深圳中冠纺织印染股份有限公司
Shenzhen Victor Onward Textile Industrial Co., Ltd.
2011年半年度报告
The Semiannual Report 2011
August 29, 2011
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Important Notes
The board of directors and directors of the Company hereby guarantees that there are no false records,
misleading representation or important omissions in this report and shall assume joint and several liability
for the authenticity, accuracy and completeness of the contents hereof.
Hu Yongfeng, Chairman of the Board of Directors and General Manager, Mr.Zhang Jinliang, Deputy General Manager
and Mr. Ren Changzheng, Manager of Finance Department represent and warrant the financial and accounting report in
the Semi-annual report is true and complete.
The financial report of the semi-annual report has not been audited.
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Table of contents
Chapter I. Brief Introduction of the Company
Chapter II. Change of Share Capital and Shareholding of Principal Shareholders
Chapter III. Information about Directors, Supervisors and Senior Executives
Chapter IV. Report of the Board of Directors
Chapter V. Important Events
Chapter VI. Financial Report (Unaudited)
Chapter VII. List of Documents Available for Inspection
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Chapter I. Brief Introduction of the Company
I. Brief Introduction of the Company
(I) Name of the Company in Chinese: 深圳中冠纺织印染股份有限公司
Name in English: Shenzhen Victor Onward Textile Industrial Co., Ltd.
English abbreviation: VICTOR ONWARD
(II) Stock exchange for listing: Shenzhen Stock Exchange
Stock Abbreviation: ST Victor Onward A, ST Victor Onward B
Stock Code : 000018, 200018
(III) Registered address: No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen
Office address: No. 26, Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen
Contact address: Room 1308, Hualian Building, No.2008 Shennan Zhong Road, Shenzhen
Zip Code: 518119
Website: http://www.chinaszvo.com
E-mail：szvo@chinaszvo.com
(IV) Legal Representative: Hu Yongfeng
(V) Secretary of the Board of Directors : Zhang Jinliang
Contact address: Room 1308, Hualian Building, No.2008 Shennan Zhong Road, Shenzhen
Tel: （755）83668254
Fax: （755）83668427
E-mail：cx@chinaszvo.com
(VI) Designated newspapers for information disclosure: Securities Times and Hong Kong Commercial
Daily
Designated website for information disclosure: http://www.cninfo.com.cn
The place for preparing and placing the semiannual report: Secretariat of the Board of the Company
(VII) Other Relevant Information:
1. The date and place when and where the Company made its first registration:
The Company was first registered as Shenzhen Victor Onward Printing and Dyeing Co., Ltd. in
Shenzhen in 1984.
The Company changed its registration and was registered as Shenzhen Victor Onward Textile Industrial
Co., Ltd. in Shenzhen in 1991.
2. Company’s Enterprise Legal Business Registration Number:：440301501131182
3. Tax Registration No.: 440301618801483
4. The name and business address of the Certified Public Accountants engaged by the Company
Name: Shinewing Certified Public Accountants
Address: Room 4001A,Lianhe Plaza, Futian District, Shenzhen, China
II. Highlights of financial data and indexes
(I) Main profit indexes for the semi-annual 2011
Unit: RMB
End of the report End of the Increase /Decrease
year previous year （％）
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Total assets 184,292,208.00 195,732,419.00 -5.84%
Owners’ equity attributable to shareholders
131,308,677.00 142,929,499.00 -8.13%
of the listed company
Share capital 169,142,356.00 169,142,356.00 0.00%
Net assets per share attributable to
shareholders of the listed 0.78 0.85 -8.24%
company(RMB/share)
Report period Same period last Increase /Decrease （％）
(January-June) year
Total operating income 5,528,810.00 5,280,588.00 4.70%
Operating profit -8,268,334.00 5,365,210.00 -254.11%
Total profit -8,261,438.00 5,364,951.00 -253.99%
Net profit attributable to shareholders of the
-8,232,521.00 5,412,704.00 -252.10%
listed company
Net profit attributable to shareholders of the
listed company after deducting -8,253,558.00 5,412,963.00 -252.48%
non-recurring gains and losses
Basic earnings per share(RMB/share) -0.05 0.03 -266.67%
Diluted earnings per share(RMB/share) -0.05 0.03 -266.67%
Return on equity（%） -6.08% 3.69% -9.77%
Net cash flow arising from operating
815,584.00 -371,870.00 -319.32%
activities
Net cash flow per share arising from
0 0 0.00%
operating activities (RMB/share)
(2) Items of non-recurring gains and losses deducted(yuan)
Notes（if
Items of non-recurring gains and losses Amount
applicable）
Gains and losses of non-recurring -529
Except the effective hedge business related to the normal
operation business of the Company, the profit and loss in
the changes of fair values caused by the holding of tradable
financial assets and tradable financial liabilities as well as 14,141
the investment returns in disposal of tradable financial
assets, tradable financial liabilities and saleable financial
assets
Other non-operating income and expenditure beside for the 7,425
above items
Total 21,037 -
(3) Attached schedule of profit statement
Return on net assets, Weighted
Profit in the report period Earnings per share
(%)
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Diluted
Basic earnings
earnings per
per share
share
Net profit attributable to the
owners of parent Company. -0.05 -0.05 -0.05
Net profit attributable to the
owners of parent Company after
deducting of non-recurring -0.05 -0.05 -0.05
gain/loss.
（IV）Difference adjustment statement of accounting statement :
Unit：RMB
Net profit attributable to shareholders of the Owner equity attributable to shareholders of
listed company the listed company
Beginning of the
Current term Same period last year End of the report year
report year
Pursuant to overseas
-8,175,265.00 5,472,350.00 124,454,625.00 135,858,634.00
accounting standards
Pursuant to Chinese
-8,232,521.00 5,412,704.00 131,308,677.00 142,929,499.00
accounting standards
Subitem and total adjusted pursuant to international accounting standards::
Switch back the part of
Hong Kong house
57,256.00 59,646.00 -6,854,052.00 -7,070,865.00
property assessment in
accordance with IAS
Total difference of
Chinese and overseas 57,256.00 59,646.00 -6,854,052.00 -7,070,865.00
accounting standards
Notes difference of
The influence of appreciation through appraisal of workshop and 2 parking spaces in Hong
Chinese and overseas
Kong in 1992.
accounting standards
IV. Particulars about Changes in Shareholders' Equity in the Report Period
Owner’s equity Attributable to the Parent Company Minor Total of
Items Share Attributable shareholders’ owners’
Other
Capital profit equity equity
Balance at
the
169,142,356 39,872,534 26,704,791 -98,665,017 5,874,835 -1,311,595 141,617,904
beginning of
current year
Changed in
-215,997 -8,232,521 -3,172,304 -28,917 -11,649,739
the current
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year
Balance at
the end of 169,142,356 39,656,537 26,704,791 -106,897,538 2,702,531 -1,340,512 129,968,165
this term
Chapter II. Change of Share Capital and Shareholding of Principal Shareholders
I. Particulars schedule of change in share capital
The total number and the structure of the shares of the Company remained unchanged in the report
period.
The statement of changes of share capital
Unit：Shares
Before this change Increase or decrease this time (+/-) After this change
Quantity Proportio Issuin Transfe Quantity Proporti
Bo
n% g of rred on%
nus
new from Other Subtotal
sha
share reserve
res
s s
I. Share
with
conditiona
0 0 0 0 0 0 0 0 0
l
subscriptio
n
1.State-own
0 0 0 0 0 0 0 0 0
ed shares
2.Staee-ow
ned legal
0 0 0 0 0 0 0 0 0
person
shares
3.Other
domestic 0 0 0 0 0 0 0 0 0
shares
Of which：
Domestic
legal person 0 0 0 0 0 0 0 0 0
shares
Domestic
natural
0 0 0 0 0 0 0 0 0
person
shares
4.Foreign 0 0 0 0 0 0 0 0 0
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shareholdin
g
Of
which：
Foreign
legal person 0 0 0 0 0 0 0 0 0
shares
Foreign
natural
0 0 0 0 0 0 0 0 0
person
shares
II. Shares
with
uncondition 169,142,356 100 0 0 0 0 0
al
169,142,356 100
subscription
1.Common
shares in 99,720,453 58.96 0 0 0 0 0 99,720,453 58.96
RMB
2.Foreign
shares in
69,421,903 41.04 0 0 0 0 0 69,421,903 41.04
domestic
market
3.Foregin
shares in
0 0 0 0 0 0 0 0 0
overseas
market
4.Other 0 0 0 0 0 0 0 0 0
III. Total
of capital 169,142,356 100 0 0 0 0 0 169,142,356 100
shares
II. By the end of the report period, the Company had 11,858 registered shareholders in total, including
7,259 shareholders holding A shares and 4,599 shareholders holding B shares.
III. Top 10 shareholders and top 10 holders of unconditional shares
Unit ：shares
Total number of shareholders 11,858
Particulars about the shareholding of the top ten shareholders
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Nature of Proportion Quantity of Conditional Pledged or
Name of shareholder
shareholder (%) shares held shares frozen
Domestic
non
Union Holdings Co., Ltd. State-o 25.51% 43,141,032 0 0
wned
Legal person
Foreign
STYLE-SUCCESS LIMITED 14.46% 24,466,029 0 0
Legal person
Shenzhen Textile (Group) State-owned
5.64% 9,543,394 0 0
Holdings Co., Ltd Legal person
Foreign
Rich Crown Investment Co., Ltd. 3.62% 6,114,556 0 0
Legal person
Domestic
non
Union Developing Group Co.,
State-o 3.44% 5,821,089 0 0
Ltd.
wned
Legal person
Foreign
BOCI SECURITIES LIMITED 1.15% 1,940,767 0 Unknown
Legal person
GUOTAI JUNAN Foreign
1.12% 1,895,600 0 Unknown
SECURITIES(HONGKONG)LIMITED Legal person
Foreign
Shing Ying Chieh Nature 1.11% 1.618,982 0 Unknown
person
Domestic
non
Liuzhou Jiali Real Estate
State-o 0.88% 1,496,000 0 Unknown
Development Co., Ltd.
wned
Legal person
Domestic
non
Hualong Securities Co, Ltd. State-o 0.82% 1,389,970 0 Unknown
wned
Legal person
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Union Holdings Co., Ltd. 43,141,032 RMB Common shares
Foreign shares placed in
STYLE-SUCCESS LIMITED 24,466,029
domestic exchange
Shenzhen Textile (Group) Holdings Co.,
9,534,394 RMB Common shares
Ltd
Foreign shares placed in
Rich Crown Investment Co., Ltd. 6,114,556
domestic exchange
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Union Developing Group Co., Ltd. 5,821,089 RMB Common shares
Foreign shares placed in
BOCI SECURITIES LIMITED 1,940,767
domestic exchange
GUOTAI JUNAN Foreign shares placed in
1,895,600
SECURITIES(HONGKONG)LIMITED domestic exchange
Foreign shares placed in
Shing Ying Chieh 1.618,982
domestic exchange
Liuzhou Jiali Real Estate Development
1,496,000 RMB Common shares
Co., Ltd.
Hualong Securities Co, Ltd. 1,389,970 RMB Common shares
Notes to the related relationship The controlling shareholder of the above-mentioned largest
between the shareholders or their shareholder Shenzhen Union Holdings Ltd. and fourth
concerted action shareholder Rich Crown Investment Co., Ltd.. Is Union
Developing Group Ltd.
IV. The controlling shareholder of the Company
The actual controller of the Company remained unchanged in the report period.
Chapter III. Information about Directors, Supervisors and Senior Executives
I. Status of Shareholding of Directors, Supervisors and Senior Executives
In the report period, the directors, supervisors and senior executives of the Company neither held nor
traded the shares of the Company.
II. The changes of director, supervisors and senior executives in the report period
In the report period, the shares of the Company held by the directors, supervisors and senior executives of the
Company remained unchanged.
Chapter IV. Report of the Board of Directors
I. The discussion and analysis on the operation status
The Company’s printing & dyeing plant in Shenzhen ceased production, Five subsidiaries controlled
by the Company stopped the operation of relevant printing and dyeing business due to the production
suspense of printing and dyeing mill and most of them maintained their daily operation by house property
lease. The Company’s printing & dyeing plant in Shenzhen ceased production, Due to the reason on the side of the other
party of joint venture and change of industry prospect，the capital increasing of the joint venture project has not
yet completed. Recently, We have an increasingly hollow core business.
(I) Operation achievements
Unit: RMB’0000
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January-June January-June
Items Increase/decrease Increase/decrease(%)
2011 2010
Operating
552 528 24 4.55%
income
Operation profit -826 536 -1,362 -254.10%
Total profit -826 536 -1,362 -254.10%
Net profit
attributable to
shareholders of -823 541 -1,364 -252.13%
the listed
company
1. Operation income conspicuously Increased by RMB 0.24 million year on year mainly due to Rental
income has increased;
2.Operation profit decreased by RMB 13.62 year on year mainly due to the operation loss of Zhejiang
Union Hangzhou Bay Ventures, a joint stock subsidiary;
3. The reason of Total profit and Net profit attributable to shareholders of the listed company dressed more
than last year mainly due to abovementioned.
(II) Financial status
Unit：RMB’0000
Change margin
Items June 30, 2011 December 31, 2010 Increase/decrease
(%)
Total assets 18,429 19,573 -1,144 -5.84%
Shareholders’ equity attributable
13,130 14,292 -1,162 -8.13%
Of the parent Company
1.Total assets decreased by RMB 11.44 million over the beginning of the year
mainly due to the operation loss and exchange rate changes of Zhejiang Union Hangzhou Bay Ventures, a
joint stock subsidiary;
2. Shareholders’ equity attributable of the parent Company Shareholders’ equity decreased by RMB 11.62 million
over the beginning of the year mainly due to abovementioned.
II. Operation in the report period
(I) Scope of key business
The Company's key business scope still covers printing and dyeing, processing and sales of all kinds of pure cotton, pure
linen, polyester-mixed cotton, linen-mixed cotton and blended high-grade lining and the finished garments. The vacant
ground and houses that became idle after production suspense were leased.
(II) The industry or product whose income or profit accounts for over 10% of total income from key
business or profit from key business in the report period
Unit：RMB’0000
The Status of key business in terms of industry of business
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Increase/decreas Increase or
e of income Increase/decrease decrease of Gross
In terms of business line Income from Cost of main Gross profit from main of cost of main profit ratio from
or product main operation operation ratio（%） operation over operation over the main operation
the previous year previous year (%) over the previous
(%) year (%)
Bleaching, printing
-100.00% -100.00% -71.15%
and dyeing
Lease 552 233 57.79% 23.19% 11.59% 33.03%
The status of key business in terms of Areas .
Unit：RMB’0000
Increase/decrease of income
Area Income from key business
（％）
China 461 2.44%
Hongkong and overseas 91 16.67%
(III) The profit structure and key business structure in the report period much compared with the previous
report period:
1. The operating profit in the report period (RMB-826 million) decreased by RMB13.62 million over
the same period of the previous year (RMB 5.36 million). The profit structure is as follows:
Unit :RMB’0000
Proportio Amount of Proportio
Amount
n to same period n to
Items of current Main reason for change
operating of previous operating
period
profit % year profit %
Profit from main
319 -38.62% 292 54.48% Rental income has increased.
operation
Affected by decrease of business
Selling expenses 38 7.09%
volume
Administrant
431 -52.18% 430 80.22%
expenses
Financial
36 -4.36% -36 -6.72% Influence of Exchange ratio
expenses
Income from
-4 0.48% -2 -0.37% Influence of market price fluctuation
change in fair value
With the impact of the Operating loss of Zh
Investment income -673 81.48% 678 126.49% ejiang Union Hangzhou Bay Ventures Comp
any
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2.key business structure in the report period
Unit: RMB’0000
Items In the report The same period of Increase/decrease Change
period last year amount margin (%)
Bleaching, printing and
104 -104
dyeing
Lease 552 424 128 23.19%
The vacant ground and houses that became idle after production suspense were leased.
(IV) The other business activities that have significant influences on the profit in this report period.
None.
（V）The income from investment in no joint venture accounted for more than 10% of the Company's net
profit.
Zhejiang Union Hangzhou Bay Ventures Co., Ltd., an affiliated company in which Hong Kong Victor
Onward, a subsidiary of the Company, has invested for long term, earned accumulated losses of RMB
26,995,474 in the report period. The income of the Company calculated and recognized on equity
basis is RMB-6,748,868, accounting for 81.69% of net profit for the current period.
（VI）Problems and difficulties occurred in operation
The Company is a traditional printing and dyeing enterprise. The Company has faced the situation of no
main operation. Due to delay of basic construction, Nanjing Factory failed to commence production as
scheduled. The Capital increasing of the joint venture project has not yet completed
There is no sign of improvement of the Company's printing and dyeing business in the near future and the
Company is facing an operation predicament.
III. Investment of the Company in the report period
(1) There were neither funds raised in the report period nor those raised in previous periods whose use
continued in the report period.
(2) There were no projects invested with non-raised proceeds in the report period
IV.Due to loss of real estate projects of Zhejiang Union Hangzhou Bay Ventures Co., Ltd. accounted for on
equity basis, the accumulative net profit for the period from January 2011 to September 2011 is estimated
to be loss and about RMB-15 million to RMB-12 million.
V. The management’s remarks on any changes in and results of issues related to the ―non opinions‖ by the
auditors for the previous year.
(I) Basic information
Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of emphasized
matters for the Company's financial statements for 2010. Basic information of emphasized matters: Since
March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and dismissed most
of workers. The Company have ceased production of the printing & dyeing plant in Shenzhen or are
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maintaining daily operation by house property lease, And most subsidiaries of the company had stopped
production and it maintained daily operation by house leasing. Shenzhen Victor Onward Textile Industrial
Co., Ltd. had disclosed its improvement measures in Note 13 of Financial Statement, but its sustainable
operation ability is still uncertain. This paragraph does not affect audit opinions that have been given.
(2) Extent of influence of this matter on the Company:
This event greatly impacted the production & operation activities and sustainable development of
company, it made company had the situation of implementing other special treatment which was
stipulated in Shenzhen Stock Exchange Listing Rules , the stock of our company had been implemented
for other special treatment.
(3) The possibility of eliminating this matter and its influence:
Though the transfer of printing and dyeing business has been somewhat delayed, The board of directors of
company is positively studying the future development of company to enhance company's sustainable
operating ability.
(4) Concrete measures
The Company is communicating with joint venture partner and trying to minimize the losses and
settle this joint venture project issue properly.
Chapter V. Important Events
I. Particulars about corporate administration
(1)The Company has unceasingly improved its corporate governance structure, established modern
enterprise system, standardized its operation and earnestly conducted governance work strictly according
to the requirements of the Company Law and the Securities Law and relevant laws and regulations of
CSRC. There was no great difference between the actual status of corporate governance and the
requirements of relevant documents of CSRC.
（2）Progress of Formulation of Internal Control Regulations
According to the Notice of Experimental Work Concerning Internal Control Regulations of Listed Companies in
Shenzhen (Shen Zheng Ju Gong Si Zi (2011) No. 31), the Company attached great importance to this matter, established
internal control leading team and formulated the Scheme for Implementation of Internal Control Regulations of the
Company, which was examined and adopted at the 15th meeting of the fifth board of directors.
In the report period, The Company started to systematically straighten out all its systems. This work is still in progress.
II. Implementation of profit distribution plan
As approved by 2010 Annual Shareholders' General Meeting held on May 23, 2011, the Company neither
distributed profit for the year 2010 nor capitalized any capital common reserve fund.
III. The Company was not involved in any material lawsuits or arbitrations in the report period.
IV. The Company was not involved any material assets acquisition or disposal and asset reorganization
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occurred in the report period.
V. Important related transactions
Pricing of the transactions with related parties has all been based upon the normal market prices.
(1) Related parties’ balance of receivable and payable account
（Unit:RMB）
Name of
Name of Related parties subject June 30, 2011 December 31, 2010
Accounts
307,079 314,198
Shenye Union(HK) Co., Ltd. * receivables
Union Group** Other payable 22,456,162 22,564,462
Shenzhen Union Property Group Co.,
683,414 699,258
Ltd.** Other payable
* Provision has been in full preparation for bad debts
** The fund provided by related parties to the Company is the working capital loan provided by Union
Group and Union Property to Nanhua Company, a subsidiary of the Company.
changes mainly due to the impact of the exchange rate in the report period
(2) Mutual credit guarantees with related parties
N/A
VI.Important contracts and their performance
(I) The Company did not hold in trust or contract for the assets of other companies nor did other
companies hold in trust or contract for the assets of the Company in the report period.
(II) Other material contracts and external guarantees
1. Important loan contracts- Short-term loans
N/A.
2The occupation of funds of the Company by the controlling shareholder and its subsidiaries: No
N/A
3.Important guarantees:
In the report period, the Company did not provided the external guarantee mentioned in ZJF (2003) No. 56 Document
issued by CSRC. There was no significant guarantee that was provided in previous periods but continued to be valid in
the report period. The Company will actively implement the gist of ZJF No. 56 Document strictly according to the
requirements of laws and regulations of the Company Law, the Securities Law, Stock Listing Rules and the Articles of
Association of the Company, further standardize the fund transfer between the Company and the controlling shareholder
and other related parties, lower operation risk and protect the legitimate rights and interests of investors.
(III)The special statement and independent opinions of the independent directors on the external guarantee of the
Company.
According to relevant provisions of the Circular on Certain Issues Relating to Standardization of
Fund Transfer Between Listed Companies and Their Related Parties and Guarantees Provided by Listed
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Companies (ZJF (2003) No. 56 Document), the Circular of Strengthening Disclosure of Information about
Fund Occupation and Regulation-violating Guarantee of Listed Companies (SZJFZ (2004) No. 338
Document) and the Circular of Regulating External Guarantees Provided by Listed Companies (ZJF (2005)
No. 120 Document), we hereby make special statement and express opinions on the status of fund
occupation by related parties and external guarantee of the Company in the current period after learning
the condition of the Company and looking up documents:
As of June 30, 2011：
(1)The company controlling shareholders and other related partiers do not possess company's funds;
(2)The Company did not provide guarantee to its controlling shareholder and unincorporated entity or
individual against regulations nor did the controlling shareholder and other related parties force the Comp
any to provide guarantee to others
VII Commitments events
1. The external investment contract and the related financial expenses signed haven’t been executed or
fully performed
As of June 30, 2011, Group has signed a contract but there are still outstanding major agreement total foreign
investment RMB 30 million .Specific conditions are as follows:
Name Investment Payable Non-payable Investmen Notes
amount amount amount of t Period
of investment
investme
nt
Investment in
machinery and
equipment in
30 million - 30 million
Nanjing East
Asia Textiles
Co., Ltd
2.The Signed or is ready to carry out the contract of large contracts
As of June 30, 2011,The Group still has signed the agreement but did not pay large amounts of letting contracts total
RMB 1.71 million. Specific conditions are as follows:
Name Contracts Payable Non-payab Investme Notes
amount amount of le amount nt Period
investment of
investment
The The Capital increasing o
1,710,000 855,000 855,000
allocation of f the project has not yet
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production completed
equipment as
a whole
works
3．Except for the events described above, as of June 30, 2011,the Group has no other significant
commitment events.
VIII. Other material events
1.We purchased new shares with self RMB 5 million funds in report term, As of June 30, 2011, achieve
investment earning RMB 14,141.
2. Index for important information
The above information were also all published in Securities Times and Hong Kong Commercial Daily and
www.cninfo.com.cn.
Date No. Name of announcement
2011．1．26 2011-0570 Forenotice of Earnings for 2010
2011．4. 14 2011-0571 Forenotice of Earning’s for the first Quarterly 2011
2011．4．14 2011-0572 Earnings prediction 2010
2011．4．29 2011-0573 2010 annual report of the Company and its summary
2011．4．29 2011-0574 The first Quarterly Report 2011
2011．4．29 2011-0575 Announcement of the resolutions of 15th Meeting of the Fifth
Board of Directors
2011．4．29 2011-0576 Announcement of the 12th Meeting of Fifth Supervisor Committee
2011．4．29 2011-0577 Notice of Holding 2010 annual shareholders’ General Meeting
2011．5．24 2011-0578 Announcement of Resolutions of 2010 annual shareholders’
General Meeting
3. The registration form of acceptance of investigation, communication and interview in the report period for future
reference
Reception Reception plane Reception Mode Reception Discussion issue and offered
date Object information
The Company
Director & Secretary Telephone communicated with investors
April 30,2011 Investor
office communication in respect of its production
and operation status
June 8,2011 Director & Secretary Telephone Investor Inquiry about the Company's
17/102
office communication whether the Company has any
plan for reorganization
IX. In the report period, the Company, its board of directors and its directors were not investigated by
CSRC, administratively punished or publicly criticized by CSRC, punished by other administrative
departments or publicly condemned by stock exchange.
Chapter VI. Financial Report
Balance Sh eet
June 30, 2011
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
June 30,2011 December 31, 2010
Assets Parent Company. Parent Company.
Consolidated Consolidated
Monetary fund 51,938,921 22,061,774 51,786,613 23,577,186
Trading financial
108,700 108,700 77,235 77,235
assets
Bill receivable
Account receivable 850,324 586,576
Prepayments 19,173 23,225
Interest receivable 6,646
Other account
297,592 74,309,627 175,951 75,638,428
receivable
Inventories 419,878 419,878 429,613 429,612
Non-current asset due
in 1 year
Other current asset
Total of current assets 53,634,588 96,899,979 53,085,859 99,722,461
Non-current assets：
Disposable financial
638,618 874,427
asset
Expired investment in
possess
Long-term receivable
Long term share
68,778,887 37,738,287 77,199,476 38,613,199
equity investment
Property investment 37,043,068 5,710,153 39,679,004 6,019,483
Fixed assets 16,989,466 13,976,304 17,492,132 14,313,935
Construction in
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progress
Engineering material
Fixed asset disposal
Intangible assets 1,976,361 1,976,361 2,049,023 2,049,023
R & D petrol
Goodwill 5,231,220 5,352,498
Long-germ expenses
to be amortized
Differed income tax
asset
Other non-current
asset
Total of non-current
130,657,620 59,401,105 142,646,560 60,995,640
assets
Total of assets 184,292,208 156,301,084 195,732,419 160,718,101
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：
Ren Changzheng
19/102
Consolidated Balance Sheet（Cont’d）
June 30, 2011
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
June 30, 2011 December 31, 2010
Liabilities and owners’
Parent Company. Parent Company.
equity Consolidated Consolidated
Current Liabilities
Short-term loans
Trade off financial
liabilities
Bill payable
Accounts payable 3,318,295 114,350 3,353,297 115,281
Advance payment 2,745,351 1,968,155 2,718,175 1,939,819
Salaries payable to Staff 560,156 495,129 620,363 579,911
Taxes payable 2,835,965 1,673,167 2,914,867 1,723,217
Dividends payable 1,247,324 1,276,241
Other payable 30,523,556 618,340 29,974,945 651,133
Non-current liabilities
due in 1 year
Other current liabilities 1,402,271 1,360,690 1,228,163 1,185,618
Total current liabilities 42,632,918 6,229,831 42,086,051 6,194,979
Non-Current liabilities:
Long-term loan 1,254,740 1,350,126
Long-term payable 8,705,861 8,907,695
Special payable
Accrued liabilities
Deferred income tax
liabilities 872,138 4,116,486 892,357 4,211,921
Other Non-current
liabilities 858,386 858,386 878,286 878,286
Total Non-current
liabilities 11,691,125 4,974,872 12,028,464 5,090,207
Total liabilities 54,324,043 11,204,703 54,114,515 11,285,186
Shareholders’ Equity
Share capital 169,142,356 169,142,356 169,142,356 169,142,356
Capital surplus 39,656,537 31,606,598 39,872,534 31,606,598
Less: Shares in stock
Surplus reserves 26,704,791 26,309,287 26,704,791 26,309,287
Common risk provision
Reserved profit -106,897,538 -81,099,432 -98,665,017 -80,137,758
Different of foreign 2,702,531 -862,428 5,874,835 2,512,432
20/102
currency translation
Total of owner’s equity
belong to the parent
company 131,308,677 145,096,381 142,929,499 149,432,915
Minor shareholders’ equity -1,340,512 -1,311,595
Total of owners’ equity 129,968,165 145,096,381 141,617,904 149,432,915
Total of liabilities and
owners’ equity 184,292,208 156,301,084 195,732,419 160,718,101
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren
Changzheng
Profit statement
January-June 2011
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
January-June 2011 January-June 2010
Items
Consolidated Parent Company Consolidated Parent Company
I. Total Operating income 5,528,810 725,313 5,280,588 527,589
Including：Operating income 5,528,810 725,313 5,280,588 527,589
II. Total Operating cost 7,013,815 1,651,997 6,677,394 1,034,818
Including：Operating cost 2,331,440 239,549 2,360,424 -292,095
Operating taxes and extras
Sales expenses 377,292
Administrative expenses 4,316,273 2,702,203 4,297,439 2,705,698
Financial expenses 366,102 -1,289,755 -357,761 -1,378,785
Loss of devaluation of assets
Add：Changing income of fair value -48,602 -48,602 -17,686
Investment income -6,734,727 14,141 6,779,702 106,843
Including：Investment income on
affiliated company and joint venture
III. Operating profit -8,268,334 -961,145 5,365,210 -400,386
Add：Non-operating income 8,413
Less：Non-operating expenses 1,517 529 259 199
Including：Disposal loss of non-current
assets
IV. Total profit -8,261,438 -961,674 5,364,951 -400,585
Less：Income tax expenses
V. Net profit -8,261,438 -961,674 5,364,951 -400,585
Net profit attributable to the Parent
-8,232,521 -961,674 5,412,704 -400,585
company
21/102
Minority shareholders’ gain and losses -28,917 -47,753
VI. Earnings per share
（i）Basic earning per share -0.05 0.03
（ii）Diluted earning per share -0.05 0.03
VII. Other comprehensive income -3,388,301 -3,374,860 -2,035,702 -1,456,247
VIII. Total comprehensive income -11,649,739 -4,336,534 3,329,249 -1,856,832
Total comprehensive income
attributable to the owner of the parent -11,649,739 -4,336,534 3,316,852 -1,856,832
company
Total comprehensive income
attributable minority shareholders 12,397
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren
Changzheng
22/102
Cash flow statement
January-June 2011
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd. Unit:RMB
January-June 2011 January-June 2010
Items
Consolidated Parent Consolidated Parent
I.Cash flows arising from operating Company Company
Cash received from sales of goods and
activities 5,295,137 820,983 6,350,921 2,601,112
supply of labor
Net Increase of Disposition transactional
- - 171,272 171,272
financial assets
Rebated taxes received - - 186,855 105,777
Other business related cash receipts 474,345 502,155 1,075,375 560,865
Subtotal of cash flow in from operating
5,769,482 1,323,138 7,784,423 3,439,026
activity
Cash paid for purchase of goods and
452,166 452,166 2,254,184 1,254,184
reception of labor services
Cash paid to and for employees 1,623,382 973,334 1,723,236 980,423
Taxes paid 987,685 464,791 1,116,582 466,421
1,890,665 961,154 3,062,291 1,395,215
Other business related cash payments
Subtotal of cash flow out from operating
4,953,898 2,851,445 8,156,293 4,096,243
activity
Net cash flows arising from operating
815,584 -1,528,307 -371,870 -657,217
activities
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains 1,595
Net cash retrieved from disposal of fixed
10,000 10,000 7,270 7,270
assets, intangible assets, and other
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
10,000 10,000 8,865 7,270
investment activities
Cash paid for construction of fixed assets,
11,031 133,824 56,478
intangible assets and other long-term
Cashassetsas investment
Net increase of loan against pledge
23/102
Net cash received from subsidiaries
and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to
11,031 - 133,824 56,478
investment activities
Net cash flow generated by investment -1,031 10,000 -124,959 -49,208
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from
minor shareholders
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
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to financing
- - - -
activities
Net cash flow generated by financing - - - -
IV.Influence of exchange rate alternation
-662,245 2,895 -285,374 -2,353
on cash and cash equivalents
V.Net increase of cash and cash equivalents 152,308 -1,515,412 -782,203 -708,778
Add: balance of cash and cash equivalents
51,786,613 23,577,186 56,105,626 24,960,502
at the beginning of term
VI. Balance of cash and cash equivalents at
51,938,921 22,061,774 55,323,423 24,251,724
the end of term
24/102
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren
Changzheng
25/102
Consolidated Statement of Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2011 Unit :RMB
January-June 2011
Less: Common Minor
Items Capital Special Surplus Attributable Total of owners’
Share Capital Shares in risk Other shareholders’
reserves reserve reserves profit equity
stock provisions equity
I.Balance at the end of last
169,142,356 39,872,534 26,704,791 -98,665,017 5,874,835 -1,311,595 141,617,904
year
Add: Change of
-
accounting policy
Correcting of previous
-
errors
Other -
II.Balance at the beginning
169,142,356 39,872,534 - - 26,704,791 - -98,665,017 5,874,835 -1,311,595 141,617,904
of current year
III.Changed in the current
- -215,997 - - - - -8,232,521 -3,172,304 -28,917 -11,649,739
year
（I） Net profit -8,232,521 -28,917 -8,261,438
（II）Other misc.income -215,997 -3,172,304 -3,388,301
Total of (I) and (II) - -215,997 - - - - -8,232,521 -3,172,304 -28,917 -11,649,739
(III) Investment or
decreasing of capital by - - - - - - - - - -
owners
1. Capital inputted by
-
owners
2．Amount of shares paid
and accounted as owners’ -
equity
3. Other -
26/102
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus
-
reserves
2.Providing of common
-
risk provisions
3．Allotment to the owners
-
(or shareholders)
4．Other -
(V) 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. Other -
(VI) Special reserves - - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
169,142,356 39,656,537 - - 26,704,791 - -106,897,538 2,702,531 -1,340,512 129,968,165
this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
27/102
Consolidated Statement of Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2011 Unit :RMB
January-June 2010
Less: Common Minor
Items Capital Special Surplus Attributable Total of owners’
Share Capital Shares in risk Other shareholders’
reserves reserve reserves profit equity
stock provisions equity
I.Balance at the end of last
169,142,356 39,297,104 26,704,791 -102,767,941 10,682,638 508,088 143,567,036
year
Add: Change of
-
accounting policy
Correcting of previous
-
errors
Other -
II.Balance at the beginning
169,142,356 39,297,104 - - 26,704,791 - -102,767,941 10,682,638 508,088 143,567,036
of current year
III.Changed in the current
- 575,430 - - - - 4,102,924 -4,807,803 -1,819,683 -1,949,132
year
（I） Net profit 4,102,924 -1,731,989 2,370,935
（II）Other misc.income 575,430 -4,807,803 -87,694 -4,320,067
Total of (I) and (II) - 575,430 - - - - 4,102,924 -4,807,803 -1,819,683 -1,949,132
(III) Investment or
decreasing of capital by - - - - - - - - - -
owners
1. Capital inputted by
-
owners
2．Amount of shares
paid and accounted as -
owners’ equity
3. Other -
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus -
28/102
reserves
2.Providing of common
-
risk provisions
3．Allotment to the owners
-
(or shareholders)
4．Other -
(V) 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. Other -
(VI) Special reserves - - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
169,142,356 39,872,534 - - 26,704,791 - -98,665,017 5,874,835 -1,311,595 141,617,904
this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
29/102
Parent Company Statement on Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2011 Unit :RMB
January-June 2011
Less: Common
Items Capital Special Surplus Attributable Difference Of foreign Total of
Share Capital Shares in risk
reserves reserve reserves profit exchange owners’ equity
stock provisions
I.Balance at the end of
169,142,356 31,606,598 - 26,309,287 - -80,137,758 2,512,432 149,432,915
last year
Add: Change of
-
accounting policy
Correcting of
-
previous errors
Other -
II.Balance at the
beginning of current 169,142,356 31,606,598 - - 26,309,287 - -80,137,758 2,512,432 149,432,915
year
III.Changed in the
- - - - - - -961,674 -3,374,860 -4,336,534
current year
（I） Net profit -961,674 -961,674
（II）Other
-3,374,860 -3,374,860
misc.income
Total of (I) and (II) - - - - - - -961,674 -3,374,860 -4,336,534
(III) Investment or
decreasing of capital by - - - - - - - - -
owners
1. Capital inputted
-
by owners
30/102
2．Amount of
shares paid and
-
accounted as owners’
equity
3. Other -
（IV）Profit allotment - - - - - - - - -
1.Providing of surplus
-
reserves
2.Providing of
-
common risk provisions
3．Allotment to the
owners (or -
shareholders)
4．Other -
(V) 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. Other -
(VI) Special reserves - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
169,142,356 31,606,598 - - 26,309,287 - -81,099,432 -862,428 145,096,381
this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
31/102
Parent Company Statement on Change in Owners’ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
January-June 2011 Unit :RMB
January-June 2010
Less: Common
Items Capital Special Surplus Attrbutable Difference Of foreign Total of
Share Capital Shares in risk
reserves reserve reserves profit exchange owners’ equity
stock provisions
I.Balance at the end of
169,142,356 31,606,598 - 26,309,287 - -76,527,638 7,772,431 158,303,034
last year
Add: Change of
-
accounting policy
Correcting of
-
previous errors
Other -
II.Balance at the
beginning of current 169,142,356 31,606,598 - - 26,309,287 - -76,527,638 7,772,431 158,303,034
year
III.Changed in the
- - - - - - -3,610,120 -5,259,999 -8,870,119
current year
（I） Net profit -3,610,120 -3,610,120
（II）Other
-5,259,999 -5,259,999
misc.income
Total of (I) and (II) - - - - - - -3,610,120 -5,259,999 -8,870,119
(III) Investment or
decreasing of capital by - - - - - - - - -
owners
1. Capital inputted
-
by owners
2．Amount of -
32/102
shares paid and
accounted as owners’
equity
3. Other -
（IV）Profit allotment - - - - - - - - -
1.Providing of surplus
-
reserves
2.Providing of
-
common risk provisions
3．Allotment to the
owners (or -
shareholders)
4．Other -
(V) 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. Other -
(VI) Special reserves - - - - - - - - -
1. Provided this year -
2．Used this term -
IV. Balance at the end of
169,142,356 31,606,598 - - 26,309,287 - -80,137,758 2,512,432 149,432,915
this term
Legal representative：Hu Yongfeng Financial controller：Zhang Jinliang The person in change of the financial Dept：Ren Changzheng
33/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1.Basic Information of the Company
Shenzhen Victor Onward Textile Industrial Co., Ltd. (hereinafter referred to as "the
Company"), grew out of the Xingnan Printing Factory Co., Ltd, founded in 1980, was
the first wholly foreign-owned enterprise in Shenzhen. In April 1984, Xingnan Printing
Factory Co., Ltd was changed into foreign joint venture, and was renamed Shenzhen
Victor Onward Textile Industrial Co., Ltd. . On November 19, 1991, the Company was
reorganized into a joint stock limited company and renamed Shenzhen Victor Onward
Textile Industrial Co., Ltd. pursuant to the approval of Shenzhen Municipal
Government.
The domestically listed RMB ordinary shares ("A shares, Stock code: 000018" ) and
domestically listed foreign investment shares ("B shares ,stock code: 200018") issued
by the Company were listed on Shenzhen Stock Exchange in 1992.
As of June 30, 2011, the total share capital was 169,142,356 million shares, of which
circulating A-share 99,720,453 shares, circulating B-share 69,421,903. of which Union
Holdings Co., Ltd. (hereinafter referred to Union Holdings ) holding limit-sale A-share
43,141,032 shares, accounting for 25.51% of the total equity, is the controlling
shareholder of the company, Union Development Group Co., Ltd. (hereinafter referred
to Union Group)holding circulating A –share 5,821,089 shares, accounting for 3.44% of
the total equity, Union Group holds 31.32% of equity of Hualian Holdings and has the
right to control Union Holdings, thus Union Group is the actual controller of the
Company.
As of June 30, 2011, Victor Onward printing and dyeing (Hong Kong) Co., Ltd.
(hereinafter referred to as "Hong Kong Victor Onward"), Hong Kong Victor Onward
Digital Printing Co., Ltd. (hereinafter referred to as "Victor Onward Digital Printing"),
Shengzhong Industrial Co., Ltd. (hereinafter referred to as "Shengzhong") , Shenzhen
East Asia Victor onward Holding (hereinafter referred to as ―East Asia Company)and
Shenzhen Nanhua Printing and Dyeing as well as its wholly-funded subsidiary Nanhua
Xingye Co., Ltd (hereinafter referred to as "Nanhua Xingye") are all subsidiaries of
the Company. The Company and its subsidiaries are collectively referred to as "the
Group".
The Group is mainly engaged in the production and processing (printing and dyeing) and sales of
various high-grade fabrics of pure cotton, pure linen, polyester-mixed cotton, linen cotton and mixed
fiber and finished garments. Registered address: 26 Kuipeng Road, Kuiyong Town,
Longgang District, Shenzhen Legal Representative: Hu Yongfeng
II. Basis for the preparation of financial statements
The financial statements was prepared on the basis of the Group's continuous operation.
34/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
III. Complying with the statements in Accounting Standards for Business Enterprises
The financial statements of the Group comply with the requirements of Accounting
Standards for Business Enterprises, truly reflect the integrity of the financial situation,
operating results and cash flows, and other relevant information of the company.
IV. Accounting policies, accounting estimation and the method of preparing consolidated
financial statements
(1)Fiscal year
The fiscal year of the Group starts on January 1 and ends on December 31 on the
Gregorian calendar.
(2)Standard currency for book keeping
Except for Shenzhen East Asia Company taking RMB as the standard currency for
bookkeeping, the Company and other subsidiaries of the Group all take HKD as the
standard currency for bookkeeping.
(3) Basis for bookkeeping and costing principle
The Group's basis for bookkeeping is accrual system. Except that the financial assets for
transaction, the financial liabilities for transaction, and financial assets available for sale
are accounted by fair value, generally, account by historical cost.
(4) Cash and cash equivalents
The cash stated in cash flow statement refers to cash in hand and bank deposits usable for
payment at any time. Cash equivalent refers to the investments with holding period of less than
3 months and strong liquidity that are readily convertible to known amount of cash and subject
to insignificant risk of changes in value.
(5)Foreign currency Convert
（1）Foreign currency Transactions
The foreign currency transactions the Group were accounted according to the amount of foreign currency on
the first day of the current month converting to the amount of bookkeeping currency. On the balance sheet
date, foreign currency monetary items would be converted into RMB by using the spot exchange rate on the
balance sheet date, the conversion differences produced shall be directly included in the current loss and gain
except the exchange differences produced by foreign currency special loans borrowed for purchasing or
production of the assets which meet the capitalization conditions. The foreign currency non-monetary items
measured by fair value shall be converted into RMB by the spot exchange rate on the fair value date, the
conversion differences produced shall be directly included in current loss and gain as fair value changes. The
foreign currency non-monetary items measured by historical costs shall be converted by using the spot
exchange rate on the transaction date, and its RMB amount will not be changed.
（2）Foreign currency statement Convert
The financial statements of the company and the subsidiaries making HK dollars as
bookkeeping currency shall be converted into RMB. In the course of conversion, the assets &
35/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
liabilities items shall be converted by using the spot exchange rate on the balance sheet date,
the items of shareholders equity except for the retained profit shall be converted according to
the spot exchange rate, the items of incomes and expenses in the profit statement shall be
converted by the approximate exchange rate of spot exchange rate on the transaction date. The
conversion differences of foreign currency statements produced in the above conversions shall
be individually listed under the item of shareholders equity.
The cash flow in the cash flow statement are converted by the average exchange rate of the
market rates announced in the accounting period. The influences on cash flow from the changes
of exchange rate are separately listed in cash flow statement.
(6) Financial assets and Financial liabilities
(1). Financial assets:
According to investment purposes and economic nature, the financial assets of the Group can
be divided into the financial assets measured by fair value and the changes included in the
current loss and gain, the expired investments held, receivables and financial assets for sale, the
four categories.
1). The financial assets measured by fair value and the changes included in the current loss and gain: mainly
refer to the financial assets for sale in short term, which shall be listed in balance sheet in transactional
financial assets.
2). The expired investments held: refer to the non-derivative financial assets which have fixed expire date and
fixed or determined recovering amount, and the management level has the intention or ability to hold the
assets.
3). Receivables: refer to the non-derivative financial assets which have no quotation in active market but
have fixed or determined recovering amount, including notes receivable, accounts receivable, interest
receivable, dividends receivable and other receivables.
4). Financial assets for sale: include the non-derivative financial assets which are recognized as for sale when
they are initially confirmed, and the financial assets which are not divided into other categories.
Financial assets are conducted initial confirmation by at fair value. The relevant expenses to
obtain the financial assets measured by fair value and the changes included in the current loss
and gain shall be included in the current loss and gain, the relevant transactional expenses of
other financial assets shall be the initial confirmation amount. When the contract right of a
financial asset is ended or the risk and reward of ownership of the financial asset are transferred
to the corresponding party, the confirmation of financial assets shall be ended.
At fair value and changes in their gains and losses included in the current period of financial
assets and financial assets to be sold in accordance with the fair value of follow-up measures;
36/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
receivables and investments held to maturity using the effective interest method to share more
than the cost listed.
The changes of fair values of financial assets measured by fair value and the changes included
in the current loss and gain shall be included in the changing loss and gain of fair value; all the
interest and cash dividends obtained during the period holding the assets shall be confirmed as
investment income; upon the disposal of the assets, the differences between the fair value and
initial bookkeeping amount shall be confirmed as investment loss and gain, and at the same
time, the changing loss and gain of fair value shall be adjusted.
The changes of fair values of financial assets for sale shall be included in equity of shareholders;
during the holding period, the interest accounted by actual interest rate shall be included in the
investment income; the cash dividends of equity tool investment for sale shall be included in
investment income upon the invested unit’s declaration of distributing dividends; upon the
disposal, the differences between the price and book value deducting the fair value originally
included in shareholders equity shall be included in investment loss and gain.
(2)Financial Liabilities
The financial liabilities of our Group shall be classified into the financial liabilities or other ones which are
measured at their fair values and the variation of which is recorded into the profits and losses of the current
period when they are initially recognized.
The financial liabilities, which are measured at their fair values and the variation of which is recorded into
the profits and losses of the current period, including transactional financial liabilities and the financial
liabilities designated which are measured at their fair values and variation of which is recorded into the
profits and losses of the current period when they are initially recognized, shall be made subsequent
measurement on its financial assets according to their fair values, and the profits and losses arising from the
change in the fair value and the dividends and interests expenses related to the financial liability shall be
recorded into the profits and losses of the current period.
The subsequent measurement shall be made on the basis of the post-amortization costs by adopting the actual
interest rate method for other financial liabilities.
(3)The determination method for fair value of financial assets and financial liabilities
If there is active market for a financial instrument, the quoted prices in the active market shall be used to
determine the fair values thereof. In the active market, the quoted prices of our Group for the financial assets
it holds or the financial liabilities it plans to assume shall be the present actual offer for the corresponding fair
values of assets or liabilities, while the quoted prices of our Group for the financial assets it plans to acquire
or the financial liabilities it has assumed shall be the available charge for the corresponding fair values of
assets or liabilities. Where there is no available offer or charge for a financial asset or financial liability, but
there is no any significant change to the economic environment after the latest transaction day, we shall adopt
the market quoted price of the latest transaction to determine the fair value of the said financial asset or
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
financial liability.
Where there is no active market for a financial instrument, we shall adopt value appraisal techniques to
determine its fair value. The value appraisal techniques mainly include the prices adopted by the parties, who
are familiar with the condition, in the latest market transaction upon their own free will, the current fair value
obtained by referring to other financial instruments of the same essential nature, the cash flow capitalization
method and the option pricing model, etc.
(7).Account receivable and provisions for bad debts
The Group will recognize the following cases as the determination standard of loss on bad debts for accounts
receivable: the debt or others can't be repaid in the foreseeable period, e.g. the debtor units have been closed,
revocation, bankruptcy, insolvent, severe insufficient cash flow or the occurrence of natural disasters; the
repayment obligations are delayed and failed to be performed beyond 3-year by the debt entities; there are
other absolute evidences proving that unable to be collected or little possibility.
The Group adopted the method of counter compensation for the possible bad debt losses, which
were drown provision for bad debt by the method of individual recognition at period end and
were included in the current loss and gain. The receivables which were not to be recovered,
after being approved by the Group, would be regarded as bad debt loss and the provision for
bed debt would be written off.
（1）Accounts receivable with material specific amount and specific provisioned bad Debt
preparation.
Judgment criteria or amount standard of Account receivable with special account
material specific amount or amount receivable exceeding RMB 1 million is
criteria viewed as material accounts receivable.
Provision method with material specific Provision Had debt preparation in
amount and provision of specific bad accordance with the difference of
debt preparation present value of future cash flow below
the book value .
(2)The accounts receivable of bad debt provisions made by Group
Determine the basis of Group
Group of account age The Group is classified by the credit risk features
based on the account age of receivables
Group of affiliated party The Group is classified by the credit risk features
based on the relations of account receivables and
transaction objects.
Deposit Group The Group is classified by the credit risk features
based on the account age of receivables .
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
The withdrawing method of bad debt reserves carried by Group.
Group of account age The provisions for bad debts withdrawn by the analysis
method of account age
Group of affiliated party Generally without the provisions for bad debts.
Group of account age Generally without the provisions for bad debts.
1）Provision proportion of bad debt preparation of accounts receivable adopting aging
analysis method：
Age Proportion
Within 1 year 3%
1-2 years 10%
2-3 years 50%
Over 3 years 100%
2）The accounts receivable of bad debt provisions withdrawn by adopting other methods：
Special relationship between the related party and
the Group (such as joint ventures, associates, etc.),
Related party Group there is a little balance between the predicted future
cash flow and the carrying amount.
Including the rent deposit, purchase deposit and reserve
deposit, etc., but without great individual amount and the
Deposit Group bad debt reserves withdrawn by combination are difficult
to reflect the accounts receivable of risk features.
3）Account receivable with non-material specific amount but specific bad debt preparation
Accounts receivable with non-material specific amount
Reason of specific bad debt preparation and being not able to relent its risk character by
provision provisioning bad debt preparation in accordance with
provision
Bad debt preparation will be provisioned in accordance
Provision method of bad debt preparation with the difference of present value of its future cash flow
below its book value.
(8) Inventories
The inventories of the Company include raw materials, work-in-process, finished
products, low-value and easily-worn articles and packing articles and are stated at the
lower of cost and net realizable value.
Perpetual inventory system was implemented for inventory, the inventory would be
priced according to actual cost; upon receiving or sending inventory, weighted average
method would be used. The low value consumable products would be amortized by
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
method of one-time writing off.
The inventory at year end can be priced by depending on which is lower between cost
and realizable net value if the inventory were damaged or full or partly unused or the
sale price lower than cost and other reasons. The provision for devaluation of finished
products and big raw materials shall be drown according to the difference which the
cost of individual inventory item higher than the realizable net value; other raw
materials with large quantity and low unit price shall be drown provision for devaluation
according to categories.
Goods in stock, products in production and other materials directly for the sale, the
amount of the realizable net value shall be determined according to the estimated sale
price deducting the estimated sale expenses and relevant taxes; the amount of realizable
value of material inventory for production shall be determined according to the
estimated sale value of finished products deducting the estimated cost which will
happen before the completion and estimated sale cost and relevant taxes. The inventory
holding for the implementation of sale contract or service contract, the realizable net
value shall be accounted on the basis of contract price; if the quantity of inventory held
by enterprise is bigger than the quantity ordered in the sale contract, the realizable net
value of the excess inventory shall be accounted on the basis of general sale price.
(9).Long-term equity investment
Long-term equity investments mainly include the equity investments which are held by
the Group and the ones that the units being invested can be controlled or jointly
controlled, or the equity investments which have not quotation in active market and the
fair value can not be reliably measured.
Joint control refers to the control that common control on some economic activities
according to contract. The references for the determination of common control are the
business activities which any operating party can not be controlled independently; the
decisions relating to basic operating activities of the joint venture enterprise are to be
agreed by all joint parties.
Significant impact refers to having the right to participate in decision making on
financial and operating policies of the units being invested but can not control or jointly
control the making of these policies. The determining reference of significant impact is
to own 20% (inclusive) or more but less than 50% of the voting shares directly owned
by the Group or owned through subsidiaries, unless there is clear evidence that under
that circumstance the production operating decision can not be participated and no
major influence will formed.
The long-term equity investments obtained through merger of companies under same
control the merger were the owner's equity book value of the shares as a long-term
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
equity investment of initial investment cost. The long-term equity investments obtained
through merger of companies under different control shall make the fair value which
made on the merger (purchase) to pay the control of the assets or liabilities as the
merger cost.
Apart from the long-term equity investments stated above, the long-term equity
investment obtained by cash, the initial investment obtained by cash will be determined
according to the price actually paid, initial investment costs include the direct costs, tax,
and other necessary expenses to obtaining long-term investment; the initial investment
will be determined according to the fair value of the equity securities issued; the
long-term equity investments invested by investors, the initial investment cost shall be
determined according to contract value; the long-term equity investment obtained by
debt restructuring, non-monetary assets or other methods, the initial investment cost
shall be determined according to the relevant accounting standards.
If the subsidiary uses the cost method to account, adjustment shall be conducted
according to equity method when prepare the consolidated financial statements; the
joint venture and joint venture investment using the equity method; for the long-term
equity investments which have no control or joint control or significant influence and no
price in an active market, the method of cost shall be adopted to account; the long-term
equity investments which have no control or joint control or significant influence, there
are quotations in an active market and the fair value can be reliably measured, shall be
accounted as financial assets for sale.
When using the method of cost accounting, the long-term equity investments were
priced by the initial investment costs. Additional investment to recover the cost of
long-term equity investment. When using the equity method accounting, the current
investment gains and losses are the share of net losses and gains to be owned or shared
and achieved in the current year by the unit being invested. When determining the share
to be shared by the unit being invested, on the basis of the fair value of the identifiable
assets, according to the accounting policy and accounting period of the Group,
offsetting the internal transaction loss and gain and the part that the equity proportion
attributable to the joint enterprise and united enterprise, and confirm the net profit of the
unit being invested after profit adjustment.
For the long-term equity investments on joint venture enterprises and joint owned
enterprises held before the first implementation date, if existing the debit difference
relating to the equity investment, the debit difference of equity investment, after
deducting the investment loss and gain according to the original remained period,
should be confirmed as investment gains and losses.
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
The Group shall adopt the cost method to calculate for those invested units that never
have the jointed control or significant impacts due to the investment reduced, and a
long-term equity investment for which there is no quoted price in the active market and
whose fair value cannot be reliably measured; Also, the cost method shall be adopted to
calculate for the long-term equity investment able to be implemented and controlled to
the invested units due to the investment supplemented; Moreover, the equity method
shall be adopted to account for performing the jointed control or significant impacts to
the invested units but no control formed due to the investment supplemented, or without
control to the invested units but able to implement the long-term equity investment of
jointed control or major impacts to the invested units due to disposing of the investment.
The gap between the carrying amount and actual payment gained in disposal of the
long-term equity investment will be recorded into the investment interest of the current
period. Using the equity method for calculating the long-term equity investment which
is recorded into the owner's equity due to other changes except for the net profits or
losses of the invested units, the initial parts recorded into the owner's equity shall be
transferred into the investment returns of the current period when disposal of the
investment.
(10). Investment real estate
The investment real estates of the Group are the rental buildings.
The investment real estates are accounted by the cost, the purchased investment real
estates include the cost of the purchase price, related taxes and fees and other expenses
which can be directly attributable to the assets; the costs of investment real estate self
constructed include the necessary expenses to construct the asset to reach the predicted
use state.
The Group adopts the cost method to conduct follow-up measurement on investment
real estates are accounted devaluations and amortized. The expected service life, net
residual rate and value depreciation rates of investment real estate are as follows:
Type Expected useful Estimated Annual depreciation rate（%）
life（Year） residual value
rate
Real estate in 20-50 years
Hongkong 0% 2%-5%
Real estate in 20-30 years
China 10% 3%-4.5%
If the investment real estate is changed to self use, since the date of change,
investment real estate shall be converted into fixed assets or intangible assets. The
function of self-use real estate is to earn rent or capital appreciation, then since the date
of change, the fixed assets or intangible assets shall be converted into investment real
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
estate. When the conversion happens, the book value before the conversion will be the
book value after the conversion.
When the real estate investment is disposed or will never be used, and economic
interests can not be obtained from the disposal, the confirmation of the investment real
estate shall be terminated. The amount of the income from the sale, transfer, disposal of
the investment in real estate deducting the book value and related taxes and fees shall be
included in the current loss and gain.
(11). Fixed assets
Fixed assets refer to the tangible assets which have the following characteristics at
the same time, namely, held for production of goods, providing services, leasing or
operation and management, and the life span shall not be more than a year, and the unit
value is high.
Classification of fixed assets: houses and buildings, machinery and equipments,
transportation equipments, office equipments and others.
The fixed assets shall be measured according to the actual cost to obtain them, including,
the cost of purchasing the fixed assets including the purchase price, value-added tax,
import tariffs and other related taxes, and other expenses happened to reach the
predicted use state; the cost of building the fixed assets, which are composed of the
expenses to reach the predicted use state of the assets; the fixed assets invested by
investors, the value on the contract or agreement shall be the accounting value, but if the
contract or agreement value is not fair, the fair value shall be accounted; the fixed leased
assets, the lower amount of the fair value of leased assets and the present value of the
lowest lease payment shall be as the accounting value.
Follow-up expenditures on fixed assets, including major repair expenses, expenses on updated
improvement and other, To confirm compliance with the conditions of fixed assets, it shall be
included in the cost fixed assets, the recognition of book value of replaced the part shall be
terminated; If not meeting the conditions of confirming fixed assets, they should be
included in the current period.
In addition to the fixed assets which depreciation and impairment had already fully
accounted and the lands which are separately accounted, the Group accounts
depreciation on all fixed assets. The method of average number of years will be used
when accounting depreciation which will be included in the costs and expenses of the
relevant assets. The predicted net residual rate, classified depreciation years and
depreciation rates are as follows:
Type Expected useful Estimated residual Annual depreciatio
No life（Year） value rate n rate（%）
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Real estate in Hong 20-50 years
1 Kong 0% 2%-5%
Real estate in 20-30 years
2 China 10% 3%-4.5%
Machinery and 5-14 years
3 equipment 10% 6%-18%
Transportation 4-5 years
4 Equipment 10% 18%-22.5%
Office equipment and 5 years
5 other 10% 18%
At the end of each year, the Group shall recheck the predicted service life of fixed
assets, the predicted net residual value and depreciation method, if changes happen, then
it shall be treated as accounting estimate.
When the fixed assets were disposed, or expected to be used or the disposal can not
have economic interests, the confirmation of the fixed assets shall be terminated. The
income from the sale, transfer or damage of the fixed assets deducting the book value
and related taxes shall be included in the current loss and gain.
(12). Construction in progress
The price of the construction project: determine the costs according to the actual
expenditure on the project. Measure the price of the self-operated projects according to
the direct materials, direct wages, direct construction costs; Measure the turnkey
projects according to the price should be paid on the project; measure the project of
equipment installation according to the value, of the equipment, installation costs, and
the expenditures on the trial operation to determine the project costs. The costs of
projects under construction also include the cost of borrowing to be capitalized and
exchange gain and loss.
The time for the construction project converted to the fixed assets: the fixed assets of the company
reached the predicted state, according to the budget of the project, construction cost or the actual cost
of the project, transfer the fixed assets according to the predicted price, account the depreciation
from the next month on. Upon finishing the procedures, make relevant adjustment.
13.Borrowing costs
Borrowing costs include interest on borrowings, amortization of discount or premium,
as well as the supporting costs and exchange difference due to foreign currency
borrowing. The borrowing costs which can be directly attributed to capitalized condition,
and taken place in the capital expenditure, borrowing costs have taken place, in order to
meet the assets available for sale or purchase of the necessary state of construction or
production activities, the capitalization begins; when the construction or purchase of the
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
conditions of production in line with the capital assets reached the sale state, the
capitalization should stop. And the rest borrowing costs should be recognized as
expenses in the current period.
The expenses on interests for the specialized loan happened in current period deducting
the interest income from the bank or the investment income from temporary investment
should be capitalized; the general assets of the borrower in accordance with the
cumulative excess of expenditure over the assets of the specialized part of the borrower
multiplied by the weighted average expenditure occupied by the weighted average
borrowings to determine the amount of capitalization, until the restart of construction or
purchase of assets. The capitalization rate shall be calculated and determined in the light of the
general borrowing and weighted average interest rate.
The assets which meet capitalization conditions, refer to the fixed assets,
investment real estates and other inventories which are constructed for a long time
(usually more than one year) to achieve the intended use or sale of state to.
If meet the capitalization conditions or non-normal breaks occurred in the course of
production and the break time is more than three months, then the capitalization of
borrowing costs shall be suspended; when the acquisition or construction or production
meet the conditions of capitalization and achieve the predicted use or sale state, the
(14). Intangible assets
The intangible assets of the Group include land use rights and computer software.
Including: For the intangible assets purchased, the actual purchase price was the actual
cost; For the intangible assets invested by investors, The actual cost of intangible assets
invested by investors, shall be determined according to the contract or agreement value,
but if the contract or agreement values are not fair, the actual costs shall be determined
according to the fair value.
Since the date of selling land use rights, they are amortized according to the years
sold; patent technology, non-patent technology and other intangible assets are amortized
in accordance with the expected number of years, the benefited years specified in the
contract and the effective length according to law. The amount to be amortized will be
included in the related asset costs and current loss and gain according to the benefited
targets.
The predicted service life of the intangible assets and amortization methods should
be rechecked and adjusted at the end of each year. Recheck the intangible assets with
uncertain service life in each accounting period should be rechecked, if there is evidence
showing that the service life of the intangible asset is limited, then estimate its service
life and amortized it within the predicted service life.
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(15) Impairment in non-financial assets
The Group conducts inspection on long-term equity investments, fixed assets,
construction in progress, intangible assets with limited service life on every balance
sheet date. when exist the following signs showing that the assets may have impairment,
the Group will conduct impairment test. The intangible assets without certain service
life, whether it has impairment signs, impairment tests shall be conducted at the end of
each year. If the recoverable amount of single asset can not be tested, it shall be tested
on the basis of the asset group the asset belong to or the asset combination.
After the impairment test, if the book value of the asset exceeds its recoverable amount,
the deficiency is recognized as the impairment loss, upon the confirmation of the above
assets, they will not be transferred back in the following accounting period. The
recoverable amount of the asset refer to the net amount of the fair value of the asset
deducting disposal cost of assets and the present value of the expected future cash
flows.
The signs of impairment as follows:
(1). Current market value of assets decreased significantly, the decline is significantly
higher than the decline due to time passage or normal use.
(2) The economic, technical or legal environment of the company and the market of the
assets will have significant change in the current period or in the near future, therefore
negative impact on the enterprise.
(3) Market interest rates or other market return rate of investment in the current period
have been increased, thus affecting the discount rate of the predicted cash flow, and
resulting in the significant reduction in the amount of recoverable assets.
(4) There is evidence showing that the assets were actually obsolete or damaged.
(5) The assets have been or will be idle, ended the use or disposed in advance.
(6)There are evidences of internal report showing that the economic performance of the
assets has been lower than or less than what expected, such as the net cash flow created
by assets or the operating profits (or losses) realized are far below (or above)the
expected amount.
(7) Other signs showing the assets may have or have had impairment.
(16)Goodwill
Goodwill refers to the difference of equity investment under the control of the same cost
or merger of enterprises should enjoy more than the cost or a merger of the investment
was the purchase of flats or net assets in order to obtain.
The goodwill related to subsidiaries shall be individually listed in the consolidated
financial statements, the goodwill related to joint companies and associated companies
shall be included in the book value of long-term equity investments.
(17).Long-term amortized expenses
The long-term expenses of the Group to be amortized refer to all the expenses already
paid but should be undertaken in the current period or in the coming period with
amortization period more than 1 year (not including 1 year), the expenses will be
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
amortized averagely in the benefit period. If the long-term prepaid expenses can not
benefit from subsequent accounting period, then all amortization value of the project not
amortized should be transferred to the current loss and gain.
(18). Employee’s salary
During the accounting period, workers’ salary shall be recognized as liability, and
be included in relevant cost and expenses according to the beneficiary target of the
service provided by workers, and shall be included in the relevant cost and expenses.
The compensations for the cancelation of workers’ labor relationship shall be included
in the current loss and gain.
Including wages, bonuses, allowances and subsidies, welfares, social insurance and
housing accumulation fund, union fee and workers’ education fund, and other related
expenses related to obtain services provided by employees.
If decide to relieve the labor relationships with employee before the employment
contracts become mature, or encourage workers to voluntarily accept the compensation
proposal due to redundancy, while the Group has have a formal plan for termination of
labor relationship or have proposed the voluntary redundancy scheme which will be
implemented, and the Group is unable to unilaterally withdraw the plan on the
cancellation of labor relationship or the layoff proposal, the anticipated debts, confirmed
to be caused by the compensation due to relieve of labor relationships with workers,
shall be recorded into the profits and losses of the current period.
(19). Predicted liabilities
When the external security, commercial acceptance bill discount, pending
litigation or arbitration, product quality assurance or business related matters subject to
the following conditions at the same time, the Group will identify it as liabilities: the
obligation is a present obligation of the Group; the enforcement of the obligation is
likely to lead to the outflow of economic benefits; the amount of the obligation can be
measured reliably.
Predicted liabilities shall be conducted initial measurement according to the best estimates of
related existing liabilities, and comprehensively consider risks, uncertainties and the time value of
money and other factors relating to contingent events. Time value of money has the greatest
influence, the best estimates shall be determined by future cash outflow. On the balance sheet,
recheck the book value of predicted liabilities, adjust the book value to reflect the current best
estimates if there are any changes.
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(20). Principle for confirmation of income
The Group's revenues mainly include: incomes from sales of goods and transferring
assets use right. The principle of income confirmation is as follows:
When the Group had transferred the ownership of the risks and rewards of the
commodities to the buyer, the Group does not keep the management right relating to
ownership and does not implement effective control on the commodities sold out, the
income amount can be reliably measured, and the related economic benefit will possibly
flow into the enterprise, and when the related costs may happen or had happened can be
measured reliably, the realization of the commodity sold out should be confirmed.
The economic interests relating to transaction can flow into the company, and the
relevant incomes and costs can be reliably measured, the sales income of transferring
assets use right shall be confirmed.
(21). Government subsidies
Government subsidies, when the Group can meet the conditions attached and can
receive, shall be confirmed. If government subsidies are monetary assets, they shall be
measured according to the amount received; the subsidies allocated according to rated
standards, they shall be measured according to the amount receivable. If government
subsidies are non-monetary assets, they shall be measured according to fair value; if the
fair value can not be reliably measured, they shall be measured according to nominal
amount (1 yuan).
The government subsidies relating to assets shall be recognized as deferred income, and
be averagely distributed within the service life of relevant assets, and be included in
the current loss and gain. If the government subsidies relating to income are used to
compensate the related expenses and losses, they shall be confirmed as deferred income
and be included in the current loss and gain in the period of confirming relevant
expenses. If used to compensate the relevant expenses and losses happened, they shall
be included in the current loss and gain.
(22). Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities shall be confirmed
according to the difference between the tax base of assets and liabilities and their book
value (temporary differences). The loss and tax which can be offset in the future years
shall be recognized as temporary differences to determine the corresponding deferred
income tax assets. On the balance sheet date, deferred income tax assets and deferred
income tax liabilities shall be measured by the predicted application rate.
The Group shall determine the deferred income tax assets produced by the deductible
temporary differences within the amount limit of payable taxes which are likely used to
deduct the temporary differences. The book value of the recognized deferred income tax
assets shall be deducted when the deferred income tax assets produced by the deductible
temporary differences within the amount limit of payable taxes which are likely used to
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
deduct the temporary differences. When enough payable tax can be obtained, the
deducted amount shall be transferred back.
(23). Lease
At the beginning date of lease, the Group divided leasing into financing lease
and operating lease.
Financing lease essentially refers to the lease that transferred all the risks and rewards relating
to asset ownership. As the lessee, on the beginning date of lease, the Group took lower one in the
cash of the fair value and the lowest lease payment as the book-keeping value of the fixed assets
leased in by financing, and the lowest lease payment as the accounting value of the long-term
payment, and the difference between the them will be recorded as financing costs not confirmed.
Operating lease refers to the other lease apart from financing lease. As the lessee,
during the lease period, the Group included the related asset cost and current losses and
gains by the straight-line method during the lease period. The rent of the Group will be
confirmed as income during the lease period by the straight-line method.
(24).Accounting of income tax
The accounting of income tax of the Group shall use the method of debt of balance
sheet. The income tax expenses include current income tax and deferred income tax.
The current income tax and deferred income tax relating to the transactions and events
directly included in shareholders equity shall be included in shareholders equity, except
the book value of deferred income tax adjustment goodwill, the rest current income tax
and deferred income tax or income shall be included in the current loss and gain.
Current income tax cost refers to the amount of payable income tax which shall be paid
to tax department according to the current transactions and events determined according
to tax provisions; deferred income tax refers to difference between deferred income tax
balance sheet debt in accordance with the law shall be recognized deferred income tax
assets and deferred income tax liabilities in the amount originally confirmed.
(25). Corporate consolidation
Corporate consolidation refers to two or more separate companies merge and form a transaction
or event of report subject. The consolidation day or purchase day or the consolidation date of
obtaining the assets or liabilities, shall be confirmed as the date of obtaining the control right of the
party being merged or purchased.
The corporate consolidation under same control: the assets and liabilities obtained by the
consolidation party in the merger shall be measured according to the book value of
merged party on the consolidation day. The difference between the book value of net
assets obtained by the consolidation party and the book value of the consolidation price
paid, the capital public reserve shall be adjusted; if the capital public reserve is not
enough to be deducted, the retained earnings shall be adjusted.
The corporate consolidation under different control: the consolidation cost is the fair
value of equity stocks issued and the assets and debts paid to obtain the control right of
the purchased party on the purchase day. The difference between the consolidation cost
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
and fair value of recognizable net asset, shall be confirmed as goodwill; if the
consolidation cost is smaller than the fair value of recognizable net asset of the
purchased party, the difference shall be included in current loss and gain upon
confirmation.
(26).Methods for compilation of consolidated financial statements
(1). Principles to determine the scope of merger:
The Group will include the subsidiaries which have actual controlling right and the
subjects which have special purpose into the scope of consolidated financial statements.
(2) Accounting methods adopted in consolidated financial statements:
The consolidated financial statements of the Group shall be compiled in accordance
with Enterprise Accounting Standards No. 33 - Consolidated Financial Statements and
the related provisions, the major internal transaction in the scope of consolidation and
transactions shall be offset. The part of shareholders equity of the subsidiary which does
not belong to the parent company, shall be individually listed as equity of minority
shareholders in the consolidated financial statement. If the accounting policy and
accounting period of the subsidiary and the company are not consistent, when compile
consolidated financial statement, the financial statement of the subsidiary shall be
adjusted according to the accounting policy and accounting period of the company.
For the subsidiary obtained by corporate merger under different control, when prepare
consolidated financial statements, the individual financial statement shall be adjusted on the basis of
fair value of the net assets on the purchase day; for the subsidiary obtained by corporate merger
under same control, it will be taken as having been existed at the year beginning, its assets, liabilities,
operating results and cash flow shall be consolidated in the financial statement according to original
book value since the year beginning of the consolidation period.
V. Changes in accounting policies and estimates
1.Changes in accounting policies and estimates
According to the provisions of ―Accounting Standards Interpretation for Enterprises No.
4‖ (Finance [2010] 15) that ―in the consolidated financial statements, if the current
losses burdened by the minority shareholders of subsidiary company exceed the portion
shared in the owner’s equity by the minority shareholders at the beginning of the
subsidiary, the balance shall reduce the equity of minority shareholders. Which will be
traced to adjust except the impracticable if the minority shareholders haven’t disposed
as per above provision before the interpretation is released.‖ in 2010, the Group changes
the excess deficit of minority shareholder of the subsidiary burdened by parent company
into that burdened by the minority shareholder of the subsidiary. But the subsidiary
company – South China Company whose minority shareholders has declared bankrupt
in 2000 and have compulsory liquidation which can’t be taken back, so the minority
shareholders of South China Company no longer bear the losses.
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
2. Changes and impact of the accounting estimation
The Group has no changes in accounting estimation this year.
3..Correction of accounting errors from previous term
There is no correction of the accounting error from previous term in the report period.
VI. Taxation
1. Corporate income tax
The interest rate of corporate income tax of the company and subsidiaries in China
mainland is 25%, according to the State Council on December 26, 2007, of the [2007]
No. 39 Notice on the Implementation of Enterprise Income Tax Preferential Policies for
the Transition, the enterprise income tax rate of the Company and the subsidiaries in
China mainland gradually transited from 15% to 25%, the company implement the
transition rate of 22% in 2010. the interest rate of the income from Hong Kong of the
subsidiaries in Hong Kong is 16.5%.
2.VAT
The sales interest rate of processing income and sale income of printing products
of subsidiaries in China mainland and the company is 17%, export products will be
adopted the method of "free, credit and rebate", the tax rebate rate is 16% (2010). The
purchase of raw materials such as VAT input tax paid by the amount of output tax can
be offset, the tax rate is 17%. Of which: the input tax of VAT for export products can
apply for payment of rebate. VAT taxable amount is the balance of the current output
tax offsetting the current input tax.
The subsidiaries of the Company in Hong Kong do not need to pay VAT.
3. Business tax
The housing rental income of the company and Nanhua Printing & Dyeing Company
shall be applied to business tax, applicable rate 5%. The subsidiaries of the Company in
Hong Kong do not need to pay business tax.
4. City construction tax and education additional expenses
The subsidiaries of the company in Hong Kong do not need to pay City construction tax
and education additional expenses, subsidiaries in mainland China, the applicable City
construction tax rate is 7%, applicable education additional tax rate of 3%.
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2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
5. Property tax
70% of the original value of property of the subsidiaries of the Company in China
mainland shall be the tax basis, applicable tax rate 1.2% ,Rental property to real estate
tax based on rental income, applicable tax rate 12%, subsidiaries in Hong Kong do not
pay property taxes.
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
VII. Corporation Consolidation and Consolidation Financial statement
（1）Subsidiaries
Proportion% Whether
Registration Registered Investment Vote right the
Name Quality Business scope Notes
place capital amount Direct Indirect Proportion% merger of
statement
Purchase of raw materials,
Hong Kong marketing of printed and
2,400,002 2,400,002
Hongkong Trade dyed woven fabrics, 100% 100% Yes 1
Victor Onward
investment and holding （HKD）
Co. （HKD） business
Shengzhong 1,000,000 Sales of Corduroy, 1,000,000
Trade 100% 100% Yes 2
Hongkong （HKD）
dyed cloth and printed cloth
（HKD）
Company
Nanhua 85,494,700 Production and sales of HKD16,874,255
Production printed cloth and dyed cloth 54.82% 14.62% 69.44% Yes 3
Company Shenzhen （HKD） +4,240,100RMB
Trade 10,000 10,000
Xinye Sales of printed cloth and 100% 100% Yes 4
Hongkong （HKD） （HKD）
Company dyed cloth
Textile, Printing and
dyeing industry and
Shenzhen Raw
3,000,000 materials ,Machinery
1,530,000
East Asia Shenzhen 51% 51% Yes 5
Co. Trade (RMB) equipment and other (RMB)
fabrics
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1.The Company invested HKD 2,400,002 in 1984 to establish Hong Kong Victor Onward Company in
Hong Kong.
2. Shengzhong Company was established in November 9 1993, registered capital 1 million Hong Kong
dollars, Hong Kong Victor Onward holding 100% equity.
3. Nanhuan Company was established in July 21, 1988, registered capital 85.49 million Hong Kong dollars,
by December 31, 2010 the shareholding structure as follows:
Year-beginning
Name of investor Proportion% Year-end amount Proportion
amount
Shenye Union (Hongkong)Co.,
Ltd. 26,127,180.32 30.56% 26,127,180.32 30.56%
The Company 46,868,194.54 54.82% 46,868,194.54 54.82%
Hong Kong Victor Onward Company 12,499,325.14 14.62% 12,499,325.14 14.62%
Total 85,494,700.00 100.00% 85,494,700.00 100.00%
4. Xinye Company invested HKD10,000 to establish Industry Company in Hong Kong in December
1996. Nanhua Company Holding’s 100% of the equity.
5. Shenzhen East Asia Company was established in February 28, 2007, registered capital RMB 3 million , the
company invested RMB1.53 million , holding 51% equity, Nanjing East Asia Textile Co., Ltd. invested RMB 1.47
million , holding 49% equity.
(2)The changes of consolidated scope
No changes of consolidated scope happened during the current period.
(3) Foreign currency translation
Except that Shenzhen East Asia Company has RMB as basic accounting currency, the company and
other subsidiaries have Hong Kong dollars as basic accounting currency. The financial statements
are reflected after conversion of RMB and the foreign currency conversion methods were described
in Note IV, 5, of which the spot exchange rate of HK dollar to RMB was 0.8509 at year beginning,
and the spot exchange rate at year end was 0.83162 the approximate exchange rate of the spot
exchange rate uses the current average exchange rate 0.8413.
VIII. Notes to the main items of consolidated financial statements and the Company's financial
statements
The following financial statements disclosed below, except where indicated otherwise, "year
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
beginning" means January 1, 2011, "year end" means June 30, 2011, "this year" means from January
1, 2011 to June 30, "last year" means from January 1, 2010 to June 30, the currency unit RMB.
1.Monetary Capital
Items Year-end balance Year-beginning balance
Original Exchange Original Exchange
currency rate RMB equivalent currency rate RMB equivalent
Stock cash 67,185 91,999
RMB 62,959 1.0000 62,959 81,570 1.0000 81,570
HKD 5,082 0.83162 4,226 12,256 0.8509 10,429
Bank deposit 51,257,501 46,026,397
RMB 25,742,817 1.0000 25,742,817 20,478,001 1.0000 20,478,001
HKD 29,349,572 0.83162 24,407,691 28,692,137 0.8509 24,414,139
USD 171,054 6.4716 1,106,993 171,268 6.6227 1,134,257
Other monetary
614,235 5,668,217
capital
RMB 614,235 1.0000 614,235 5,668,217 1.0000 5,668,217
HKD - -
Total — — 51,938,921 — — 51,786,613
* Funds in other currencies (RMB) mainly kept in the securities of the Group companies for the purchase
of new shares issued by drawing lots of money does not exist at the end of restrictions on the use of monetary
funds.
2.Financial assets for transaction
Item Year-end balance Year-beginning balance
Equity tool investment for 108,700 77,235
transaction.
Total 108,700 77,235
Transactional equity tools are the shares which are to be cashed at any time purchased by the
subsidiary of the company, priced by fair value, its cash has no major restrictions.
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
3.Account receivable
(1)Categories of account receivable
Year-end balance Year-beginning balance
Type Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount Proportion% Amount Proportion% Amount Proportion% Amount Proportion%
Account receivable
with significant
specific amount that
5,490,349 37.67 4,640,025 84.51 5,334,174 36.47 4,747,598 89
were provisioned had
debt preparation
separately
Aging group - - - - - - - -
account receivable
that were not
significant but have
9,083,245 62.33 9,083,245 100 9,293,828 63.53 9,293,828 100
been provisioned bad
debt preparation
separately
Total 14,573,594 100 13,723,270 94.17 14,628,002 100 14,041,426 86.86
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1） Account receivable with significant specific amount that were provisioned had debt preparation
separately
Provision Reason of
Name Book balance Bad debts
proportion% provision
Victor Onward Aging long
Textile (HK)Co., 1,569,885 833,297 53.08
Ltd.
Shenzhen
Jinrongyuan
Enterprise 1,757,457 21,844 1.24 -
Development Co.,
Ltd.
Carnival Index Aging long
1,126,897 1,126,897 100.00
International Ltd
TAI YANG Aging long
ENTERPRISE 1,036,110 1,036,110 100.00
CO.,LTD.
Shenzhong The company ins
Enterprise - 1,621,877 N/A olvent, to be can
Co.,Ltd. celed
Total 5,490,349 4,640,025 89.00 —
*Shengzhong Company, a subsidiary of the Company, was planned to be deregistered. The
Company made full provision for bad debts in respect of the accounts of RMB 1,621,877 receivable
from this company. On consolidation, these accounts receivable were eliminated, but corresponding
provision for bad debts was not eliminated.
2） As of December 31, 2011, account receivable that were not significant but have been provisioned
bad debt preparation separately
Provision Reason of
Name Book balance Bad debts
proportion% provision
VEGA GARMENT CO.,LTD 752,622 752,622 100.00 Aging long
Fly Dragon International 588,335 588,335 100.00 Aging long
Grateful Textiles Co.,Ltd 581,284 581,284 100.00 Aging long
World Fabrica (Int'l) Ltd 477,128 477,128 100.00 Aging long
Shenzhen Fangzhou Textile Aging long
457,871 457,871 100.00
Co., Ltd.
Ezhou Xiangya Garments 360,570 360,570 100.00 Aging long
57/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Provision Reason of
Name Book balance Bad debts
proportion% provision
Co., Ltd.
Tak Shing Buying Office Led 342,108 342,108 100.00 Aging long
Starline Textile CO.Ltd. 340,807 340,807 100.00 Aging long
U.D.C. (H.K.) Co.,Ltd 307,079 307,079 100.00 Aging long
Panther Fabric Ltd. 302,703 302,703 100.00 Aging long
Other (Total 110) 4,572,738 4,572,738 100.00 Aging long
Total 9,083,245 9,083,245 100.00
(2)Of the account receivables at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
(3)The front 5 units’ information of account receivable
Percentage of
Unit name Relation with Amount
Age account
the company receivable(%)
Non-Related
Victor Textile (Hong Kong) Ltd 1,569,885 2-3 years 10.77%
parties
Shenzhen Jinrongyuan Non-Related
1,480,417 1-2 years 10.16%
Development Co., Ltd. parties
Non-Related Over 3
1,126,897 7.73%
CarnivalIndexInternationalLtd parties years
Non-Related Over 3
1,036,110 7.11%
TAIYANGENTERPRISECO.,LTD. parties years
Non-Related Over 3
752,622 5.16%
VEGA GARMENT CO.,LTD parties years
Total 5,965,931 40.94%
(4)About the account receivable from the related parties
Relation with this
Name Amount Proportion(%)
company
The related parties
controlled the same 307,079 2.11%
Shenye Union（HK）Co., Ltd. Actual controller
(5)Accounts receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
currency Original Exchange RMB Original Exchange RMB
Name currency rate equivalent currency rate equivalent
HKD 11,038,875 0.83162 9,180,149 11,038,875 0.8509 9,392,979
USD 405,753 6.4716 2,625,871 405,753 6.6227 2,687,180
Total 11,806,020 12,080,159
4. Prepayments
（1） Aging
Year-end balance Year-beginning balance
Items amount Proportion amount Proportion
（%） （%）
Within 1 year 19,173 100.00 22,832 98.31
1－2 years 393 1.69
Total 19,173 100.00 23,225 100.00
（2） Prepayments main unit
Relation with
Company Name Amount Age Causes
the Company
Non-Related Within 1 Payments for goods
11,540
Insurance premium parties year not paid
Non-Related Within 1 Payments for goods
4,410
Vehicle license fees parties year not paid
Business Register Non-Related Payments for goods
1,794
fees parties 1-2 years not paid
Non-Related Within 1 Payments for goods
1,429
Other parties years not paid
Total 19,173
(3) Of the Prepayment at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
(4)Prepayments include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
Currency of Original Exchange RMB Original Exchange RMB
Name currency rate equivalent currency rate equivalent
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Foreign Year-end balance Year-beginning balance
Currency of Original Exchange RMB Original Exchange RMB
Name currency rate equivalent currency rate equivalent
HKD 23,055 0.83162 19,173 27,295 0.8509 23,225
Total 19,173 23,225
5.Interest receivable
Items Year-beginning Increase in Decrease in Exchange Year-end
balance the current the current rate balance
period period Differences
Interest on Fixed 6,646 6,646 0
deposits
Total 6,646 6,646 0
60/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
6.Other receivables
（1） Categories of other receivable
Year-end balance Year-beginning balance
Type Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount Proportion% Amount Proportion% Amount Proportion% Amount Proportion%
Other receivable with
significant specific amount
3,299,737 71.56 3,299,737 100.00 3,376,237 73.57 3,376,237 100.00
that were provisioned bed
debt preparation separately
Other accounts that were
provisioned bad debt
- - - - - - - -
preparation in accordance
with aging Group
Deposit Group 297,592 6.45 - - 175,951 3.83 - -
Other receivable that were
not significant but have
1,013,499 21.98 1,013,499 100.00 1,036,996 22.60 1,036,996 100.00
been provisioned had debt
preparation separately
Total 4,610,828 100.00 4,313,236 100.00 4,589,184 100.00 4,413,233 96.17
61/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1） Other receivable with significant specific amount that were provisioned had debt preparation separately
Provision Reason of
Name Book balance Bad debts
proportion% provision
Nanjing East Asia 1,291,370 1,291,370 100.00 Aging long
CCB.Guangdong Aging long
1,055,492 1,055,492 100.00
Shunde Branch
Changzhou Dongfeng Aging long
Textile Printing & dyeing 952,875 952,875 100.00
Equipment Co., Ltd.
Total 3,299,737 3,299,737 -
2） Group-Deposit Group
Provision Reason of
Name Book balance Bad debts
proportion% provision
RECOVERABLECLIENT 27,685 - -
Huachuang Room 1802 24,090 - -
CRE18050（DD18JUN96） 7,784 - - Deposit, No
Customs bond of provision
Shenzhen & Hongkong 7,808 - - for bad
car debts
Rent deposit 162,220 - -
Other 68,005 - -
Total 297,592 -
3） As of December 31, 2011, account receivable that were not significant but have been provisioned
bad debt preparation separately
Book Provision Reason of
Name Bad debts
balance proportion% provision
HongKong Victor Onward 711,859 711,859 100.00 Aging long
Shanghai Huayinke Industry 100.00 Aging long
175,916 175,916
Co., Ltd.
Shenzhen Environmental 100.00 Aging long
Management System 34,206 34,206
Certification Center
Shenzhen Huaxinfeng Industrial 100.00
32,353 32,353
Co., Ltd. Aging long
Shenzhen Design Institute of 100.00 Aging long
29,319 29,319
Ministry of Machinery Industry
62/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Book Provision Reason of
Name Bad debts
balance proportion% provision
Shanghai Branch
Other (Total 14) 29,846 29,846 100.00 Aging long
Total 1,013,499 1,013,499 - -
(2)Of the Other account receivable at the end of period, there were none owed by corporate shareholders
of the Company holding over 5% (including 5%) of its total shares with voting rights.
(3)The front 5 units’ information of Other account receivable
Relation with Account Proportion(%)
Name Amount Content
the company Age
Nanjing East Asia Non-Related Over 3 y
1,291,370 28.01% Goods
C parties ears
CCB.Guangdong Non-Related Over 3
1,055,492 22.89% Goods
Shunde Branch parties years
Changzhou
Dongfeng
Textile Printing Non-Related Over 3
952,875 20.67% Goods
& dyeing parties years
Equipment Co.,
Ltd.
HongKong Victor Non-Related Over 3
711,859 15.44% Goods
Onward parties years
Shanghai
Huayinke Non-Related Over 3
175,915 3.82% Goods
Industry Co., parties years
Ltd.
Total 4,187,511 90.82%
(4)Other receivable include the following foreign currency balance
Foreign Year-end balance Year-beginning balance
Currency of Original Exchange RMB Original Exchange RMB
Name currency rate equivalent currency rate equivalent
HKD 1,032,870 0.83162 858,955 1,219,263 0.8509 1,037,471
Total 858,955 1,037,471
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
7.Inventory
（1）Inventory types
Year-end balance Year-beginning balance
Book Provision for Book value Book Provision Book
Items
balance bad debts balance for bad value
debts
Raw
2,083,119 1,663,241 419,878 2,131,413 1,701,800 429,613
materials
Stock
630,016 630,016 - 644,622 644,622 -
goods
Total 2,713,135 2,293,257 419,878 2,776,035 2,346,422 429,613
The Company has been out of production, the closing inventories shall be written down after deducting the full
amount provisions except the preservation materials.
(2)Provision for impairment of inventories
Decrease in the current
Increase in Exchange
Year-beginning period Year-end
Items the current rate
balance Transferred balance
period Reselling changes
back
Raw
-38,559 1,663,241
materials 1,701,800
Stock
-14,606 630,016
goods 644,622
Total 2,346,422 -53,165 2,293,257
8.Financial assets for sale
（1） Financial assets for sale
Items Year-beginning balance (Fair Year-end balance (Fair value )
value )
Equity tools for sale. 638,618 874,427
Total 638,618 874,427
The equity tools for sale are the shares held by the subsidiary of the company Hong Kong Victor Onward , because
they are not to be cashed in a short term, so they are classified in this item, the change of fair value in the current
period RMB215,997 has been included in the public capital reserve.
9.Long-term equity investment
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深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
（1）Long-term equity investment
Items Year-end balance Year-beginning balance
The cost of long-term equity
investment accounting -
The equity method long-term
68,778,887 77,199,476
equity investment
Total of long-term equity
investment 68,778,887 77,199,476
Less ： Long-term equity
investments for impairment
Net value long-term equity
investment 68,778,887 77,199,476
65/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(2)The equity method long-term equity investment
Cash
Holdings Vote
Investment Exchange rate Year-end dividend
Name Proportion proportion change
Cost Amount of change balance at this
（%） （%）
year-beginning year
1.Zhejiang Union Hangzhou Bay
25% 25% 58,588,403 77,199,476 -6,748,868 -1,671,721 68,778,887 -
Chuangye Co., Ltd.
2. Shenzhen Lianchang Printing & -
37.5% 37.5% 1,403,456 -
dyeing Co., Ltd.
Total 59,991,859 77,199,476 -6,748,868 -1,671,721 68,778,887 -
Zhejiang Union Hangzhou bay chuangye Co., Ltd. (hereinafter named―Hangzhoubay‖) current change including current profit confirmed by equity method is
RMB6,748,868. Shenzhen Lianchang Printing & Dyeing Co. Ltd. was in loss for many years, its net assets were negative, the operation of the company has stopped, the
balance of long-term equity investment has been adjusted to zero.
66/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(3)The investment in the Enterprise
Total
Holdings Vote Total assets Total Net asset
Business Net profit
Name Proportion proportion at the end Liabilities at total at the
income tat at this year
（%） （%） year the end year end year
this year
Zhejiang
Union
Hangzhou
25% 25% 1,327,411,709 1,022,981,400 307,430,308 16,026,997 -26,995,474
Bay
Chuangye
Co., Ltd.
10.Property investment
The investment in real estate companies use the cost model measures
Decrease Exchange
Increase in in Year-end
rate changed
Amount of current period current balance
Items year-beginning period
Original Value 101,717,557 -2,304,753 99,412,804
House, Building 101,717,557 -2,304,753 99,412,804
Accumulated
62,038,553 1,736,874 -1,405,691 62,369,736
amortisation
House, Building 62,038,553 1,736,874 -1,405,691 62,369,736
Book Net value 39,679,004 -1,736,874 -899,062 37,043,068
House, Building 39,679,004 -1,736,874 -899,062 37,043,068
Impairment Provision - -
House, Building - -
Book value 39,679,004 -1,736,874 - -899,062 37,043,068
House, Building 39,679,004 -1,736,874 - -899,062 37,043,068
11.Fixed assets
(1)Breakdown of Fixed assets
Decrease Exchange
Increase in Year-end
Amount of in current
current period rate changed balance
Items year-beginning period
Original Value. 169,118,038 11031 104227 -3,831,938 165,192,904
67/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Decrease Exchange
Increase in Year-end
Amount of in current
current period rate changed balance
Items year-beginning period
House and building 50,351,436 -1,140,881 49,210,555
Machine and
104,233,077 -2,361,751 101,871,326
Equipment
Transportation
4,915,122 104227 -111,369 4,699,526
Equipment
Office equipment
9,618,403 11031 -217,937 9,411,497
and other
Accumulated
116,821,045 106930 93804 -2,646,973 114,187,198
amortization
House and building 27,537,760 -623,961 26,913,799
Machine and
78,727,442 -1,783,835 76,943,607
Equipment
Transportation
4,243,598 93804 -96,153 4,053,641
Equipment
Office equipment
6,312,245 106930 -143,025 6,276,150
and other
Impairment
34,804,861 -788,621 34,016,240
Provision
House and building 16,232,914 -367,811 15,865,103
Machine and
15,697,431 -355,678 15,341,753
Equipment
Transportation
50,369 -1,141 49,228
Equipment
Office equipment
2,824,147 -63,991 2,760,156
and other
Book value 17,492,132 -95899 10423 -396344 16,989,466
House and building 6,580,762 -149109 6,431,653
Machine and
9,808,204 -222238 9,585,966
Equipment
Transportation
621,155 10423 -14075 596,657
Equipment
Office equipment
482,011 -95899 -10921 375,191
and other
(2)Details of temporary idle fixed assets are as follows：
Book
Items Original Accumulated Impairment
value depreciation provision Book Net value
68/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
House and building 45,691,372 25,823,161 15,865,103 4,003,108
Machine and
101,553,401 76,790,369 14,607,692 10,155,340
Equipment
Transportation
3,056,322 2,750,657 - 305,665
Equipment
Office equipment and
7,738,263 4,964,765 2,568,916 204,582
other
Total 158,039,358 110,328,952 33,041,711 14,668,695
The original value of the temporarily idle machinery and equipments to be invested in Nanjing
Textile Printing & dyeing Co., Ltd. was RMB 78,181,395 , Accumulated amortization was
RMB56,834,112, Impairment Provision was 13,529,143 , Book value was RMB 7,818,140.
12.Intangible assets
Decrease in Exchange
Increase in Year-end
Amount of current
current period rate changed balance
Items year-beginning period
Original Value 13,669,525 -309,729 13,359,796
Land use right 12,968,839 -293,853 12,674,986
software 700,686 -15,876 684,810
Accumulated
11,382,077 26,234 -257,899 11,150,412
amortisation
Land use right 10,919,815 26,234 -247,425 10,698,624
software 462,262 -10,474 451,788
Book Net value 2,287,448 -26,234 -51,830 2,209,384
Land use right 2,049,023 -26,234 -46,428 1,976,361
software 238,425 -5,402 233,023
Impairment
238,425 -5,402 233,023
Provision
Land use right
software 238,425 -5,402 233,023
Book value 2,049,023 -26,234 -46,428 1,976,361
Land use right 2,049,023 -26,234 -46,428 1,976,361
software -
The real estate title certificate issued by Shenzhen Land Resource and House Property
Administration for part of the land for the factory building and office building of the Company
located at 26 Kuipeng Road, Baishigang, Kuiyong Town, Longgang District, Shenzhen was obtained
on January 18, 2010. The valid term is from March 5, 1999 to March 4, 2049.
69/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Increase in accumulated amortization, Amortization RMB53,686 in this year.
13. Goodwill
Increase Decrease Exchange
Year-beginning in in
rate Year-end Impairment
Items
balance current current balance in year end
changed
period period
For the
goodwill
formed from
holding 5,352,498 - - -121,278 5,231,220
shares of
Nanhua
Company,
Total 5,352,498 - - -121,278 5,231,220
Nanhua Printing and Dyeing Company has also been discontinued, whose daily operations
maintained rely on the rental housing. Although South China Company has a negative net asset, the
company has a vast piece of land and property in Shenzhen city. And the historical cost of assets
recorded into account basis will changed, which will be appreciated in value greatly once assessed,
we believe that there is no value-reduced of the investment, so the goodwill is not impaired.
14.Impairment of assets schedule
Decrea
se in
Amount of the
Accrual Exchange rate Amount of
Items year-beginn current
amount change year-end
ing period
Switch
back
Provision for bad
18,454,659 -418,153 18,036,506
debts
Stock
Impairment 2,346,422 -53,165 2,293,257
Provision
Impairment of
34,804,861 -788,621 34,016,240
fixed assets
Inta
238,425 -5,402 233,023
Impairment of
70/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Intangible assets
Total 55,844,367 -1,265,341 54,579,026
15.Account payable
(1)Account payable
Items Year-end balance Year-beginning balance
Total 3,318,295 3,353,297
Including：over 1 year 3,318,295 332,468
Accounts payable with age over one year included a number of accounts, without single
significant amount of accounts payable.
(2)Of the account payable at the end of period, there were none owed by corporate shareholders
of the Company holding over 5% (including 5%) of its total shares with voting rights.
(3)Accounts payable include the following foreign currency balances.
Name of Year-end balance Year-beginning balance
Foreign Original Exchange RMB Original Exchange RMB
Currency currency rate equivalent currency rate equivalent
HKD 324,942 0.83162 270,228 324,942 0.8509 276,493
Total 270,228 276,493
16.Advanced account
(1)Advanced account
Items Year-end balance Year-beginning balance
Total 2,745,351 2,718,175
Including：over 1 year 2,745,351 2,718,175
Advanced account more than 1 year was mainly the sale fund for the wasted materials from the
relocation of the company, and due to delays in the overall relocation plan, the money paid in
advance was temporarily suspended.
（2）Of the prepayments at the end of period, there were none owed by corporate shareholders
of the Company holding over 5% (including 5%) of its total shares with voting rights.
（3）Advanced Accounts include the following foreign currency balances.
71/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Name of Year-end balance Year-beginning balance
Foreig
n Original Exchange RMB Original Exchange RMB
Currency currency rate equivalent currency rate equivalent
HKD 2,339,945 0.83162 1,945,945 2,339,945 0.8509 1,991,059
USD 101,903 6.4716 659,475 101,903 6.6227 674,873
Total 2,605,420 2,665,932
17.Wage payables to employees
Year-begin Decrease in Exchange
Increase in Year-end
Items ning current rate
current period balance
balance period changed
Wage (Including reward ,
501,231 990,640 1,025,830 466,041
allowance and subsidy)
Welfares For employees - -
Social insurance premiums - 160,206 160,206 -
Including :
- 27,760 27,760 -
Medical insurance premiums
Basic old-age insurance
- 125,742 125,742 -
premiums
Unemployment insurance
- 2,829 2,829 -
expenses
Industrial injury insurance
- 1,230 1,230 -
premiums
Childbirth insurance
- 2,645 2,645 -
premiums
Housing accumulation fund - -
Trade union outlays and
119,132 9,590 34,607 94,115
employee education outlays
Other -
Total 620,363 1,160,436 1,220,643 - 560,156
18.Fees and taxes payables
Items Year-end balance Year-beginning balance
VAT 802,463 821,067
Business tax 200,198 237,054
Enterprise income tax 1,307,243 1,337,550
Tax on city maintenance and
14,014
construction 1,224
72/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Year-end balance Year-beginning balance
Property tax 277,637 283,975
Individual income tax 98
Stamp tax 228,404 233,699
Educational surcharge 6,006 200
Total 2,835,965 2,914,867
19.Dividend payable
Items Year-end Year-beginning
balance balance Reasons of arrears
State Development &
249,465 255,248
Investment Co., Ltd*2
CITIC Group *2 249,465 255,248
Shenzhen Nanyou (Group)
124,732 127,624
Company*2
Capital tense*1
Shenye Union（Hongkong）Co.,
124,732 127,624
Ltd.
Changzhou Dongfeng Printing
498,930 510,497
and dyeing plant *2
Total 1,247,324 1,276,241
*1 The above payable dividends were the payable dividends of Nanhua Company, a subsidiary of the company, the
change in balance mainly due to the change of exchange rate. Because Nanhuan Company’s capital was more
tension and the shareholders did not ask for the fund, the payable dividends have not been paid. The payable
dividends reduced at the end of the period mainly due to the change of exchange rate.
*2 The above four companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
20.Other accounts payable
(1)Other accounts payable
Items Year-end balance Year-beginning balance
Total 30,523,556 29,974,945
Including：Over 1 year 29,834,627 29,626,008
Other payables which are longer than one year mainly were the loans borrowed by Nanhuan Company the
subsidiary of the company from related companies, which have not been paid because of capital tension.
(2) Of the Other payables at the end of period, there were none owed by corporate shareholders of the
Company holding over 5% (including 5%) of its total shares with voting rights.
(3)Other payable by large in year end year
73/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount Age Nature or content
Gao Minping 150,506 2-3 years Deposit
Room 760 Cargo Floor（#HKS
249,486 1-2 years Deposit
PINNERS-760）
State Development &
2,931,921 Over 3 years Loans
Investment Co., Ltd
Union Group 22,456,162 Over 3 years Loans
Jinrongyuan Company-Deposit 996,853 Over 3 years Deposit
Total 26,784,928
(4)Other payable Accounts include the following foreign currency balances.
Name of Year-end balance Year-beginning balance
Foreign Original Exchange RMB Original Exchange RMB
currency currency rate equivalent currency rate equivalent
HKD 923,050 0.83162 767,627 923,050 0.8509 785,423
Total 767,627 785,423
21.Other current liabilities
Items Year-end balance Year-beginning balance
Sewage charges 62,600 62,598
Audit fees 1,250,906 1,076,785
Land use fees 88,000 87,997
Securities management Fees 765 783
Total 1,402,271 1,228,163
22.Long-term borrowing
(1)Classification of long-term borrowing
Type Year-end balance Year-beginning balance
Impawn borrowing 1,254,740 1,350,126
Total 1,254,740 1,350,126
The borrowing was the installment payment for the housing in Hong Kong bought by the subsidiary of
the company Xingye Company, the mortgage article was the house purchased. The installment
payment was HKD 2,366,000 , which paid in 240 month, As of December 31, 2011 ,Principal
amount of HKD 1,508,790 (RMB1,254,740)
23.Long-term payable
74/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Unit Time Year-beginning Interest Interest Year-end Borrowing
balance rate（%） balance condition
Assess the Non-time 8,907,695 - - -
value of 8,705,861
assets
Total 8,907,695 - - 8,705,861 -
* The company was authorized by People's Bank of China when it was reorganized into joint-stock company,
the revaluation of the assets of the revaluation gain attributable to the restructuring of the Company before the
shareholder. The asset was re-assessed on January 31, 1992, which generated about 14,754,000 HKD revaluation
gain, recorded on account as long-term payable subject, part of them have been used to offset the bad debts prior to
listing (about 4,285,000 HKD ). The shareholders before the reorganization have agreed not to require the
company to pay such amounts with cash, to offset each other when purchase stocks of the company in the future,
the decrease of long-term payables mainly due to the change of exchange rate.
24.Deferred income tax liabilities
（1）The confirmed Deferred income tax liabilities
Items Year-end balance Year-beginning balance
The income tax of taxable temporary
difference. 872,138 892,357
Total 872,138 892,357
（2）The temporary difference
Item of the taxable temporary Year-end balance Year-beginning balance
Assets assessment appreciation 5,285,682 5,408,224
Total 5,285,682 5,408,224
Tax rate 16.50% 16.5%
Confirmation of the Deferred
income tax liabilities. 872,138 892,357
* When the company was reorganized into joint-stock company, the company was approved by the People's
Bank of China, the added value of the assets of the subsidiary of the company Hong Kong Victor Onward Company,
according to Hong Kong Standards, can not be adjusted, and was not to be deducted when accounting the income
tax, resulting in the differences in net value of fixed assets and accounting basis.
25.Other non-current liabilities
Items Year-end balance Year-beginning balance
ERP Information construction 234,105 239,532
Technology subsidies 624,281 638,754
75/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Year-end balance Year-beginning balance
Total 858,386 878,286
（1）The above funds were the special subsidies received from Shenzhen Department of Finance
in 2004 for the digital jet printing projects and for the construction of enterprise information. The
deal must be accepted by the Financial Bureau before accounting, so it was suspended. The
reduction was due to the change in exchange rates.
26.Share capital
Name/Type Year-beginning balance Change Year-end balance
Amount Proportion% Amount Amount Proportion%
Restricted shares
Common shares in
99,720,453 58.96 - 99,720,453 58.96
RMB
Foreign shares in
69,421,903 41.04 - 69,421,903 41.04
domestic market
Total restricted
169,142,356 100.00 - 169,142,356 100.00
shares
Total of capital
169,142,356 100.00 - 169,142,356 100.00
shares
27.Capital common reserve
Items Year-beginning Increase in Decrease in Year-end
balance current period current period balance
Share capital Premium 29,718,829 - - 29,718,829
Other Capital common 10,153,705 215,997 9,937,708
reserve
Total 39,872,534 215,997 39,656,537
Current increment in capital surplus came from current fair value gain of finance assets available for sale.
28.Surplus common reserve
Items Year-beginning Increase in Decrease in Year-end
balance current period current period balance
Statutory Surplus
26,704,791 26,704,791
common reserve
Total 26,704,791 26,704,791
76/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
29.Retained profit
Items Amount Proportion（%）
Balance at the end of last period -98,665,017
Add： The beginning of the undistributed
profits adjustments
Including：Change of accounting policy
Correcting previous errors
Change of consolidated scope
Other adjustments
Balance at the beginning of current year -98,665,017
Add：The net profit due to the shareholders of -8,232,521
the parent company in the year
Less ： Withdrawing statutory surplus public
reserve
Withdrawing discretionary surplus reserve
Withdrawing Ordinary risk allowance
Common stocks dividends payable
Stock dividend transferred in stock capital
Balance at the end of current year -106,897,538
30.Minority shareholders equity
Name of Subsidiary Proportion% Year-beginning
Year-end amount
balance
Nanhua Company* 30.56
Shenzhen East Asia
-1,340,512 -1,311,595
Company 49.00
Total -1,340,512 -1,311,595
Nanhua Company and Shenzhen East Asia, two subsidiaries of the Company, suffered excess loss.
According to No. 4 Interpretation of Accounting Standards for Business Enterprises, where the loss
for current period shared by minority shareholders of a subsidiary exceeds the owner's equity
enjoyed by them in this subsidiary at the beginning of period in consolidated financial statements,
the difference shall write off minority interests. Whether the Articles of Association of the Company
or an agreement defines the obligation of minority shareholders for excess loss or not, excess loss
shall write off minority interests, i.e., minority interests will be negative when the subsidiary
suffering excess loss is included for statement consolidation. However, the minority shareholders of
77/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Nanhua Company were declared bankrupt and suffered compulsory liquidation in 2000. No
retroaction can be conducted. Therefore, the minority shareholders of Nanhua Company shall no
longer bear losses. changes mainly due to the impact of the exchange rate in the report period
31. Business income, Business cost
Items Amount of current Amount of Previous
period period
Key business income 1,037,461
Other business income 5,528,810 4,243,127
Total 5,528,810 5,280,588
Key business cost 304,606
Other business cost 2,331,440 2,055,818
Total 2,331,440 2,360,424
(1)Key business—Product
Amount of current period Amount of Previous period
Name Business Business
Business cost Business cost
income income
Cloth bleaching, printing and
dyeing 1,037,461 304,606
Rent 5,528,810 2,331,440 4,243,127 2,055,818
Total 5,528,810 2,331,440 5,280,588 2,360,424
The total sale incomes of the top five customers was RMB4,562,448 , representing 82.52% of
the main business income in this year. The Company’s and Its subsidiary Nanhua Company is still
operating normally
（1） Revenue from main business status of top 5 clients
Name of customer Business Revenues Proportion to revenue from main
business（%）
Shenzhen Finance sources
3,525,000 63.76%
Development Co., Ltd.
SCS EXPRESS 504,756 9.13%
Shenzhen Nanshan Saint Laurent
252,000 4.56%
Wedding Photography
CVA holdings 175,655 3.18%
BOAST 105,037 1.90%
Total 4,562,448 82.52%
78/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
32.Management expenses
The management cost in this year was RMB 4,316,273, slightly increased compare with same period,
last year.
33..Financial expenses
Items Amount of current Amount of Previous
period period
Interest expenses 529,892
Less：Interest income 246,775 86,313
Add：Exchange rate loss 76,737 -275,285
Add：Other expenses 6,248 3,836
Total 366,102 -357,761
34.Changes income in fair value /loss
Items Amount of Amount of Previous
current period period
Trading financial assets- -48,602 -17,686
Total -48,602 -17,686
35.Investment income
(1）Investment income generated by the sources listed
Items Amount of current Amount of
period Previous period
Income from transfer of equity investment -6,748,868 6,606,835
Disposal trading financial assets to achieve return
14,141
investment 172,867
Total -6,734,727 6,779,702
There were no major restrictions in the investment income at the period end.
(2)Equity method
Items Amount of Amount reason
current of
period Previous
period
Total -6,734,727 6,779,702
Including: Affiliated company Hangzhou Bay has loss in the report period
-6,748,868 6,606,835
Hangzhou
79/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of Amount reason
current of
period Previous
period
Bay
Company
36.Non-operating income
(1) Non-operating income
Items In the report The same period of Amount of non-current gains &
period last year loss in this year
Other 8,413 8,413
Total 8,413 8,413
* Other deposit regaining from the subsidiary company of HongKong Victor Onward
37.Non-operating expense
Items In the The same
Amount of non-current gains &
report period of
period last year loss in this year
Loss disposition Non-current 529
8,413
assets
529 529
Including: loss on disposal of
fixed assets
Other 988 259 988
Total 1,517 259 1,517
* Other donation is from the subsidiary company of Shenzhen East Asia South China Company.
38.Calculation process for Basic gains per share and Diluted gains per shares
Items The same
In the report
No period of last
period
year
Net profit attributable
to shareholder of the 1 -8,232,521 5,412,704
Parent Company
non-recurring
gain/loss
attributable to the 2 21,037 -259
shareholders of the
Parent Company
80/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items The same
In the report
No period of last
period
year
Attributable to the
shareholders of the
Parent Company, Net
3=1-2 -8,253,558 5,412,963
profit after deducting
of non-recurring
gain/loss
Total of shares at
169,142,356 169,142,356
year-beginning 4
Public reserve was
transferred as capital
and share increase 5
from dividend
distribution（Ⅰ）
The issuance of new
shares or increase the
number of shares and 6
other debt-equity
swap（Ⅱ）
Increase in the shares
(Ⅱ)from the next
month to the end 7
month of the
reporting period
Shares decreased in
the reporting period 8
due to repurchase.
Decrease in the
shares from the next
month to the end 9
month of the
reporting period
Share number
decrease for shares 10
deduction
Number of months of 11
81/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items The same
In the report
No period of last
period
year
the reporting period
The weighted
average number of 12=4+5+6×7÷11
169,142,356 169,142,356
ordinary shares -8×9÷11-10
issued out.
Basic gains per share -0.05
0.03
（Ⅰ） 13=1÷12
Diluted gains per -0.05
0.03
share（Ⅱ） 14=3÷12
The interest of
ordinary shares
15
which was confirmed
as costs
Conversion costs 16
Income tax rate 17 22% 22%
Warrants, shares with
18
equity right increase
Diluted gains per -0.05
19=[1+(15-16)×(1-17)]÷(12+18) 0.03
share（Ⅰ）
Diluted gains per
19=[3+(15-16)×(1-17)]÷(12+18) -0.05 0.03
share（Ⅱ）
39.Other comprehensive income
Items Amount of Amount of
current previous
period period
1．Loss amount produced by sellable financial assets -215,997 -6,238
Less：Income tax infection produced by sellable financial assets
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
Subtotal -215,997 -6,238
2．The enjoyed share in other comprehensive income of other
invested unit according to equity method
Less：Income tax infection produced from the enjoyed share
in other comprehensive income of other invested unit
according to equity method
82/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of Amount of
current previous
period period
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Subtotal
3．Benefit (Or loss) amount produced from cash flow
Less：Income tax infection produced from cash flow the aging
instruments
Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former period
Transferred to the adjustment of initial confirmation amount of
items at hedged period
Subtotal
4．Translating difference in foreign currency financial reports -3,172,304 -2,041,861
Less：Net amount that transferred into profit and loss at current
period in disposed overseas business
Subtotal -3,172,304 -2,041,861
5．Other 12,397
Less ： Taxation infection arising from reckoning other
comprehensive income
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period.
Subtotal 12,397
Total -3,388,301 -2,035,702
40.Cash Flow Statement
Supplement information of Cash Flow Statement
Items Amount of
Amount of
current
previous period
period
1. Adjusting net profit to net cash flow in operating activities:
Net profit -8,261,438 5,364,951
Add： Provision for impairment of assets
Fixed assets depreciation 1,499,463 1,840,723
Amortization of intangible assets 26,234 26,866
Amortization of long-term expenses to be amortize
The losses on the disposal of fixed assets, intangible assets and 529
83/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of
Amount of
current
previous period
period
other long-term assets
Loss on retirement of fixed assets
Loss on changes of Fair value 48,602 17,686
Financial expenses 366,102 -357,761
Investment losses 6,734,727 -6,779,702
Decrease of deferred income tax asset
Increase of deferred income tax liability -20,219 -68,400
Decrease in inventory 9,735 -44,253
Decrease in operating receivable -374,691 2,900,080
Increase in operating payables 546,867 -3,272,060
Other 239,673
Net cash flows from operating activities 815,584 -371,870
2.Investing and financing activities that do not involve cash
receipts and payments
Conversion of debt into capital -
Convertible bonds to be expired within one year -
Fixed assets under financial lease -
3.Net increase in cash and cash equivalents
Cash at the end of the period 51,938,921 55,323,423
Less：Cash at the beginning of the period 51,786,613 56,105,626
Add: Cash equivalents at the end of the period -
Less：Cash equivalents at the beginning of the period -
Net increase in cash and cash equivalents 152,308 -782,203
(1) Cash and cash equivalents
Items Amount of Amount of
current previous
period period
Cash 51,938,921 55,323,423
Including :Stock of cash 67,185 132,304
The bank deposits which can be used at any time 51,257,501 44,882,082
The other monetary funds which can be used at any time 614,235 10,309,037
The funds deposited in the central bank which be used - -
The funds deposited in the same industry - -
The funds offered by the same industry - -
Cash equivalents - -
84/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of Amount of
current previous
period period
Including : Debt investments which will due within three months - -
Balance of cash and cash equivalents at the period end 51,938,921 55,323,423
Including : the restricted cash and cash equivalents used by the - -
parent company or subsidiary of the Group
IX. Related party relationship and related transactions
1.Related party relationship
(1)The parent Company with controlling relationship
(a) The parent Company with controlling relationship
Parent Registered Legal Organizati
Type Nature
company address representa on Code
tive
Union Issue company 11/F,Union Production Dong
192471500
Holdings Building, and sale of clothing Binggen
Limited real
Shennan Zhong and textiles,& andexport
Union Import
Union Dong
Road,Shenzhen estate developin 190337957
Group liability Building,Shennan business ―processing Binggen
Company Zhong Road, with materials‖ and
Shenzhen processing
The registered capital and change of the parent Company with
Parent company imported materials
Balance in year Increase of this Decrease of Balance in year
beginning period this period end
Union Group 90,606,000 - - 90,606,000
Union Holding 1,123,887,712 - - 1,123,887,712
Holdings
(b) the share held by the parent company or equity and the changes .
Shares amount Holding proportion%
Parent company
Amount in Amount Amount in Amount
year end in year year end in year
5,821,089 5,821,089 3.44% 3.44%
Union Group beginning beginning
Union Holding 43,141,032 43,141,032 25.51% 25.51%
Holdings
* Union Group holds 31.32% of equity capital of Union Holdings, it controls Union Holdings, and Union
Holdings is a controlling shareholder of the company, thus Union Group is the actual controller of the company
(2). Subsidiary
The subsidiaries of the Company as described in Note VII
85/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(3).Joint venture and affiliated company.
Joint venture and affiliated company ,see Notes VIII,9
(4). Other Related party
Related
Organization
Type Name transactions
Code
The related parties -
Current balance
controlled the same Actual
controller Shenye Union（HK）Co., Ltd.
The related parties 192199105
Current balance
controlled the same Actual Shenzhen Union Property
controller Group Co., Ltd.
2. Related transactions
1.Lease assets to the related parties
In the report year, the Company leased Room 1307 and 1308 of Union Building owned by Union
Group. The term of tenancy is from January 1, 2009 to May 31, 2009. The monthly rent is RMB
6800. The rent was determined according to market price. * The original lease contract agreement still
continues down to the expiration of the contract , without signing a new lease contract.
3. Balance current related parties
Related parties Year-end balance Year-beginning balance
Account receivable
Shenye Union（HK）Co., Ltd. 307,079 314,198
Other payable
Union Group 22,456,162 22,564,462
Shenzhen Union Property Group Co., Ltd. 683,414 699,258
X.Subsequent events
As of December 31, 2011，The company has no formed form other Importance events.
XI. Commitment events
1.Importance Commitment events
1). The external investment contracts and the related financial expenditures which have signed or not yet
completely fulfilled.
As of June 30, 2011,The Group still has the major external investments RMB 30 million which have signed but
still not paid, as follows:
Names of investment Contractual Prepaid Unpaid Expected Remarks
86/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
projects investment investme investment investment
amount nt amount period
amount
Invest Nanjing East The Capital
Asia Textile Co., Ltd increasing of the
30 million - 30 million Unsure
with machinery and project has not
equipments yet completed
2) The big contract which has been signed or is ready to be carried out
As of December 31, 2011, The Group still has big contract which has been signed but not paid, a total of
RMB1.71 million, as follows:
Name of Contractual Prepaid Unpaid Expected Remarks
investment investment investment investment investment
projects amount amount amount period
location of The Capital
production increasing of the
1,710,000 855,000 855,000 Unsure
equipments as project has not yet
a whole completed
2. Except for the events described above, By December 31, 2011,the Group has no other significant commitment
events.
XII . Events after balance sheet date
The Group had no other significant matters after the balance sheet date.
XIII. Other Significant Events
1.Lease
(1) Business in leasing assets
Year-end balance Year-beginning
Type balance
Cost 99,412,804 101,717,557
House, Building 99,412,804 101,717,557
Accumulated amortization 60,632,861 62,038,553
House, Building 60,632,861 62,038,553
Impairment provision -
House, Building -
The book value 38,779,943 39,679,004
House, Building 38,779,943 39,679,004
87/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
(2).Items related to measurement of fair value.
Item Amount at Gains and Accumulative Provision Amount
the for at the end
losses from change of fair
beginning impairment of period
change of value
of period made in
fair value in accounted for current
current as rights and period
period interests
Financial assets
1. Financial assets
calculated according to
fair value whose change is 77,235 -48,602 108,700
accounted for as profits or
losses for current period
Trading financial assets 874,427 -215,997 638,618
Subtotal of financial
951,662 -48,602 -215,997 747,318
assets
(3).Foreign financial assets and foreign financial liability
Item Amount at Gains and Accumulative Provision Amount
the for at the end
losses from change of fair
beginning impairment of period
change of value
of period made in
fair value in accounted for current
current as rights and period
period interests
Financial assets
1. Financial assets
calculated according to
fair value whose change is
accounted for as profits or
losses for current period
Trading financial assets 874,427 -215,997 638,618
Subtotal of financial 874,427
-215,997 638,618
assets
(4).Other Significant Events
Since March 2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and
dismissed most of workers. The company currently only had some house leasing business.
88/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
5 subsidiaries controlled by the company had stopped the operation and were depending on house
lease to maintain. In 2007 the company intended to invest part of machineries and equipments to
Nanjing East Asia Textile Printing & Dyeing Co., Ltd. But due to the reasons of the joint venture
party and the prospect change in the industry, the investment plan was delayed.
Up to the present, the project has been delayed for 3 years. The difficulties for the joint venture project have
constantly increased. The Company is actively negotiating with the other party of the joint venture and trying to
settle this problem properly.
89/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
XIV. Notes of main items of parent company’s financial statements
1. Account receivable
(1)Categories of account receivable
Year-end balance Year-beginning balance
Type Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount Proportion% Amount Proportion% Amount Proportion% Amount Proportion%
Account receivable
with significant
specific amount
that were 3,784,885 31.60 3,784,885 100 3,872,632 31.60 3,872,632 100
provisioned had
debt preparation
separately
Aging group - - - -
- -
90/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Year-end balance Year-beginning balance
Type Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount Proportion% Amount Proportion% Amount Proportion% Amount Proportion%
account receivable
that were not
significant but have
been provisioned
8,194,466 68.40 8,194,466 100 8,384,444 68.40 8,384,444 100
bad debt
preparation
separately
Total 11,979,351 100 11,979,351 100 12,257,076 100 12,257,076 100
91/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1） Account receivable with significant specific amount that were provisioned had debt
preparation separately
Provision Reason of
Name Book balance Bad debts
proportion% provision
Carnival Index International Aging long
1,126,897 1,126,897 100.00
Ltd
TAI YANG ENTERPRISE Aging long
1,036,110 1,036,110 100.00
CO.,LTD.
The company
Shenzhong Enterprise
1,621,877 1,621,877 100.00 insolvent, to
Co.,Ltd.
be canceled
Total 3,784,884 3,784,884 100.00 -
2） As of December 31, 2011, account receivable that were not significant but have been
provisioned bad debt preparation separately
Book Provision Reason of
Name Bad debts
balance proportion% provision
Fly Dragon International 588,335 588,335 100.00 Aging long
Grateful Textiles Co.,Ltd 581,284 581,284 100.00 Aging long
World Fabrica (Int'l) Ltd 477,128 477,128 100.00 Aging long
Shenzhen Fangzhou Textile Co., Aging long
457,871 457,871 100.00
Ltd.
Ezhou Xiangya Garments Co., Aging long
360,570 360,570 100.00
Ltd.
Tak Shing Buying Office Led 342,108 342,108 100.00 Aging long
Starline Textile CO.Ltd. 340,807 340,807 100.00 Aging long
U.D.C. (H.K.) Co.,Ltd 307,079 307,079 100.00 Aging long
Panther Fabric Ltd. 302,703 302,703 100.00 Aging long
Changshu Jiangsu Garments Aging long
277,105 277,105 100.00
Import & Export Co., Ltd.
Other (Total 109) 4,159,477 4,159,477 100.00 Aging long
Other 8,194,467 8,194,467 100.00
(2) Of the prepayments at the end of period, there were none owed by corporate shareholders of the Company
holding over 5% (including 5%) of its total shares with voting rights.
(3)The front 5 units’ information of account receivable
92/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Unit name Relation with Amount Fixed year Percentage of
the company account receivable
Shenzhong Enterprise Co.,Ltd. Over 3
Subsidiary 1,621,877 13.54
years
Non-Related Over 3
Carnival Index International Ltd 1,126,897 9.41
parties years
Non-Related Over 3
TAIYANGENTERPRISECO.,LTD. 1,036,110 8.65
parties years
Non-Related Over 3
Fly Dragon International 588,335 4.91
parties years
Non-Related Over 3
Grateful Textiles Co.,Ltd 581,284 4.85
parties years
Total 4,954,503 41.36
(4)About the account receivable from the related parties
Relation
Name with this Amount Proportion(%)
company
Name Subsidiary 1,621,877 13.54
Shenzhong Enterprise Co.,Ltd. Subsidiary 62,570 0.52
Shenzhen East Asia Victor Onward The related
Textile Printing & dyeing
parties
controlled
the same
Actual
controller 307,079 2.56
Shenye Union（HK）Co., Ltd. 1,991,526 16.62
Total
(5)Balance of foreign currency in account receivable
Year-end balance Year-beginning balance
Foreign
Original Exchange Amount in Original Exchange Amount in
currency
currency rate RMB currency rate RMB
HKD 11,038,875 0.83162 9,180,149 11,038,875 0.8509 9,392,979
Total 9,180,149 9,392,979
93/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
2. Other receivables
(1)Categories of other receivable
Year-end balance Year-beginning balance
Type Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount Proportion% Amount Proportion% Amount Proportion% Amount Proportion%
Other receivable with
significant specific amount that
77,573,582 98.10 3,299,737 4.25 78,976,883 98.09 3,376,237 4.27
were provisioned bed debt
preparation separately
Other accounts that were
provisioned bad debt
- - - -
preparation in accordance with
aging Group
Deposit Group 35,782 0.05 37,782 0.05 - -
Other receivable that were not
significant but have been
1,463,885 1.85 1,463,885 100.00 1,497,823 1.86 1,497,823 100.00
provisioned had debt
preparation separately
Totla 79,073,249 100.00 4,763,622 6.02 80,512,488 100.00 4,874,060 6.05
94/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
1） Other receivable with significant specific amount that were provisioned had debt preparation separately
Provision Reason of
Name Book balance Bad debts
proportion% provision
HongKong Victor
61,182,666 -
Onward
Shenzhen East
Asia Victor Onward
12,704,993 -
Textile Printing &
dyeing
Nanjing East Asia 1,291,370 1,291,370 100.00 Aging long
CCB.Guangdong
1,055,492 1,055,492 100.00 Aging long
Shunde Branch
Changzhou
Dongfeng Textile
952,875 952,875 100.00 Aging long
Printing & dyeing
Equipment Co., Ltd.
Total 77,187,396 3,299,737 4.27 —
2） Group –Deposit Group
Book Provision Reason of
Name Bad debts
balance proportion% provision
Dang Zewen 5,000 - -
Jiang Guangbin 1,481 - -
Huanggang Endorsement Deposit, No
1,361 - -
of deposit provision for
Shenzhen Port bad debts
Administration Service 27,940 - -
Centre
Other 35,782 - -
Total
3） As of December 31, 2011, Other receivable that were not significant but have been provisioned
bad debt preparation separately
Name Book balance Amount Proportion % Reason
HongKong Victor
711,859 711,859 100.00 Aging long
Onward
Shenzhen East Asia
501,845 501,845 100.00 Aging long
Victor Onward Textile
95/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Name Book balance Amount Proportion % Reason
Printing & dyeing
Shanghai Huayinke Aging long
Trade Industry Co., 175,916 175,916 100.00
Ltd.
Shenzhen Aging long
Environmental
34,206 34,206 100.00
Management System
Certification Center
Shenzhen Design Aging long
Institute of Ministry
29,319 29,319 100.00
of Machinery Industry
Shanghai Branch
Other 10,740 10,740 100.00 Aging long
Total 1,463,885 1,463,885 100.00 -
(2)As of December 31,2011，In the balance of accounts payable, there were no payables to shareholders holding
5.00% (including 5.00%) or more of the voting right of the Company;
(3) The front 5 units’ information of Other account receivable
Proportion(%)
Unit name Relation Amount
Account
with the Content
Age
company
Over 3
HongKong Victor Onward 61,182,666 77.37
Subsidiary years Business
Shenzhen Nanhua
Printing & dyeing Co., 13,000,000 2-3 16.44
Ltd. Subsidiary years Business
Non-Related Over 3 Payment for
Nanjing East Asia 1,291,370 1.63
parties years goods
CCB.Guangdong Non-Related Over 3 Payment for
1,055,492 1.33
Shunde Branch parties years goods
Changzhou Dongfeng
Textile Printing & dyeing Non-Related 952,875 Over 3 1.21 Payment for
Equipment Co., Ltd. parties years goods
Total 77,482,402 97.98
(4) Account receivable from Related affiliated parties
Name Relation with the company Amount Proportion(%)
96/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Name Relation with the company Amount Proportion(%)
HongKong Victor Onward Subsidiary 61,182,666 77.37
Shenzhen East Asia Victor
Onward Textile Printing & Subsidiary 501,845 0.63
dyeing Company
Shenzhen Nanhua Printing
Subsidiary 12,704,994 16.07
& dyeing Company
Total 74,389,505 94.07
(5)Other receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
Currency Original Exchange RMB Original Exchange RMB
of Name currency rate equivalent currency rate equivalent
HKD 79,793,066 0.83162 66,357,510 79,822,967 0.8509 67,921,362
Total 66,357,510 67,921,362
3. Long-term equity investment
(1) Long-term equity investment
Items Year-end balance Year-beginning balance
The cost of long-term equity
39,023,518
investment accounting 39,928,226.
Total of long-term equity
39,023,518
investment 39,928,226
Less ： Long-term equity
1,285,231
investments for impairment 1,315,027
Net value long-term equity
37,738,287
investment 38,613,199
(2)The cost method and equity method long-term equity investment
Cash
dividend
Vote Initial Year-beginning Exchange Year-end
Name Proportion % change of the
proportion % amount balance rate change balance
current
period
The cost
method
HongKong
22,266,157 504,515 21,761,642
Victor Onward 100 100 2,411,282
97/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Cash
dividend
Vote Initial Year-beginning Exchange Year-end
Name Proportion % change of the
proportion % amount balance rate change balance
current
period
Nanhua
Printing & 23,082,83 16,347,042 370,397 15,976,645
dyeing 54.82 54.82 1
Shenzhen
1,315,027 29,796 1,285,231
East Asia 51 51 1,470,000
26,964,11
39,928,226 904,708 39,023,518
Total 3
(3)Provision for impairment on long-term equity investment
Name of invested
Year-beginning Increase in the Decrease in the Year-end
company
balance current period current period balance
Shenzhen East Asia 1,315,027 29,796 1,285,231
4. Business income, Business cost
Items Amount of current Amount of Previous
period period
Key business income 43,481
Other business income 725,313 484,108
Total 725,313 527,589
Key business cost -531,197
Other business cost 239,549 239,102
Total 239,549 -292,095
Key business-product
Amount of current period Amount of Previous period
Name of product
Revenue Cost Revenue Cost
Cloth bleaching, printing and
43,481 -531,197
dyeing
House lease 725,313 239,549 484,108 239,102
Total 725,313 239,549 527,589 -292,095
5.Investment revenue
98/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of current Amount of
period Previous period
Disposal trading financial assets to achieve return 14,141 106,843
investment
Total 14,141 106,843
XV. Supplementary Information
1. Non–operating gain and loss statement of this year
Items Amount of Amount of Notes
current period Previous
period
Gain/loss form disposal of non-current assets -529
Tax refund, deduction and exemption that is
examined and approved by authority exceeding
or has no official approval document.
Governmental Subsidy accounted as current
gain/loss
List into ― the fund occupation expense charged
on non-financial enterprise‖, subordinate to the
accounting items ― Current profit & loss‖
Earning arising from identifiable fair value of
net assets of investees, which should be
enjoyed when costs (which are obtained by the
enterprise) invested in subsidiary companies,
pool companies and joint ventures, is less than
the obtained investment
Non-currency asset exchange profit & loss
Profit & loss arising from entrusting the third
party to invest or manage assets
Provision for asset impairment with drawn due
to force majeure (e.g. natural disaster)
Profit & loss arising from debt recombination
Expenses for enterprise recombination
99/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of Amount of Notes
current period Previous
period
Profit & loss that exceed the fair value, arising
from transaction with unfair transaction price
Net profit & loss during term beginning to
merger date of the subsidiaries arising form
business merger under same control
Profit & loss arising from the probable events
irrelevant to normal operating business of the
company
Except the effective hedge business related to
the normal operation business of the Company,
the profit and loss in the changes of fair values
caused by the holding of tradable financial
14,141
assets and tradable financial liabilities as well as
the investment returns in disposal of tradable
financial assets, tradable financial liabilities and
saleable financial assets
Single impairment test for impairment of
receivables transferred back to preparation
Profit & loss obtained from loan for outwards
entrust
Profit & loss arising from change of fair value
of investment-based real estate where
subsequent Measurement is conducted by
using the fair value mode
Impact on the current profit & loss caused by
one-off adjustment conducted on the current
profit & loss according to requirements
stipulated by taxation /accounting laws and
regulations
Entrusting earning arising from the entrusted
operation.
100/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
Items Amount of Amount of Notes
current period Previous
period
Except the above items, other non-operating 7,425
-259
earning and expenditure
Other profit & loss items confirming to the
definition of nonrecurring profit & loss
Subtotal 21,037 -259
Amount of influence of income tax
Amount of influence of minority interests
Total 21,037 -259
2.Return on net assets and earnings per share
Earnings per share（RMB）
Profit of the report period Return on net assets . Weighted（%） Basic earnings per Diluted gains per
share share
Net profit attributable to
shareholder of parent -0.05 -0.05 -0.05
company
Net profit attributable to the
parent company
-0.05 -0.05 -0.05
shareholders after deducting
of non-recurring gain/loss.
XVI. The approval of financial reports
The report of the financial statements was approved by all directors of the board of directors of
the Company on August 29,2011.
Section VII. List of Documents Available for Inspection
I. The semi-annual report 2011 of the Company;
II. The semi-annual financial report bearing the signatures and seals of the legal representative,
person in charge of accounting work and the person in charge of the accounting department;
III. The texts of all the Company's documents publicly disclosed in the newspapers and periodicals
designated by China Securities Regulatory Commission in the report period.
IV. The text of the Articles of Association of the Company.
101/102
深圳中冠纺织印染股份有限公司财务报表附注
2011 年 1 月 1 日至 2011 年 06 月 30 日
（本财务报表附注除特别注明外，均以人民币元列示）
The Board of Directors of Shenzhen Victor Onward Textile Industrial Co., Ltd
August 29, 2011
102/102
