Shenzhen Textile (Holdings) Co., Ltd.
Semi-Annual Report 2009
August 2009Contents
Section I Important Notes
Section II Basic Information of the Company
Section III Change of Share Capital and Shareholding of Principal
Shareholders
Section IV Information about Directors, Supervisors and Senior
Executives.
Section V Report of the Board of Directors
Section VI Important Events
Section VII Financial Report (Uncensored)
Section VIII Documents Available for InspectionSection I Important Notes
The Board of Directors and the Supervisory Committee of the Company and its
directors, supervisors and senior executives hereby guarantees that there are no false
records, misleading representation or important omissions in this report and shall
assume joint and several liability for the authenticity, accuracy and completeness of
the contents hereof.
Wang Bin, Chairman of the Board, Zhu Jun,Geneal Manager and Liu Yi, the Vice
Chief of accounting represent and warrant the financial and accounting report in the
Semi-annual report is true and complete.
The financial report of the semi-annual report has not been audited.
Section II Basic Information of the Company
1. Statutory name of the Company :
In Chinese: 深圳市纺织（集团）股份有限公司
In English : SHENZHEN TEXTILE (HOLDINGS) CO., LTD.
English abbreviation: STHC
2. Stock exchange for listing: Shenzhen Stock Exchange
Stock abbreviation: Shen Textile A, Shen Textile B
Stock code: 000045, 200045
3. Registered address of the Company: 6/F, Shenfang Building, 3 Huaqiang North Road, Futian
District, Shenzhen
Office Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Post Code: 518031
Website: http://chinasthc.com
E-mail : szfzjt@chinasthc.com
4．Legal Representative : Wang Bin
General Manager: Zhu Jun
5. Secretary of the Board of Directors : Chao Jin
Securities affair representative:Liao Ruiyan
Contact Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District,
Shenzhen
Zip code: 518031
Tel: 0755- 83776043
Fax: 0755- 83776139
E-mail：chaoj@chinasthc.com
liaory@chinasthc.com
6. Newspapers selected by the Company for information disclosure: Securities Times,
Hong Kong Commercial Daily
Internet website designated by CSRC for publishing the Interim report of the
Company: http://www.cninfo.com.cn
The place where the Interim report is prepared and placed: Office of the Company7. Highlights of financial data and indicators
(1) Highlights of financial data and indicators
Unit:RMB
End of report year
At the end of last
year
Increase/Decrease
（％）
Total assets 606,978,387.47 565,791,088.77 7.28%
Owners’ equity attributable to shareholders
of the listed company
463,952,278.08 417,227,296.51 11.20%
Share capital 245,124,000.00 245,124,000.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
1.89 1.70 11.18%
In the report
period (From
January-June)
The same period
of last year
Increase/decrease
（％）
Total operating income 184,999,096.82 143,304,675.67 29.09%
Operating profit 26,398,204.20 22,665,687.66 16.47%
Total profit 27,223,742.25 39,950,934.17 -31.86%
Net profit attributable to shareholders of the
listed company
22,611,368.55 33,287,478.38 -32.07%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
10,223,705.04 4,381,906.97 133.32%
Basic earnings per share(RMB/share) 0.09 0.14 -35.71%
Diluted earnings per share(RMB/share) 0.09 0.14 -35.71%
Return on equity（%） 4.87% 7.98% Decrease 3.11%
Net cash flow arising from operating
activities
12,841,942.65 28,583,401.24 -55.07%
Net cash flow per share arising from
operating activities (RMB/share)
0.05 0.12 -58.33%
(2)Items and amount of non-recurring gains and loss
Unit：RMB
Items
Amount of the
report period
Gains and losses from the disposal of non-current assets 14,760,178.57
Net amount of non-operating income and expense the aforesaid
items 727,351.05
Total of non-recurring gains and loss 15,487,529.62
Less：Income tax 3,099,866.11
Gains and losses of non-recurring after deducting income tax and
Minor shareholders’ Gains and losses
12,387,663.51
Notes：The gains and losses on disposal of non-current assets are the income from selling shares ofShenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "Shenzhen Victor
Onward").
(3)The financial reports prepared by the Company according to domestic and international
accounting standards are consistent.
Section III Change of Share Capital and Shareholding of Principal Shareholders
1.Particulars about the shareholding of principal shareholders
The total number and the structure of the shares of the Company remained unchanged
in the report period.
2 .Total number of shareholders
As of June 30, 2009, the Company had 19,888 shareholders in total including one Negotiable
shareholder of conditioned shares, 11,374 shareholders of A shares and 8,513 shareholders of B
shares.
3. Particulars about the shares held by the main shareholders
Particulars of the shareholding of the top ten shareholders as of June 30, 2009
Unit：Shares
Total of shareholders 19,888
Top 10 shareholders
Name of the shareholder
Properties of
shareholder
Share
proportion %
Total shares
Conditional
shares
Pledged or frozen
Shenzhen Investment
Management Co., Ltd.
State-owned
legal person
59.25% 145,227,052 136,465,560 0
Shenzhen Zhongnan
Liankang Technology Co.,
Ltd.
Foreign legal
person
0.43% 1,065,804 0 Unknown
Sun Xiufang
Domestic
nature person
shares
0.39% 955,557 0
Unknown
HSBC BROKING
SECURITIES (ASIA)
LIMITED-CLIENTS A/C
Foreign legal
person
0.29% 720,000 0 Unknown
Ma Li
Domestic
nature person
shares
0.28% 683,000 0
Unknown
Xie Heping
Domestic
nature person
shares
0.27% 650,000 0
Unknown
Li Xiaoding
Domestic
nature person
shares
0.26% 636,065 0
Unknown
Zheng Chuangjian
Foreign
natural person
0.25% 606,850 0
Unknown
Liu Hong
Foreign
natural person
0.24% 590,000 0
Unknown
PRO PERFORMANCE
Foreign legal
person
0.22% 530,000 0
UnknownTop 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Shenzhen Investment Management Co.,
Ltd.
8,761,492 RMB Common shares
henzhen Zhongnan Liankang Technology
Co., Ltd.
1,065,804 RMB Common shares
Sun Xiufang 955,557 RMB Common shares
HSBC BROKING SECURITIES (ASIA)
LIMITED-CLIENTS A/C
720,000
Foreign shares placed in
domestic exchange
Ma Li 683,000 RMB Common shares
Xie Heping 650,000 RMB Common shares
Li Xiaoding 636,065 RMB Common shares
Zheng Chuangjian 606,850
Foreign shares placed in
domestic exchange
Liu Hong 590,000
Foreign shares placed in
domestic exchange
PRO PERFORMANCE 530,000
Foreign shares placed in
domestic exchange
Notes to the related
relationship between the
top ten shareholders or
their concerted action
In the above table, there is no relationship between the shareholder
holding state-owned legal person shares and other shareholders.
Whether there is relationship between holders of public shares is
unknown.
4. The quantity of shares held by the top 10 shareholders subject to sale restriction and conditions
of sale restriction
No
Name of
shareholder
holding shares
subject to sale
restriction
Quantity of
shares held
by the
shareholder
subject to
sale
restriction
Time when
shares can
be listed
and traded
Quantity of
additional
shares that can
be listed and
traded
Conditions of sale restriction
1 Shenzhen
Investment
Management Co.,
Ltd.
136,465,560 September
11, 2009
136,465,560 The non-negotiable shares of
the Company will not be
listed and traded within 24
months. Within 12 months
after the expiration of the
said commitment period, the
proportion of the number of
the original non-negotiable
shares sold by the controlling
company through Shenzhen
Stock Exchange to the total
number of shares of
Shenzhen Textile shall not
exceed 5%.
5. The controlling shareholder of the Company did not change in the report period.Section IV Information about Directors, Supervisors and Senior Executives.
1. In the report period, Shares held by directors, supervisors and senior executives of the Company
Unit：Shares
Name Position Quantity of shares held
at beginning of period
(Nature of share)
Quantity of shares held at
the end of period (Nature
of share)
Li Jingqiang Director 63,450（A） 63,450（A）
Zhou Meirong Supervisor 7,050（B） 7,050（B）
Zhu Meizhu Deputy General Manager 0 93,000（B）
Except the above personnel, other directors, supervisors and senior executives of the
Company did not hold the shares of the Company.
2.In the report period, The directos ,supervisors and senior executive of the Company remained
unchanged.
Section V Report of the Board of Directors
1. Main operation of the Company
The Company is mainly engaged in the production and trading of textile products, garments ,
Polarizer sheet for LCD and relevant products and in the lease and management of properties.
In the report period，the Company earned income of RMB 184.9991 million from its main
operation, which increased by 29.09% year on year. The net profit for the owners of the parent
company was RMB 22.6114 million, which decreased by 32.07% year on year.
Unit：RMB’0000
The Status of key business in terms of industry of business
In terms of business line
or product
Income from
main
operation
Cost of main
operation
Gross
profit ratio
（%）
Increase/decre
ase of income
from main
operation over
the previous
year (%)
Increase/decrea
se of cost of
main operation
over the
previous year
(%)
Increase or decrease
of Gross profit ratio
from main operation
over the previous year
(%)
Domestic and foreign
trade
13,944.20 13,823.21 0.87% 68.18% 68.78% Increase 7.18 个%
Manufacturing 2,193.63 1,952.91 10.97% -19.73% -22.86% Increase 4.38%
Lease and Management of
Property
3,295.98 0.00 100.00% 1.76% 0.00% 0.00
Of which: In the report period,The total amount of product sales or rendering of services of
the Company to its controlling shareholder and subsidiaries was RMB 0.00 million in the report
period.
(1) Industry: In the report period, the income of the Company from manufacturing industry
was RMB 21.9363 million, which decreased by 19.73% year on year, The Company earned total
profit of RMB - 2.4554 million. Loss decreased by RMB 0.7013 year on year. Sales income
decreased mainly due to decrease of overseas orders of knitted garments. Loss decreased mainly
because the Company strengthened control of budget goal, broadened sources of income and
reduced expenditure, tapped potential and effectively reduced cost and expenses.
(2) Trade: In the report period，the income of the Company from trade was RMB 139.442
million, which increased by 68.18% year on year, The total profit from trade is RMB0.6895million, which increased by 17.16% year on year, Main reason: Development of trade channels in
many ways and increase of agency-based export business.
(3) Property lease and management: In the report period, the income of the Company from
lease and service industry was RMB 32.9598 million, which increased by 1.76% year on year,
Main reason: Lease service enterprises innovated services items, enhanced property value and
kept stable occupancy rate.
2. Analysis of the financial position and operating results of the Company
The operating income was RMB 184,999,096.82, which increased by 29.09% year on
year,The operating cost was RMB 149,583,054.21,which increased by 37.50% year on year,
mainly due to the growth of export business on agency basis.
The Financial expenses was RMB 1,235,352.17, which decreased by 62.72％，Main reason:
Decrease of total amount of bank loans and interest expenses.
Asset impairment loss was RMB 968,054.25， Writeback decreased by 91.97% year on year
mainly due to writeback of provision of RMB 12,774,650.00 for bad debts after recovery of
arrears in the same period of previous year.
Investment income was RMB 17,784,027.09, which increased by 120.17% year on year
mainly due to year-on-year increase of income from sale of financial assets available for sale by
RMB 9,467,101.63.
Operating profit was RMB 26,398,204.20, which increased by 16.47% year on year mainly
due to increase of investment income.
Non-operating income was RMB 853,452.7, which decreased by 95.16% year on year
mainly due to year-on-year decrease of income from transfer to land use right and recovery of
interest on arrears. In the same period of previous year, the income from transfer of land use right
was RMB 15,612,936.05 and recovered interest on arrears was RMB 2,000,000.00.
Non-operating expenses was RMB 27,914.65, which decreased by 92.06% year on year
mainly due to year-on-year decrease of expenditure of RMB 322,681.84 on donation.
Total profit was RMB 27,223,742.25, which decreased by 31.86% year on year mainly due to
year-on-year decrease of writeback of provision for bad debts and obtainment of non-recurring
income including recovery of interest on arrears and income from transfer of land use right.
Income tax expenses were RMB 4,612,373.70, which decreased by 34.92% year on year
mainly due to increase of deferred income tax expenses after writeback of provision for bad debts
in the same period of previous year.
Net profit and net profit for the owner of parent company were RMB 22,611,368.55 and
RMB 22,611,368.55 respectively, which respectively decreased by 31.20% and 32.07% year on
year mainly due to writeback of provision for bad debts and big net non-recurring income
including recovery of interest on arrears and income from transfer of land use right.
Net cash flows from operating activities was RMB 12,841,942.65,which decreased by RMB
15,741,458.59 year on year mainly due to year-on-year decrease of other cash receipt related to
operating activities in current period by RMB 12,215,404.99.
Net cash flows from investing activities were RMB -1,718,967.74, which decreased by RMB
1,545,312.17 year on year mainly due to year-on-year increase of total amount of external
investment and investment in acquisition or construction of fixed assets.
Net cash flows from financing activities were RMB -21,906,205.05, which increased by
RMB 36,210,124.67 year on year mainly due to year-on-year decrease of total amount of repaid
bank loans in the report period.
Net increase in cash and cash equivalents was RMB -10,778,748.85, which increased by RMB
18,928,594.94 year on year mainly due to year-on-year decrease of net outflow of cash from financingactivities.
Total assets were RMB 606,978,387.47, which increased by 7.28% over the beginning of the
year mainly due to increase of net value of financial assets available for sale measured at fair
value and net operating profit.
Payment in advance was RMB 40,976,515.31, which increased by 297.04% over the
beginning of the year mainly because the first installment of assignment price, i.e., RMB 39
million, paid by the Company to Beijing Equity Exchange for purchasing equity of Shenzhen
Shenfang Lekai Photoelectronic Materials Co., Ltd. according to the equity transaction contract
signed with China Lekai Film Group Company was temporarily accounted for as prepayment.
Accounts payable were RMB 33,869,139.57, which increased by 79.59% over the beginning
of the year mainly due to arrears for purchase from suppliers.
Advance collections were RMB 3,631,700.05, which decreased by 68.35% over the
beginning of the year mainly due to settlement of advances on sales incurred at the end of
previous year.
Taxes and levies payable were RMB -12,322,326.49, which decreased by 843.31% over the
beginning of the year, mainly due to sharp increase of export rebates not carried forward among
value added tax payable for export business.
Dividends payable were RMB 9,835,447.80, which increased by 96.71% over the beginning
of the year mainly because cash dividends for 2008 were not paid to the controlling shareholder.
Deferred income tax liabilities were RMB 14,869,209.07, which increased by 157.40% over
the beginning of the year mainly due to the increase of deferred income tax liabilities recognized
according to the difference between book value and tax base as a result of sharp increase of gains
on change of fair value of financial assets available for sale.
Capital surplus was RMB 105,291,407.05, which increased by 52.77% over the beginning of the
year mainly due to sharp increase of fair value accounted for as capital surplus as a result of big rise of
market price of negotiable shares of Shenzhen Victor Onward held by the Company over the beginning
of year.
3. The problems confronted by the Company in operation and countermeasures
In the report period, With the spread of international financial crisis in the whole world, the
consumption capacity of international textile market decreased. In addition, the Company's R&D
ability of textile products and domestic market development strength were weak. As a result, the
Company's orders of textile products decreased. Affected by financial crisis and boom period of
industries, most panel factories operated under capacity and demand of polarizer sheet decreased.
The Company's polarizer sheet output and sales volume respectively decreased by 21% and 17%
year on year. The construction of Huaqiang North Station of Shenzhen Metro greatly affected the
lease of main properties of the Company located at Huaqiang North. The sales income and total
profit of hotels decreased by 20% and 60% respectively.
Main responsive measures of the Company: 1. Exiting disadvantageous textile processing
field, effectively integrating available resources and optimizing industrial structure. 2.
Strengthening new polarizer sheet product development and enhancing quality, gradually
narrowing technological gap between the Company and top international enterprises through
extensive technical exchange and cooperation with overseas polarizer sheet manufacturers,
continuing to keep technological advantage at home and ensuring the progress of phase-II
expansion and reconstruction project according to plan. 3. Guaranteeing standardized operation
and trying to improve economic benefit through further strengthening development of internal
control system, enhancing management level and sharpening risk prevention awareness.
4. The investment of the Company(1) In the report period, There were neither funds raised in the report period nor those raised
in previous periods whose use continued in the report period.
(2) In the report period, The phase-II polarizer sheet expansion project invested by the
Company with self-owned funds was constructed as scheduled. The equipment installation was
smoothly completed. The project entered the phase of trial run for chemical engineering. The
bachelor's dormitory project for Longgang Nanlian Industrial Area invested by the Company with
self-owned funds was completed as scheduled and entered acceptance phase.
5. The Company's forecast of profit for the next report period
According to the analysis of the current production and operation status of the Company, the
net profit for the period from January to September 2009 is estimated to change slightly over that
for the same period of previous year (RMB 38.3189 million).
Section VI Important Events
1. Status of corporate administration:
In the report period, In accordance with the requirements of relevant laws and regulations and
regulatory documents including the Company Law, the Securities Law, Guidelines for Governance
of Listed Companies, (2008) No.27 Announcement of CSRC and Notice of Satisfactorily Doing
the Work Related to In-depth Promotion of Special Activities of Corporate Governance issued by
Shenzhen Securities Regulatory Bureau, the Company seriously performed the obligation of
information disclosure, unceasingly improved organizational structure of internal control,
standardized its operation, maintained the effect of rectification carried out after special
governance activities, strengthened management of business flow, made all preparations for full
implementation of Fundamental Norms of Internal Control of Enterprises to promote the further
enhancement of its governance level. Through organizing directors, supervisors and senior
executives, controlling shareholder and persons in the know of non-open information to learn the
decision on punishment of personnel of listed companies who purchased and sold stocks in
violation of regulations in Shenzhen, the Company further sharpened relevant personnel's
awareness of observation of laws and disciplines and self discipline and strictly prevent the
controlling shareholder and persons in the know of non-open information from purchasing and
selling its stocks in violation of laws and regulations. At present, the actual conditions of corporate
governance basically met the requirements of the regulatory documents issued by CSRC in respect
of governance of listed companies.
As Shenzhen Investment Holding Co., Ltd., the controlling shareholder of the Company, is an
enterprise directly under Shenzhen State-owned Assets Commission, the main non-open
information submitted by the Company to the controlling shareholder according to regulations on
management of state-owned assets is flash report of monthly financial indicators which is
submitted before the 10th day of each month.
The Company established honesty files of the persons in the know of insider information and
standardized management of non-open information according to the requirements of Notice of
Further Standardizing Non-open Information Provided by Listed Companies to Controlling
Shareholders and Actual Controllers for Record issued by Shenzhen Securities Regulatory Bureau.
2. The distribution plan implemented by the Company in the report period:
In the report period, The Company implemented the profit distribution plan adopted at 2008
annual shareholders' general meeting, i.e., allocated 10% of its net profit for 2008, i.e., RMB
4,319,709.75,for statutory common reserve fund and paid RMB 0.5 (including tax) in cash for
every 10 shares to all shareholders with existing total share capital, i.e., 245,124,000 shares, as the
base. (After deduction of tax, RMB 0.45 was paid in cash for every 10 shares to individualshareholders of A shares, investment funds and qualified foreign institutional investors. With
respect of other nonresident enterprises holding A shares, the Company did not withhold and remit
income tax, which was paid by the taxpayer at the place where income was obtained. Tax was
temporarily not be deducted for the shareholders holding B shares). The implementation of the
above distribution plan was completed on June 17, 2009 (Refer to No. 2009-15 announcement of
the Company for details).
After decision by the board of directors of the Company, the Company is neither to distribute the
net profit for the first half of 2009 nor to capitalize any capital surplus.
3. Material lawsuits and arbitration
4. The shares of other listed companies held by the Company:
As of June 30, 2009, The Company holds 12,273,670 shares of Shenzhen Victor Onward.
These shares are all unrestricted negotiable shares, which account for 7.26% of total share of
Shenzhen Victor Onward. were financial assets available for sale. The initial investment cost is
RMB 14,638,062.12. At the end of the report period, The net income for the report period is RMB
11,729,593.26 and the change of owner's equity for the report period is RMB 36,369,813.02.
Except these shares, the Company did not hold any share of other listed companies or
intended listed companies or financial enterprises such as commercial banks, securities companies,
insurance companies, trust companies and futures companies.
5. Material disposal of assets
(1)The Company was not involved in any material assets acquisition or enterprise merger in
the report period.
(2)Other
The Company acquired 52.05% equity of Shenzhen Shenfang Lekai Photoelectronic
Materials Co., Ltd. held by China Lekai Film Group Company through Beijing Equity Exchange
on June 18, 2009. The acquisition amount is RMB 78 million. After completion of acquisition, the
ratio of equity of Shenzhen Shenfang Lekai Photoelectronic Materials Co., Ltd. held by the
Company rose from 47.95% to 100%. On June 23, the Company and China Lekai Film Group
Company signed Equity Transaction Contract (Refer to No. 2009-17 and 2009-20 Announcement
of the Company for details). In the report period, the Company paid the first installment of
payment for equity assignment, i.e., RMB 39 million, to China Lekai Film Group Company, with
the period specified in the contract. The implementation of this transaction aimed to keep the
stable operation and development of Shenzhen Shenfang Lekai Photoelectronic Materials Co.,
Ltd., which helped the Company quicken industrial structure adjustment and complied with its
strategic development planning.
6. The Company was not involved in any material related transaction in the report period.
7. The Company's external guarantee
(1) On December 12, 2008, the board of directors of the Company adopted the Proposal for
Providing Guarantee to Shenzhen Beauty Century Garment Co., Ltd. The Company was approved
to provide guarantee of joint and several liabilities for the principal and interest of extended credit
in the amount of not more than RMB 20 million applied by Shenzhen Beauty Century Garment
Co., Ltd., a wholly-owned subsidiary, to Shenzhen Honey Lake Sub-branch of Guangdong
Development Bank Co., Ltd. and for relevant expenses (Refer to No. 2008-27 announcement of
the Company for details). In the report period, the actual amount of guarantee provided by the
Company to Shenzhen Beauty Century Garment Co., Ltd. was RMB 10 million. The loan term for
RMB 5 million is March 20, 2009 to September 19, 2009 and that for another RMB 5 million is
RMB March 23, 2009 to September 22, 2009. The above amount of guarantee accounts for 2.16%
of the audited net assets of the Company for the latest period.(2) The special statement and independent opinions of the independent directors of the
Company on fund occupation by related parties and external guarantee of the Company
According to the Circular on Certain Issues Relating to Standardization of Fund Transfer
Between Listed Companies and Their Related Parties and Guarantees Provided by Listed
Companies (Zheng Jian Fa (2003) No. 56 Document), the Circular on Strengthening Disclosure of
Information about Fund Occupation and Regulation-violating Guarantee of Listed Companies
(Shenzhen Ju Fa Zi (2004) No. 338) and the Circular of Regulating External Guarantees Provided
by Listed Companies (Zheng Jian Fa (2005) No. 120 Document), we audited the external
guarantees provided by the Company with responsible attitude On January to June 2009, We
hereby make the following statement:
1. The fund occupation between the Company and other related parties occurred was fund
transfer formed during normal operation. The controlling shareholder and other related parties did
not occupy the funds of the Company in violation of regulations;
2. The limit of loan guarantee to be provided by the Company to Shenzhen Beauty Century
Garment Co., Ltd., a wholly-owned subsidiary, is RMB 20 million. In the report period, the actual
amount of guarantee was RMB 10 million.
In our opinion, the Company was able to regulate external guarantee and control the risk of
external guarantee strictly according to the Articles of Association of the Company. The guarantee
provided by the Company to its wholly-owned subsidiaries in the report period was demanded by
the Company's production and operation and rational utilization of funds. The decision-making
procedure of guarantee was legal and reasonable and the interests of the Company and its
shareholders, especially middle and small shareholders, were not harmed.
Independent directors：Yang Jichao, Liu Xiangqing and Huang Hui
8. The Company's important contracts and their performance
On February 22,2008，The first provisional shareholders' general meeting of the Company in
2008 examined and adopted the Proposal Concerning Assignment of Company Assets. The
Company was approved to assign the use right of the land located in Nanling Village, Nanwan
Subdistrict, Longgang District, Shenzhen to Community Resident's Committee of Nanling Village,
Nanwan Subdistrict, Longgang District, Shenzhen at the price of RMB 35.6725 million (Refer to
No. 2008-04 and 2008-06 announcement of the Company for details). According to the contract,
the payment for assignment under the contract shall be made in four installments. The Company
received the first three installments in 2008. In the report period, the Company received the fourth
installment of the payment for land assignment, i.e., RMB 9.50217 million, according to the
contract. Net income from this assignment recognized in 2008 is RMB 12.80 million. So far, the
performance of this contract has been fully completed.
9. Commitments of the controlling shareholder
(1) Shenzhen Investment Holding Co., Ltd., the controlling shareholder, made the following
commitment at the time of the Company's share holding structure reform in September 2006: The
shares of the Company held by Shenzhen Investment Holding Co., Ltd. will not be
listed or traded within at least 24 months from the date of obtaining the right of listing
and negotiation. Within 12 months after the expiration of the said commitment period,
the proportion of the number of the original non-negotiable shares sold by it through
Shenzhen Stock Exchange to the total number of shares of Shenzhen Textile shall not
exceed 5%.
（2）In September 2008, Shenzhen Investment Holding Co., Ltd. promised as follows when
the first group of restricted shares were listed for trading after share holding structure reform:
I. The company temporarily did not have plan to sell unfrozen negotiable shares that accountfor 5% of total share capital through securities trading system within six months after unfreezing
of restricted shares. If the company planned to sell shares through securities trading system and
the quantity of shares to be sold within sixth month from the first sale reaches 5% of total share
capital, the company would publicly disclose prompting announcement of sale through the
Company within two trading days before the first sale;
II. The company would strictly abide by Guiding Opinions on Assignment of Unfrozen
Existing Shares of Listed Companies and relevant provisions of relevant transaction rules of
Shenzhen Stock Exchange.
In the report period, This commitment is being performed.
10. Shareholders holding more than 30% equity did not make or implement share purchase plan in
the report period.
11..In the report period, The Company did not make compensation for the earnings promised at
the time of the Company's implementation of share holding structure reform and significant asset
reorganization.
12. In the report period, The Company did not invest in securities.
13. Acceptance of investigation, communication and interview
The Company seriously implemented Working System for Reception and
Promotion， the Company strictly abode by the principle of fair information
disclosure in the work concerning relationship with investors according to the
requirements of Guidelines for Fair Information Disclosure of Listed Companies. The
Company communicated with investors in respect of its daily operation and
development prospect with public materials including periodical reports and relevant
announcements and did not selectively and privately disclose, reveal or divulge
non-public significant information to specific objects. Information disclosure was fair.
In the report period, no institutional investors came to investigate or interview the
Company. The Company answered over 20 calls of personal investors. The Company
communicated with the investors mainly in respect of the Company's operating status
and development prospect, the controlling shareholder's support to the Company's
business development and temporary suspension of listing of the Company.
Table for investigation, communication , interviewor other activities
Reception
date
Reception
plane
Reception
Mode
Reception
Object
Discussion issue and offered
information
January
1,2009-June
30,2009
The
Company
Telephone
Individual
Investment
Operating status and development
prospect of the Company, the
controlling shareholder's support to
the Company's business
development, etc.
April 16,2009 The
Company
Onsite
investigatio
n
Tianxiang
Investment
consultant
Co., Ltd.
Operating status of the Company
14. In the report period, the Company did not change the appointed certified public accountants.
15. In the report period, the Company, its board of directors and its directors were not investigated
by CSRC, administratively punished or publicly criticized by CSRC, punished by other
administrative departments or publicly condemned by stock exchange.
16. In the report period，there were no other important events that had material influence on the
Company.Section VII Subsequent events
1. On July 17, 2009,The procedure of industrial and commercial registration change of Shenzhen
Shenfang Lekai Photoelectronic Materials Co., Ltd. was settled.
2. As of August 14, 2009, the Company accumulatively sold 10,843,826 shares of Shenzhen
Victor Onward through trading system of Shenzhen Stock Exchange. The Company still holds
11,435,662shares of Shenzhen Victor Onward, which are all unrestricted negotiable shares and
account for 6.41% of total shares of Shenzhen Victor Onward. The above commitment is under
fulfillment.
Section VII Financial Report（Unaudited）
（I）Financial statements (Attached hereinafter)
1. Balance sheet
2. Profit statement
3. Cash flow statement
4. Change in owners’ equities
(II) Notes to financial statements(Attached hereinafter)
Section VIII Documents Available for Inspection
1. The text of Interim report bearing the signature of the chairman of the board of directors
2. The text of the financial report bearing the seal and signature of the person in charge of the
Company, controller of accounts and the person in charge of accounting organ;
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals
designated by China Securities Regulatory Commission in the report period;
4. The text of the Articles of Association of the Company.
The above documents were completely placed at the Office of the Company.
This report has been prepared in both Chinese and English. In case of any
discrepancy, the Chinese version shall prevail.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 20, 2009Attached I: Financial statements
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Balance sheet
Assets June 30，2009 December 31，2008
Current assets
Monetary funds
73,244,176.33 84,022,925.18
Trading financial
assets
-
-
Bill receivable
-
700,000.00
Account receivable
7,251,036.35 5,927,101.61
Prepayments
40,976,515.31 10,320,610.92
Interest receivable
-
-
Dividend receivable
-
-
Other receivable
11,077,172.45 31,869,860.76
Inventories
15,703,041.62 12,169,064.23
Non-current asset due in 1 year
-
-
Other current assets
-
-
Total of current assets 148,251,942.06 145,009,562.70
Non-current assets：
Disposable financial asset
88,984,107.50 41,203,383.82
Expired investment in
possess
-
-
Long-term receivable
-
-
Long term share equity
investment 107,345,501.25 112,611,211.91
Property investment 139,754,458.71 142,816,259.43
Fixed assets
80,701,238.30 83,916,970.31
Construction in progress
33,025,680.01 30,646,285.87
Engineering material
-
-
Fixed asset disposal
-
-
Production physical
assets
-
-
Gas & petrol
-
-
Intangible assets
5,684,102.64 5,914,236.00
R & D petrol
-
-
Goodwill
-
-
Long-germ expenses to
be amortized
792,233.10 1,038,191.17
Differed income tax asset
2,439,123.90 2,634,987.56
Other non-current asset
-
-
Total of non-current
assets 458,726,445.41 420,781,526.07
Total of assets 606,978,387.47 565,791,088.77Legal representative： Financial controller：The person in change of the financial Dept：
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Balance Sheet（Con）
Liabilities and owners’
equity
June30，2009 December31，2008
Current Liabilities
Short-term loans 35,000,000.00 46,000,000.00
Financial liabilities held for
trading
- -
Bill payable
- -
Accounts payable 33,869,139.57 18,859,027.41
Advance payment 3,631,700.05 11,475,644.76
Salaries payable to Staff 7,232,502.96 9,360,985.83
Taxes payable -12,322,326.49 1,657,766.12
Interests payable
- -
Dividends payable 9,835,447.80 5,000,000.00
Other payable 48,910,436.43 48,433,612.32
Non-current liabilities due
in 1 year
- -
Other current liabilities
- -
Total current liabilities 126,156,900.32 140,787,036.44
Non-Current liabilities:
Long-term loan
- -
Bonds payable
- -
Long-term payable
- -
Special payable 2,000,000.00 2,000,000.00
Accrued liabilities
- -
Deferred income tax
liabilities 14,869,209.07 5,776,755.82
Other Non-current liabilities
- -
Total Non-current
Liabilities 16,869,209.07 7,776,755.82
Total liabilities 143,026,109.39 148,563,792.26
Shareholders’ Equity
Share capital 245,124,000.00 245,124,000.00Capital surplus 105,291,407.05 68,921,594.03
Less: Shares in stock
- -
Surplus reserves 30,499,588.38 30,499,588.38
Reserved profit 83,037,282.65 72,682,114.10
Total attributable to equity
holders of the Parent
Company 463,952,278.08 417,227,296.51
Minority interest
- -
Total owners’ equity 463,952,278.08 417,227,296.51
Total liabilities and Owners’
equity 606,978,387.47 565,791,088.77
Legal representative： Financial controller： The person in change of the financial Dept：
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated profit Statement
January-June 2009
Items January-June 2009 January-June 2008
I. Total Operating income 184,999,096.82 143,304,675.67
Including：Operating income 184,999,096.82 143,304,675.67
II. Total Operating cost 176,384,919.71 128,716,286.55
Including：Operating cost 149,583,054.21 108,785,585.26
Operating taxes and extras
1,828,006.10 1,794,589.27
Sales expenses
6,183,378.01 6,424,993.35
Administrative expenses 18,523,183.47 20,445,940.73
Financial expenses
1,235,352.17 3,313,305.17
Loss of devaluation of assets
-968,054.25 -12,048,127.23
Add：Changing income of fair
value
-
-
Investment income 17,784,027.09 8,077,298.54
Including：Investment income on affiliated
company and joint venture
1,151,332.85 1,418,380.48III. Operating profit 26,398,204.20 22,665,687.66
Add：Non-operating income
853,452.70 17,637,001.35
Less：Non-operating expenses
27,914.65 351,754.84
Including：Disposal loss of non-current
assets
-
-
IV. Total profit 27,223,742.25 39,950,934.17
Less：Income tax expenses
4,612,373.70 7,087,598.37
V. Net profit 22,611,368.55 32,863,335.80
Net profit attributable to the Parent
company 22,611,368.55 33,287,478.38
Minority shareholders’ gain and
losses
-
-424,142.58
VI. Earnings per share
（i）Basic earning per share
0.09
0.14
（ii）Diluted earning per share
0.09
0.14
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Statement on changes of Consolidated owners’ equity
January-June 2009 Unit: RMB
Items
Owners’ Equity attributable to parent Company Minor
sharehol
ders’
equity
Total of
owners’
equity
Share capital Capital reserves
Less:
Shares
in stock Surplus reserves
Undistributed
profit Other
I. Balance at the end of last
year
245,124,000.00
68,921,594.03
30,499,588.38
72,682,114.10
-
417,227,296.
51
Add：Change of accounting
policy
-
-
-
-
-
-
-
-
Correcting previous
errors
-
-
-
-
-
-
II. Balance at the beginning
of current year
245,124,000.00
68,921,594.03
-
30,499,588.38
72,682,114.10
-
-
417,227,296.
51
III. Changed in the current
year
-
36,369,813.02
-
-
10,355,168.55
-
-
46,724,981.5
7
（i）Net profit
-
-
-
-
22,611,368.55
-
22,611,368.5
5
（ii）Gains losses accountedinto owners’ equity directly - 36,369,813.02 - - - - - 36,369,813.0
2
I. Change in fair value of
sellable financial assets net
-
36,369,813.02
-
-
-
36,369,813.0
2
2.Influence of change in
other owners’ equity of
invested enterprises on equity
basis
-
-
-
-
-
-
3.Influence of income tax
related to owners’ equity
items
-
-
-
-
-
-
4.Other
-
-
-
-
-
-
Total of (I) and (II)
-
36,369,813.02
-
-
22,611,368.55
-
-
58,981,181.5
7
（iii）Investment or
decreasing of capital by
owners
-
-
-
-
-
-
-
-
1.Investment by owners
-
-
-
-
-
-
2.Amount of shares paid and
accounted as owners’ equity
-
-
-
-
-
-
-
3.Other
-
-
-
-
-
-
-（IV）Profit allotment
-
-
-
-
-12,256,200.0
0
-
-
-12,256,200.
00
1.Providing of surplus
-
-
-
-
-
-
2.Allotment of the owners
-
-
-
-
-12,256,200.0
0
-
-12,256,200.
00
3.Other
-
-
-
-
-
-
（V）Internal transferring of
owners’ equity
-
-
-
-
-
-
-
-
1.Capitalzing of capital
reserves
-
-
-
-
-
-
2.Capitalzing of surplus
resaves
-
-
-
-
-
-
3.Making up losses by
surplus reserves
-
-
-
-
-
-
4.Other
-
-
-
-
-
-
IV. Balance at the end of this
term
245,124,000.00
105,291,407.05
-
30,499,588.38
83,037,282.65
-
-
463,952,278.
08
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Statement on changes of Consolidated owners’ equity
January-June 2008 Unit:RMB
Items
Owners’ Equity attributable to parent Company
Minor
shareholders’
equity
Total of owners’ equity
Share capital
Capital reserves
Less:
Share
s in
stock
Surplus
reserves
Undistributed
profit Other
I. Balance at the end of last
year
245,124,000.
00
61,016,141.46
26,179,878.63
31,009,266.53
82,284,279.66 445,613,566.28
Add：Change of accounting
policy
-
-
-
-
- -
-
-
Correcting previous
errors
-
-
-
-
-
-
II. Balance at the beginning
of current year
245,124,000.
00
61,016,141.46
-
26,179,878.63
31,009,266.53 -
82,284,279.66 445,613,566.28
III. Changed in the current
year
-
-
-
-
33,287,478.38 -
-80,928,756.00 -47,641,277.62
（i）Net profit
-
-
-
-
33,287,478.38
-424,142.58
32,863,335.80
（ii）Gains losses accounted
into owners’ equity directly
-
-
-
-
- -
-
-I. Change in fair value of
sellable financial assets net
-
-
-
-
-
-
2.Influence of change in
other owners’ equity of
invested enterprises on equity
basis
-
-
-
-
-
-
3.Influence of income tax
related to owners’ equity
items
-
-
-
-
-
-
4.Other
-
-
-
-
-
-
Total of (I) and (II)
-
-
-
-
33,287,478.38 -
-424,142.58
32,863,335.80
（iii）Investment or
decreasing of capital by
owners
-
-
-
-
- -
-80,504,613.42 -80,504,613.42
1.Investment by owners
-
-
-
-
-
-
2.Amount of shares paid and
accounted as owners’ equity
-
-
-
-
-
-
-
3.Other
-
-
-
-
-
-80,504,613.42 -80,504,613.42
（IV）Profit allotment
-
-
-
-
- -
-
-
1.Providing of surplus
-
-
-
-
-
-2.Allotment of the owners
-
-
-
-
-
-
-
3.Other
-
-
-
-
-
-
（V）Internal transferring of
owners’ equity
-
-
-
-
- -
-
-
1.Capitalzing of capital
reserves
-
-
-
-
-
-
2.Capitalzing of surplus
resaves
-
-
-
-
-
-
3.Making up losses by
surplus reserves
-
-
-
-
-
-
4.Other
-
-
-
-
-
-
IV. Balance at the end of this
term
245,124,000.
00
61,016,141.46
-
26,179,878.63
64,296,744.91 -
1,355,523.66 397,972,288.66
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Consolidated cash flow statement
January-June 2009
Unit：RMB
Items January-June 2009 January-June 2008
I. Cash flows arising from operating activities
Cash received from sales of goods and supply of
labor
183,409,938.54
210,245,247.88
Rebated taxes received
13,089,099.41
11,078,883.80
Other business related cash receipts
4,731,637.08
16,947,042.07
Subtotal of cash flow in from operating activity
201,230,675.03
238,271,173.75
Cash paid for purchase of goods and reception
of labor services
154,293,750.86
172,628,001.46
Cash paid to and for employees
16,644,934.34
17,013,894.63
Taxes paid
7,867,327.68
10,427,341.95
Other business related cash payments
9,582,719.50
9,618,534.47
Subtotal of cash flow out from operating
activity
188,388,732.38
209,687,772.51
Net cash flows arising from operating activities
12,841,942.65
28,583,401.24
II. Cash flow arising from investment activities
Cash received from recovery of investment
4,118,586.10
778,865.71
Cash received from investment income
17,090,628.61
6,530,450.56
Cash received from disposal of fixed assets, intangible asset
and other long-term assets
4,000.00
16,696,500.00
Proceeds from sale of subsidiaries and other operating units
-
-
Other cash received relating to investment activities
19,868,150.63
22,683,000.00
Sub total of cash inflows
41,081,365.34
46,688,816.27
Cash paid for acquiring fixed assets, intangible assets and
other long-germ assets
3,800,333.08
15,986,132.83Cash paid at investment
39,000,000.00
-
Net cash received from subsidiaries and other operational units
-
-
Other cash paid for investment activities
-
30,876,339.01
Subtotal of cash outflow due to investment
activities
42,800,333.08
46,862,471.84
Net cash flow generated by investment
-1,718,967.74
-173,655.57
III. Cash flow generated by financing
Cash received as investment
-
-
Including: Cash received as investment from minor
shareholders
-
-
Cash received as loans
60,000,000.00
46,000,000.00
Other financing –related cash received
-
-
Subtotal of cash inflow from financing activities
60,000,000.00
46,000,000.00
Cash to repay debts
71,000,000.00
96,100,000.00
Cash paid as dividend, profit, or interests
8,406,205.05
3,016,329.72
Other financing-related cash received
2,500,000.00
5,000,000.00
Subtotal of cash outflow due to financing activities
81,906,205.05
104,116,329.72
Net cash flow generated by financing
-21,906,205.05
-58,116,329.72
IV. Influence of exchange rate alternation on cash
and cash equivalents
4,481.29
-759.74
V. Net increase of cash and cash equivalents
-10,778,748.85
-29,707,343.79
Add: balance of cash and cash
equivalents at the beginning of term 84,022,925.18
124,908,748.97
VI. Balance of cash and cash
equivalents at the end of term 73,244,176.33
95,201,405.18
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Balance sheet
Assets June 30,2009 December 31,2008
Current assets
Monetary funds 25,445,553.32 35,807,908.88
Trading financial assets - -
Bill receivable - -
Account receivable - -
Prepayments 40,114,229.00 653,200.00
Interest receivable - -
Dividend receivable - -
Other receivable 34,220,894.19 53,365,895.02
Inventories - -
Non-current liabilities due in 1 year - -
Other current liabilities - -
Total current liabilities 99,780,676.51 89,827,003.90
Non-current assets
Disposable financial asset 88,984,107.50 41,203,383.82
Expired investment in possess - -
Long-term receivable - -
Long term share equity investment 181,356,549.02 186,622,259.68
Property investment 126,254,451.51 128,943,964.83
Fixed assets 37,524,804.57 38,817,216.62
Construction in progress 33,025,680.01 30,646,285.87
Engineering material - -
Fixed asset disposal - -
Production physical assets - -
Gas & petrol - -
Intangible assets 2,348,270.36 2,543,228.00
R & D petrol - -
Goodwill - -
Long-germ expenses to be amortized - -
Differed income tax asset 2,448,617.21 2,642,228.06
Other non-current asset - -
Total of non-current assets 471,942,480.18 431,418,566.88
Total of assets 571,723,156.69 521,245,570.78
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Balance sheet（Con）
Liabilities and owners’ equity June 30,2009 December 31,2008
Current Liabilities
Short-term loans 25,000,000.00 34,000,000.00
Financial liabilities held
for trading
-
-
Bill payable
-
-
Accounts payable
418,508.57 418,508.57
Advances from customers
492,847.78 639,024.58
Salaries payable to Staff
3,491,060.51 5,104,987.09
Taxes payable
1,427,747.98 346,846.03
Interests payable
-
-
Dividends payable
9,835,447.80 5,000,000.00
Other payable 60,535,749.53 61,837,867.20
Non-current liabilities due in 1
year
-
-
Other current liabilities
-
-
Total current liabilities 101,201,362.17 107,347,233.47
Non-Current liabilities:
Long-term loan
-
-
Bonds payable
-
-
Long-term payable
-
-
Special payable
-
-
Accrued liabilities
-
-
Deferred income tax
liabilities 14,869,209.07 5,776,755.82
Other non-currentliabilities - -
Total of Other non-current
liabilities 14,869,209.07 5,776,755.82
Total liabilities 116,070,571.24 113,123,989.29
Shareholders’ Equity
Share capital 245,124,000.00 245,124,000.00
Capital surplus 105,291,407.05 68,921,594.03
Less：Treasury stock
-
-
Surplus reserves 30,499,588.38 30,499,588.38
Reserved profit 74,737,590.02 63,576,399.08
Total attributable to equity
holders of the Parent Company 455,652,585.45 408,121,581.49
Total owners’ equity 455,652,585.45 408,121,581.49
Total liabilities and Owners’
equity 571,723,156.69 521,245,570.78
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Parent Company profit statement
January-June 2009
Items January-June 2009 January-June 2008
I. Operating income 25,226,206.22 24,470,479.35
Less：Operating Cost 1,686,680.50 2,195,047.91
Operating taxes and extras 1,234,988.15 1,156,423.21
Sales expenses 881,363.17 924,509.39
Administrative expenses 12,348,493.24 14,397,533.31
Financial expenses 796,695.65 2,530,253.80
Loss of devaluation of
assets -968,054.25 -11,955,846.50
Add：Changing income of fair
value
-
-
Investment income 17,322,196.14 6,489,981.85
Including：Investment income on affiliated
company and joint venture 1,151,332.85 1,418,380.48
II. Operating profit 26,568,235.90 21,712,540.08
Add：Non-operating income 755,455.70 17,612,936.05
Less：Non-operating expenses
- 300,000.00
Including：Disposal loss of non-current assets
-
-
III. Total profit 27,323,691.60 39,025,476.13
Less：Income tax expenses 3,906,300.66 6,521,468.35
IV. Net profit 23,417,390.94 32,504,007.78
V. Earnings per share
（i）Basic earning per share
0.10
0.13
（ii）Diluted earning per share
0.10
0.13
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Statement on changes of parent company owners’ equity
January-June 2009 Unit: RMB
Items Share capital Capital reserves
Less:
Shares in
stock Surplus reserves Undistributed profit Total of owners’ equity
I. Balance at the end of last year 245,124,000.00 68,921,594.03 30,499,588.38 63,576,399.08 408,121,581.49
Add：Change of accounting policy - - - - -
-
Correcting previous errors - - - - -
-
II. Balance at the beginning of current year 245,124,000.00 68,921,594.03 - 30,499,588.38 63,576,399.08 408,121,581.49
III. Changed in the current year - 36,369,813.02 - - 11,161,190.94 47,531,003.96
（i）Net profit - - - - 23,417,390.94 23,417,390.94
（ii）Gains losses accounted into owners’ equity
directly - 36,369,813.02 - - - 36,369,813.02
I. Change in fair value of sellable financial assets net - 36,369,813.02 - - - 36,369,813.02
2.Influence of change in other owners’ equity of
invested enterprises on equity basis - - - - -
-
3.Influence of income tax related to owners’ equity
items - - - - -
-
4.Other - - - - -
-
Total of (I) and (II) - 36,369,813.02 - - 23,417,390.94 59,787,203.96（iii）Investment or decreasing of capital by owners - - - - -
-
1.Investment by owners - - - - -
-
2.Amount of shares paid and accounted as owners’
equity - - - - -
-
3.Other - - - - -
-
（IV）Profit allotment - - - - -12,256,200.00 -12,256,200.00
1.Providing of surplus - - - - -
-
2.Allotment of the owners - - - - -12,256,200.00 -12,256,200.00
3.Other - - - - -
-
（V）Internal transferring of owners’ equity - - - - -
-
1.Capitalzing of capital reserves - - - - -
-
2.Capitalzing of surplus resaves - - - - -
-
3.Making up losses by surplus reserves - - - - -
-
4.Other - - - - -
-
IV. Balance at the end of this term 245,124,000.00 105,291,407.05 - 30,499,588.38 74,737,590.02 455,652,585.45
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Statement on changes of parent company owners’ equity
January-June 2008 Unit: RMB
Items Share capital Capital reserves
Less: Shares in
stock Surplus reserves Undistributed profit
Total of owners’
equity
I. Balance at the end of last year 245,124,000.00 60,487,826.17 26,179,878.63 18,577,620.12
350,369,324.92
Add：Change of accounting policy - 528,315.29 -
- 6,121,391.18
6,649,706.47
Correcting previous errors - - -
- -
-
II. Balance at the beginning of current year 245,124,000.00 61,016,141.46 - 26,179,878.63 24,699,011.30
357,019,031.39
III. Changed in the current year - -5,497,521.92 -
- 32,504,007.78
27,006,485.86
（i）Net profit - - -
- 32,504,007.78
32,504,007.78
（ii）Gains losses accounted into owners’ equity directly - -5,497,521.92 -
- -
-5,497,521.92
I. Change in fair value of sellable financial assets net - -5,497,521.92 -
- -
-5,497,521.92
2.Influence of change in other owners’ equity of invested enterprises
on equity basis - - -
- -
-
3.Influence of income tax related to owners’ equity items - - - -1
- -
4.Other - - -
- -
-
Total of (I) and (II) - -5,497,521.92 -
- 32,504,007.78
27,006,485.86
（iii）Investment or decreasing of capital by owners - - -
- -
-
1.Investment by owners - - -
- -
-
2.Amount of shares paid and accounted as owners’ equity - - -
- -
-
3.Other - - -
- -
-
（IV）Profit allotment - - -
- -
-
1.Providing of surplus - - -
- -
-
2.Allotment of the owners - - -
- -
-
3.Other - - -
- -
-
（V）Internal transferring of owners’ equity - - -
- -
-
1.Capitalzing of capital reserves - - -
- -
-
2.Capitalzing of surplus resaves - - - -2
- -
3.Making up losses by surplus reserves - - -
- -
-
4.Other - - -
- -
-
IV. Balance at the end of this term 245,124,000.00 55,518,619.54 - 26,179,878.63 57,203,019.08
384,025,517.25
Legal representative： Financial controller： The person in change of the financial Dept：Shenzhen Textile (Holdings) Co., Ltd.
Parent Company cash flow statement
January-June 2009
Unit：RMB
Items January-June 2009
January-June
2008
I.Cash flows arising from operating activities
Cash received from sales of goods and supply of labor 22,298,288.74 23,395,859.30
Rebated taxes received
-
-
Other business related cash receipts
4,034,650.71
31,597,015.50
Subtotal of cash flow in from operating activity
26,332,939.45
54,992,874.80
Cash paid for purchase of goods and reception of labor
services
2,006,353.14
2,867,980.50
Cash paid to and for employees
5,445,829.00
6,640,439.67
Taxes paid
3,863,416.84
5,897,200.80
Other business related cash payments
4,013,315.95
12,512,831.92
Subtotal of cash flow out from operating activity
15,328,914.93
27,918,452.89
Net cash flows arising from operating activities
11,004,024.52
27,074,421.91
II. Cash flow arising from investment activities
Cash received from recovery of investment
4,118,586.10
778,865.71
Cash received from investment income
16,628,797.66
6,806,450.56
Cash received from disposal of fixed assets, intangible asset
and other long-term assets
-
16,669,000.00
Proceeds from sale of subsidiaries and other operating units
-
-
Other cash received relating to investment activities
19,868,150.63
22,683,000.00
Sub total of cash inflows
40,615,534.39
46,937,316.27
Cash paid for acquiring fixed assets, intangible assets and
other long-germ assets
3,399,317.22
15,658,684.39
Cash paid at investment
39,000,000.00
-
Net cash received from subsidiaries and other operational units
-
-
Other cash paid for investment activities1
- -
Subtotal of cash outflow due to investment activities
42,399,317.22
15,658,684.39
Net cash flow generated by investment
-1,783,782.83
31,278,631.88
III.Cash flow generated by financing
Cash received as investment
-
-
Including: Cash received as investment from minor
shareholders
-
-
Cash received as loans
50,000,000.00
34,000,000.00
Cash received from bond placing
-
-
Other financing –related ash received
-
-
Sub-total of cash inflow from financing
activities
50,000,000.00
34,000,000.00
Cash to repay debts
59,000,000.00
84,000,000.00
Cash paid as dividend, profit, or interests
8,087,078.54
2,536,545.00
Including: Dividend and profit paid by subsidiaries
to minor shareholders
-
-
Other financing-related cash received
2,500,000.00
5,000,000.00
Subtotal of cash outflow due to financing activities
69,587,078.54
91,536,545.00
Net cash flow generated by financing
-19,587,078.54
-57,536,545.00
IV. Influence of exchange rate alternation on cash and cash
equivalents
4,481.29
-
V. Net increase of cash and cash equivalents
-10,362,355.56
816,508.79
Add: balance of cash and cash equivalents at the
beginning of term 35,807,908.88 51,415,565.66
VI. Balance of cash and cash equivalents at the
end of term 25,445,553.32 52,232,074.45
Legal representative： Person in change of accounting dept： Accounting Supervisor：2
Attached II. Notes to financial statements
Shenzhen Textile (Holdings)Co., Ltd.
Notes to financial statements
Unit：RMB
Note 1.Basic Information of the Company
(1). History
The company was previously the Shenzhen Textile Industry Company, on April 13,
1994, approved by the Letter(1114)No.15 issued by Shenzhen Municipal People's
Government, the Company was restructured and named as Shenzhen Municipal
Textile (Group) Co., Ltd. In the same year, approved by the (1994) No.19 file of
Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The
Company has got the corporate business certification of Shensizi N246747, by June
30, 2008, the registered capital of the Company was RMB 245,124,000.00.
Business scope of the Company:
(2) The industries the Company belongs to
Textile industry.
(3). Business Scope of the Company
Manufacturing textiles, knitwears, garments, decorative cloth belts, trademark belts,
bicycles, crafts, and special equipments for textile industry, textile equipments and
accessories, meters, standard parts, leather products, textile raw materials, dyes,
electronics, cereals, oils and food; in the range of obtaining lawful land use right, the
Company also engaged in individual real estate development and management;
organizing exhibitions; import and export trading business according to the
regulations in Shenmaoguan Shenzhengzi No.034 File.
(4) The main products or services of the Company
Textiles and housing rent
(5). The reporting person of the approval of financial statements and the reporting
date of the approval of financial statements.
The reporting person of the approval of financial statements of the company: Board of
Directors of the Company
the reporting date of the approval of financial statements of the Company:August 18,
20093
Note 2. Basis for the preparation of financial statements
On the basis of continuous operation, in accordance with actual transactions and
events, the Company carried out confirmation and measurement according to
Accounting Standards for Business Enterprises (hereinafter referred to the old
accounting standards) and enterprise accounting system, on the basis of it, the
Company prepared the financial statements.
Note 3. Statement on complying with corporate accounting standards
The Company declared: the financial statements of the Company complied with
"Accounting Standards for Business Enterprises" and its application guidelines and
the relevant requirement in information disclosure standards, and have truely,
completely reflects the company's financial position, operation results, cash flow, and
other relevant information.
Note 4. Significant accounting policies, accounting estimates and early errors
1. Fiscal year
A calendar year, that is, from January 1 to December 31 is a fiscal year.
2. Accounting standard money
Accounting standard money is RMB.
3. Accounting basis and accounting measurement attribute
Accounting basis: right&duty accurrence system; accounting measurement attribute:
measured according to history costs, if the accounting elements can be reliably
identified according to replacement cost, realisable net value, current value, fair value,
they can be measured by the corresponding measurement attributes.
4. Method for foreign currency accounting
(1). For the foreign currency business, it should be accounted according to the
standard money accounted according to the spot rate. At the period end, adjust the
foreign currency business according to the spot rate on the balance sheet date, all the
exchange differences should be included in the current loss and gain accept that the
business is relating to purchase and production of assets which meet the capitalization
conditions.
(2) The subsidiaries of the company whose stardard currency was foreign currency, all
asset and liability items should be converted into the standard money of parent
company according to the spot rate on the balance sheet date, and all the owners’
equity items, accept for "retained profits", should be converted into the standard
money of parent company according to the spot rate on the balance sheet date. The
income and cost items in the profit statement should be converted into the standard
money of parent company according ot the spot rate during the period of
consolidating financial statements. The conversion differences due to different
exchange rate, should be reflected by opening the "foreign currency conversion4
difference statements" in RMB. And open the "foreign currency statements
conversion differences" in cash flow statement in RMB.
5. Standards for determing cash equivalents
Standards for determing cash equivalents are the investments which have short
duration and strong mobility and are easy to be converted into cash and value.
6. Methods for accounting financial assets
(1) Classification of financial assets:
Financial assets can be divided into: the financial assets which measured by fair value
and its changes are included in the current loss and gain (including transactional
financial assets and the financial assets which measured by fair value and its changes
are included in the current loss and gain), the expired investments, loans and
receivables held, and financial assets to be sold, the four categories;
(2) Measurement of financial assets
A. The initial recognition financial assets are accounted in accordance with fair values.
For the financial assets which measured by fair value and its changes are included in
the current loss and gain, the relevant transactional costs should be included in the
current loss and gain; for other financial assets, the relevant transactional costs should
be included in the initial recognition amount.
B. The Company makes follow-up measurement on financial assets according to fair
value, the transactional cost to deal with the financial assets which may happen in the
future will not be deducted. But, except the following situations:
(a). The expired investments, loans and receivables held, should be measured
according to amortized costs by the actual interest method.
(b). The equity tool investments which do not have quotation in market and their fair
value can not be reliably measured, and the derivative financial assets which are
related to the equity tool and are to be delivered to the equity tool to account, should
be measured according to costs.
(3) Determination of fair value of financial assets:
A, The financial assets which exist in the market, the quotation in the market will be
determined as fair value;
B, The financial assets which do not exist in the market, adopt valuation techniques to
determine the fair value. The results by the valuation techniques show the transaction
prices which may be used in fair transactions on the valuation day.
(4). Impairment of financial assets:
On the balance sheet date, carry out inspection on the book value of financial assets
which are not included in the financial assets measured according to fair value and its
changes are include in the current loss and gain. If there are objective evidence
showing that the financial assets have impairment, the provision for impairment
should be accounted. The objective evidences which show the impairment of financial
assets include the following items:
A. The issuing party or the debtor had serious financial difficulties;
B. The debtor violated the terms in the contract, such as the payment of interest or
principal had default or delayed;
C. For the consideration in economy and law, the Company made concessions to the5
debtor in difficulties;
D. The debtor was likely to collapse or carry out other financial restructuring;
E. The issuing party had major financial difficulties, and the financial assets can not
be traded in market;
F. The debtor had major adverse changes in technology, market, economic and legal
environment, and the Company was may not be able to recover the investment costs;
G. The fair values of the equity tool investments had serious and non-temporary
decline;
H. Other objective evidences which show the impairment of financial assets.
(5). Measurement of impairment losses of financial assets:
A. The financial assets measured according to fair value and its changes are include in
the current loss and gain require no test of impairment;
B. The measurement of impairment loss of expired investments: account provision for
impairment according to the difference of the value of future cash flow lower than the
book value;
C. Measurement of impairment loss of receivables: if the amount is large, conduct
individual impairment test, account provision for impairment according to the
difference of the value of future cash flow lower than the book value; if small
receivables and the receivables found no impairment after the individual test, account
provisions for impairment according to the nature of the receivables by the method of
account age, the proportions to be accounted according to account age are as follows:
Age Proportion %
Within 1 year 5%
1-2 years 10.00%
2-3 years 30.00%
Over 3 years 50.00%
If the difference between the future cash flow of the receivable and its current value is
small, when determine the relevant impairment loss, do not make discount on its
future cash flow.
D. Judgment of impairment of the financial assets for sale: if the fair value of the financial asset is
decreasing continuously and the decline is not temporary, the occurrence of the impairment of the
financial asset will be recognized. When the financial asset for sale had impairment, even if the
asset is not finally determined, the accumulated loss, originally included in the owners’ equity and
formed due to the decline of fair value should be converted out and included in the current loss
and gain. The accumulated loss converted out can be the initial cost of the financial assets for sale
deducting the amount recovered and the amount amortized, current fair value and the balance of
the impairment loss originally included in loss and gain.
7. Accounting methods of inventory
(1). Inventory classification
Inventory can be divided into five categories: raw materials, materials commissioned
to process, products, finished products, working materials;6
(2). Valuation and amortization of the inventory issued
All inventories are priced according to their actual purchasing costs, when issue the
inventory, adopt the weighted average method to valuate; the working materials will
be amortized by the method of one-time amortization when they are issued.
(3). Inventory system and methods for accounting provision for devaluation of
inventory.
Inventory system adopts the perpetual inventory method; at period end, on the basis of
comprehensive checking on inventories, all or part of the damaged and old inventories,
the part that the realizable value lower than the cost, the provision for devaluation of
inventory should be accounted. The amount is determined according to the difference
of the cost of individual inventory item higher the realizable net value.
(4). Methods for determination of realizable net value of inventory.
Realizable net value of inventory is determined according to the estimated selling
price minus estimated cost, the estimated selling cost and relevant taxes.
8 Methods for accounting long-term equity investment
(1). Long-term equity investment is accounted according to its initial investment cost;
(2) According to different situations, the Company adopts the methods of cost and
equity to account long-term equity investments;
A. The long-term equity investment of the subsidiaries that have controlling right on
the invested units, should be accounted by cost method in parent company, when
prepare the consolidated statements, adjust it by equity method. If the parent uses the
cost method to account, the current investment income should be determined when the
company allocates profit or cash dividends;
B. The long-term equity investments which have no joint control or significant
influence on the invested unit, and have no quotation in market, and its fair value can
not be reliably accounted, should be accounted by cost method, and the current
investment income should be determined when the company allocates profit or cash
dividends;
C. The long-term equity investments which have joint control or significant influence
on the invested unit, should be accounted by equity method; the net loss or gain
realized from the invested unit at period end will be determined as the current
investment income (when determine the net loss of the invested unit, deduct the book
value of the investment and the long-term equity of net investment in the invested unit,
until zero);
D. If the initial investment cost to obtain the long-term equity investment and its fair value of the
identifiable net assets in the invested company have difference, and if the difference is in debit, the
initial investment cost of the long-term equity investment will not be adjusted; if the difference is
in credit, it should be included in the current loss and gain; for the long-term investment obtained
from corporate merger under different controls, the difference between the merger cost and the
fair value of identifiable net assets obtained from the merger, should be confirmed as goodwill or
be included in the current loss and gain;
(3). Provision for impairment of long-term equity investment
The impairment of long-term equity investment should be treated according to regulations of asset
impairment in 14.7
9. Measurement model of investment property
(1). Scope of investment real estate: refers to the real estate for rent or for capital
appreciation or for both of them, including the rented land use rights, the land use
rights held and to transferred, and the leased building;
(2). initial measurement of investment real estate: conduct initial measurement in
accordance with the cost to obtain it;
(3). Follow-up measurement of investment real estate: the Company conducts
follow-up measurement on the investment real estate by cost model; the follow-up
expenditure relating to investment real estate, if the related profit is likely to flow into
the company and can be measured, then it should be included in the cost of the
investment real estate, other follow-up expenditures should be recognized as the
current loss and gain;
(4) The classification, depreciation and amortization policies of real estate
investments and the depreciation and amortization policies of fixed assets and
intangible assets should be coherent.
(5). Provision for impairment of investment real estate should be treated according to
14 Regulations for asset impairment.
10. Confirmation conditions, classification, measurement basis and impairment policy
of fixed assets
(1). Confirmation conditions of fixed assets
The tangible assets held for producing goods, providing services, rent or operation,
and the service time is longer than one fiscal year.
(2). Measurement basis of fixed assets
All fixed assets should be conducted initial measurement in accordance with the
actual cost to obtain them.
(3). Classification and depreciation policy of fixed assets
Depreciation of fixed assets uses the straight-line method, the accrued depreciation
minus the net residual value (4.00% of the original value of the fixed assets), then
account the devaluation by the classified depreciation rate. The classification of fixed
assets, service life and year depreciation rate of fixed assets are as follows:
Classification of fixed
asset
Service life（year） Year depreciation rate
House and Building
–Production
35 2.74%
House and Buildin-Non-
Production
40 2.40%
Fixed assets decoration 10 10.00%8
Classification of fixed
asset
Service life（year） Year depreciation rate
Machinery and
equipment
10-14 9.60%-6.86%
Transportation equipment 8 12.00%
Electronic Equipment 8 12.00%
Other equipment 8 12.00%
At the end of each year, conduct review on service life, predicted net residual and depreciation
methods of the fixed assets. If the predicted service life is different from the originally estimated
service life, adjust the service life of the fixed assets; if the predicted net residual amount is
different from the originally estimated amount, adjust the predicted net residual value.
(4) Provision for impairment of investment real estate should be treated according to 14
Regulations for asset impairment.
11. Methods for accounting projects under construction, Methods for accounting provision for
impairment of projects under construction.
(1). Methods for accounting projects under construction.
The projects under construction include pre-construction preparations, the building projects under
construction, installation projects, technical transformation projects and overhaul works, etc. The
projects under construction should be accounted according to actual expenditures by items, and
should be converted to fixed assets when the projects reached the predicted use state. The costs for
borrowing relating to projects under construction (including loan interests, excess discount
amortization, exchange gains and losses, etc.), which should be included in the cost before the
related projects reach the predicted use state, and included in the current financial cost after the
related projects reach the predicted use state;
(2). Provision for impairment of investment real estate should be treated according to 14
Regulations for asset impairment.
12. Valuation of intangible assets and amortization policy
(1). Intangible asset refers to the non-monetary assets owned or controlled by a company with no
identifiable physical forms, including proprietary technology, right to use land;
(2). Intangible asset is valuated according the actual cost to obtain it;
(3). For the intangible assets with definite service life, since the availability of the intangible assets,
they should be amortized by straight-line method within the service life, and included in the
current loss and gain; the intangible assets with no definite service life will not be amortized; the
company should conduct review on the service life and amortization methods of the intangible
assets at the end of the year, if the service life and amortization methods are inconsistent with what
estimated previously, then the amortization period and amortization methods should be changed.
(4). Provision for impairment of investment real estate should be treated according to 14
Regulations for asset impairment.
13. Amortization policy of long-term deferred expense
(1). Long-term deferred expenses refer to all the expenses which should be amortized in the9
current period and in the future periods and the amortization period is longer than one year;
(2). Long-term deferred expense is valuated according to actual cost, the installation cost should
be equally amortized during two major overhauls or the contract period (depends on which is
shorter), other long-term deferred expenses should be equally amortized according to the benefit
period of the project. For the long-term deferred expenses which can not bring predicted profit in
the future accounting period, all the unamortized value should be converted to the current loss and
gain.
14. Basis and methods for accounting provision for impairment of assets
(1). Scope of impairment testing
At the end of the reporting period, impairment tests should be conducted on the goodwill formed
from corporate merger and the uncertain intangible assets regardless of whether there are
indications of impairment. In addition, impairment tests should be conducted on the following
assets which there are indications of impairment:
A. The market value of assets decreased significantly in the current period, the decline was
significantly higher than the normal decline.
B. The economic, technical or legal environments of the company the market of the assets may
have major changes in the current period or in near future, which have an adverse impact on the
company.
C. Market interest rates or other market return rates of in the current period has raised, thus affect
the company to account assets and to predict the discounting rate of future cash flow value, thus
resulting in significant reduction in the amount of recoverable assets.
D. If there is evidence showing that the assets have been outdated or actully has been damaged.
E. The assets have been or will be idled, ended to use or planned to dispose ahead of schedule.
F. There is evidence of internal report showing that economic performance of the assets has been
or would be lower than what expected, for example, the net cash flow created by assets or the
operating profits realized (or losses) are far below (or above) the estimated amount.
G. Other indications showing the signs of impairment.
(2). Recognition of asset impairment loss.
Asset impairment loss is determined according to the difference of the expected recoverable
amount of assets lower than their book values.
(3). Methods for determination of expected recoverable amounts
Either the net amount of fair value of assets minus disposal costs or the current value of predicted
future cash flow will be determined as the recoverable amount, depending on which is higher.
(4) If there are indications showing the possible impairment of an asset, its recoverable amount
should be estimated by basing on the individual asset. If the recoverable amount is hard to
estimate, the asset group the asset belongs to will be the basis to determine the recoverable amount
of the asset group.
15. Method for accounting financial liabilities
(1) Classification of financial liabilities
Financial liabilities can be divided into: the financial liabilities which measured by fair value and
its changes are included in the current loss and gain (including transactional financial liability and
the financial liability which measured by fair value and its changes are included in the current loss
and gain), and other financial liability;
(2) Measurement of financial liabilities10
A. The initial recognition of financial liability is accounted in accordance with fair values. For the
financial assets which measured by fair value and its changes are included in the current loss and
gain, the relevant transactional costs should be included in the current loss and gain; for other
financial liabilities, the relevant transactional costs should be included in the initial recognition
amount.
B. The Company makes follow-up measurement on financial assets according to method of actual
interest, but, except the following situations:
(a).The financial liability measured by fair value and its changes are included in the current loss
and gain, should be measured according to fair value, but the transactional cost may happen in the
future to settle the financial liability will not be deducted.
(b). The equity tool which do not have quotation in market and their fair value can not be reliably
measured, and the derivative financial liabilities which need to deliver the equity to settle, should
be measured according to their costs
(c).The financial guarantee contracts of financial liabilities which are measured by fair value and
its changes included in the current loss and gain, or the loan commitments which are not measured
by fair value and its changes included in the current loss and gain, follow-up measurement should
be conducted according to which is higher in the following two items after the initial confirmation:
the amount determined in accordance with "Accounting ① Standards for Business Enterprises No.
13 – contingent events"; ② the balance of the initial confirmation amount deducting the
cumulative amortized amount determined in accordance with "Enterprise Accounting Standard No.
14 - income".
16. Method for accounting of predicted liabilities
(1). The liabilities which are relevant to contingent events and meet the following conditions at the
same time, the Company recognizes it as predicted liabilities: the liability is the current obligation
the company undertakes; the performance of the liability may result in the outflow of economic
interests; the amount of the liability can be reliably measured;
(2). If the predicted liability to be fully or partly paid by the company and be compensated by the
third party, the compensation amount can be recognized as assets individually only when it can be
basically recovered, at the same time, the compensation on the asset should not be more than the
corresponding book amount of the predicted liability.
17. Principle for revenue recognition
(1). Revenue from goods sale
After the risks and rewards of the goods are transferred to the buyer, the company will no longer
conduct the management right and the actual control right, and the relevant incomes have been
received or the documents of receiving have been obtained, and the cost of the goods can be
reliably measured, the realization of the revenue should be confirmed.
(2). Revenue from service
In the same fiscal year and the service has been completed, the income should be confirmed upon
the completion of the service; If the starting and completion of the service belong to different
fiscal year, then when the service can be reliably measured, the service income should be
confirmed at the period end according to the percentage of the service not completed.
(3). Incomes from transferring asset use right.
Incomes from transferring asset use right include interest income and income from use payment;
The amount of interest income, is determined in accordance with the time and actual interest rate;11
the income from use payment is determined according to the time and method of relevant contract
and agreement.
18. Method for accounting of borrowing costs
(1). The borrowing expenses, if they comply with the capitalization conditions, should be
capitalized and included in the cost of relevant assets; other borrowing expenses, should be
determined according to the amount occurred and be included in the current loss and gain. If the
borrowing expenses meet the following conditions at the same time, they should be capitalized:
A. Capital expenditures have already occurred, capital expenditures include the expenditures paid
by cash, transferring non-cash assets or by bearing interest-debt;
B. The borrowing costs have occurred;
C. The construction to make the asset to reach the intended use state or sale state, or the production
activities have already begun.
(2). When the assets which meet the capitalization condition reach the intended use or sale state, the
capitalization of the borrowing expenses should be stopped. The borrowing expenses for the assets
which meet the capitalization conditions and reach the intended use or sale state, the expenses
should be confirmed according to the amount occurred, and be included in the current loss and gain.
19．Enterprise merger
(1) Enterprise merger under same control
For the enterprise merger under same control, the assets and liabilities obtained by the merging
party from enterprise merger was measured according to book value of the merged party on the
merger date. The capital reserve was adjusted according to the deference between the book value of
net assets obtained by the merging party and the book value of merger price paid (or the total book
value of shares issued); if capital surplus was not big for the offset, the retained earnings should be
adjusted.
(2）Enterprise merger under different control
For the enterprise merger under same control, the merger cost was the assets for the obtaining the
control right of the party being purchased on the purchase date, the liabilities happened or
undertook and the fair value of the equity securities. For the enterprise merger realized through a
number of transactions, the merger cost was the sum of all individual transaction. All the direct
costs and related costs for the enterprise merger were included in the cost of enterprise merger. The
purchase date referred to date that the company had the control right of the party being purchased.
The difference between merger cost over the fair value of identifiable net value
obtained from the merger should be confirmed as goodwill. The difference between the
identifiable net assets of the party being purchased obtained in the merger and the
amount of identifiable net assets of the party being purchased obtained in the merger
should beincluded in the loss and gain of the current period.
20. Accounting treatment methods of income tax
The accounting treatment of income tax of the company should adopt the method of balance sheet.
If the book value of the asset is bigger than its tax basis or the book value of the liability is smaller its
tax basis, the deterred income tax asset produced should be confirmed; If the book value of the asset is
smaller than its tax basis or the book value of the liability is bigger its tax basis, the deterred income tax
liability produced should be confirmed;12
21. Methods for the compilation of consolidated financial statements
(1) The consolidated financial statements should be based on the financial statement of the
subsidiaries included in the consolidated financial statement and other relevant data, the long-term
equity investment of the subsidiary should be adjusted according to the equity methods, all the
investments and transactions of the subsidiary included in the consolidated financial statement
should be offset completely, and compiled by accounting loss and gain of minority shareholders
and equity of minority shareholders.
(2). Upon the consolidation, if the accounting policy of the subsidiaries and the company are
inconsistent, it should be compiled according to the accounting policy of the company.
22. Principal accounting policies, estimates and errors of previous period
As Shenzhen Shenfang Lekai Photoelectronic Materials Co., Ltd., Anhui Huapeng Textile Co., Ltd.
and Shenzhen Jingguang Footwear Co., Ltd. fell out of consolidation scope as mentioned in Note
VI (2), long-term equity investment was accounted for on basis of equity instead of cost and
retained earnings and capital reserve of the parent company at beginning of period was
retroactively adjusted by RMB 6,121,391.18 and RMB 528,315.29. According to relevant
provisions of contracting agreement, the book cost of long-term investment in Anhui Huapeng
Textile Co., Ltd. accounted for on equity basis at beginning of current period was accounted for as
initial investment cost and this long-term investment was continuously accounted for on cost basis.
Shenzhen Jingguang Footwear Co., Ltd. has entered liquidation procedure. The book cost of
long-term investment in this company accounted for on equity basis at beginning of current period
was accounted for as initial investment cost and this long-term investment was continuously
accounted for on cost basis. The said change does not affect the consolidated retained earnings at
beginning of period and consolidated profit;
(3) Except the above-mentioned, there are no other change of accounting policies and accounting
estimate and significant errors for the previous period.
Note 5. Taxes of the Company
Taxes Tax references Applicable tax ratesv
VAT Incomes from product sales 13.00%、17.00%
Business tax.
Providing labor services, real estate
sales, the transfer of intangible assets
3.00%、5.00%
City construction tax VAT, sales tax, turnover tax, etc 5.00%、1.00%
Business income tax Taxable income 18.00%
Note 6. Consolidation scope of the Company
1. Important information of subsidiaries.13
Company names Register
ed Place
Registered
capital
Proportio
n
Main businesses
Shenzhen Jinlan Decorative
Articles Industrial Co., Ltd.
Shenzhen 4,000,000.00 100.00% Furnishing fabrics, bedding,
clothing
Shenzhen Lisi Industrial Co.,
Ltd
Shenzhen 2,360,000.00 100.00% Domestic business, material supply
and marketing industry
Shenzhen Huaqiang Hotel. Shenzhen 10,005,300.00 100.00% Accommodation, restaurants,
business centre
Shenfang Property
Management Co., Ltd.
Shenzhen 1,604,000.00 100.00% Property management
Shenzhen Beauty Century
Garment Co., Ltd.
Shenzhen 25,000,000.00 100.00% produce full electronic jacquard
molding knitted apparel
Shenzhen Zhongxing Fibre
Folds Cotton Clothing Ornament
Co., Ltd.
Shenzhen 1,680,000.00 75.00% Acupuncture cloth, and fusible
Interlining products
Jiangxi Xuanli Yarn Industry
Co., Ltd.
Jangxi 20,000,000.00 63.87% produce and operate man-made
fibres, color embroidery threads
Shenzhen Shenfang Import and
Export Co., Ltd.
Shenzhen 5,000,000.00 100.00% Operate import and export
businesses
Shenzheng Tianlong Industry and
trade Co., Ltd.
Shenzhen 1,900,000.00 81.93% Operate import and export
businesses
2. The subsidiaries not included in the consolidation.
Company names Regist
ered
Place
Registered capital Proportio
n
Main businesses Causes of
consolidation
Hongkong Dahong
International Co., Ltd. HK HKD10,000.00 100.00%
Import and export
trade
Bas entered
liquidation
proceedings14
Shenzhen Fengsheng
Garment Co., Ltd.
Shenzh
en
HKD6,670,000.00 100.00% Various fabrics
for garments,
fabrics and
materials
Assignment
contract has been
signed. Relevant
procedure of
industrial and
commercial
registration
change is being
handled.
Shenzhen Jingguang
Footgear Industry Co., Ltd.
Shenzh
en
7,200,000.00 70.00% Various Socks
and sports
shoes
Bas entered
liquidation
proceedings
Note 7. Statement of major events in consolidated financial statements
1. Currency funds
Items
2009-6-30 2008-12-31
Original currency
Exchan
ge rate RMB Original currency
Exchan
ge rate RMB
I. Cash
RMB 366,896.58 1.00 366,896.58 130,983.59 1.00 130,983.59
HKD 18,996.25 0.88 16,716.70 54,478.42 0.84 45,996.54
USD 13,234.05 6.83 90,388.56 18,009.13 6.61 119,047.96
Subtotal --- --- 474,001.84 --- --- 296,028.09
II.Bank deposit
RMB 71,180,827.09 1.00 71,180,827.09 79,374,291.39 1.00 79,374,291.39
HKD 1112,032.32 0.88 98,588.44 124,026.99 0.84 104,182.67
USD 18,119.00 6.83 123,752.77 1,001.20 6.61 6,617.9515
Items
2009-6-30 2008-12-31
Original currency
Exchan
ge rate RMB Original currency
Exchan
ge rate RMB
Euro --- --- --- 0.85 11.15 9.48
Subtotal --- --- 71,403,168.30 --- --- 79,485,101.49
III. Other capital
RMB 1,367,006.19 1.00 1,367,006.19 4,241,795.60 1.00 4,241,795.60
USD
Japanese Yen
Subtotal --- --- 1,367,006.19 --- --- 4,241,795.60
Total --- --- 73,244,176.33 --- --- 84,022,925.18
There were no other funds that have potential risks from mortgage or freezing in the year
balance of currency funds
2. Bill receivable
Summary 2009-6-30 2008-12-31
Bank acceptance --- 700,000.00
Trade acceptance --- ---
Total --- 700,000.00
3. Accounts receivable
(1). Accounts receivable at different levels are as follows:
Items
2009-6-30
Book balance Provision for bad debts
Amount Proportion（%） Amount Proportion（%）
Receivables with large
individual amount. 3,600,648.72 24.37% 180,032.44 2.39%
Receivables without large
individual amount, but with
great risk after combined 1,811,334.89 12.26% 1,811,334.89 24.07%16
Items
2009-6-30
Book balance Provision for bad debts
Amount Proportion（%） Amount Proportion（%）
according to risk
characteristics
Other minor receivables 9,365,663.60 63.38% 5,535,243.53 73.54%
Total 14,777,647.21 100.00% 7,526,610.86 100.00%
Items
2008-12-31
Book balance Provision for bad debts
Amount Proportion（%） Amount Proportion（%）
Receivables with large
individual amount. 2,585,375.05 19.22% 129,268.80 1.72%
Receivables without large
individual amount, but with
great risk after combined
according to risk
characteristics 1,811,334.89 13.46% 1,811,334.89 24.07%
Other minor receivables 9,057,002.53 67.32% 5,586,007.17 74.21%
Total 13,453,712.47 100.00% 7,526,610.86 100.00%
A. Combining with the company's assets and the structure of credit receivables, 1 million or more
is the standard to divide individual amount;
B. Details of receivables of major individual amount which have been accounted provision for bad
debt are as follows;
Debtor Book balance
Amount of
provision for bad
debt
Reasons
Hongkong Silk stockings Man
208,616.27 208,616.27
Long-tem open
account ,that can not be
recovered17
Debtor Book balance
Amount of
provision for bad
debt
Reasons
Mengren Company
154,720.40 154,720.40
Long-tem open
account ,that can not be
recovered
Shuya
126,712.53 126,712.53
Long-tem open
account ,that can not be
recovered
Guangzhou Wanjia
108,919.34 108,919.34
Long-tem open
account ,that can not be
recovered
Baijia
89,428.23 89,428.23
Long-tem open
account ,that can not be
recovered
Shenzhen Jinshiji Health Product
technology Co., Ltd.
77,734.45 77,734.45
Long-tem open
account ,that can not be
recovered
Aoxi
74,596.86 74,596.86
Long-tem open
account ,that can not be
recovered
Shenzhen Wanjia Merchandise Co., Ltd.
68,817.23 68,817.23
Long-tem open
account ,that can not be
recovered
Wal-Mart (China) Investment Co., Ltd.
63,191.70 63,191.70
Long-tem open
account ,that can not be
recovered18
Debtor Book balance
Amount of
provision for bad
debt
Reasons
Shantou Shengping Air Travel Company
60,074.00 60,074.00
Long-tem open
account ,that can not be
recovered
Li Jinta
58,558.00 58,558.00
Long-tem open
account ,that can not be
recovered
Other sporadic
719,965.88 719,965.88
Long-tem open
account ,that can not be
recovered
Total 1,811,334.89 1,811,334.89
(2). Accounts receivable are as follows:
Age
2009-6-30 2008-12-31
Amount Proportion% Provision for bad
debts
Amount Proportion% Provision for bad
debts
Within 1
year 7,154,724.53 48.41% 307,108.97 6,182,880.52 45.96% 307,108.97
1-2 years 2,441,277.37 16.52% 2,037,856.58 2,089,186.64 15.53% 2,037,856.58
2-3 years 2,652,237.03 17.95% 2,652,237.03 2,652,237.03 19.71% 2,652,237.03
Over 3
years 2,529,408.28 17.12% 2,529,408.28 2,529,408.28 18.80% 2,529,408.28
Total 14,777,647.21 100.00% 7,526,610.86 13,453,712.47 100.00% 7,526,610.86
(3). The amount of top five debtor was RMB 3,894,891.78, accounting for 26.36% of the total,
RMB 3,894,891.78 within one year, accounting for 26.36.19
Name of debtor Amount of arrearage Term Proportion
Hahui Huateng Textile and garment
Co., Ltd. 1,918,712.06 Within 1 year 12.98%
Jiangshu Yalu Garment Co., Ltd. 535,285.02 Within 1 year 3.62%
Gaoyou Xingxing Garment factory 514,510.00 Within 1 year 3.48%
Shenzhen Teyifeng Industry Company 485,458.20 Within 1 year 3.29%
Ankeba Trade 440,926.50 Within 1 year 2.99%
Total 3,894,891.78 26.36%
(4). In the receivables at the period end, no loans of the shareholders holding 5% (inclusive of a 5%)
or more voting right and other related units.
4. Other receivables
(1). Other receivables at different levels are as follows:
Items
2009-6-30
Book balance Provision for bad debts
Amount Proportion（%） Amount Proportion（%）
Receivables with large individual
amount. 13,185,464.51 73.09% 5,370,306.77 77.12%
Receivables without large
individual amount, but with great
risk after combined according to
risk characteristics
995,781.80 5.52% 995,781.80 14.3%
Other minor receivables 3,859,291.48 21.39% 597,276.77 8.58%
Total 18,040,537.79 100.00% 6,963,365.34 100%
Items
2008-12-31
Book balance Provision for bad debts
Amount Proportion（%） Amount Proportion（%）
Receivables with large individual 34,866,549.51 87.60% 6,335,361.02 79.88%20
amount.
Receivables without large
individual amount, but with great
risk after combined according to
risk characteristics
995,781.80 2.50% 995,781.80 12.55%
Other minor receivables 3,938,949.04 9.90% 600,276.77 7.57%
Total 39,801,280.35 100.00% 7,931,419.59 100%
A. Combining the company's assets and credit of receivables, RMB 0.5 million or more was
the standard for the division of individual major amount;
B. If the individual amount is large, the details of other receivables which have been
accounted provision for bad debt are as follows:
Debtor Book balance
Amount of
provision for
bad debt
Reasons
Hongkong Dahong International
Co., Ltd. 2,340,325.59 2,340,325.59
In long-term loss, negative net
asset
Total 2,340,325.59 2,340,325.59
C. The accounts receivable with small single-item amount that have the sign of impairment
as shown by clear evidences are listed as accounts receivable with small single-item amount that
have big risks after combination according to risk characteristics. The details are as follows:
Name of debtor Original value
Provision for bad
debts Reason for provision
Xing Zhenhua 65,000.00 65,000.00
Long-term open account
that can not be recovered
Light Textile Industrial and
Trading Company 116,285.83 116,285.83
Long-term open account
that can not be recovered
Tan Weixiong 132,310.09 132,310.09
Long-term open account
that can not be recovered
Other Sporadic
682,185.88 682,185.88
Long-term open account
that can not be recovered
Total
995,781.80 995,781.80
(2) Other accounts receivable by aging are as follows21
Age
2009-6-30 2008-12-31
Amount Proportion% Provision for
bad debts
Amount Proportion% Provision for
bad debts
Within 1 year 1,613,683.04 8.95% 80,684.15 23,269,425.60 58.46% 1,163,471.28
1-2 years 1,896,848.30 10.51% 189,684.83 1,926,848.30 4.84% 192,684.83
2-3 years 10,794,387.88 59.83% 2,959,771.52 10,844,387.88 27.25% 2,974,771.52
Over 3 years 3,735,618.57 20.71% 3,733,224.84 3,760,618.57 9.45% 3,600,491.96
Total 18,040,537.79 100.00% 6,963,365.34 39,801,280.35 100.00% 7,931,419.59
（3）The amount of top five debtor was RMB 13,752,872.49, accounting for 76.23% of the
total,RMB 1,902,206.68 within 1 year, accounting for 10.54%,2-3 years was RMB 9,510,340.22,
accounting for 52.72%, Over 3 years was RMB 2,340,325.59, accounting for 12.97% of the total,
Name of debtor Amount Term Proportion
Shenzhen Shenfang Lekai
Photoelectronic Materials
Co., Ltd.
9,510,340.22 2-3 years
52.72%
Hongkong Dahong International
Co., Ltd.
2,340,325.59 Over 3 years
12.97%
Nanshan Equipment
808,624.19 within 1 year 4.48%
Export tax rebates 689,624.19 within 1 year 3.82%
Polaroid Project
403,958.30 within 1 year 2.24%
Total 13,752,872.49 76.23%
（4）In the receivables at the period end, no loans of the shareholders holding 5% (inclusive of a
5%) or more voting right.
5. Prepayments22
Age Sturcture 2009-6-30 2008-12-31
Within 1 year 40,976,515.31 9,984,762.06
1-2 years --- 335,848.86
Total 40,976,515.31 10,320,610.92
(1) according to the equity transaction contract signed with China Lekai Film Group
Company, the Company paid 50% of assignment price, i.e., RMB 39 million, to Beijing Equity
Exchange for purchasing equity of Shenzhen Shenfang Lekai Photoelectronic Materials Co., Ltd.
on June 26, 2009. The balance of RMB 39 million will be paid up before September 22, 2009.
Relevant procedure of equity change is being handled. The amount was temporarily accounted for
as prepayment.
（2）As of June 30, 2009, in the balance of payments in advance , no loans held by
the shareholders holding 5% (inclusive of a 5%) or more voting right.
6. Inventory
Inventory types
2009-6-30 2008-12-31
Book balance Provision for
devaluation
Book balance Provision for
devaluation
Raw materials 8,874,758.62 3,457,252.92 8,084,965.26 3,463,110.66
Processing products 3,458,083.26 284,330.39 1,201,868.25 306,726.86
Finished products 8,295,423.45 2,520,386.01 8,006,633.46 2,567,523.18
Commissioned goods 2,762,078.29 2,336,213.49 2,652,790.96 2,385,385.37
Low-value
products 931,318.57 20,437.76 966,640.85 21,088.48
Total 24,321,662.19 8,618,620.57 20,912,898.78 8,743,834.55
Methods for drawing provision for devaluation are described in Note 4.7,(3)
7. Disposable financial asset
Items
Decrmber 31,
2008
Current into
Change in fair
value
The current
sales
June 30, 2009
Stock Investment 41,203,383.82 6,417,043.51 45,462,266.27 4,098,586.10 88,984,107.50
Total 41,203,383.82 6,417,043.51 45,462,266.27 4,098,586.10 88,984,107.5023
(1) The inward transfer in current period is the inward transfer of 5,365,251 restricted
negotiable shares of Shenzhen Victor Onward Textile Industrial Co., Ltd. held by the Company
from long-term equity investment after unfreezing of shares in current period. In current period,
the Company sold 3,444,190 shares of Shenzhen Victor Onward Textile Industrial Co., Ltd. and
loss and gain were brought forward at cost, i.e., RMB 4,098,586.10;
(2) As the market price of negotiable shares of Shenzhen Victor Onward Textile Industrial
Co., Ltd. held by the Company sharply rose over the beginning of year, the financial assets
available for sale at the end of period increased by big margin;
（3）The Company took the transaction price in open market as the valuation basis of stock
investment among financial assets available for sale.
8. Long term share equity investment.
Items
2008-12-31 Increase in
the current
period
Decrease in
the current
period
2009-6-30
Amount Provision for
impairment
Amount Provision for
impairment
Stock
investment 21,248,725.01 14,831,681.50 --- 6,417,043.51 14,831,681.50 14,831,681.50
Joint
enterprise 7,302,266.82 266,654.99 328,819.40 --- 7,631,086.22 266,654.99
Associated
enterprise 55,883,313.94 --- 822,513.45 --- 56,705,827.39 ---
Other
investment 67,060,605.63 23,785,363.00 --- --- 67,060,605.63 23,785,363.00
Total 151,494,911.40 38,883,699.49 1,151,332.85 6,417,043.51 146,229,200.74 38,883,699.49
（1）Name of joint enterprise and main financial information.
Name of the units invested
Registere
d place
Nature of
business
Share
ratio held
by the
company
Ratio of
voting
right of
the
company
in the unit
invested
Total at the
period end
(RMB’000
0)
Total of
business
income in
the current
period(RM
B’0000)
Net profit
of the
current
period
(RMB’000
0)24
Name of the units invested
Registere
d place
Nature of
business
Share
ratio held
by the
company
Ratio of
voting
right of
the
company
in the unit
invested
Total at the
period end
(RMB’000
0)
Total of
business
income in
the current
period(RM
B’0000)
Net profit
of the
current
period
(RMB’000
0)
Shenzhen Trademark
Factory Co. Ltd.
Shenzhen Service
industry 50.00% 50.00%
764.74 99.5 50.6
Shenzhen Xieli Automobile
Co., Ltd.
Shenzhen Manufactur
ing
50.00% 50.00%
623.68 62.84 15.16
（2）Name of Associated enterprise and main financial information
Name of the units invested
Regis
tered
place
Nature of
business
Share
ratio
held by
the
compan
y
Ratio of
voting
right of
the
company
in the unit
invested
Total at the
period end
Total of
business
income in
the current
period
Net profit
of the
current
period
Shenzhen Changlianfa Printing
and dyeing Company
Shenz
hen
Service
industry 40.25% 40.25%
411.77 22.46 0.75
Jordan Garnent Factory Jordan Manufacturing 35.00% 35.00% USD-1.12 --- ---
Hengshun( Saipan）Industry Co., Ltd. Saipan Manufacturing 35.00% 35.00% USD-1.90 --- ---
Shenzhen Shenfang Lekai
Photoelectronic Materials
Co., Ltd.
Shenzh
en Polarizer,
LCD-related
materials
and part
47.95% 47.95% 11,459.06 5,352.3 170.9
（3）Details of stock investments are as follows.
Units invested Type Amount Proportion June 30, 200925
Shenzhen Jintian Industry Co., Ltd. Legal
person
shares
12,274,497 4.00% 14,831,681.50
Total 14,831,681.50
（4）Investments accounted according to method of equity are as follows
Ratio held
Original
investment
Balance at
period
beginning
Increase in
the current
period.
Decrease in
the current
period.
Balance at the
period end
Shenzhen Trademark
Factory Co. Ltd. 50% 2,040,102.73 3,993,015.15 253,009.36 --- 4,246,024.51
Shenzhen Xieli
Automobile Co., Ltd. 50% 1,529,483.67 3,309,251.67 75,810.04 --- 3,385,061.71
Shenzhen Changlianfa
Printing and dyeing
Company 40.25% 2,524,500.00 1,654,318.70 3,036.32 --- 1,657,355.02
Jordan Garnent Factory 35.00% 7,240,625.00 --- --- --- ---
Hengshun( Saipan ） Industry
Co., Ltd. 35.00% 8,228,350.00 --- --- --- ---
Shenzhen Shenfang
Lekai Photoelectronic
Materials Co., Ltd.
47.95% 40,500,000.00 54,228,995.24 819,477.13 --- 55,018,472.37
Total 62,913,061.40 63,185,580.76 1,151,332.85 --- 64,336,913.61
(5）Investments accounted according to method of Cost are as follows26
Ratio held
Original
investment
Balance at
period
beginning
Increase in
the current
period.
Decrease in
the current
period.
Balance at the
period end
Shenzhen Jiafeng Textile Co., Ltd. 10.80% 16,800,000.00 16,800,000.00 --- --- 16,800,000.00
Shenzhen Guanhua Prnting and
dyeing Co., Ltd.
45.00%
5,491,288.71 5,491,288.71 --- --- 5,491,288.71
Shenzhen Union Textile Group Co.,
Ltd.
2.87%
2,600,000.00 2,600,000.00 --- --- 2,600,000.00
Shenzhen Xiangjiang Leather
Produce Co., Ltd
20.00%
160,000.00 160,000.00 --- --- 160,000.00
Shenzhen Xinfang Knitting Co.,
Ltd.
20.00%
524,000.00 524,000.00 --- --- 524,000.00
Hongkong Yehui International Co.,
Ltd.
17.85%
2,392,914.37 2,392,914.28 --- --- 2,392,914.28
Shenzhen South Textile Co., Ltd. 9.80% 1,500,000.00 1,500,000.00 --- --- 1,500,000.00
Shenzhen Tongyi Simian Co., Ltd. 18.00% 1,800,000.00 1,800,000.00 --- --- 1,800,000.00
Shenzhen Huadong Electronic Co.,
Ltd. 50.00% 8,906,070.41 3,141,691.26 ---
---
3,141,691.26
Shenzhen Dailisi Knitting Co., Ltd. 30.00% 532,062.50 2,559,856.26 --- --- 2,559,856.26
Hongkong Dahong International
Co., Ltd.
100.00%
10,600.00 1,451,653.84 --- --- 1,451,653.84
Shenzhen Fengsheng Costume Co.,
Ltd.
100.00%
4,123,077.16 1,778,004.61 --- --- 1,778,004.61
Anhui Huapeng Tectile Co., Ltd. 50.00% 25,000,000.00 25,410,209.50 --- --- 25,410,209.50
Shenzhen Jingguang
FootgearIndustry Co., Ltd.
70.00%
5,040,000.00 1,450,987.17 --- --- 1,450,987.17
Total 67,060,605.63 --- --- 67,060,605.63
A. The company held shares of Shenzhen Huadong Electronic Co., Ltd. Shenzhen Dalice Knitting Co.,
Ltd. and ,Anhui Huapeng Tectile Co., Ltd., respectively 50.00% ,30.00% and 30.00%, because the27
three companies have been contracted by other shareholders, the company adopted the method of
cost accounting;
B. The company held shares of Shenzhen Guanhua Printing and dyeing Co., Ltd. 45%, because
the company has stopped its business for a long time, therefore, the company adopted the method
of cost accounting and drew the provision for devaluation.
（6）Provision for impairment of long-term investments
Units invested
2008-12-31
Increase
in the
current
period
Transfer in
or other
transfer out
in the
current
period
2009-6-30
Reasons
Shenzhen Jintian Industry
Co., Ltd.
14,831,681.50 --- --- 14,831,681.50 The company's net
assets were negative
Shenzhen Jiafeng Textile
Co., Ltd.
16,800,000.00 --- --- 16,890,000.00 The company is
being liquidating
Shenzhen Guanhua Prnting and
dyeing Co., Ltd.
5,058,307.01 --- --- 5,058,307.01 The company is
being liquidating
Hongkong Dahong
International Co., Ltd.
1,451,653.84 --- --- 1,451,653.84 Enter liquidation procedings
Shenzhen Fengsheng Costume
Co., Ltd.
25,535.56 --- --- 25,535.56 Procedures for the
transfer of shares
Shenzhen Jingguang
FootgearIndustry Co., Ltd. 449,866.59 ---
---
449,866.59
Enter liquidation procedings
Shenzhen Xieli Automobile
Co., Ltd. 266,654.99 ---
---
266,654.99
Notes
Total 38,883,699.49 --- --- 38,883,699.49
Notes. The operating period will expire, the both parties had not reached cooperation
agreement, and the provision for impairment for the goodwill was accounted.
9. Investment real estate28
Type 2008-12-31
Increase in the
current period
decrease in the
current period
2009-6-30
1. Total original price 220,630,160.65 --- --- 220,630,160.65
House , Building 213,154,848.78 --- --- 213,154,848.78
Owner-occupied housing renovation 7,475,311.87 --- --- 7,475,311.87
II.Total accumulated depreciation and
accumulated amortization 77,813,901.22 3,061,800.72
---
80,875,701.94
House , Building 76,412,575.94 2,691,819.96 --- 79,104,395.90
Owner-occupied housing renovation 1,401,325.28 369,980.76 --- 1,771,306,04
III.Total of accumulated provision for
devaluation of investment real
estate.
--- --- --- ---
House , Building --- --- --- ---
Owner-occupied housing renovation --- --- --- ---
IV.Total book value of investment real
estate
142,816,259.43 --- --- 139,754,458.71
House , Building 136,742,272.84 --- --- 134,050,452.88
Owner-occupied housing renovation 6,073,986.59 --- --- 5,704,005.83
In the current period, the investment real estate of the Company used for loan
mortgage was described in Note VII, 16.
10.Fixed assets
Items 2008-12-31 Increase in the
current period
Decrease in the
current period
2009-6-30
1. Total original price 145,341,534.50 265,956.21 42,200.00 145,565,290.71
House , Building 73,509,367.79 --- --- 73,509,367.79
Machinery
equipment 63,746,675.16 134,840.33 28,700.00 63,852,815.4929
Items 2008-12-31 Increase in the
current period
Decrease in the
current period
2009-6-30
Transportation 2,765,087.85 --- --- 2,765,087.85
Electronic and Other 5,320,403.70 131,115.88 13,500.00 5,438,019.58
II. Total of
accumulative
depreciation 58,058,570.58 3,462,153.22 22,665.00 61,498,058.80
House , Building 28,165,472.33 1,346,094.72 --- 29,511,567.05
Machinery
equipment 24,713,731.90 1,807,022.51 9,840.00 26,510,914.41
Transportation 1,194,047.62 109,324.94 --- 1,303,372.56
Electronic and Other 3,985,318.73 199,711.05 12,825.00 4,172,204.78
III. Amount of
impairment 3,365,993.61 --- --- 3,365,993.61
IV.Book value of
Fixed assets 83,916,970.31 80,701,238.30
House , Building 44,214,660.87 42,868,566.15
Machinery
equipment 37,092,271.14 35,401,228.96
Transportation 1,299,306.48 1,189,981.54
Electronic and Other 1,310,731.82 1,241,461.65
(1) The company has no temporarily idle fixed assets
(2) The completed project under construction converted to fixed assets RMB 97,121.00 .
(3). The ownership of fixed assets of the Company is unrestricted, the mortgage loans in the
current period described are in Note VII,16;
11. Project under construction30
Projects
December
31, 2008
Increase
in the
current
period
Transferred
to fixed
asset in the
current
period
Investment
real estate
Other items
transferred
out
June 30,
2009
Project
progre
ss%
Capital
source
Budget
(RMB’00
00)
Longgang
Industrial
Area
dormitory
30,549,164.87 2,476,515.14 --- --- --- 33,025,680.01 90%
Self-
Financ
ing
37 million
Other small
works 97,121.00 -- 97,121.00 ---
Self-
Financ
ing ---
Total 30,646,285.87 2,476,515.14 97,121.00 33,025,680.01
(1). Capitalization of the project under construction in the current period without interest;
(2) The project under construction of the company does not exist the impairment produced by the
influences by risks from middle-term stop or declaration of waste.
12. Intangible assets
Items 2008-12-31
Increase in the
current period
Decrease in the
current period
2009-6-30
1. Total original
price 7,506,990.60 --- --- 7,506,990.60
Land Use right 7,506,990.60 --- --- 7,506,990.60
II. Total amount of
accumulated
amortization 1,592,754.60 230,133.36 --- 1,822,887.96
Land Use right 1,592,754.60 230,133.36 --- 1,822,887.96
III.Total value of
provision for
impairment --- --- --- ---
IV. Book value of
intangible assets 5,914,236.00 --- --- 5,684,102.6431
Items 2008-12-31
Increase in the
current period
Decrease in the
current period
2009-6-30
Land Use right 5,914,236.00 --- --- 5,684,102.64
There was no situations that result in the predicted value smaller than the book value due to the price
decline, backward technology, on legal protection and other risk factors. Therefore, there were no
prevision for impairment of intangible assets.
13. Goodwill
Items Net assets can
be identified
Acquisition
ratio
Price paid Recognized
goodwill
Provision for
bad debts
Shenzhen Beauty Century
Garment Co., Ltd
32,115,324.60 52% 18,867,400.00 2,167,431.21 2,167,431.21
Shenzhen Shenfang
Import and Export Co.,
Ltd.
7,387,339.99 51% 3,849,700.00 82,156.61 82,156.61
Total -- 2,249,587.82 2,249,587.82
14. Long-term prepaid expenses
Items
2008-12-31
Increase in the
current period
Amortization in
the current
period
Other transfer
2009-6-30
Decoration costs 1,038,191.17 --- 245,958.07 --- 792,233.10
Total 1,038,191.17 --- 245,958.07 --- 792,233.10
15. Deferred income tax assets
Items of deferred income tax 2009-6-30 2008-12-3132
1.Provision or bad debt1 969,416.45 1,165,280.11
2. Provision for devaluation of
inventory 581,047.69 581,047.69
3. Provision for impairment of
fixed assets --- ---
4. Provision for Long-term equity
investment 888,659.76 888,659.76
Total 2,439,123.90 2,634,987.56
16. Short-term borrowings
Items Currency
2009-6-30 2008-12-31
Amount of
original currency
Transferred to RMB Amount of
original currency
Transferred to RMB
Mortgage RMB 35,000,000.00 35,000,000.00 46,000,000.00 46,000,000.00
Total --- 35,000,000.00 --- 46,000,000.00
(1) On June 30, 2009, the Company had no overdue bank borrowings.
(2）On Juen 30,2009，Short-term borrowings
Name of creditors Amount
Contrac
t rate
Date
borrowed
Maturity
Date
Mode
Bank of China, Shenzhen Branch 25,000,000.00 5.31% 2009-5-8 2010-5-7 Mortgage
Guangdong Development Bank,
Shenzhen Xiangmihu Branch 10,000,000.00 4.86% 2008-11-27 2009-11-26 Mortgage
Total 35,000,000.00
（3）On June 30,2009,Information on the main mortgage assets:：
Name of mortgage Area (square
meters)
The bank for the mortgage33
Baseroom of Shenfang Building, and the 1-6 ,18,19.20.22 and
23 floor of the general building
25,048.82 Bank of China, Shenzhen Branch
C-901、C-902, Nanyang Building 170.43 Bank of China, Shenzhen Branch
The first floor of Building One, 13, Fenghuang Road 1,032.29 Bank of China, Shenzhen Branch
The first floor, Building 3, 8th yard, Tianbei Second Road 537.23 Bank of China, Shenzhen Branch
SFDZD2000246015, C1-C5 Shenfang No. 2 Real Estate,
Building 820, warehouse in Baoan North Road, Louhu,
Shenzhen
- Guangdong Development Bank,
Shenzhen Xiangmihu Branch
17.Account payable
Age 2009-6-30 2008-12-31
Within 1 year 32,101,553.31 16,827,929.54
1-2 years 46,726.28 96,260.56
2-3 years 310,875.07 783,639.58
Over 3 years 1,409,984.91 1,151,197.73
Total 33,869,139.57 18,859,027.41
(1)As of June 30, 2009， In the balance of accounts payable, there were no payables to
shareholders holding 5.00% (including 5.00%) or more of the voting right of the Company;
(2). The payables at the period end are normal procurement borrowings, the other payables which
are longer than 1 year, mainly due to the individual amount reduced, the suppliers have not
provided invoices, so it belongs to normal transaction. On account of the principle of caution, the
company has suspended the payables.
18. Received in advance
Age 2009-6-30 2008-12-31
Within 1 year 2,616,610.78 10,565,031.59
1-2 years 837,701.88 674,285.99
2-3 years --- ---
Over 3 years 177,387.39 236,327.18
Total 3,631,700.05 11,475,644.7634
As of June 30,2009，In the balance of funds received in advance, there were no funds of
shareholders holding 5.00% (including 5.00%) or more of the voting right of the Company;
19.Employee salary
Items 2008-12-31
Amount drown in
the current period
Decrease in the
current period
2009-6-30
1. Wages, bonuses, allowances
and subsidies 8,391,774.49 9,312,708.86 11,675,029.92 6,029,453.43
2. Employee welfare --- 1,153,241.06 806,410.50 346,830.56
3. Social insurance premiums 418,760.56 1,374,251.72 1,249,546.65 543,465.63
Of Which: medical insurance --- 54,676.17 54,676.17 ---
Basic old-age insurance
premiums 418,760.56 1,193,353.17 1,181,648.10 430,465.63
Pension Payment --- 113,000.00 --- 113,000.00
Unemployment insurance --- 3,297.15 3,297.15 ---
Work injury insurance --- 3,590.74 3,590.74 ---
Maternity insurance --- 6,334.49 6,334.49 ---
4. Public reserves for housing --- 12,454.26 12,454.26 ---
5. Union funds and staff
education fee 417,526.78 180,975.83 285,749.27 312,753.34
6. Compensation for
cancelation of labor relations 132,924.00 3,962.00 136,886.00 ---
7.Other --- 316,888.47 316,888.47 ---
Total 9,360,985.83 12,354,482.20 14,482,965.07 7,232,502.96
20.Tax Payable
Taxed 2009-6-30 2008-12-31
VAT -13,906,506.42 50,006.9535
Taxed 2009-6-30 2008-12-31
Business Tax 365,049.51 419,765.17
City Construction tax 2,306.98 3,491.06
Enterprise Income tax 699,387.16 614,693.43
House property Tax 92,299.54 77,739.76
Individual Income tax 354,153.31 354,285.64
Other tax 70,983.43 137,784.11
Total -12,322,326.49 1,657,766.12
21.Dividend Payable
Name 2009-6-30 2008-12-31
Shenzhen Investment
Management Co., Ltd.
9,835,447.80 5,000,000.00
22.Other payable
Age 2009-6-30 2008-12-31
Within 1 year 13,291,121.14 13,585,532.94
1-2 years 5,637,531.46 4,412,150.23
2-3 years 10,845,924.92 11,135,824.92
Over 3 years 19,135,858.91 19,300,104.23
Total 48,910,436.43 48,433,612.32
（1）As of June 30,2009，In the balance of funds received in advance, there were no funds of
shareholders holding 5.00% (including 5.00%) or more of the voting right of the Company;
（2）The contacts between the related parties are described in Note 9.36
23. Special payable
Name 2009-6-30 2008-12-31
Shenzhen Finance Bureau 2,000,000.00 2,000,000.00
According to the "Notice on National Development and Reform Commission to the General
Office of the textile project management of the special funds" (Faigaiban [2006]2841), on December
22, 2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance
Bureau.
24. Deferred income tax liabilities
Items 2009-6-30 2008-12-31
Changes in fair value of financial
assets for sale 13,974,787.84 5,776,755.82
Deterred income liabilities are determined and are used to reduce public reserves according to the
book value of financial assets to be sold and the tax basis at the period end.
25. .Stock capital
2008-12-31
Increase in the
current
Decrease in the
current period
2009-6-30
Amount
Proportion
%
Amount Proportion%
I. Share with conditional
subscription
1.State-owned shares --- --- --- --- --- ---
2.Staee-owned legal
person shares 136,465,560.00 55.68% --- --- 136,465,560.00 55.68%
3.Other domestic shares --- --- --- --- --- ---
Of which：
Domestic legal person
shares --- --- --- --- --- ---37
2008-12-31
Increase in the
current
Decrease in the
current period
2009-6-30
Amount
Proportion
%
Amount Proportion%
Domestic natural person
shares 47,588.00 0.02% --- --- 47,588.00 0.02%
4.Share held by foreign
investors
Of which：
Foreign legal person
shares --- --- --- --- --- ---
Foreign natural person
shares --- --- --- --- --- ---
Total 136,513,148.00 55.70% --- --- 136,513,148.00 55.70%
II. Shares with
unconditional
subscription
1.Common shares in
RMB 59,110,852.00 24.11% --- --- 59,110,852.00 24.11%
2.Foreign shares in
domestic market 49,500,000.00 20.19% --- --- 49,500,000.00 20.19%
3.Foregin shares in
overseas market --- --- --- --- --- ---
4.Other --- --- --- --- --- ---
Subtotal 108,610,852.00 44.30% --- --- 108,610,852.00 44.30%
Total 245,124,000.00 100.00% --- --- 245,124,000.00 100.00%
26. Capital reserves
Items 2008-12-31 Increase in the Decrease in the 2009-6-3038
current current period
Share premium 45,286,259.45 --- --- 45,286,259.45
Other capital reserve 23,635,334.58 60,059,840.40 23,690,027.38 60,005,147.60
Other 68,921,594.03 60,059,840.40 23,690,027.38 105,291,407.05
In the reporting period, the limit of 5,365,251 shares of Shenzhen Victor Onward Textile Industrial
Co., Ltd.. held by the company was cancelled, and accounted according to fair value in the financial
assets for sale, the changed part of the fair value was included in the public reserve and transferred out
to investment income
27.Surplus reserve
Items 2009-6-30 2008-12-31
I. Statutury surplus reserve
Balance at year beginning 26,179,878.63 26,179,878.63
Increase in this year 4,319,709.75 4,319,709.75
Decrease in this year --- ---
Balance at year end 30,499,588.38 30,499,588.38
28.Retained profit
Items 2009-6-30 2008-12-31
Net profit 22,611,368.55 44,212,891.08
Less: loss and gain of minority
shareholders --- -1,779,666.24
Net profit belonging to the owner
of the parent company 22,611,368.55 45,992,557.32
Add: Retained profit at the period
beginning 72,682,114.10 31,009,266.53
Less: drawing statutory surplus
reserve --- 4,319,709.75
Less: Payable dividends of
common shares 12,256,200.00 ---39
Items 2009-6-30 2008-12-31
Retained profits at the period end 83,037,282.65 72,682,114.10
According to resolutions of 2008 annual shareholders' general meeting, RMB 0.5 (including
tax) for every 10 shares was paid and cash dividends of RMB 12,256,200.00 were distributed in
total.
29. Business income , cost and gross
（1）Business income
Items 2009-6-30 2008-6-30
1.Main business income
Domestic and foreign trade 139,441,982.48 82,913,464.93
Manufacturing 21,936,326.11 27,328,250.48
Property management , leasing 32,959,775.99 32,388,318.46
Internal offset between industries -11,025,668.29 -1,520,406.17
Subtotal 193,312,416.29 141,109,627.70
2.Other business income
Material transfer , electricity 1,686,680.53 2,195,047.97
Subtotal 1,686,680.53 2,195,047.97
Total 184,999,096.82 143,304,675.67
（2）Business cost
Items 2009-6-30 2008-6-30
1.Main business cost
Domestic and foreign trade 138,232,107.61 81,921,586.82
Manufacturing 19,529,112.50 25,314,974.43
Property management, leasing --- ---
Internal offset 9,864,846.40 -646,023.90
Subtotal 147,896,373.71 106,590,537.35
2.Other business cost
Material transfer, electricity 1,686,680.50 2,195,047.91
Subtotal 1,686,680.50 2,195,047.9140
Items 2009-6-30 2008-6-30
Total 149,583,054.21 108,785,585.26
（3）Gross and gross rate
Items 2009-6-30 2008-6-30
1. Gruss profit from main business 35,416,042.58 34,519,090.35
2.Other business profit 0.03 0.06
Operating Gross profit rate 19.14% 24.09%
（4）Total income and the ratio of operating income from top five clients:
Items 2009-6-30 2008-6-30
Total income from top five
clients 112,969,571.34 112,460,872.01
The ratio of perating income 61.06% 47.05%
（5）Income from main business are listed by Area:
Main business 2009-6-30 2008-6-30
Domestic business revenue 36,495,456.20 57,744,822.20
Foreign business income 148,503,640.62 85,559,853.47
Total 184,999,096.82 143,304,675.67
30.Business taxes and surcharges
Items 2009-6-30 2008-6-30
Business tax 1,677,120.53 1,659,497.87
City construction tax 49,762.52 43,112.99
Education surcharge 99,525.05 90,343.41
Consumption Fee 1,598.00 1,635.00
Total 1,828,006.10 1,794,589.2741
Main business taxes and additional tax standards are described in Note 5.
31.Cost of sales
Items 2009-6-30 2008-6-30
Cst of sales 6,183,378.01 6,424,993.35
Including: Wage 2,859,515.19 2,795,086.29
Deorecuatuib exoebse 354,849.28 409,613.60
Transportation expenses 311,892.04 247,494.29
Repair fee 888,946.80 903,649.02
Business hospitality fee 195,885.00 194,257.00
Transport expenses 88,546.60 169,059.20
Office fee 117,667.53 127,005.42
Other 1,366,075.57 1,578,828.53
32.Management expenses
Items 2009-6-30 2008-6-30
Management expreses 18,523,183.47 20,445,940.73
Including：Wage 6,769,390.99 8,593,609.89
Depreciation expenses 4,374,800.12 4,271,460.57
Transport expenses 332,269.50 612,043.54
Business hospitality fee 585,148.10 559,318.40
Office fee 687,857.30 634,207.37
Tax 1,126,400.51 1,186,100.70
Amortization of intangible assets 232,131.24 276,820.54
Other 4,415,185.71 4,312,379.7242
33.Financial costs
Items 2009-6-30 2008-6-30
Total financial expenses 1,235,352.17 3,313,305.17
Of which: Interest expense 1,488,270.24 3,607,816.22
Interest income -327,509.56 -402,529.37
Exchange gains and losses 27,212.31 25,133.02
Handing fee and other 47,379.18 82,885.30
34. Asset impairment losses
Items 2009-6-30 2008-6-30
Bad debts losses -968,054.25 -12,048,127.23
Total -968,054.25 -12,048,127.23
35.Investment income
Items 2009-6-30 2008-6-30
Income form the sale of financial assets for sale 14,661,991.57 5,194,889.94
Account loss and gain adjustment by equity
method 1,151,332.85 1,418,380.48
Accounting dividend by cost method 1,970,702.67 1,464,028.12
Total 17,784,027.09 8,077,298.54
36.Non-operating income
Items 2009-6-30 2008-6-30
Income form liquidation of fixed assets 98,187.00 23,717.80
Income of the sale of intangible assets --- 15,612,936.05
Other income 755,265.70 2,000,346.50
Total 853,452.70 17,637,001.3543
37.Non-operating expenses
Items 2009-6-30 2008-6-30
Disposal of net loss of fixed assets 27,914.65 28,360.29
Donation expenses --- 322,681.84
Other expenses --- 713.05
Total 27,914.65 351,754.84
38.Income tax expenses
Items 2009-6-30 2008-6-30
Total profits 27,123,742.25 39,950,934.17
Current income tax expenses 4,418,762.85 4,909,899.67
Deferred income tax expenses 193,610.85 2,177,698.70
Totla 4,612,373.70 7,087,598.37
Ratio of current income tax expense
to total profis 16.29% 12.29%
39.Minority shareholder gains and loss
Name Shareholding 2009-6-30 2008-6-30
Employee capital stock Jiangxi Xuanli String Co., Ltd. --- -424,142.58
Total --- -424,142.58
40.Other cash paid relating to operating activities
Items 2009-6-30 2008-6-30
Business hospitality 781,033.10 753,575.40
Travel fee 420,816.10 781,102.74
Insurance 143,827.00 203,072.0544
Items 2009-6-30 2008-6-30
Office fee 687,857.30 634,207.37
Transportation cost 311,892.04 247,494.29
Transport fares 816,430.05 820,502.11
Repair fee 888,946.80 903,649.02
Audit and consultation fee 495,200.00 455,000.00
Other 5,036,717.11 4,819,931.49
Total 9,582,719.50 9,618,534.47
41. Cash paid to acquire investments
Items 2009-6-30 2008-6-30
Purchase of 52.05% equity of Shenzhen Shenfang Lekai
Photoelectronic Materials Co., Ltd. 39,000,000.00 ---
Total 39,000,000.00 ---
42. Other cash paid relating to financing activities
Items 2009-6-30 2008-6-30
Repayment of loans borrowed
from the controlling shareholder 2,500,000.00 5,000,000.00
Total 2,500,000.00 5,000,000.00
43.Cash and cash equivalents
Items 2009-6-30 2008-6-30
I. Cash 73,244,176.33 95,201,405.18
Of which: Cash in stock 474,001.84 379,534.43
Bank deposits which can be readily available
for payment 71,403,168.30 83,918,708.95
Other currencies with designate4d use 1,367,006.19 10,903,161.8045
Items 2009-6-30 2008-6-30
II. Cash equivalents --- ---
Of which: bond investment which will due in three
months --- ---
III. Balance of cash and cash equivalents at the
period end 73,244,176.33 95,201,405.18
Of which: Cash and cash equivalents wich are
limited to use 1,367,006.19 10,903,161.80
Notes 8. Notes to main items of financial statements of the parent company
1. Other receivables
（1）Other receivables at different levels are as follows;
Items
2009-6-30
Book balance Provision for bad debt
Amount Proportion Amount Proportion
Receivables with large
individual amount. 39,806,384.38 92.08% 9,540,780.85 92.07%
Receivables without large
individual amount, but with
great risk after combined
according to risk characteristics
181,285.83 0.42% 181,285.83 1.75%
Other minor receivables 3,240,976.59 7.5% 640,685.93 6.18%
Total 43,228,646.80 100.00% 10,362,752.61 100.00%
Items
2008-12-31
Book balance Provision for bad debt
Amount Proportion Amount Proportion
Receivables with large
individual amount. 61,986,869.39 95.81% 10,544,456.60 93.06%46
Receivables without large
individual amount, but with
great risk after combined
according to risk characteristics
181,285.83 0.28% 181,285.83 1.60%
Other minor receivables 2,528,546.66 3.91% 605,064.43 5.34%
Total 64,696,701.88 100.00% 11,330,806.86 100.00%
A.RMB 500,000 or more as the single amount major standard.
B.Details of other receivables with big individual amount which have been drown provision
for bad debt are as follows:
Debtor Book balance
Provision for bad
debt
Reasons
Hongkong Dahong International
Company 2,340,325.59 2,340,325.59
The Company had
come to the liquidation
procedure
Tianlong Industry and trade
Company 800,000.00 500,000.00
The net asset is
negative
Jiangxi Xuanli String Company 14,389,044.60 3,091,600.00
The net asset is
negative
Total 17,529,370.19 5,931,925.59
C.The accounts receivable with small single-item amount that have the sign of impairment as
shown by clear evidences are listed as accounts receivable with small single-term amount that
have big risks after combination according to risk characteristics, the deails are as follows:
Name of debtor Original value
Provision for bad
debts
Reason for provision
Xing Zhenhua
65,000.00 65,000.00
Long-term open account
that can not be recovered
Light textile Industrial and 116,285.83 116,285.83 Long-term open account47
trading company that can not be recovered
Total 181,285.83 181,285.83
（2）Other receivables by aging are as follows:
Age
2009-6-30 2008-12-31
Amount Proportion Provision for bad
debts
Amount Proportion Provision for bad
debts
Within 1 year 29,038,288.14 67.17% 4,418,410.68 50,426,343.22 77.94% 5,368,464.93
1-2 years 1,276,603.19 2.95% 127,660.32 1,306,603.19 2.02% 130,660.32
2-3 years 9,505,009.19 21.99% 2,851,502.76 9,555,009.19 14.77% 2,866,502.76
Over 3 years 3,408,746.28 7.89% 2,965,178.85 3,408,746.28 5.27% 2,965,178.85
Total 43,228,646.80 100.00% 10,362,752.61 64,696,701.88 100.00% 11,330,806.86
（3）The amount of top five debtor was RMB 38,487,615.32, Accounting for 89.03% of the
total, RMB 26,997,289.73 within 1 year, accounting for 62.45%, 2 to 3 years was RMB
9,150,000.00 , accouting for 21.17%, Over 3 years RMB 2,340,325.59,accouting for 5.41% of the
total.
2.Long –term equity investment
Items
2008-12-31
Increase in the
current period
Decrease in the
current period
2009-6-30
Amount Provision for bad
debts
Amount Provision for bad
debts
Stock
investment 21,248,725.01 14,831,681.50 --- 6,417,043.51 14,831,681.50 14,831,681.50
Subsidiarie
s 79,560,635.60 2,249,587.82 --- --- 79,560,635.60 2,249,587.82
Joint
enterprise 7,302,266.82 266,654.99 328,819.40 --- 7,631,086.22 266,654.99
Associated
enterprise 55,883,313.94 --- 822,513.45 --- 56,705,827.39 ---
Other 63,760,605.62 23,785,363.00 --- --- 63,760,605.62 23,785,363.0048
investment
Total 227,755,546.99 41,133,287.31 1,151,332.85 6,417,043.51 222,489,836.33 41,133,287.31
（1）Name of joint enterprise and main financial infurmation
Name of units invested
Registered
place
Nature of
business
Shareholdin
g ratio of
the
company
Ratio of
voting right
of the
company in
the
investment
unit
Total net asset
at the period
end
(RMB’0000)
Total business
income of the
current period
(RMB’0000)
Net profit of
the current
period
(RMB’0000)
Shenzhen Trademark Co., Ltd. Shenzhen Manufacturing 50.00% 50.00% 764.74 99.5 50.6
Shenzhen Xieli Automobile Co., Ltd. Shenzhen Manufacturing 50.00% 50.00% 623.68 62.84 15.16
（2）Name of associated enterprises and main financial information
Name of units investemnt
Register
ed place
Nature of
business
Shareholdin
gs ratio of
the
commpany
Ratio of
voting right
of the
company in
the
investment
Total net asset
at the period
end
(RMB’0000)
Total business
income the
current period
RMB’0000
Net profit
(RMB’0000)
Shenzhen Changlianfa Printing and
dyeing Company
Shenzh
en
Service industry
40.25% 40.25%
411.77 22.46 0.75
Jordan Garment Factory Jordan Manufacturing 35.00% 35.00% USD-1.12 --- ---
Hengshun (Saipan) Industry Co., Ltd. Cypriot Manufacturing 35.00% 35.00% USD-1.90 --- ---
Shenzhen Shenfang Lekai
Photoelectronic Materials
Co., Ltd.
Shenzh
en
Polarizer, LCD
related materials
and devides
47.95% 47.95% 11,459.06 5,352.3 170.9
（3）Details of stock investment are as follows:
Units invested Type Amount Proportion June 30, 2009
Shenzhen Jintian Industry Co., Ltd. Legal
periosn
share
12,274,497 4.00% 14,831,681.5049
Total 14,831,681.50
（4）Investments accounted by method of equity are listed as follows:
Ratio held Original
infestemnt
Balance period
beginning
Increase in the
current period
Decrease in the
current period
Balance at the
period end
Shenzhen Trademark Factory
Co., Ltd. 50% 2,040,102.73 3,993,015.15 253,009.36 --- 4,246,024.51
Shenzhen Xieli Automobile
Co., Ltd. 50% 1,529,483.67 3,309,251.67 75,810.04 --- 3,385,061.71
Shenzhen Changlianfa Printing
and dyeing Company 40.25% 2,524,500.00 1,654,318.70 3,036.32 --- 1,657,355.02
Jordan Garment Factory 35.00% 7,240,625.00 --- --- --- ---
Hengshun (Saipan) Industry
Co., Ltd. 35.00% 8,228,350.00 --- --- --- ---
Shenzhen Shenfang
Lekai Photoelectronic
Materials Co., Ltd.
47.95% 40,500,000.00 54,228,995.24 819,477.13 --- 133,018,472.37
Total 62,913,061.40 63,185,580.76 1,151,332.85 --- 64,336,913.61
（5）Investments accounted by the cost method are listed as follows:
Ratio held Original
investment
Balance at period
beginning
Increase in the
current period
Decrease in the
current period
Balance at the
period end
Shenzhen Jinlan Decorative Articles
Industrial Co., Ltd.
90.00%
5,470,000.00 5,470,000.00 --- --- 5,470,000.00
Shenzhen Dilisi Industrial Co., Ltd. 90.68% 6,666,132.60 6,666,132.60 --- --- 6,666,132.60
Shenzhen Beauty Century Garment Co.,
Ltd.
100.00%
30,867,400.00 30,867,400.00 --- --- 30,867,400.00
Shenzhen Shenfang Import and export
Co., Ltd.
100.00%
6,299,700.00 6,299,700.00 --- --- 6,299,700.0050
Ratio held Original
investment
Balance at period
beginning
Increase in the
current period
Decrease in the
current period
Balance at the
period end
Shenzhen Huaqiang Hotal 95.00% 14,623,003.00 14,623,003.00 --- --- 14,623,003.00
Shenzhen Shengfang Property
Management Co., Ltd.
93.75%
1,600,400.00 1,600,400.00 --- --- 1,600,400.00
Shenzhen Zhongxing Fibre folds cotton
Clothing Ornament Co., Ltd..
75.00%
1,260,000.00 1,260,000.00 --- --- 1,260,000.00
Jiangxi Xuanli Industry Co., Ltd. 63.87% 12,774,000.00 12,774,000.00 --- --- ---
Total 79,560,635.60 --- --- 79,560,635.60
（6）Investemnts accounted by the cost method sare listed as follows:
Ratio held Original
investment
Balance at period
beginning
Increase in the
current period
Decrease in the
current period
Balance at the
period end
Shenzhen Jiafeng Textile Co.,
Ltd.
10.80%
16,800,000.00 16,800,000.00 --- --- 16,800,000.00
Shenzhen Guanhua Prnting and
dyeing Co., Ltd.
45.00%
5,491,288.71 5,491,288.71 --- --- 5,491,288.71
Shenzhen Union Textile Group
Co., Ltd.
2.87%
2,600,000.00 2,600,000.00 --- --- 2,600,000.00
Shenzhen Xiangjiang Leather
Produce Co., Ltd.
20.00%
160,000.00 160,000.00 --- --- 160,000.00
Sheenzhen Xinfang Kuitting
Co., Ltd.
20.00%
524,000.00 524,000.00 --- --- 524,000.00
Hongkong Yehui International
Co., Ltd.
17.85%
2,392,914.37 2,392,914.28 --- --- 2,392,914.28
Shenzhen Huadong
Electronic Co., Ltd 50.00% 8,906,070.41 3,141,691.26 --- ---- 3,141,691.2651
Shenzhen Dailisi
Knitting Co., Ltd.
30.00%
532,062.50 2559856.26 --- --- 2559856.26
Hongkong Dahong
International Co., ltd.
100.00%
10,600.00 1,451,653.84 --- --- 1,451,653.84
Shenzhen Fengsheng garment
Co., Ltd.
100.00%
4,123,077.16 1,778,004.61 --- --- 1,778,004.61
Anhui Huapeng
Textile Co., Ltd
50.00%
25,000,000.00 25,410,209.50 --- --- 25,410,209.50
Shenzhen Jingguang Footwear
Co., Ltd.
70.00%
5,040,000.00 1,450,987.17 --- --- 1,450,987.17
Total 63,760,605.63 --- --- 63,760,605.63
A.The Company held shares of Shenzhen Huadong Electronic Co., Ltd, Shenzhen Dailisi
Knitting Co., Ltd. And Anhui Huapeng Textile Co., Ltd.respectively 50.00%,30.00% and 50.00%，
because the company have stopped their business for a long-term and have entered liquidation
proceedings, therefore, they are not included in the scope of consolidation.
B.The company held shres of Shenzhen Guanhua Printing and dyeing Co., Ltd.45% because
the company has stopped its business for a long –term, therefore, the company adopted the method
of cost accounting and drew the provision for devaluation.
（7）Provision for impairment of long-term investments
Units invested 2008-12-31
Increase
in the
current
period
Transfer in
or transfer
out in the
current
period
2009-6-30 Reasons
Shenzhen Jintian
Industry Co., Ltd.
14,831,681.
50
--- --- 14,831,681.
50
The Company’s net
assets were
negative
Shenzhen Jiafeng Textile
Co., Ltd.
16,800,000.
00
--- --- 16,800,000.
00
The company is
being liquidating
Shenzhen Guanhua
Pruting and dyeing Co.,
Ltd.
5,058,307.0
1
--- --- 5,058,307.0
1
The company is
being liquidating52
Units invested 2008-12-31
Increase
in the
current
period
Transfer in
or transfer
out in the
current
period
2009-6-30 Reasons
Hongkong Dahong
International Co., ltd.
1,451,653.8
4
--- --- 1,451,653.8
4
The company had
come to the
liquidation
procedure
Shenzhen Fengsheng
garment Co., Ltd.
25,535.56 --- --- 25,535.56 Shares equity has
been written of in
the report period
Shenzhen Jingguang
Footwear Co., Ltd. 449,866.59 ---
---
449,866.59
The company is
being liquidating
Shenzhen Xieli
Automobile Co., Ltd. 266,654.99 ---
---
266,654.99
Notes 1
Shenzhen Beauty
Century Garment Co.,
Ltd
2,167,341.21
---
--- 2,167,341.21 Notes 2
Shenzhen Shenfang Import and
Export Co., Ltd.
82,246.61
---
--- 82,246.61 Notes 2
Total 41,133,287.31 --- --- 41,133,287.31
Notes 1. The operating period will expire, the both parties had not reached cooperation
agreement, and the provision for impairment for the goodwill was accounted.
Notes 2. For resaons for Shenzhen Beauty Century Garment Co., Ltd. And Shenzhen Shenfang
Import and Export Co., Ltd, Please see Notes VII, 13
3.Property Investment
Type 2008-12-31
Increase in the
current period
Decrease in the
current period
2009-6-30
I.Cost53
Type 2008-12-31
Increase in the
current period
Decrease in the
current period
2009-6-30
1．House , Building 189,163,884.56 --- --- 189,163,884.56
2 ． Self busing
renovation 7,475,311.87 --- --- 7,475,311.87
Total 196,639,196.43 --- --- 196,639,196.43
II. Accumulative
depreciation
1．House , Building 66,293,906.32 2,319,532.56 --- 68,613,438.88
2 ． Self busing
renovation 1,401,325.28 369,980.76 --- 1,771,306.04
Total 67,695,231.60 2,689,513.32 --- 70,384,744.92
III. Devalue provision
1．House, Building --- --- --- ---
2．Land use right --- --- --- ---
IV. Book Value
1．House, Building 122,869,978.24 120,550,445.68
2．Land use right 6,073,986.59 5,704,005.83
Total of book value 128,943,964.83 126,254,451.51
2. Fixed assets, Accumulative depreciation and Devalue provision of fixed assets
Items 2008-12-31
Increase in the
current period
Decrease in the
current period 2008-12-31
Cost 64,111,868.98 23,086.00 --- 64,134,954.98
House and Building 61,445,887.18 --- --- 61,445,887.18
Machinery equipment 970,025.00 --- --- 970,025.00
Eletricity equipment 830,456.80 23,086.00 --- 853,542.80
Transporation 865,500.00 --- --- 865,500.0054
Items 2008-12-31
Increase in the
current period
Decrease in the
current period 2008-12-31
equipment
Total of accumulative
depreciation 25,059,418.74 1,315,498.05 --- 26,374,916.79
House and Building 23,820,278.39 1,171,101.30 --- 24,991,379.69
Machinery equipment 805,591.05 46,561.20 --- 852,152.25
Eletricity equipment 356,489.30 45,905.55 --- 402,394.85
Transporation
equipment 77,060.00 51,930.00 --- 128,990.00
Devalue provision 235,233.62 --- --- 235,233.62
Net amount of Fixed
assets 38,817,216.62 --- --- 37,524,804.57
House and Building 37,625,608.79 --- --- 36,454,507.49
Machinery equipment 164,433.95 --- --- 117,872.75
Eletricity equipment 473,967.50 --- --- 451,147.95
Transporation
equipment 788,440.00 --- --- 736,510.00
（1）The company has no gemporarily idle fixed assets
（2）The ownership of fixed assets of the Company is unrestricted, the mortgage loans in the
current period described are in Note 10.
5.Business income, cost and gross
（1）Business income
Items Amount at current period
Amount in the same period of
last year
1.Main business income
Property management, leasing 23,539,525.69 22,275,431.38
Subtotal 23,539,525.69 22,275,431.38
2.other business income55
Items Amount at current period
Amount in the same period of
last year
Other 1,686,680.53 2,195,047.97
Subtotal 1,686,680.53 2,195,047.97
Total 25,226,206.22 24,470,479.35
（2）Business cost
Items Amount at current period
Amount in the same period of
last year
1.Main business cost
Property management, leasing --- ---
Subtotal --- ---
2.other business cost --- ---
Other 1,686,680.50 2,195,047.91
Subtotal 1,686,680.50 2,195,047.91
Total 1,686,680.50 2,195,047.91
（3）Gross
Items Amount at current period
Amount in the same period of
last year
1.Main business gross 23,539,525.69 22,275,431.38
2.Other business gross 0.03 0.06
Total of Business gross 23,539,525.72 22,275,431.44
（4）Property management, Leasing of the main business costs, such as wages, depreciation,
Maintenance and other cost of the accounting period.
Notes 9. Relationships of related parties and transactions56
1.The related parties with controlling relationships
（1）Shareholders of the company with controlling relationships
Names of associated companies Registere
d place
Legal
representative
Relationship
with the
company
Euqity
ratio %
Shenzhen Investemnt Management Shenzhen Chen Hongbo Major
shreholder of
the Company
60.67
（2）Information of shareholders of the company with controlling relationships
Names of associated
companies
Registere
d place
Legal
representati
ve
Registered
capital
Business scope
Shenzhen
Investemnt
Management Co.,
Ltd.
Shenzhen Chen
Hongbo
4000 milllion Provide guarantee for
state-owned enterprises; manage
the state-owned equity besides
the enterprises supervised by
municipal Assets Commission;
Carry Out asset restructure,
reform and capital operation;
Investemnt other business
authorized by municipal assets
commission.
（3）Subsidiary with controlling relationships
Name of associated company Registere
d place
Legal
representative
Relationship
with the
company
Equity
ratio %
Shenzhen Jinlan Decorative Articles Industrial
Co., Ltd.
Zhenzhen Zhang Hong Subsidiaries 100.00%
Shenzhen Lisi Industrial Co., Ltd. Shenzhen Zhu Jun Subsidiaries 100.00%57
Name of associated company Registere
d place
Legal
representative
Relationship
with the
company
Equity
ratio %
Shenzhen Beauty Centruty Garment Co., Ltd. Shenzhen Wang Bin Subsidiaries 100.00%
Shenzhen Shenfang Import and export Co.,
Ltd.
Shenzhen Wang Bin Subsidiaries 100.00%
Shenzhen Huaqiang Hotel Shenzhen Zhu Jun Subsidiaries 100.00%
Shenfang Property Management
Co., Ltd.
Shenzhen Wang Bin Subsidiaries 100.00%
Zhenzhen Zhongxing Fibre folds
cotton Clothing ornament Co., Ltd.
Shenzhen Feng Junbin Subsidiaries 75.00%
Jiaangxi Xuanli String Co., Ltd. Jiangxi Gao Guoshi Subsidiaries 63.87%
Shenzhen Tianlong Industry and Trade
Co., Ltd.
Shenzhen Gao Guoshi Subsidiaries 81.935%
（4）Existence of related-party contrul of the registered capital and its changes
Name Balance at period
beginning
Increase in
the current
period
Decrease in
the current
period
Balance at the period
end
Shenzhen Jinlan Decorative Articles
Industrial Co., Ltd.
4,000,000.00 --- --- 4,000,000.00
Shenzhen Lisi Industrial Co., Ltd. 2,360,000.00 --- --- 2,360,000.00
Shenzhen Beauty Centruty Garment
Co., Ltd.
25,000,000.00 --- --- 25,000,000.00
Shenzhen Shenfang Import and export
Co., Ltd.
5,000,000.00 --- --- 5,000,000.00
Shenzhen Huaqiang Hotel 10,005,300.00 --- --- 10,005,300.0058
Name Balance at period
beginning
Increase in
the current
period
Decrease in
the current
period
Balance at the period
end
Shenfang Property Management Co.,
Ltd.
1,600,000.00 --- --- 1,600,000.00
Zhenzhen Zhongxing Fibre folds cotton
Clothing ornament Co., Ltd.
1,680,000.00 --- --- 1,680,000.00
Jiaangxi Xuanli String Co., Ltd. 20,000,000.00 --- --- 20,000,000.00
2. No related-party control of the situation
Name Relation
Shenzhen Shenhu Knitting Co., Ltd. Affiliated comapny
Hengshun (Saipan ) Co., Ltd. Affiliated comapny
Shenzhen Xiangjiang Leatter Product Co., Ltd. Affiliated comapny
Shenzhen Xinfang Knitting Co., Ltd. Affiliated comapny
HongKong Yehui International Co., Ltd. Affiliated comapny
Shenzhen Changlianfa Printing and dyeing Co., Ltd. Affiliated comapny
Shenzhen Trademark Co., Ltd. Affiliated comapny
Shenzhen Xieli Automobile Co., Ltd Affiliated comapny
Shenzhen Shenfang Lekai Photoelectronic Materials Co., Ltd. Affiliated comapny
3. Related-party transactions and related contacts
（1）Pricing policy
The compay associated with the purchase and sale of the company’s activities under the
contract price (close to the market price) settlement with the company is borrowing money lending
activities by contract (close to normal interest rates for bank loans ) the interest rate settlement
（2）Trading actrivaties
Name 2009-6-30 2008-12-3159
Name 2009-6-30 2008-12-31
1.Other receivable
Shenzhen Shenfang Lekai Photoelectronic Materials
Co., Ltd. 9,510,340.22 9,560,340.22
2.Other payable
Shenzhen Fengsheng garment Co., Ltd. 1,752,469.05 1,752,469.05
Shenzhen Xinfang Knitting Co., Ltd. 150,988.85 150,988.85
Shenzhen Huadong electronice Co., Ltd. 3,141,691.26 3,141,691.26
Shenzhen Changlianfa Printing and dyeing
Co., Ltd. 521,916.07 552,080.47
Shenzhen Hengsheng Investment Co., Ltd. 1,295,192.86 1,295,192.86
Shenzhen Trademark Co., Ltd. 3,803,868.07 3,803,868.07
Shenzhen Xieli Automobile Co., Ltd 13,128.00 ---
Notes 10. Contingent events
By the date of the statement , the company has no commitment events to be disclosed
Notes 11. Commitment events of the Company
By the date of the statement , the company has no commitment events to be disclosed
Notes 13. Supplement information
1. Consolidation of non-recurrent loss and gain
Items
Amount at current
period
Amount in the
same period of last
year
Gain/loss form disposal of non-current assets 14,760,178.57 20,831,543.79
The fund possession cost collected from non-financial
enterprises accounted for as profits of losses for current
period 2,000,000.0060
Items
Amount at current
period
Amount in the
same period of last
year
Writeback of provision for impairment of accounts
receivable separately tested for impairment 12,774,650.00
Net amount of non-operating income and expense the
aforesaid items 727,351.05 -351,408.68
Total of non-recurring gains and losses 15,487,529.62 35,254,785.11
Less：Income tax 3,099,866.11 6,342,532.97
Minority shareholder gains and loss 6,680.73
Non—recurring gain and loss fter deducting income tax
and gain and loss of minority shareholders
12,387,663.51
28,905,571.41
2.Parent Company of non-recurrent loss and gain
Items
Amount at current
period
Amount in the
same period of last
year
Gain/loss form disposal of non-current assets 14,661,991.57 20,807,825.99
The fund possession cost collected from non-financial
enterprises accounted for as profits of losses for current
period --- 2,000,000.00
Writeback of provision for impairment of accounts
receivable separately tested for impairment --- 12,774,650.00
Net amount of non-operating income and expense the
aforesaid items 755,455.70 -300,000.00
Total of Non-recurrent loss and gain 15,417,447.27 35,282,475.99
Less：Income tax 3,083,489.45 6,350,845.6861
Items
Amount at current
period
Amount in the
same period of last
year
Non-recurring gains losset after deducting of impaction
income tax and minority shareholders’ gains /losses 12,333,957.82 28,931,630.31
3. Provision for bad debts
Items 2008-12-31
Withdrawal
amount in this
Decrease in this period
2009-6-30
Transfer in Transfer-ont
Provision for bad debts 15,458,030.45 --- 968,054.25 --- 14,489,976.20
Provision for falling price
of inventory 8,743,834.55 --- 125,213.98 8,618,620.57
Provision for devaluation
of Long-term equity
investment
38,883,699.49 --- ---
---
38,883,699.49
Provision for
devaluationof fexed assets 3,365,993.61 ---
---
--- 3,365,993.61
Provision for devaluation
of gooldwill 2,249,587.82 --- --- --- 2,249,587.82
Total 68,701,145.92 --- 968,054.25 125,213.98 67,607,877.69
4.Supplement information for cash flow statement
（1）Supplement information for cash flow statement of consolidation
Amount at current period Amount in the same
period of last year
I. Adjusting net profit to cash flow from operating activities
Net profit
22,611,368.55 32,863,335.8062
Amount at current period Amount in the same
period of last year
Add : Impairment loss provision of assets
-968,054.25 -12,048,127.23
Depreciation of fixed assets, oil and gas assets and
consumablebiological assets 6,490,290.22 6,447,239.24
Amortization of intanglble assets 197,640.42 230,490.33
Amortization of long-term deferred expenses 226,601.91 249,381.60
Loss on disposal of non-current assets 18,345.00 -15,620,423.70
Loss from fixed assets discard --- 18,765.45
Loss of fair value fluctuation on assets - ---
Financial cost 1,371,570.26 3,258,134.13
Loss on investment -17,784,027.09 -8,077,298.54
Decrease of deferred income tax assets 193,610.85 2,152,052.37
Increase of deferred income tax assets 9,092,453.25 3,420,681.47
Decrease of inventories -3,538,628.20 -790,182.24
Decrease of operating receivable 9,341,468.70 -8,166,917.49
Increase of operating receivables -14,410,696.97 24,646,270.05
Other --- ---
Net cash flows arising from operating activities 12,841,942.65 28,583,401.24
II. Significant investment and financing activities that
withoutcash flows ---
Liability transfer to capital --- ---
Convertible corporate bond due within 1 year --- ---
Finance leased fixed assets --- ---
III. Net increase of cash and cash equivalents63
Amount at current period Amount in the same
period of last year
Ending balance of cash 73,244,176.33 95,201,405.18
Less: Beginning balance of cash 84,022,925.18 124,908,748.97
Add: Ending balance of cash --- ---
Less: Beginning balance of cash equivalents --- ---
Net increase of cash and cash equivalents -10,778,748.85 -29,707,343.79
（2）Supplement information for cash flow statement of Parent Company
Amount at current period Amount in the same
period of last year
I. Adjusting net profit to cash flow from operating activities
Net profit 23,417,390.94 32,504,007.78
Add : Impairment loss provision of assets -968,054.25 -11,955,846.50
Depreciation of fixed assets, oil and gas assets and
consumablebiological assets 4,005,011.37 3,897,283.58
Amortization of intanglble assets 162,464.70 212,902.47
Amortization of long-term deferred expenses --- ---
Loss on disposal of non-current assets -190.00 -15,612,936.05
Loss from fixed assets discard --- ---
Loss of fair value fluctuation on assets --- ---
Financial cost 771,750.07 2,703,268.50
Loss on investment -17,322,196.14 -6,489,981.85
Decrease of deferred income tax assets 193,610.85 2,152,052.37
Increase of deferred income tax assets 9,092,453.25 3,427,464.72
Decrease of inventories --- ---
Decrease of operating receivable -674,058.92 -12,793,953.62
Increase of operating receivables -7,674,157.35 29,030,160.5164
Amount at current period Amount in the same
period of last year
Other --- ---
Net cash flows arising from operating activities 11,004,024.52 27,074,421.91
II. Significant investment and financing activities that
withoutcash flows
Liability transfer to capital --- ---
Convertible corporate bond due within 1 year --- ---
Finance leased fixed assets --- ---
III. Net increase of cash and cash equivalents --- ---
Ending balance of cash 25,445,553.32 52,232,074.45
Less: Beginning balance of cash 35,807,908.88 51,415,565.66
Add: Ending balance of cash --- ---
Less: Beginning balance of cash equivalents --- ---
Net increase of cash and cash equivalents -10,362,355.56 816,508.79
5.Process of calculating eamings per share
（1）Process of calculating consclidated earning s per share65
Shenzhen Textile (Holdings) Co., Ltd.
Supporting Statement of Consolidated Profit and Profit Distribution Statement
Financial indicators
Unit：
RMB
Return on net assets Earnings per share
Earnings
per share Weighted average
Basic earnings per
share
Diluted earnings per
share
Items
June
30,
2009
June
30,
2009
June
30,
2008
June
30,
2009
June
30,
2008
June
30,
2009
June
30,
2008
Operating profit 5.69% 6.16% 5.97% 0.11 0.09 0.11 0.09
Net profit 4.87% 5.28% 8.76% 0.09 0.14 0.09 0.14
Net profit after deducting
non-recurring gains and
losses 2.20% 2.39% 1.15% 0.04 0.02 0.04 0.02
non-recurring gains
and losses
12,387
,663.5
1
12,38
7,663.
51
28,90
5,571.
41
12,38
7,663.
51
28,90
5,571.
41
Process of
calculation:
Fully diluted return on equity = Profit for the report period
/ net assets at the end of period
Weighted average return on net asset=P/（Eo+Np/2+Ei*Mi/Mo-Ej*Mj/Mo)
Basic earnings per share=P/
（So+S1+Si*Mi/Mo-Sj*Mj/Mo)
Diluted earnings per share = (P + diluted potential dividend of ordinary shares that has been recognized as expenses * (1-income tax rate)
- conversion expenses) /（S0＋S1＋Si*Mi/M0－Sj*Mj/M0+Number of shares increased by exercising subscription warrants and options)
Notes to signs:
Items June 30, 2009 June 30, 2008
P：Profit for the
report period
Np：Net profit for the
report period (not
including minority
gains and losses)
22,611,368.55 33,287,478.38
Eo：Beginning net assets (not including
minority interest)
417,227,296.51 363,329,286.62
Ei：Net assets increased through new
issue in the report period
- -
Ej：Net assets decreased through
distribution of cash dividends in the
12,256,200.00 -
（2）Process of calculating parent Company earnings per share66
Shenzhen Textile (Holdings) Co., Ltd.
Supporting Statement of Parent Company Profit and Profit Distribution Statement
Financial indicators
Unit：RMB
Return on net assets Earnings per share
Fully diluted Weighted average Basic earnings per share Diluted earnings per share
Items June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008 June 30, 2009 June 30, 2008
June
30,
2009 June 30, 2008
Operating profit 5.83% 5.32% 6.33% 0.06 0.11 0.09 0.11 0.09
Net profit 5.14% 7.96% 5.58% 8.71% 0.10 0.13 0.10 0.13
Net profit after
deducting non-recurring
gains and losses 2.43% 0.88% 2.64% 0.96% 0.05 0.01 0.05 0.01
non-recurring gains
and losses 12,333,957.82 28,931,630.31 12,333,957.82 28,931,630.31 12,333,957.82 28,931,630.31
Process of
calculation:
Fully diluted return on equity = Profit for the report period /
net assets at the end of period
Weighted average return on net assets=P/（Eo+Np/2+Ei*Mi/Mo-Ej*Mj/Mo)
Basic earnings per share=P/（So+S1+Si*Mi/Mo-Sj*Mj/Mo)
Diluted earnings per share = (P + diluted potential dividend of ordinary shares that has been recognized as expenses * (1-income tax rate) - conversion expenses) /（S0＋S1＋
Si*Mi/M0－Sj*Mj/M0+Number of shares increased by exercising subscription warrants and options)
Notes to signs:
Items June 30, 2009 June 30, 2008
P：Profit for the report
period
Np：Net profit for the
report period (not
including minority
gains and losses)
23,417,390.94
32,504,007.78
Eo：Beginning net assets (not including minority interest) 408,121,581.49
357,019,031.39
Ei：Net assets increased through new issue in the report period
-
-
Ej：Net assets decreased through distribution of cash
dividends in the report period
12,256,200.00
-
Mi：The number of months from the next month of increase of
net assets to the end of the report period
-
Mj：The number of months from the next month of decrease of
Note 13. Other important events
By the date of the statement, the Company had no other important events to be disclosed.
Notes 14. There was no difference between net assets at the end of the report period and net
profit for the report period calculated pursuant to domestic and international accounting standards.
