|||
||||264.98%|The Company increased new bank loans dueto the development of business|
|Long-term loans|592,800,000.00|162,418,800.00|||
|Item|Jan.-Sep. 2014|Jan.-Sep. 2013|Increase/decrease y-o-y|Reasons|
||||55.19%|Interest expense arising from new bank loans|
|Financial expenses|26,200,025.63|16,882,403.45|||
|||||in Period|
||||83.78%||
|Losses of devaluation of asset|-140,992.99|-869,044.62||Bad debt switch back in last period|
||||-95.14%|Previous accured expenses including legal|
|Non-operating expense|99,726.04|2,051,124.98|||
|||||charges|
||||411.26%|Accrual income tax expenses due to the|
|Income tax expenses|526,828.04|-169,257.95|||
|||||earnings from subsidiary|

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||||
|-|-|-|-|-|
|Cash received from selling|||-32.91%|Notes settlement increased in Period|
|commodities and providing labor|254,875,585.83|379,887,983.19|||
|services|||||
|Cash paid for purchasing|||60.46%|Payment in advance increased in Period.|
|commodities and receiving labor|579,317,407.91|361,047,890.28|||
|service|||||
||||138.58%|The Company increased new bank loans dueto the development of business|
|Cash received from loans|889,576,740.81|372,867,761.34|||
||||43.92%|Part of the new loans are paid for due loans inPeriod|
|Cash paid for settling debts|503,617,245.56|349,936,294.48|||
|Cash paid for distribution of|||51.70%|Interest expense increased in Period|
||23,616,708.26|15,568,339.32|||
|dividend, profit or interest payment|||||
|Impact on cash and cash equivalent|||51.27%|The impact of exchange rate fluctuationsrelative reduced in Period.|
||-1,762,391.19|-3,616,808.99|||
|from changes of rate|||||
|Balance of cash and cash equivalent|||-55.06%|Notes settlement increased|
||50,704,319.86|112,834,841.39|||
|at period-begin|||||
|Balance of cash and cash equivalent||73,958,944.04|-67.24%|Payment in purchase increased|
||24,226,727.34||||
|at period-end|||||

Ministry of Finance revised the Accounting Standards for EnterprisesNo.2—Long-term equity investment, Accounting Standards for EnterprisesNo.9—Wages and salaries of employees, Accounting Standards for EnterprisesNo.30—Presentation of financial statements and Accounting Standards for EnterprisesNo.33—Consolidated financial statements in 2014, and enacted the concrete standards of Accounting Standards for EnterprisesNo.39— Fair value measurements, Accounting Standards for EnterprisesNo.40—Joint venture arrangement and Accounting Standards for EnterprisesNo.41—Disclosure of interests in other entity etc., and executed since 1 July 2014. Modifying the Accounting Standards for Enterprises-Basic Standards and carried into force since 23 July, the date of modifying released; the Accounting Standards for EnterprisesNo.37—Presentation of financial instruments have been revised and implemented since year of 2014 and financial reports in later period. The Company carried out the above said accounting standards since the date of issued. Change of the accounting standards shows no impact on financial statement of the Company and no retroactive treatment exercised either.
II. Progress of significant events, their influences, and analysis and explanation of their solutions
√ Applicable□Not applicable
1. The site of 1/F to 3/F in Huafa Building, the self-owned property of the Company, is decorating again for renting and attract investment due to the leasing contract run out in 3Q of 2012. Investment attraction still in process up to now, and gains greatly progress, part of the sites are sign for tenant, shops opened successively, and the inactive sites declined greatly. Although average rent has a certain growth over the past, due to a free-rent period in the leasing contract, it is estimated that the overall renting income from the property in 2014 are close to the normal years before the site re-decorating.
2. With purpose of optimized the industrial pattern, explored income resources, improved financial structure and raise the level of
corporate profits, the Company is actively planning to the private placement in the Period. Controlling shareholder subscribe with the
land assets in Wuhan, other specified objects subscribe in cash. Vary preliminary works with private placement matters involved are
in an orderly manner currently.
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) III. Commitments made by the Company or shareholders holding above5% shares of the Company in reporting period or made in previous period and extending to reporting period√ Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||Commitment||Dated for|||
|Commitments||Contents||Commitment term|Implementation|
||party||commitment|||
|Share Merger Reform|N/A|N/A||||
|||Within 1 year after transferred||||
||Wuhan|||From 4 December||
|||of this equity acquisition: 1.||||
||Zhongheng|||2007 to 4||
|||Injected relevant capital of||||
|Commitments in report of acquisition or|New Science &|||November 2008;||
|||plastic injection business into|2007-03-29||Implementing|
|equity change|Technology|||From 13 May||
|||the Company; 2.70% equity of||||
||Industrial|||2014 to 12 May||
|||the Hengsheng Photoelectricity||||
||Group Co., Ltd.|||2015||
|||will inject into the Company.||||
|Commitments in assets reorganization|N/A|N/A||||
|Commitments in initial public offering or||||||
||N/A|N/A||||
|refinancing||||||
|Other commitments to minority||||||
||N/A|N/A||||
|shareholders of the Company||||||
|Completed on time or not|No|||||
||1. On 5 June 2008, approving by the 3rd Extraordinary Meeting of Board of Directors 2008, the|||||
||Company purchased relevant assets of plastic injection products from Wuhan Zhongheng Group by|||||
||cash of RMB 27 million, the commitment have been implemented;|||||
||2. In the first 10 days of May, 2008, the Company officially started off the significant asset|||||
||restructures work of purchasing the 70% equities of Hengsheng Photoelectricity.; engaged financial|||||
||consultant and law consultant to carry out earnest investigation on the restructure assets that may|||||
||be involved, and negotiated with relevant departments which were in charge of this. However, due|||||
|Detail reasons for un-complement and||||||
||to that relevant condition was not mature; there still remain obstacles in material asset restructure.|||||
|further plan (if applicable)||||||
||In April 2014, considering unpleasant operation of Hengsheng Photoelectricity, as well avoid|||||
||causing loss to listed companies due to forced commitment fulfillment, holding shareholder Wuhan|||||
||Zhongheng Group raised proposal of changing the commitment from perspective of maintaining|||||
||long-term interests of listed company, which was changed to: within 1 year since the General|||||
||Shareholders’ Meeting approved, Wuhan Zhongheng Group sold its underneath street shops located|||||
||in property of the 1st phase of Yutian Happy Sea in cash. The revised commitment has been|||||
||approved in Shareholders’ General Meeting of 2013 held on 13th May 2014.|||||

IV. Estimation of operation performance for year of 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable√ Not applicable
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) V. Particular about security investment
□ Applicable√ Not applicable
The Company had no security investment in Period.
Explanation on equity of other listed company held
□ Applicable√Not applicable
The Company had no equity of other listed company in Period.
VI. Particulars about derivatives investment
□ Applicable√ Not applicable
The Company had no derivatives investment in Period.
VII. Registration form of receiving research, communication and interview in the report period
√ Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Content discussed and|
|Date|Place|Way|Type|Object||
||||||documents provided|
||||||Operation situation of the|
|From July to|The company's||||Company, assets status and|
|||Telephone|Personal|Individual investors||
|September in 2014|headquarters||||process of city update|
||||||projects|

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) Section IV. Financial Statement
I. Financial statement
1. Consolidated Balance Sheet
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Items|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|31,637,263.02|54,251,456.20|
|Settlement provisions|||
|Capital lent|||
|Financial assets measured by fair value and whose change is|||
|recorded in current gains and losses|||
|Notes receivable|76,943,566.42|154,375,936.49|
|Accounts receivable|392,228,009.22|162,278,705.83|
|Accounts paid in advance|289,183,823.35|13,483,243.19|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|13,757,672.85|9,623,767.78|
|Purchase restituted finance asset|||
|Inventories|41,786,500.85|47,119,303.85|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|||
|Total current assets|845,536,835.71|441,132,413.34|
|Non-current assets:|||
|Granted loans and advances|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Long-term equity investment|||
|Investment property|31,588,353.01|32,529,420.82|
|Fixed assets|189,441,892.68|195,542,067.03|
|Construction in progress|2,853,356.00|2,323,356.00|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|48,240,258.89|49,360,979.93|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|984,299.90|1,773,524.86|
|Deferred income tax asset|8,191,169.61|8,686,737.88|
|Other non-current asset|||
|Total non-current asset|281,299,330.09|290,216,086.52|
|Total assets|1,126,836,165.80|731,348,499.86|
|Current liabilities:|||
|Short-term loans|120,700,298.98|162,140,601.13|
|Loan from central bank|||
|Absorbing deposit and interbank deposit|||
|Capital borrowed|||
|Financial liability measured by fair value and with variation|||
|reckoned into current gains/losses|||
|Notes payable|56,081,649.22|34,646,052.79|
|Accounts payable|28,991,115.66|52,206,342.81|
|Accounts received in advance|2,124,969.90|1,572,324.29|
|Selling financial asset of repurchase|||
|Commission charge and commission payable|||
|Wage payable|3,624,357.41|4,760,822.51|
|Taxes payable|14,971,755.87|14,943,081.06|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|30,283,261.48|22,392,413.99|
|Reinsurance payables|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|256,777,408.52|292,661,638.58|
|Non-current liabilities:|||
|Long-term loans|592,800,000.00|162,418,800.00|
|Bonds payable|||
|Long-term account payable|||
|Special accounts payable|||
|Projected liabilities|2,604,411.81|2,604,411.81|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|595,404,411.81|165,023,211.81|
|Total liabilities|852,181,820.33|457,684,850.39|
|Owner’s equity (or shareholders’ equity):|||
|Paid-in capital (or share capital)|283,161,227.00|283,161,227.00|
|Capital public reserve|109,496,837.33|109,496,837.33|
|Less: Inventory shares|||
|Reasonable reserve|||
|Surplus public reserve|77,391,593.25|77,391,593.25|
|Provision of general risk|||
|Retained profit|-195,395,312.11|-196,386,008.11|
|Balance difference of foreign currency translation|||
|Total owner’s equity attributable to parent company|274,654,345.47|273,663,649.47|
|Minority interests|||
|Total owner’s equity(or shareholders’ equity)|274,654,345.47|273,663,649.47|
|Total liabilities and owner’s equity(or shareholders’ equity)|1,126,836,165.80|731,348,499.86|

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) 2. Balance Sheet of parent company
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|11,417,144.43|18,575,925.94|
|Financial assets measured by fair value and whose change is|||
|recorded in current gains and losses|||
|Notes receivable|||
|Accounts receivable|1,699,750.46|38,718,332.28|
|Accounts paid in advance|500,000.00|1,004,976.83|
|Interest receivable|||
|Dividend receivable|||
|Other receivables|572,243,661.45|100,394,931.80|
|Inventories|14,806.50|14,806.50|
|Divided into assets held ready for sales|||
|Non-current asset due within one year|||
|Other current assets|||
|Total current assets|585,875,362.84|158,708,973.35|
|Non-current assets:|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|187,708,900.00|186,708,900.00|
|Investment real estate|31,588,353.01|32,529,420.82|
|Fixed assets|101,121,228.40|104,096,997.92|
|Construction in progress|2,853,356.00|2,323,356.00|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|5,314,674.27|5,423,383.56|
|Expense on Research and Development|||
|Goodwill|||
|Long-term expenses to be apportioned|925,083.32|1,698,633.25|

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Deferred income tax asset|8,527,442.54|8,485,262.26|
|Other non-current asset|||
|Total non-current asset|338,039,037.54|341,265,953.81|
|Total assets|923,914,400.38|499,974,927.16|
|Current liabilities:|||
|Short-term loans|30,908,000.00|36,180,000.00|
|Financial liability measured by fair value and with variation|||
|reckoned into current gains/losses|||
|Notes payable|||
|Accounts payable|9,740,367.33|10,745,344.16|
|Accounts received in advance|1,258,950.30|126,522.29|
|Wage payable|707,128.38|655,258.44|
|Taxes payable|11,005,383.75|10,616,750.61|
|Interest payable|||
|Dividend payable|||
|Other accounts payable|16,729,344.03|11,799,762.43|
|Divided into liability held ready for sale|||
|Non-current liabilities due within 1 year|||
|Other current liabilities|||
|Total current liabilities|70,349,173.79|70,123,637.93|
|Non-current liabilities:|||
|Long-term loans|592,800,000.00|162,418,800.00|
|Bonds payable|||
|Long-term account payable|||
|Special accounts payable|||
|Projected liabilities|2,604,411.81|2,604,411.81|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|595,404,411.81|165,023,211.81|
|Total liabilities|665,753,585.60|235,146,849.74|
|Owner’s equity (or shareholders’ equity):|||
|Paid-up capital (or share capital)|283,161,227.00|283,161,227.00|
|Capital public reserve|109,496,837.33|109,496,837.33|
|Less: Inventory shares|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Reasonable reserve|||
|Surplus public reserve|77,391,593.25|77,391,593.25|
|General risk reserve|||
|Retained profit|-211,888,842.80|-205,221,580.16|
|Balance difference of foreign currency translation|||
|Total owner’s equity(or shareholders’ equity)|258,160,814.78|264,828,077.42|
|Total liabilities and owner’s equity(or shareholders’ equity)|923,914,400.38|499,974,927.16|

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
3. Consolidated Profit Statement (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Total operating income|208,177,270.86|150,618,600.97|
|Including: Operating income|208,177,270.86|150,618,600.97|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|209,036,915.32|152,358,158.50|
|Including: Operating cost|178,527,255.38|130,778,059.89|
|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|||
|Operating tax and extras|1,376,240.31|2,815,332.20|
|Sales expenses|3,140,144.67|2,740,965.09|
|Administration expenses|10,002,764.59|8,664,451.85|
|Financial expenses|15,990,510.37|7,359,349.47|
|Losses of devaluation of asset|||
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Including: Investment income on affiliated company and joint venture|||
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|-859,644.46|-1,739,557.53|
|Add: Non-operating income|282,665.42|51,325.00|
|Less: Non-operating expense|2,201.80|10,661.97|
|Including: Disposal loss of non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|-579,180.84|-1,698,894.50|
|Less: Income tax expense|-113,939.91|-538,996.75|
|V. Net profit (Net loss is listed with “-”)|-465,240.93|-1,159,897.75|
|Including: net profit realized before consolidation by mergered party|||
|Net profit attributable to owner’s of parent company|-465,240.93|-1,159,897.75|
|Minority shareholders’ gains and losses|||
|VI. Earnings per share|--|--|
|i. Basic earnings per share|-0.0016|-0.0041|
|ii. Diluted earnings per share|-0.0016|-0.0041|
|VII. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses in later|||
|accounting period|||
|Other comprehensive items able to re-classify as gains/losses in later|||
|accounting period while regulated conditions are satisfy|||
|VIII. Total comprehensive income|-465,240.93|-1,159,897.75|
|Total consolidated income attributable to owners of parent company|-465,240.93|-1,159,897.75|
|Total consolidated income attributable to minority shareholders|||

Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
4. Profit Statement of parent company (this report period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Items|||
||Amount in this period|Amount in last period|
|I. Operating income|15,724,379.84|10,099,979.83|
||2,640,562.98|891,969.77|
|Less: operating cost|||
|Operating tax and extras|930,324.67|704,385.03|
|||0.00|
|Sales expenses|||
||4,714,135.33|4,106,604.76|
|Administration expenses|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
||13,235,797.59|3,586,239.12|
|Financial expenses|||
|Losses of devaluation of asset|||
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|||
|Including: Investment income on affiliated company and joint venture|||
||-5,796,440.73|810,781.15|
|II. Operating profit (Loss is listed with “-”)|||
||67,808.00|39,520.00|
|Add: Non-operating income|||
|||77.22|
|Less: Non-operating expense|||
|Including: Disposal loss of non-current asset|||
||-5,728,632.73|850,223.93|
|III. Total Profit (Loss is listed with “-”)|||
||0.00||
|Less: Income tax expense|||
||-5,728,632.73|850,223.93|
|IV. Net profit (Net loss is listed with “-”)|||
||--|--|
|V. Earnings per share|||
|i. Basic earnings per share|||
|ii. Diluted earnings per share|||
|VI. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses in later|||
|accounting period|||
|Other comprehensive items able to re-classify as gains/losses in later|||
|accounting period while regulated conditions are satisfy|||
|VII. Total comprehensive income|-5,728,632.73|850,223.93|

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
5. Consolidated profit statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Total operating income|574,799,097.22|453,351,424.39|
|Including: Operating income|574,799,097.22|453,351,424.39|
|Interest income|||
|Insurance gained|||
|Commission charge and commission income|||
|II. Total operating cost|574,117,195.53|451,431,120.47|

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Including: Operating cost|505,448,858.26|394,291,567.27|
|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|||
|Operating tax and extras|4,381,764.40|4,088,844.27|
|Sales expenses|8,704,843.81|7,298,539.82|
|Administration expenses|29,522,696.42|29,738,810.28|
|Financial expenses|26,200,025.63|16,882,403.45|
|Losses of devaluation of asset|-140,992.99|-869,044.62|
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|||
|Including: Investment income on affiliated company and joint venture|||
|Exchange income (Loss is listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|681,901.69|1,920,303.92|
|Add: Non-operating income|935,348.39|769,645.79|
|Less: Non-operating expense|99,726.04|2,051,124.98|
|Including: Disposal loss of non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|1,517,524.04|638,824.73|
|Less: Income tax expense|526,828.04|-169,257.95|
|V. Net profit (Net loss is listed with “-”)|990,696.00|808,082.68|
|Including: net profit realized before consolidation by mergered party|||
|Net profit attributable to owner’s of parent company|990,696.00|808,082.68|
|Minority shareholders’ gains and losses|||
|VI. Earnings per share|--|--|
|i. Basic earnings per share|0.0035|0.0029|
|ii. Diluted earnings per share|0.0035|0.0029|
|VII. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses in later|||
|accounting period|||
|Other comprehensive items able to re-classify as gains/losses in later|||
|accounting period while regulated conditions are satisfy|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|VIII. Total comprehensive income|990,696.00|808,082.68|
|Total consolidated income attributable to owners of parent company|990,696.00|808,082.68|
|Total consolidated income attributable to minority shareholders|||

Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
6. Profit Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Items|||
||Amount in this period|Amount in last period|
||35,414,915.54|28,188,898.06|
|I. Operating income|||
||5,996,505.98|3,617,717.90|
|Less: operating cost|||
|Operating tax and extras|2,256,699.79|1,944,199.86|
|||139,350.72|
|Sales expenses|||
||15,339,318.20|14,162,532.17|
|Administration expenses|||
||18,519,254.38|6,368,749.34|
|Financial expenses|||
||168,721.11|-869,044.62|
|Losses of devaluation of asset|||
|Add: Changing income of fair value(Loss is listed with “-”)|||
|Investment income (Loss is listed with “-”)|||
|Including: Investment income on affiliated company and joint venture|||
||-6,865,583.92|2,825,392.69|
|II. Operating profit (Loss is listed with “-”)|||
||156,141.00|59,614.30|
|Add: Non-operating income|||
|||1,889,182.93|
|Less: Non-operating expense|||
|Including: Disposal loss of non-current asset|||
||-6,709,442.92|995,824.06|
|III. Total Profit (Loss is listed with “-”)|||
||-42,180.28|-255,015.27|
|Less: Income tax expense|||
||-6,667,262.64|1,250,839.33|
|IV. Net profit (Net loss is listed with “-”)|||
||--|--|
|V. Earnings per share|||
||-0.0235|0.0044|
|i. Basic earnings per share|||
||-0.0235|0.0044|
|ii. Diluted earnings per share|||
|VI. Other consolidated income|||
|Inc: Other comprehensive items un-able to re-classify as gains/losses in later|||
|accounting period|||
|Other comprehensive items able to re-classify as gains/losses in later|||
|accounting period while regulated conditions are satisfy|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|VII. Total comprehensive income|-6,667,262.64|1,250,839.33|

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
7. Consolidated Cash Flow Statement (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Item|||
||Amount in this period|Amount in last period|
|I. Cash flows arising from operating activities:|||
||254,875,585.83|379,887,983.19|
|Cash received from selling commodities and providing labor services|||
|Net increase of customer deposit and interbank deposit|||
|Net increase of loan from central bank|||
|Net increase of capital borrowed from other financial institution|||
|Cash received from original insurance contract fee|||
|Net cash received from reinsurance business|||
|Net increase of insured savings and investment|||
|Net increase of disposal of transaction financial asset|||
|Cash received from interest, commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business capital|||
|||3,999.97|
|Write-back of tax received|||
||12,388,222.70|16,931,129.23|
|Other cash received concerning operating activities|||
||267,263,808.53|396,823,112.39|
|Subtotal of cash inflow arising from operating activities|||
||579,317,407.91|361,047,890.28|
|Cash paid for purchasing commodities and receiving labor service|||
|Net increase of customer loans and advances|||
|Net increase of deposits in central bank and interbank|||
|Cash paid for original insurance contract compensation|||
|Cash paid for interest, commission charge and commission|||
|Cash paid for bonus of guarantee slip|||
||42,001,233.83|34,702,269.27|
|Cash paid to/for staff and workers|||
||12,140,924.96|13,523,680.36|
|Taxes paid|||
||17,724,030.15|27,525,035.79|
|Other cash paid concerning operating activities|||
||651,183,596.85|436,798,875.70|
|Subtotal of cash outflow arising from operating activities|||
||-383,919,788.32|-39,975,763.31|
|Net cash flows arising from operating activities|||
|II. Cash flows arising from investing activities:|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
|Cash received from recovering investment|||
|Cash received from investment income|||
||50,000.00||
|Net cash received from disposal of fixed, intangible and other long-term assets|||
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|||
||50,000.00||
|Subtotal of cash inflow from investing activities|||
||3,188,200.00|2,646,452.59|
|Cash paid for purchasing fixed, intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|||
||3,188,200.00|2,646,452.59|
|Subtotal of cash outflow from investing activities|||
||-3,138,200.00|-2,646,452.59|
|Net cash flows arising from investing activities|||
|III. Cash flows arising from financing activities|||
|Cash received from absorbing investment|||
|Including: Cash received from absorbing minority shareholders’ investment by|||
|subsidiaries|||
||889,576,740.81|372,867,761.34|
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
||889,576,740.81|372,867,761.34|
|Subtotal of cash inflow from financing activities|||
||503,617,245.56|349,936,294.48|
|Cash paid for settling debts|||
||23,616,708.26|15,568,339.32|
|Cash paid for dividend and profit distributing or interest paying|||
|Including: Dividend and profit of minority shareholder paid by subsidiaries|||
|Other cash paid concerning financing activities|||
||527,233,953.82|365,504,633.80|
|Subtotal of cash outflow from financing activities|||
||362,342,786.99|7,363,127.54|
|Net cash flows arising from financing activities|||
||-1,762,391.19|-3,616,808.99|
|IV. Influence on cash and cash equivalents due to fluctuation in exchange rate|||
||-26,477,592.52|-38,875,897.35|
|V. Net increase of cash and cash equivalents|||
||50,704,319.86|112,834,841.39|
|Add: Balance of cash and cash equivalents at the period -begin|||
||24,226,727.34|73,958,944.04|
|VI. Balance of cash and cash equivalents at the period -end|||

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text) 8. Cash Flow Statement of parent company (from year-begin to end of this period)
Prepared by SHENZHEN ZHONGHENG HUAFA CO., LTD
In RMB
||||
|-|-|-|
|Item|Amount in this period|Amount in last period|
|I. Cash flows arising from operating activities:|||
||32,446,311.37|25,283,258.59|
|Cash received from selling commodities and providing labor services|||
|Write-back of tax received|||
||59,702,045.41|16,931,129.23|
|Other cash received concerning operating activities|||
||92,148,356.78|42,214,387.82|
|Subtotal of cash inflow arising from operating activities|||
|||1,177,778.17|
|Cash paid for purchasing commodities and receiving labor service|||
||3,819,398.87|4,119,957.91|
|Cash paid to/for staff and workers|||
||4,308,884.22|4,649,927.63|
|Taxes paid|||
||494,106,065.77|52,107,150.17|
|Other cash paid concerning operating activities|||
||502,234,348.86|62,054,813.88|
|Subtotal of cash outflow arising from operating activities|||
||-410,085,992.08|-19,840,426.06|
|Net cash flows arising from operating activities|||
|II. Cash flows arising from investing activities:|||
|Cash received from recovering investment|||
|Cash received from investment income|||
|Net cash received from disposal of fixed, intangible and other long-term assets|||
|Net cash received from disposal of subsidiaries and other units|||
|Other cash received concerning investing activities|||
|Subtotal of cash inflow from investing activities|||
||882,600.00|1,067,935.00|
|Cash paid for purchasing fixed, intangible and other long-term assets|||
|Cash paid for investment|1,000,000.00||
|Net cash received from subsidiaries and other units|||
|Other cash paid concerning investing activities|||
|Subtotal of cash outflow from investing activities|1,882,600.00|1,067,935.00|
||-1,882,600.00|-1,067,935.00|
|Net cash flows arising from investing activities|||
|III. Cash flows arising from financing activities|||
|Cash received from absorbing investment|||
||627,000,000.00|31,000,000.00|
|Cash received from loans|||
|Cash received from issuing bonds|||
|Other cash received concerning financing activities|||
||627,000,000.00|31,000,000.00|
|Subtotal of cash inflow from financing activities|||

Shenzhen Zhongheng Huafa Co., Ltd. Third Quarterly Report 2014(Full-Text)
||||
|-|-|-|
||201,890,800.00|2,797,500.00|
|Cash paid for settling debts|||
||20,312,256.75|9,562,956.11|
|Cash paid for dividend and profit distributing or interest paying|||
|Other cash paid concerning financing activities|||
||222,203,056.75|12,360,456.11|
|Subtotal of cash outflow from financing activities|||
||404,796,943.25|18,639,543.89|
|Net cash flows arising from financing activities|||
||12,867.32|-49,705.92|
|IV. Influence on cash and cash equivalents due to fluctuation in exchange rate|||
||-7,158,781.51|-2,318,523.09|
|V. Net increase of cash and cash equivalents|||
||18,575,925.94|10,555,114.25|
|Add: Balance of cash and cash equivalents at the period -begin|||
||11,417,144.43|8,236,591.16|
|VI. Balance of cash and cash equivalents at the period -end|||

 Legal representative: Li Zhongqiu
Person in charge of accounting works: Cao Li
Person in charge of accounting institution: Wu Aijie
II. Audit Report
Whether the third quarter report was audited or not
□Yes√No
The third quarter report of the Company has not been audited
Board of Directors of Shenzhen Zhongheng Huafa Co., Ltd. 25 October 2014