Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Financial Report 2019
August 21, 2019
1
Shenzhen Textile(Holdings) Co., Ltd. The Semi-Annual Financial Report 2019
1. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 419,227,198.60 1,141,759,374.60
Settlement provision
Outgoing call loan
Transactional financial assets 760,000,000.00
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 31,079,249.92 886,432.06
Account receivable 497,053,241.57 528,454,015.59
Financing of receivables
Prepayments 134,533,314.88 229,028,791.15
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 14,566,106.22 14,846,896.50
Including：Interest receivable 7,067,282.69 5,589,704.44
Dividend receivable
Repurchasing of financial assets
Inventories 515,163,535.57 439,752,718.77
2
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 89,787,160.89 639,797,959.30
Total of current assets 2,461,409,807.65 2,994,526,187.97
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial assets 45,373,784.87
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 163,733,127.58 32,952,085.66
Other equity instruments investment 242,767,132.26
Other non-current financial assets
Property investment 116,195,160.90 167,997,941.98
Fixed assets 934,236,253.12 987,876,247.55
Construction in progress 94,993,015.59 15,621,286.64
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 37,191,323.92 37,880,815.85
Development expenses
Goodwill
Long-germ expenses to be amortized 2,575,143.27 1,486,209.03
Deferred income tax asset 5,687,946.62 6,036,198.23
Other non-current asset 325,607,867.83 329,452,659.01
Total of non-current assets 1,922,986,971.09 1,624,677,228.82
Total of assets 4,384,396,778.74 4,619,203,416.79
Current liabilities
Short-term loans 50,837,730.76 411,522,111.40
Loan from Central Bank
Borrowing funds
3
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 247,726,900.23 180,239,452.90
Advance receipts 25,426,190.80 120,702,951.37
Selling of repurchased financial assets
Deposit taking and interbank
deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 24,381,210.07 32,506,267.08
Tax payable 16,505,455.32 7,745,128.99
Other account payable 171,137,964.42 229,015,279.98
Including：Interest payable 435,029.66 39,044,044.39
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1
40,000,000.00
year
Other current liability
Total of current liability 536,015,451.60 1,021,731,191.72
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
4
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 129,416,766.89 137,991,698.33
Deferred income tax liability 66,021,500.49
Other non-current liabilities
Total non-current liabilities 195,438,267.38 137,991,698.33
Total of liability 731,453,718.98 1,159,722,890.05
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,865,716,983.63 1,865,716,983.63
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 200,771,588.45 1,339,208.41
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Common risk provision
Retained profit -49,942,185.43 -57,774,473.41
Total of owner’s equity belong to the
2,580,594,659.88 2,373,329,991.86
parent company
Minority shareholders’ equity 1,072,348,399.88 1,086,150,534.88
Total of owners’ equity 3,652,943,059.76 3,459,480,526.74
Total of liabilities and owners’ equity 4,384,396,778.74 4,619,203,416.79
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：Zhu Meizhu
Person-in -charge of the accounting organ：Mu Linying
2. Balance sheet of Parent Company
I n RMB
Items June 30,2019 December 31,2018
Current asset：
5
Monetary fund 29,536,528.73 85,416,567.74
Transactional financial assets 560,000,000.00
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable
Account receivable 564,306.46 541,948.21
Financing of receivables
Prepayments 79,766.67 17,436.00
Other account receivable 15,141,009.58 13,856,382.02
Including：Interest receivable 6,737,221.93 4,974,799.47
Dividend receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1
year
Other current asset 500,000,000.00
Total of current assets 605,321,611.44 599,832,333.97
Non-current assets：
Debt investment
Available for sale of financial assets 15,373,784.87
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 2,115,956,894.19 1,997,175,852.27
Other equity instruments investment 200,802,141.09
Other non-current financial assets
Property investment 109,525,380.61 161,053,628.71
Fixed assets 25,697,052.23 26,565,399.91
Construction in progress
Production physical assets
Oil & gas assets
Use right assets
6
Intangible assets 828,074.07 1,012,374.75
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 5,337,909.60 5,818,069.48
Other non-current asset
Total of non-current assets 2,458,147,451.79 2,206,999,109.99
Total of assets 3,063,469,063.23 2,806,831,443.96
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 639,024.58 639,024.58
Contract Liabilities
Employees’ wage payable 6,742,670.44 9,760,306.51
Tax payable 13,229,303.02 5,494,627.33
Other account payable 115,538,060.57 141,746,352.67
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1
year
Other current liability
Total of current liability 136,560,802.18 158,052,054.66
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
7
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income 650,000.00 700,000.00
Deferred income tax liability 63,030,252.70
Other non-current liabilities
Total non-current liabilities 63,680,252.70 700,000.00
Total of liability 200,241,054.88 158,752,054.66
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,599,025,454.96 1,599,025,454.96
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 191,797,845.07 1,339,208.41
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Retained profit 508,356,435.09 483,666,452.70
Total of owners’ equity 2,863,228,008.35 2,648,079,389.30
Total of liabilities and owners’ equity 3,063,469,063.23 2,806,831,443.96
3.Consolidated Income Statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 1,008,863,295.50 474,262,408.57
Incl：Business income 1,008,863,295.50 474,262,408.57
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 1,013,198,391.97 481,289,557.87
Incl：Business cost 940,587,510.73 415,092,958.33
Interest expense
8
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 3,897,496.78 3,840,556.12
Sales expense 7,369,804.52 3,780,411.53
Administrative expense 42,901,879.68 41,239,119.73
R & D expense 19,172,388.20 21,189,099.82
Financial expenses -730,687.94 -3,852,587.66
Including：Interest expense 3,783,883.97 3,428,083.94
Interest income -15,744,104.66 -13,277,267.58
Add：Other income 11,035,139.06 5,812,167.76
Investment gain（“-”for loss） -206,057.55 28,552,710.15
Including: investment gains from
-1,114,057.55 616,945.67
affiliates
Financial assets measured at amortized
cost cease to be recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss 2,333,764.98
Impairment loss of assets -21,259,451.35 -17,394,332.04
Assets disposal income 12,236,686.25
III. Operational profit（“-”for loss） -195,015.08 9,943,396.57
Add ：Non-operational income 4,247,261.65 89,905.17
Less: Non-operating expense 6,092.62 153,338.08
IV. Total profit(“-”for loss) 4,046,153.95 9,879,963.66
Less：Income tax expenses 9,773,007.83 5,321,864.53
V. Net profit -5,726,853.88 4,558,099.13
(I) Classification by business
continuity
1.Net continuing operating profit -5,726,853.88 4,558,099.13
2.Termination of operating net profit
9
(II) Classification by ownership
1.Net profit attributable to the owners of
7,832,287.98 9,646,976.15
parent company
2.Minority shareholders’ equity -13,559,141.86 -5,088,877.02
VI. Net after-tax of other comprehensive
52,056,251.94 -389,767.67
income
Net of profit of other comprehensive inco
52,056,251.94 -389,767.67
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
51,249,010.40
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
3. Changes in the fair value of
51,249,010.40
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will be 807,241.54 -389,767.67
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.Gains and losses from changes in fair v -510,116.82
alue available for sale financial assets
4. Other comprehensive income arising
from the reclassification of financial
assets
10
5.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency financ 807,241.54 120,349.15
ial statements
9.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income 46,329,398.06 4,168,331.46
Total comprehensive income attributable
59,888,539.92 9,257,208.48
to the owner of the parent company
Total comprehensive income
-13,559,141.86 -5,088,877.02
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.0153 0.0190
(II)Diluted earnings per share 0.0153 0.0190
Legal Representative: Zhu Jun
Person-in-charge of the accounting work：Zhu Meizhu
Person-in -charge of the accounting organ：Mu Linying
4. Income statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I. Income from the key business 34,593,508.28 33,343,899.42
Incl：Business cost 5,929,735.08 6,934,259.58
Business tax and surcharge 1,412,933.65 1,458,413.46
Sales expense
Administrative expense 16,206,040.37 14,436,569.89
R & D expense
11
Financial expenses -10,132,086.89 -7,833,271.26
Including：Interest expenses
Interest income -9,924,921.96 -7,845,669.84
Add：Other income 50,000.00 50,000.00
Investment gain（“-”for loss） -206,057.55 1,191,719.82
Including: investment gains from
-1,114,057.55 616,945.67
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss 23,970.35
Impairment loss of assets -365,826.86
Assets disposal income 12,301,144.92
II. Operational profit（“-”for loss） 33,345,943.79 19,223,820.71
Add ：Non-operational income 79,604.02
Less：Non -operational expenses
III. Total profit(“-”for loss) 33,345,943.79 19,303,424.73
Less：Income tax expenses 8,655,961.40 4,209,259.73
IV. Net profit 24,689,982.39 15,094,165.00
1.Net continuing operating profit 24,689,982.39 15,094,165.00
2.Termination of operating net profit
V. Net after-tax of other comprehensive
52,056,251.94 -389,767.67
income
（I）Other comprehensive income items
that will not be reclassified into
51,249,010.40
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
3. Changes in the fair value of
51,249,010.40
investments in other equity instruments
4. Changes in the fair value of the
12
company’s credit risks
5.Other
（II）
Other comprehensive income that will b 807,241.54 -389,767.67
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.
Gains and losses from changes in fair v -510,116.82
alue available for sale financial assets
4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
6. Allowance for credit impairments
in investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency fina 807,241.54 120,349.15
ncial statements
9.Other
VI. Total comprehensive income 76,746,234.33 14,704,397.33
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
999,946,160.35 510,486,141.19
rending of services
13
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received from interest,
commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned 9,977,371.04 24,120,883.81
Other cash received from business
29,115,913.92 26,160,799.70
operation
Sub-total of cash inflow 1,039,039,445.31 560,767,824.70
Cash paid for purchasing of
884,541,697.70 560,096,998.00
merchandise and services
Net increase of client trade and advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Net increase in financial assets held
for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 82,695,671.17 76,371,093.88
Taxes paid 15,981,651.90 27,570,325.99
Other cash paid for business activities 31,994,062.19 25,580,296.27
Sub-total of cash outflow from business 1,015,213,082.96 689,618,714.14
14
activities
Net cash generated from /used in
23,826,362.35 -128,850,889.44
operating activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains 2,513,730.75 1,673,214.15
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 6,200.00 26,597.81
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 620,264,450.94 1,903,828,974.66
Sub-total of cash inflow due to
622,784,381.69 1,905,528,786.62
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 88,061,134.28 156,659,802.66
long-term assets
Cash paid as investment
Net increase of loan against pledge
Net cash received from subsidiaries and
0.00
other operational units
Other cash paid for investment
985,495,790.87 1,830,500,000.00
activities
Sub-total of cash outflow due to
1,073,556,925.15 1,987,159,802.66
investment activities
Net cash flow generated by investment -450,772,543.46 -81,631,016.04
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment
from minor shareholders
Cash received as loans 81,566,681.47 275,474,786.49
Cash received from bond placing
Other financing –related cash received
Sub-total of cash inflow from financing
81,566,681.47 275,474,786.49
activities
Cash to repay debts 479,551,062.11 209,562,972.59
15
Cash paid as dividend, profit, or
42,197,297.00 1,439,654.15
interests
Including: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 11,448,442.40
Sub-total of cash outflow due to
533,196,801.51 211,002,626.74
financing activities
Net cash flow generated by financing -451,630,120.04 64,472,159.75
IV. Influence of exchange rate
548,334.28 -494,599.74
alternation on cash and cash equivalents
V.Net increase of cash and cash
-878,027,966.87 -146,504,345.47
equivalents
Add: balance of cash and cash
1,133,574,235.22 1,161,240,139.33
equivalents at the beginning of term
VI ..Balance of cash and cash
255,546,268.35 1,014,735,793.86
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Semi-annual of 2019 Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
35,598,741.25 34,341,479.70
rending of services
Tax returned
Other cash received from business
4,798,306.72 6,186,752.60
operation
Sub-total of cash inflow 40,397,047.97 40,528,232.30
Cash paid for purchasing of
1,795,145.94 2,734,504.18
merchandise and services
Cash paid to staffs or paid for staffs 11,643,989.59 10,002,845.66
Taxes paid 10,101,259.32 7,067,139.21
Other cash paid for business activities 24,376,996.84 12,230,536.71
Sub-total of cash outflow from business
47,917,391.69 32,035,025.76
activities
Net cash generated from /used in
-7,520,343.72 8,493,206.54
operating activities
II. Cash flow generated by investing
16
Cash received from investment
12,000,000.00
retrieving
Cash received as investment gains 2,513,730.75 1,673,214.15
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 24,597.81
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received 8,629,426.36 763,589.50
Sub-total of cash inflow due to
23,143,157.11 2,461,401.46
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 54,410.00 1,545,005.70
long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
60,000,000.00 40,000,000.00
activities
Sub-total of cash outflow due to
60,054,410.00 41,545,005.70
investment activities
Net cash flow generated by investment -36,911,252.89 -39,083,604.24
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing activities 11,448,442.40
Sub-total of cash outflow due to
11,448,442.40
financing activities
Net cash flow generated by financing -11,448,442.40
IV. Influence of exchange rate
17
alternation on cash and cash equivalents
V.Net increase of cash and cash
-55,880,039.01 -30,590,397.70
equivalents
Add: balance of cash and cash
85,416,567.74 413,700,327.95
equivalents at the beginning of term
VI ..Balance of cash and cash
29,536,528.73 383,109,930.25
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Semi-annual of 2019
Owner’s equity Attributable to the Parent Company
Other Equity
Other Total
instrument Minor
Less: Compr Surplu Comm of
Items shareh
share Capital Specia Retain
Shares ehensi s on risk Subtot owners
Capit prefe Susta reserve lized ed Other olders’
in ve reserve provisi al ’
a rred inabl Other s reserve profit equity
stock Incom s on equity
stock e
e
debt
511,2 1,865, 27,230 80,004 -57,77 2,373, 1,086, 3,459,
I.Balance at the 1,339,
74,14 716,98 ,679.0 ,803.2 4,473. 329,99 150,53 480,52
end of last year 208.41
9.00 3.63 0 3 41 1.86 4.88 6.74
Add: Change of 147,37 147,37 147,37
accounting 6,128. 6,128. 6,128.
policy 10 10 10
Correcting of
previous errors
Merger of
entities under
common control
Other
II.Balance at the 511,2 1,865, 27,230 148,71 80,004 -57,77 2,520, 1,086, 3,606,
beginning of 74,14 716,98 ,679.0 5,336. ,803.2 4,473. 706,11 150,53 856,65
current year 9.00 3.63 0 51 3 41 9.96 4.88 4.84
52,056 59,888 -13,80 46,086
III.Changed in 7,832,
,251.9 ,539.9 2,135. ,404.9
the current year 287.98
4 2 00 2
（1）Total 52,056 7,832, 59,888 -13,80 46,086
18
comprehensive ,251.9 287.98 ,539.9 2,135. ,404.9
income 4 2 00 2
（II）Investment
or decreasing of
capital by
owners
1 ． Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments invested
capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
19
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 511,2 1,865, 27,230 200,77 80,004 -49,94 2,580, 1,072, 3,652,
the end of this 74,14 716,98 ,679.0 1,588. ,803.2 2,185. 594,65 348,39 943,05
term 9.00 3.63 0 45 3 43 9.88 9.88 9.76
Amount in last year
In RMB
Semi-annual of 2018
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Other
Minor
Less: Compr Surplu Comm Total of
Items share Capital Specia Retain shareho
Shares ehensi s on risk Subtot owners’
Capit prefe Susta reserve lized ed Other lders’
in ve reserve provisi al equity
a rred inabl Other s reserve profit equity
stock Incom s on
stock e
e
debt
511,2 1,866, 27,230 77,477 -32,26 2,397, 1,125,5 3,523,0
I.Balance at the 2,218,
74,14 001,47 ,679.0 ,042.1 6,087. 474,60 44,525. 19,129.
20
end of last year 9.00 5.17 0 703.87 9 44 3.79 79 58
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
II.Balance at 511,2 1,866, 27,230 77,477 -32,26 2,397, 1,125,5 3,523,0
2,218,
the beginning 74,14 001,47 ,679.0 ,042.1 6,087. 474,60 44,525. 19,129.
703.87
of current year 9.00 5.17 0 9 44 3.79 79 58
12,708
III.Changed in 3,451, -389,7 9,646, -4,263, 8,445,4
,402.4
the current year 194.00 67.67 976.15 001.02 01.46
8
（1）Total
-389,7 9,646, 9,257, -4,263, 4,994,2
comprehensive
67.67 976.15 208.48 001.02 07.46
income
（II）
Investment or
3,451, 3,451, 3,451,1
decreasing of
194.00 194.00 94.00
capital by
owners
1．Ordinary Sh
ares invested b
y shareholders
2 ． Holders of
other equity ins
truments invest
ed capital
3．Amount of
shares paid and 3,451, 3,451, 3,451,1
accounted as 194.00 194.00 94.00
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
21
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided this
year
22
2．Used this
term
（VI）Other
IV. Balance at 511,2 1,869, 27,230 77,477 -22,61 2,410, 1,121,2 3,531,4
1,828,
the end of this 74,14 452,66 ,679.0 ,042.1 9,111.2 183,00 81,524. 64,531.
936.20
term 9.00 9.17 0 9 9 6.27 77 04
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Semi-annual of 2019
Other Equity instrument
Other
Less: Specializ Total of
Items Share preferr Capital Compreh Surplus Retaine
Sustain Shares in ed Other owners’
capital ed Other reserves ensive reserves d profit
able stock reserve equity
stock Income
debt
511,27 483,66
I.Balance at the 1,599,02 27,230,6 1,339,20 80,004,8 2,648,079,
4,149.0 6,452.7
end of last year 5,454.96 79.00 8.41 03.23 389.30
0 0
Add: Change of
138,402, 138,402,3
accounting
384.72 84.72
policy
Correcting of
previous errors
Other
II.Balance at the 511,27 483,66
1,599,02 27,230,6 139,741, 80,004,8 2,786,481,
beginning of 4,149.0 6,452.7
5,454.96 79.00 593.13 03.23 774.02
current year 0 0
III.Changed in 52,056,2 24,689, 76,746,23
the current year 51.94 982.39 4.33
（I）Total
52,056,2 24,689, 76,746,23
comprehensive
51.94 982.39 4.33
income
(II) Investment
or decreasing of
capital by
owners
1．Ordinary Sha
res invested by s
23
hareholders
2．Holders of ot
her equity instru
ments invested c
apital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to
the owners (or
shareholders)
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
24
comprehensive
income
carry-over
retained earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at 511,27 508,35
1,599,02 27,230,6 191,797, 80,004,8 2,863,228,
the end of this 4,149.0 6,435.0
5,454.96 79.00 845.07 03.23 008.35
term 0 9
Amount in last year
In RMB
Semi-annual of 2018
Other Equity
instrument Other
Less: Specializ Total of
Items Share Capital Compre Surplus Retained
preferr Shares ed Other owners’
Capital Sustai reserves hensive reserves profit
ed Other in stock reserve equity
nable Income
stock
debt
511,27 1,599,3
I.Balance at the 27,230,6 2,218,7 77,477, 460,916,6 2,624,037,6
4,149. 81,854.
end of last year 79.00 03.87 042.19 03.36 74.38
00 96
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at 511,27 1,599,3
27,230,6 2,218,7 77,477, 460,916,6 2,624,037,6
the beginning 4,149. 81,854.
79.00 03.87 042.19 03.36 74.38
of current year 00 96
III.Changed in 4,277,0 -389,76 15,094,16 18,981,467.
the current year 70.00 7.67 5.00 33
（I）Total -389,76 15,094,16 14,704,397.
25
comprehensive 7.67 5.00 33
income
(II) Investment
or decreasing of 4,277,0 4,277,070.0
capital by 70.00 0
owners
1．Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments invested
capital
3.Amount of
shares paid and 4,277,0 4,277,070.0
accounted as 70.00 0
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to
the owners (or
shareholders)
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
26
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 511,27 1,603,6
27,230,6 1,828,9 77,477, 476,010,7 2,643,019,1
the end of this 4,149. 58,924.
79.00 36.20 042.19 68.36 41.71
term 00 96
III. Basic Information of the Company
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved
by the Letter(1994)No.15 issued by Shenzhen Municipal People's Government, the Company was
restructured and named as Shenzhen Textile (Holdings) 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 now holds a unified social credit code for the 91440300192173749Y business
license,Registration address and headquarter address are 6/F,Shenfang Building, No.3 Huaqiang Road.
North, Futian District, Shenzhen.
2.Enterprise’s business nature and major business operation.
At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and
marketing of polarizers for liquid crystal display, management of properties in bustling business
districts of Shenzhen and reserved high-class textile and garment business.
27
3. Approval of the financial statements reported
The financial statements have been authorized for issuance of the 20th meeting of the Seventh Board
of Directors of the Group on August 19,2019.
As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidated
financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi
Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property
Management Co., Ltd. Shenzhen Beaufity Garments Co., Ltd. ,Shzhen Shenfang Import & Export
Co., Ltd., and Shengtou (Hongkong) Co., Ltd.
The scope of consolidated financial statements this period did not change.
IV. Basis for the preparation of financial statements
(1) Basis for the preparation
This company’s financial statements is based on going-concern assumption and worked out according
to actual transactions and matters, Accounting Standard for Business Enterprises--Basic
Standard(issued by No.33 Decree of the Ministry of Finance and revised by No.76 Decree of the
Ministry of Finance) issued by the Ministry of Finance, 42 special accounting standards enacted and
revised on and after Feb 15, 2006, guideline for application of accounting standard for business
enterprises, ASBE interpretations and other relevant regulations(hereinafter collectively referred to as
“Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules for Information
Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports
(revised in 2014) issued by China Securities Regulatory Commission.
(2) Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that
will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips:
According to the actual production and operation characteristics, the company has formulated specific
accounting policies and accounting estimates for such transactions or events as provision for bad
debts of receivables, depreciation of fixed assets, amortization of intangible assets, and revenue
recognition.
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
28
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3. Operating cycle
Normal business cycle is realized by the Company in cash or cash equivalents from the purchase of
assets for processing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities
repaid at maturity within one year as of the balance sheet date shall be classified into the current
assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the
absorbing party, while that other enterprise participating in the combination is a party being absorbed.
Combination date is the date on which the absorbing party effectively obtains control of the party
being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the enterprise
being combined at the combination date. The difference between the carrying amount of the net
assets obtained and the carrying amount of consideration paid for the combination (or the total face
value of shares issued) is adjusted to the capital premium in the capital reserve. If the balance of the
capital premium is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to
the combination shall be recognized as an expense through profit or loss for the current period when
incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmed
between the ultimate control date and the combining date for the combining party and the combined
party on the acquirement date, and shall respectively offset the initial retained incomes or the profits
and losses of the current period during the comparative statement.
(2) Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties both
before and after the business combination. For a business combination not involving enterprises
under common control, the party that, on the acquisition date, obtains control of another enterprise
29
participating in the combination is the acquirer, while that other enterprise participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains
control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the
acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during
the merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilities
and the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall be
recorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months after
acquisition, additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arose from deductible temporary
difference by the acquiree can be achieved, relevant income tax assets can be recognized, and
goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in stages
that involves multiple exchange transactions, according to “The notice of the Ministry of Finance on
the issuance of Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and Article51 of
“Accounting Standards for Business Enterprises No.33 - Consolidated Financial Statements” on the
“package deal” criterion, to judge the multiple exchange transitions whether they are the"package
deal". If it belong to the “package deal” in reference to the preceding paragraphs of this section and
“long-term investment” accounting treatment, if it does not belong to the “package deal” to
distinguish the individual financial statements and the consolidated financial statements related to the
accounting treatment:
In the individual financial statements, the total value of the book value of the acquiree's equity
investment before the acquisition date and the cost of new investment at the acquisition date, as the
initial cost of the investment, the acquiree's equity investment before the acquisition date involved in
other comprehensive income, in the disposal of the investment will be in other comprehensive
income associated with the use of infrastructure and the acquiree directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the defined benefit plan acquiree is remeasured net changes in net assets or
liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquiree previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its
fair value and its carrying amount is recorded as investment income.The previously-held equity
interest in the acquiree involved in other comprehensive income and other comprehensive income
associated with the purchase of the foundation should be used party directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the acquiree is remeasured defined benefit plans other than changes in net
liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
30
6. Preparation of the consolidated financial statements
(1) The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as to
obtain benefits from its operating activities. The relevant events refer to the activities that have
significant influence on the return to the invested party. In accordance with the specific conditions,
the relevant events of the invested party should conclude the sale and purchase of goods and services,
the management of the financial assets, the purchase and disposal of the assets, the research and
development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an
enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant
elements involved in the control of the change, the company will be re-evaluated.
(2) Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other
relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in the
consolidated income statement and consolidated statement of cash flows, as appropriated; no
adjustment is made to the opening balance and comparative figures in the consolidated financial
statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired
during the reporting period, through a business combination involving enterprises under common
control, the financial statements of the subsidiary are included in the consolidated financial
statements. The results of operations and cash flow are included in the consolidated balance sheet and
the consolidated income statement, respectively, based on their carrying amounts, from the date that
common control was established, and the opening balances and the comparative figures of the
consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the
Company, the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Where a subsidiary was
acquired during the reporting period through a business combination not under common control, the
financial statements was reconciliated on the basis of the fair value of identifiable net assets at the
date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group
transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/ owners’ equity and net
profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented
separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity
31
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity
investment or other reasons, the remaining equity investment is re-measured at its fair value at the
date when control is lost. The difference between 1) the total amount of consideration received from
the transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current period
when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or
liabilities are accounted when the control is lost (ie, in addition to the former subsidiary is remeasured
at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are
transferred to the current investment income). The retained interest is subsequently measured
according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises
No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises
No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity
investment until the loss of control, need to distinguish between equity until the disposal of a
subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction
disposition of equity investment in a subsidiary, subject to the following conditions and the economic
impact of one or more of cases, usually indicates that several transactions should be accounted for as
a package deal:①these transactions are considered。simultaneously, or in the case of mutual influence
made, ②these transactions as a whole in order to achieve a complete business results; ③the
occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look
alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in
accordance with “without losing control over the disposal of a subsidiary part of a long-term equity
investments“principles applicable accounting treatment. Until the disposal of the equity investment
loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will
be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing
control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment
corresponding to the difference between the disposal, recognized in the consolidated financial
statements as other comprehensive income, loss of control over the transferred together with the loss
of control or loss in the period.
7.Joint venture arrangements classification and Co-operation accounting treatment
(1) Joint arrangement
A joint arrangement is an arrangement of which two or more parties have joint control，depending of
the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating
to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net
assets of the arrangement.
(2) Co-operation accounting treatment
32
When the joint venture company for joint operations, confirm the following items and share common
business interests related to:
A. Confirm individual assets and common assets held based on shareholdings;
B. Confirm individual liabilities and shared liabilities held based on shareholdings;
C. Confirm the income from the sales revenue of co-operate business output
D. Confirm the income from the sales of the co-operate business output based on shareholdings;
E. Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equi
ty investments.
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and
investments having short holding term (normally will be due within three months from the day of
purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be
measured reliably and have low risks of change.
9.Foreign Currency Transaction
(1) Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB amount
when the foreign currency transaction is initially recognized. On the balance sheet date, the monetary
items of foreign currency are translated as per the shot exchange rate on the balance sheet date, the
foreign exchange conversion gap due to the exchange rate, except for the balance of exchange
conversion arising from special foreign currency borrowings capitals and interests for the purchase
and construction of qualified capitalization assets, shall be recorded into the profits and losses of the
current period. The non-monetary items of foreign currency measured at the historical cost shall still
be translated at the spot exchange rate on the transaction date, of which the RMB amount shall not be
changed. The non-monetary items of foreign currency measured at the fair value shall be translated at
the spot exchange rate on the fair value recognized date, the gap shall be recorded into the current
profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate on the
transaction date is adopted as the translation exchange rate, with the exception of “undistributed
profits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financial
statement of foreign currency converted above shall be listed in other comprehensive incomes under
the owner’s equity in the consolidated balance sheet.
33
10. Financial instruments
Financial instruments refer to contracts that form financial assets of one party and financial liabilities
or equity instruments of other parties.
1. Confirmation and termination of financial instruments
When the company becomes a party to the financial instrument contract, the relevant financial assets
or financial liabilities are confirmed.
Confirmation of financial instruments is terminated when financial assets satisfy one of the following
conditions:
(1) The contractual right to receive cash flow from the financial asset is terminated;
(2) The financial asset has been transferred and the following conditions for derecognition of
financial asset transfer are met.
When all or part of the current obligations of financial liabilities has been removed, confirmation
of the financial instruments or part of it should be terminated. When the Company (the debtor) and
the creditors sign agreements to take on new ways to replace the existing financial liabilities with new
financial liabilities and the contract terms of existing financial liabilities and new financial liabilities
are different in essence, derecognize the current financial liabilities and recognize the new financial
liabilities. If the Company substantially amends the contract terms of the original financial liabilities
(or part thereof), it shall terminate the confirmation of the original financial liabilities and at the same
time confirm a new financial liabilities in accordance with the revised terms.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified into financial
assets measured by amortized cost, financial assets measured by fair value and whose changes are
included in other comprehensive income, and financial assets measured by fair value and whose
changes are included in current profits and losses according to the company's business mode of
managing financial assets and the contractual cash flow characteristics of financial assets.
The initial measurement of financial assets is calculated by using fair value. For financial assets
measured at fair value, whose changes are included in current profits and losses, relevant transaction
costs are directly included in current profits and losses; For other types of financial assets, relevant
transaction costs are included in the initial recognition amount.
(1) Financial assets measured in amortized cost
Financial assets of the Company that meet the following conditions at the same time are
classified as financial assets measured in amortized cost: 1) The business mode for managing the
financial assets is aimed at collecting the contract cash flow; 2) The contractual terms of the financial
asset stipulate that the cash flow generated on a specific date is only the payment of principal and
interest based on the amount of outstanding principal. For such financial assets, the interest income
recognized according to the effective interest rate method is subsequently measured according to the
amortized cost, and the gains or losses arising from amortization or impairment are included in the
current profits and losses.
(2) Financial assets measured at fair value and whose changes are included in other
comprehensive income
Financial assets of the Company that meet the following conditions at the same time are
classified as financial assets measured at fair value and whose changes are included in other
34
comprehensive income: 1) The business mode for managing the financial assets is aimed at both
collecting the contractual cash flow and selling the financial assets; 2) The contractual terms of the
financial asset stipulate that the cash flow generated on a specific date is only the payment of
principal and interest based on the amount of outstanding principal.
At the time of initial recognition, the company may designate non-trading equity instrument
investments as financial assets measured at fair value and whose changes are included in other
comprehensive income, list them as other equity instrument investments, and recognize dividend
income when the conditions are met (once the designation is made, it shall not be revoked). Dividend
income related to such financial assets is included in current profits and losses, and changes in fair
value are included in other comprehensive income. When the financial asset ceases to be recognized,
the accumulated gains or losses previously included in other comprehensive gains shall be transferred
into retained income from other comprehensive income, and not be included in current profit and
loss.
(3) Financial assets measured at fair value and whose changes are included in current profits and
losses
The Company classifies the above-mentioned financial assets measured at amortized cost and
the financial assets other than those measured at fair value and whose changes are included in other
comprehensive income as financial assets measured at fair value and whose changes are included in
current profits and losses, and lists them as transactional financial assets. In addition, at the time of
initial recognition, in order to eliminate or significantly reduce accounting mismatch, the company
designates some financial assets as financial assets measured at fair value and whose changes are
included in the current profits and losses (once the designation is made, it cannot be revoked). In
regard with such financial assets, the Company adopts fair value for subsequent measurement, and
includes changes in fair value into current profits and losses.
3. Classification and measurement of financial liabilities
The Company's financial liabilities are classified into: financial liabilities measured at amortized
cost and financial liabilities measured at fair value with changes recorded in current profits and losses
upon initial recognition. Financial liabilities are measured at fair value upon initial recognition. For
financial liabilities measured at fair value and whose changes are included in current profits and
losses, relevant transaction costs are directly included in current profits and losses, and relevant
transaction costs for other financial liabilities are included in their initial recognition amount.
(1) Financial liabilities measured in amortized cost
Except for the following items, the Company classifies financial liabilities as financial liabilities
measured in amortized cost: 1) Financial liabilities measured at fair value and whose changes are
included in current profits and losses; 2) Financial liabilities resulting from the transfer of financial
assets that do not meet the conditions for derecognition or continue to be involved in the transferred
financial assets; 3) Financial guarantee contracts that do not belong to the first two types of situations,
and loan commitments that do not belong to the first type of situations with loan at a interest rate
lower than market.
For such financial liabilities, the real interest rate method is adopted and the subsequent
measurement is carried out according to amortized cost. When derecognition is terminated, the
difference between the consideration paid and the book value of the financial liability shall be
included in the current profits and losses.
35
(2) Financial liabilities measured at fair value and whose movements are included in the profit
and loss of the current period
Such financial liabilities include: transactional financial liabilities and financial liabilities
designated to be measured at fair value at the time of initial recognition and whose changes are
included in current profits and losses. Subsequent measurement of such financial liabilities shall be
based on fair value, and the gains or losses incurred from the changes of fair value, as well as the
dividend and interest expenses related to such financial liabilities would be included in current profits
and losses.
Financial liabilities that meet one of the following conditions can be designated as financial
liabilities measured at fair value at the time of initial measurement and whose changes are included in
current profits and losses: 1) The designation can eliminate or significantly reduce accounting
mismatch; 2) According to the company's risk management or investment strategy stated in official
written documents, manage and evaluate the financial liability portfolio or the combination of
financial assets and financial liabilities on the basis of fair value, and report to key management
personnel within the company on this basis; 3) The financial liability includes embedded derivatives
that need to be split separately.
4. Fair value of financial instruments
The fair value of financial assets or financial liabilities with active markets shall be determined
based on quotations from active markets; Quotations in active markets include quotations for related
assets or liabilities that can be easily and regularly obtained from exchanges, dealers, brokers,
industry groups, pricing agencies or regulatory agencies, and can represent actual and frequent market
transactions on the basis of fair trading.
The fair value of financial assets or financial liabilities that do not exist in an active market shall
be determined by valuation techniques. In valuation, the Company adopts valuation techniques that
are applicable in the current situation and supported by sufficient data and other information to select
input values consistent with the characteristics of assets or liabilities considered by market
participants in the transactions of related assets or liabilities, and give priority to the use of relevant
observable input values as far as possible. If the relevant observable input value cannot be obtained or
is not feasible, the unobservable input value shall be used.
5. Transfer of financial assets
If the company has transferred almost all risks and rewards in the ownership of the financial
asset to the transferee, the confirmation of the financial asset shall be terminated; If almost all risks
and rewards on the ownership of a financial asset are retained, the financial asset shall continue to be
recognized.
If the Company neither transfers nor retains almost all risks and rewards in the ownership of
financial assets, it shall be handled according to the following situations respectively: (1) If the
control over the financial assets is not retained, the recognition of the financial assets shall be
terminated, and the rights and obligations arising from or retained in the transfer shall be separately
recognized as assets or liabilities; (2) If the control over the financial asset is retained, the relevant
financial asset shall continue to be recognized according to the extent that it continues to be involved
in the transferred financial asset, and the relevant liabilities shall be recognized accordingly. The
extent to which the company continues to be involved in the transferred financial assets refers to the
extent to which the company bears the risks or rewards of changes in the value of the transferred
36
financial assets.
In judging whether the financial asset transfer meets above financial asset derecognition
conditions, the principle of substance surpassing form is adopted. The Company divides the transfer
of financial assets into overall transfer and partial transfer. If overall transfer of financial assets meets
the derecognition conditions, the difference between the following two amounts will be accounted
into current profits or losses:
(1) Book value of the transferred financial assets;
(2) The sum of the consideration received due to the transfer and the accumulated amount of
changes in the fair value which is originally accounted in the owner's equity (in case the financial
asset related to the transfer is the financial asset available for sale)
Where the partial transfer of the financial assets meets the derecognition condition, the entire
book value of the transferred financial assets shall be respectively amortized at the relative fair values
of the part derecognized and the part not derecognized, and the difference between the following two
items is accounted in profits and losses of current period:
(1) Book value of the derecognised part;
(2) The sum of the derecognised part and the amount corresponding to the derecognized part in
the accumulated amount of changes in the fair value previously recognized directly in the owner's
equity (in case of the financial assets involved in the transfer are available-for-sale financial assets).
Where the transfer of the financial assets does not meet the derecognition condition, such financial
assets is recognized continuously, and the received consideration is recognized as a financial liability.
6. Provision for impairment of financial assets (excluding receivables)
Based on the expected credit losses, the Company evaluates the expected credit losses of
financial assets measured in amortized cost and financial assets measured at fair value and whose
changes are included in other comprehensive income, conducts impairment accounting and confirms
the loss reserve. Expected credit loss refers to the weighted average of the credit losses of financial
instruments weighted by the risk of default. Credit loss refers to the difference between the cash flow
of all contracts discounted according to the original real interest rate and the expected cash flow of all
contracts receivable according to the contract, that is, the present value of all cash shortages.
When one or more events that adversely affect the expected future cash flow of a financial asset
occur, the financial asset becomes a financial asset with credit impairment. Evidence of credit
impairment of financial assets includes the following observable information: (1) Major financial
difficulties of the issuer or debtor; (2) The debtor violates the contract, such as default or overdue
payment of interest or principal, etc.; (3) Creditors give concessions that the debtor will not make
under any other circumstances due to economic or contractual considerations related to the debtor's
financial difficulties; (4) The debtor is likely to go bankrupt or undergo other financial reorganization;
(5) The financial difficulties of the issuer or debtor lead to the disappearance of the active market of
the financial asset; (6) A financial asset is purchased or generated at a substantial discount, which
reflects the fact that credit losses have occurred. Credit impairment of financial assets may be caused
by the combined action of multiple events, and may not be caused by separately identifiable events.
On each balance sheet date, the Company separately measures the expected credit losses of
financial instruments at different stages. If the credit risk of financial instruments has not increased
significantly since the initial confirmation, it is in the first stage. The Company measures the loss
reserve according to the expected credit loss in the next 12 months; If the credit risk of a financial
37
instrument has increased significantly since its initial recognition but no credit impairment has
occurred, it is in the second stage. The Company measures the loss reserve according to the expected
credit loss of the instrument throughout the duration; If a financial instrument has suffered credit
impairment since its initial recognition, it is in the third stage. The Company measures the loss
reserve according to the expected credit loss of the instrument throughout the duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes
that their credit risk has not increased significantly since the initial confirmation, and measures the
loss reserve according to the expected credit loss in the next 12 months. For financial instruments in
the first and second stages and with low credit risk, the Company calculates interest income based on
the book balance before deducting impairment provisions and the actual interest rate. For financial
instruments in the third stage, the interest income shall be calculated according to their book balance
minus the amortized cost after impairment provision and the actual interest rate.
7. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately in the balance sheet without
offsetting each other. However, if the following conditions are met at the same time, the net amount
after offset shall be listed in the balance sheet: (1) The company has the legal right to offset the
confirmed amount, and such legal right is currently enforceable; (2) The Company plans to settle on a
net basis, or realize the financial assets and settle the financial liabilities at the same time.
11.Notes receivable
For bills receivable, regardless of whether they contain significant financing components, the
company always measures its loss reserves according to the amount equivalent to the expected credit
loss during the whole duration. The increase or reversal amount of loss reserves thus formed shall be
included in the current profits and losses as impairment losses or profits.
The Company only uses bank acceptance bills for settlement, and the management evaluates this
category of money as with lower credit risk. If there is objective evidence that a certain bill receivable
has suffered credit impairment, the Company will make bad debt provision for the bill receivable and
confirm the expected credit loss.
12.Account receivable
The Company shall make provision for bad debts according to the expected credit loss amount
of accounts receivable during the whole duration.
For accounts receivable with similar credit risk characteristics, the company combines them
according to the aging status. According to historical experience, the expected loss rate of such
combined accounts receivable during the whole duration is estimated as follows:
Aging Expected loss rate of accounts receivable (%)
Within 1 year（Including 1 year） 5.00
1-2 years 10.00
2-3 years 30.00
38
Over 3 years 50.00
If there is objective evidence that a certain account receivable has suffered credit impairment,
the Company will make bad debt provision for the account receivable and confirm the expected credit
loss. Accounts receivable with an amount of more than 1 million are classified as accounts receivable
with significant single amount and provision for bad debts separately, while accounts receivable with
no more than 1 million are classified as accounts receivable with insignificant single amount and
provision for bad debts separately.
13. Receivable financing
14.Other account receivable
Determination method and accounting treatment method of expected credit loss of other
receivables
For other receivables, regardless of whether with any significant financing component, the
Company considers all reasonable and reliable information, including forward-looking information,
estimates the expected credit loss of other receivables in a single or combined manner, and adopts a
simplified model of expected credit loss, and always measures the loss reserve according to the
expected credit loss throughout the duration. The accrual method is as follows:
1. At the end of the period, other receivables that have objective evidence of impairment are
individually tested for impairment, and impairment losses are recognized and provision for bad debts
is made according to the difference between the present value of expected future cash flows and their
book values.
2. When a single other receivable cannot evaluate the expected credit loss at a reasonable cost,
the Company divides other receivable portfolios according to the credit risk characteristics and
calculates the expected credit loss on the basis of the portfolios. Aging usually reflects the credit risk
status of other receivables. The larger the aging, the greater the credit risk in general. According to
historical experience, the expected loss rate of other receivables with different aging status during the
entire duration is estimated as follows:
Aging Expected loss rate of other accounts receivable (%)
Within 1 year（Including 1 year） 5.00
1-2 years 10.00
2-3 years 30.00
Over 3 years 50.00
15. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
39
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of production
or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus the
net realizable value at the balance sheet date. The net realizable value refers to the amounts that the
estimated sale price of inventory minus the estimated costs ready to happen till the completion of works,
the estimated selling expenses and the relevant expenses of taxation. The company shall recognize the
net realizable value of inventory based on the acquired unambiguous evidence and in view of the
purpose to hold the inventory, the influence of matters after the balance sheet date and other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of
the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses of
taxation during the process of normal production and operation. The net realizable value of inventory
that required to conduct processing shall be recognized according to the amounts of the estimated sale
price of the finished products minus the estimated costs ready to happen till the completion of works,
the estimated selling expenses and the relevant expenses of taxation. On the balance sheet date, the net
realizable value shall be respectively defined for the partial agreed with the contract price and others
without the contract price in the same inventory, and the amounts of the inventory falling price reserves
withdrawn or returned shall be respectively recognized in comparison with their corresponding costs.
4. Inventory System
Adopts the Perpetual Inventory System
5．Amortization method for low cost and short-lived consumable items and packaging materials
Low cost and short-lived consumable items are amortized using immediate write-off method。
16.Contract assets
Not applicable
17.Contract cost
Not applicable
18.Held-for-sale assets
If the company recovers its book value mainly by sale of non-current asset (including exchange of
40
non-monetary assets of commercial nature and similarly hereinafter) , instead of continued use of one
non-current asset or disposal group, which shall be included into available-for-sale. In specific
standards, the following conditions shall be met at the same time: One non-current asset or disposal
group is available for sale at all times under current status depending on standard practice of selling
them in similar transactions; the company has made a resolution on the sale plan and gained definitive
purchase commitments; the sale is expected to be finished within one year. In which, the disposal group
refers to one set of assets that may be disposed as a whole along with other assets by sale or other ways
in one deal and the liability transferred and related directly to such assets. If the asset group or
combination of asset group under account title disposal group amortizes the goodwill obtained from
business combination in accordance with No.8 of Accounting Standards for Business Enterprises--
Asset Impairment, the disposal group shall include the goodwill amortized to it.
When the company’s initial measurement or re-measurement on the balance sheet date is
classified into available-for-sale non-current asset and disposal group, the book value shall be written
down to the net amount of fair value minus selling expenses if it is higher than the net amount of fair
value minus selling expenses, the write-down shall be confirmed as the assets impairment loss and
included in current profits and losses, meanwhile the available-for-sale asset depreciation reserves shall
be accrued. For the disposal group, the asset impairment loss shall be written off pro rata the book value
of each non-current asset that is applicable to No.42 of Accounting Standards for Business Enterprises:
Available-for-sale Non-current Assets, Disposal Group and Discontinued Operations (hereinafter
referred to as “Available-for-sale rule for measurement”) after deducting the book value of goodwill in
it.
If the net amount of the fair value of available-for-sale disposal group minus selling expenses
increases after the balance sheet date, the previous write-downs shall be recovered and reversed in asset
impairment loss of non-current assets that are applicable to available-for-sale rule for measurement
after being included into available-for-sale account title, the amount of reversal shall be included in
current profits and losses and increased pro rata its book value based on the proportion of the book
value of each non-current asset in the disposal group that is applicable to available-for-sale rule for
measurement except for goodwill; the book value of written-off goodwill and the asset impairment loss
confirmed before the non-current asset specified in available-for-sale rule for measurement is classified
into available-for-sale asset must not be reversed.
The available-for-sale non-current assets or the non-current assets in the disposal group shall not
be accrued depreciation or amortization, the interest of debit in available-for-sale disposal group and
other expenses shall continue to be confirmed.
The non-current asset will no longer be included into available-for-sale category or will be
removed from the available-for-sale disposal group if it or the disposal group has no longer satisfied the
conditions for classifying available-for-sale assets and measured as per the lower of: (1) book value of
the non-current asset before being classified into available-for-sale asset adjusted on the basis of the
depreciation, amortization or impairment that shall be confirmed on the assumption that the
non-current asset is not included into available-for-sale account title; (2)Recoverable amount.
41
19.Creditor's rights investment
Not applicable
20. Other Creditor's rights investment
Not applicable
21.Long-term account receivable
Not applicable
22.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has
control, joint control or significant influence over the long-term equity investments. The Company
invested does not have control, joint control or significant influence over the long-term equity
investments as financial assets available for sale or at fair value and the changes included financial
assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations
are common, related activities and the arrangement must be after sharing control participants agreed
to the decision-making. Significant influence is the Company s financial and operating policies of the
entity has the right to participate in decision-making, but can not control or with other parties joint
control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common
control is measured at the acquirer's share of the combination date book value of the acquiree's net
equity in the ultimate controller's consolidated financial statements. The difference between the cost
and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is
transferred by way of issuing equity instruments, the face value of the equity instruments issued is
recognised in share capital and the difference between the cost of the face value of the equity
instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is
insufficient. The cost of a long-term equity investment acquired through business combination not
under common control is the fair value of the assets transferred, liabilities incurred or assumed and
equity instruments issued. (For the equity of the combined party under common control obtained
step-by-step through multiple transactions and the business combination under common control
ultimately formed, the company should respectively dispose all the transactions if belong to the
package deal. For the package deal, all the transactions will be conducted the accounting treatment as
the deal with acquisition of control. For the non-package deal, the shares of the book value of the
stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements of
the ultimate control party shall be as the initial investment cost of the long-term equity investment,
and the capital reserves shall be adjusted for the difference between the initial investment cost of
long-term equity investment and the sum of the book value of long-term equity investment before
42
merging and that of new consideration payment obtained on the merger date, or the retained earnings
shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held
before the merger date, the accounting treatment will not be conducted temporarily for other
comprehensive income accounted by equity method or confirmed for the financial assets available for
sale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not
under the same control through gaining the shares of the combined enterprise by multiple steps of
deals, it shall deal with it in the following two ways depending on that if it belongs to "a package
deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control
power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally held
by this enterprise accounted for by weighted equity method, the relevant other comprehensive income
shall not be accounted for temporarily. If the equity investment held originally can be classified as the
financial assets for sale, the difference between the fair value and the book value, and the variation in
the accumulative fair value of other comprehensive returns recorded originally will be transferred into
the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on
initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash
paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the
assets given away in the case of non-monetary asset exchange, or the fair value of the relevant
long-term equity investments. The cost of acquisition of a long-term equity investment acquired not
through business combination also includes all directly associated expenses, applicable taxes and fees,
and other necessary expenses. When the significant impact or the joint control but non-control on the
invested party can be implemented due to the additional investment, the long-term equity investment
cost is the sum of the fair value of the equity investment originally held and the new investment costs
based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments
significant influence are accounted for using the equity method. In addition, the Company's financial
statements using the cost method of accounting for long-term equity can exercise control over the
investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except
for cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized in
43
the period in accordance with the attributable share of cash dividends or profit distributions declared
by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the
investor's net identifiable assets of the fair share of the investment value, do not adjust the initial inve
stment cost of long-term equity investment; the initial investment cost is less than the investee unit sh
are of identifiable net assets at fair value, the difference is recognized in profit or loss, while the long-
term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s
interest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity
investment measured using the equity method is adjusted by the Company's share of the investee's net
profit and other comprehensive income, which is recognised as investment income and other
comprehensive income respectively. The carrying amount of an long-term equity investment
measured using the equity method is reduced by profit distribution or cash dividends announced by
the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive
income and profit distribution, which is adjusted to capital reserves。The net profit of the investee is
adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements
and hence the net profit and other comprehensive income of an investee which does not adopt
accounting policies or accounting period uniform with the Company is adjusted by the Company's
accounting policies and accounting period. The Company's share of unrealised profit or loss arising
from related party transactions between the Company and an associate or joint venture is deducted
from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted.
Where assets transferred to an associate or joint venture which form part of the Company's
investment in the investee but which does not enable the Company obtain control over the investee,
the cost of the additional investment acquired is measured at the fair value of assets transferred and
the difference between the cost of the additional investment and the book value of the assets
transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture
form an operation, the difference between the consideration received and the book value of the assets
transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture
form an operation, the transaction is accounted for in accordance with CAS 20 - Business
Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the
long-term equity investment and other net long-term investments in the investees. Where the
Company has obligation to share additional net loss of the investee, the estimated share of loss
recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of
loss of the investee when the investee generates net profit, the Company's unrecognised share of loss
is reduced by the Company's share of net profit and when the Company's unrecognised share or loss
is eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
(3)Acquisition of minority interest
44
The difference between newly increased equity investment due to acquisition of minority interests
and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital
reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against
returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control,
the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies
in Note applies. For disposal of long-term equity investments in any situation other than the
fore-mentioned situation, the difference between the book value of the investment disposed and the
consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit
distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part
disposal of the investment, cumulative other comprehensive income relevant to the investment
recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant
assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit,
other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the
disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the
investment, cumulative other comprehensive income relevant to the investment recognised, as a result
of accounting by equity method or recognition and measurement principles applicable to financial
instruments, prior to the Company's acquisition of control over the investee is treated in the same
manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss
proportionate to the disposal.The investee's equity movement other than net profit, other
comprehensive income and profit distribution, as a result of accounting by equity method, is
reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company continues to have significant influence over the investee after the partial
disposal, the investment in measured by the equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment
in the investee and the Company ceases to have significant influence over the investee after the
partial disposal, the investment in measured in accordance with the recognition and measurement
principles applicable to financial instruments in the Company's separate financial statements and the
difference between the fair value and the book value of the remaining investment at the date of loss of
control is recognised in profit or loss. Cumulative other comprehensive income relevant to the
investment recognised, as a result of accounting by equity method or recognition and measurement
principles applicable to financial instruments, prior to the Company's acquisition of control over the
investee is treated in the same manner that the investee disposes the relevant assets or liabilities on
the date of loss of control. The investee's equity movement other than net profit, other comprehensive
income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
45
loss when control is lost. Where the remaining investment is measured by equity method, the
fore-mentioned other comprehensive income and other equity movement are recognised in profit or
loss proportionate to the disposal; Where the remaining investment is measured in accordance with
the recognition and measurement principles applicable to financial instruments, the fore-mentioned
other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial
disposal of investment in the investee,the remaining investment in the investee is measured in
accordance with the recognition and measurement principles applicable to financial instruments, the
difference between the fair value and the book value of the remaining investment at the date of loss of
joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive
income relevant to the investment recognised, as a result of accounting by equity method, prior to the
partial disposal is treated in the same manner that the investee disposes the relevant assets or
liabilities on the date of loss of joint control or significant influence. The investee's equity movement
other than net profit, other comprehensive income and profit distribution is reocgnised in profit or
loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple
disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single
transaction which result in the Company's loss of control over the investee. Each difference between
the consideration received and the book value of the investment disposed is recognised in other
comprehensive income and reclassified in full to profit or loss at the time when control over the
investee is lost.
23.Investment property
The measurement mode of investment property
The company shall adopt the cost mode to measure the investment property.
Depreciation or Amortization Method by Use of Cost Mode
1．The measurement mode of investment property
The investment property of the company includes the leased land use rights, the leased buildings, the
land use rights held and prepared to transfer after appreciation.
The company shall adopt the cost mode to measure the investment property.
2. Depreciation or Amortization Method by Use of Cost Mode
The leased buildings of the investment property in the company shall be withdrawn the depreciation
by the service life average method, and the depreciation policy is the same with that of the fixed
assets. The land use rights held and prepared to transfer after appreciation in the investment property
shall be amortized by the line method, and the specific accounting policy is same with that of the
intangible assets.
46
24.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one fiscal
year. The fixed assets can be recognized when the following requirements are all met: (1) the
economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed
assets can be measured reliably. The fixed assets of the company include the houses and buildings,
the decoration of the fixed assets, the machinery equipment, the transportation equipment, the
electronic instrument and other devices.
2．The method for depreciation
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
House and Straight-line method
Building- 35 years 4% 2.74%
Production
House and Building-Non- Straight-line method
40 years 4% 2.40%
Production
Decoration of Fixed Straight-line method
10 years 10.00%
assets
Machinery and Straight-line method
10-14 years 4% 9.60%-6.86%
equipment
Transportation Straight-line method
8 years 4% 12.00%
equipment
Electronic equipment Straight-line method 8 years 4% 12.00%
Other equipment Straight-line method 8 years 4% 12.00%
3．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met: ① the
ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term. ②
the tenant has the option to purchase the leasing assets, and the made purchase price is expected to be
far less than the fair value of the leasing assets in the implementation of the option. Thus, it can be
reasonably recognized that the tenant will implement the option on the lease date. ③ the ownership
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of assets is not transferred, but the lease term shall be the most of the life of the lease assets. ④ the
least present value of the lease payment of the tenant and the least present value of the lease receipts
on the lease date almost equal to the fair value of the leasing assets on the lease date respectively. ⑤
the leasing assets have the special nature, and only the tenant can use if there is no major
modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance
leases shall be book kept according to the lower between the fair value of the leasing assets and the
least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be
withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own
fixed assets.
25.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measured
according to the actual cost occurred before the assets are built to achieve the expected usable
condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual
project costs when the expected usable condition achieved. For the expected usable condition achieved
while the final accounts for completed projects not handled yet, the projects shall be transferred into the
fixed assets as per the estimated value. After the final accounts for completed projects handled, the
original estimated value shall be adjusted as per the actual cost, but the original withdrawn depreciation
shall not be adjusted again.
26.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or
production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of
related asset. Other borrowing expenses are recognized as expenses according to the occurred amount,
and accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted by activities other than those necessary
to prepare the asset for its intended use or sale, when the interruption is for a continuous period of
more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the
current period until the acquisition, construction or production is resumed.
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（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
special borrowings actually occurred during the current period (including the amortization of discount
or premium recognized as per the effective interest method) minus the interest income acquired after
the borrowings deposit in bank or the investment income obtained from the temporary investment. For
the general borrowings for the purchase and construction of qualified assets, the capitalized interest
amount of the general borrowings shall be computed and recognized according to the weighted average
of accumulative asset expense beyond the expense of the special borrowings, multiplying the
capitalization rate of general borrowings.
27.Biological Assets
Not applicable
28.Oil & Gas assets
Not applicable
29. Right to use assets
Not applicable
30.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software,
which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the
intangible assets. For the finite service life of the intangible assets, the years of service life or the
quantity of service life formed and the number of similar measurement unit shall be estimated. If the
term of economic benefits of the intangible assets brought for the company is not able to be foreseen,
the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the
following factors to estimate the service life: ① the normal service life of products produced with the
assets, and the acquired information of the service life of similar assets. ② the estimation of the
current stage conditions and the future development trends in the aspects of technology and craft. ③
the demand of the products produced by the assets or the offered services in the market. ④ the
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expectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the
relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term of the
assets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of
other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and
Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the
company, or the indefinite term of intangible assets recognized as the indefinite service life of
intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights,
but the indefinite service life of contract provision or legal provisions. ② unable to judge the term of
economic benefits brought by the intangible assets for the company after the integration of
information in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with
the indefinite service life, and the relevant department that uses the intangible assets, shall conduct
the basic review by the method from up to down, in order to evaluate the judgment criteria of the
indefinite service life if there is the change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangible
assets during the service life, and the line method shall be adopted to amortize for the intangible
assets unable to reliably recognize the expected implementation mode. The specific service life is as
follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall make
the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance sheet
date, the corresponding impairment provision shall be withdrawn according to the difference between
the book value and the recoverable amount. The intangible assets with the indefinite service life and
without the usable condition shall be conducted the impairment test every year whether the impairment
exists.
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2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded
into the current profits and losses when occurring. The expenditure for internal research and
development project in the development stage shall be recognized as the intangible assets when the
following requirements are simultaneously met: (1) the completion of the intangible assets is
available for use or sale, and feasible in the technology. (2) the intention to complete the intangible
assets and use or sale. (3) the method for the economic benefits produced by the intangible assets,
including the evidence that shows there exists the market for the products generated from the
intangible assets or the intangible assets have the market. The intangible assets are used internally
which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability to
use or sell the intangible assets. (5) the expenditure belong to the development stage of the intangible
assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the research
stage and the development stage of the company is as follows: (1) the investigation stage planned to
obtain the new technology and knowledge, shall be recognized as the research stage, which has the
features of planning and exploration. (2) before the commercial manufacture and use, the research
results or other knowledge should be applied for the plan or design, in order to produce the new or
improved stages with substantial materials, devices and products, which should be recognized as the
development stage, and this stage has the features of pertinence and more possibility to create the
achievement.
31.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment,
the investment property measured by the cost mode, the fixed assets and the projects under
construction if there is possible impairment on the balance sheet date. If there exists the evidence
shows that the long-term assets have the impairment, the impairment test should be conducted, and
the recoverable amount should be estimated. The impairment shall be confirmed if there exists after
the comparison of the estimated recoverable amount of the assets and its book value, and if the assets
impairment provision shall be withdrawn to recognize the corresponding impairment losses. The
estimation of the recoverable amount of assets should be confirmed according to the higher one
between the net amount of the fair value minus the disposal costs and the present value of the cash
flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by the
business combination and the intangible assets with the indefinite service life whether there exists the
impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future
accounting period.
32.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and
subsequent period (together of more than one year).
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The long-term unamortized expense shall be book kept as per the actual amount occurred, and shall
be averagely amortize within the benefit period or the specified period. If the long-term unamortized
expense can’t make the benefits for the future accounting period, the amortized value of the
unamortized project shall all be transferred into the current profits and losses.
33.Contract liabilities
Not applicable
34.Remuneration
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual
short-term compensation as the liability and record into the current profits and losses or the relevant
assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the
fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit
plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on
the balance sheet date during the accounting period, shall be recognized as the liability, and recorded
into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution
plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and
mutually consistent actuarial assumptions to make evaluation of demographic variables and financial
variables, measure and define the obligations arising from the benefit plan, and determine the period of
the relevant obligations. The company shall discount all the defined benefit plan obligations, including
the obligation within twelve months after the end of the annual report during the expected services
provision of employee. The discount rate adopted in discounting shall be recognized according to the
bonds matched with the defined benefit plan obligation term and the currency at the balance sheet date
or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present
value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are
recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of
the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper limit
of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of assets
refers to the present value of economic benefits obtained from the refund of the defined benefit plans or
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the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are
recognized as the service costs, the net interests on the net liabilities or the net assets of the defined
benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan
that re-measured. Of which, the service costs and the net interests on the net liabilities or the net assets
of the defined benefit plan shall be recorded into the current profits and losses or the relevant assets
costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured shall be recorded into other comprehensive incomes, which should not be switched back
to the profits and losses during the subsequent accounting period, but the amount recognized from other
comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the
early date and recorded into the current profits and losses: (1) when the company can’t withdraw the
demission welfare provided due to the rundown suggestion or the termination of labor relations plans.
(2) when the company recognizes the costs or the expenses related to the reorganization of demission
welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the
termination of labor relations plans at its side and when the costs relevant to the recombination of
dismission welfare payment, shall be recognized as the liabilities arising from the compensation due
to the termination of labor relations with staff and shall be recorded into the current profits and losses.
Then company shall reasonably predict and recognize the payroll payable arising from the dismission
welfare. The dismission welfare, which is expected to finish the payment within twelve months after
the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation. The dismission welfare, which is expected to be unfinished for the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of
short-term compensation, shall apply to the provisions related to other long-term employee benefits.
4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of
the defined contribution plan, the accounting treatment shall be made in accordance with the defined
contribution plan. Except for these, other long-term benefits shall be made the accounting treatment
according to the defined benefit plan, but the changes arising from the re-measurement of net
liabilities or net assets of other long-term employee benefits shall be recorded into the current profits
and losses or the relevant assets costs.
35.Lease liabilities
Not applicable
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36. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of
the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the
expenditure required to settle the present obligation. There is the continuous scope for the required
expenditure, and the best estimate with the same possibilities resulted from various outcomes within
the scope shall be recognized as per the intermediate value. The best estimate should be recognize
according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters
involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are
matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are
compensated by the third party or other parties, the compensation amount should be separately
recognized as the assets when the receipt of the compensation amount is basically determined.
Meanwhile, the determined compensation amount shall not exceed the book value of the estimated
liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If
there is conclusive evidence that the book value cannot really reflect the current best estimate, the
adjustment shall be made for the book value in accordance with the current best estimate.
37. Share payment
1.Accounting Treatment Methods of Share Payment
Share payment is a transaction which is for obtaining the service provided by employees or other
parties, where thus the equity instrument is granted , or for bearing the liability confirmed basing on
the equity instrument. Share payment is divided into the payment settled by equities and the payment
settled by cash.
(1)Shared Payment settled by Equities
The share payment settled by equities, which is used for exchanging the service provided by
employees, will be measured according to the fair value of the equity instrument granted to
employees on date of grant. The amount of such fair value, under the situation that the rights can only
be exercised after the service is finished and the set performance is achieved within the waiting
period, and basing on the optimum estimation for the number of equity instrument which exercise
rights within the waiting period, will be measured according to straight-line method and counted into
relevant costs and expenses. When the rights can be exercised immediately after being granted, the
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payment will be counted into relevant costs and expenses, and the capital reserve will be increased
correspondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum
estimations according to the newly-obtained subsequent information after the changes occurred in the
number of employees who exercise rights so as to modify the predicted number of the equity
instrument of exercising rights. The influence from above-mentioned estimations will be counted into
relevant costs and expenses at the current period, and the corresponding adjustment will be made for
the capital reserve.
If the fair value of the other parties’ service can be reliably measured, the share-based payment settled
by equities which is used for exchanging the service of other parties will be measured according to
that fair value on date of acquisition. If not, but the fair value of the equity instrument can be reliably
measured, the payment will be counted according to the fair value of the equity instrument on date of
service acquisition, and it will be counted into relevant costs and expenses, and the equity of the
shareholders will be increased correspondingly.
(2) Share Payment settled by Cash
The share payment settled by cash will be measured according to the fair value of the liability
confirmed basing on the shares borne by the Company and other equity instruments. If the rights can
be exercised immediately after being granted, the payment will be counted into relevant costs or
expenses and the liability will be increased correspondingly. If the rights can only be exercised after
the situation that service within the waiting period is completed and set performance is achieved, the
service obtained at the current period,according to the fair value amount of the liability borne by the
Company, and basing on the optimum estimation for the condition of exercising rights, will be
counted into costs or expenses on each and every balance sheet date during the waiting period, and
the liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair
value of liability will be remeasured, of which changes occurred will be counted into the current
period.
2.Relevant Accounting Treatment of Modification and Termination for Share-based Payment
Plan
When the Company modifies the share payment plan, if the fair value of the equity instrument
granted is increased after the modification, the increase in the service obtained will be
correspondingly confirmed according to the increase in the fair value of equity instrument. The
increase in the fair value of equity instrument means the balance between the equity instrument
before modification and the equity instrument after modification on modification date. If decrease
occurred in the total fair value of the equity instrument after the modification or methods which are
unbeneficial to employees are adopted in the modification, accounting treatment will still continue to
be made for the service obtained, and such changes will be regarded as changes that have never
occurred unless the Company has canceled partial or all equity instruments.
During the waiting period, if the granted equity instrument is cancelled, the company will treat
the cancelled equity instrument as the accelerated exercise of power, and immediately include the
balance that should be recognized in the remaining waiting period into the current profit and loss, and
simultaneously confirm the capital reserve. If the employee or other party can choose to satisfy the
non-exercisable condition but not satisfied in the waiting period, then the company will treat it as
cancellation of the granted equity instrument.
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3. Accounting treatment involving the share payment transaction between the Company and the
shareholders or the actual controller of the Company
Where involves the share payment transaction between the Company and the shareholders or the
actual controller of the Company and one of the parties of the settlement company and the
service-accepting company is within the company and the other is not within the company, then the
company performs the accounting treatment in the consolidated financial statements of the company
according to the following provisions:
(1) If the settlement company settles in its own equity instrument, then it treats the equity
payment transaction as the equity-settled equity payment; otherwise, it treats as the cash-settled
equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized
as a long-term equity investment in the service-accepting company in accordance with the fair value
of the equity instrument or the fair value of the liability it is assumed to bear on the grant date, and
the capital reserve (other capital reserve) or liabilities shall be recognized at the same time.
(2) If the service-accepting company has no settlement obligation or confers its own equity tools
on the employees of the company, then such equity payment transaction shall be treated as
equity-settled equity payment; if the service-accepting company has the settlement obligation and
confers the employees of the company with not its own equity instrument, then such equity payment
transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company,
and the service-accepting company and the settlement company are not the same company, then the
confirmation and measurement of the equity payment transaction shall be carried out respectively in
the financial report of the service-accepting company and the settlement company, with the same
analogy of the above-said principle.
38. Other financial instruments such as preferred stocks and perpetual bonds
Not applicable
39. Revenue
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
□ Yes √No
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met
simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the
continual management rights related to ownership no longer retained by the company and the effective
control of the sold goods no longer implemented, the reliable measurement of the revenue amount, the
possible inflow of the relevant economic benefits, and the reliable measurement of the relevant costs
incurred or to be incurred.
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(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the
reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits, the
reliable recognition of the completion schedule of transaction, and the reliable measurement of the
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
service incomes according to the completion percentage method and recognized the completion
schedule of the provided service transaction according to the proportion of the costs occurred
accounting for the total estimated costs. If the provided services transaction results cannot be reliably
estimated at the balance sheet date and the occurred service costs can be expected to have
compensation, the company shall recognize to provide the service revenue according to the occurred
service cost amount and transfer the service costs as per the same amount. If the occurred service costs
cannot be expected to have compensation, the occurred service costs shall be recorded into the current
profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation of the
right to use assets meets the requirements of the possible inflow of the relevant economic benefits and
the reliable measurement of revenue amount. The interest income shall be calculated and determined
according to time and actual interest rate of the monetary capital of the company used by others, and
the royalty revenue shall be measured and determined in accordance with the charging time and
method appointed in the relevant contract or agree.
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of
products in domestic market shall be recognized after the following requirements are met: The
company has agreed to deliver the goods to the purchaser under the contract and the revenue
amount of product sales has been determined, the payment for goods has been withdrawn or the
payment vouchers has been obtained and related economic benefits are likely to inflow, and the
costs related to the products can be measured reliably. The revenue of the sale of products in
foreign market shall be recognized after the following requirements are met: The company has
made customs clearance and departure from port under the contract, the bill of landing has obtained
and the revenue of the sale of products has been recognized, the payment for goods has been
withdrawn or the payment vouchers has been obtained and related economic benefits are likely to
inflow, and the costs related to the products can be measured reliably.
40.Government subsidy
Government grants are monetary assets and non-monetary assets that the company has obtained
free of charge from the government and are divided into government grants related to assets and
government grants related to income. Asset-related government grants refer to government grants
obtained by the company that are used to purchase or construct or otherwise form long-term assets.
Income-related government subsidies refer to government subsidies other than government subsidies
related to assets.
If there is evidence at the end of the period that the company is able to meet the relevant conditions
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stipulated in the financial support policy and it is expected to receive financial support funds, the
government subsidies shall be recognized according to the amount receivable. In addition, government
grants are confirmed upon actual receipt.
Asset-related government grants are recognized as deferred income and are charged to profit or
loss for the current period in a reasonable and systematic manner over the useful life of the relevant
assets. Revenue-related government subsidies, which are used to compensate for the related costs or
losses of the Company in the future period, are recognized as deferred income, and are recognized in
the profits and losses of the current period in the period in which the relevant costs, expenses or losses
are recognized. The relevant costs, expenses or losses that have been used to compensate the Company
have been directly recorded in the current profits and losses. Government grants related to the
company's daily activities are included in other income; those unrelated to the daily activities of the
company are included in non-operating income.
For the policy-subsidized discounted loans obtained by the company, the accounting treatment is
divided into the following two cases: when the finance allocates the interest-subsidy funds to the loan
bank and the loan bank provides the company with a policy-based preferential interest rate, the
company uses the actual amount of the loan received as the entry value of the loan, and calculates the
relevant borrowing costs according to the loan principal and the preferential policy interest rate; if the
finance allocates the interest-free funds directly to the company, the company will reduce the relevant
borrowing costs by the corresponding discount interest.
41.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax
basis, and the difference of the book value and the tax basis that no confirmation of assets and
liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference
can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company
shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce
the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or
liabilities in the transaction shall not be recognized: (1) the transaction is not the business
combination. (2) the transaction doesn’t influence the accounting profits and the taxable incomes (or
the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the
following requirements are simultaneously met: (1) the temporary difference is possible to be
reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary
difference is possible to be obtained in the future.
3. Recognition Basis of Deferred Tax Liabilities
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All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following
transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial
recognition of assets or liabilities arising from the transactions with the following features: this
transaction is not the business combination, and the transaction doesn’t influence the accounting
profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except
that the following requirements are simultaneously met: (1) the investment enterprise can control the
reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed
in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is
not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax
assets in the future, the book value of the deferred tax assets shall be deduced. Except that the
deferred tax assets and the reduction amount are recorded into the owner’s equity when the original
recognition, others shall be recorded into the current income tax expense. The book value of the
deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the
transactions and items directly recorded into the stockholders’ equity, shall be recorded into other
comprehensive incomes or the stockholders’ equity, and the book value of goodwill shall be adjusted
by the deferred income tax arising from the business combination, but the rest of the current income
tax and the deferred income tax expense or income shall be recorded into the current profits and
losses.
42.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant
assets cost or recognized as the current profits and losses as per the line method, and the initial direct
expense occurred shall be directly recorded into the current profit and loss. The contingent rental shall
be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current
profits and losses as per the line method, and the initial direct expense occurred shall be directly
recorded into the current profit and loss, except that the large amounts are capitalized and recorded
into the profit and loss by stages. The contingent rental shall be recorded into the current profit and
loss once the actual occurrence.
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2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value of
leasing assets and the present value of minimum lease payment at the lease commencement date as the
book value of rented assets, recognize the minimum lease payment as the book value of the long-term
payables, and the undetermined fiancéexpense of the difference and the initial direct costs occurred
shall be recorded into the leasing asset value. During each lease period, the current financing charges
shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease
receivables and initial direct expense at the lease commencement date as the book value of finance
lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall
recognize the difference between the sums of minimum lease receivables, minimum lease receivables
and unguaranteed minus the sum of the present value as the unrealized financing income. During each
lease period, the current financing charges shall be measured and recognized by the effective interest
method.
43. Other important accounting policies and accounting estimates
Nil
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
√ Applicable □Not applicable
Approval
The content and reason for change of accounting policy Remarks
process
In 2017, the Ministry of Finance revised and promulgated the Accounting Standards for
Business Enterprises No.22-Recognition and Measurement of Financial Instruments,
Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets,
Adopted
Accounting Standards for Business Enterprises No.24-Hedge Accounting and Accounting
at the
Standards for Business Enterprises No.37-Presentation of Financial Instruments (the above http://www.cninfo.com.cn
18th
four standards are collectively referred to as the "New Financial Instruments Standards"), On April
meeting
requiring enterprises listed both in China and abroad at the same time, as well as enterprises 27,2019(Announcement
of the 7th
listed abroad and using International Financial Reporting Standards or Accounting Standards No.2019-17)
Board of
for Business Enterprises to prepare financial reports, to implement them on January 1, 2018;
Directors
Other domestic listed enterprises are required to implement them on January 1, 2019.
According to the regulations, the company will implement the new financial instrument
standards from January 1, 2019 and adjust the relevant contents of accounting policies.
On April 30, 2019, the Ministry of Finance issued the Notice on Revising and Issuing the Adopted
http://www.cninfo.com.cn
Format of Financial Statements for General Enterprises in 2019 (CK [2019] No.6) at the
On August
(hereinafter referred to as "CK [2019] No.6"), requiring non-financial enterprises that 20th
21,2019(Announcement
implement the Accounting Standards for Enterprises to prepare financial statements in meeting
No.2019-38)
accordance with the requirements of the Accounting Standards for Enterprises and CK [2019] of the 7th
60
No.6. The interim financial statements and annual financial statements for enterprises in 2019 Board of
and the financial statements for subsequent periods shall be prepared and implemented in Directors
accordance with the requirements of CK [2019] No.6.
The Company will implement the new financial instrument standards from January 1, 2019. For
the impact on the items related to the financial statements at the beginning of the year, please refer to
the following "(3) Implementation of the adjustment of the new financial instrument standards, new
income standards and new lease standards for the first time, and implementation of the items related
to the financial statements at the beginning of the year for the first time".
Since the semi-annual financial report on June 30, 2019 and the financial reports for the
following periods, the company has implemented the requirements of the CK [2019] No.6, and
restated the items and amounts of the initial financial statements as follows:
The specific contents of accounting policy changes Name of Financial Statement At the beginning of the consolidated balance
Items Affected sheet or the impact amount of the
consolidated income statement in the same
period last year (RMB)
The company will split "notes receivable and Notes receivable 886,432.06
accounts receivable" into "accounts receivable" and Account receivable 528,454,015.59
"notes receivable" for listing. Notes receivable and account -529,340,447.60
receivable
The company will split "notes payable and Notes payable
accounts payable" into "accounts payable" and Account payable 180,239,452.00
"notes payable" for listing. Notes payable and account -180,239,452.00
receivable
Except for the above matters, the company's important accounting policies have not changed.
（2）Change of main accounting estimations
□ Applicable √Not applicable
（3）Implementation of the adjustment of the new financial instrument standards, new income
standards and new lease standards for the first time, and implementation of the items related to the
financial statements at the beginning of the year for the first time
√ Applicable □Not applicable
Consolidated balance sheet
In RMB
Items December 31,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 1,141,759,374.60 1,141,759,374.60
Settlement provision
61
Outgoing call loan
Transactional financial assets 540,000,000.00 540,000,000.00
Financial assets measured
at fair value with variations
accounted into current
income account
Derivative financial assets
Notes receivable 886,432.06 886,432.06
Account receivable 528,454,015.59 528,454,015.59
Financing of receivables
Prepayments 229,028,791.15 229,028,791.15
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Other account
14,846,896.50 14,846,896.50
receivable
Including：Interest
5,589,704.44 5,589,704.44
receivable
Dividend
receivable
Repurchasing of
financial assets
Inventories 439,752,718.77 439,752,718.77
Contract assets
Assets held for sales
Non-current asset due within
1 year
Other current asset 639,797,959.30 99,797,959.30 -540,000,000.00
Total of current assets 2,994,526,187.97 2,994,526,187.97
Non-current assets：
Loans and payment on
other’s behalf disbursed
Debt investment
Available for sale of
45,373,784.87 -45,373,784.80
financial assets
Other investment on
bonds
62
Expired investment in
possess
Long-term receivable
Long term share equity
32,952,085.66 32,952,085.66
investment
Other equity instruments
241,875,289.00 241,875,289.00
investment
Other non-current financial
assets
Property investment 167,997,941.98 167,997,941.98
Fixed assets 987,876,247.55 987,876,247.55
Construction in progress 15,621,286.64 15,621,286.64
Production physical
assets
Oil & gas assets
Use right assets
Intangible assets 37,880,815.85 37,880,815.85
Development expenses
Goodwill
Long-germ expenses to be
1,486,209.03 1,486,209.03
amortized
Deferred income tax asset 6,036,198.23 6,036,198.23
Other non-current asset 329,452,659.01 329,452,659.01
Total of non-current assets 1,624,677,228.82 1,821,178,732.95 196,501,504.13
Total of assets 4,619,203,416.79 4,815,704,920.92 196,501,504.13
Current liabilities
Short-term loans 411,522,111.40 411,522,111.40
Loan from Central Bank
Borrowing funds
Transactional financial
liabilities
Financial liabilities measured
at fair value with variations
accounted into current
income account
Derivative financial
liabilities
Notes payable
63
Account payable 180,239,452.90 180,239,452.90
Advance receipts 120,702,951.37 120,702,951.37
Selling of repurchased
financial assets
Deposit taking and
interbank deposit
Entrusted trading of
securities
Entrusted selling of securities
Employees’ wage payable 32,506,267.08 32,506,267.08
Tax payable 7,745,128.99 7,745,128.99
Other account
229,015,279.98 229,015,279.98
payable
Including：Interest
39,044,044.39 39,044,044.39
payable
Dividend
payable
Fees and commissions
payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due
40,000,000.00 40,000,000.00
within 1 year
Other current liability
Total of current liability 1,021,731,191.72 1,021,731,191.72
Non-current liabilities：
Reserve fund for
insurance contracts
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term
payable
64
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 137,991,698.33 137,991,698.33
Deferred income tax
49,125,376.03 49,125,376.03
liability
Other non-current liabilities
Total non-current liabilities 137,991,698.33 187,117,074.36 49,125,376.03
Total of liability 1,159,722,890.05 1,208,848,266.08 49,125,376.03
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,865,716,983.63 1,865,716,983.63
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 1,339,208.41 148,715,336.51 147,376,128.10
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Common risk provision
Retained profit -57,774,473.41 -57,774,473.41
Total of owner’s equity
2,373,329,991.86 2,520,706,119.96 147,376,128.10
belong to the parent company
Minority shareholders’ equity 1,086,150,534.88 1,086,150,534.88
Total of owners’ equity 3,459,480,526.74 3,606,856,654.84 147,376,128.10
Total of liabilities and
4,619,203,416.79 4,815,704,920.92 196,501,504.13
owners’ equity
Balance sheet of Parent Company
In RMB
Items December 31,2018 January 1,2019 Adjustment amount
Current asset：
Monetary fund 85,416,567.74 85,416,567.74
Transactional financial assets 500,000,000.00 500,000,000.00
65
Financial assets measured
at fair value with variations
accounted into current
income account
Derivative financial assets
Notes receivable
Account receivable 541,948.21 541,948.21
Financing of receivables
Prepayments 17,436.00 17,436.00
Other account receivable 13,856,382.02 13,856,382.02
Including：Interest
4,974,799.47 4,974,799.47
receivable
Dividend
receivable
Inventories
Contract assets
Assets held for sales
Non-current asset due
within 1 year
Other current asset 500,000,000.00 -500,000,000.00
Total of current assets 599,832,333.97 599,832,333.97
Non-current assets：
Debt investment
Available for sale of
15,373,784.87 -15,373,784.87
financial assets
Other investment on
bonds
Expired investment in
possess
Long-term receivable
Long term share equity
1,997,175,852.27 1,997,175,852.27
investment
Other equity instruments
199,910,297.83 199,910,297.83
investment
Other non-current financial
assets
Property investment 161,053,628.71 161,053,628.71
Fixed assets 26,565,399.91 26,565,399.91
66
Construction in
progress
Production physical
assets
Oil & gas assets
Use right assets
Intangible assets 1,012,374.75 1,012,374.75
Development expenses
Goodwill
Long-germ expenses to be
amortized
Deferred income tax asset 5,818,069.48 5,818,069.48
Other non-current asset
Total of non-current assets 2,206,999,109.99 2,391,535,622.95 184,536,512.96
Total of assets 2,806,831,443.96 2,991,367,956.92 184,536,512.96
Current liabilities
Short-term loans
Transactional financial
liabilities
Financial liabilities measured
at fair value with variations
accounted into current
income account
Derivative financial
liabilities
Notes payable
Account payable 411,743.57 411,743.57
Advance receipts 639,024.58 639,024.58
Contract Liabilities
Employees’ wage payable 9,760,306.51 9,760,306.51
Tax payable 5,494,627.33 5,494,627.33
Other account
141,746,352.67 141,746,352.67
payable
Including：Interest
payable
Dividend
payable
67
Liabilities held for sales
Non-current liability due
within 1 year
Other current liability
Total of current liability 158,052,054.66 158,052,054.66
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration
payable to staff
Expected liabilities
Deferred income 700,000.00 700,000.00
Deferred income tax
46,134,128.24 46,134,128.24
liability
Other non-current liabilities
Total non-current liabilities 700,000.00 46,834,128.24 46,134,128.24
Total of liability 158,752,054.66 204,886,182.90 46,134,128.24
Owners’ equity
Share capital 511,274,149.00 511,274,149.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,599,025,454.96 1,599,025,454.96
Less：Shares in stock 27,230,679.00 27,230,679.00
Other comprehensive income 1,339,208.41 139,741,593.13 138,402,384.72
Special reserve
Surplus reserves 80,004,803.23 80,004,803.23
Retained profit 483,666,452.70 483,666,452.70
Total of owners’ equity 2,648,079,389.30 2,786,481,774.02 138,402,384.72
Total of liabilities and
2,806,831,443.96 2,991,367,956.92 184,536,512.96
owners’ equity
68
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √Not applicable
45.Other
Nil
VI.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT The taxable turnover 16%，13%，5%
City construction tax Turnover tax to be paid allowances 7%
Business income tax Turnover tax to be paid allowances 25%，16.5%，15%
Education surcharge Turnover tax to be paid allowances 3%
Local education surcharge Turnover tax to be paid allowances 2%
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the
information
Name of taxpayer Income tax rates
Shenzhen Shengbo Optoelectronic Technology Co., Ltd. 15%
Shengtou（HK）Co., Ltd. 16.5%
2. Tax preference and approval file
(1)Shenzhen Shengbo Optoelectronic Technology Co., Ltd., the subsidiary company of our company,
has been qualified as national high-tech enterprise since 2016 ,High-tech and enterprise certificate
No.: GR201644201276 ,The certificate is valid for three years, The enterprise income tax rate of this
year is 15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administrati
on of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supp
orting the Development of New-type Display Device Industry (Cai Guan Shui (2016) No. 62), Shenz
hen Shengbo Optoelectronic Technology Co., Ltd. manufactured key materials and parts for the upstr
eam industry of new-type display devices including colorful light filter coating and polarizer sheet tha
t comply with the planning for independent development of domestic industries may enjoy the prefere
ntial policies of exemption from import tariff for the import of raw materials and consumables for the
purpose of self use and production that can not be produced domestically from January 1, 2016 and D
ecember 31, 2020.
69
3.Other
Nil
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 10,934.20 13,559.60
Bank deposit 260,939,206.53 1,137,431,239.39
Other monetary funds 158,277,057.87 4,314,575.61
Total 419,227,198.60 1,141,759,374.60
Including : The total amount of deposit
3,516,279.32 9,294,408.13
abroad
Other notes
Note: ① Ending amount of other monetary funds was RMB 4,310,530.42 And deposit an
investment of RMB 4045.19.
②As of June 30, 2019，The fixed-term deposit balance of money fund is RMB 163,680,930.25 , this
part will not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2. Transactional financial assets
In RMB
Items Year-end balance Year-beginning balance
financial assets measured at their fair
values and with the variation included in 760,000,000.00 540,000,000.00
the current profits and losses
Including：
Designation of financial assets measured at
their fair values and with the variation
included in the current profits and losses
Including：
Total 760,000,000.00 540,000,000.00
70
3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Year-end balance Year-beginning balance
Bank acceptance 31,079,249.92 886,432.06
Total 31,079,249.92 886,432.06
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to
the general model of expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：Nil
Of which the significant actual write-off accounts receivable:
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RMB
Items Pledged amount
Bank acceptance 0.00
Total 0.00
（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance 46,707,583.37 0.00
Total 46,707,583.37 0.00
71
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the
contract or agreement
Not applicable
（6） The actual write-off accounts receivable
Not applicable
5. Account receivable
(1)Classification account receivables.
In RMB
Amount in year-end Amount in year-begin
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) n(%)
Accrual of bad debt
13,247,0 9,454,40 3,792,678 13,233,46 9,436,550 3,796,913.9
provision by single 2.49% 71.37% 2.34% 71.31%
84.82 6.18 .64 4.33 .41 2
item
Including：
Accounts receivable
of individual
significance and 6,300,45 3,998,20 2,302,254 6,300,455 3,998,201 2,302,254.0
1.18% 63.46% 1.11% 63.46%
subject to individual 5.84 1.79 .05 .84 .79 5
impairment
assessment
Accounts receivable
of individual
insignificance but 6,946,62 5,456,20 1,490,424 6,933,008 5,438,348 1,494,659.8
1.31% 78.54% 1.23% 78.44%
subject to individual 8.98 4.39 .59 .49 .62 7
impairment
assessment
Accrual of bad debt
519,241, 25,980,9 493,260,5 552,278,6 27,621,58 524,657,10
provision by 97.51% 5.00% 97.66% 5.00%
524.88 61.95 62.93 88.56 6.89 1.67
portfolio
Including：
532,488, 35,435,3 497,053,2 565,512,1 37,058,13 528,454,01
Total 100.00% 6.65% 100.00% 6.55%
609.70 68.13 41.57 52.89 7.30 5.59
Accrual of bad debt provision by single item:9,454,406.18 yuan
In RMB
72
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Beyond the credit period
Dongguan Fair LCD Co.,
1,695,947.73 1,695,947.73 100.00% for a long time, uncertain
Ltd.
recovered.
Beyond the credit period
Guangdong Ruili Baolai
1,348,965.36 674,482.68 50.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period
Dongguan Yaxing
3,255,542.75 1,627,771.38 50.00% for a long time, uncertain
Semiconductor Co., Ltd.
recovered.
Huangshan Zhongxian Beyond the credit period
Microelectronics Co., 904,518.00 452,259.00 50.00% for a long time, uncertain
Ltd. recovered.
Mianyang Zijin New Beyond the credit period
Material Technology Co., 598,226.43 598,226.43 100.00% for a long time, uncertain
Ltd. recovered.
Shanghai Weizhou Beyond the credit period
Microelectroniics 525,471.80 525,471.80 100.00% for a long time, uncertain
Technology Co., Ltd. recovered.
Shenzhen Chuangyu Beyond the credit period
Display Technology Co., 487,288.00 243,644.00 50.00% for a long time, uncertain
Ltd. recovered.
Beyond the credit period
Dongguan Jiaxian
486,510.50 486,510.50 100.00% for a long time, uncertain
Electronic Co., ltd.
recovered.
Shenzhen Guanguan Beyond the credit period
Lida Microelectronic 475,399.34 237,699.67 50.00% for a long time, uncertain
Co., Ltd. recovered.
Beyond the credit period
Jilin Lianbei Optical
443,768.72 221,884.36 50.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
Beyond the credit period
Hefei Guoyun Electronic
396,539.19 396,539.19 100.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
The Individual amount is
Other 2,628,907.00 2,293,969.44 87.26% small，Beyond the credit
period for a long time,
73
uncertain recovered.
Total 13,247,084.82 9,454,406.18 -- --
Accrual of bad debt provision by portfolio:25,980,961.95 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 518,978,068.05 25,948,903.41 5.00%
1-2 years 234,892.53 23,489.25 10.00%
2-3 years 28,564.30 8,569.29 30.00%
Over 3 years 50.00%
Total 519,241,524.88 25,980,961.95 --
Notes of the basis of recognizing the group: The combination of the ageing status of accounts
receivable as a credit risk feature.
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to
the general model of expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 518,978,068.05
Including：Subtotal within 1 year 518,978,068.05
1-2 years 234,892.53
2-3 years 737,059.92
Over 3 years 12,538,589.20
3-4 years 940,955.57
4-5 years 5,171,125.69
Over 5 years 6,426,507.94
Total 532,488,609.70
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Write- Closing balance
Accrual
collected amount off
74
Accrual of bad debt provision by portfolio: 27,621,586.89 1,640,624.94 25,980,961.95
Accrual of bad debt provision by single item: 9,436,550.41 17,855.77 9,454,406.18
Total 37,058,137.30 17,855.77 1,640,624.94 35,435,368.13
(3) The actual write-off accounts receivable
Nil
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Balance in Proportion(%) Bad debt provision
Name Nature Aging
year-end
First Goods 196,533,056.38 Within 1 year 36.91 98,266,528.19
Second Goods 85,255,501.33 Within 1 year 16.01 42,627,750.67
Third Goods 44,711,746.41 Within 1 year 8.4 22,355,873.21
Fourth Goods 42,398,221.61 Within 1 year 7.96 21,199,110.81
Fifth Goods 24,205,117.48 Within 1 year 4.55 12,102,558.74
Total 39313,643.21 73.82 196,551,821.61
（5）Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6)The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Nil
6. Financing of receivables
Changes in the current period of receivables financing and fair value
□ Applicable √ Not applicable
Relevant information of the financing provision for bad debts will be disclosed with reference to the
disclosure method of other receivables if the provision for bad debts of bills receivable is accrued
according to the general model of expected credit loss:
□ Applicable √ Not applicable
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 132,181,990.10 98.25% 226,726,744.30 98.99%
75
1-2 years 2,313,164.78 1.72% 2,263,886.85 0.99%
Over 3 years 38,160.00 0.03% 38,160.00 0.02%
Total 134,533,314.88 -- 229,028,791.15 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in
time
Nil
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion %
First 48,688,000.00 36.19
Second 48,600,000.00 36.12
Third 15,989,512.58 11.89
Fourth 5,460,517.24 4.06
Fifth 3,011,939.75 2.24
Total 121,749,969.57 90.50
Other notes: Nil
8.Other receivable
In RMB
Items Closing balance Opening balance
Interest receivable 7,067,282.69 5,589,704.44
Other accounts receivable 7,498,823.53 9,257,192.06
Total 14,566,106.22 14,846,896.50
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 867,156.10 1,302,963.56
Structure deposit 6,200,126.59 4,286,740.88
Total 7,067,282.69 5,589,704.44
76
2) Significant overdue interest
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Customs bond 101,758.24
Export rebate 1,556,952.58 3,140,110.71
Unit account 14,957,706.87 15,451,643.71
Deposit 1,454,844.79 1,875,008.00
Reserve fund and staff loans 723,581.27 506,154.77
Other 4,540,265.50 4,227,892.82
Total 23,233,351.01 25,302,568.25
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
1,652,090.82 14,393,285.37 16,045,376.19
2019
Balance as at January 1,
—— —— —— ——
2019 in current
Turn back in the current
310,848.71 310,848.71
period
Balance as at June 30 1,341,242.11 14,393,285.37 15,734,527.48
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
77
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 6,151,387.34
Including：Subtotal within 1 year 6,151,387.34
1-2 years 659,376.54
2-3 years 2,034,578.96
Over 3 years 14,388,008.17
3-4 years 600,709.97
4-5 years 625,372.54
Over 5 years 13,161,925.66
Total 23,233,351.01
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Accrual of bad debt
1,652,090.82 310,848.71 1,341,242.11
provision by portfolio
Accrual of bad debt
14,393,285.37 14,393,285.37
provision by single item
Total 16,045,376.19 310,848.71 15,734,527.48
The company's provision for bad debts of other receivables is based on the expected loss method,
and the credit loss of other receivables is expected throughout the duration. For other receivables with
similar risk characteristics, the company combines them according to aging status, and the expected
credit loss rate corresponding to aging is shown in this Section V, Important Accounting Policies and
Other Receivables in Accounting Estimates; At the end of the period, other receivables that have
objective evidence of impairment are individually tested for impairment, and impairment losses are
recognized and provision for bad debts is made according to the difference between the present value
of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and
provision for bad debts are shown in the following table:
Closing balance
Aging
238,838,915.04 Provision for bad debts Expected loss rate（%）
Within 1 year 6,151,387.34 307,569.37 5.00
1-2 years 659,376.54 65,937.65 10.00
78
2-3 years 234,578.96 70,373.69 30.00
Over 3 years 1,794,722.80 897,361.40 50.00
Total 8,840,065.64 1,341,242.11
(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears
party
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
First Unit account 11,389,044.60 Over 5 years 49.02% 11,389,044.60
Second Estimated tax 2,857,902.98 Within 1 year 12.30% 142,895.15
Third Unit account 1,800,000.00 2-3 years 7.75% 1,800,000.00
Fourth Export rebate 1,556,952.58 Within 1 year 6.70% 77,847.63
Fifth Deposit 980,461.06 Over 5 years 4.22% 490,230.53
Total -- 18,584,361.22 -- 79.99% 13,900,017.91
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of
other accounts receivable
Nil
9.Inventory
Whether implemented new revenue guidelines?
□Yes√ No
（1）Inventories types
In RMB
Items Year-end balance Year-beginning balance
79
Book balance Provision for bad Book value Book balance Provision for bad Book value
debts debts
Raw materials 205,355,616.56 8,721,102.80 196,634,513.76 164,096,057.16 14,452,368.67 149,643,688.49
Processing
8,955,036.59 8,955,036.59 3,895,184.01 3,895,184.01
products
Stock goods 377,999,151.32 68,425,166.10 309,573,985.22 360,461,266.75 74,247,420.48 286,213,846.27
Total 592,309,804.47 77,146,268.90 515,163,535.57 528,452,507.92 88,699,789.15 439,752,718.77
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry
Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting
business" disclosure requirements
No
（2）Inventory Impairment provision
In RMB
Increase Decrease
Year-beginning
Items Reverse or Year-end balance
balance Withdrawal Other Other
write-off
Raw materials 14,452,368.67 2,995,690.34 8,726,956.21 8,721,102.80
Processing
74,247,420.48 18,998,617.05 24,820,871.43 68,425,166.10
products
Stock goods 88,699,789.15 21,994,307.39 33,547,827.64 77,146,268.90
Total
(3) Description of The closing balance of inventories contain the amount of borrowing costs capitaliz
ed
Not applicable
(4) Completed unsettled assets formed from the construction contact at the period-end
Not applicable
10.Contact assets
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of contract assets is accrued according to
the general model of expected credit loss:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the current period
Not applicable
80
11. Assets divided as held-to-sold
Not applicable
12. Non-current assets due within 1 year
Not applicable
13. Other current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Year-end balance Year-beginning balance
After the deduction of input VAT 89,787,160.89 99,797,959.30
Total 89,787,160.89 99,797,959.30
Other notes：Nil
14.Creditor's right investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
15.Other creditor's rights investment
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
16. Long-term accounts receivable
(1) List of long-term accounts receivable
Not applicable
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the
financial assets
Not applicable
81
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
Not applicable
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Profits
and losses Cash Withdraw balance
Opening Additiona Decrease on Other Closing of
bonus or al of
Investees investmen Changes
balance l in comprehe balance impairme
ts in other profits impairme Other
investmen investmen nsive
Recogniz equity announce nt nt
t t
ed under income
the equity d to issue provision provision
method
I. Joint ventures
Shenzhen
Haohao
5,641,139 637,149.7 2,000,000 4,278,289
Property
.93 2 .00 .65
Leasing
Co., Ltd.
Anhui
Huapeng 11,784,62 -912,673. 10,871,95
Textile 6.51 03 3.48
Co.,Ltd.
Shenzhen
Guanhua
65,503,36 -520,438. 67,584,49 132,567,4
Printing 0.00
0.10 51 7.83 19.42
& Dyeing
Co., Ltd.
17,425,76 65,503,36 -795,961. 2,000,000 67,584,49 147,717,6
Subtotal
6.44 0.10 83 .00 7.83 62.55
2. Affiliated Company
Shenzhen
Changlian
fa 2,234,057 2,316,173
82,115.91
Printing .19 .10
& dyeing
Company
Jordan 2,363,614 -202,853. 674,303.1 2,835,064
Garment .70 11 7 .76
82
Factory
Hongkon
g Yehui
10,928,64 -197,358. 132,938.3 10,864,22
Internatio
7.33 53 7 7.17
nal Co.,
Ltd.
15,526,31 -318,095. 807,241.5 16,015,46
Subtotal
9.22 72 4 5.03
32,952,08 65,503,36 -1,114,05 807,241.5 2,000,000 67,584,49 163,733,1
Total
5.66 0.10 7.55 4 .00 7.83 27.58
18. Other equity instruments investment
In RMB
Items Year-end balance Year-beginning balance
Fuao auto parts co., Ltd. 6,444,721.42 5,119,896.46
Shenzhen Guanhua Printing & Dyeing Co.,
432,981.70
Ltd
Union Development Group Co., Ltd. 152,493,600.00 152,493,600.00
Shenzhen Xiangjiang Trade Co., Ltd. 1,559,890.79 1,559,890.79
Shenzhen Xinfang Knitting Co., Ltd. 2,227,903.00 2,227,903.00
Shenzhen Dailishi Underwear Co., Ltd. 12,315,939.61 12,315,939.61
Shenzhen South Textile Co., Ltd. 13,464,991.17 13,464,991.17
Shenzhen Xieli Auto Co., Ltd. 25,760,086.27 25,760,086.27
Changxing Junying Investment Partnership 28,500,000.00 28,500,000.00
Total 242,767,132.26 241,875,289.00
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for being
Amount of other measured at fair Reasons for other
comprehensive value and whose comprehensive
Recognized Accumulating Accumulating
Name income changes are income
dividend income income losses
transferred to included in other transferred to
retained earnings comprehensive retained earning
income
Fuao auto parts Long-term
739,299.75 2,064,124.71
co., Ltd. holding
83
Union
Long-term
Development 20,244,553.13 170,138,153.13
holding
Group Co., Ltd.
Shenzhen
Long-term
Xiangjiang Trade 1,087,413.21 2,487,304.00
holding
Co., Ltd.
Shenzhen
Long-term
Xinfang Knitting 200,000.00 1,903,903.00
holding
Co., Ltd.
Shenzhen
Dailishi Long-term
500,000.00 10,256,083.35
Underwear Co., holding
Ltd.
Shenzhen South Long-term
13,171,837.71 24,604,164.08
Textile Co., Ltd. holding
Shenzhen Xieli Long-term
1,810,409.14 23,326,789.97
Auto Co., Ltd. holding
Changxing
Junying Long-term
2,150,943.40 2,150,943.40
Investment holding
Partnership
19.Other non-current assets
Not applicable
20. Investment property
(1) Investment property adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
309,234,260.74 309,234,260.74
period-beginning
2.Increase in the
current period
(1) Purchase
（2）Inventory\Fixed
84
assets\ Transferred from
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
52,051,000.00 52,051,000.00
the period
（1）Dispose
（2）Other out 52,051,000.00 52,051,000.00
4. Balance at period-end 257,183,260.74 257,183,260.74
II.Accumulated
amortization
1.Opening balance 141,236,318.76 141,236,318.76
2.Increased amount of
3,872,485.12 3,872,485.12
the period
(1) Withdrawal 3,872,485.12 3,872,485.12
3.Decreased amount of
4,120,704.04 4,120,704.04
the period
（1）Dispose
（2）Other out 4,120,704.04 4,120,704.04
4. Balance at
140,988,099.84 140,988,099.84
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
85
4. Balance at period-end
IV.Book value
1.Book value at period
116,195,160.90 116,195,160.90
-end
2.Book value at
167,997,941.98 167,997,941.98
period-beginning
(2) Details of fixed assets failed to accomplish certification of property
□ Applicable √ Not applicable
(3) Investment real estate without certificate of ownership
Not applicable
21. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 934,227,780.28 987,876,247.55
Liquidation of fixed assets 8,472.84
Total 934,236,253.12 987,876,247.55
(1) List of long-term accounts receivable
In RMB
Machinery
Items Houses & buildings Transportations Other equipment Total
equipment
I. Original price
1.Opening balance 548,584,026.60 1,011,061,597.26 9,997,715.53 30,466,523.80 1,600,109,863.19
2.Increased amount
254,545.45 1,253,362.07 303,879.37 733,738.03 2,545,524.92
of the period
(1) Purchase 254,545.45 55,172.42 140,143.83 449,861.70
(2) Transferred fro
m construction in pr 1,198,189.65 303,879.37 593,594.20 2,095,663.22
ogress
(3)Increased of
Enterprise
86
Combination
3.Decreased amount
1,488,857.00 114,940.62 1,603,797.62
of the period
（1）Disposal 1,488,857.00 114,940.62 1,603,797.62
4. Balance at
548,838,572.05 1,010,826,102.33 10,301,594.90 31,085,321.21 1,601,051,590.49
period-end
II. Accumulated
depreciation
1.Opening balance 130,575,792.68 459,920,510.02 3,719,028.75 17,008,251.34 611,223,582.79
2.Increased amount
9,785,532.00 44,646,776.21 353,654.09 1,315,398.38 56,101,360.68
of the period
(1) Withdrawal 9,785,532.00 44,646,776.21 353,654.09 1,315,398.38 56,101,360.68
3.Decrease in the
1,419,244.29 91,921.82 1,511,166.11
reporting period
（1）Disposal 1,419,244.29 91,921.82 1,511,166.11
4.Closing balance 140,361,324.68 503,148,041.94 4,072,682.84 18,231,727.90 665,813,777.36
III. Impairment
provision
1.Opening balance 1,004,032.85 6,000.00 1,010,032.85
2.Increase in the
reporting period
（1）Withdrawal
3.Decrease in
the reporting period
（1）Disposal
4. Closing balance 1,004,032.85 6,000.00 1,010,032.85
IV. Book value
1.Book value of the
407,473,214.52 507,678,060.39 6,228,912.06 12,847,593.31 934,227,780.28
period-end
2.Book value of the 417,004,201.07 551,141,087.24 6,278,686.78 13,452,272.46 987,876,247.55
87
period-begin
(2) Fixed assets temporarily idled
Not applicable
(3) Fixed assets rented by finance leases
Not applicable
(4) Fixed assets leased in the operating leases
Not applicable
(5) Fixed assets without certificate of title completed
Not applicable
（6）Liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Scrap cleaning of Composite Printer 8,472.84 0.00
Total 8,472.84
22. Construction in progress
In RMB
Items Year-end balance Year-beginning balance
Construction in progress 94,993,015.59 15,621,286.64
Total 94,993,015.59 15,621,286.64
(1) List of construction in progress
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
Industrialization 85,275,840.93 85,275,840.93 9,080,815.92 9,080,815.92
88
project of
polaroid for super
large size TV
Other 9,717,174.66 9,717,174.66 6,540,470.72 6,540,470.72
Total 94,993,015.59 94,993,015.59 15,621,286.64 15,621,286.64
（2）Changes of significant construction in progress
In RMB
Includin
Capitalis g：
Amount Transferr ation of Current Capitalis
Increase Balance
at year ed to Other Proporti Progress interest amount ation of Source
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest of funds
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
2500mm
width 1,959,50 9,080,81 76,195,0 85,275,8
Other
producti 0,000.00 5.92 25.01 40.93
on line
1,959,50 9,080,81 76,195,0 85,275,8
Total -- -- --
0,000.00 5.92 25.01 40.93
（3）Impairment provision of construction projects
Not applicable
（4）Engineering material
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
89
25. Right to use assets
Not applicable
26. Intangible assets
(1) Information
In RMB
Non-proprietary
Items Land use right Patent right Software Total
technology
I. Original price
1. Balance at period-beginning 48,822,064.61 11,825,200.00 2,936,607.54 63,583,872.15
2.Increase in the current period
(1) Purchase
（2）Internal R & D
（3）Increased of Enterprise
Combination
3.Decreased amount of the period 563,825.61 563,825.61
（1）Disposal
（2）Other 563,825.61 563,825.61
4. Balance at period-end 48,258,239.00 11,825,200.00 2,936,607.54 63,020,046.54
II.Accumulated amortization
1. Balance at period-beginning 12,243,972.52 11,825,200.00 1,633,883.78 25,703,056.30
2. Increase in the current period 463,884.36 225,607.57 689,491.93
(1) Withdrawal 463,884.36 225,607.57 689,491.93
3.Decreased amount of the period 563,825.61 563,825.61
（1）Disposal
（2）Other 563,825.61 563,825.61
4. Balance at period-end 12,144,031.27 11,825,200.00 1,859,491.35 25,828,722.62
III. Impairment provision
1. Balance at period-beginning
2. Increase in the current period
(1) Withdrawal
90
3.Decreased amount of the period
（1）Disposal
4. Balance at period-end
4. Book value
1.Book value at period -end 36,114,207.73 1,077,116.19 37,191,323.92
2.Book value at period-beginning 36,578,092.09 1,302,723.76 37,880,815.85
The proportion the intangible assets formed from the internal R&D through the Company amount the
balance of the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
Not applicable
27. R&D expenses
Not applicable
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the investees or the events formed goodwill Opening balance Increase Decrease Closing balance
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 2,167,341.21
82,246.61 82,246.61
Shenzhen Shenfang Import and Export Co., Ltd.
Shenzhen Shengbo Optoelectronic Technology Co., Ltd 9,614,758.55 9,614,758.55
Total 11,864,346.37 11,864,346.37
（2）Impairment of goodwill
In RMB
Balance in Increased at .Decreased at
Investee Balance in year-end
year-begin this period this period
Shenzhen Beauty Century Garment Co., Ltd. 2,167,341.21 2,167,341.21
Shenzhen Shenfang Import and Export Co., Ltd. 82,246.61 82,246.61
Shenzhen Shengbo Optoelectronic Technology Co., Ltd 9,614,758.55 9,614,758.55
91
Total 11,864,346.37 11,864,346.37
29. Long term amortize expenses
In RMB
Balance in Increase in this Amortized expenses
Items Other loss Balance in year-end
year-begin period
Renovation fee 985,691.64 1,394,907.13 290,327.30 0.00 2,090,271.47
Other 500,517.39 44,606.09 60,251.68 484,871.80
Total 1,486,209.03 1,439,513.22 350,578.98 2,575,143.27
30. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets depreciation
18,727,722.20 4,681,930.55 18,197,325.09 4,549,331.27
reserves
Unattained internal sales
2,546,979.00 382,046.85 2,591,536.27 388,730.44
profits
Temporary difference
formed by the interest of
571,844.26 142,961.06
share incentive
repurchase
Changes in fair value of
available for sale 2,495,876.89 623,969.22 3,820,701.85 955,175.46
financial assets
Total 23,770,578.09 5,687,946.62 25,181,407.47 6,036,198.23
(2)Details of the un-recognized deferred income tax liabilities
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of 264,086,001.96 66,021,500.49 196,501,504.12 49,125,376.03
92
investments in other
equity instruments
Total 264,086,001.96 66,021,500.49 196,501,504.12 49,125,376.03
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
5,687,946.62 6,036,198.23
assets
Deferred income tax
66,021,500.49 49,125,376.03
liabilities
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 114,494,850.00 128,283,915.49
Deductible loss 606,745,605.60 562,435,574.75
Total 721,240,455.60 690,719,490.24
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2020 703,241.36 703,241.36
2021 3,880,135.73 3,880,135.73
2023 129,226,944.33 129,226,944.33
2024 148,095,898.11 148,095,898.11
2025 83,287,153.64 83,287,153.64
2026 120,820,767.06 120,820,767.06
2028 76,421,434.52 76,421,434.52
2029 44,310,030.85
Total 606,745,605.60 562,435,574.75 --
93
31 .Other non-current assets
Whether implemented new revenue guidelines?
□ Yes √No
In RMB
Items Balance in year-end Balance in year-begin
Advance payment for equipment fund 148,843,296.00 152,688,087.18
Dvance payment for technical services 176,764,571.83 176,764,571.83
Total 325,607,867.83 329,452,659.01
32. Short-term borrowings
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beginning
Credit borrowings 50,837,730.76 411,522,111.40
Total 50,837,730.76 411,522,111.40
(2) Situation of Overdue Outstanding Short-Term Borrowing
Not applicable
33. Transactional financial liabilities
Not applicable
34. Derivative financial liability
Not applicable
35.Notes payable
Not applicable
94
36. Accounts payable
(1) List of accounts payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 245,132,120.82 177,140,118.37
1-2 years 1,506,049.28 2,059,842.85
2-3 years 49,238.45 37,402.40
3-4 years 37,402.40 35,075.05
4-5 years 270,552.23 281,166.48
Over 5 years 731,537.05 685,847.75
Total 247,726,900.23 180,239,452.90
（2）Significant accounts payable that aged over one year
Not applicable
37.Advance account
Whether implemented new revenue guidelines?
□ Yes √No
(1) List of Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 24,126,360.37 119,293,518.44
1-2 years 432,970.46 560,077.61
2-3 years 227,835.39 210,330.74
3-4 years
4-5 years
Over 5 years 639,024.58 639,024.58
Total 25,426,190.80 120,702,951.37
(2) Significant advance from customers aging over one year
Not applicable
（3）Information of unliquidated completed assets formed in the construction contract at the end
of the period
Not applicable
95
38.Contract liabilities
Not applicable
39. Payroll payable
(1) List of Payroll payable
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short –term wages 32,506,267.08 70,261,369.72 78,386,426.73 24,381,210.07
II. Welfare after waving
of position-fixed 5,803,834.30 5,803,834.30
provision scheme
Total 32,506,267.08 76,065,204.02 84,190,261.03 24,381,210.07
（2）Short-term remuneration
In RMB
Items Balance in year-begin Increase in this period decrease in this period Balance in year-end
1.Wages, bonuses,
30,794,253.21 60,420,574.96 68,645,717.86 22,569,110.31
allowances and subsidies
2.Employee welfare 4,815,414.94 4,815,414.94
3. Social insurance
1,044,657.16 1,044,657.16
premiums
Including：Medical
836,870.97 836,870.97
insurance
Work injury insurance 88,159.91 88,159.91
Maternity insurance 119,626.28 119,626.28
4. Public reserves for
2,577,398.43 2,577,398.43
housing
5.Union funds and staff
1,712,013.87 1,403,324.23 1,303,238.34 1,812,099.76
education fee
Total 32,506,267.08 70,261,369.72 78,386,426.73 24,381,210.07
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period decrease in this period Balance in year-end
1. Basic old-age 4,884,610.17 4,884,610.17
96
insurance premiums
2.Unemployment
92,168.12 92,168.12
insurance
3. Annuity payment 827,056.01 827,056.01
Total 5,803,834.30 5,803,834.30
40.Tax Payable
In RMB
Items At end of term At beginning of term
VAT 443,530.70 793,392.58
Enterprise Income tax 7,261,559.44 6,198,704.39
Individual Income tax 383,031.06 160,823.58
City Construction tax 14,901.49 54,516.12
House property tax 2,954,221.68 204,941.07
Educational surtax 9,529.64 37,825.82
Land VAT 5,271,919.22
Other 166,762.09 294,925.43
Total 16,505,455.32 7,745,128.99
41.Other payable
In RMB
Items At end of term At beginning of term
Interest payable 435,029.66 39,044,044.39
Other 170,702,934.76 189,971,235.59
Total 171,137,964.42 229,015,279.98
（1) Interest payable
In RMB
Items Balance in year-end Balance in year-begin
Pay the interest for long-term loans by
37,220,662.08
installments.
Pay the interest for short-term loans by
installments. 435,029.66 1,823,382.31
97
Total 435,029.66 39,044,044.39
(2) Dividends payable
Not applicable
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Balance in year-end Balance in year-begin
Engineering Equipment fund 55,299,112.56 62,574,657.07
Unit account 53,231,384.04 53,935,705.78
Deposit 25,872,902.45 25,481,743.17
Restrictive stock repurchase
16,139,003.40 27,802,523.26
obligation
Other 20,160,532.31 20,176,606.31
Total 170,702,934.76 189,971,235.59
42. Liabilities classified as holding for sale
Not applicable
43. Non-current liabilities due within 1 year
In RMB
Items At end of term At beginning of term
Long-term loans due within 1 year 0.00 40,000,000.00
Total 40,000,000.00
44.Other current liabilities
Whether implemented new revenue guidelines?
□ Yes √No
45. Long-term borrowing
(1) Category of long-term loan
98
In RMB
Items At end of term At beginning of term
Credit borrowings 0.00 40,000,000.00
Add：Long-term term borrowings
0.00 -40,000,000.00
due within 1 year
46.Bond payable
（1）Bond payable
Not applicable
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability
Not applicable
(3) Note to conditions and time of share transfer of convertible bonds
Not applicable
（4）Other financial instruments that are classified as financial liabilities
Not applicable
47. Lease liability
Not applicable
48. Long-term payable
Not applicable
49. Long term payroll payable
Not applicable
50. Estimates liabilities
Whether implemented new revenue guidelines?
□ Yes √No
51.Deferred income
In RMB
99
Items Beginning of term Increased this term Decreased this term End of term Reason
Govemment Subsidy 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89
Total 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89 --
Details of government subsidies：
In RMB
Amount Amount
transferr of cost Asset-re
New subsidy Other income Other
Beginning of ed to deducted latedori
Items in current recorded in the chan End of term
term non-oper in the ncome-r
period current period ges
ational current elated
income period
Related
Textile special funds 571,428.57 71,428.58 499,999.99
to assets
High-tech Industrialization Related
200,000.00 100,000.00 100,000.00
demonstration projects to assets
National grant funds for new Related
1,000,000.00 500,000.00 500,000.00
flat panel display industry to assets
Grant funds for TFT-LCD Related
4,333,333.34 649,999.97 3,683,333.37
polarizer industry project to assets
Grant funds for TFT-LCD
Related
polarizer narrow line (line 5) 2,000,000.00 250,000.02 0.00 1,749,999.98
to assets
project
Purchase of imported Related
677,016.78 87,545.09 589,471.69
equipment and technology to assets
Innovation and venture capital Related
200,000.00 25,000.04 174,999.96
for TFT-LCD polarier I project to assets
Shenzhen polarizing materials
and Technology Engineering Related
312,500.00 25,000.02 287,499.98
Laboratory innovation venture to assets
capital
Shenzzhen Engineering
Related
laboratory polarizing material 3,125,000.00 250,000.02 2,874,999.98
to assets
and technical engineering
Capital funding for Technology Related
1,875,000.00 150,000.00 1,725,000.00
Center to assets
Subsidy funds to support the int
Related
roduction of advanced technolo 57,552.41 7,194.00 50,358.41
to assets
gy
Local supporting funds for 14,250,000.00 750,000.00 13,500,000.00 Related
100
TFT-LCD polarizer Phase II to assets
Project (line 6)
State subsidy for TFT-LCD
Related
polarizer Phase II Project (line 9,500,000.00 500,000.00 9,000,000.00
to assets
6)
Innovation and venture capital
Related
for TFT-LCD polarizer Phase II 475,000.00 25,000.00 450,000.00
to assets
Project (line 6)
key technology
research and development Related
4,125,000.00 250,000.02 3,874,999.98
projects of optical to assets
compensation film for polarizer
Strategic industries
Related
Development fund of 23,750,000.00 1,250,000.00 22,500,000.00
to assets
Guangdong Province
Grants of Purchase equipment
Related
of TFT-LCD polarizing film 28,500,000.00 1,500,000.00 27,000,000.00
to assets
phase II project
Energy saving transformation Related
86,458.56 86,458.56
grant funds to assets
Old elevator renovation fund Related
1,147,008.67 55,877.85 1,091,130.82
subsidies to assets
Polarization Industrialization
Project for Super Large-sized Related
30,000,000.00 30,000,000.00
TVs (Line 7) Central Budget to assets
Investment
Research & development
subsidy for key technologies of Related
2,000,000.00 2,000,000.00
ultra-thin IPS polarizer for to assets
smart phone terminals
Finance committee of
Shenzhen municipality (R&D
of key technology of Related
5,000,000.00 5,000,000.00
high-performance polarizer for to assets
large size display panel of
2018N007)
The ministry of industry and
information technology, the
ministry of finance, the circ Related
4,806,400.00 2,231,202.83 2,575,197.17
first batch of new material to assets
application insurance
compensation
101
Compensation for land
Related
requisition by Longhua Street 103,317.00 0.00 103,317.00
to assets
Office (factory wall)
Total 137,991,698.33 103,317.00 8,678,248.44 129,416,766.89
Other notes：
(1).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
2006, the Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance
Bureau. The company will use 14 years as asset depreciation period for amortization with the
corresponding equipment in current period. The amortization in accordance with the corresponding
equipment, The other income in current period is RMB71,428.58, the ending balance of uncompleted
amortization is RMB499,999.99 .
(2).According to the document of Shenzhen Municipal Development and Reform Commission
【2009】 No. 416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong
Ke New Industrial Internet Security Audit System and Other High-tech Industrialization
Demonstration Project and the Public Testing and Consultation Service of Information Security
Industry and other National High-tech Industrial Base Platform Projects”, on May 2009, the company
received the Shenzhen Municipal Development and Reform Commission high-tech industrialization
demonstration project supporting Capital RMB 2 million allocated by Shenzhen City Bureau of
Finance for the construction of “The Project of the Construction Line of Polaripiece for
TFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current
period. The other income in current period is RMB100,000.00 and the balance amount of unfinished
final amortization is RMB100,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on
"The Office of the State Development and Reform Commission on the Reply of New Flat-Panel
Display Industrialization Special Project” (Development and Reform Office High-Tech【2008】No.
2104), the company obtained the state subsidies RMB 10,000,000.00 from the State Development and
Reform Commission New Flat-Panel Display Industrialization Special Project for the construction of
“The Project of Polaripiece Industrialization for TFT-LCD”. On June 2009, December 2009 and April
2010, the company received the special subsidies of State Development and Reform Commission
RMB 10,000,000.00. Our company will use 10 years as asset depreciation period for amortization.
The non-operating income in current period is RMB500,000.00, the balance amount of unfinished
final amortization is RMB500,000.00.
(4) In accordance with the Notice of Forwarding the Reply of General Office of State Development
and Reform Commission Regarding Special Plan for Strategic Transformation and Industrialization
of Color TV Industry issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011)
No. 823), State Development and Reform Commission approved including the project of
industrialization of polarizer sheet for TFT-LCD of Shengbo Optoelectronic Company into the
special plan for strategic transformation and industrialization of color TV industry in 2010 and
appropriated national aid of RMB 10,000,000.00 to Shengbo Optoelectronic Company for the
102
research and development in the process of the project of industrialization and the purchase of
required software and hardware equipment. On June 2012 and September 2013, the company
received the national grants of RMB 10,000,000.00.. According to the Notice of Issuing the
Governmental Investment Plan for 2011 Regarding Demonstration Project of High-tech
Industrialization Including Specialized Services Such As Disaster Recovery of Financial Information
System issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012) No. 3), the
Company received subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet
for TFT-LCD in April 2012. Our company will use 10 years as asset depreciation period for
amortization in current period.The non-operating income in current period is RMB649,999.97. and
the balance amount of unfinished final amortization is RMB 3,683,333.37.
(5) According to the Notice about the Plan for Supporting the Second Group of Enterprises in
Biological, Internet, New Energy and New Material Industries with Special Development Funds
(Shen Fa Gai (2011) No. 1782), the Company received subsidy of RMB 5,000,000.00 for the
narrow-width line (line 5) of phase-I project of polarizer sheet for TFT-LCD on February 2012. The
Company planned to amortize the subsidy over 10 years according to the depreciation period of
relevant assets. The non-operating income in current period is RMB250,000.02 and the balance
amount of unfinished final amortization is RMB1,749,999.98.
(6) On October 2013, The company received the grants for the purchase of imported equipment and
technology in 2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10
years according to the depreciation period of relevant assets.The non-operating income in current
period is RMB87,545.09 and the balance amount of unfinished final amortization is RMB 589,471.69.
(7) On December 2013，The company received the funds for innovation and entrepreneurship of
TFT-LCD polarizing project from Pingshan New District Development and Finance Bureau of RMB
500,000.00(matching funding category),the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB25,000.04 and the balance amount of unfinished final amortization is RMB174,999.96 .
(8) On December 2013，The company received the funds for innovation and entrepreneurship of
TFT-LCD polarizing project from Pingshan New District Development and Finance Bureau of RMB
500,000.00(matching funding category),the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB25,000.02 and the balance amount of unfinished final amortization is RMB 287,499.98 .
(9) According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co.,
Ltd. for Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory
(Shen Fa Gai (2012) No. 1385), Shenzhen Polarization Material and Technology Engineering
Laboratory was approved to be established on the strength of Shengbo Optoelectronic with total
project investment of RMB 24,390,000.00. As approved by Shenzhen Municipal People's
Government, this project was included in the plan for supporting the fourth group of enterprises with
special fund for the development of strategic new industries in Shenzhen in 2012 (new material
103
industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises
with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai
(2012) No. 1241), the Company received subsidy of RMB 5,000,000.00 on December 2012 for
purchasing instruments and equipment and improving existing technological equipment and test
conditions. The fund gap will be filled by the Company through raising funds by itself. the Company
planned to amortize the subsidy over 10 years according to the depreciation period of relevant assets.
The non-operating income in current period is RMB250,000.02 and the balance amount of unfinished
final amortization is RMB 2,874,999.98 .
(10) According to the “Announcement on the Identification of Technology Centers of 24 Enterprises
including Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the
Municipal Research and Development Centers (Technical Center)” (SJMXXJS [2013] No.137), the
research and development center of SAPO has been regarded as 2012 annual municipal R&D center.
In December 2013, the company has received the funding subsidy of RMB3 million for the
construction of the technical center. the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB150,000.00 and the balance amount of unfinished final amortization is RMB 1,725,000.00.
(11)On March 2014 the company received the introduction of advanced technology import subsidy fu
nds of RMB 143,881.00 from Shenzhen Finance Committee, the Company planned to amortize the
subsidy over 10 years according to the depreciation period of relevant assets. The non-operating
income in current period is RMB7,194.00 and the balance amount of unfinished final amortization is
RMB50,358.41.
(12)According to the "Shenzhen Municipal Development and Reform Commission Reply for SAPO
application for local matching funds of TFT-LCD polarizing film II project (Line 6) " (Shenzhen
DRC [2013]No. 1771), the company obtained TFT-LCD polarizing film II project (line 6) local
matching funds of RMB 15,000,000.00 in April 2014. TFT-LCD polarizer Phase II project (Line 6)
hit the expected available state and transferred to fixed assets in June 2018. Amortized by a period of
10 years in depreciation of relevant assets, RMB 750,000.00 was included into other incomes in the
current period and the ending outstanding balance was RMB 13,500,000.00 .
(13)According to "National Development and Reform Commission issued on industrial
transformation and upgrading projects (2 nd industrial restructuring) notify the central budget for 2014
investment plan" (NDRC Investment [2014] No. 1280), the company obtained TFT- LCD polarizer II
project (line 6) state grants of RMB 10,000,000.00 in December 2014. TFT-LCD polarizer Phase II
project (Line 6) hit the expected available state and transferred to fixed assets in June 2018.
Amortized by a period of 10 years in depreciation of relevant assets, RMB 500,000.00 was included
into other incomes in the current period and the ending outstanding balance was RMB 9,000,000.00.
(14) In December 2014, the company received innovation venture capital (matching funding
category) for Ping Shan District Development and Finance Bureau of TFT-LCD polarizing film II
project (line 6) of RMB 500,000.00. TFT-LCD polarizer Phase II project (Line 6) hit the expected
available state and transferred to fixed assets in June 2018. Amortized by a period of 10 years in
104
depreciation of relevant assets, RMB 25,000.00 was included into other incomes in the current period
and the ending outstanding balance was RMB450,000.00.
(14)On Jan. 2015, the company received RMB 5 million of grants for key technology
research and development projects of optical compensation film for polarizer from
Shenzhen Scientific and Technological Innovation Committee. The company has reached the
expected date of use of the assets., the Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The other income in current period is
RMB250,000.02 and the balance amount of unfinished final amortization is RMB3,874,999.98.
(16)According to “Reply on Congregating Development in Emerging Industrial Area Strategic
Pilot Implement Scheme of Guangdong Province ”(Reform and Development Office High-Tech
[2013] No.2552,On December 2015, the Company received RMB20 million of the pilot project
fund( period II project of TFT-LCD polarizer).On October 2016, the Company received RMB 5
million of Shenzhen strategic emerging industries and the future development of industrial
matching funds, TFT-LCD polarizer Phase II project (Line 6) hit the expected available state and
transferred to fixed assets in June 2018. Amortized by a period of 10 years in depreciation of relevant
assets, RMB 1,250,000.00 was included into other incomes in the current period and the ending
outstanding balance was RMB 22,500,000.00.
(17). According to Reform and Development Commission of Shenzhen Municipality sending the
notice of “Reply of National Reform and Development Office on Investing in Petrifaction and
Medicine Project within Central Budget of 2013 for Industry Structure Adjustment Special
Project”(Reform and Development Commission of Shenzhen Municipality [2013]No.1449) , the
Company received 30 million RMB of new production line of TFT-LCD polarizer project period II
and equipment purchase subsidy in August 2015 ,December 2015 and September 2016. TFT-LCD
polarizer Phase II project (Line 6) hit the expected available state and transferred to fixed assets in
June 2018. Amortized by a period of 10 years in depreciation of relevant assets, RMB 1,500,000.00
was included into other incomes in the current period and the ending outstanding balance was RMB
27,000,000.00.
(18) In 2015 and In 2016, the Company received the subsidy funds of 202,608.00 RMB and
34,535.45 RMB on energy-saving reconstruction, amortized by 8-year depreciation life of the
relevant asset, the Other income was RMB 0.00 at the current period, the ending balance without
amortization was RMB 86,458.56.
(19). In 2017, the company received 1,218,640.00 yuan for the old elevator upgrade subsidy, the
company received 325,380.00 yuan for the old elevator upgrade subsidy in 2018, the Other income was
RMB 55,877.85 at the current period, the ending balance without amortization was RMB 1,091,130.82.
(20) According to the Notice of the Ministry of Industry and Information Technology of the
National Development and Reform Commission for Releasing the Central Budgetary Investment Plan
of the 2017 of the Technical Transformation of the Electronic Information Industry (NDRC
Investment {2017} No. 1649), the company received oversize TV for use in November 2017. In
105
November 2017, the company received an central budgetary investment of RMB 30,000,000.00 of
the oversized TV polarizer industry project. The company shall transfer the deferred income to the
current profit or loss for the period of depreciation from the date when the relevant assets are ready
for their intended use.
(21) In accordance with the development plans and policies of Shenzhen Municipality for Strategic
emerging Industries, the Management Measures of Shenzhen City on Funds for Scientific and
Technological Research and Development, the Management Measures of Shenzhen City on Science
and Technology Plan Project and other relevant documents, Shenzhen Science and Technology
Innovation Commission and SAPO completed the development of the key technology of the
20170535 ultra-thin polarizer used in IPS smart phone terminal in the Shenzhen Science and
Technology Plan issued by SFG [2017] No. 1447 document. In February 2018, the company received
funding from Shenzhen Science and Technology Innovation Commission of 2,000,000 yuan for R &
D. The company will transfer the deferred income to the current profit and loss according to the
depreciation period from the date when the relevant assets reach the expected usable status.
(22). According to Measures for Management of Science and Technology Research &
Development Funds in Shenzhen, Measures for Management of Projects in Shenzhen Municipal
Science and Technology Program and other documents concerned, SAPO and Shenzhen Science and
Technology Innovation Committee entered into a Contract of Projects in Shenzhen Municipal Science
and Technology Program through consultation to complete development of key techniques for
high-performance polarizers for 2018N007 jumbo display panels in the program delivered in Shen Fa
Gai [2018] No.324 document. The Company was granted with a financial subsidy of RMB
5,000,000.00 this year. The Company amortized and transferred the deferred income into the current
profit and loss by period of depreciation after relevant assets hit the expected available state.
(23). Compliance with the document spirit of the Notice of Ministry of Industry and Information
Technology, Ministry of Finance and China Insurance Regulatory Commission on Piloting an
Insurance Compensation Mechanism for the First Batch of Key New Materials (Gong Xin Bu Lian
Yuan [2017] No.222 document). In December 2018, the Company received a relevant premium
subsidy of RMB 4,806,400.00 from the Ministry of Industry, In the current period, the sales expenses
will be reduced of RMB 2,231,202.83, the ending balance without amortization was RMB
2,575,197.17.
24. During the reporting period, Longhua district subdistrict office received RMB103,317.00 of
compensation fund for land requisition, which had not been amortized by the end of the reporting
period.
52. Other non-current liabilities
Whether implemented new revenue guidelines?
□ Yes √No
53.Stock capital
In RMB
106
Changed（+，-）
Year-beginning Capitalization Balance in
Issuance of
balance Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
511,274,149.00 511,274,149.00
shares
54. Other equity instruments
Not applicable
55. Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 1,848,960,987.54 1,848,960,987.54
Other 16,755,996.09 16,755,996.09
Total 1,865,716,983.63 1,865,716,983.63
56.Treasury stock
In RMB
Decrease in the current
Items Year-beginning balance Increase in the current Year-end balance
period
Treasurpy stock-A share 27,230,679.00 27,230,679.00
Total 27,230,679.00 27,230,679.00
57. Other comprehensive income
In RMB
Amount of current period
Less： Less：Prior
Amount period
transferred included After-tax
Amount Less： After-tax
Year-beginn into profit in other attribute to Year-end
Items incurred Income attribute to
ing balance and loss in composite minority balance
before tax the parent
the current income shareholde
income tax expenses company
period that transfer to r
recognied retained
into other income in
107
comprehensi the current
ve income in period
prior period
1. Other comprehensive income
147,376,128 51,249,01 51,249,01 198,625,
that cannot be reclassified in the 0.00
.10 0.40 0.40 138.50
loss and gain in the future
Changes in fair value of
51,249,01 51,249,01 51,249,0
investments in other equity
0.40 0.40 10.40
instruments
Accounting policy 147,376,128 147,376,
adjustment .10 128.10
2.Other comprehensive income
1,339,208.4 807,241.5 807,241.5 2,146,44
reclassifiable to profit or loss in
1 4 4 9.95
subsequent periods
Translation differences of
1,339,208.4 807,241.5 807,241.5 2,146,44
financial statements
1 4 4 9.95
denominated
Total of other comprehensive 148,715,336 52,056,25 52,056,25 200,771,
income .51 1.94 1.94 588.45
58. Special reserves
Not applicable
59. Surplus reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 80,004,803.23 80,004,803.23
Total 80,004,803.23 80,004,803.23
60. Retained profits
In RMB
Items Amount of current period Amount of previous period
Retained earnings before adjustments at the year
-57,774,473.41 -32,266,087.44
beginning
Retained earnings after adjustments at the year
-57,774,473.41 -32,266,087.44
end
108
Add: Net profit attributable to owners of the
7,832,287.98 -22,980,624.93
Company for the period
Less: Appropriation to statutory surplus reserve 2,527,761.04
Retained profits at the period end -49,942,185.43 -57,774,473.41
As regards the details of adjusted the beginning undistributed profits
61. Business income, Business cost
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main business 1,006,315,551.63 938,514,710.11 471,407,964.26 412,583,996.50
Other business 2,547,743.87 2,072,800.62 2,854,444.31 2,508,961.83
Total 1,008,863,295.50 940,587,510.73 474,262,408.57 415,092,958.33
Whether implemented new revenue guidelines?
□ Yes √No
62.Taxes and surcharges
In RMB
Items Amount of current period Amount of previous period
Urban construction tax 290,794.73 293,239.29
Education surcharge 212,086.40 210,850.54
Property tax 2,826,536.51 2,891,819.92
Land use tax 98,031.18 176,423.79
vehicle and vessel usage tax 3,960.00 3,960.00
Stamp tax 458,231.50 260,786.33
Other 7,856.46 3,476.25
Total 3,897,496.78 3,840,556.12
63.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 1,605,556.15 1,477,791.73
Transportation changes 2,580,690.13 1,402,849.04
Exhibition fee 131,576.37 124,705.56
109
Business expenses 187,361.86 214,533.49
Samples and product loss 359,519.68 179,001.34
Property insurance 2,231,202.83 0.00
Other 273,897.50 381,530.37
Total 7,369,804.52 3,780,411.53
Other notes：The year-on-year increase in property insurance was mainly due to the purchase of
"comprehensive insurance for the first batch of application of key new materials" during SAPO
reporting period.
64. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 22,919,081.61 23,605,838.32
Depreciation of fixed assets 6,383,207.78 4,788,853.45
Water and electricity 1,281,518.80 2,017,209.50
Intangible assets amortization 689,491.93 648,185.46
Travel expenses 738,353.90 512,976.10
Office expenses 342,201.90 515,020.20
Business entertainment 465,456.54 485,191.77
Lawsuit expenses 196,500.00 0.00
Repair charge 1,031,667.72 1,804,835.86
Property insurance 102,845.11 123,836.06
Low consumables amortization 18,322.00 9,731.00
Board fees 1,341.50 54,119.00
Agency expenses 4,393,993.81 1,639,670.22
Other 4,337,897.08 5,033,652.79
Tax 42,901,879.68 41,239,119.73
Other notes：
1. The increase in agency fees is mainly due to a number of agency fees incurred in the first half of
the year, such as capital increase and stock expansion of subsidiaries, assets verification and asset
evaluation, and attorney fees for land ownership confirmation of Guanhua Building.
2. The increase in legal fees is due to the legal service fees for the credit enhancement and extension
of the trust project and trade project of the subsidiary SAPO.
65.R & D costs
In RMB
110
Items Amount of current period Amount of previous period
Wage 6,498,554.63 5,909,039.37
Material 10,185,129.50 13,348,329.15
Depreciation 1,371,404.00 1,230,035.43
Fuel & Power 763,053.12 413,784.82
Travel expenses 201,113.88 165,089.52
Other 153,133.07 122,821.53
Total 19,172,388.20 21,189,099.82
66.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
Interest expenses 3,783,883.97 3,428,083.94
Interest income -15,744,104.66 -13,277,267.58
Exchange loss 9,972,336.73 4,824,219.83
Fees and other 1,257,196.02 1,172,376.15
Total -730,687.94 -3,852,587.66
67.Other income
In RMB
Items Amount of current period Amount of previous period
Govemment Subsidy 11,035,139.06 5,812,167.76
68. Investment income
In RMB
Items Amount of this period Amount of last period
Investment income from the disposal of
-1,114,057.55 616,945.67
long-term equity investment
Dividend income from investments in other
908,000.00
equity instruments during the holding period
Hold the investment income during from
574,774.15
available-for-sale financial assets
111
Trust income 0.00 27,360,990.33
Total -206,057.55 28,552,710.15
69.Net exposure hedging income
Not applicable
70. Gains on the changes in the fair value
Not applicable
71. Credit impairment loss
In RMB
Items Amount of this period Amount of last period
Loss of bad debts in other receivables 310,848.71
Loss of bad accounts receivable 2,022,916.27
Total 2,333,764.98
72. Losses from asset impairment
Whether implemented new revenue guidelines?
□ Yes √Not
In RMB
Items Amount of current period Amount of previous period
Losses on bad debt -278,909.76
Loss of inventory price -21,259,451.35 -17,115,422.28
Total -21,259,451.35 -17,394,332.04
73. Asset disposal income
In RMB
Items Amount of current period Amount of previous period
Gains & losses on foreign investment in
12,301,144.92
fixed assets
Gains& losses on the disposal of fixed
-64,458.67
assets
Total 12,236,686.25
112
74. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Government Subsidy 55,009.21
Gains from disposal of
24,597.81
non-current assets
Return insurance settlement
4,033,846.00 4,033,846.00
income
Other 213,415.65 10,301.15 213,415.65
Total 4,247,261.65 89,905.17 4,247,261.65
Government subsidy reckoned into current gains/losses
In RMB
Whether the
impact of
Whether Amount of Amount of Assets-relate
Issuing subsidies on
Items Reason Nature special current previous d/income
subject the current
subsidies period period -related
profit and
loss
Shenzhen
Social Relate to
Subsidy No No 55,009.21
Security income
Bureau
75.Non-current expenses
In RMB
Amount of current period Amount of previous period The amount of non-operating
Items
gains & lossed
Non-current asset Disposition
43,338.08
loss
Other 6,092.62 110,000.00 6,092.62
Total 6,092.62 153,338.08 6,092.62
76.Income tax expenses
(1)Income tax expenses
In RMB
113
Items Amount of current period Amount of previous period
Current income tax expense 9,599,442.08 5,972,581.36
Deferred income tax expense 173,565.75 -650,716.83
Total 9,773,007.83 5,321,864.53
(2)Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits 4,046,153.95
Income tax computed in accordance with the applicable tax rate 1,011,538.50
Effect of different tax rate applicable to the subsidiary Company 3,472,144.47
Influence of non taxable income 150,265.11
Impact of non-deductible costs, expenses and losses 19,450.97
Affect the use of deferred tax assets early unconfirmed
-88,607.93
deductible losses
The current period does not affect the deferred tax assets
5,208,216.71
recognized deductible temporary differences or deductible loss
Income tax expense 9,773,007.83
77. Other comprehensive income
Refer to the notes 57
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of current period Amount of previous period
Government Subsidy 11,035,139.06 5,396,000.00
Bank deposit interest income and other 18,080,774.86 20,764,799.70
Total 29,115,913.92 26,160,799.70
(2)Other cash paid related to operating activities
In RMB
Items Amount of current period Amount of previous period
R&D 11,302,429.57 15,280,060.45
114
Office Expense 445,468.55 515,020.20
Business fee 730,785.55 699,725.26
Travel expenses 1,023,309.74 632,243.41
Transportation fee 2,580,960.13 1,402,849.04
Agency Charge 4,580,993.81 1,639,670.22
Insurance expenses 2,334,047.94 123,836.06
Water and electricity 2,293,665.75 2,017,209.50
Rental fee 1,031,667.72 1,804,835.86
Refund deposit 4,906,692.00 61,102.53
Other 764,041.43 1,403,743.74
Total 31,994,062.19 25,580,296.27
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structured deposits, financial products,
620,264,450.94 1,903,828,974.66
principal and income
Total 620,264,450.94 1,903,828,974.66
(4).Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit investment 985,495,790.87 1,830,500,000.00
Total 985,495,790.87 1,830,500,000.00
（5）Other cash received in relation to financing activities
Not applicable
（6）Cash paid related with financing activities
In RMB
Items Amount of current period Amount of previous period
Restricted stock of stock repurchase
11,448,442.40 0
incentive object
Total 11,448,442.40 0
115
79. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit -5,726,853.88 4,558,099.13
Add: Impairment loss provision of assets -14,622,141.27 -3,940,075.77
Depreciation of fixed assets, oil and gas
55,627,659.43 40,523,419.76
assets and consumable biological assets
Amortization of intangible assets 689,491.93 620,162.74
Amortization of Long-term deferred
350,578.98 155,136.82
expenses
Loss on disposal of fixed assets, intangible
-12,236,686.25 43,338.08
assets and other long-term deferred assets
Financial expenses ("-" for income) -730,687.94 -3,852,587.66
Investments losses ("-" for gains) 206,057.55 -28,152,710.15
Decreases in the deferred income tax assets
348,251.61 -650,716.83
("-" for increases)
Decreases in inventories ("-" for increases) -63,857,296.55 -45,300,979.12
Decreases in operating receivables ("-" for
110,200,333.49 -78,431,655.56
increases)
Increases in operating receivables（"-" for
-46,422,344.75 -14,422,320.88
decreases）
Net cash flows from operating activities 23,826,362.35 -128,850,889.44
2 、 Significant investment and financing
activities involving no cash receipts and -- --
payments
3、Net change in cash and cash equivalents: -- --
Closing balance of cash 255,546,268.35 1,014,735,793.86
Less: Opening balance of cash 1,133,574,235.22 1,161,240,139.33
Net increase in cash and cash equivalents -878,027,966.87 -146,504,345.47
(2) Net Cash paid of obtaining the subsidiary
Not applicable
116
(3) Net Cash receive of disposal of the subsidiary
Not applicable
(4) Component of cash and cash equivalents
In RMB
Items Year-end balance Year-beginning balance
I. Cash 255,546,268.35 1,133,574,235.22
Including：Cash at hand 10,934.20 13,559.60
Demand bank deposit 257,097,913.26 1,133,556,630.43
Demand other monetary funds 4,052.27 4,045.19
III. Balance of cash and cash equivalents at
255,546,268.35 1,133,574,235.22
the period end
80. Note of statement of changes in the owner's equity
Not applicable
81. The assets with the ownership or use right restricted
Not applicable
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds -- --
Including：USD 1,271,180.24 6.87470 8,738,982.79
Euro
HKD 863,940.85 0.87970 760,008.77
Yen 993,624.00 0.063816 63,409.11
Account payable -- --
Including：USD 1,035,197.73 6.87470 7,116,673.85
Euro
HKD 278,280.00 0.87970 244,802.92
Yen
Long-term borrowing -- --
Including：USD
117
Euro
HKD
Other receivable
Including：USD 37,399.02 6.87470 257,107.04
HKD
Yen
Account payable
Including：USD 4,077,489.83 6.87470 28,031,519.34
HKD
Yen 1,443,783,619.98 0.063816 92,136,495.49
Other payable
Including：USD 812,419.50 6.87470 5,585,140.34
HKD 3,044.46 6.87470 2,667.56
Yen 38,255,692.33 0.063816 2,441,325.26
Euro 106,218.00 7.81700 830,306.11
Short-term borrowing
Including：USD 3,081,888.71 6.87470 21,187,060.31
HKD
Yen 464,627,530.00 0.063816 29,650,670.45
Interest payable
Including：USD 37,635.02 6.87470 258,729.47
HKD
Yen 2,762,632.97 0.063816 176,300.19
(2) Note to overseas operating entities, including important overseas operating entities, wich should
be disclosed about its principal business place, function currency for bookkeeping and basis for the
choice. In case of any change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
83. Hedging
Not applicable
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
118
Amount included in current
Items Amount Project
profit and loss
Textile special funds 2,000,000.00 Other income 71,428.58
High-tech Industrialization
2,000,000.00 Other income 100,000.00
demonstration projects
National grant fundsfor new flat
10,000,000.00 Other income 500,000.00
panel display industry
Grant funds for TFT-LCD
13,000,000.00 Other income 649,999.97
polarizer industry project
Grant funds for TFT-LCD
polarizer narrow line (line 5) 5,000,000.00 Other income 250,000.02
project
Purchase of imported
1,750,902.00 Other income 87,545.09
equipment and technology
Innovation and venture capital
500,000.00 Other income 25,000.04
for TFT-LCD polarier I project
Shenzhen polarizing materials
and Technology Engineering
500,000.00 Other income 25,000.02
Laboratory innovation venture
capital
Shenzzhen Engineering
laboratory polarizing material 5,000,000.00 Other income 250,000.02
and technical engineering
Capital funding for Technology
3,000,000.00 Other income 150,000.00
Center
Subsidy funds to support the int
roduction of advanced technolo 143,881.00 Other income 7,194.00
gy
Local supporting funds for
TFT-LCD polarizer Phase II 15,000,000.00 Other income 750,000.00
Project (line 6)
State subsidy for TFT-LCD
polarizer Phase II Project (line 10,000,000.00 Other income 500,000.00
6)
Innovation and venture capital
for TFT-LCD polarizer Phase II 500,000.00 Other income 25,000.00
Project (line 6)
key technology
research and development
5,000,000.00 Other income 250,000.02
projects of optical
compensation film for polarizer
Strategic industries
5,000,000.00 Other income 1,250,000.00
Development fund of
119
Guangdong Province
Grants of Purchase equipment
of TFT-LCD polarizing film 30,000,000.00 Other income 1,500,000.00
phase II project
Old elevator renovation fund
325,380.00 Other income 55,877.85
subsidies
The ministry of industry and
information technology, the
ministry of finance, the circ first
4,806,400.00 Other income 2,231,202.83
batch of new material
application insurance
compensation
Compensation for land
requisition by Longhua Street 103,317.00 Other income 0.00
Office (factory wall)
Name: Industrialization Project
of Polarizer for Ultra Large Size 30,000,000.00 Other income 0.00
TV (Line 7)
Research & development
subsidy for key technologies of
2,000,000.00 Other income 0.00
ultra-thin IPS polarizer for
smart phone terminals
Finance committee of Shenzhen
municipality (R&D of key
technology of high-performance 5,000,000.00 Other income 0.00
polarizer for large size display
panel of 2018N007)
Shenzhen Standard Special
360,000.00 Other income 360,000.00
subsidy
Government subsidies related to
1,935,000.00 Other income 1,935,000.00
income
Electricity subsidy 61,890.62 Other income 61,890.62
Total 11,035,139.06
（2）Government subsidy return
□ Applicable √ Not applicable
Other notes：
120
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
Not applicable
(2) Combined cost and goodwill
Not applicable
(3) The identifiable assets and liabilities of acquiree at purchase date
Not applicable
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value
measured again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises
merger and gaining the control during the reporting period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value
of liabilities of the acquiree at acquisition date or closing period of the merge
Not applicable
(6) Other notes:
Nil
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
Not applicable
(2) Combination cost
Not applicable
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
Not applicable
121
3. Counter purchase
Not applicable
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost
control in reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
6.Other
Not applicable
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
Shenzhen Lishi
Domestic trade,
Industry Establish
Shenzhen Shenzhen Property 100.00%
Development Co.,
Management
Ltd
Accommodation, Establish
Shenzhen
Shenzhen Shenzhen restaurants, 100.00%
Huaqiang Hotel
business center;
Shenfang
Property Property Establish
Shenzhen Shenzhen 100.00%
Management Co., Management
Ltd.
Production of Establish
Shenzhen Beauty
fully electronic
Century Garment Shenzhen Shenzhen 100.00%
jacquard knitting
Co., Ltd.
whole shape
Shenzhen Polarizer
Shengbo Shenzhen Shenzhen 60.00% Purchase
production and
Ophotoelectric
122
Technology Co., sales
Ltd
Shenzhen
Shenfang Import Operating import Establish
Shenzhen Shenzhen 60.00%
& export Co., and export
Ltd. business
Shengtou Establish
(Hongkong) Production and
Hongkong Hongkong 100%
sales of polarizer
Co.,Ltd.
（2）Significant not wholly-owned subsidiaries
In RMB
Profit or loss attributable
Holding proportion of Dividend declared to Closing balance of
Name to non-controlling
non-controlling interest non-controlling interest non-controlling interest
interest
Shenzhen Shengbo
Ophotoelectric 40.00% -13,559,141.86 0.00 1,072,348,399.88
Technology Co., Ltd
（3）Main financial information of significant not wholly-owned subsidiaries
In RMB
Closing balance Beginning balance
Non-curr Non-curr
Subsidia Non-curr Non-curr
Current Total Current ent Total Current Total Current ent Total
ries ent ent
assets assets liabilities Liabilitie liabilities assets assets liabilities Liabilitie liabilities
assets assets
s s
Shenzhe
n
Shengbo
Ophotoel 1,769,42 1,386,31 3,155,73 369,764, 127,739, 497,503, 2,309,72 1,362,86 3,672,59 843,110, 136,186, 979,297,
ectric 1,245.90 0,959.94 2,205.84 378.24 177.53 555.77 7,042.47 8,246.21 5,288.68 812.37 802.53 614.90
Technolo
gy Co.,
Ltd
In RMB
Current term Last term
Subsidiaries Operating Total Cash flow Operating Total Cash flow
Net profit Net profit
revenue comprehensi from revenue comprehensi from
123
ve income operating ve income operating
activities activities
Shenzhen
Shengbo
893,168,312. -35,069,023.7 -35,069,023.7 73,481,662.8 392,382,938. -13,141,819.5 -13,141,819.5 -123,066,997.
Ophotoelectri
79 1 1 6 55 9 9 41
c Technology
Co., Ltd
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Not applicable
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Not applicable
2. The transaction of the Company with its owner’s equity share changed but still controlling the
subsidiary
(1) Note to owner’s equity share changed in subsidiary
Not applicable
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's
equity of the parent company
Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Shareholding Ratio (%) The accounting
Name of Main Places of Registration Nature of treatment of
Subsidiary Operation Place Business direct indirect investment in
associates
Shenzhen Haohao
Property Leasing Shenzhen Shenzhen Property leasing 50.00% Equity method
Co., Ltd.
Shenzhen
Changlianfa
Shenzhen Shenzhen Property leasing 40.25% Equity method
Printing and
dyeing Company
Jordan Garment Jordan Jordan Manufacturing 35.00% Equity method
124
Factory
Yehui
International Co., Hongkong Hongkong Manufacturing 22.75% Equity method
Ltd.
Anhui Huapeng
Anhui Anhui Manufacturing 50.00% Equity method
Textile Co., Ltd.
Shenzhen
Printing & Shenzhen Shenzhen Property leasing 50.16% Equity method
Dyeing Co., Ltd.
（2）The Summarized Financial Information of Joint Ventures
Not applicable
（3）The Summarized Financial Information of Associated Enterprises
Not applicable
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2019 Opening balance/June 30, 2018
Joint venture： -- --
Total book value of the investment 17,425,766.44 17,425,766.44
Total amount of the pro rata calculation of
-- --
the following items
-- Net profit -1,588,603.47 393,860.77
-- Total comprehensive income -1,588,603.47 393,860.77
Associated enterprise： -- --
Total book value of the investment 16,015,465.03 15,526,319.22
Total amount of the pro rata calculation of
-- --
the following items
--Net profit -1,243,075.64 223,084.90
--Other Comprehensive income 807,241.54 120,349.15
--Total comprehensive income -435,834.10 343,434.05
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer
funds to the Company
125
Not applicable
(6) The excess loss of joint venture or associated enterprise
Not applicable
(7) The unrecognized commitment related to joint venture investment
Not applicable
(8) Contingent liabilities related to joint venture or associated enterprise investment
Not applicable
4. Significant common operation
Not applicable
5. Equity of structure entity not including in the scope of consolidated financial statements
Not applicable
6.Other
Nil
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables,
investments, loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks
associated with these financial instruments mainly include credit risk, market risk and liquidity risk.
The company’s management shall manage and monitor these risks and ensure above risks to be
controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the
bank deposits are mainly deposited in the medium and large commercial banks with strength, high
credibility. For the receivables, the company has developed the relevant policies to control the credit
risk, and set up the corresponding debt and credit limit after the credit status of debtor is evaluated
based on financial condition of debtor, credit history, external ratings, possibility of guarantee obtained
from the third party. Meanwhile, the company shall regularly monitor the debtor’s credit history. With
regard to the bad credit record for the debtor, the company shall adopt the written reminder, shortening
or cancel of credit period to ensure the overall credit risks within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial
126
instruments affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced
the interest rate risk of the cash flow due to the financial liability of the floating interest rate, and faced
the interest rate risk of the fair value due to the financial liability of the fixed interest rate. The company
shall determine the relative proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities
based on the price of US dollar and JPY. The company matches the income and expenditure of foreign
currency as far as possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other
financial assets. The company shall guarantee to have the sufficient funds to repay the debts through
monitoring the cash balance, the marketable securities available to be cash and the rolling forecast for
the future cash flow.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Fir value Fir value
Items Fir value measurement
measurement items measurement items Total
items at level 1
at level 2 at level 3
I. Consistent fair value measurement -- -- -- --
1. Financial assets measured at fair value
760,000,000.00 760,000,000.00
through profit or loss
Financial assets measured at fair value through
242,767,132.26 242,767,132.26
changes in comprehensive income
Total of Consistent fair value measurement 1,002,767,132.20 1,002,767,132.20
II Inconsistent fair value measurement -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
1
The input value at the first level is that the company can obtain unadjusted quotations of the
same assets or liabilities in the active market on the measurement date.
127
XII. Related parties and related-party transactions
1.Parent company information of the enterprise
Registered The parent company The parent company of
Name Registered address Nature of the Company's the Company’s vote
capital
shareholding ratio ratio
Equity investment ,
Shenzhen 18/F, Investment
Real-estate
Investment Building, Shennan Road, 2,534,900.00 45.78% 48.94%
Development and
Holdings Co.,Ltd. Futian District, Shenzhen
Guarantee
2.Subsidiaries of the Company
Details refer to the Note IX-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-3, Interests in joint ventures or associates
Information on other joint venture and associated enterprise of occurring related party transactions
with the Company in reporting period, or form balance due to related party transactions in previous
period:
Name Relation of other Related parties with the company
Shenzhen Haohao Property Leasing Co., Ltd. Sharing Company
Shenzhen Changlianfa Printing and dyeing Company Sharing Company
Yehui International Co., Ltd. Sharing Company
Anhui Huapeng Textile Co., Ltd. Sharing Company
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Shenzhen Guanhua Printing & Dyeing Co., Ltd. Sharing Company
4.Other Related parties information
Other related party Relationship to the Company
Shenzhen Shenchao Technology Investment Co., Ltd. Subject to the same party controls
Shenzhen Tianma Microelectronics Co., Ltd. Chairman of the Board Is the Vice Chairman of the Company
Shengbo （HK）Co., Ltd. The Company Executives are Director of the company
On the subsidiary Shenzhen Shengbo Optoelectronics Technology
Hangzhou Jinjiang Group Co., Ltd.
Co., Ltd. has a significant impact on the actual control of the
128
shareholders controlled by the enterprise
Kunshan Zhiqimei Material Technology Co., Ltd. Sharing Company of Hangzhou Jinjiang Group Co., Ltd.
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Acquisition of goods and reception of labor service
In RMB
Whether over the
Related party Content Current amount Approval trading limit Last amount
trading limit(Y/N)
Kunshan Zhiqimei
Material Purchasing
58,479,328.60 208,800,000.00 No 14,103,038.28
Technology Co., polarizer
Ltd.
Related transactions on sale goods and receiving services
In RMB
Related parties Content of related transaction Amount of current period Amount of previous period
Kunshan Zhiqimei Material
Sales polarizer sheet 79,108,319.24 0.00
Technology Co., Ltd.
Shenzhen Tianma
Sales polarizer sheet 740,904.84 1,166,047.31
Microelectronics Co., Ltd.
(2) Related trusteeship/contract
Not applicable
(3) Information of related lease
Not applicable
(4) Related-party guarantee
Not applicable
(5) Inter-bank lending of capital of related parties：
Not applicable
(6) Related party asset transfer and debt restructuring
Not applicable
129
(7) Rewards for the key management personnel
In RMB
Items Amount of current period Amount of previous period
Senior Excutive 3,136,527.00 2,643,194.00
(8) Other related transactions
In order to carry out TFT-LCD polarizer project construction, the company signed an entrusted
loan contract with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu
Building Branch of Ping An Bank in 2010. The contract stipulates that Shenzhen Shenchao Science
& Technology Investment Co., Ltd. entrusts Shenzhen Jiangsu Building Branch of Ping An Bank to
loan 200,000,000.00 yuan to the Company. The term of the loan was 108 months from the date the
first entrusted loan was issued to the company's account. The entrusted loan interest rate was lowered
by 2% based on the 5-year commercial loan interest rate announced and issued by the People's Bank
of China. In case of adjustments to the 5-year commercial loan interest rate of the People's Bank of
China, from the first day of the next month of the benchmark interest rate adjustment, the entrusted
loan interest rate will be lowered by two percentage points according to the adjusted 5-year
commercial loan interest rate. During the reporting period, all remaining principal and interest have
been repaid, and the company's loan balance is 0 yuan.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shenzhen Tianma
Account receivable Microelectronics 473,735.18 23,686.76 894,474.64 44,723.73
Co., Ltd.
Kunshan Zhiqimei
Account receivable Material Technology 87,255,501.33 4,362,775.07 84,062,627.96 4,203,131.40
Co., Ltd.
Other Account Anhui Huapeng
1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
receivable Textile Company
Other Account Shenzhen Dailishi
416,464.86 20,823.24
receivable Underwear Co., Ltd.
130
（2）Payables
In RMB
Name Related party Amount at year end Amount at year beginning
Account payable Kunshan Zhiqimei Material Technology Co., Ltd. 29,280,982.97 17,405,753.46
Other payable Shenzhen Xinfang Knitting Co., Ltd. 244,789.85 244,789.85
Other payable Shenzhen Changlianfa Printing and dyeing Co., Ltd. 1,178,449.95 1,178,449.95
Other payable Shenzhen Changlianfa Printing and dyeing Co., Ltd. 3,554,489.85 4,454,489.85
Other payable Yehui International Co.,Ltd. 1,194,824.20 1,190,070.22
Other payable SAPO （Hongkong）Co., Ltd. 315,000.00 315,000.00
Interest payable Shenzhen Shenchao Technology Investment Co., Ltd. 0.00 37,220,662.08
Other payable Shenzhen Dailishi Underwear Co., Ltd. 85,599.94 0.00
7. Related party commitment
Not applicable
8.Other
Nil
XIII. Share payment
1. Overall situation of share payment
√ Applicable □Not applicable
In RMB
Total amount of various equity instruments granted by the company
0.00
during the current period
Total amount of various equity instruments that the company exercises
0.00
during the period
Total amount of various equity instruments that have expired in the
0.00
current period
The company issued 4,752,300 restricted stocks at the
end of the period, and the grant price was 5.73
The scope of executive price of the company’s outstanding share options yuan/share. Restrictions shall be lifted at the rate of
at the end of the period and the remaining term of the contract
40%, 30%, and 30% respectively after 12 months, 24
months, and 36 months after the first transaction date of
24 months after the completion of the registration. The
131
period of validity of the entire plan shall not exceed 60
months from the date of granting the restricted stock to
the date on which the restricted stocks granted to the
incentive object are all released from restrictions on
sale or cancelled by repurchase.
The scope of executive price of the company’s other equity instruments at
0
the end of the period and the remaining term of the contract
Other notes
On December 14, 2017, the company's 3rd Extraordinary General Meeting of Shareholders in
2017 passed the Proposal on ‘Shenzhen Textile (Group) Co., Ltd. 2017 Restricted Stock Incentive
Plan (Draft) and Abstract’; on December 14, 2017, the board of directors of the company reviewed
and passed the Proposal on Adjusting the List of Incentive Objects of Restricted Stock Incentive
Plans and the Number of Equity Granted of 2017, and the Proposal on Granting Restrictive Shares to
Incentive Objects. On December 14, 2017, the company granted 4,752,300 restricted shares to the
incentive object, the grant price was 5.73 yuan/share. Restrictions shall be lifted at the rate of 40%,
30%, and 30% respectively after 12 months, 24 months, and 36 months after the first transaction date
of 24 months after the completion of the registration. The company's performance assessment for the
restricted shares granted each period is as follows:
Restriction lifting period Performance assessment goals
In 2018, the earnings per share shall be no less than 0.07 yuan, and shall not be lower than
the 75 fractiles level of the comparable listed companies in the same industry; the growth
The first restriction lifting rate of operating revenue in 2018 compared with 2016 is not less than 70%, and is not
period lower than the 75 fractiles level of comparable listed companies in the same industry; in
2018, the proportion of optical film business such as polarizers to operating revenue is no
less than 70%.
In 2019, earnings per share shall be no less than 0.08 yuan, and shall not be lower than the
75 fractiles level of the comparable listed companies in the same industry; the growth rate
The second restriction of operating revenue in 2019 compared with 2016 is not less than 130%, and is not lower
lifting period than the 75 fractiles level of comparable listed companies in the same industry; in 2019, the
proportion of optical film business such as polarizers to operating revenue is not less than
75%.
In 2020, the earnings per share shall be no less than 0.20 yuan, and shall not be lower than
the 75 fractiles level of comparable listed companies in the same industry; the growth rate
The third restriction lifting of operating revenue in 2020 is not less than 200% compared to 2016, and is not lower than
period the 75 fractiles level of comparable listed companies in the same industry. In 2020, the
proportion of optical film business such as polarizers to operating revenue will be no less
than 80%.
Note: Earnings per share=net profit/total capital stock attributable to common shareholders of
132
the Company upon deduction of non-recurring profit and loss.
2. Equity-settled share-based payment
√ Applicable □Not applicable
In RMB
Determination method of the fair value of equity instruments on the The closing price of the company's stock on grant date - grant
grant date price
On each balance sheet date of the waiting period, it is
determined based on the latest information such as the change
Determination basis of the number of vesting equity instruments
in the number of people that can be released from restrictions
and the completion of performance indicators
Equity-settled share-based payment is included in the accumulated
0.00
amount of capital reserve
Total amount of fees confirmed by equity-settled share-based
0.00
payments in the current period
Other notes
The earnings per share after deduction of non-recurring profit and loss was RMB -0.13/share in
2018, which was lower than the RMB 0.07/share--the performance assessment target in the first
period of lifting restrictions on sales; besides, the Company's 2019 budget and 2019-2021 rolling
operation plan show that the Company is not expected to complete the performance assessment
targets in the second period of lifting restrictions on sales and third period of lifting restrictions on
sales in 2019 and 2020.
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Not applicable
5.Other
Nil
133
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
Nil
2. Contingency
(1) Significant contingency at balance sheet date
Nil
(2) The Company have no significant contingency to disclose, also should be stated
Nil
3.Other
Nil
XV. Events after balance sheet date
1. Significant events had not adjusted
Not applicable
2. Profit distribution
Not applicable
3. Sales return
Not applicable
4. Notes of other significant events
Nil
XVI. Other significant events
Nil
134
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Amount in year-end Amount in year-beginning
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n(%) n(%) n(%) n(%)
Accrual of bad debt
provision by single
item
Including：
Accrual of bad debt
594,006. 29,700.3 564,306.4 570,471.8
provision by 100.00% 5.00% 100.00% 28,523.59 5.00% 541,948.21
80 4 6 0
portfolio
Including：
594,006. 29,700.3 564,306.4 570,471.8
Total 100.00% 28,523.59 5.00% 541,948.21
80 4 6 0
Accrual of bad debt provision by portfolio:29,700.34 yuan
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Within 1 year 594,006.80 29,700.34 5.00%
Including：Subtotal within 1
594,006.80 29,700.34 5.00%
year
Total 594,006.80 29,700.34 --
Notes of the basis of recognizing the group: The combination of the ageing status of accounts
receivable as a credit risk feature.
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to
the general model of expected credit loss:
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year 594,006.80
Including：Subtotal within 1 year 594,006.80
135
Total 594,006.80
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Accrual of bad debt
provision by 28,523.59 1,176.75 29,700.34
portfolio:
Total 28,523.59 1,176.75 29,700.34
(3) The actual write-off accounts receivable
Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Name Closing balance Proportion % Balance of Bad debt
provision
Shenfang Building and 594,006.80 100% 29,700.34
Peripheral rent
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Nil
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Nil
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Interest receivable 6,737,221.93 4,974,799.47
Other accounts receivable 8,403,787.65 8,881,582.55
Total 15,141,009.58 13,856,382.02
136
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
Fixed deposit 537,095.34 884,141.92
Structure deposit 6,200,126.59 4,090,657.55
Total 6,737,221.93 4,974,799.47
2) Significant overdue interest
Nil
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
Not applicable
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Internal current account 8,575,600.00 8,578,542.00
Unit account 14,951,143.71 15,451,143.71
Other 35,200.01 35,200.01
Total 23,561,943.72 24,064,885.72
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
1,090,352.22 14,092,950.95 15,183,303.17
2019
Balance as at January 1,
—— —— —— ——
2019 in current
137
Turn back in the current
25,147.10 25,147.10
period
Balance as at June 30 1,065,205.12 14,092,950.95 15,158,156.07
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 3,745,284.22
Including：Subtotal within 1 year 3,745,284.22
1-2 years 4,454,759.77
2-3 years 2,810,047.30
Over 3 years 12,551,852.43
Over 5 years 12,551,852.43
Total 23,561,943.72
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Accrual of bad debt
1,090,352.22 25,147.10 1,065,205.12
provision by portfolio
Accrual of bad debt
14,092,950.95 14,092,950.95
provision by single item
Total 15,183,303.17 25,147.10 15,158,156.07
The company's provision for bad debts of other receivables is based on the expected loss method,
and the credit loss of other receivables is expected throughout the duration. For other receivables with
similar risk characteristics, the company combines them according to aging status, and the expected
credit loss rate corresponding to aging is shown in this Section V, Important Accounting Policies and
Other Receivables in Accounting Estimates; At the end of the period, other receivables that have
objective evidence of impairment are individually tested for impairment, and impairment losses are
recognized and provision for bad debts is made according to the difference between the present value
of the estimated future cash flow and its book value.
As of the end of the reporting period, the balance of other receivables combined by aging and
provision for bad debts are shown in the following table:
138
Closing balance
Aging
Other account receivable Provision for bad debts Expected loss rate（%）
Within 1 year 3,745,284.22 187,264.21 5.00
1-2 years 4,454,759.77 445,475.98 10.00
2-3 years 1,010,047.30 303,014.19 30.00
Over 3 years 258,901.48 129,450.74 50.00
Total 9,468,992.77 1,065,205.12
(4) Other account receivables actually cancel after write-off
Nil
(5)Top 5 of the closing balance of the other accounts receivable collected according to the arrears
party
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
First Unit account 11,389,044.60 Over 5 years 48.34% 11,389,044.60
Internal current
Second 8,575,600.00 1-3 years 36.40% 912,800.00
account
Third Unit account 1,800,000.00 2-3 years 7.64% 1,800,000.00
Fourth Unit account 783,579.12 1-2 years 3.33% 61,916.94
Fifth Unit account 592,420.00 Over 5 years 2.51% 592,420.00
Total -- 23,140,643.72 -- 98.21% 14,756,181.54
(6) Accounts receivable involved with government subsidies
Nil
(7) Other account receivable which terminate the recognition owning to the transfer of the financial
assets
Nil
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of
other accounts receivable
Nil
3. Long-term equity investment
In RMB
139
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
1,968,806,395.91 16,582,629.30 1,952,223,766.61 1,980,806,395.91 16,582,629.30 1,964,223,766.61
subsidiaries
Investments in
associates and 163,733,127.58 163,733,127.58 32,952,085.66 32,952,085.66
joint ventures
Total 2,132,539,523.49 16,582,629.30 2,115,956,894.19 2,013,758,481.57 16,582,629.30 1,997,175,852.27
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen Shengbo
Optoelectronic
1,910,247,781.94 1,910,247,781.94 14,415,288.09
Technology Co.,
Ltd.
Shenzhen Lisi
Industrial
8,073,388.25 8,073,388.25
Development Co.,
Ltd.
Shenzhen Beauty
Century Garment 28,700,058.79 12,000,000.00 16,700,058.79 2,167,341.21
Co., Ltd.
Shenzhen
15,489,351.08 15,489,351.08
Huaqiang Hotel
Shenfang Property
Management Co., 1,713,186.55 1,713,186.55
Ltd.
Total 1,964,223,766.61 12,000,000.00 1,952,223,766.61 16,582,629.30
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period Closing
balance
Decrease Gain/loss Adjustme Declarati Withdraw
Opening Add Other Closing of
Name d of nt of on of cash n
balance investmen equity Other balance impairme
investmen Investme other dividends impairme
t changes nt
t nt comprehe or profit nt
provision
140
nsive provision
income
I. Joint ventures
Shenzhen
Haohao
5,641,139 637,149.7 2,000,000 4,278,289
Property
.93 1 .00 .64
Leasing
Co., Ltd.
Anhui
Huapeng 11,784,62 -912,673. 10,871,95
Textile 6.51 03 3.48
Co.,Ltd.
Shenzhen
Guanhua
65,503,36 -520,438. 67,584,49 132,567,4
Printing
0.10 51 7.83 19.42
& Dyeing
Co., Ltd.
Shenzhen
Xieli
Automobi 0.00
le Co.,
Ltd.
17,425,76 65,503,36 -795,961. 2,000,000 67,584,49 147,717,6
Subtotal
6.44 0.10 83 .00 7.83 62.54
II. Associated enterprises
Shenzhen
Changlian
fa
2,234,057 2,316,173
Printing 82,115.91
.19 .10
and
dyeing
Company
Jordan
2,363,614 -202,853. 674,303.1 2,835,064
Garnent
.70 10 7 .77
Factory
Yehui
Internatio 10,928,64 -197,358. 132,938.3 10,864,22
nal Co., 7.33 53 7 7.17
Ltd.
15,526,31 -318,095. 807,241.5 16,015,46
Subtotal
9.22 72 4 5.04
141
32,952,08 65,503,36 -1,114,05 807,241.5 2,000,000 67,584,49 163,733,1
Total
5.66 0.10 7.55 4 .00 7.83 27.58
（3）Other notes
The other amount of Guanhua Printing & Dyeing Company is to convert Guanhua Printing & Dyeing
Investment from other equity instruments to long-term equity investment.
4.Business income and Business cost
In RMB
Amount of current period Amount of previous period
Items
Business income Business cost Business income Business cost
Income from Main
33,021,263.65 4,357,490.45 31,576,065.65 5,166,425.81
Business
Other Business income 1,572,244.63 1,572,244.63 1,767,833.77 1,767,833.77
Total 34,593,508.28 5,929,735.08 33,343,899.42 6,934,259.58
Whether implemented new revenue guidelines?
□ Yes √ No
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
-1,114,057.55 616,945.67
measured by adopting the Equity method
Dividend income from investments in other
908,000.00
equity instruments during the holding period
Investment income received from holding of
574,774.15
available-for –sale financial assets
Total -206,057.55 1,191,719.82
6.Other notes
Nil
XVIII. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss 12,236,686.25
Govemment subsidy recognized in current
gain and loss(excluding those closely related
11,035,139.06
to the Company’s business and granted
under the state’s policies)
142
Other non-business income and expenditures
4,241,169.03
other than the above
Less :Influenced amount of income tax 3,121,789.28
Influenced amount of minor shareholders’
6,010,334.88
equity (after tax)
Total 18,380,870.18 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the
definition in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering
Their Securities to the Public-Extraordinary Gains and Losses, or classifies any extraordinary
gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnings per share
EPS（Yuan/share）
Profit of report period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to the
Common stock shareholders of 0.32% 0.0153 0.0153
Company.
Net profit attributable to the
Common stock shareholders of
-0.43% -0.0206 -0.0206
Company after deducting of
non-recurring gain/loss.
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international
and Chinese accounting standards
□ Applicable √Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas
accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of
the
foreign institutions
Not applicable
4. Other
Nil
143
