First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. Shenzhen Zhongheng Huafa Co., Ltd.
First Quarterly Report 2019
April 2019
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. 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 should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
All Directors are attended the Board Meeting for Quarterly Report deliberation. Li Zhongqiu, person in charge of the Company, Yang Bin, person in charger of accounting works and WuAi’jie, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Statement of this Quarterly Report is authentic, accurate and complete.
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. 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)|143,921,648.63|171,620,013.62|-16.14%|
|Net profit attributable to shareholders of|258,233.98|307,367.89||
||||-15.99%|
|the listed company (RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|196,868.38|5,469.74|3,499.23%|
|non-recurring gains and losses (RMB)||||
|Net cash flow arising from operating|19,403,902.99|337,819.42||
||||5,643.87%|
|activities (RMB)||||
|Basic earnings per share (RMB/Share)|0.0009|0.0011|-18.18%|
|Diluted earnings per share (RMB/Share)|0.0009|0.0011|-18.18%|
|Weighted average ROE|0.08%|0.10%|-0.02%|
||||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)|579,621,386.06|617,090,153.46|-6.07%|
|Net assets attributable to shareholder of|324,226,234.72|323,968,000.74||
||||0.08%|
|listed company (RMB)||||

Items and amount of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||
|Gains/losses from the disposal of non-current asset (including the|||
||-3,018.00||
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|||
|including the subsidy enjoyed in quota or ration according to|||
||6,000.00||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Gain or loss on the investment or management of assets|30,941.58||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Other non-operating income and expenditure except for the|||
||37,200.00||
|aforementioned items|||
|Less: impact on income tax|9,757.18||
|Total|61,365.60|--|

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. Total number of shareholders at the end of this report period and top ten shareholders 1. Total number of common shareholders at the end of this report period and top ten common shareholders In shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total common stock shareholders in||||with voting rights recovered at|||||
|||24,818|||||0||
|reporting period-end||||end of reporting period (if|||||
|||||applicable)|||||
|Top ten shareholders|||||||||
||||||Amount of|Number of share pledged/frozen|||
|Shareholder’s|||Amount of shares||||||
||Nature of|Proportion of|||||||
||||||restricted shares||||
|name|shareholder|shares held|held|||State of share||Amount|
||||||held||||
|WuhanZhonghengGroup|Domesticnon-state-ownedlegal person|41.69%|118,044,194||0|Pledged||116,100,000|
|||||||Frozen||116,489,894|
|SEG (HONGKONG) CO.,LTD.|Overseas legalperson|5.85%|16,569,560||0|Pledged||0|
|||||||Frozen||0|
|GOOD HOPECORNERINVESTMENTSLTD|Overseas legalperson|4.49%|12,700,000||0|Pledged||0|
|||||||Frozen||0|
|ChangjiangSecuritiesBrokerage(Hongkong) Co.,Ltd.|Overseas legalperson|1.89%|5,355,249||0|Pledged||0|
|||||||Frozen||0|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
|GuoyuanSecuritiesBrokerage (HongKong) Limited|Overseas legalperson|1.37%|3,870,117|0|Pledged|0|
||||||Frozen|0|
|LI SHERYNZHAN MING|Overseas legalperson|0.39%|1,092,000|0|Pledged|0|
||||||Frozen|0|
|Li Senzhuang|Domestic natureperson|0.36%|1,022,260|0|Pledged|0|
||||||Frozen|0|
|Han Yaming|Domestic natureperson|0.31%|864,200|0|Pledged|0|
||||||Frozen|0|
|Zhong Jiachao|Domestic natureperson|0.30%|857,994|0|Pledged|0|
||||||Frozen|0|
|BINGHU LIU|Overseas natureperson|0.30%|840,313|0|Pledged|0|
||||||Frozen|0|
|Top ten shareholders with unrestricted shares held|||||||
||||||Type of shares||
|Shareholder’s name||Amount of unrestricted shares held|||||
||||||Type|Amount|
|Wuhan Zhongheng Group||118,044,194|||RMB common||
|||||||118,044,194|
||||||share||
|SEG (HONG KONG) CO., LTD.||16,569,560|||Domestically||
||||||listed foreign|16,569,560|
||||||shares||
|GOOD HOPE CORNERINVESTMENTS LTD||12,700,000|||Domestically||
||||||listed foreign|12,700,000|
||||||shares||
|Changjiang Securities Brokerage(Hongkong) Co., Ltd.||5,355,249|||Domestically||
||||||listed foreign|5,355,249|
||||||shares||
|Guoyuan Securities Brokerage(Hong Kong) Limited||3,870,117|||Domestically||
||||||listed foreign|3,870,117|
||||||shares||
|LI SHERYN ZHAN MING||1,092,000|||Domestically||
||||||listed foreign|1,092,000|
||||||shares||
|Li Senzhuang||1,022,260|||Domestically||
||||||listed foreign|1,022,260|
||||||shares||
|Han Yaming||864,200|||Domestically|864,200|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
|||||
|-|-|-|-|
|||listed foreign||
|||shares||
|# Zhong Jiachao|857,994|RMB common||
||||857,994|
|||share||
|BINGHU LIU|840,313|Domestically||
|||listed foreign|840,313|
|||shares||
||Among the top ten shareholders, Wuhan Zhongheng New Science & Technology Industrial|||
||Group Co., Ltd. neither bears associated relationship with other shareholders, nor belongs to|||
|Explanation on associated|the consistent actor that are prescribed in Measures for the Administration of Disclosure of|||
|relationship among the aforesaid|Shareholder Equity Changes of Listed Companies. The Company neither knew whether there|||
|shareholders|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 top 10 common|Among the top ten shareholder, Zhong Jiachao holds 857,994 shares of the Company,|||
|shareholders involving margin|including 369,000 shares holding through credit account, a 43 percent takes in total shares of|||
|business (if applicable)|the company holding|||

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 top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. 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||2019-3-31||2018-1-1||Y-o-y changes||Reasons of changes|
|Account paid in|||||||Part of account paid in advance formaterial at end of last year||
|advance||11,506,518.47||31,348,429.54||-63.29%|||
||||||||Amount contact between the enterprisesincreased||
|Other receivables||7,731,577.17||5,777,179.08||33.83%|||
|Account received in|||||||Account of goods are received in advancefrom small customers||
|advance||246,190.47||159,528.60||54.32%|||
|Item||Jan.-March of 2019||Jan.-March of 2018||Y-o-y changes||Reasons of changes|
||||||||Sales declined, than the taxes decreased||
|Taxes and surcharges||628,766.00||1,117,886.20||-43.75%|||
|Income from|||||||Bank financial purchased in the perioddeclined||
|investment||30,941.58||110,910.67||-72.10%|||
||||||||Received government grants at sameperiod last year||
|Non-operation income||44,300.00||512,000.00||-91.35%|||
|Non-operation|||||||Loss of assets disposal arising at sameperiod last year||
|expenditure||4,118.80||267,736.37||-98.46%|||
||||||||Sales declined, than the taxes decreased||
|Income tax expenses||84,349.95||158,156.45||-46.67%|||
|Item|Jan.-March of 2019||Jan.-March of 2018||Y-o-y changes|||Reasons of changes|
|Taxes paid||2,076,195.55||7,128,845.32||-70.88%||Sales declined, than the taxes decreased|
|Cash received from|||||||Bank financial purchased in the perioddeclined||
|investment income||30,941.58||110,910.67||-72.10%|||
|Net cash received from|||||||Production equipment renew last period||
|disposal of fixed,|||||||||
|intangible and other|||||||||
|long-term assets||-||412,682.00||-100.00%|||
|Cash paid for|||||||Purchased new production equipment fornew workshop last period||
|purchasing fixed,|||||||||
|intangible and other|||||||||
|long-term assets||1,991,100.36||3,851,816.62||-48.31%|||
|Cash received from||39,255,469.21||131,532,341.95||-70.16%|Short-term loans declined in the period||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
|||||||
|-|-|-|-|-|-|
|loans||||||
|Cash paid for settling||||Short-term loans repayment declined inthe period||
|debts|51,413,400.63|131,560,722.31|-60.92%|||
|Influence on cash and||||||
|cash equivalents due to||||||
|fluctuation in exchange||||||
|rate|65,528.58|-200,355.12|132.71%||Impact of exchange rate fluctuations|

 II. Analysis and explanation of significant events and their influence and solutions
√ Applicable□Not applicable
(I) The Company signed Asset Exchange Contract with Wuhan Zhongheng Group on 29 April 2009 (details were referred to in the announcement dated 30 April 2009), and pursuant to the contract, since part of the assets of the Company (namely two parcel of industrial lands located at Huafa road, Gongming town, Guangming new district, Shenzhen (the property certificate No. were SFDZ No.7226760 and SFDZ No.7226763, No. of parcels were A627-005 andA627-007, and the aggregate area was 48,200 sq.m) were the lands listed in the first batch of plan for 2010 Shenzhen urbanization unit planning preparation plan. For promotion of such urbanization project and joint cooperation, the Company has not completed the transfer procedures in respect of the aforesaid land. The Company convoked the first extraordinary meeting of the Board in 2015 on February 16, 2015 and the first extraordinary general meeting of the Board in 2015 on March 4, 2015, which considered and approved the “Motion on promoting and implementing the urban renewal project for the renewal units of Huafa area at Gongming street, Guangming new district, Shenzhen”, specified that the Company and Wuhan Zhongheng Group shall obtain the corresponding compensatory consideration for removal from the respectively owned project plots and the respectively contributed and constructed above-ground buildings before the land development, it is estimated that the compensatory consideration obtained by the Company accounts for50.5% of the total consideration and Wuhan Zhongheng Group accounts for49.5% by calculation.
The sixth extraordinary meeting of the board of directors in 2015 and the third extraordinary general meeting held on September 11, 2015 have considered and adopted the “Proposal on the project promotion and implementation of urban renewal and the progress of related transactions of‘the updated units at Huafa Area, Gong Ming Street, Guangming New District,Shenzhen’”, the company has signed the “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen”, “Contract for the cooperative venture of reconstruction project for Huafa Industrial Park, Gong Ming Street, Guangming New District” and “Agreement on housing acquisition and removal compensation and resettlement” with Wuhan Zhongheng New Technology Industry Group Co., Ltd. (hereinafter referred to as “Wuhan Zhongheng Group”), Shenzhen Vanke Real Estate Co., Ltd. (hereinafter referred to as “Shenzhen Vanke”), and Shenzhen Vanke Guangming Real Estate Development Co., Ltd. (hereinafter referred to as “Vanke Guangming”).
On 12 September 2016, the Company received a “Notice of Arbitration No.: SHEN DP20160334” from SCIA, Shenzhen Vanke applied for arbitration in respect of “Agreement on the cooperation of urban renewal project of the updated units at Huafa Area, Gong Ming Street, Guangming New District, Shenzhen” against the Company and Wuhan Zhongheng Group. The arbitration court holds hearings on 12 November 2016 and 13 May 2017. Shenzhen Court of International Arbitration (SCIA) has given a ruling in August 2017. In February 2018, the company filed an application for repeal of arbitration to the Shenzhen IntermediatePeople’s
Court, the Shenzhen IntermediatePeople’s Court made a judgment on August 16, 2018 to reject thecompany’s claims. On August 29,
2018, the court accepted the compulsory execution application of Shenzhen Vanke, at present, the controlling shareholders are
actively communicating with the relevant parties for the solution. Progress of the case found more in the Notices released on Juchao
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. website (www.cninfo.com.cn) dated 14 Sept. 2016, 1 Nov. 2016, 16 Nov. 2016, on 18 Feb. 2017, 24 March 2017, 25 April 2017, 1 July 2017, 18 August 2017, 9 Feb. 2018, 25 Aug. 2018 and 7 Sept. 2018 respectively.
(ii) On 31 December 2015, the 88,750,047 shares held by Wuhan Zhongheng Group, are pledge to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. Wuhan Zhongheng Group deferred the repurchase business day to 30 June 2017. on 1 Feb. 2016, Wuhan Zhongheng Group pledge the 27,349,953 shares held to China Merchants Securities Assets Co., Ltd. with due date of 31 December 2016. The above mentioned shares are deferred for repurchase of stock pledge by Wuhan Zhongheng Group; pledge expired on 31 December 2017. The trading day for repurchase put off to the date when pledge actually removed. Till end of this period released, controlling shareholder still not removed the pledge and the Company has apply by letter, relevant Notice of Presentment on Stock Pledge from Controlling Shareholder was released. Found more in notice released on Juchao website (www.cninfo.com.cn) date 2 Feb. 2018.
(iii) Our controlling shareholder Wuhan Zhongheng Group holds 116,489,894 shares of the Company, accounting for41.14% of total share capital. The above shares were judicially sealed on 27 September 2016, shares freeze from 27 September 2016 to 13 September 2021; and on 14 December 2018, shares are waiting freeze by ShenzhenIntermediate’s Court with period of 36 months in freeze. Details are set out in the announcement published at Juchao information website (www.cninfo.com.cn) on 27 October 2016 and 11 Jan. 2019.
(iv) On March 21, 2014, Huafa Property and Shenzhen Jifang Investment Co., Ltd. (hereinafter referred to as "Jifang Investment") signed the "Shenzhen Housing Leasing Contract" and the "Supplemental Agreement on Leasing Contract", which were canceled on February 5, 2016. As Jifang Investment occupied the site, and defaulted rent, management fee and water and electricity bills in the long term, in order to safeguard the legitimate rights and interests, Huafa Property submitted a request for arbitration to Shenzhen Arbitration Commission on March 8, 2016, and received the (2016) SZCZ No. 346 ruling paper from Shenzhen Arbitration Commission in November 2016 which ruled Huafa Property won the lawsuit. See details on the notice published at www.cninfo.com.cn by the company on November 8, 2016. The site occupied by Jifang was collected in May 2018.
(v) Commitments of Major shareholder to Increase Shareholding
On November 20, and November 28, 2017, the controlling shareholders respectively made commitments to increase the shareholding of 2.83 million shares of thecompany’s B Shares and no less than 2.8 million shares of thecompany’s A Shares, with a commitment period of 6 months. After that, controlling shareholders apply for two deferrals. As of the disclosure date of this report,it’s still in the commitment fulfillment period, and the commitment has not been fulfilled.
(vi) Director and deputy chairman of the Company Mr. Zhang Guangliu resigned his job as director, deputy chairman and member of the committee of the Board of the Company for job mobility. Nominated by second largest shareholder SEG (HK) Co., Ltd, Mr. Gao Jianbo was elected as the director of 9th BOD of the Company with office same as the session of BOD.
||||
|-|-|-|
|Summary of important issues|Disclosure date|Interim report disclosure index|

 Implementation progress of shares buy-back
□ Applicable√ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable√ Not applicable
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. III. Commitments completed in Period and those without completed till end of the Period from actual controller, shareholders, related parties, purchaser and companies
√Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
|||||Commitment|Commitment||
|Commitments|Promise||Content of commitments|||Implementation|
|||commitments||date|term||
||||The enterprise and its subsidiaries will||||
||||not participate directly or indirectly in||||
||||operation of the business with||||
||||||Implement||
||||competitive of Shen Huafa and its||||
||Wuhan||||since 12 April||
||||controlling subsidiary concerned, and|||In normal|
||Zhongheng|||2007-03-29|2007||
||||not to damage the interest of the Shen|||implementing|
||Group||||throughout||
||||Huafa and its controlling subsidiary by||||
||||||the year||
||||making use of the potential||||
||||controlling-ship of the Shen Huafa||||
||||either||||
||||The enterprise and its subordinate||||
||||enterprise shall avoid a related||||
||||transaction as far as possible with Shen||||
||||Huafa and its controlling subsidiary, as||||
||||for the related dealings occurred||||
||||inevitable or have reasonable cause, the||||
|Commitments|||||||
||||enterprise promise to follow the||||
|for share|||||Implement||
||||principle of fair-ness, justice and||||
|reform|Wuhan||||since 12 April||
||||open-ness, signed the agreement in line|||In normal|
||Zhongheng|||2007-03-29|2007||
||||with the laws, perform legal program,|||implementing|
||Group||||throughout||
||||fulfill information disclosure obligation||||
||||||the year||
||||and relevant approval procedures||||
||||according to the relevant laws,||||
||||regulations and “Listing Rules” of the||||
||||Shenzhen Stock Exchange, guarantee||||
||||not to damage the legal interest of Shen||||
||||Huafa and its shareholders through||||
||||related transactions||||
||||After acquisition and assets||||
||||||Implement||
||||restructuring, guarantee to have an||||
||Wuhan||||since 12 April||
||||independent staff, owns independent|||In normal|
||Zhongheng|||2007-03-29|2007||
||||and completed assets, and independent|||implementing|
||Group||||throughout||
||||in aspect of business, financial and||||
||||||the year||
||||institution from Shen Huafa||||
|Commitments|||||||
|in report of|||||||
|acquisition or|||||||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
|||||||
|-|-|-|-|-|-|
|equity change||||||
|Commitments||||||
|in assets||||||
|reorganization||||||
|Commitments||||||
|make in initial||||||
|public offering||||||
|or re-financing||||||
|Equity||||||
|incentive||||||
|commitment||||||
|||Regarding the lawsuit with Shenzhen||||
|||Vanke: 1. If the arbitration judges||||
|||Shenzhen Vanke to win, the arbitration||||
|||losses caused by the contract disputes||Implemented||
||Wuhan|||||
|||shall be undertaken by Wuhan||since 20|In normal|
||Zhongheng||2016-12-20|||
|||Zhongheng Group in full; 2. The||December|implementing|
||Group|||||
|||contingent losses and risks arising from||2016||
|||the termination of relevant contracts||||
|||shall be undertaken by Wuhan||||
|||Zhongheng Group in advance.||||
||||||Ended as the|
||||||reporting|
||||||period, the|
|||Promise to increasing shares of holding|||promises|
|Other|Wuhan|||In 6 months||
|commitments||as 2.83 million shares of B-stock of the|||during|
|for medium|Zhongheng||2017-11-20|since the date||
|||Company in 6 months since the letter|||performance|
|and small|Group|||of notification||
|shareholders||delivery|||period has not|
||||||been|
||||||implemented|
||||||yet|
||||||Ended as the|
||||||reporting|
||||||period, the|
||||||promises|
||Wuhan|Promise to increasing shares of holding||n 6 months||
||||||during|
||Zhongheng|as 2.8 million shares of A-stock at least|2017-11-28|since the date||
||||||performance|
||Group|in 6 months since the letter delivery||of notification||
||||||period and|
||||||part of the|
||||||commitment|
||||||implemented|
|Completed on|Yes|||||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
|||
|-|-|
|time (Y/N)||
|If the||
|commitments||
|is not fulfilled||
|on time, shall||
||Not applicable|
|explain the||
|specify reason||
|and the next||
|work plan||

IV. Predict of the business performance from January to June 2019
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year
□Applicable √Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in the Period.
VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment in the Period.
VII. Registration form for receiving research, communication and interview in the report period
√Applicable□ Not applicable
|||||
|-|-|-|-|
|Date|||Basic situation index of investigation|
||Method|Type of investors||
|2019-01-03|Telephone communication|Individual|N/A|

VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company has no external security against the rules in the Period.
IX. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable√ Not applicable
There are no controlling shareholders' and its related party's non-business capital occupying of the listed company.
First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd. Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by Shenzhen Zhongheng Huafa Co., Ltd.
2019-03-31
In RMB
||||
|-|-|-|
|Items|2019-3-31|2018-12-31|
|Current assets:|||
|Monetary fund|36,204,765.03|34,108,330.27|
|Settlement provisions|||
|Capital lent|||
|Transactional financial assets|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial assets|||
|Note receivable and account|||
||155,349,020.71|185,983,351.22|
|receivable|||
|Including: Notes receivable|27,134,521.33|69,185,516.71|
|Accounts receivable|128,214,499.38|116,797,834.51|
|Account paid in advance|11,506,518.47|31,348,429.54|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Other account receivable|7,731,577.17|5,777,179.08|
|Including: Interest receivable|||
|Dividends receivable|||
|Buying back the sale of financial|||
|assets|||
|Inventories|70,786,993.64|62,973,909.38|
|Contractual assets|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|42,314.10|59,370.18|
|Total current assets|281,621,189.12|320,250,569.67|
|Non-current assets:|||
|Loans and payments on behalf|||
|Debt investment|||
|Available-for-sale financial assets|||
|Other debt investment|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|||
|Investment in other equity|||
|instrument|||
|Other non-current financial assets|||
|Investment real estate|50,249,240.29|50,681,322.86|
|Fixed assets|186,259,240.27|188,083,873.38|
|Construction in progress|6,875,558.57|5,727,760.23|
|Productive biological assets|||
|Oil and natural gas assets|||
|Right-of-use assets|||
|Intangible assets|44,427,614.19|41,815,689.74|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|484,033.03|542,116.99|
|Deferred income tax assets|6,829,856.59|6,829,856.59|
|Other non-current assets|2,874,654.00|3,158,964.00|
|Total non-current assets|298,000,196.94|296,839,583.79|
|Total assets|579,621,386.06|617,090,153.46|
|Current liabilities|||
|Short-term borrowings|136,622,458.00|161,568,657.88|
|Loan from central bank|||
|Capital borrowed|||
|Transactional financial liability|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable & account payable|72,847,888.26|88,617,663.09|
|Accounts received in advance|246,190.47|159,528.60|
|Selling financial asset of repurchase|||
|Absorbing deposit and interbank|||
|deposits|||
|Agent buying and selling securities|||
|Acting underwriting securities|||
|Wage payable|2,735,590.88|4,700,208.36|
|Taxes payable|9,489,303.40|11,232,819.87|
|Other accounts payable|33,389,309.33|26,778,863.92|
|Including: Interest payable|163,673.05|439,558.70|
|Dividend payable|||
|Handling fees and commissions|||
|payable|||
|Reinsurance payable|||
|Contractual liability|||
|Liability held for sale|||
|Non-current liabilities due within|||
|one year|||
|Other current liabilities|||
|Total current liabilities|255,330,740.34|293,057,741.72|
|Non-current liabilities:|||
|Insurance contract reserve|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Lease liability|||
|Long-term account payable|||
|Long term employee compensation|||
|payable|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Accrued liabilities|64,411.00|64,411.00|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|64,411.00|64,411.00|
|Total liabilities|255,395,151.34|293,122,152.72|
|Owners’ equity:|||
|Share capital|283,161,227.00|283,161,227.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|146,587,271.50|146,587,271.50|
|Less: Inventory shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|77,391,593.25|77,391,593.25|
|Provision of general risk|||
|Retained profit|-182,913,857.03|-183,172,091.01|
|Total owner’s equity attributable to|||
||324,226,234.72|323,968,000.74|
|parent Company|||
|Minority interests|||
|Total owner’s equity|324,226,234.72|323,968,000.74|
|Total liabilities and owner’s equity|579,621,386.06|617,090,153.46|

 Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Items|2019-3-31|2018-12-31|
|Current assets:|||
|Monetary fund|5,239,905.52|25,181,764.87|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Transactional financial assets|||
|Financial assets measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial assets|||
|Note receivable and account|||
|receivable|||
|Including: Notes receivable|||
|Accounts receivable|||
|Account paid in advance|353,050.00||
|Other account receivable|105,431,467.95|99,922,143.84|
|Including: Interest receivable|||
|Dividends receivable|||
|Inventories|14,806.50|14,806.50|
|Contractual assets|||
|Assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|||
|Total current assets|111,039,229.97|125,118,715.21|
|Non-current assets:|||
|Debt investment|||
|Available-for-sale financial assets|||
|Other debt investment|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|186,608,900.00|186,608,900.00|
|Investment in other equity|||
|instrument|||
|Other non-current financial assets|||
|Investment real estate|26,072,603.04|27,583,299.22|
|Fixed assets|98,945,724.53|99,678,839.27|
|Construction in progress||654,356.00|
|Productive biological assets|||
|Oil and natural gas assets|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Right-of-use assets|||
|Intangible assets|4,662,418.53|4,843,600.68|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses||141,666.55|
|Deferred income tax assets|7,506,905.90|7,519,546.71|
|Other non-current assets|||
|Total non-current assets|323,796,552.00|327,030,208.43|
|Total assets|434,835,781.97|452,148,923.64|
|Current liabilities|||
|Short-term borrowings|100,000,000.00|120,000,000.00|
|Transactional financial liability|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable & account payable|9,740,367.33|10,745,840.16|
|Accounts received in advance|133,844.50|67,210.00|
|Contractual liability|||
|Wage payable|820,979.02|1,039,196.20|
|Taxes payable|7,260,647.12|9,305,468.70|
|Other accounts payable|21,424,953.87|14,339,551.78|
|Including: Interest payable|||
|Dividend payable|||
|Liability held for sale|||
|Non-current liabilities due within|||
|one year|||
|Other current liabilities|||
|Total current liabilities|139,380,791.84|155,497,266.84|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Lease liability|||
|Long-term account payable|||
|Long term employee compensation|||
|payable|||
|Accrued liabilities|64,411.00|64,411.00|
|Deferred income|||
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|64,411.00|64,411.00|
|Total liabilities|139,445,202.84|155,561,677.84|
|Owners’ equity:|||
|Share capital|283,161,227.00|283,161,227.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|146,587,271.50|146,587,271.50|
|Less: Inventory shares|||
|Other comprehensive income|||
|Special reserve|||
|Surplus reserve|77,391,593.25|77,391,593.25|
|Retained profit|-211,749,512.62|-210,552,845.95|
|Total owner’s equity|295,390,579.13|296,587,245.80|
|Total liabilities and owner’s equity|434,835,781.97|452,148,923.64|

 3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|I. Total operating income|143,921,648.63|171,620,013.62|
|Including: Operating income|143,921,648.63|171,620,013.62|
|Interest income|||
|Insurance gained|||
|Handling fees and commissions|||
|income|||
|II. Total operating cost|143,650,187.48|171,509,663.58|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Including: Operating cost|123,972,772.66|152,728,695.85|
|Interest expense|||
|Handling fees and commissions|||
|expenses|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Taxes and surcharge|628,766.00|1,117,886.20|
|Sales expenses|3,231,596.06|3,844,118.14|
|Administration expenses|11,971,872.78|9,464,851.87|
|R&D expenses|||
|Financial expenses|3,845,179.98|4,354,111.52|
|Including: interest expenses|2,793,872.51|3,116,070.83|
|Interest income|95,661.57|205,102.82|
|Losses of devaluation of asset|||
|Loss of credit impairment|||
|Add: other income|||
|Investment income (Loss is listed|||
||30,941.58|110,910.67|
|with “-”)|||
|Including: Investment income on|||
|affiliated Company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|Net exposure hedging income (Loss|||
|is listed with “-”)|||
|Changing income of fair value(Loss|||
|is listed with “-”)|||
|Income on disposal of assets (Loss is|||
|listed with “-”)|||
|III. Operating profit (Loss is listed with “-”)|302,402.73|221,260.71|
|Add: Non-operating income|44,300.00|512,000.00|
|Less: Non-operating expense|4,118.80|267,736.37|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|IV. Total Profit (Loss is listed with “-”)|342,583.93|465,524.34|
|Less: Income tax|84,349.95|158,156.45|
|V. Net profit (Net loss is listed with “-”)|258,233.98|307,367.89|
|(i) Classify by business continuity|||
|1.continuous operating net profit (net loss|||
||258,233.98|307,367.89|
|listed with ‘-”)|||
|2.termination of net profit (net loss listed|||
|with ‘-”)|||
|(ii) Classify by ownership|||
|1.Net profit attributable to owner’s of|||
||258,233.98|307,367.89|
|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|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|3.gain/loss of fair value changes|||
|for available-for-sale financial assets|||
|4.Amount of financial assets|||
|re-classify to other comprehensive income|||
|5.Gain/loss of held-to-maturity|||
|investments that re-classify to|||
|available-for-sale financial asset|||
|6.Credit impairment provision for|||
|other debt investment|||
|7.Cash flow hedging reserve|||
|8.Translation differences arising|||
|on translation of foreign currency financial|||
|statements|||
|9.Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority shareholders|||
|VII. Total comprehensive income|258,233.98|307,367.89|
|Total comprehensive income|||
||258,233.98|307,367.89|
|attributable to owners of parent Company|||
|Total comprehensive income attributable|||
|to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.0009|0.0011|
|(ii) Diluted earnings per share|0.0009|0.0011|

 Enterprise combine under the same control in the Period, the combined party realized net profit of 0 Yuan before combination, and realized 0 Yuan at last period for combined party
Legal Representative: Li Zhongqiu
Person in charge of accounting works: Yang Bin
Person in charge of accounting institute: Wu Aijie
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|I. Operating income|8,410,710.54|9,695,927.93|
|Less: Operating cost|1,229,845.47|1,069,611.54|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Taxes and surcharge|235,479.42|608,353.57|
|Sales expenses|||
|Administration expenses|4,650,071.72|5,038,857.70|
|R&D expenses|||
|Financial expenses|2,191,390.21|2,469,805.69|
|Including: interest|||
||2,174,999.98|2,479,875.02|
|expenses|||
|Interest income|6,534.22|16,259.97|
|Losses of devaluation of|||
|asset|||
|Loss of credit impairment|||
|Add: other income|||
|Investment income (Loss is|||
|listed with “-”)|||
|Including: Investment|||
|income on affiliated Company and|||
|joint venture|||
|Net exposure hedging|||
|income (Loss is listed with “-”)|||
|Changing income of fair|||
|value(Loss is listed with “-”)|||
|Income on disposal of|||
|assets (Loss is listed with “-”)|||
|II. Operating profit (Loss is listed|||
||103,923.72|509,299.43|
|with “-”)|||
|Add: Non-operating income|37,300.00||
|Less: Non-operating expense|||
|III. Total Profit (Loss is listed with|||
||141,223.72|509,299.43|
|“-”)|||
|Less: Income tax|35,305.93|127,324.86|
|IV. Net profit (Net loss is listed with|||
||105,917.79|381,974.57|
|“-”)|||
|(i)continuous operating net|||
||105,917.79|381,974.57|
|profit (net loss listed with ‘-”)|||
|(ii) termination of net profit (net|||
|loss listed with ‘-”)|||
|V. Net after-tax of other|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||
|-|
|comprehensive income|
|(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.gain/loss of fair value|
|changes for available-for-sale|
|financial assets|
|4.Amount of financial|
|assets re-classify to other|
|comprehensive income|
|5.Gain/loss of|
|held-to-maturity investments that|
|re-classify to available-for-sale|
|financial asset|
|6.Credit impairment|
|provision for other debt investment|
|7.Cash flow hedging|
|reserve|
|8.Translation differences|
|arising on translation of foreign|
|currency financial statements|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|9.Other|||
|VI. Total comprehensive income|105,917.79|381,974.57|
|VII. Earnings per share:|||
|(i) Basic earnings per share|0.0004|0.0013|
|(ii) Diluted earnings per share|0.0004|0.0013|

 5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|I. Cash flows arising from operatingactivities:|||
|Cash received from sellingcommodities and providing laborservices|||
||131,395,643.63|129,571,099.86|
|Net increase of customerdeposit and interbank deposit|||
|Net increase of loan fromcentral bank|||
|Net increase of capitalborrowed from other financialinstitution|||
|Cash received from originalinsurance contract fee|||
|Net cash received fromreinsurance business|||
|Net increase of insured savingsand investment|||
|Net increase of amount fromdisposal financial assets thatmeasured by fair value and withvariation reckoned into currentgains/losses|||
|Cash received from interest,commission charge and commission|||
|Net increase of capitalborrowed|||
|Net increase of returnedbusiness capital|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Net cash received by agents in|||
|sale and purchase of securities|||
|Write-back of tax received|||
|Other cash received concerning|||
||1,243,646.01|1,231,864.14|
|operating activities|||
|Subtotal of cash inflow arising from|||
||132,639,289.64|130,802,964.00|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|85,022,628.29|96,423,780.37|
|service|||
|Net increase of customer loans|||
|and advances|||
|Net increase of deposits in|||
|central bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Net increase of financial assets|||
|held for transaction purposes|||
|Net increase of capital lent|||
|Cash paid for interest,|||
|commission charge and commission|||
|Cash paid for bonus of|||
|guarantee slip|||
|Cash paid to/for staff and|||
||16,234,429.46|18,269,550.80|
|workers|||
|Taxes paid|2,076,195.55|7,128,845.32|
|Other cash paid concerning|||
||9,902,133.35|8,642,968.09|
|operating activities|||
|Subtotal of cash outflow arising from|||
||113,235,386.65|130,465,144.58|
|operating activities|||
|Net cash flows arising from|||
||19,403,902.99|337,819.42|
|operating activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
||30,941.58|110,910.67|
|income|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Net cash received from disposal|||
|of fixed, intangible and other||412,682.00|
|long-term assets|||
|Net cash received from disposal|||
|of subsidiaries and other units|||
|Other cash received concerning|||
||46,000,000.00|42,000,000.00|
|investing activities|||
|Subtotal of cash inflow from|||
||46,030,941.58|42,523,592.67|
|investing activities|||
|Cash paid for purchasing fixed,|||
||1,991,100.36|3,851,816.62|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
||46,000,000.00|42,000,000.00|
|investing activities|||
|Subtotal of cash outflow from|||
||47,991,100.36|45,851,816.62|
|investing activities|||
|Net cash flows arising from investing|||
||-1,960,158.78|-3,328,223.95|
|activities|||
|III. Cash flows arising from|||
|financing activities|||
|Cash received from absorbing|||
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’|||
|investment by subsidiaries|||
|Cash received from loans|39,255,469.21|131,532,341.95|
|Cash received from issuing|||
|bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from|||
||39,255,469.21|131,532,341.95|
|financing activities|||
|Cash paid for settling debts|51,413,400.63|131,560,722.31|
|Cash paid for dividend and|||
||3,134,606.87|2,860,474.39|
|profit distributing or interest paying|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Including: Dividend and profit|||
|of minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||54,548,007.50|134,421,196.70|
|financing activities|||
|Net cash flows arising from|||
||-15,292,538.29|-2,888,854.75|
|financing activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|65,528.58|-200,355.12|
|exchange rate|||
|V. Net increase of cash and cash|||
||2,216,734.50|-6,079,614.40|
|equivalents|||
|Add: Balance of cash and cash|||
||27,961,209.60|81,474,974.30|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||30,177,944.10|75,395,359.90|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Items|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|8,916,021.40|5,470,760.50|
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||2,102,534.22|100,278,749.63|
|operating activities|||
|Subtotal of cash inflow arising from|||
||11,018,555.62|105,749,510.13|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|||
|service|||
|Cash paid to/for staff and|||
||841,317.45|899,173.60|
|workers|||
|Taxes paid|458,295.30|1,637,395.79|

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|Other cash paid concerning|||
||15,538,788.71|110,421,369.31|
|operating activities|||
|Subtotal of cash outflow arising from|||
||16,838,401.46|112,957,938.70|
|operating activities|||
|Net cash flows arising from|||
||-5,819,845.84|-7,208,428.57|
|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|||
|Cash paid for purchasing fixed,|||
|||1,036,800.00|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
|investing activities|||
|Subtotal of cash outflow from|||
|||1,036,800.00|
|investing activities|||
|Net cash flows arising from investing|||
|||-1,036,800.00|
|activities|||
|III. Cash flows arising from|||
|financing activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans||100,000,000.00|
|Cash received from issuing|||

First Quarterly Report 2019 (Full-Text) Shenzhen Zhongheng Huafa Co., Ltd.
||||
|-|-|-|
|bonds|||
|Other cash received concerning|||
|financing activities|||
|Subtotal of cash inflow from|||
|||100,000,000.00|
|financing activities|||
|Cash paid for settling debts||100,199,862.50|
|Cash paid for dividend and|||
||2,174,999.98|2,315,212.52|
|profit distributing or interest paying|||
|Other cash paid concerning|||
|financing activities|||
|Subtotal of cash outflow from|||
||2,174,999.98|102,515,075.02|
|financing activities|||
|Net cash flows arising from|||
||-2,174,999.98|-2,515,075.02|
|financing activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|-23.63|-166.89|
|exchange rate|||
|V. Net increase of cash and cash|||
||-7,994,869.45|-10,760,470.48|
|equivalents|||
|Add: Balance of cash and cash|||
||12,024,179.58|25,181,764.87|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||4,029,310.13|14,421,294.39|
|equivalents at the period -end|||

II. Explanation on financial statement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new financial instrument rules, new revenue rules and new leasing rules
□Applicable√Not applicable
2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument rules and new leasing rules
□Applicable√Not applicable
III. Audit report
Whether the 1st quarterly report has been audited or not
□Yes√ No
1Q report of the Company is unaudited.