StockCode:200992 ShortFormoftheStock:ZhongluB PublicNoticeNo:2019-09 ShandongZhongluOceanicFisheriesCompanyLimited SummaryofAnnualReport2018 I.ImportantNotice Thesummaryisabstractfromfull-textofannualreport,formoredetailsofoperatingresults,financialconditionandfuturedevelopmentplanoftheCompany;investorsshouldfoundinthefull-textofannualreportthatpublishedonmediaappointedbyCSRC. Objectionstatementofdirectors,supervisorsandseniorexecutives Name Position Contentandreason Statement OtherdirectorsattendingtheMeetingforannualreportdeliberationexceptforthefollowed Nameofdirectorabsent Titleforabsentdirector Reasonsforabsent Attorney Promptofnon-standardauditopinion □Applicable √Notapplicable Profitdistributionpre-planofcommonstockorcapitalizingofcommonreservespre-plandeliberatedbytheBoardinthereportingperiod □Applicable √Notapplicable TheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserve. Profitdistributionpre-planofpreferredstockdeliberatedandapprovedbytheBoardinthereportingperiod □Applicable √Notapplicable II.Basicinformationofthecompany 1.Companyprofile Shortformofthestock ZHONGLUB Stockcode 200992 Stockexchangeforlisting ShenzhenStockExchange Person/Waytocontact SecretaryoftheBoard Rep.ofsecurityaffairs Name LiMing LiYing Officeadd. No.65HaierRd.,LaoshanDistrict, No.65HaierRd.,LaoshanDistrict,Qingdao, Qingdao,Shandong Shandong Fax. 0532-55719258 0532-55719258 Tel. 0532-55717968 0532-55715968 E-mail zl000992@163.com zl000992@163.com 2.Mainbusinessorproductintroductioninthereportingperiod TheCompanyisacomprehensivefisheryenterpriseintegratedwithocean-goingfishing,oceanrefrigeratedtransport,andrefrigeration,processingandtradingofaquaticproducts,itsmainbusinessesinvolveallmajoraspectsoftheindustrychain. (I)Businessintroduction Duringthereportingperiod,thecompany’smainbusinessdidn’tmakeanychange.Oceanfishinghasstillbeenthemainlinewhilerefrigeratedtransportandrefrigerationprocessingtradewerethetwowings,andtheysupportedeachotherandpromotedeachother,theindustrialchainwasrelativelycomplete. 1)Oceanfishing Duringthereportingperiod,thecompanyownedatotalof22ocean-goingfishingvessels,including7large-scaletunaseiners,13large-scaleultra-lowtemperaturetunalongliners,and2medium-sizedtrawlers,whichhavebeenrespectivelyworkingintheIndianOceanandintheAtlanticOcean.Accordingtotheindustrialenvironmentanddevelopmentsituation,inthepasttwoyears,thecompanysuccessfullyestablishedafleetofsevenlarge-scaletunaseinersthroughthefisheryadjustmentandnewequipment,whichwasputintooperationinAugust2018,andgoodeconomicandsocialbenefitswereachieved. 2)Refrigeratedtransport Duringthereportingperiod,thecompany’sseveninternationalrefrigeratedtransportvesselswereengagedinoperationalservices,andmanymeasuresweretakentocompletetheannualeconomicindicators:First,continuouslyimprovedthecompany’sSMSsystemworkandstrengthenedthestandardizedmanagementofenterprises.Second,keptafootholdontheAsia-Pacificspecialrefrigeratedfreightmarket,strivedtoincreasethemarketshare,strictlycontrolledthecostaccounting,strengthenedtheshipequipmentmaintenance,ensuredthesailingrate,andpromotedtherentalincomemaximization.Third,strengthenedtheriskmanagementandcontrol,andminimizedtheuncertainriskfactorsasfaraspossible. 3)Refrigerationprocessingtrade Duringthereportingperiod,inthefaceofmanyunfavorablefactors,weseriouslystudiedthesituation,closelymonitoredthemarketchanges,andinnovatedthebusinessideasandmanagementmethods.GavefullplaytothedistributioncenterofChina’stunatradingcenterandthedeepprocessingandcoldchainlogisticsbaseofdeep-seafishingproductsinShandongProvince,increasedtheeffortsofself-fishingbackhaulpurchaseanddeepprocessing,toimprovingthemechanizationandautomationlevelofprocessing,acceleratedtheconversionofnewandoldkineticenergy,promotedtheresearchanddevelopmentofthe“FiveFast”project,Expandedtheprocessingandsalesoperations,increasedthemarketdevelopmentefforts,focusedoncultivatingnewmodelsofseparatingwarehousefortuna,andactivelyexpandedtheinternationalanddomestictrade. (II)Thedevelopmentstageandthecyclicalcharacteristicsoftheindustryandthecompany’spositioninindustry1)Thedevelopmentstageoftheindustry China’soffshorefishingindustryhasmadegreatprogressmorethan30yearsofdevelopmentsince1985，andwehavebecameagreatpowerinaspectofpelagicfisheries.Withtheimplementationofthenationalmarinestrategy,offshorefishinghasbecomeanimportantpartoftheocean,Thenewandoldkineticenergyconversionbeingimplementedandthehigh-qualitydevelopmentrequirementscontinuouslyoptimizedandupgradedtheindustrialstructure,andthemarketizationandinternationalizationhavebeenconstantlyimproving.Generallyspeaking,the“ThirteenthFive-YearPlan”isakeytransitionperiodforthedevelopmentofChina’soffshorefisheries,anditisalsoanimportantopportunityperiodforthedevelopmentofapowerfulcountryinfishingindustry. 2)Industrycharacteristicsandtheindustrypositionofthecompany Recently,withthesupportfromstateonoceanicfishery,thedeep-seafisheryindustryinthecountryaregrowthrapidly;thelevelofequipment,productiontechnologyandemployees’qualityaregreatlyimproved,wehavenarrowdownthegapwithdevelopedcountries.Inordertoprotectresources,variousfisheryresourcecountriesandfisheryorganizationshaveformulatedstrictprotectionmeasuresandfishing-banpolicies,industrystandardshavebeengraduallyraised,andtherequirementstomanagementlevel,productiontechnology,self-disciplineandperformancecapacityofcompaniesengagedinoffshorefishinghavebecomehigher.Inthelongrun,itisbeneficialtothesustainabledevelopmentofoffshorefishing,butintheshortterm,itwillincreasetheproductioncosts.OurcompanydevelopsoffshorefisheriesveryearlyinChina,andfurthermore,incurrentbusiness,thetalentquality,technicalstrengthen,managementabilityandequipmentlevelareranksinfrontofthepelagicfisheryenterprisesinChina. 3.Mainaccountingdataandfinancialindexes (1)Mainaccountingdataandfinancialindexesforrecentlythreeyears Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata □Yes √No InRMB 2018 2017 Changesoverlastyear 2016 Operatingincome(RMB) 1,023,348,055.53 924,116,785.80 10.74% 845,877,519.52 Net profit attributable to shareholdersofthelistedcompany 90,281,584.29 91,517,485.28 -1.35% 52,585,070.74 (RMB) Net profit attributable to shareholdersofthelistedcompany 88,188,293.14 85,499,842.39 3.14% 47,095,370.03 afterdeductingnon-recurringgains andlosses(RMB) Net cash flow arising from 69,635,895.65 63,205,894.49 10.17% 87,435,723.19 operatingactivities(RMB) Basicearningspershare 0.34 0.34 0.20 (RMB/Share) Dilutedearningspershare 0.34 0.34 0.20 (RMB/Share) WeightedaverageROE 12.06% 13.79% -1.73% 8.88% Endof2018 Endof2017 Changesoverendof Endof2016 lastyear Totalassets(RMB) 1,213,282,583.68 1,065,483,763.80 13.87% 835,239,699.07 Net assets attributable to shareholder of listed company 803,507,440.24 703,769,793.95 14.17% 617,662,263.72 (RMB) (2)Quarterlymainfinancialindex InRMB Firstquarter Secondquarter Thirdquarter Fourthquarter Operatingincome 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 shareholdersofthelistedcompany Net profit attributable to shareholdersofthelistedcompany 2,007.95 22,612,697.69 41,160,473.49 24,413,114.01 afterdeductingnon-recurringgains andlosses Net cash flow arising from -6,302,386.74 28,116,999.05 33,528,917.05 14,292,366.29 operatingactivities Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport □Yes√No 4.Sharesandshareholders (1)Particularsaboutcommonstockshareholders,preferenceshareholderswithvotingrightsrecoveredandtoptenshareholders InShare Total 11,784Totalcommonstock 11,759Total 0Totalpreference 0 common shareholdersatendof preferenc shareholderswith stock lastmonthbefore e votingrights shareholder annualreportdisclosed sharehold recoveredatendof sin erswith lastmonthbefore reporting voting annualreport period-end rights disclosed recovered atendof reporting period Toptenshareholders Fullnameof Natureof Proportionof Amountof Numberofshares Amountofrestrictedsharesheld pledged/frozen Shareholders shareholder sharesheld sharesheld Stateofshare Amount Shandong State-owned Assets State-owned 47.25%125,731,320 125,731,320 Investment legalperson HoldingCo., Ltd ChenTianmingForeignnature 2.16% 5,760,427 0 person CaiYujiu Domestic 1.08% 2,881,900 0 natureperson Haitong International Securities Foreignlegal 0.77% 2,038,736 0 Company person Limited-Accoun tClient ChinaNational HeavyDuty State-owned TruckGroup legalperson 0.73% 1,950,000 1,950,000 JinanTruck LLC Shenwan Foreignlegal HongYuan person 0.73% 1,939,154 0 (H.K.)Limited GUOTAI JUNAN Foreignlegal SECURITIES(person 0.72% 1,907,224 0 HONGKONG) LIMITED QuYanping Domestic 0.63% 1,679,383 0 natureperson Wang Foreignnature 0.46% 1,215,203 0 Dongsheng person QinJun Domestic 0.41% 1,083,820 0 natureperson Explanation on associatedShandongState-ownedAssetsInvestmentHoldingCo.,Ltdhas20%sharesofChinaNational HeavyDutyTruckGroupJinanTruckLLC.Restsoftheshareholdersarethedomesticallylisted relationshipamongtheaforesaidforeignshareholders,andtheCompanyisunknownwhetherthereexistsassociatedrelationship shareholders orbelongstoconsistentactorregulatedby“managementmethodforacquisitionoflisted company”amongtheabovesaidshareholders Explanationonshareholders involvingmarginbusiness(if Notapplicable applicable) (2)TotalpreferredstockshareholdersoftheCompanyandsharesheldbytoptenshareholderswithpreferredstockheld □Applicable √Notapplicable TheCompanyhadnoshareholderswithpreferredstockheldinthereporting. (3)PropertyrightandcontrollingrelationshipsbetweentheactualcontrollersoftheCompanyandtheCompanyisasfollows: State-ownedAssetsSupervisionandAdministration CommissionofShandongProvincialGovernment 70% ShandongState-ownedAssetsInvestmentHolding Co.,Ltd 47.25% ShandongZhongluOceanicFisheriesCo.,Ltd 5.Corporatebonds WhetherornottheCompanypublicofferingcorporationbondsinstockexchange,whichundueorwithoutpaymentinfullatmaturityontheapprovaldateforannualreportdisclosed No III.Discussionandanalysisofbusiness 1.Introductionofoperationinthereportingperiod Whetherthecompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustry No Inreportingperiod,theCompanyachievedbusinessrevenueof1,023,348,100Yuan,increased10.74%comparedlastyear’s924,116,800Yuan;totalprofitachieved101,512,800Yuan,increased3.69%comparedlastyear’s97,899,800Yuan;netprofitattributabletoparentcompanyamountedas90,281,600Yuan,decreased1,235,900Yuanwith1.35%decreaseoverthatoflastyear.Totalassetsamountedas1,213,282,600Yuanwith13.87%growthcomparedbalanceatperiod-begin. (1)Oceanfishing:TheCompanyestablished5groupsofpurseseinefishingvesselslastyear,twoofthemwereputintooperationlastyear,theotherthreegroupshavebeenputintooperationsmoothlyduringtheyear,thefishingoperationswereingoodconditionandthefishingoutputhasreachedtheexpectedtarget.Thecompanymadescientificdecision-making,rationaldispatchoffishery,reasonablearrangementofoperationtimeandship dockingtimefortunalong-liningfishingbusiness,andovercametheunfavorablefactorsoffisheryresourcesdeclineandfishpricedecline,foundwaystoincreaseproduction,increasedcostmanagement,savedcostsandimprovedeconomicefficiency.Duringthereportingperiod,thefishingsectorachievedanoperatingincomeofRMB388,368,700andatotalprofitofRMB57,498,400. (2)Refrigeratedtransport:Thecompanypaidcloseattentiontosafeproductionandoperation,strengthenedshipmanagement,improvedshipsailingrate,andensuredshipoperatingrate;carefullyorganizedandimplementedresponsibilities,supervisedcomprehensivelyandstrongly,madeself-examinationandself-correction,andself-reviewandself-reform,refinedthesafetyinspectionandoperationguidanceofships,andensuredthesafesailingdaysofships;paidattentiontothetrainingandtrainingofship-shorepersonnelandimprovemanagementlevel;Maintaincustomerresourcesandmaintainstabledevelopment;laidemphasisonenterprisemanagementandrequiredbenefitfrommanagement.Duringthereportingperiod,thecompanyrealizedanoperatingincomeofRMB93,665,400andrealizedatotalprofitofRMB31,084,900,ayear-on-yearincreaseof28.25%. (3)Refrigerationprocessingtrade:Theenterprisemanagementinnovationadoptedthefinemanagementthoughtof“doingtheadditionandsubtractionmethodandtakingtheinitiativetodosubtraction”,activelypromotedthe“FiveFast”project,innovatedtheproductionprocess,greatlyimprovedtheproductionandprocessingefficiency,adjustedtheproductstructure,expandednewmarkets,developednewproducts,andbroadenedpublicitychannelsandsaleschannels.Duringthereportingperiod,thecompanyrealizedanoperatingincomeofRMB632,599,900andatotalprofitofRMB28,548,400,anincreaseof12.23%onayear-on-yearbasis. 2.Whetherthemainbusinesshadmajorchangeinthereportingperiod □Yes√No 3.Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit √Applicable□Notapplicable InRMB Operating Increase/decreaseIncrease/decreaseIncrease/decrease Name revenue Operatingcost Grossprofitratio ofoperating ofoperatingcost ofgrossprofit revenuey-o-y y-o-y ratioy-o-y Deep-seafishing 388,368,733.12 57,302,514.49 22.17% 47.36% -0.44% -8.65% Boatrental 93,665,444.15 31,091,937.50 36.11% -3.28% 28.07% -3.68% Aquaticproducts refrigerated 632,599,907.70 28,901,692.71 7.55% -6.79% 13.62% -2.10% processingtrade 4.Whetherthecharacteristicsofmanagementseasonalorcyclicalneedspecialattention □Yes√No 5.Inthereportingperiod,noteofmajorchangesinoperatingincome,operatingcost,totalnetprofitattributabletocommonstockshareholdersoflistedcompanyorcomposingthepreviousreportingperiod□Applicable√Notapplicable 6.Particularaboutsuspendedanddelisting □Applicable√Notapplicable 7.Relevantitemsinvolvingfinancialreport (1)Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethodcomparedwiththefinancialreportoflastyear √Applicable□Notapplicable TheMinistryofFinancereleasedon15June2018theNoticerelatingtoAmendingandPrintingofFinancialStatementFormsofGeneralEnterprisesin2018(CK[2018]No.30).enterprisesadoptingEnterpriseAccountingStandardsshallpreparetheirfinancialstatementsfor2018andotheraccountingperiodsaccordingtotheEnterpriseAccountingStandardsandtheNotice. MaininfluenceforCK[2018]No.15RevisedoftheCompanyare: Changesofcontentsand Itemschanged AmountchangedRe-statedamountItemsandamountsreportedinthe reasons lastperiod previousperiod 1.TogetherlistedasNoteNotereceivable Notereceivable：0Yuan receivable & Account &Account 63,961,900.00 38,792,912.89 Accountreceivable： receivable receivable 38,792,912.89Yuan 2.Interestreceivableand Other Interestreceivable：0Yuan Dividend receivable are receivables 5,529,723.80 11,305,713.11 Dividendreceivable：0Yuan includedundertheOther Otherreceivables：11,305,713.11 receivables Yuan 3.Fixedassetsdisposalis Fixedassets Fixedassets：525,975,263.88 includedundertheFixed 514,332,752.28 525,975,263.88 Yuan assets Fixedassetsdisposal：0Yuan 4.EngineeringmaterialsisConstructionin 11,073,476.37 - Constructioninprogress：0Yuan included under the progress Engineeringmaterials：0Yuan Constructioninprogress 5.TogetherlistedasNoteNotepayable& 108,371,599.66 65,204,257.98 Notepayable：0Yuan payable&AccountpayableAccountpayable Accountpayable：65,204,257.98 Yuan 6. Interest payable andOtherpayable Interestpayable：360,208.32 Dividend payable are 7,043,693.95 6,535,561.08 Yuan includedundertheOther Dividendpayable：0Yuan payable Otherpayable：6,175,352.76 Yuan (2)Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement □Applicable √Notapplicable NomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod. (3)Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope □Applicable √Notapplicable Nochangesinconsolidationstatement’sscopefortheCompanyintheperiod.