Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2019
Stock code: 000045，200045 Stock Abbreviation: Shen Textile A ，Shen Textile B Announcement No.: 2019-36
Shenzhen Textile (Holdings) Co., Ltd.
Summary of the Semi-Annual Report 2019
I. Important notes
The summary is abstract from full-text of summary of the semi-annual report, for more details information,
investors should found in the full-text of annual report that published on website of Shenzhen Stock Exchange and
other website appointed by CSRC.
Non-standard auditor’s opinion
□ Applicable √Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √Not applicable
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √Not applicable
II. Basic information about the company
1. Company profile
Shen Textile A, Shen
Stock abbreviation Stock code 000045、200045
Textile B
Stock exchange for listing Shenzhen Stock Exchange
Contact person and contact manner Board secretary Securities affairs Representative
Name Jiang Peng Li Zhenyu
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Office Address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
E-mail jiangp@chinasthc.com lizy@chinasthc.com
2. Major accounting data and financial indicators
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 1,008,863,295.50 474,262,408.57 112.72%
Net profit attributable to the shareholders
7,832,287.98 9,646,976.15 -18.81%
of the listed company（RMB）
Net profit after deducting of -10,548,582.20 -10,817,314.92 2.48%
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2019
non-recurring gain/loss attributable to
the shareholders of listed company
（RMB）
Cash flow generated by business
23,826,362.35 -128,850,889.44 118.49%
operation, net（RMB）
Basic earning per share (RMB/Share) 0.0153 0.0190 -19.47%
Diluted gains per
0.0153 0.0190 -19.47%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.32% 0.40% -0.08%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 4,384,396,778.74 4,619,203,416.79 -5.08%
Net assets attributable to shareholder of
2,580,594,659.88 2,373,329,991.86 8.73%
listed company（RMB）
3.Shareholders and shareholding
In Shares
Number of shareholders of
Total Number of common
preferred stocks of which
shareholders at the end of the 32,757 0
voting rights recovered in
reporting period
the report period (If any)
Shareholdings of Top 10 shareholders
Number or share
Shareholders Proportion Number of pledged/frozen
Nature of Amount of restricted shares
of shares shares held at
shareholder State of
held（%） period -end held Amount
share
Shenzhen
Investment State-owned
45.78% 234,069,436 0
Holdings Co., legal person
Ltd.
Shenzhen
Shenchao State-owned
Technology 3.15% 16,129,032 0
Investment Legal person
Co., Ltd.
Domestic
Sun Huiming 0.63% 3,224,767 0
Nature person
Zheng Domestic
0.59% 3,000,000 0
Junsheng Nature person
Domestic
Li Songqiang 0.56% 2,873,078 0
Nature person
Chen Domestic
0.39% 2,013,001 0
Danzhen Nature person
Kuang Domestic
0.28% 1,453,600 0
Guowei Nature person
Domestic
Hong Fan 0.27% 1,384,900 0
Nature person
Domestic
Li Zengmao 0.22% 1,136,700 0
Nature person
Domestic
Zhu Ye 0.22% 1,134,145 0
Nature person
Related or acting-in-concert Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
parties among shareholders Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the
above Company did not whether there is relationship between the top ten shareholders holding
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2019
non-restricted negotiable shares and between the top ten shareholders holding non-restricted
negotiable shares and the top 10 shareholders or whether they are persons taking concerted
action defined in Regulations on Disclosure of Information about Shareholding of
Shareholders of Listed Companies.
The Company Shareholder Li Songqiang holds 2,872,653 shares of the Company through
Explanation on shareholders stock account with credit transaction; The Company Shareholder Hong Fan holds 56,000
participating in the margin shares of the Company through stock account with credit transaction. The Company
trading business (if any) Shareholder Zhu Ye holds 1,031,945 shares of the Company through stock account with credit
transaction.
4.Changing of controlling shareholder and practical controller of the Company.
Change of holding shareholder
□ Applicable √ Not applicable
No change of holding shareholder in the report period.
Change of substantial controller
□ Applicable √ Not applicable
No change of substantial controller in the report period.
5.Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Not applicable
No preference shareholders in the reporting period
6.Corporate bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this report or were due but could not be redeemed in full?
No
III. Performance discussion & analysis
1．Performance Review for Reporting period
Is the company subject to any disclosure requirements for special industries?
No
In the first half of 2019, the Company insisted on developing the polarizer industry, focusing on the main
business, improving its profitability, accelerating the construction of the Line 7 project of polarizer, and further
deepening the reform of mixed ownership. Firstly, the Company continuously improves the production and
operation capacity of polarizer by improving product quality, optimizing product structure, actively exploring the
market and exploring the substitution of raw materials. Meanwhile, centering on the target of reducing losses and
increasing profits, the Company takes various measures to promote management optimization. Secondly, the
Company makes every effort to build the industrialization project of super-large polarizer for TV (Line 7) in order
to grasp the development opportunities of domestic super-large polarizer business; Thirdly, the Company strives
to improve the plight of textile and garment business and actively promotes the introduction of strategic investors
introduced by Shenzhen Beauty Century Co., Ltd., a subsidiary company; Fourthly, the capital increase and share
expansion and open leasing to Guanhua Company are completed to realize lease income; Fifthly, the main
responsibility of safety production is implemented to achieve the safe development of the company.
During the reporting period, the Company realized the operating income of RMB 1008.8633 million,
representing an increase of RMB534.6009 million or 112.72% over the same period of last year; the total profit was
RMB 4.0462 million, representing an decrease of RMB5.8338 million or 59.05% over the same period last year;
the net profit of shareholders attributable to listed companies was RMB 7.833 million, which was RMB
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2019
1.8147 million lower than that of the same period last year and 18.81% lower than that of the same period last
year. The Company's business income has increased considerably compared with the same period last year. The
main reasons are as follows: One the one hand, TFT-LCD Phase II Line 6 was put into operation in the second
half of 2018, its production capacity was released in the current year, and its sales volume increased year on year;
One the other hand, the import trade business that has paid in advance for equipment in 2018 was completed in
this reporting period, while the trade business was less in the same period last year. During the reporting period,
the net profit attributable to shareholders of listed companies decreased slightly compared with the same period
last year. The reason is that the price of main polarizer products has been maintained at a low level since the sharp
decline in 2018 and the average price of polarizer products has decreased compared with the same period last year,
offsetting the contribution of the rising sales volume to net profit.
Reviewing the first half of 2019, the company focused on the key work, with contents as follows:
(I) Various measures to enhance the profitability and R&D capability of polarizer business
During the reporting period, firstly, the Company continued to optimize production process and improve
product quality and continued to improve production capacity and reduce losses through measures such as
equipment transformation of Line 4 and speed increase of Line 6. After the relocation of Line 1-3, equipment
assembly, linkage test and fine adjustment were completed rapidly. Secondly, the Company optimized the product
structure and actively developed the product market. The Company continuously adjusted the product structure,
reduced the proportion of negative gross margin products orders, gave priority to high gross margin orders,
speeded up market development and product import and actively promoted key customers such as LGD, HKC,
BOE, Sharp, etc. in order to enhance the overall profitability; Thirdly, the Company continued to do a good job in
R&D innovation and to explore alternative import of raw materials. During the reporting period, the Company
continued to develop new products, increased product performance improvement, carried out new material
evaluation and introduction, and put emphasis on price reduction of major raw materials.
Meanwhile, the research and development of independent intellectual property rights was strengthened. The
Company applied for 3 patents (inventions) and 7 patents were granted authorization notices. The two national
standards "Measurement of Optical Compensation Value for Polarizers" and "Test Method of Adhesion of Optical
Film Coatings for Polarizers" researched and developed by the Company have been formally implemented.
Relying on two technical platforms--"Shenzhen Polarizing Materials and Technology Engineering Lab" and
"Municipal Research and Development Center", the Company focuses on research & development and
industrialization of key LCD polarizer production techniques, research & development and industrialization of
new OLED polarizer products and research on localization of polarizer production materials. In addition, the
Company actively expands investment in R&D funds, horizontally explores the innovative development of mature
products, and enhances the sustainable development ability of enterprises.
(II) Actively promote the construction of Line 7 project
Line 7 project has entered the stage of comprehensive construction, and has obtained all kinds of permits
required for construction at this stage. The project construction team of the Company has arranged construction
milestone, striving to complete the work on time and with high quality. The Company will further strengthen the
monitoring and management of budget, schedule and quality in the process of project construction, and actively
promote technical exchanges with Nitto Denko and Kunshan Zhiqimei to promote the research and development
of raw materials for Line 7 project. The leadership of the Company led a team to visit the major raw material
manufacturers in Japan and conducted business cooperations based on the friendly consultation and negotiation,
basically determining the supply source of the main raw material, and solving the supply problem of the raw
material for matching polarizer production of Line 7 by 2020.
(III) The textile industry has continued to make up deficits and other enterprises showed a steady upward
trend
During the reporting period, Despite the adverse factors such as the recession of the industry, the rise of raw
materials and labor costs, the number of customers' orders in traditional textile business has rebounded during the
reporting period. The Company actively promoted the introduction of strategic investors introduced by Shenzhen
Beauty Century Garment Co., Ltd. , a subsidiary company.
(IV) Complete the capital increase of Guanhua Company and strengthen the management of property
enterprises, showing a steady rise in property rental income.
During the reporting period, the Company increased its capital and shares by the same proportion with the
real assets of Guanhua Building in order to improve the contribution obligation of both the shareholders of the
Company and Qiaohui Textile Industrial Co., Ltd. to Shenzhen Guanhua Printing & Dyeing Co., Ltd. After the
capital increase, the registered capital of Guanhua Company increased from RMB 10 million to RMB 109.5517
million. In June, Guanhua Company completed the overall external lease of Guanhua Building, and has received a
total of RMB 10.2032 million in rental deposit and first quarter rent from the lessee. In addition, other property
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Shenzhen Textile (Holdings) Co., Ltd. Summary of the Semi-Annual Report 2019
enterprises have strengthened management, and improved the quality of property and hotel services to actively
overcome the pressure brought by the downturn of the real economy on property leasing. The leasing situation is
stable, showing a steady upward trend.
(V) Attach importance to safety in production and take preventive measures, so as to promote the safe
development of enterprises
During the reporting period, the Company firstly implemented the responsibility system for production safety
and implemented the responsibility for production safety to individuals; Secondly, the Company focused on
investigation and centralized rectification of potential safety hazards. The Company inspected the on-site safety
problems of the affiliated enterprises without notification, issued the rectification notice of potential safety hazards
and problems in time, and required them to complete the rectification. In the meantime, the Company put
emphasis on the construction safety of Line 7 project, carried out special safety hazard investigation at the
construction site, and organized safety warning education and training at the site. Thirdly, the Company actively
carried out the monthly activities of safe production, timely completed the information input and maintenance of
the information platform, and promoted the construction of safety information.
(VI) Constant reinforcement of foundation and strengthening of grass-roots party construction
Firstly, the Company should conscientiously carry out various forms of activities such as theoretical study of
the central group and "Three Meeting and One Class", and conduct in-depth special education activities of
"remain true to our original aspiration and keep our mission firmly in mind" according to the work deployment of
the Party Committee at higher level; Secondly, the Company should strengthen organizational construction and
complete the centralized change of Party organizations directly under the unified requirements of the
Organizational Department of the CPC Shenzhen Municipal Committee. Thirdly, the Company should
conscientiously fulfill the responsibility of supervising the construction of a clean and honest Party conduct,
strengthen the study of honest education and build a strong ideological defense line of honesty and self-discipline;
Fourthly, the Company should strengthen the system learning and training, fulfill the responsibility of discipline
supervision and accountability, strengthen supervision and inspection, and strengthen restraint; Fifthly, the
Company should conscientiously do a good job in the election of the trade union of the Company, strengthen the
enterprise culture, and conscientiously carry out the work of maintaining the stability by letters and visits to escort
the development of the Company.
2.Maters related to financial report
(1) Reason for changes in accounting policies, accounting estimates and accounting methods as compared to the
financial report for the prior year
□ Applicable √ Not applicable
No such cases in the reporting period.
(2) Reason for retrospective restatement to correct major accounting errors during the reporting period
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Reason for changes in scope of the consolidated financial statements as compared to the financial report for
the prior year
□ Applicable √ Not applicable
No such cases in the reporting period.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 21, 2019
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