山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 Stock Code: 200992 Short Form of the Stock: Zhonglu B Public Notice No: 2019-09 Shandong Zhonglu Oceanic Fisheries Company Limited Summary of Annual Report 2018
I. Important Notice
The summary is abstract from full-text of annual report, for more details of operating results, financial condition and future development plan of the Company; investors should found in the full-text of annual report that published on media appointed by CSRC.
Objection statement of directors, supervisors and senior executives
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|Name|Position|Content and reason|

Statement
Other directors attending the Meeting for annual report deliberation except for the followed
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|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|

Prompt of non-standard audit opinion
□ Applicable√ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reporting period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.
Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable√ Not applicable
II. Basic information of the company
1. Company profile
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|-|-|-|-|-|
|Short form of the stock|ZHONGLU B|Stock code||200992|
|Stock exchange for listing|Shenzhen Stock Exchange||||
|Person/Way to contact|Secretary of the Board||Rep. of security affairs||
|Name|Li Ming||Li Ying||
||No. 65 Haier Rd., Laoshan District,Qingdao, Shandong||No. 65 Haier Rd., Laoshan District, Qingdao,Shandong||
|Office add.|||||
|Fax.|0532-55719258||0532-55719258||
|Tel.|0532-55717968||0532-55715968||
|E-mail|zl000992@163.com||zl000992@163.com||

山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 2. Main business or product introduction in the reporting period
The Company is a comprehensive fishery enterprise integrated with ocean-going fishing, ocean refrigerated transport, and refrigeration, processing and trading of aquatic products, its main businesses involve all major aspects of the industry chain.
(I) Business introduction
During the reporting period, thecompany’s main businessdidn’t make any change. Ocean fishing has still been the main line while refrigerated transport and refrigeration processing trade were the two wings, and they supported each other and promoted each other, the industrial chain was relatively complete.
1) Ocean fishing
During the reporting period, the company owned a total of 22 ocean-going fishing vessels, including 7 large-scale tuna seiners, 13 large-scale ultra-low temperature tuna long liners, and 2 medium-sized trawlers, which have been respectively working in the Indian Ocean and in the Atlantic Ocean. According to the industrial environment and development situation, in the past two years, the company successfully established a fleet of seven large-scale tuna seiners through the fishery adjustment and new equipment, which was put into operation in August 2018, and good economic and social benefits were achieved.
2) Refrigerated transport
During the reporting period, thecompany’s seven international refrigerated transport vessels were engaged in operational services, and many measures were taken to complete the annual economic indicators: First, continuously improved thecompany’s SMS system work and strengthened the standardized management of enterprises. Second, kept a foothold on the Asia-Pacific special refrigerated freight market, strived to increase the market share, strictly controlled the cost accounting, strengthened the ship equipment maintenance, ensured the sailing rate, and promoted the rental income maximization. Third, strengthened the risk management and control, and minimized the uncertain risk factors as far as possible.
3) Refrigeration processing trade
During the reporting period, in the face of many unfavorable factors, we seriously studied the situation, closely monitored the market changes, and innovated the business ideas and management methods. Gave full play to the distribution center ofChina’s tuna trading center and the deep processing and cold chain logistics base of deep-sea fishing products in Shandong Province, increased the efforts of self-fishing backhaul purchase and deep processing, to improving the mechanization and automation level of processing, accelerated the conversion of new and old kinetic energy, promoted the research and development of the “Five Fast” project, Expanded the processing and sales operations, increased the market development efforts, focused on cultivating new models of separating warehouse for tuna, and actively expanded the international and domestic trade.
(II) The development stage and the cyclical characteristics of the industry and thecompany’s position in industry 1) The development stage of the industry
China’s offshore fishing industry has made great progress more than 30 years of development since1985，and we have became a great power in aspect of pelagic fisheries. With the implementation of the national marine strategy, offshore fishing has become an important part of the ocean, The new and old kinetic energy conversion being implemented and the high-quality development requirements continuously optimized and upgraded the industrial structure, and the marketization and internationalization have been constantly improving. Generally speaking, the “Thirteenth Five-Year Plan” is a key transition period for the development ofChina’s offshore fisheries, and it is also an important opportunity period for the development of a powerful country in fishing industry.
2) Industry characteristics and the industry position of the company
Recently, with the support from state on oceanic fishery, the deep-sea fishery industry in the country are growth rapidly; the level of equipment, production technology andemployees’ quality are greatly improved, we have narrow down the gap with developed countries. In order to protect resources, various fishery resource countries and fishery organizations have formulated strict protection measures and fishing-ban policies, industry standards have been gradually raised, and the requirements to management level, production technology, self-discipline and performance capacity of companies engaged in offshore fishing have become higher. In the long run, it is beneficial to the sustainable development of offshore fishing, but in the short term, it will increase the production costs. Our company develops offshore fisheries very early in China, and furthermore, in current business, the talent quality, technical strengthen, management ability and equipment level are ranks in front of the pelagic fishery enterprises in China.
山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 3. Main accounting data and financial indexes
(1) Main accounting data and financial indexes for recently three years
Whether it has retroactive adjustment or re-statement on previous accounting data
□ Yes√No
In RMB
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|-|-|-|-|-|
||2018|2017|Changes over last year|2016|
|Operating income (RMB)|1,023,348,055.53|924,116,785.80|10.74%|845,877,519.52|
|Net profit attributable to|90,281,584.29|91,517,485.28|||
|shareholders of the listed company|||-1.35%|52,585,070.74|
|(RMB)|||||
|Net profit attributable to|||||
|shareholders of the listed company|||||
||88,188,293.14|85,499,842.39|3.14%|47,095,370.03|
|after deducting non-recurring gains|||||
|and losses (RMB)|||||
|Net cash flow arising from|69,635,895.65|63,205,894.49|||
||||10.17%|87,435,723.19|
|operating activities (RMB)|||||
|Basic earnings per share|0.34|0.34|||
|||||0.20|
|(RMB/Share)|||||
|Diluted earnings per share|0.34|0.34|||
|||||0.20|
|(RMB/Share)|||||
|Weighted average ROE|12.06%|13.79%|-1.73%|8.88%|
||||Changes over end of||
||End of 2018|End of 2017||End of 2016|
||||last year||
|Total assets (RMB)|1,213,282,583.68|1,065,483,763.80|13.87%|835,239,699.07|
|Net assets attributable to|803,507,440.24|703,769,793.95|||
|shareholder of listed company|||14.17%|617,662,263.72|
|(RMB)|||||

(2) Quarterly main financial index
In RMB
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|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|201,809,691.98|238,513,084.99|275,909,416.69|307,115,861.87|
|Net profit attributable to|146,855.82|22,455,043.39|43,731,118.98|23,948,566.10|
|shareholders of the listed company|||||
|Net profit attributable to|2,007.95|22,612,697.69|41,160,473.49|24,413,114.01|
|shareholders of the listed company|||||
|after deducting non-recurring gains|||||
|and losses|||||
|Net cash flow arising from|-6,302,386.74|28,116,999.05|33,528,917.05|14,292,366.29|
|operating activities|||||

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in thecompany’s quarterly report and semi-annual report
□Yes√ No
4. Shares and shareholders
(1) Particulars about common stock shareholders, preference shareholders with voting rights recovered and top ten shareholders
In Share
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|-|-|-|-|-|-|-|-|
|Total|11,784|Total common stock|11,759|Total|0|Total preference|0|

山东省中鲁远洋渔业股份有限公司2018年年度报告摘要
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|-|-|-|-|-|-|-|-|-|-|
|common||shareholders at end of||||preferenc|shareholders with|||
|stock||last month before||||e|voting rights|||
|shareholder||annual report disclosed||||sharehold|recovered at end of|||
|s in||||||ers with|last month before|||
|reporting||||||voting|annual report|||
|period-end||||||rights|disclosed|||
|||||||recovered||||
|||||||at end of||||
|||||||reporting||||
|||||||period||||
|Top ten shareholders||||||||||
|||||Amount of||||Number of shares||
|Full name of|Nature of||Proportion of||Amount of restricted shares held|||pledged/frozen||
|Shareholders|shareholder||shares held|shares held||||||
|||||||||State of share|Amount|
|ShandongState-ownedAssetsInvestmentHolding Co.,Ltd|State-ownedlegal person||47.25%|125,731,320|125,731,320|||||
|Chen Tianming|Foreign natureperson||2.16%|5,760,427|0|||||
|Cai Yujiu|Domesticnature person||1.08%|2,881,900|0|||||
|HaitongInternationalSecuritiesCompanyLimited-Account Client|Foreign legalperson||0.77%|2,038,736|0|||||
|China NationalHeavy DutyTruck GroupJinan TruckLLC|State-ownedlegal person||0.73%|1,950,000|1,950,000|||||
|ShenwanHongYuan(H.K.) Limited|Foreign legalperson||0.73%|1,939,154|0|||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||0.72%|1,907,224|0|||||
|Qu Yanping|Domesticnature person||0.63%|1,679,383|0|||||
|WangDongsheng|Foreign natureperson||0.46%|1,215,203|0|||||
|Qin Jun|Domesticnature person||0.41%|1,083,820|0|||||
||||Shandong State-owned Assets Investment Holding Co., Ltd has 20% shares of China National|||||||
|Explanation on associated||||||||||
||||Heavy Duty Truck Group Jinan Truck LLC. Rests of the shareholders are the domestically listed|||||||
|relationship among the aforesaid|||foreign shareholders, and the Company is unknown whether there exists associated relationship|||||||
|shareholders|||or belongs to consistent actor regulated by “management method for acquisition of listed|||||||
||||company” among the above said shareholders|||||||
|Explanation on shareholders||||||||||
|involving margin business (if|||Not applicable|||||||
|applicable)||||||||||

山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 (2) Total preferred stock shareholders of the Company and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
The Company had no shareholders with preferred stock held in the reporting.
(3) Property right and controlling relationships between the actual controllers of the Company and the Company is as follows:
State-owned Assets Supervision and Administration
Commission of Shandong Provincial Government
70%
Shandong State-owned Assets Investment Holding
Co., Ltd
47.25%
Shandong Zhonglu Oceanic Fisheries Co., Ltd
5. Corporate bonds
Whether or not the Company public offering corporation bonds in stock exchange, which undue or without payment in full at maturity on the approval date for annual report disclosed
No
III. Discussion and analysis of business
1. Introduction of operation in the reporting period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In reporting period, the Company achieved business revenue of 1,023,348,100 Yuan, increased10.74% compared lastyear’s 924,116,800 Yuan; total profit achieved 101,512,800 Yuan, increased3.69% compared lastyear’s 97,899,800 Yuan; net profit attributable to parent company amounted as 90,281,600 Yuan, decreased 1,235,900 Yuan with1.35% decrease over that of last year. Total assets amounted as 1,213,282,600 Yuan with13.87% growth compared balance at period-begin.
(1) Ocean fishing: The Company established 5 groups of purse seine fishing vessels last year, two of them were put into operation last year, the other three groups have been put into operation smoothly during the year, the fishing operations were in good condition and the fishing output has reached the expected target. The company made scientific decision-making, rational dispatch of fishery, reasonable arrangement of operation time and ship
山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 docking time for tuna long-lining fishing business, and overcame the unfavorable factors of fishery resources decline and fish price decline, found ways to increase production, increased cost management, saved costs and improved economic efficiency. During the reporting period, the fishing sector achieved an operating income of RMB 388,368,700 and a total profit of RMB 57,498,400.
(2) Refrigerated transport: The company paid close attention to safe production and operation, strengthened ship management, improved ship sailing rate, and ensured ship operating rate; carefully organized and implemented responsibilities, supervised comprehensively and strongly, made self-examination and self-correction, and self-review and self-reform, refined the safety inspection and operation guidance of ships, and ensured the safe sailing days of ships; paid attention to the training and training of ship-shore personnel and improve management level; Maintain customer resources and maintain stable development; laid emphasis on enterprise management and required benefit from management. During the reporting period, the company realized an operating income of RMB 93,665,400 and realized a total profit of RMB 31,084,900, a year-on-year increase of28.25%.
(3) Refrigeration processing trade: The enterprise management innovation adopted the fine management thought of “doing the addition and subtraction method and taking the initiative to do subtraction”, actively promoted the “Five Fast” project, innovated the production process, greatly improved the production and processing efficiency, adjusted the product structure, expanded new markets, developed new products, and broadened publicity channels and sales channels. During the reporting period, the company realized an operating income of RMB 632,599,900 and a total profit of RMB 28,548,400, an increase of12.23% on a year-on-year basis.
2. Whether the main business had major change in the reporting period
□ Yes√ No
3. About the industries, products, or regions accounting for over10% of thecompany’s operating income or operating profit
√Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
||Operating||||||
|Name||Operating cost|Gross profit ratio|of operating|of operating cost|of gross profit|
||revenue||||||
|||||revenue y-o-y|y-o-y|ratio y-o-y|
|Deep-sea fishing|388,368,733.12|57,302,514.49|22.17%|47.36%|-0.44%|-8.65%|
|Boat rental|93,665,444.15|31,091,937.50|36.11%|-3.28%|28.07%|-3.68%|
|Aquatic products|||||||
|refrigerated|632,599,907.70|28,901,692.71|7.55%|-6.79%|13.62%|-2.10%|
|processing trade|||||||

4. Whether the characteristics of management seasonal or cyclical need special attention
□ Yes√ No
5. In the reporting period, note of major changes in operating income, operating cost, total net profit attributable to common stock shareholders of listed company or composing the previous reporting period□ Applicable√ Not applicable
6. Particular about suspended and delisting
□ Applicable√ Not applicable
山东省中鲁远洋渔业股份有限公司2018年年度报告摘要 7. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation method compared with the financial report of last year
√Applicable□Not applicable
The Ministry of Finance released on 15 June 2018 the Notice relating to Amending and Printing of Financial Statement Forms of General Enterprises in2018(CK[2018]No.30).enterprises adopting Enterprise Accounting Standards shall prepare their financial statements for 2018 and other accounting periods according to the Enterprise Accounting Standards and the Notice.
Main influence for CK[2018] No.15 Revised of the Company are:
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|-|-|-|-|-|
|Changes of contents andreasons|Items changed|Amount changed|Re-stated amountlast period|Items and amounts reported in theprevious period|
|1. Together listed as Notereceivable & Accountreceivable|Note receivable& Accountreceivable|63,961,900.00|38,792,912.89|N o t e r e c e i v a b l e ： 0 Y u a nAccount receivable：38,792,912.89 Yuan|
|2. Interest receivable andDividend receivable areincluded under the Otherreceivables|Otherreceivables|5,529,723.80|11,305,713.11|In t e r e s t r e c e i v a b l e ： 0 Y u a nDividend receivable：0 YuanOther receivables：11,305,713.11Yuan|
|3. Fixed assets disposal isincluded under the Fixedassets|Fixed assets|514,332,752.28|525,975,263.88|F ix e d a s s e t s ： 5 2 5 ,9 7 5 , 2 6 3 .8 8YuanFixed assets disposal：0 Yuan|
|4. Engineering materials isincluded under theConstruction in progress|Construction inprogress|11,073,476.37|-|Construction in progress：0 YuanEngineering materials：0 Yuan|
|5. Together listed as Notepayable & Account payable|Note payable &Account payable|108,371,599.66|65,204,257.98|Note payable：0 YuanAccount payable：65,204,257.98Yuan|
|6. Interest payable andDividend payable areincluded under the Otherpayable|Other payable|7,043,693.95|6,535,561.08|In t e r e s t p a y a b l e ： 3 6 0 ,2 0 8 . 3 2YuanDividend payable：0 YuanOther payable：6,175,352.76Yuan|

(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
(3) Compare with lastyear’s financial report; explain changes in consolidationstatement’s scope
□ Applicable√ Not applicable
No changes in consolidationstatement’s scope for the Company in the period.