深圳中冠纺织印染股份有限公司 2012 年度报告全文
深圳中冠纺织印染股份有限公司
Shenzhen Victor Onward Textile Industrial Co., Ltd.
2012 Annual Report
April 2013
1
深圳中冠纺织印染股份有限公司 2012 年度报告全文
I. Important Notice, Table of Contents and Definitions
The Board of Directors ,Supervisory Committee, all directors, supervisors and senior executives of the
Company hereby guarantees that there are no misstatement, 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.
Mr.Hu Yongfeng, The Company leader, Mr. Zhang Jinliang, Chief financial officer and the Mr..Ren
Changzheng, the person in charge of the accounting department (the person in charge of the accounting )hereby
confirm the authenticity and completeness of the financial report enclosed in this annual report.
All the directors attended the board meeting for reviewing the Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves
either.
This report is written respectively in Chinese and in English. In the event of any discrepancy between the
two above-mentioned versions,the Chinese version shall prevail.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Table of Contents
2012 Annual Report
I..Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Highlights and Business Highlights
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Information about Directors, Supervisors and Senior Executives
VIII. Administrative structure
IX. Internal Control
X. Financial Report
XI. Documents available for inspection
3
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Definition
Refers
Terms to be defined Definition
to
Refers
Company/The Company/ Shenzhen Victor Onward Textile Industrial Co., Ltd.
to
Refers
Company Law Company Law of the People‘s Republic of China
to
Refers
Securities Law Securities Law of the People‘s Republic of China
to
Refers
―CSRC‖ China Securities Regulatory Commission
to
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Indication of major risks
Information Disclosure media appointed by the Company are: Securities Times, Hong Kong Commercial
Daily and Juchao Website (www.cninfo.com.cn)，Investors are advised to pay attention to investment risks.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
II. Basic Information of the Company
1. Company Information
ST Shen Victor Onward A,
Stock abbreviation Stock code： 000018、200018
ST Shen Victor Onward B
Stock exchange for
Shenzhen Stock Exchange
listing：
Name in Chinese 深圳中冠纺织印染股份有限公司
Chinese Abbreviation 中冠
English name (If any) Shenzhen Victor Onward Textile Industrial Co., Ltd
English abbreviation (If any) VICTOR ONWARD
Legal Representative Hu Yongfeng
Registered address 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Postal code of the Registered
518119
Address
Office Address 26 Kuipeng Road, Kuiyong Town, Longgang District, Shenzhen
Postal code of the office
518119
address
Internet Web Site http://www.chinaszvo.com
E-mail szvo@chinaszvo.com
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Zhang Jinliang Wu Xia
Room 1308, Hualiang Building, No.2008 Room 1308, Hualiang Building, No.2008
Contact address
Shennan Zhong Road, Shenzhen Shennan Zhong Road, Shenzhen
Tel （755）83668425 （755）83667895
Fax （755）83668427 （755）83668427
E-mail zhangjl@udcgroup.com wux@udcgroup.com
3. Information disclosure and placed
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Newspapers selected by the Company for
Securities Times and Hongkong Commercial Daily.
information disclosure
Internet website designated by CSRC for
http: // www.cninfo. com. cn
publishing the Annual report of the Company
The place where the Annual report is prepared and
Room 1308, Hualiang Building, No.2008 Shennan Zhong Road, Shenzhen
placed
4.Changes in Registration
Number of
Date of Authority Business License Taxation Organization
Registration Registered with of Enterprise as Registration No.: Code
Legal Person
Initial registration April 1, 1984 Shenzhen 440301501131182 440301618801483 61880148=3
Registration at the
end of the reporting November 9, 1991 Shenzhen 440301501131182 440301618801483 61880148=3
period
Changes in principal business activities
No Changes
since listing (if any)
Changes is the controlling shareholder in
No Changes
the past (is any)
V. Other Relevant Information
CPAs engaged
Name of the CPAs Shinewing Certified Public Accountants
Office address： 10/F,A Unit, Lianhe Plaza, Futian District, Shenzhen, China
Names of the Certified Public
Zhang Weijian, Xia Wei
Accountants as the signatories
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□ Applicable√ Not applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
III. Summary of Accounting Highlights and Business Highlights
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
I.Summary of accounting /Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2012 2011 2010
（％）
Operating Gross income（RMB） 11,095,669.00 9,850,484.00 12.64% 9,351,110.00
Net profit attributable to the
shareholders of the listed company -247,331.00 -17,361,593.00 -98.58% 4,102,924.00
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
300,041.00 -17,375,777.00 -101.73% 3,864,424.00
to the shareholders of listed
company（RMB）
Cash flow generated by business
-384,418.00 4,202,430.00 -109.15% 237,582.00
operation, net（RMB）
Basic earning per
0 -0.1 -100% 0.02
share(RMB/Share)
Diluted gains per
0 -0.1 -100% 0.02
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） -0.21% -12.93% 12.72% 2.8%
End of End of Changed over last End Of
2012 2011 year（％） 2010
Gross assets（RMB） 172,002,557.00 172,238,794.00 -0.14% 195,732,419.00
Shareholders‘ equity attributable to
shareholders of the listed company 118,852,391.00 119,047,096.00 -0.16% 142,929,499.00
（RMB）
（II）The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
Unit:RMB
Net profit attributable to the shareholders Net Assets attributable to the
of the listed company shareholders of the listed company
Amount in the Amount in the End of the reporting Beginning of the
reporting period previous period period reporting period
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
According to CAS -247,331.00 -17,361,593.00 118,852,391.00 119,047,096.00
Items and amount adjusted according to CAS and IAS
Switch back the part of
Hong Kong house
110,363.00 113,086.00 -5,298,751.00 -6,626,459.00
property assessment in
accordance with IAS
Pursuant to overseas
-136,968.00 -17,248,507.00 113,553,640.00 -112,420,637.00
accounting standards
2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the
Accounting standards Outside Mainland China and the Chinese Accounting Standards.
Unit:RMB
Net profit attributable to the shareholders Net Assets attributable to the
of the listed company shareholders of the listed company
Amount in the Amount in the End of the reporting Beginning of the
reporting period previous period period reporting period
According to CAS -247,331.00 -17,361,593.00 118,852,391.00 119,047,096.00
Items and amount adjusted according to CAS and IAS
Switch back the part of Hong
Kong house property
110,363.00 113,086.00 -5,298,751.00 -6,626,459.00
assessment in accordance with
IAS
Pursuant to overseas
-136,968.00 -17,248,507.00 113,553,640.00 -112,420,637.00
accounting standards
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
The influence of appreciation through appraisal of workshop and 2 parking spaces in Hong Kong in 1992.
（III）Items and amount of deducted non-current gains and losses
Unit:RMB
Items Amount (2012) Amount (2011) Amount(2010) Notes
Non-current asset disposal
gain/loss(including the write-off part
5,174.00 -522.00 -39,237.00
for which assets impairment provision
is made)
Except the effective hedge business 6,045.00 13,965.00 257,537.00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
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 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 above -558,591.00 741.00 38,860.00
items
Amount of influence of minority
18,660.00
interests（After tax）
Total -547,372.00 14,184.00 238,500.00 --
For the Company‘s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
IV. Report of the Board of Directors
I. General
In the report period, the printing and dyeing mill of the Company in Shenzhen continued production suspense
while the parent company and five subsidiaries continued the suspension of printing and dyeing business due to
the production suspense of the printing and dyeing mill. The parent company, Nanhua Company and Hong Kong
Company maintained daily operation through property lease. The other three subsidiaries had suspended business.
The Company planned to invest in the joint venture project of Nanjing East Asia Textile Printing and Dyeing Co.,
Ltd. with partial machinery and equipment. Due to change of foundation of joint venture and prospect of the
industry, the capital increase was not completed. In the report year, the income from house rent was the main part
of net inflow of cash and the source of income from main operation.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
II. Analysis on principal Business
1.General
In 2012, the textile, printing and dyeing business of the head office and controlled subsidiaries of the Company did
not recover and continued to be suspended for rectification. The Company leased its idle properties and carried out
domestic trade of textile products on a small scale.
Progress of development strategy and operation plans in this period that are disclosed by the company in the
previous annual reports.
The Company plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of
machinery and equipment, Due to the reason on the side of the other party of joint venture and change of industry
prospect, the replenishment cannot be fulfilled and need court proceedings.
Reasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year
disclosed
□ Applicable√ Not applicable
2. Revenue
Notes:
Scope of key business :Production and sales of textile products, necessary raw materials, auxiliary materials,
various fabrics and garments and provision of relevant services.
In 2012, the total income from main operation was RMB 11.09 million, including rent income was RMB 9.82
million , Textile trade income was RMB 1.27 million.
Is the income from sales in kind greater than the service income?
□ Yes √ No
Significant orders in hand
□ Applicable√ Not applicable
Significant change in or adjustment of the products or services in the reporting period:
□ Applicable√ Not applicable
Main customers
Total sales amount to top 5 customers (RMB) 9,364,596.00
Proportion of sales to top 5 customers in the
84.4%
annual sales(%)
Information of the Company‘s top 5 customers
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
√ Applicable □ Not applicable
No Name Amount of sales Proportion(%)
Shenzhen Jinrongyuan Development Co.,
1 5,640,000.00 50.83%
Ltd.
2 Zhejiang Helan Industry Co., Ltd. 1,266,777.00 11.42%
3 SCSExpress International Limited 996,960.00 8.99%
4 CVA HOLDING 860,859.00 7.76%
Shenzhen Hebainian Investment
5 600,000.00 5.41%
Development Co., Ltd.
Total —— 9,364,596.00 84.4%
3.Costs
Classification of sectors
Unit:RMB
2012 2011
Classification Proportion in Proportion in Increase/Decre
Items
of sectors Amount operation Amount operation costs ase(%)
costs(5( (%
Textile
1,248,550.00 23.06% 0.00 0%
Industry
Leasing
4,164,806.00 76.94% 4,269,140.00 100% -2.44%
Industry
Classification of products
Unit:RMB
2012 2011
Classification
of products Proportion in Proportion in Increase/Decre
Items
Amount operation Amount operation ase(%)
costs(%) costs(%)
Textile 1,248,550.00 23.06% 0%
Lease 4,164,806.00 76.94% 4,269,140.00 100% -2.44%
Notes
Principal suppliers
Total sales volume of top 5 clients (RMB) 0.00
Percentage of total sales volume of top 5 clients in total
0%
annual sales volume （%）
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Information about the top 5 suppliers
□ Applicable√ Not applicable
3.Expenses
The financial expenses for 2012 were RMB - 444,174, which decreased by RMB 760,375 and 240.47% over
those for 2011 (RMB 316,201) mainly due to deposit interest income and exchange gains and losses.
5.R& D Expenses
N/A.
6.Cash Flow
Unit:RMB
Items 2012 2011 Increase/Decrease(%)
Subtotal of cash flow
received from operation 13,498,118.00 15,549,000.00 -13.19%
activities
Subtotal of cash flow paid
13,882,536.00 11,346,570.00 22.35%
for operating activities
Net cash flow arising from
-384,418.00 4,202,430.00 -109.15%
operating activities
Subtotal of investment
30,000.00 106,751.00 -71.9%
activity cash inflows
Subtotal of investment
690,127.00 18,535.00 3,623.37%
activity cash outflows
Net cash flow arising from
-660,127.00 88,216.00 -848.31%
investment activities
Subtotal of fund raising
126,343.00 129,462.00 -2.41%
activity cash outflows
Net cash flow arising from
-126,343.00 -129,462.00 -2.41%
raising activities
Net increase in cash and
-1,172,054.00 1,612,703.00 -172.68%
cash equivalents
Notes to the year-on-year change of the relevant data by over 30%
√Applicable □Not applicable
Net cash flows from operating activities were RMB -384,418, which decreased by 109.15% over the
previous year (RMB 4,202,430) mainly due to receipt of bills receivable of RMB 1.5 million as payment for
goods in the current year and no recovery of house rent for the previous year in arrears in the current year (which
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
occurred to Nanhua in 2011). Net cash flows from investing activities were RMB - 660,127, which decreased by
848.31% over the previous year (RMB 88,216)mainly due to the Company's purchase of fixed assets in the
current year.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□ Applicable√ Not applicable
III. Composition of principal businesses
Unit:RMB
Increase/decrea Increase/decrea
Increase/decrea
se of principal se of gross
se of reverse in
business cost profit rate over
Operating Gross profit the same
operating costs over the same the same
revenue rate(%) period of the
period of period of the
previous
previous year previous year
year(%)
(%) (%)
Industry
Textile
1,266,777.00 1,248,550.00 1.44% 1.44%
Industry
Lease Industry 9,828,892.00 4,164,806.00 57.63% -0.22% -2.44% 0.98%
Product
Sales of
viscose staple 1,266,777.00 1,248,550.00 1.44% 1.44%
fiber
Rent 9,828,892.00 4,164,806.00 57.63% -0.22% -2.44% 0.98%
District
Domestic 9,482,107.00 4,261,720.00 55.06% 17.5% 37.86% -6.65%
Hong Kong 1,613,562.00 1,151,636.00 28.63% -9.35% -2.41% -5.08%
Under the circumstance that the statistic specifications for the Company‘s principal business data experienced
adjustment in the reporting period, the principal business data upon adjustment of the statistic specifications at the
end of the reporting period in the latest year.
□ Applicable√ Not applicable
IV. Analysis on Assets and Liabilities
1.Significant Change in assets
Unit:RMB
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
End of 2012 End of 2011 Proportio
n
Proportion in Proportion in
increase/d Notes to the significant change
Amount the total Amount the total
ecrease
assets(%) assets(%)
(%)
52,227,262.0 53,399,316.0
Monetary fund 30.36% 31% -0.64%
0 0
Accounts
744,712.00 0.43% 744,712.00 0.43% 0%
receivable
Inventories 101,536.00 0.06% 162,457.00 0.09% -0.03%
Investment
31,041,484.0 34,373,451.0
based real 18.05% 19.96% -1.91%
0 0
estate
Long-term
65,784,312.0 63,192,614.0
equity 38.25% 36.69% 1.56%
0 0
investment
12,416,459.0 12,070,406.0
Fixed assets 7.22% 7.01% 0.21%
0 0
Trading Decrease due to the Company’
68,900.00 0.04%
financial assets sales of stocks it held
In the report year, the sales of
Bill receivable 1,500,000.00 0.87% 0.87% viscose staple fiber were settled
by using bills.
Increase due to uncompleted
prepayment of decoration
Prepayments 176,443.00 0.1% 27,548.00 0.02% -0.08% expenses by Victor Onward Hong
Kong, a subsidiary of the
Company, in the report year.
Decrease due to provision for
Inventories 101,536.00 0.06% 162,457.00 0.09% -0.03% diminution in value of inventories
in the report year.
2.Significant Change in Liabilities
Unit:RMB
2012 2011 Proporti
on
Proportion Proportion Notes to the significant change
Amount Amount increase
in the total in the total
/decreas
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
assets (%) assets (%) e(%)
Long-term
1,033,936.00 0.6% 1,160,011.00 0.67% -0.07%
loan
Due to non-payment of unpaid
Employees‘
766,680.00 0.45% 590,220.00 0.34% 0.11% remuneration for the board of
wage payable
directors at the end of the period.
3.Assets and liabilities Measured with Fair value
Unit:RMB
Gain/loss on Cumulative
Amount at Impairment Purchased Sold amount
fair value fair value
provisions in amount in in the Amount at
Item year change in the change
the reporting the reporting reporting
reporting recorded into year end
beginning period period period
period equity
Financial
assets
1.Financial
assets
measured by
fair value,
and its
changes are
reckoned in 68,900.00 -68,900.00
current
gains/losses(
not including
derivative
financial
asset)
3.Financial
assets
703,055.00 48,487.00 751,542.00
available for
sales
Aforementio
771,955.00 -68,900.00 48,487.00 0.00 751,542.00
ned total
Financial
0.00 0.00 0.00 0.00 0.00
liabilities
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
V. Analysis on core Competitiveness
N/A.
VI. Analysis on investment Status
1. External Equity investment
（1）External investment
External investment
Investment Amount in 2012(RMB) Investment Amount in 2011(RMB) Change rate
0.00 0.00 0.00
Particulars of investees
Proportion in the investees‘ equity
Companies Principal business
(%)
Zhejiang Union Hangzhou Bay
Real estate 25%
Chuangye Co., Ltd.
（2）Holding of the equity in financial enterprises
Number Sharehol Sharehol
Number Book
of shares ding ding
of shares balance Gain.
held at proportio proportio
Initial held at at the loss of
the n at the n at the Sauce of
Company Company Investme the end end of the Accounti
beginnin beginnin end of the
Name type nt cost of the the reporting ng items
g of the g of the the shares
(RMB) reporting reporting period
reporting reporting reporting
period(sh period (RMB)
period period period(%
ares) (RMB)
(shares) (%) )
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
（3）Investment in Securities
Number Shareho Number Shareho Book
of lding of lding balance Gain.
Initial
shares proporti shares proporti at the loss of
Short investm Account Sauce
Security Security held at on at the held at on at the end of the
form of ent ing of the
category code the beginnin the end end of the reportin
security cost(RM items shares
beginnin g of the of the the reportin g period
B)
g of the reportin reportin reportin g period (RMB)
reportin g g period g (RMB)
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
g period( (shares) period(
period(s %) %)
hares)
Winovel 31,000.0 -11,640.
Stock 601558 2,000 0% 0 0% 0.00 Buy
Wind 0 00
Semir 37,900.0 -18,817.
Stock 002563 1,000 0% 0 0% 0.00 Buy
Garment 0 00
Boya
Bio-phar
Stock 300294 0.00 0 0% 0 0% 0.00 8,755.00 Buy
maceutic
al
Stock 002662 WKW 0.00 0 0% 0 0% 0.00 568.00 Buy
Other securities investment
0.00 0 -- 0 -- 0.00 0.00 -- --
held at the end of the period
68,900.0 -21,134.
Total 3,000 -- 0 -- 0.00 -- --
0 00
Notes to holding of the equity in other listed companies
2.Entrusted Financing , investment in derivative products and entrusted loan
（1）Entrusted Financing
Unit:RMB‘0000
Amount
Amount Starting Expiry Method Has the
of the Actual
of the date of date of for statutory Provisio
principa income Income Related
Trustee‘ entruste entruste entruste determi procedu n for Associat
l in the actually transacti
s Name d d d ning the res been impairm ion
actually reportin obtained on(Y.N)
financin financin financin remuner gone ent
recovere g period
g g g ation through
d
Total 0 -- -- -- 0 0 0 -- 0 -- --
Overdue unreceived principal and
0
accumulated earnings amount
Notes
（2）Investment in derivatives
Position of derivatives invested at the End of the Report Period
□ Applicable√ Not applicable
Notes:
18
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）Entrusted loan
Unit:RMB‘0000
Countermeas
ures against
Exhibition the risks of
Application
Is it a period, exhibition
Prospective Guarantor or of the loan
related Amount Interest rate overdue or period,
borrower collateral by the
party contentious overdue
borrower
matter period or
contentious
matter
Total -- 0 -- -- -- -- --
Notes
3.Application of the Raised capital
（1）General application of the raised capital
Unit:RMB‘0000
Total amount of the raised capital 0
Total raised capital invested in the report period 0
Total accumulative raised capital invested 0
Amount of raised capital of which the purpose
0
was changed in the report period
Accumulative amount of raised capital of
0
which the purpose has been changed
Proportion of raised capital of which the
0%
purpose has been changed (%)
Notes to use of raised capital
（2）Promised projects of raised capital
Unit:RMB‘0000
Project Total Total Amount Accumu Investm Date Benefit Has the Has any
Committed
changed raised investm invested lated ent when realized predicte material
investment projects
(includi capital ent after in the amount progress the in the d result change
and investment
ng invested adjustm reportin invested ended project reportin be taken
19
深圳中冠纺织印染股份有限公司 2012 年度报告全文
partial as ent (1) g period at the the has g period realized place in
change) committ end of reportin reached feasibili
ed the g the ty
reportin period( predicte
g %)(3)=( d
period(2 2)(1) applicab
) le status
Committed investment projects
Subtotal of
committed -- 0 0 0 0 -- -- 0 -- --
investment projects
Investment of excessive raised capital Investment of excessive raised capital
Repayment of bank
-- 0 0 0 0 0% -- -- -- --
loan(If any)
Replenishing the
working capital (If -- 0 0 0 0 0% -- -- -- --
any)
Subtotal of intended
investment with -- 0 0 0 0 -- -- 0 -- --
unbooked proceeds
Total -- 0 0 0 0 -- -- 0 -- --
Analysis For
Failure To Reach
The Planned
.
Schedule And
Earnings（Specific
Projects）
Notes to significant
change in feasibility .
of the project
mount, application Not applicable
and application
progress of the .
unbooked proceeds
About the change of Not applicable
the implementation
site of the projects
.
invested with the
proceeds
Adjustment of the Not applicable
20
深圳中冠纺织印染股份有限公司 2012 年度报告全文
implementation
way of investment
.
funded by raised
capital
About the initial Not applicable
investment in the
projects planned to
be invested with the .
proceeds and the
replacement
Using the idle Not applicable
proceeds to
supplement the
.
working capital on
temporary basis
Balance of the Not applicable
proceeds in process
of project
.
implementation and
the cause
About application
and status of the .
proceeds unused
Problems existing
in application of the
proceeds and the
.
information
disclosure or other
issues
（3）Change of the Projects invested with the Raised Capital
Unit:RMB;0000
Date
Total Accumula Has any
Investmen when the
Correspon raised Amount ted material
t progress project Benefit
ding capital actually amount Has the change
Projects ended the has realized in
projects invested invested invested predicted taken
after reporting reached the
for in the in the at the end result be place in
change period(%) the reporting
undertakin projects reporting of the realized feasibility
(3)=(2)/(1 predicted period
g after period reporting after the
) applicable
change(1) period(2) change
status
21
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Total -- 0 0 0 -- -- 0 -- --
Changing reason, decision
procedure and statement of .
disclosure(In specific project)
Situation about not coming up to
schemed progress or expected
.
revenue and the reason(In
specific project)
Explanation on great changes of
feasibility of project after .
changed
4.Analysis on principal subsidiaries and Mutual Shareholding Companies
Particulars about the principal subsidiaries and Mutual shareholding companies
Leading
Sectors Total Operatin
Company Company products Registere Net assets Tumover Net Profit
engaged assets(RM g profit
Name type and d capital (RMB) (RMB) (RMB)
in B) (RMB)
services
Hong
Kong
Textile Textile 2,400,002 115,059,8 44,366,66 1,613,561 2,282,40 2,348,602.0
Victor Subsidiary
industry trade （HKD） 89.00 2.00 .00 9.00 0
Onward
Co.Ltd
Textile
Nanhua Textile Printing 85,494,70 28,021,87 -17,950,1 6,647,443 380,128.
Subsidiary 380,128.00
Company industry and 0（HKD） 7.00 42.00 .00 00
dyeing
Particulars about the principal subsidiaries and Mutual holding companies
Acquirement and disposal of subsidiaries in the Reporting period
□ Applicable√ Not applicable
5.Projects invested with the non-raised capital
Unit:RMB‘0000
Amount
accumulatively
Amount invested in
Name Total investment invested up to the Project progress Earnings
the reporting year
end of the reporting
period
22
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Total 0 0 0 -- --
Notes to the material projects invested with non-raised capital
VII. Special purpose principal under the control of the Company
N/A.
VIII. Development prospect
The Company actively made exploration to seek breakthrough, organized relevant personnel to conduct
industrial project feasibility study, tried to fix a development target and made great efforts to find a path suitable
for its industrial development.
IX. Explanation of the Board of Directions Concerning the ― non-standard audit report‖ issued by
the CPAs firm for the reporting period.
1．Basic information
Shine Wing Certified Public Accountants issued unqualified auditor's report with paragraph of emphasized
matters for the Company's financial statements for 2012 Basic information of emphasized matters: Since March
2007, Shenzhen Victor Onward Textile Industrial Co., Ltd. stopped production and dismissed most of workers.
And most subsidiaries of the company had stopped production and it maintained daily operation by house leasing.,
but its sustainable operation ability is still uncertain.
(II) Basic opinions of certified public accountants on such matter:
Shine Wing Certified Public Accountants accepted entrustment, completed the audit of the financial
statements of the Company for 2012 and issued unqualified auditor's report with paragraph of emphasized matters
for the Company's financial statements for 2012. In accordance with No. 14 Rule for Preparation and Report of
Information Disclosure by Companies Publicly Issuing Securities - Non-standard Unqualified Audit Opinions and
Treatment of Matters Involved Therein, relevant notes are as follows:
As noticed by Shine Wing Certified Public Accountants during audit, Since March 2007, Shenzhen Victor
Onward Textile Industrial Co., Ltd. stopped production and dismissed most of workers. The company currently
only had house leasing business.
Except that Shenzhen East Asia Victor Onward Textile Printing and Dyeing Co., Ltd. is still operating normally,
other 5 subsidiaries controlled by the Company have stopped operation or are maintaining daily operation by
house property lease. It plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd. with part of
machinery and equipment in 2007, The investment plan has not been implemented, the proposed investment has
been idle equipment stored in the Victor Onward Company. On June 4, 2012, The Victor Onward Company has
instituted court action at Jiangsu Province Higher People's Court, and asked to terminate the contracts and
agreement on investment on Nanjing project. We believe that the sustainable operation ability of Shenzhen Victor
Onward Textile Industrial Co., Ltd. is still uncertain, so I emphasized the situation in the audit reports and issued
unqualified auditor's report with paragraph of emphasized matters. The matters involved in highlighted statement
did not apparently violate Accounting Standards for Business Enterprises and regulations on relevant information
disclosure standardization.
23
深圳中冠纺织印染股份有限公司 2012 年度报告全文
(III) The opinions of the board of directors, supervisory committee and management of the
Company on this matter:
The board of directors, Supervisory Committee and managers believed that the printing and dyeing plant of
the company had stopped operation or maintained daily operation by house leasing. .It plans to invest in Nanjing
East Asia Textile Printing and Dyeing Co., Ltd. with part of machinery and equipment, Due to the reason on the
side of the other party of joint venture and change of industry prospect. Partners disagree with our views in the
replenishment of the things, thus cooperation is difficult to continue. Although we sent our staff to Nanjing many
times for negotiation, but failed to reach a consensus. Therefore, we decided the proceedings in the People's
Court.
(IV) 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. As the
audited net profits of the Company for 2011 and 2012 were negative, Shenzhen Stock Exchange will give special
treatment to the stocks of the Company for the caution of delisting risk according to relevant regulations including
Stock Listing Rules of Shenzhen Stock Exchange. The stocks of the Company will be subject to special treatment
for caution of delisting risk after the disclosure of 2012 annual report. The Company stocks will be suspended
from April 24, 2013, The stocks of the Company will implement special treatment for delisting risk warning after
the Company was restored for trading from April 24,2013.
According to Stock Listing Rules of Shenzhen Stock Exchange, the listing of the stocks of the Company will
be suspended from the day of announcement of 2013 annual report if its audited net profit for 2013 is still
negative. In case of failure to reverse loss according to the annual report for the latest period disclosed within
statutory time limit, the stocks of the Company will face the risk of termination of listing.
(V) The possibility of eliminating this matter and its influence:
In order to try to have the caution of delisting risk revoked, the Company will make all efforts to enhance
operating efficiency and increase return through various measures and take "reversing loss into profit" as the
priority target of production and operation for the year in 2013.
(VI) The concrete measures of eliminating this matter and its influence
The Company Holding a positive and prudent attitude, the company has been looking for a new business direction
and an effective way to fight to reverse loss into profit in 2013.
X. Explain change of the accounting policy, accounting estimate and measurement methods as
compared with the financial reporting of last year.
N/A.
XII. Explain change of the consolidation scope as compared with the financial reporting of last
year.
N/A.
24
深圳中冠纺织印染股份有限公司 2012 年度报告全文
XII. Explain change of the consolidation scope as compared with the financial reporting of last
year.
N/A.
XIII. Dividend Distribution Preparation
Implementation or adjustment of the Company‘s profit Distribution policy, Especially Cash Dividend Distribution
Policy in the Reporting Period.
According to relevant regulations including the Notice of Further Implementing the Matters Concerning
Distribution of Cash Dividends by Listed Companies, the Notice of Seriously Satisfying Relevant Requirements
of the Notice of Further Implementing the Matters Concerning Distribution of Cash Dividends by Listed
Companies issued by Shenzhen Securities Regulatory Bureau (Shen Zheng Ju Gong Si Zi (2012) No. 43
Document) and the Articles of Association of the Company, the 4th meeting of the sixth board of directors of the
Company held on August 14, 2012 examined and adopted the Company's Profit Distribution Policy and Planning
for Return to Shareholders in the Nest Three Years (2012-2014) and the Proposal for Revising Part of Clauses of the
Articles of Association of the Company and revised the clauses of the Articles of Association of the Company
concerning profit distribution. The revised profit distribution policy defined dividend distribution standards and
proportion, increased the transparency and operability of profit distribution policy and protected the lawful rights
and interests of middle and small shareholders. The formulation of the Company's Profit Distribution Policy and
Planning for Return to Shareholders in the Next Three Years (2012-2014) improved the Company's decision
making and supervision mechanism for profit distribution and ensured return to shareholders. The said Articles of
Association and planning were examined and adopted by the first provisional shareholders' general meeting in
2012 and implemented. When the Company formulated this planning, independent directors conducted effective
supervision of the profit distribution plan of the Company and expressed independent opinions.
Refer to Announcement that disclosed on Securities Times ,Hong Kong Commercial Daily and www.cninfo.com.
cn respectively on August 16, 2012.
Implementation or adjustment of the Company‘s profit Distribution policy, Especially Cash Dividend Distribution
Policy in the Reporting Period.
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into
share capital in the past three years(with the reporting period inclusive):
(1) The company‘s annual profit distribution for 2010.
As audited by Shinewing Certified Public Accountants, the total profit of the Company for 2010 is
RMB2,326,231 , After deduction of minority gains and losses of RMB-1,731,989 and income tax expenses of
-44,704, net profit is RMB4,102,924,the total year-end undistributed profit is - RMB -98,665,017. The Company
is neither to distribute profit nor to capitalize capital surplus for the current year.
The company‘s annual profit distribution for 2011.
As audited by Shinewing Certified Public Accountants, the total profit of the Company for 2011 is
25
深圳中冠纺织印染股份有限公司 2012 年度报告全文
RMB-17,466,414 , After deduction of minority gains and losses of RMB-61,919 and income tax expenses of
-42,902, net profit is RMB-17,361,593,the total year-end undistributed profit is - RMB -116,026,610. The
Company is neither to distribute profit nor to capitalize capital surplus for the current year.
The company‘s annual profit distribution and the capital accumulation funds to increased capital stock for 2012.
Profit distribution preplan for 2012：
1 As audited by Shinewing Certified Public Accountants, the total profit of the Company for 2012 is
RMB-289,200 , After deduction of minority gains and losses of RMB0 and income tax expenses of -41,869, net
profit is RMB-247,331,the total year-end undistributed profit is - RMB-116,273,941. The Company is neither to
distribute profit nor to capitalize capital surplus for the current year.
2. According to the decisions of the 6th meeting of the sixth board of directors of the Company held on April 19,
2013, the Company will neither distribute profit nor capitalize capital surplus for 2012 and will use the profit to
make up the losses of the previous year.
The above profit distribution preplan is to be submitted to 2012 annual shareholders' general meeting for
examination.
3. The reason for no profit distribution for 2012, use of profit and relevant plan
At present, the Company has no main operation and only leases some factory buildings. As of the end of the
report period, the profit available for distribution to shareholders was still negative. the Company will neither
distribute profit nor capitalize capital surplus for 2012 and will use the profit to make up the losses of the previous
year.
4. The independent opinions expressed by the independent directors of the Company on the profit distribution
preplan made by the board of directors for 2012
In the opinion of the independent directors, the Profit Distribution Preplan for 2012 examined and adopted at
the board meeting of the Company was made based on fully considering the current conditions of the Company,
complied with the Company's actual conditions and contributed to the Company's normal operation and the
safeguarding of shareholders' long-term interest. It also completely complied with relevant provisions of the
Articles of Association of the Company and Accounting Regulations for Business Enterprises. The profit
distribution preplan of the Company for 2012 was approved. It was also approved to submit this preplan to 2012
annual shareholders' general meeting of the Company for examination.
Dividend distribution of the latest three years
Unit：RMB
Net profit attributable to Ratio in net profit
the over of the parent attributable to the parent
Cash dividend (Including
Year company in the company in the
Tax)
consolidated financial consolidated financial
statements statements
2012 -247,331.00
2011 -17,361,593.00
2010 4,102,924.00
26
深圳中冠纺织印染股份有限公司 2012 年度报告全文
In the reporting period, both the Company‘s profit and the parent company‘s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable√ Not applicable
XIV. Social responsibility
(I) Protecting shareholders' rights and interests
1. The Company attached importance to reasonable investment return to investors especially middle and small
shareholders, formulated continuously stable profit distribution policy, revised the clauses of the Articles of
Association of the Company concerning profit distribution especially the policy for cash dividend distribution,
defined dividend distribution standards and proportion, formulated Planning for Return to Shareholders from 2012
to 2014 and fully safeguarded shareholders' lawful rights and interests.
2. The Company perfected the mechanism for shareholders‘ general meeting, standardized the procedure of
convening and holding shareholders' general meeting and its agenda and ensured middle and small shareholders'
right of knowing facts about the Company, participation and voting.
(II) Safeguarding employees' rights and interests
1. The Company implemented the system of all employees signing labor contracts according to relevant provisions
of Labor Law and Labor Contract Law and formulated and unceasingly perfected the regulations on safeguarding
employees' rights and interests. It has sound remuneration appraisal system so as to ensure reasonable allocation of
remuneration to employees.
2. Despite current production suspense, the Company has always adhered to the work policy of "safety first",
regularly organized employees to study and unceasingly improved all safety systems to earnestly safeguard
employees' rights and interests.
XV. Statement of such activities as reception, research, communication, interview in the
reporting period
Discussion topics and
Reception time Reception place Way of reception Types of visitors Visitors received
provision of materials
Enquiry about the
February 21, BOD office of
By phone Individual Investor Company‘s operating
2012 the Company
status
Enquiry about the
BOD office of
May 7, 2012 By phone Individual Investor possibility of the
the Company
Company‘s delisting
BOD office of Enquiry about the
July 4, 2012 By phone Individual Investor
the Company company situation
Enquiry about the
December 24, BOD office of Company‘s whether the
By phone Individual Investor
2012 the Company Company has any plan
for reorganization
27
深圳中冠纺织印染股份有限公司 2012 年度报告全文
V. Important Events
I. Major lawsuits and Arbitration affairs
√ Applicable□ Not applicable
Basic Amount Whether Progress
Judgment
information of involved comes to of Trial results Disclosure Index of
enforcement
lawsuits(Arbitra (RMB‘0000 accrual lawsuits(a and influence date disclosure
situation
tion) ) liability or not rbitration)
On June 4,
2012, The
company has
instituted court
action against
below three
companies at
Jiangsu
Province Higher
People's Court,
and asked to
Announceme
terminate the
nt No.
contracts and
2012-0614)
agreements
Securities
signed with The case
Times , Hong
Nanjing East 4,792 No hasn‘t yet June 16, 2012
Kong
Asia Textile been tried
Commercial
Printing &
Daily and
Dyeing Co.,
www.cninfo.
Ltd., Nanjing
com.cn
East Asia
Investment &
Development
Group Co., Ltd.
and Hong Kong
Yaojunxing Co.,
Ltd., who shall
pay
RMB47,922,90
2.92 to the
company for the
28
深圳中冠纺织印染股份有限公司 2012 年度报告全文
pecuniary loss
of implicative
compensation
and undertake
the costs of
litigation. The
company has
received the
Su-Shang-Wai-
Chu-Zi No.0002
(2012) of
―Notice on
Indictment
Acceptance and
Collegial Panel
Announcement‖
issued by
Jiangsu
Province Higher
People's Court
on June 14,
2012.
Query form media
□ Applicable√ Not applicable
In the reporting year, the Company had no query from media
II. Non—operation oriented Fund Occupancy by the Controlling Shareholder and/ or Related
Parties
Amount at
Amount Total Amount at
Name of the Predicted
increased repaid in the end of Predicted
sharehold beginning Predicted amount to
Occupanc in the the the repayment
er or Cause of the way of be repaid
y time reporting reporting reporting time
related reporting repayment (RMB‘00
period(R period period(R (month)
parties period(R 00)
MB ) (RMB) MB )
MB)
Total 0 0 0 0 -- 0 --
Ratio of total value at
per5iod-end in net assets of 0%
period-end (%)
29
深圳中冠纺织印染股份有限公司 2012 年度报告全文
III. Bankruptcy or Reorganization Related Events
N/A.
IV. Assets Transactions
1. Acquisition of Assets
Net profit
Net profit Proportio
contributed to
contributed to n of the
the company
the Company net profit
from the
from the year contribut
The other Assets Transacti acquisition date
beginning to ed by the Is it a Connectivi
party or acquisiti on to the year end
the year end asset for related ty relations Disclosure Disclosure
eventual on or price(R Progress (RMB 0000)
(RMB‘0000) the transact with the date index
controlle transferre MB‘000 (Applicable to
(Applicable to Compan ion other party
r d in 0) the
the y in the
consolidation
consolidation total
of the
of the profit
enterprises not
enterprises) (%)
under the )
General on Acquisition of Assets
2. Sales of Assets
Net
profit
contribu
ted to Proporti Connect
the on of ivity
compan the net Relation Has all
Has all
y from profit Is it a s with the
Gain/los the
Other Transact the contribu Pricing related the ownersh
s arising credit
party of ion beginni ted by principl transacti other ip of the Disclos
Assets Date of from /debt Disclos
the price ng of the asset e for the on Is it a party assets ure
sold sale sales involve ure date
transacti (RMB‘0 the for the asset related (applica involve index
(RMB‘0 d been
on 000） reportin compan sold transacti ble to d been
000) transferr
g year y in the on the transferr
ed
to the total related ed
date of profit transacti
sales of (%) on)
the asset
(RMB‘0
000)
30
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Notes to the sales of assets:
3. Enterprise Consolidation
N/A.
V. Implementation of the Company‘s Equity Incentive plan and its influences
N/A.
VI. Material related transactions
1. Related transactions in connection with daily operation
Principl Amount Proporti
Descript e of of the on in the
Price of
Type of ion of pricing related amount Mode of
Related Relation related Market Disclosu Disclosu
related related of the transacti of the settleme
parties ship transacti price re date re index
parties transacti related on similar nt
ons
ons transacti (RMB‘0 transacti
on 000) on (%)
Total -- -- 0 0% -- -- -- --
2. Related transactions conceding assets acquisition/sales
Estimat
Principl Book Way of Income
ed
Descrip e of value Fair Assign Settlem from
value
Type of tion of pricing of the market ment ent for the Disclos
Related Relatio of the Disclos
related related of the assigne value price the assigne ure
party nship assigne ure date
party transact related d assets (RMB (RMB related d assets index
d assets
ion transact (RMB 0000) 0000) transact (RMB
(RMB
ion 0000) ion 0000)
0000)
3. Important related transitions with joint investment
Total assets
Pricing Net assets Net profit
Principal Registered of the
Joint Relationshi principle Name of of the of the
business of capital of investee
investors p for the joint the investee investee investee
the investee the investee (RMB‘000
investment (RMB) (RMB)
0)
31
深圳中冠纺织印染股份有限公司 2012 年度报告全文
4.Current Associated rights of credit and liabilities
Did there exist any non-operational related rights of credit and liabilities
□Yes √ No
Whether there Balance at the Amount in
Type of Balance at the
Association Reason for is the use of beginning of this
Associated party claims and end of period
relationship formation non-operating period period(RMB‘
debts (RMB‘0000)
capitals (RMB‘0000) 0000)
5.Other material related transactions
Related party Amount at the end of Amount at the beginning
period of period
Account receivable
Shenye Union（Hong Kong）Co., Ltd. 299,428 299,354
Other Payable
Union Development Gruop Co., Ltd. 24,748,412 23,159,803
Shenzhen Union Property Group Co., Ltd. 700,734 700,734
Relevant inquiry with the internet website for disclosing provisional report on material related transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
VII. Important contracts and implementation
1. Custody, contacting and leases
（1）Custody
Description of custodies
Projects that have brought about gains/losses to the company taking over 10% of the Company‘s total profit in the
reporting period.
□ Applicable√ Not applicable
（2）Contracts
Description of contracts
None
Projects that have brought about gains/losses to the Company taking over 10% of the Company‘s total profit in the
reporting period
□ Applicable√ Not applicable
32
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）Leases
Description of leases
None
Projects that have brought about gains/losses to the company taking over 10% of the Company‘s total profit in the
reporting period
□ Applicable√ Not applicable
2.Guarantees
Unit:RMB‘0000
External Guarantee (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Complete for
happening Actual
Name of the date/No. of Amount of Guarantee Guarantee implemen associate
(Date of mount of
Company the Guarantee type term tation d
signing guarantee
guaranteed or not parties
agreement)
amount (Yes or
no)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Total of Company‘s guarantee（namely total of the large two aforementioned）
Including：
Description of the guarantee with complex method
（1）Outward guarantee against law
Unit:RMB‘0000
（1）Outward guarantee against law
Unit:RMB‘0000
33
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Balance
Proportio Proportio
Amount of the
n in the n in the
involved guarante
Relations net assets net assets Predicted
Name of in the e against Predicted
hip with at the at the Predicted amount
the guarante Guarante Guarante law up to time of
the end of end of way of released
guarante e against e type e period the release(
Compan the the release (RMB‘0
e the annual month)
y reporting reporting 000)
law(RM report
period(% period(%
B‘0000) (RMB‘0
) )
000)
Total 0 0% -- -- 0 0% -- -- --
3.Other important contracts
Appraise
Book
d value
Name of value of
Name of of the Impleme
the the assets Name of Transacti
the assets Benchma Is it a ntation
counterp involved the on
company involved rk date of Pricing related Relations status
art in the appraisal price(R
concludi in the appraisal policy transacti hip ended the
concludi contract agent (is MB‘000
ng the contract (is any) on reporting
ng the (RMB‘0 any) 0)
contract (RMB‘0 period
contract 000)(if
000) (if
any)
any)
VIII. Implementation of Commitments
1. The commitments of the Company and its shareholders holding over 5% of the Company‘s total shares in the
report year of extending to the report year from previous year.
Time of
Commitment Period of
Commitment Contents making Fulfillment
maker commitment
commitment
Union Committed
Holdings when the
Co., restricted-for-
Ltd/Shenzhe sale shares
Under
Commitment on share reform n Textile from the In effect
Fulfillment
(Holdings) shares
Co., restructuring
Ltd./Union were listed for
Developmen circulation in
34
深圳中冠纺织印染股份有限公司 2012 年度报告全文
t Group Co., the market: i.
Ltd. if they plan to
sell the shares
through the
securities
exchange
system in the
future, and the
decrease of
the shares
they hold
reaches 5%
within 6
months after
the first
decrease, they
will disclose
an
announcemen
t indicating
the sale
through the
company
within two
trading days
before the
first decrease;
ii. They shall
strictly
observe the
―Guidelines
on Transfer of
Restricted-for
-sale Original
Shares of
Listed
Companies‖ a
nd the
provisions of
the relevant
business
principles of
Shenzhen
Stock
35
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Exchange.
Commitment in the acquisition
Not
report or the report on equity
applicable
changes
Commitment made upon the assets Not
replacement applicable
Not
Commitments made upon issuance
applicable
Other commitments made to minority Not
shareholders applicable
Executed timely or not? Yes
Detailed person for failing to execute
Not applicable
and the next plan
Make commitments on causing the
problems of horizontal competition No
and related-party transactions or not?
Settlement period of commitment Not applicable
Way of settlement Not applicable
Fulfillment of commitment Under Fulfillment
2.There existed profit anticipation for the Company‘s assets or projects while the reporting period was still within
the duration of the profit anticipation. The Company made explanation on whether the assets or projects reached
the anticipated profit and the cause
Cause of
Predicted Actual result
Profit-predict failure to
result in the in the Predicted Predicted
ed assets or Predicted Predicted realize the
reporting reporting disclosure disclosure
name of staring time ending time predicted
period(RMB period (RMB date index
project result(if
0000) 000)
applicable)
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs Shinewing Certified Public Accountants
Remuneration for domestic accounting firm
30
(RMB‘0000)
Continuous life of auditing service for domestic
7
accounting firm
Name of domestic CPA Zhang Weijian, Xia Wei
36
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing
□ Yes √ No
X. Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified Auditor‘s
Report Issued by the CPAs.
Shine Wing Certified Public Accountants Co., Ltd. issued unqualified auditor's report with highlighted paragraphs
for the financial statements of the Company for 2012. The board of directors of the Company made a special
statement on the matters involved in the Unqualified Auditor's Report of the Company for 2012 with Highlighted
Paragraphs. The independent directors of the Company expressed independent opinions on this. The supervisory
committee of the Company held the opinion that this statement matched its actual conditions and agreed to
opinions of the board of directors of the Company.
XI. Punishment and Rectification
Type of
Conclusion(if Index of
Name Type Reasons investigation and Disclosure date
applicable) disclosure
penalty
About directors, supervisors, senior executives or shareholders holding over 5% of the Company‘s total shares
suspected of being involved in trading of the Company‘s shares against the regulations and recovery of the profit
obtained by such persons suspected of being involved in trading of the Company‘s shares against the regulations
as disclosed by the Company.
□Applicable √Not applicable
XII. Situation of being confronted of suspension or termination of listing upon disclosure of the
Annual report
N/A.
XIII. Notes to other significant Events
Announcement on lawsuits.of Shenzhen Victor Onward Textile Industrial Co., Ltd. Announcement
No.:2012-0614，Announcement Date: June 16, 2012.(www.cninfo.com.cn)，Investors are advised to pay attention
to investment risks.http://www.cninfo.com.cn/finalpage/2012-06-16/61144742.PDF
XIV. Significant events of subsidiaries
N/A.
37
深圳中冠纺织印染股份有限公司 2012 年度报告全文
XV. Issuing of Company Bonds
N/A.
38
深圳中冠纺织印染股份有限公司 2012 年度报告全文
VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
I. Share with conditional
0 0% 0 0 0 0 0 0 0%
subscription
1.State-owned shares 0 0% 0 0 0 0 0 0 0%
2.Staee-owned legal person
0 0% 0 0 0 0 0 0 0%
shares
3.Other domestic shares 0 0% 0 0 0 0 0 0 0%
Of which：Domestic legal
0 0% 0 0 0 0 0 0 0%
person shares
Domestic natural person
0 0% 0 0 0 0 0 0 0%
shares
4.Share held by foreign
0 0% 0 0 0 0 0 0 0%
investors
Of which：Foreign legal
0 0% 0 0 0 0 0 0 0%
person shares
Foreign natural person
0 0% 0 0 0 0 0 0 0%
shares
5. .Executive shares 0 0% 0 0 0 0 0 0 0%
II. Shares with 169,142,3 169,142,3
100% 0 0 0 0 0 100%
unconditional subscription 56 56
1.Common shares in 99,720,45 99,720,45
58.96% 0 0 0 0 0 58.96%
RMB 3 3
39
深圳中冠纺织印染股份有限公司 2012 年度报告全文
2.Foreign shares in 69,421,90 69,421,90
41.04% 0 0 0 0 0 41.04%
domestic market 3 3
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%
169,142,3 169,142,3
III. Total of capital shares 100% 0 0 0 0 0 100%
56 56
Approval of changes in shares
N/A.
Approval of Change of Shares
□Applicable √Not applicable
Transfer of Change of shares
N/A.
Influence from the shareholding movements upon such financial indicators as Earnings per share, net asset per
share of the lastest year and the latest accounting period
□Applicable √Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
N/A.
II. Issuing and listing
1. Issuing activities over the past three Years
Description of
Quantity
stock and its Issuing price (Or Expiration date of
Issuing date Issuing quantity Listing date approved for
Derivative interest rate) transaction
listing
Securities
Stock
Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds
Stock options
Statement of security issuing in latest three years
N/A.
40
深圳中冠纺织印染股份有限公司 2012 年度报告全文
2. Change of asset and liability structure caused by change of total capital shares and structure
N/A.
3.About the existing employees‘ shares
Date of issuing the employees‘ Issuing quantity of the employees‘
Issuing price of the employees‘ shares (RMB)
shares shares(shares)
Notes to the existing employees‘
N/A
shares
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
Unit: Shares
Total shareholders in the reporting Total shareholders at the end of the 5th day from the
10,742 10,084
period date of disclosing the annual report
Shares held by 5% shareholders
Quantit Number Pledging or freezing
Increase Number
y at the of the
/decreas of the
Properties of Share end of Non-res
Shareholder name e in the restricte Status of the
shareholder proportion % the tricted Quantity
reportin d shares shares
reportin shares
g period held
g period held
Domestic Non-
Union Holdings 43,141, 43,141,
State-owned legal 25.51% 0 0
Co., Ltd. 032 032
person
STYLE-SUCCES Foreign 24,466, 24,466,
14.46% 0 0
S LIMITED shareholder 029 029
Shenzhen Textile
State-owned 9,233,3 -310,00 9,233,3
(Group)Holdings 5.46% 0
Legal person 94 0 94
Ltd
Rich Crown
Foreign 6,114,55 6,114,55
Investment Co., 3.62% 0 0
shareholder 6 6
Ltd.
Union Domestic Non-
5,821,0 5,821,0
Development State-owned legal 3.44% 0 0
89 89
Group Co., Ltd. person
Liuzhou Jiali Domestic Non- 2.49% 4,220,0 +951,30 0 4,220,0
41
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Real estate legal person 00 0 00
Development State-owned legal
Co., ltd. person
Foreign Natural 2,039,6 +163,10 2,039,6
Zeng Ying 1.21% 0
person 00 0 00
Liuzhou
Domestic Non-
Ruiheng 1,710,0 +330,00 1,710,0
State-owned legal 1.01% 0
Mechatronics 00 0 00
person
Co., Ltd.
Shing Ying Foreign Natural 1,534,9 1,534,9
0.91% -15,400 0
Chieh person 62 62
Foreign Natural
Zheng Lian 0.55% 930,000 +14,000 0 930,000
person
Strategy investors or general
legal person becomes top 10
N/A
shareholders due to rights
issued (if applicable)
Explanation on associated The controlling shareholder of the above-mentioned largest shareholder
relationship among the Shenzhen Union Holdings Ltd.and fourth shareholder Rich Crown Investment
aforesaid shareholders Co., Ltd.. Is Union Development Group Ltd.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end Share type
Name of the shareholder
of the reporting period (Note 4) Share type Quantity
RMB Common
Union Holdings Co., Ltd. 43,141,032 43,141,032
shares
Foreign shares
placed in
STYLE-SUCCESS LIMITED 24,466,029 24,466,029
domestic
exchange
Shenzhen Textile RMB Common
9,233,394 9,233,394
(Group)Holdings Ltd shares
Foreign shares
Rich Crown Investment Co., placed in
6,114,556 6,114,556
Ltd. domestic
exchange
Union Development Group RMB Common
5,821,089 5,821,089
Co., Ltd. shares
Liuzhou Jiali Real estate RMB Common
4,220,000 4,220,000
Development Co., ltd. shares
42
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Foreign shares
placed in
Zeng Ying 2,039,600 2,039,600
domestic
exchange
Liuzhou Ruiheng RMB Common
1,710,000 1,710,000
Mechatronics Co., Ltd. shares
Foreign shares
placed in
Shing Ying Chieh 1,534,962 1,534,962
domestic
exchange
Foreign shares
placed in
Zheng Lian 930,000 930,000
domestic
exchange
Explanation on associated
relationship or consistent
action among the top 10
shareholders of non-restricted The controlling shareholder of the above-mentioned largest shareholder
negotiable shares and that Shenzhen Union Holdings Ltd. and fourth shareholder Rich Crown Investment
between the top 10 Co., Ltd.. Is Union Development Group Ltd.
shareholders of non-restricted
negotiable shares and top 10
shareholders
Notes to the shareholders
involved in financing securities N/A
(if any)
2.Controlling shareholder
Corporation
Legal Date ofof
Name of the Controlling Principal business
representati incorpora Organization code Registered Capital
shareholder activities
ve/Leader tion
Production of and
dealing in various
fabrics, garments
Shenzhen Union Septembe chemical fibers and
Dong
Holdings Co., Ltd. r11, 19247150-0 1123.8877 million textile equipment,
Binggen
1989 domestic commerce,
material supply and
marketing
(excluding
43
深圳中冠纺织印染股份有限公司 2012 年度报告全文
monopolized
commodities),
management of
self-owned
properties,
processing with
imported materials
and designs, internal
introduction and
foreign cooperation,
assembling with
imported spare parts
and cooperation in
compensation trade.
real estate
development and
sales within the
scope of land use
right legally
obtained, property
management and
lease services and
sales of automobiles
（not including
Limit term）.
Operating results,
At the end of 2012, the total assets and net profit of Union Holdings Co., Ltd. were
financial position, cash
RMB 4265.71 million and RMB 86.33 million respectively. The company will develop
flow and future
real estate business as its main operation as ever.
development strategy
Equity of other
domestic/foreign listed
company controlled by N/A
actual controller in
reporting period
Change of the actual controller in the reporting period
□Applicable √Not applicable
3．Information about the controlling shareholder of the Company
Corporation
Legal Date of
Name of the controlling
representati establish Institution code Registered capital Main business
shareholder
ve/person in ment
44
深圳中冠纺织印染股份有限公司 2012 年度报告全文
charge
Production and sales
of chemical, textile
and garment
products (the license
of product site is
subject to separate
application), import
and export business,
contracting of
project construction,
import and export of
necessary
engineering
Union Development Dong August equipment and
19033795-7 90.61 million
Group Co., Ltd. Binggen 23, 1983 materials, export of
labor, external
investment,
technical consulting
services, real estate
development and
sales within the
scope of land use
right legally
obtained, property
management and
lease services and
sales of automobiles
(including cars).
Operating results, At the end of 2011, the total assets, shareholders' equity and net profit of Union Developing Group
45
深圳中冠纺织印染股份有限公司 2012 年度报告全文
financial position, cash Co., Ltd. were RMB 7295.02 million, RMB 3203.34 million and RMB 63.47 million respectively.
flow and future The future development strategy is to become an excellent operator of city compound development.
development strategy
Equity of other
domestic/foreign listed
Union Holdings Co., Ltd.（000036）Quantity of shares held 352.0493 million，Shareholding
company controlled by
ratio31.32%.
actual controller in
reporting period
Change of the actual controller in the reporting period
□Applicable √Not applicable
Block Diagram of the ownership and control relations between the company and the actual controller
Hangzhou Jinjiang Group Co.,
Ltd.
20.89%
Union Development Group Co., Ltd.
31.32% 99.99%
3.44%
Union Holdings Co., Ltd. Rich Crown Investment
Co., Ltd.
25.51% 3.62%
Shenzhen Victor Onward Textile Industrial Co., Ltd.
46
深圳中冠纺织印染股份有限公司 2012 年度报告全文
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Other corporate shareholder holding over 10% of the Company‘s shares
Legal
Date of Principal businesses
represent
Corporate shareholder incorpora Organization code Registered capital or management
actives/Lea
tion activities
der
Miss Amy Novembe
Style-Success Ltd. Investment
Wang r4, 1999
IV. Share Acquisition plan proposed or implemented by the Company‘s Shareholder and its concerted actor in the
reporting period
Date of
disclosing the
Proportion of Date of initial
Name of the Quantity of the Proportion of Quantity of end of
the shares disclosure of
shareholder/co shares to be the shares to be shares actually implementatio
actually the shares to be
ncerted actor acquired acquired (%) acquired n of the share
acquired (%) acquired
acquisition
plan
N/A
Notice to other conditions
VII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Number Volume Volume Number
of shares of shares of shares of shares
acquired acquired sold held at
Starting Expiry
Office at end of during during end of
Name Positions Sex Age date of date of
status the the the the
tenure tenure
reporting reporting reporting reporting
period(sh period period(sh period(sh
ares) (shares) ares) ares)
N/A 0 0 0 0
Total -- -- -- -- -- -- 0 0 0 0
47
深圳中冠纺织印染股份有限公司 2012 年度报告全文
II. Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Board chairman:
Hu Yongfeng, male, was born in July 1962,with bachelor degree, Senior Engineer，graduated from Southeast
Textile Technology Institute in 1983. He is ever took the post of section chief of state textile headquarters general
office, He now serves as Vice President of Union Development Group Co., Ltd. and Vice chairman of the Board
of Union Holdings Co., Ltd., He served as chairman of the Board of the Company from Oct., 2000 till now. He
served as General manager of the Company since April 2008.
Vice Chairman of the Board :
Ding Yue, male, was born in March 1958, with bachelor degree, Senior Economist,
graduated from Lanzhou University in 1983. He took the turns of deputy section chief of personnel labor
department of Textile Technology Department, section chief of personnel labor department of textile headquarters,
deputy director of personnel labor department of textile headquarters and concurrently director of talents exchange
center of Textile Headquarters and chairman of the Board of Union Holdings Co., Ltd., He now serves as Vice
President of Union Development Group Co., Ltd. and convener of the supervisory committee of Union Holdings
Co., Ltd., He served as director of the Company from June 2002 till now. He served as Vice Chainman board of
the Company since April 18, 2008.
Vice Chairman of the Board :
Shu Yibo, Female，was born in February 1972, who is studying for EMBA. ,ever took the post of Manager of Sale
of Manqi Industry Co., Ltd., Director of Manqi Investment Development Co., Ltd..He is now in charge of
Chairman of the board , General Manager of Manqi Industry Co., Ltd.,Chairman of board of Manqi Investment
Development Co., Ltd.She served as director of the Company since April 18, 2008, He served as Vice Chairman
of board of the Company July 29, 2008.
Director：
Zhang Mei, Female, was born in February 1975, is a certified public accountant with Master's degree, She once
worked at Financial Division of China Garment Corporation. she now serves as Deputy manager of Finance Dept
of Union Development Group Co., Ltd, She served as Director of the Company since April 18, 2008.
Feng Junbin, male, was born in July 1962, is a junior college graduate. He has served successively as special
enterprise controller of Dapu Financial Bureau of Guangdong Province, deputy division chief of Fengshun
Financial Bureau and director of Audit Dept, Manager of Management Dept , He now serves as Deputy General
Manager, Supervisor of Shenzhen Textile (Holdings) Co., Ltd. He now serves as Deputy General Manager of
Shenzhen Textile (Holdings) Co., Ltd, He served as director of the Company April 18, 2008.
Zhang Jinliang, male, was born in May 1962, Senior Accountant, a senior accountant with bachelor degree, was
born in May 1962. He ever took the post of senior section chief of Shenyang Dispatch and Shenzhen Dispatch of
Audit Administration, manager of operation department of Shenzhen Property Union Holdings Co., Ltd., deputy
director and director of auditing office of Union Development Group Co., Ltd., deputy general manager of
Shenzhen Union Holdings Co., Ltd. and general manager of Yuyao Union Textile Co., Ltd., and he held the
position of deputy general manager of the Company since December 2004, He served as Board secretary of the
company since December 27, 2010, He served as Director of the Company since October 18, 2011.
Independent directors:
48
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Jin Ligang, male, was born in August 1959, graduated from Beijing Foreign Trade College in 1980. From 1981 to
1983, he majored in international economy at Rome LUISS Private University. He once worked at North America
and Oceania Department of Third Bureau of Ministry of Foreign Trade and Economic Cooperation, who was in
charge of U.S.-related affairs. He has served as assistant of board chairman and president and office director of
West Europe China Trade Center (Hamburg, West Germany), deputy chief and chief of America and Oceania
Department of Ministry of Foreign Trade and Economic Cooperation, business counselor of Economic and
Commercial Department of Embassy in U.S. and business counselor of Economic and Business Office of
Consulate General in New York in succession. He now serves as board chairman of American Stone Bridge
International Company and director of Beijing Decision Making & Consultation Center. He served as Independent
directors of the company since April 18, 2008.
Shen Songqin, male, was born in January 1957, has doctor's degree. In 1980, he graduated from Hangzhou
University and worked there after graduation. He studied for Master's degree at Hangzhou University from 1985
and obtained the degree of master of Arts in 1988. He studied for doctor's degree from 1995 and obtained the
degree of doctor of literature in 1998. His dissertation was appraised "Excellent Dissertation for Doctor's Degree
in China in 2000". He now is a professor, doctor tutor and deputy dean of Chinese Language Department of
Zhejiang University. In 2006, he was appraised as Qianjiang Scholor of Zhejiang Province (specially engaged
professor). In 2007, he was appraised as Middle-aged/Young Expert with Outstanding Contribution in Zhejiang
Province". He served as independent director of the Company since April 18, 2008.
Chen Jinmei, female, born in June 1952, is a senior accountant of professor level with master's degree. She studied
in Hangzhou Electronic Industry College, Party School of Zhejiang Provincial Party Committee, Macao Science
and Technology University and Zhejiang University in succession. She once served as director general and
secretary of Party committee of Financial Bureau and Local Taxation Bureau of Hangzhou, a member of
Hangzhou municipal Party committee and a NPC deputy of Hangzhou and Zhejiang Province. She has now
retired. She served as Independent director of the Company since August 31, 2012.
Wang Tianguang, male, Was born in May 1973, is a certified public accountant. He graduated from Economic
Management School of Qinghua University. He once served as chief staff of Listed Company Supervision
Division of Shenzhen Securities Regulatory Bureau, general manager of Shenzhen Investment Banking Dept. of
Yinhe Securities. He now serves as General Manager of Southwest securities Co., Ltd, Investment Bank, He
served as Independent direstor of the company since April 18, 2008.
Due to job changes, proffered the company's board of directors his resignation on February 27, 2012
Supervisors:
Dong Binggen, male, was born in July 1949, an engineer, with bachelor degree, graduated from East China Textile
Technology Institute in 1977. He ever took the post of deputy president of Zhejiang Silk Technology Institute,
general manager of China Clothes Headquarters and board chairperson of China Clothes Association, etc.; he is
now in charge of secretary of Party Committee, chairman of the board and general manager of Shenzhen Union
Development Group Co., Ltd. and chairman of the Board of Shenzhen Union Holdings Co., Ltd., He served as
Chairman and held the position of Chairman of the Supervisory Committee of the Company from June 2002 till
now.
Supervisors:
Huang Xiaoping, female, Was born in January 1957, an Economist, is a junior college graduate, once served as
policewoman of Public Security Bureau of Dan County, Hainan, chief staff and deputy director of office, deputy
49
深圳中冠纺织印染股份有限公司 2012 年度报告全文
chief and chief of Personnel & Labor Division and office director of China Garment Industry Corporation, vice
chairman of China Garment Association. She now serves as deputy secretary of Party committee and secretary of
discipline committee of Union Development Group Co., Ltd. Co., Ltd. she served as Supervisor of the company
since April 18, 2008.
Pan Weichao, male, Was born in August 1951, is a junior college graduate., has worked at the Company since
April 1984. He has served successively as vice chairman of labor union, Manager of General Affairs Dept. and
chairman of labor union. He now serves as Manager of affairs Dept of the Company, he has served as
employee-representing supervisor of the Company Since April 18, 2008.
Secretary of the Board of Directors:
Zhang Jinliang (Refer to Director column for details)
Manager of Finance Dept:
Ren Changzheng, male, was born in August 1975, In 1997,he graduated from Guizhou Finance University, once
worked at Financial Division of Guizhou Yunman Aircraft Factory and Planning and Finance Division of Union
Development Group Co., Ltd. He now serves as Manager of Finance Dept of the Company.
Office taking in shareholder companies
√Applicable □Not applicable
Titles Does he /she
Names of the engaged in Sharing date receive
Expiry date of
persons in Names of the shareholders the of office remuneration or
office term
office shareholder term allowance from
s the shareholder
Secretary
of Party
committee,
Dong chairman May 18,
Union Development Group Co., Ltd. May 17, 2015 Yes
Binggen of board of 2012
directors
and
President
Dong Board June 30,
Union Holdings Co., Ltd. June 29, 2013 No
Binggen chairman 2010
Vice May 28,
Ding Yue Union Development Group Co., Ltd. May 17, 2015 Yes
President 2012
Convener
of the
June 30,
Ding Yue Union Holdings Co., Ltd. Supervisor June 29, 2013 No
2010
y
Committee
Vice
Hu Yongfeng Union Development Group Co., Ltd. May 18,2013 May 17, 2015 Yes
President
50
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Vice Board June 30,
Hu Yongfeng Union Holdings Co., Ltd. June 29, 2013 No
chairman 2010
Secretary
of Party
Huang committee, October 1,
Union Development Group Co., Ltd. Yes
Xiaoping secretary of 2008
discipline
committee
Huang June 30,
Union Holdings Co., Ltd. Director June 29, 2013 No
Xiaoping 2010
Deputy
Shenzhen Textile(Holding) Co.,
Feng Junbin general May 4, 2010 May 3, 2013 Yes
Ltd.
manager
Deputy
manager of February 1,
Zhang Mei Union Development Group Co., Ltd. Ye
Finance 2011
Dept.
June 30,
Zhang Mei Union Holdings Co., Ltd. Director June 29, 2013 No
2010
Notes N/A
Offices taken in other organizations
√Applicable □Not applicable
Whether
receiving
Office term Office term
Name Name of other units Position remuneration
start from ended
from other units
or not
Manqi Investment Development Co., General
Shu Yibo July 1, 2002 Yes
Ltd Manager
STONEBRIDGE Enterprise Board January 1,
Jin Ligang Yes
Consultant （Beijing）Co., Ltd. chairman 2008
Shen
Hangzhou Normal University President June 1, 2009 Yes
Songqin
Notes N/A
III. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
51
深圳中冠纺织印染股份有限公司 2012 年度报告全文
The remuneration appraisal committee of the board of directors of the Company proposed remuneration
standards according to the responsibilities, work scope and importance of directors, supervisors and senior
executives, the earnings of the Company for the current year and the remuneration level of relevant post and
submitted it to the board of directors for approval. After approval, the remuneration was paid on monthly basis.
The remuneration of independent directors is subject to approval by the shareholders' meeting.
Remuneration to directors, supervisors and senior executives in the reporting period
Unit：RMB‘0000
Remuneratio
Total Total
n actually
remuneration remuneration
receives at
Name Positions Sex Age Office status received received
the end of
from the from the
the reporting
Company shareholder
period
Board
chairman/Ge
Hu Yongfeng Male 50 In Office 38 0 38
neral
Manager
Vice Board
Ding Yue Male 54 In office 0
chairman
Vice Board
Shu Yibo Female 40 In Office 0
chairman
Zhang Mei Director Female 37 In office 0
Feng Junbin Director Male 50 In Office 0
Zhang Director ，
Male 50 In office 0 0 0
Jinliang Deputy GM
Independent
Jin Ligang Male 53 In Office 5 0 5
director
Independent
She Songqin Male 55 In office 5 0 5
director
Independent
Chen Jinmei Female 60 In office 2.5 0 2.5
director
Wang Independent
Male 39 Leave office 2.5 0 2.5
Tianguang director
Chairman of
Dong the
Male 63 In office 0
Binggang supervisory
committee
Huang
Supervisor Female 55 In office 0
Xiaoping
52
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Pan Weichao Supervisor Male 61 In office 11 0 11
Zhang Board
Male 50 In office 20 0 20
Jinliang secretary
Ren Manager of
Male 37 In office 13 0 13
Changzheng Finance Dept
Total -- -- -- -- 97 0 97
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
IV. Retirement and dismissal of Directors, Supervisors and senior Executives
Names Titles Types Date Causes
Independent February 27,
Wang Tianguang Dimission Resign from the Board of Director for personal reasons
director 2012
V. Change of the Core Team of Technology of Key technical personnel (Other than director, supervisor or senior
executive) in the Reporting Period
There is no change of the Core Team of Technology of Key technical personnel (Other than director, supervisor
or senior executive)in the Reporting Period
VI. Particulars about employees.
Categories of professions Number of persons Proportion
Finance & Accounting 3 11%
Executive 4 15%
Logistics 20 74%
Total 27 100%
Masters‘ degree 1 4%
Bachelors‘ degree 3 11%
College diploma 3 11%
High school and below 20 74%
Total 27 100%
As of December 31, 2012, The Company should bear expenses for 0 retired employees.
53
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（1） The figure of professional composition
（2） The figure of education background of the professional composition
54
深圳中冠纺织印染股份有限公司 2012 年度报告全文
VIII. Administrative structure
I. General situation
The Company has constantly improved its corporate governance structure，established modern enterprise
system and standardized its operation strictly according to the requirements of the Company Law，
Securities Law，Stock Listing Rules of Shenzhen Stock Exchange, Guidelines for Governance of Listed
Companies and relevant laws and regulations of CSRC. In accordance with relevant regulations on special
activities of governance of listed companies and requirements of CSRC Shenzhen Securities
Administration, Establish and perfect the internal control management and system, sustainable
development governance activities, To further standardize the operation of the Company, improve the
management of the Company.
In the report period, the board of directors of the Company revised the Articles of Association of the
Company, Rules of Procedure of Shareholders‘General Meeting, Rules of Procedure of the Board of
Directors, Rules of Procedure of the Supervisory Committee, Detailed Working Rules of General Manager,
Regulations on Management of Person in Charge of Financial Affairs, Regulations on Significant
Investment and Financial Decision and Regulations on Financial Management to improve planning and
governance and strengthen risk control. The said regulations were examined and adopted by the board of
directors.
In the report period, The board of directors of the Company further improved the decision making and
supervision mechanism for reasonable, continuous and stable dividend distribution and formulated the
Profit Distribution Policy and Planning for Return to Shareholders in the Next Three Years. According to
the forecast of the Company's operating status and the fund demand plan for project investment and based
on fully considering the interests of shareholders, the planning reasonably balanced the relationship
between using profit for enterprise development and giving return to shareholders and determined
reasonable profit distribution plan. Meanwhile, the Articles of Association of the Company define the
details of the profit distribution policy, especially cash dividend distribution policy.
In the report period, The Company further increased information transparency and properly carried out
publicity work for protection of investors. It timely answered the questions of investors and communicated
with medium and small investors by making use of telephone, email, especially the platform for
communication with investors set up by Shenzhen Stock Exchange to let them know itself better and
improve its information transparency.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and
the relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC.
For the standardization of the Registration and Management System on Learners of Insider Information of
Listed Company, the company has held the special meeting of the Sixth Board of Directors and made full
revision on ―Management System on Learners of Inside Information‖ on June 28, 2012 in accordance with
the requirements of the ―Provisions on Listed Company Formulating Management System on Learners of
55
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Insider Information‖ and combined with the actual situation of the company. Thus, the company has further
clarified the use scope, the data filing procedures and the responsibility claim of the non-public information.
In the Report period, According to the requirements of the ―Registration and Management System on
Learners of Insider Information‖, the company has well performed the management and the safe delivery of
all the information, and completely put into and recorded the report, the transmission, the preparation, the
review and the disclosure of all the learner lists of insider information before the public disclosure of the
insider information. In the Report period, The company has not found the situation that the relevant
personnel is engaged in the insider transaction by using the insider information and suggest others to
conduct the transaction with the insider information, there is no the situation that the insider information is
disclosed, and not exists the situation that the company shall be taken a crackdown and ordered for
rectification by the regulatory department because of the implementation of the Registration System on
Learners of Insider Information or the suspicion of insider transaction.
II. Annual General Meeting and Extraordinary Shareholders‘ Meetings in the Reporting Period
1.Annual General Meeting
Description of
Sessions Meeting Date Resolution Disclosure date Disclosure index
proposals
(1) The Work
Report of the
Board of
Directors for
2011;
(2) The Work
Report of the
supervisory
Announcement
Committee for
No. 2012-0613)
2011;
Securities Times ,
（3）、Annual Hong Kong
2011 Shareholders‘ Report for 2011 Adoption
May 15, 2012 May 16, 2012 Commercial
general meeting and its summary; Daily and
（4）、The www.cninfo.com.
Preplan for Profit cn on May 16,
Distribution for 2012
2011（5）、The
Proposal for
Deregistering the
Printing and
Dyeing Mill of
Shenzhen Victor
Onward Textile
Industrial Co.,
56
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Ltd.
2.Extraordinary Shareholders‘ Meetings
Description of
Sessions Meeting Date Resolution Disclosure date Disclosure index
proposals
(1) The profit
distribution
policy and
planning for
return to
shareholders in
the next three
years Announcement
(2) The No. 2012-0620)
proposal Securities Times ,
The first provisional
concerning the Hong Kong
shareholders‘
August 31, 2012 revision of the Adoption September 1, 2012 Commercial
General meeting in
Articles of Daily and
2012
Association of the www.cninfo.com.
Company cn on September
(3) The 1, 2012
proposal for
electing the
candidates for
independent
directors of the
board of directors
III. Duty performance of independent Directors
1. Attendance of Board Meetings and General Meetings
Independent Directors‘ Attendance at Board Meetings
Number of
Failure to
Board Number of
personally
meetings Number of meetings Number of
Independent Number of attend board
necessary to spot attended by attendances by
Directors absence meetings
be attended in attendances Communicatio representative
successively
the reporting n
twice (Yes/No)
period
Jin Ligang 4 1 3 0 0 No
57
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Shen Songqin 4 1 3 0 0 No
Wang Tianguang 3 1 2 0 0 No
Chen Jinmei 1 0 1 0 0 No
Number of general meetings
attended by independent directors 1
as non-voting delegates
Notes to failure to personally attend Board Meetings Successively Twice
N/A
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director‘s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director‘s advice to the Company.
In the report period, the independent directors of the Company attended the meetings of the board of
directors and all special committees on time, expressed independent opinions on the proposals of the board
of directors. They gave many opinions and suggestions during meetings and adjournment and the Company
adopted all of them.
IV. Duty Performance of Special Committees under the Board of Directors in the Reporting
Period
The board of directors of the Company has special committees including audit committee,
remuneration and appraisal committee, strategy committee and nomination committee. According to the
scope of authority specified in the working rules for them, the committees conducted study and put forward
opinions and suggestions for reference by the board of directors for decision making.
(I) The duty performance of the audit committee of the board of directors
In the report period, the chairman of the audit committee of the board of directors of the Company
resigned for personal reason. The 4th meeting of the sixth board of directors of the Company held on August
14, 2012 elected a new chairman. An independent director engaged in professional accounting acted as the
new chairman.
According to relevant regulations of CSRC, the audit committee of the board of directors of the Company
did the following work during the preparation of the annual report of the Company for 2012:
1. On December 24 , 2012, the audit committee of the Company examined the working plan for audit of
financial report for 2012, listened to Analysis of Economic Activities of Shenzhen Victor Onward in 2012
58
深圳中冠纺织印染股份有限公司 2012 年度报告全文
made by Finance Dept. of the Company and approved the said working plan.
2. On January 19, 2013, the audit committee of the board of directors examined the financial and accounting
statements for 2012 provided by the Company and expressed the following opinions: The financial and
accounting statements for 2012 prepared by the Company basically reflected the Company's asset condition
and operating results. The audit committee agreed to carrying out audit of annual financial report on this
basis, requested the Finance Dept. of the Company to actively provide cooperation and coordination in
respect of this audit, strengthen communication and connection with the audit committee and timely report
the problems found in the process of audit and the progress of audit to the audit committee.
3. On March 11 , 2013, the audit committee of the board of directors examined the preliminary audit report
issued by the certified public accountants for annual audit and held the following opinions after looking up
partial working papers and verifying relevant facts: This preliminary examination report was prepared
according to new accounting standards and basically gave a truthful and fair view of the financial position of
the Company as at December 31, 2012 and its operating results and cash flow for 2012 in all major aspects.
The audit committee had no objection to the preliminary examination report issued by the certified public
accountants for annual audit.
4. On April 12 , 2013, the audit committee of the board of directors examined the Company's auditor's report
for 2012 issued by Shine Wing Certified Public Accountants, agreed to the result of audit of the Company's
financial statements for 2012 conducted by the certified public accountants and to submitting this financial
audit report to the board of directors of the Company for examination. The audit committee held the
following opinions on the summarization report of certified public accountants on the audit work for 2012:
Shine Wing Certified Public Accountants carried out and completed the audit of the Company for 2012
strictly according to the provisions of audit laws, regulations and standards. The audit time was adequate
and the auditing personnel have high professional quality, strong practicing ability and sharp risk awareness.
The auditor's report issued by it reflected the financial position, operating results and cash flow of the
Company for 2012 in all aspects and its audit conclusion truly reflected the actual conditions of the
Company.
5. As Credit Shine Wing Certified Public Accountants . originally engaged by the Company as annual
auditing body served the Company for a long time (7 years in succession from 2006 to 2012), the Company
planned to no longer renew the engagement of this company as the auditing body for 2013. The Company
expressed heartfelt gratitude to Credit Shine Wing Certified Public Accountants for its hard work.
According to the provisions of the Company's Work System of Choosing and Engaging Certified Public
Accountants, the audit committee agreed to submitting the proposal for engaging Dahua Certified Public
Accountants (LLP) as the auditing body for 2013 annual audit and internal control to the board of directors
and shareholders' general meeting. The annual auditing fee is RMB 0.55 million (Including traveling
expenses).
(II) The duty performance of the nomination committee of the board of directors
On August 10, 2012, the nomination committee held a meeting, adopted the Proposal for Changing
Independent Directors and submitted the proposal to the 4th meeting of the sixth board of directors of the
Company for examination.
V. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the
59
深圳中冠纺织印染股份有限公司 2012 年度报告全文
reporting period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VI. Independence and Completeness in business, personnel , assets, organization and finance
The Company is independent from its controlling shareholder in respect of personnel, assets, finance,
organization and business. The particulars are as follows:
1. Business: The Company has complete business and the ability of independent operation. It is completely
independent from its controlling shareholder in respect of business.
2. Personnel: The Company is independent in respect of labor, personnel and wage management. Senior
executives received remuneration from the Company, who neither held position at nor received
remuneration from the controlling shareholder.
3. Assets: The Company has complete assets. Its property rights are definite and not related to its
controlling shareholder and other shareholders.
4. Organization: The Company established an organizational structure that is completely independent of its
controlling shareholder. The board of directors, the supervisory committee and internal organs of the
Company are able to operate independently.
5. Finance: The Company has independent finance. It set up independent finance department and
established independent financial accounting system. It has standardized and independent financial and
accounting system and financial control system applicable to branches and subsidiaries. The Company
independently pays taxes according to law. It opened accounts with banks independently. The Company
and its controlling shareholder do not use the same bank account.
VII. Horiontal Competitions
1. There not exists the inter-industry competition between the company and the controlling shareholder &
its other controlled enterprises.
2. There not exists the inter-industry operation between the company and the subordinate enterprise of
actual controller.
3. Currently, the main affiliated transaction between the company and the actual controller is house
tenancy, and the affiliated transaction follows the fair principle of the market. So, there is no the
situation that the authenticity of the company‘s operation results is affected.
VIII. Assessment and incentive Mechanism for Senior executives
We appraise the performance of executives according to relevant index and criterions, the results of
performance appraisal are recorded in the archives of executives, and are linked to the compensations and
hiring of executives.
60
深圳中冠纺织印染股份有限公司 2012 年度报告全文
IX. Internal Control
I. Internal control Construction
According to the requirements of the Notice of Properly Carrying Out the Work Concerning Experiments
of Standardization of Internal Control of Listed Companies in Shenzhen issued by Shenzhen Securities
Regulatory Bureau and relevant provisions of Fundamental Norms of Internal Control of Enterprises and
Supporting Guidelines for Internal Control of Enterprises, the Company formulated the plan for
implementation of internal control norms and started the construction of comprehensive internal control
system to further strengthen the construction of the Company's standardized internal control system. In the
report period, the Company formulated the Collection of Internal Control Documents of Shenzhen Victor
Onward Textile Industrial Co., Ltd. and issued it for implementation, which was examined and adopted at
a special meeting of the sixth board of directors of the Company. The strict implementation of relevant
regulations on internal control facilitated the Company's standardized operation and quickened its healthy
development and protected investors' lawful rights and interests.
II. Statement of the Board of directors on the Responsibility of internal control
The Internal control is implemented by the Board of Directors, the Supervisory Committee, Management
and all employees of the company aiming at the achievement of control target processes. The Board of
Directors complies with the national laws and regulations and the requirements of securities regulatory
authorities to constantly improve all the rules and regulations of the company‘s internal control, promote
the establishment, perfection and effective operation of the company‘s internal control, and assume
important responsibility for the integrity and rationality of all construction of internal control system. Also,
the company senior managers bear the primary responsibility for the implementation of the internal control
system.
III.Basis for establishment of internal control of the Financial Report
The company, regarding the related laws and regulations of ―Accounting Law of the People‘s Republic of
China‖, ―Fundamental Norms for Enterprise Internal Control‖ and ―Application Guidelines of Enterprise
Internal Control (No.14) — Financial Report‖ as the basis of establishment of the internal control of
financial report for the company, implements the internal control for the standardization of preparing the
financial report, submitting and analysis of use of control processes, improvement the authorization and
approval system on all aspects of financial report, establishment of daily information verification system,
full use of accounting information technology, accounting treatment of determination of the major issues,
verification of debt of inventory assets, establishment and implementation of calculation and budget and
other key aspects, in order to ensure the legality, compliance, trueness and integrity.
IV. Self-assessment report of the internal control
About the significant Defects of the internal control found in the internal control self-assessment report in the
reporting period
61
深圳中冠纺织印染股份有限公司 2012 年度报告全文
No significant defect of internal control was found in the reporting period
Date of disclosing the internal
control self-assessment report, April 23, 2013
full text
Index of disclosing the
internal control Refer to Announcement that disclosed on www.cninfo.com.cn on April
self-assessment report, full 23, 2013.
text
V.Internal control audit report
√Applicable □Not applicable
Review opinions in the internal control audit report
We believe that, Shenzhen Victor Onward Textile Industrial Co., Ltd. maintained efficient internal control of
financial reports in all significant aspects according to ― Basic Standards of Corporate Internal Control‖ and
relevant regulations on December 31, 2012
Date of disclosing the internal
April 19, 2013
control audit report, full text
Index of disclosing the
internal control audit report, XYZH/2012SZA1024
full text
Review opinions in the internal control audit report
Has the CPAs issued a qualified auditor‘s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the
Board of Directors
√Yes □No
VI. Establishment and implementation of the Responsibility investigation system for serious
Errors in the Annual Report
In the report period, The company examine itself according to―Responsibility Claim System on Significant
Error in Information Disclosure of Annual Report‖,there are no the occurrence of serious accounting errors
correction, grave omission of information supplements.
62
深圳中冠纺织印染股份有限公司 2012 年度报告全文
X. Financial Report
I. Audit report
Issued unqualified auditor's report with paragraph of
Type of audit opinion
emphasized matters
Date for signing the auditor‘s report April 19, 2013
Name of audit firm Shinewing Certified Public Accountants
Document No. of the auditor‘s report XYZH/2012SZA1044
Auditors‘ Report
XYZH/2012SZA1044
To All shareholders of Shenzhen Victor onward Textile Industrial Co., Ltd.：
We audited accompanying financial statements of Shenzhen Victor Onward Textile Industrial Co.,
Ltd . (hereinafter referred to as "the Company"), including Consolidation and parent Company balance
sheet on December 31, 2012, Consolidation and parent Company profit statement, Consolidation and
parent Company cash flow statement for the year 2012 and Consolidation and parent Company statement
of change in shareholders' equity and the notes to financial statements.
I. Management‘s responsibility for the financial statements
The Management is responsible for the preparation and the true and fair presentation of these
financial statements in accordance with Accounting Standard for Business Enterprises and China
Accounting System For Business Enterprises. These responsibilities include: (i) designing, implementing
and maintaining internal control relevant to the preparation and the true and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error;(ii) selecting and
applying appropriate accounting policies; (iii) and making accounting estimates that are reasonable in the
circumstances.
II. Auditor‘s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants.
Those standards require that we comply with ethical requirements and plan and perform the audit to
63
深圳中冠纺织印染股份有限公司 2012 年度报告全文
obtain reasonable assurance as to whether the financial statements free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor‘s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity‘s preparation
and true and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the propose of expressing an opinion on the effectiveness of
the entity‘s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
III. Auditing opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Company
as of 31 December 2012 and its financial performance and cash flows for the year then ended in
accordance with the Accounting Standards for Business Enterprises and China Accounting System for
Business Enterprises.
IV. Matters emphasized
We remind the users of financial statements to pay attention to the fact that the Company stopped
production and dismissed most of workers since March 2007. 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 11of Financial Statement, but its
sustainable operation ability is still uncertain. This paragraph does not affect audit opinions that have
been given.
Shine Wing Certified public Accountants
C.P.A：
(LLP)
Zhang WeiJian
C.P.A：
Xia Wei
Beijing China April 19,2013
64
深圳中冠纺织印染股份有限公司 2012 年度报告全文
II. Financial Statements
Statement in Financial Notes are carried in RMB/CNY
1.Consolidated Balance sheet
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit：RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 52,227,262.00 53,399,316.00
Settlement provision
Outgoing call loan
Trading financial assets 68,900.00
Bill receivable 1,500,000.00
Account receivable 744,712.00 744,712.00
Prepayments 176,443.00 27,548.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 38,414.00 38,378.00
Dividend receivable
Other account receivable 260,005.00 457,264.00
Repurchasing of financial assets
Inventories 101,536.00 162,457.00
Non-current asset due in 1 year
Other current asset
Total of current assets 55,048,372.00 54,898,575.00
Non-current assets：
Loans and payment on other‘s
65
深圳中冠纺织印染股份有限公司 2012 年度报告全文
behalf disbursed
Disposable financial asset 751,542.00 703,055.00
Expired investment in possess
Long-term receivable
Long term share equity
65,784,312.00 63,192,614.00
investment
Property investment 31,041,484.00 34,373,451.00
Fixed assets 12,416,459.00 12,070,406.00
Construction in progress
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,860,764.00 1,901,069.00
R & D petrol
Goodwill 5,099,624.00 5,099,624.00
Long-germ expenses to be
amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 116,954,185.00 117,340,219.00
Total of assets 172,002,557.00 172,238,794.00
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for
others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 3,239,571.00 3,239,221.00
Advance payment 2,778,488.00 2,775,476.00
Selling of repurchased financial
assets
Fees and commissions receivable
66
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Employees‘ wage payable 766,680.00 590,220.00
Tax payable 1,622,074.00 2,700,348.00
Interest payable
Dividend payable 1,215,946.00 1,215,946.00
Other account payable 32,227,317.00 31,167,220.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year
Other current liability 1,547,263.00 1,584,784.00
Total of current liability 43,397,339.00 43,273,215.00
Non-current liabilities：
Long-term loan 1,033,936.00 1,160,011.00
Bond payable
Long-term payable 8,488,953.00 8,486,859.00
Special payable
Expected liabilities
Differed income tax liability 766,660.00 808,335.00
Other non-current liabilities 836,792.00 836,792.00
Total of non-current liabilities 11,126,341.00 11,291,997.00
Total of liability 54,523,680.00 54,565,212.00
Owners‘ equity
Share capital 169,142,356.00 169,142,356.00
Capital reserves 39,790,784.00 39,742,473.00
Less：Shares in stock
Special reserves
Surplus reserves 26,704,791.00 26,704,791.00
Common risk provision
Undistributed profit -116,273,941.00 -116,026,610.00
Different of foreign currency
-511,599.00 -515,914.00
translation
Total of owner‘s equity belong to
118,852,391.00 119,047,096.00
the parent company
Minority shareholders‘ equity -1,373,514.00 -1,373,514.00
67
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Total of owners‘ equity 117,478,877.00 117,673,582.00
Total of liabilities and owners‘
172,002,557.00 172,238,794.00
equity
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
2. Balance sheet of Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit：RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 17,293,509.00 21,483,163.00
Trading financial assets 68,900.00
Bill receivable 1,500,000.00
Account receivable
Prepayments
Interest receivable
Dividend receivable
Other account receivable 72,818,786.00 72,999,033.00
Inventories 101,536.00 162,457.00
Non-current asset due in 1 year
Other current asset
Total of current assets 91,713,831.00 94,713,553.00
Non-current assets：
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity
36,788,953.00 36,788,953.00
investment
Property investment 5,060,748.00 5,397,921.00
Fixed assets 9,145,661.00 9,170,487.00
Construction in progress
68
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,860,764.00 1,901,069.00
R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset
Other non-current asset
Total of non-current assets 52,856,126.00 53,258,430.00
Total of assets 144,569,957.00 147,971,983.00
Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable 113,344.00 113,337.00
Advance payment 2,002,540.00 1,999,540.00
Employees‘ wage payable 735,970.00 559,510.00
Tax payable 573,074.00 1,617,284.00
Interest payable
Dividend payable
Other account payable 884,092.00 855,475.00
Non-current liability due in 1 year
Other current liability 1,547,263.00 1,544,249.00
Total of current liability 5,856,283.00 6,689,395.00
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 4,180,138.00 4,180,138.00
69
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Other non-current liabilities 836,792.00 836,792.00
Total of Non-current liabilities 5,016,930.00 5,016,930.00
Total of liability 10,873,213.00 11,706,325.00
Owners‘ equity
Share capital 169,142,356.00 169,142,356.00
Capital reserves 31,606,598.00 31,606,598.00
Less：Shares in stock
Special reserves
Surplus reserves 26,309,287.00 26,309,287.00
Provision of general risk
Undistributed profit -88,963,263.00 -86,396,616.00
Different of foreign currency
-4,398,234.00 -4,395,967.00
translation
Total of owners‘ equity 133,696,744.00 136,265,658.00
Total of liabilities and owners‘
144,569,957.00 147,971,983.00
equity
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
3.Consolidated Profit Statement
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I. Income from the key business 11,095,669.00 9,850,484.00
Incl：Business income 11,095,669.00 9,850,484.00
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 13,388,125.00 16,626,343.00
Incl：Business cost 5,413,356.00 4,269,140.00
Interest expense
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 487,000.00 447,517.00
Sales expense 295,678.00 282,627.00
Administrative expense 7,567,920.00 8,000,296.00
Financial expenses -444,174.00 316,201.00
Asset impairment loss 68,345.00 3,310,562.00
Add：Gains from change of fir
-25,480.00 -88,247.00
value （―-‖for loss）
Investment gain（―-‖for loss） 2,582,153.00 -10,602,528.00
Incl: investment gains from
2,576,108.00 -10,616,493.00
affiliates
Gains from currency exchange
（―-‖for loss）
III. Operational profit（―-‖for loss 264,217.00 -17,466,634.00
Add：Non-business income 29,498.00 8,308.00
Less：Non business expenses 582,915.00 8,088.00
Incl ： Loss from disposal of
non-current assets
IV.Total profit(―-‖for loss) -289,200.00 -17,466,414.00
Less：Income tax expenses -41,869.00 -42,902.00
V. Net profit（―-‖for net loss） -247,331.00 -17,423,512.00
Including: Net profit realized by
the entity taken over before the
takeover
Net profit attributable to the
-247,331.00 -17,361,593.00
owners of parent company
Minority shareholders‘ equity -61,919.00
VI. Earnings per share： -- --
（I）Basic earnings per share 0 -0.1
(II)Diluted earnings per share 0 -0.1
VII. Other comprehensive income 52,626.00 -6,520,810.00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
VIII. Total comprehensive income -194,705.00 -23,944,322.00
Total comprehensive income
attributable to the owner of the -194,705.00 -23,882,403.00
parent company
Total comprehensive income
0.00 -61,919.00
attributable minority shareholders
Enterprise combination under same controlling at the end of current period. the net profit for the enterprise
to be combined is 0.00.
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
4. Profit statement of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I. Income from the key business 2,834,664.00 1,529,480.00
Less：Business cost 1,585,723.00 478,671.00
Business tax and surcharge
Sales expense
Administrative expense 5,266,633.00 5,378,215.00
Financial expenses -2,253,351.00 -3,045,975.00
Asset impairment loss 61,132.00 4,731,272.00
Add：Gains from change of for
-25,480.00 -88,247.00
value （―-‖for loss）
Investment gain（―-‖for loss） 6,045.00 13,965.00
Incl: investment gains from
affiliates
II. Operational profit（―-‖for loss） -1,988,906.00 -6,086,985.00
Add：Non-business income 5,174.00
Less：Non- business expenses 582,915.00 522.00
Incl：Loss from disposal of
non-current assets
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
III.Total profit(―-‖for loss) -2,566,647.00 -6,087,507.00
Less：Income tax expenses 171,351.00
IV. Net profit（―-‖for net loss） -2,566,647.00 -6,258,858.00
V. Earnings per share： -- --
（I）Basic earnings per share -0.02 -0.04
(II)Diluted earnings per share -0.02 -0.04
VI. Other comprehensive income -2,268.00 -6,908,399.00
VII. Total comprehensive income -2,568,915.00 -13,167,257.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
5. Consolidated Cash flow statement
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
9,739,794.00 10,994,411.00
or rending of services
Net increase of customer deposits
and capital kept for brother
company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from
reinsurance business
Net increase of client deposit and
investment
Net increase of trade financial
73
深圳中冠纺织印染股份有限公司 2012 年度报告全文
asset disposal
Cash received as interest,
processing fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax returned
Other cash received from business
3,758,324.00 4,554,589.00
operation
Sub-total of cash inflow 13,498,118.00 15,549,000.00
Cash paid for purchasing of
1,460,804.00
merchandise and services
Net increase of client trade and
advance
Net increase of savings n central
bank and brother company
Cash paid for original contract
claim
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for
3,953,848.00 3,746,246.00
staffs
Taxes paid 2,149,524.00 2,079,732.00
Other cash paid for business
6,318,360.00 5,520,592.00
activities
Sub-total of cash outflow from
13,882,536.00 11,346,570.00
business activities
Cash flow generated by business
-384,418.00 4,202,430.00
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment gains 96,861.00
Net cash retrieved from disposal
30,000.00 9,890.00
of fixed assets, intangible assets,
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Net cash received from disposal
of subsidiaries or other
operational units
Sub-total of cash inflow due to
30,000.00 106,751.00
investment activities
Cash paid for construction of
fixed assets, intangible assets and 690,127.00 18,535.00
other long-term assets
Cash paid as investment
Net increase of loan against
pledge
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
activities
Sub-total of cash outflow due to
690,127.00 18,535.00
investment activities
Net cash flow generated by
-660,127.00 88,216.00
investment
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 126,343.00 129,462.00
Cash paid as dividend, profit, or
interests
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing
activities
Sub-total of cash outflow due to
126,343.00 129,462.00
financing activities
Net cash flow generated by
-126,343.00 -129,462.00
financing
IV. Influence of exchange rate
alternation on cash and cash -1,166.00 -2,548,481.00
equivalents
V.Net increase of cash and cash
-1,172,054.00 1,612,703.00
equivalents
Add: balance of cash and cash
equivalents at the beginning of 53,399,316.00 51,786,613.00
term
VI.Balance of cash and cash
52,227,262.00 53,399,316.00
equivalents at the end of term
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
6. Cash flow statement of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Unit ：RMB
Items Amount in this period Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
1,567,887.00 1,734,055.00
or rending of services
Tax returned
Other cash received from business
2,466,260.00 2,501,703.00
operation
Sub-total of cash inflow 4,034,147.00 4,235,758.00
Cash paid for purchasing of 1,460,804.00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
merchandise and services
Cash paid to staffs or paid for
2,557,382.00 2,335,711.00
staffs
Taxes paid 905,283.00 923,458.00
Other cash paid for business
3,330,336.00 2,087,780.00
activities
Sub-total of cash outflow from
8,253,805.00 5,346,949.00
business activities
Cash flow generated by business
-4,219,658.00 -1,111,191.00
operation, net
II.Cash flow generated by
investing
Cash received from investment
retrieving
Cash received as investment gains 96,861.00
Net cash retrieved from disposal
of fixed assets, intangible assets, 30,000.00 9,890.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Other cash receivable for
investment activities
Sub-total of cash inflow due to
30,000.00 106,751.00
investment activities
Cash paid for construction of
fixed assets, intangible assets and
other long-term assets
Cash paid as investment
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
activities
Sub-total of cash outflow due to
investment activities
Net cash flow generated by
30,000.00 106,751.00
investment
III.Cash flow generated by
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
financing
Cash received from absorbing
investment
Cash received as loans
Cash received from bond placing
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing
activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by
financing
IV. Influence of exchange rate
alternation on cash and cash 4.00 -1,089,583.00
equivalents
V.Net increase of cash and cash
-4,189,654.00 -2,094,023.00
equivalents
Add: balance of cash and cash
equivalents at the beginning of 21,483,163.00 23,577,186.00
term
VI.Balance of cash and cash
17,293,509.00 21,483,163.00
equivalents at the end of term
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
7. Consolidated Statement on Change in Owners‘ Equity
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Amount in this period
Unit：RMB
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Amount in this period
Owner‘s equity Attributable to the Parent Company
Minor
Items Less: Surplu Comm Total of
Capital Special Attribu sharehol
Share Shares s on risk owners‘
reserve ized table Other ders‘
Capital in reserve provisi equity
s reserve profit equity
stock s on
169,142 39,742,4 26,704, -116,02 -515,91 -1,373,51 117,673,58
I.Balance at the end of last year
,356.00 73.00 791.00 6,610.00 4.00 4.00 2.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142 39,742,4 26,704, -116,02 -515,91 -1,373,51 117,673,58
current year ,356.00 73.00 791.00 6,610.00 4.00 4.00 2.00
48,311.0 -247,33 -194,705.0
III.Changed in the current year 4,315.00 0.00
0 1.00 0
-247,33 -247,331.0
（I） Net profit 0.00
1.00 0
48,311.0
（II）Other misc.income 4,315.00 0.00 52,626.00
0
48,311.0 -247,33 -194,705.0
Total of (I) and (II) 4,315.00 0.00
0 1.00 0
(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 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
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
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
（VII）Other
IV. Balance at the end of this 169,142 39,790,7 26,704, -116,27 -511,59 -1,373,51 117,478,87
term ,356.00 84.00 791.00 3,941.00 9.00 4.00 7.00
Amount in last year
Unit：RMB
Amount in last year
Owner‘s equity Attributable to the Parent Company
Minor
Items Less: Surplu Comm Total of
Capital Special Attribu sharehol
Share Shares s on risk owners‘
reserve ized table Other ders‘
Capital in reserve provisi equity
s reserve profit equity
stock s on
169,142 39,872,5 26,704, -98,665, 5,874,83 -1,311,59 141,617,90
I.Balance at the end of last year
,356.00 34.00 791.00 017.00 5.00 5.00 4.00
Add：Retrospective adjustment
caused by merger of entities
under common control
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142 39,872,5 26,704, -98,665, 5,874,83 -1,311,59 141,617,90
current year ,356.00 34.00 791.00 017.00 5.00 5.00 4.00
\ III.Changed in the current -130,06 -17,361, -6,390,7 -61,919.0 -23,944,32
year 1.00 593.00 49.00 0 2.00
-17,361, -1,731,98 -19,093,58
（I） Net profit
593.00 9.00 2.00
-130,06 -6,390,7 1,670,070 -4,850,740.
（II）Other misc.income
1.00 49.00 .00 00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
-130,06 -17,361, -6,390,7 -6,191,90 -23,944,32
Total of (I) and (II)
1.00 593.00 49.00 0.00 2.00
(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 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
（VII）Other
IV. Balance at the end of this 169,142 39,742,4 26,704, -116,02 -515,91 -1,373,51 117,673,58
term ,356.00 73.00 791.00 6,610.00 4.00 4.00 2.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
8. Statement of change in owner‘s Equity of the Parent Company
Prepared by: Shenzhen Victor Onward Textile Industrial Co., Ltd.
Amount in this period
Unit：RMB
Amount in this period
Items
Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners‘
Capital reserves reserves ble profit
stock reserves provision equity
169,142,35 31,606,598 26,309,287 -90,792,58 136,265,65
I.Balance at the end of last year
6.00 .00 .00 3.00 8.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142,35 31,606,598 26,309,287 -90,792,58 136,265,65
current year 6.00 .00 ..00 3.00 8.00
-2,568,914. -2,568,914.
III.Changed in the current year
00 00
-2,566,647. -2,566,647.
（I） Net profit
00 00
（II）Other misc.income -2,267.00 -2,267.00
-2,568,914. -2,568,914.
Subtotal of (I) and (II)
00 00
(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 reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
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
（VII）Other
IV. Balance at the end of this 169,142,35 31,606,598 26,309,287 -93,361,49 133,696,74
term 6.00 .00 .00 7.00 4.00
Amount in last year
Unit：RMB
Amount in last year
Items
Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners‘
Capital reserves reserves ble profit
stock reserve provision equity
169,142,35 31,606,598 26,309,287 -77,625,32 149,432,91
I.Balance at the end of last year
6.00 .00 .00 6.00 5.00
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 169,142,35 31,606,598 26,309,287 -77,625,32 149,432,91
current year 6.00 .00 .00 6.00 5.00
-13,167,25 -13,167,25
III.Changed in the current year
7.00 7.00
-6,258,858. -6,258,858.
（I） Net profit
00 00
-6,908,399. -6,908,399.
（II）Other misc.income
00 00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
-13,167,25 -13,167,25
Subtotal of (I) and (II)
7.00 7.00
(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 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
（VII）Other
IV. Balance at the end of this 169,142,35 31,606,598 26,309,287 -90,792,58 136,265,65
term 6.00 .00 .00 3.00 8.00
Legal representative ：Hu Yongfengn
Person-in-charge of the accounting work：Zhang Jinliang
Person-in -charge of the accounting organ：Ren Changzhengi
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
（III）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.
By December 31, 2012, 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-shares3,141,032 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 Union Holdings and has the right to
control Union Holdings, thus Union Group is the actual controller of the Company.
By December 31, 2012, 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 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
（IV）Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
The financial statements of the Group were prepared on basis of continuous operation and according
to actual transactions and matters, Accounting Standards for Business Enterprises promulgated by Ministry
of Finance and relevant regulations and the accounting policies and estimation stated in Note IV -
Important Accounting Policies and Accounting Estimate.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
2. Statement on complying with corporate accounting standards
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.
3. Fiscal year
The fiscal year of the Group starts on January 1 and ends on December 31 on the Gregorian calendar.
4. Accounting standard money
The Company and two subsidiaries namely Nanhua Company and Shenzhen East Asia Company take
RMB as the base currency for bookkeeping while the other subsidiaries take Hong Kong Dollar as the base
currency for bookkeeping. In the report year, the Company and its subsidiary Nanhua Company changed
their base currency for bookkeeping from HKD into RMB because they received and made cash payment
in RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：
（2）Enterprise merger under different control：
6. The compiling method of combined financial statement
(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.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
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.
（2）Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold
and surcease in successively two years.
（7） Recognition Standard of Cash & 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.
8. 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 & 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.
From January 1 of the report year, the Company and its subsidiary Nanhua Company changed their base currency
for bookkeeping from HKD into RMB because they received and made cash payment in RMB. At the time of
change, all items were translated into items stated in base currency for bookkeeping at the spot exchange rate
quoted on the day of change. The amount after translation was taken as historical cost calculated in new base
currency for bookkeeping.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
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.
9. Financial instruments
(1) Classification of financial instruments:
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.
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.
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.
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.
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.
(2) Measurement of financial instruments
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.
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; 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 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.
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Except for impairment losses and monetary financial assets in foreign currency exchange gains and losses, the
financial assets measured by fair value and the changes included in the current loss and gain, on the financial sheet
date, the Group will check the book value of other financial assets on the balance sheet date, if there is objective
evidence showing that impairment has happened on a financial asset, provision for the impairment shall be drown.
（3） Recognition basis and measurement for transferred financial assets
Financial assets to meet one of the following conditions, terminates confirmed: ① the right to
receive cash flows from the financial asset of the contract termination; ② the financial asset has been
transferred, and the group will finance almost on all the risks and rewards of ownership of assets
transferred to the party; ③ the financial asset has been transferred, although the Group has neither
transferred nor retained almost on all the risks and rewards of ownership of financial assets, but gave
up on the control of financial assets.
Enterprise has neither transferred nor retained almost on all the risks and rewards of ownership of
financial assets, and did not give up on the control of financial assets, in accordance with their continuing
involvement in transferred financial assets recognized on financial assets, and confirm the liabilities
accordingly.
Total transfers of financial assets to meet the termination of recognition criteria, the book value of the
transferred financial assets, and received by the transfer price and the original included in other
comprehensive income difference between the sum of the changes in the fair value of the cumulative
amount of included in the current profits and losses.
Financial assets part transfer meet terminated confirmed conditions of, will by transfer financial
assets overall of book value, in terminated confirmed part and is not terminated confirmed part, in
accordance with their of relative fair value for sharing, and will due to transfer and received of on price
and the should sharing to terminated confirmed part of original meter into other integrated income of fair
value changes Trojan amount of and, and sharing in book amount of difference meter into Dang period
profit and loss.
（4）The conditions to stopping the 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.
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When financial liabilities present obligations in whole or in part have been discharged, terminating confirmed part
of the financial liabilities or obligations have been discharged. Terminating confirmed part of the difference
between the book value and paying the price, included in the current profits and losses.
（5）The determination method for fair value of financial assets and financial liabilities
1.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 financial liability.
2.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.
（6）Providing of impairment provision on financial assets (exclude receivable accounts)
Except for financial assets at fair value through profit and loss, the Group assesses at the balance sheet date
the carrying amount of other financial assets. If there is any objective evidence that a financial asset is
impaired, the Group provides for such impairment losses.
If there is objective evidence that an impairment loss has been incurred on financial assets carried at
amortized cost, the amount of the loss is measured as the difference between the asset‘s carrying amount
and the present value of estimated future cash flows (excluding future credit losses that have not been
incurred). If in a subsequent period, the amount of the impairment loss increases and the increase can be
related objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognized in
the income statement.
If the fair value of an available-for-sale financial asset incurred a significant or prolonged decline, the
cumulative loss arising from the decline in fair value that has been recognized directly in shareholders‘
equity is removed from shareholders‘ equity and recognized in the income statement. If, after impairment
loss has been recognized on an available-for-sale debt instrument and the fair value of the debt instrument
increases in a subsequent period whereby the increase can be objectively related to an event occurring after
the impairment losses are recognized, the impairment loss is reversed and recognized in the profit and loss.
If, after impairment loss has been recognized on an available-for-sale equity instrument, the fair value of
the equity instrument increases in a subsequent period, the impairment loss is directly recognized in
shareholders‘ equity.
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（7）If investment held to mature is recztegorized to sellable financial assets, please state the intention or
evidence of change incapability
10. Recognition standard and providing basis of bad debt provision on receivable accounts
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.
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Account receivable with special account receivable
Judgment criteria or amount standard of material specific
exceeding RMB 1 million is viewed as material
amount or amount criteria
accounts receivable.
Provision Had debt preparation in accordance with
Provision method with material specific amount and
the difference of present value of future cash flow
provision of specific bad debt preparation
below the book value .
(2)The accounts receivable of bad debt provisions made by Group
Method for recognition
Name of impairment Basis of determination of groups
allowances by group
The group is classified by the credit risk features
Group of account age The age analysis
basised on the account age of receivables
The Group is classified by the credit risk features based
Group of Related party Other on the relations of account receivables and transaction
objects
The Group is classified by the credit risk features
Deposit group Other
basised on the account age of receivables .
Accounts on age basis in the portfolio：
√applicable□ not applicable
Age Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1
3% 3%
year）
1－2 years 10% 10%
2－3 years 50% 50%
Over 3 years 100% 100%
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
√applicable□ not applicable
Name Notes
Special relationship between the related party and the Group
Related party Group (such as joint ventures, associates, etc.), 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 bad debt
Deposit group
reserves withdrawn by combination are difficult to reflect the
accounts receivable of risk features.
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（3）Account receivable with non-material specific amount but specific bad debt preparation
Accounts receivable with non-material specific amount and being not
Reason of specific bad debt able to relent its risk character by provisioning bad debt preparation in
preparation provision： accordance with portfolio
Provision method of bad debt Bad debt preparation will be provisioned in accordance with the
preparation difference of present value of its future cash flow below its book value.
11.Inventory
（1）Inventory classification
The inventories of the Company include raw materials, packing articles, low-value and easily-worn
articles ,Work-in-process and stock goods ,etc..
（2）Pricing method of stock delivered
Stock delivered is measured according to weighted average method.
（3）Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.
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.
（4）Inventory system
Inventory system adopts the perpetual inventory method.
（5）Amortization method of consumption goods with low value and wrap page
Consumption goods with low value: Consumption goods with low value adopt one time amortization method
when used. Packing:
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Wrap page: Wrap page adopts one time amortization when used.
12．Long-term equity investment
（1）Investment cost confirmation
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. 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 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.
（2）Rear measuring and profit and loss confirmation method
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. 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
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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.
（3） Confirm the basis that has common control and major infection upon invested unit.
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.
（4）Depreciation testing method and depreciation reserve withdrawal method.
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.
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(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.
13. 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 residual value Annual depreciatio
life（Year） rate n rate（%）
Real estate in 20-50 years 0% 2%-5%
Hongkong
Real estate in 20-30 years 10% 3%-4.5%
China
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 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.
Using the fair value model for subsequent measurement, should disclose the accounting policy adopted
pursuant to, including the identification of investment real estate market real estate locations have active basis;
Companies able to make the same or similar from the real estate market real estate market prices and other
relevant information, so as to estimate the fair value of investment property basis; Indication of when to estimate
the fair value of investment property key assumptions and main determining factors involved.
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14. Fixed assets
（1）Confirmation conditions of 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.
（2）Cognizance evidence and pricing method of financial leasing fixed assets
（3）Fixed assets depreciation method
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:
No Type Expected useful Estimated residual value Annual depreciation r
life（Year） rate ate（%）
1 Real estate in 20-50 years 0% 2%-5%
Hongkong
2 Real estate in 20-30 years 10% 3%-4.5%
China
3 Machinery and equipment 5-14 years 10% 6%-18%
4 Transportation equipment 4-5 years 10% 18%-22.5%
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5 Office equipment and 5 years 10% 18%
other
Type Expected useful Estimated residual value rate Annual depreciation rate（%）
life（Year）
House and Building 20-50 0% 2%-5%
Machinery and equipment 5-14 10% 6%-18%
Electronic equipment 5 10% 18%
Transportation equipment 4-5 10% 18%-22.5%
（4）Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
Refer to 13. Long-term equity investment (4) - Methods of Impairment Testing and Provision for Impairment for
the details of methods of impairment testing and provision for impairment of fixed assets.
（5）Other
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.
15. Projects under construction
（1）Categories of projects under construction
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.
（2）Standard and timing for transferring of projects under construction to fixed assets
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.
（3）Impairment text and providing of impairment provisions on projects under construction
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16. Borrowing cost
（1）Principle of the recognition of capitalized borrowing costs
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.
（2）Capitalizing period of borrowing expenses
（3）Temporarily suspension of capitalizing period
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, Asset acquisition or production activities began.
（4）Calculating of borrowing expense capitalizing
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 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.
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 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.
17. Biological assets
18.Oil gas assets
19.Intangible assets
（1）Pricing of 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
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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.
（2）Estimation of service life of intangible assets with limited service life
Name Expected useful life Basis
（3）Intangible assets without certain useful life
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.
（4）Provision for impairment of investment assets
Provision for impairment of investment assets Refer to 13. Long-term equity investment (4) - Methods of
Impairment Testing and Provision for Impairment for the details of methods of impairment testing and provision
for impairment.
（5）Dividing of research stage and development stage of internal R& D projects
（6）Accounting of internal R & D expenses
20.Long-term amortization 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 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.
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21.Asset transferring with repurchasing terms
22.Predicted liabilities
（1）Recognition of 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.
（2）Accounting of Predicted liabilities
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.
23.Share payment and equity instrument
（1）Category of share payment
（2）Recognition of fair value of equity instruments
（3）Recognition basis of best estimation of exercisable equity instruments
（4）Accounting treatment of share payment plan to be implemented, revised , and terminated
24.Repurchasing of the Company‘s shares
25. Revenues
（1）Recognition time for sales of goods
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.
101
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（2）Incomes from transferring asset use right
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.
（3）Confirm the evidence to provide labor income
（4）Deciding of completion percentage when percentage basis is adopted to recognize income from service
providing or construction contracts
26. Governmental subsidy
（1）Categories
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).
（2）Accounting treatment
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.
27. Deferred income tax assets/Deferred income tax liability
（1）Confirmation of deferred income tax assets
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 deduct the temporary differences. When enough payable
tax can be obtained, the deducted amount shall be transferred back.
102
深圳中冠纺织印染股份有限公司 2012 年度报告全文
(2) The confirmation of deferred income tax liability
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).
28.Operational leasing and Financing leasing
（1）Accounting of operational leasing
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.
（2）Accounting treatment of financing leasing
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.
（3）Assets acquired under finance lease
29. Sellable assets in possession
（1）Recognition of sellable assets in possession
（2）Accounting treatment of sellable assets in possession
30.Securitilization of assets
31.Hedging instruments
32.Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year
□ Yes √ No
（1）Change of accounting policies
Is there any change in accounting policies in the report period
□ Yes √ No
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
（2）Change of accounting estimations
Is there any change in accounting estimations in the report period
□ Yes √ No.
33.Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period
□ Yes √ No
（1）Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term
□ Yes √ No
（2）Future adoption method
Is there any future adoption method apply able to accounting errors with previous period, found in the report
period.
□ Yes √ No
34.Other principal accounting policies, estimations and preparation method of financial statements
1）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.
2）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
104
深圳中冠纺织印染股份有限公司 2012 年度报告全文
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.
3)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.
4）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 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.
（V）Taxation
1.Main categories and rates of taxes
Taxes Tax references Applicable tax rates
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Income from sales of products and
VAT 17%
processing
Business tax Business income 5%
City maintenance and construction tax Turnover tax 7%
Enterprise income tax Amount of income taxable 25%
Education surtax Turnover tax 3%
Local surcharge for Education Turnover tax 2%
Income tax rate applicable to branches and factories.
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 25% in 2012
the interest rate of the income from Hong Kong of the subsidiaries in Hong Kong is 16.5%.
2. Tax preference and approval file
3.Other
The subsidiaries of the company in Hong Kong do not need to pay the domestic tax.
(VI) Enterprise consolidation and combined financial statements
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
Unit：RMB
After
wrote
Amount
Other down
used to
projects current
write
balance period
Actual Proporti Whether Interest down
Full essential Holding loss of
Registra Register capital on of consolid of lost
name of Subsidia Busines Busines ly from proporti minority
tion ed amounts voting ation of minority included
subsidia ry type s s scope net on sharehol
place capital of rights(% report sharehol in
ry investm (%) ders
the end ) form der minority
ent to over
sharehol
subsidia equity
der
ry beginni
interest
ng share
of
106
深圳中冠纺织印染股份有限公司 2012 年度报告全文
minority
sharehol
ders in
the
subsidia
ry from
the
parent
compan
y‘s
share ,B
alance
of
Owner's
equity
Purchase
of raw
materials,
marketin
Hong
2,400,0 g of
Kong Limited printed
Hong 02 2,400,0
Victor Compan Trade and dyed 100% 100% Yes 0.00 0.00 0.00
Kong （HKD 02.00
Onward y woven
） fabrics,
Co.Ltd
investme
nt and
holding
business
Sales of
Shenzho 1,000,0 Corduroy
Limited
ng Hong 00 , dyed 1,000,0
Compan Trade 100% 100% Yes 0.00 0.00 0.00
Compan Kong （HKD cloth and 00.00
y
y ） printed
cloth
Productio
n and
85,494,
Nanhua Limited sales of
Shenzhe Product 700 85,494,
Compan Compan printed 69.44% 69.44% Yes 0.00 0.00 0.00
n ion （HKD 700.00
y y cloth and
）
dyed
cloth
Sales of
Xinye Limited 10,000
Hong printed 10,000.
Compan Compan Trade （HKD 100% 100% Yes 0.00 0.00 0.00
Kong cloth and 00
y y ）
dyed
107
深圳中冠纺织印染股份有限公司 2012 年度报告全文
cloth
Textilet,P
rinting
and
dyeing
industry
Shenzh and
Limited
en East Shenzhe 3,000,0 Raw 3,000,0 -1,373,5
Compan Trade 51% 51% Yes 0.00 0.00
Asia n 00 materials 00.00 14.00
y
Co ,Machine
ry
equipmen
t and
other
fabrics
Notes
（2）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
Unit：RMB
After
wrote
down
current
period
loss of
minority
sharehold
Other Amount
ers over
projects used to
equity
Actual balance write
Full name Proportio Whether Interest of beginning
capital essentiall Holding consolidat down lost
of Subsidiar Registrati Business Registrati Scope of proportio n of ion of minority share of
amounts y from n included
subsidiary y type on Place character on capital business voting report sharehold minority
of the net (%) in
company rights(%) form er sharehold
end investmen minority
ers in the
t to sharehold
subsidiary
subsidiary er interest
from the
parent
company‘
s
share ,Bal
ance of
Owner's
equity
108
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Notes
（3）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
Unit：RMB
After
wrote
down
current
period
loss of
minority
sharehold
Other Amount
ers over
projects used to
equity
Actual balance Whether write
Full name Holding Proportio Interest of beginning
capital essentiall consolidat down lost
of Subsidiar Registrati Business Registrati Scope of proportio n of minority share of
amounts y from ion of included
subsidiary y type on Place character on capital business n voting sharehold minority
of the net report in
company (%) rights(%) er sharehold
end investmen form minority
ers in the
t to sharehold
subsidiary
subsidiary er interest
from the
parent
company‘
s
share ,Bal
ance of
Owner's
equity
Notes
2. Entities with special purposes or entities on which the Company has controlling power through entrusted
operation or leasing
Unit：RMB
Major transactions with the Major assets, liabilities items recognized in the consolidated
Name
Company statements and its year-end balances
Notes
3. Changes of combination scope at current period
Notes
□Applicable √Not applicable
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
4. Entities newly included in consolidate scope during the reporting period and entities ceasing to be included in
consolidate scope during the reporting period.
Subsidiaries, special purposes entities, operation entity where controlling right is formed under entrusted
operation or leasing newly included in consolidation scope during the period.
Unit:RMB
Name Net asset at the end of 2012 Net profit of 2012
There is no other changes in consolidation scope except this . there is no other is no other main part to be newly
included or to be excluded in consolidation scope of this period.
Unit：RMB
Name Net asset of Disposition date Net profit of at disposal day
Notes
5. Business combinations involving entities under common control that happened in current reporting period
Unit:RMB
Justifications for
classifying as
The actual Consolidated cash
business
controller which flows from current
Combined party combinations Income Net profit
imposes the period to the
involving entities
common control combining date
under common
control
None
6. Business combinations involving entities under common control that happened in current reporting period
Unit：RMB
Merged party Goodwill Amount Goodwill calculation method
7.Sell stock right losing controlling right to decrease subsidiary company.
Subsidiary Disposal date Recognition method for gains and losses
Other explanation for loss of subsidiaries due to disposal of equity interests without controlling rights
110
深圳中冠纺织印染股份有限公司 2012 年度报告全文
8.Reverse acquisition occurred in the report period
Recognition of goodwill or
method to determine the
Backdoor Reverse acquisition occurred merge through profit or loss
combination costs
calculation method
Notes
9.Takeover occurred in the report period.
Unit：RMB
Type of consolidation by merger main assets to merge Main Liabilities to merge
Merger under the same control Items Amount Items Amount
Merger by absorption under the different control Items Amount Items Amount
Notes
10.Exchange rate of main accounts of overseas businesses
The spot exchange rate of HK dollar to RMB was 0.8107 at year beginning, and the spot exchange rate at
year end was 0.8109 the approximate exchange rate of the spot exchange rate uses the current average exchange
rate 0.8108.
(VII). Notes to the major items of consolidated financial statement
1.Monetary Capital
Unit：RMB
Year-end balance Year-beginning balance
Items Exchange Exchange
Foreign currency RMB Foreign currency RMB
rate rate
Cash -- -- 66,684.00 -- -- 13,567.00
RMB -- -- 62,790.00 -- -- 10,547.00
HKD 4,802.00 0.81% 3,894.00 3,725.00 0.81% 3,020.00
Bank deposit -- -- 51,492,804.00 -- -- 52,631,239.00
RMB -- -- 25,739,776.00 -- -- 27,166,560.00
HKD 30,435,747.00 0.81% 24,680,347.00 30,084,085.00 0.81% 24,389,168.00
USD 170,660.00 6.29% 1,072,681.00 170,692.00 6.3% 1,075,511.00
Other monetary capital -- -- 667,774.00 -- -- 754,510.00
RMB -- -- 667,774.00 -- -- 754,510.00
111
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Total -- -- 52,227,262.00 -- -- 53,399,316.00
Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,
stored overseas, with potential recovery risk.
2.Transactional financial assets
（1）Transaction financial assets
Unit：RMB
Items Fair value as at period-end Fair value as at period-begin
Equity tool investment for transaction. 0.00 68,900.00
Total 68,900.00
（2）Transactional financial assets with restriction to liquefy
Unit ：RMB
Limited conditions in sales, liquidation and some
Items Year-end amount
others
（3）Statements on hedge instruments and related trading
3.Bill receivable
（1）Classification bill receivable
Unit：RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 1,500,000.00
Total 1,500,000.00
（2）Bill receivable under pledge
Unit：RMB
Issuer Date of issue Expired on Amount Remark
112
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to
other parties but are not mature yet at the end of period.
Bill transferred to account receivable for the issuer is not able to execute the liability
Unit：RMB
Issuer Date of issue Expired on Amount Remark
Notes:
Bill endorsed to other parties but not due
Unit：RMB
Issuer Date of issue Expired on Amount Remark
Notes ：
Statements on commercial accepted notes already discounted or under pledge：
4.Dividend receivable
Unit：RMB
Whether the
Amount at year Increase at this Decrease at this Amount at period Reasons for not relevant funds
Items
beginning period period end being recovered have signs for
impairment
Including： -- -- -- -- -- --
Including： -- -- -- -- -- --
Notes
5. Interest receivable
（1）Interest receivable
Unit :RMB
Items Beginning of term Increased this term Decreased this term End of term
Fixed deposit interest 38,378.00 154,971.00 154,935.00 38,414.00
Total 38,378.00 154,971.00 154,935.00 38,414.00
（2）Overdue interests
Unit：RMB
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Loan provided by Days overdue（day） Amount of interests overdue
（3）Statement on interest receivable
The interests receivable was the ones for the subsidiary of the company Hong Kong Victor Onward Bank‘s
deposits, with principal about RMB 36.60 million.
6. Account receivable
1.Classification account receivables.
Unit :RMB
Amount in year-end Amount in year- begin
Book Balance Bad debt provision Book Balance Bad debt provision
Classification
Amount Proportion( Amount Proportion( Amount Proportion( Amount Proportion(%
%) %) %) )
Receivables with major
individual amount and bad
debt provision provided
individually receivables 3,715,397. 3,714,877
29.48 2,970,685.00 79.96 29.47% 2,970,165.00 79.95%
with major individual 00 .00
amount and bad debt
provision provided
individually
Receivables provided bad debt provision in groups
Account receivable with
minor individual amount 8,888,114 8,892,549
70.52 8,888,114.00 100.00 70.53% 8,892,549.00 100%
but bad debt provision is .00 .00
provided
12,603,511. 11,858,799. 12,607,42 11,862,714.0
Total l -- -- -- --
00 00 6.00 0
Category explanation of accounts receivable:
Receivable accounts with large amount individually and bad debt provisions were provided
√ Applicable □ not applicable
Unit:RMB
Description Book balance Bad debt provision Rate(%) Reason to provide
Hong Kong Victor Onward Co., Ltd. 1,606,281 861,569 53.64 Aging long
114
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Carnival Index International Ltd 1,098,820 1,098,820 100.00 Aging long
TAI YANG ENTERPRISE CO.,LTD 1,010,296 1,010,296 100.00 Aging long
Total 3,715,397 2,970,685 -- --
Account receivable on which bad debt provisions are provided on age basis in the group
□Applicable √Not applicable
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the Group：
□Applicable √Not applicable
Receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Description Of account
Book balance Amount of bad debt rate reason
receivables
VEGA GARMENT
768,189 768,189 100% Aging long
CO.,Ltd.
Fly Dragon International 573,677 573,677 100% Aging long
Grateful Textiles Co.,Ltd. 566,801 566,801 100% Aging long
World Fabrica (Int'l) Ltd. 465,241 465,241 100% Aging long
深圳市方舟纺织品有限
446,352 446,352 100% Aging long
公司
鄂州翔雅服饰有限公司 351,500 351,500 100% Aging long
Tak Shing Buying Office
333,584 333,584 100% Aging long
Ltd.
Starline Textile Co.,Ltd. 332,316 332,316 100% Aging long
深业华联（香港）有限
299,428 299,428 100% Aging long
公司
Panther Fabric Ltd. 295,161 295,161 100% Aging long
常熟中江服装进出口有
270,134 270,134 100% Aging long
限责任公司
中冠纺织(香港)有限公
245,621 245,621 100% Aging long
司
Nissho Iwai HK Co., Ltd. 215,282 215,282 100% Aging long
Unimix Ltd. 192,939 192,939 100% Aging long
Tai Hing Linings Co.,
191,342 191,342 100% Aging long
Ltd
115
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Human Changpuan
185,981 185,981 100% Aging long
Garment
宁波雅戈尔福村制服有
172,910 172,910 100% Aging long
限公司
Win favour evelopment
146,636 146,636 100% Aging long
ltd.
Speedy Textiles Co., 146,538 146,538 100% Aging long
Lin Feng Textile Co., 135,719 135,719 100% Aging long
Lin Feng Textile Co., 135,719 135,719 100% Aging long
集成棉业有限公司 131,987 131,987 100% Aging long
Millionaire(HK)Weaving
124,280 124,280 100% Aging long
Ltd.
Leader Day Ltd. 121,960 121,960 100% Aging long
Tex Mate Fabrics (HK) 110,051 110,051 100% Aging long
New Design Textiles Ltd. 109,205 109,205 100% Aging long
Deep Success Industrial
102,631 102,631 100% Aging long
Ltd.
Wynvaye Industrial Co,. 101,055 101,055 100% Aging long
ACTSUNLTD. 89,635 89,635 100% Aging long
泉州如意鸟服饰制衣有
80,518 80,518 100% Aging long
限公司
Tamurakoma Co Ltd. 77,847 77,847 100% Aging long
International Textiles
65,477 65,477 100% Aging long
Co,.
深圳鸿天布业贸易有限
59,395 59,395 100% Aging long
公司
Ho Cheong Textiles Ltd. 54,620 54,620 100% Aging long
Origin Textiles Co Ltd. 54,169 54,169 100% Aging long
Wing Fook Piecegoods
50,401 50,401 100% Aging long
Co.,Ltd.
Wing Shum Piecesgoods
49,917 49,917 100% Aging long
Co., Ltd.
Gold Eagle Textiles
47,600 47,600 100% Aging long
Limited
唐山市利丰制衣有限公
45,761 45,761 100% Aging long
司
Charman Trading Co 43,863 43,863 100% Aging long
116
深圳中冠纺织印染股份有限公司 2012 年度报告全文
其他 896,672 896,672 100% Aging long
Total 8,892,560.00 8,892,560.00 -- --
（2）Receivable accounts written back or retrieved in the report period
Unit：RMB
Bad debt provision
Reason to write back Basis of original bad Amount written back or
Description of receivables provided before writing
or retrieve debt provision retried
back or retrieving
In the end report period, separate amount is not large , the account receivable with big combination risk after
combined via risk character
Unit：RMB
Name Book balance Amount of bad debt Proportion（%） Reason
Notes
（3）Receivable accounts actually written off in the report period
Unit：RMB
Whether because of
reasons of written
Name Quality Time of written off Amount of written the connected
off
transaction
Notes
（4）Particulars about the receivable accounts due from shareholders with 5% or over of the Company‘s shares in
the report period.
Unit：RMB
Year-end balance Year-beginning balance
Name
Book Balance Amount Book Balance Amount
（5）The front 5 units‘ information of account receivable
Unit ：RMB
Name Relation with the Amount Ages Portion in total
117
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Company receivables (%)
Victor Onward
Non-Related parties 1,606,281.00 Over 3 years 12.74%
Textile(HK)Co., Ltd.
Carnival Index
Non-Related parties 1,098,820.00 Over 3 years 8.72%
International Ltd
TAI YANG
Non-Related parties 1,010,296.00 Over 3 years 8.02%
ENTERPRISE CO.,LTD.
VEGA GARMENT
Non-Related parties 770,071.00 Over 3 years 6.11%
CO.,LTD
Fly Dragon International Non-Related parties 573,677.00 Over 3 years 4.55%
Total -- 5,059,145.00 -- 40.14%
（6）Account receivable from Related parties
Unit：RMB
Portion in total receivables
Name Relation with the company Amount
account(%)
Shenye Union（HK）Co., The related parties controlled
299,428.00 2.38%
Ltd. the same Actual controller
Total -- 299,428.00 2.38%
（7）Termination of receivable accounts
Unit：RMB
Items Derecognized amount Gains/losses associated with the derecognition
（8）For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
Unit：RMB
Items Year-end balance
Assets：
Liability：
7. Other receivable
1.Type analyses:
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Unit：RMB
Amount in year-end Amount in year-begin
Book Balance Bad debt provision Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio Amount Proportion( Amount Proportio
n(%) n(%) %) n(%)
Other receivables with
major individual amount
3,368,370.00 72.62% 3,368,370.00 100% 3,368,370.00 69.76% 3,368,370.00 100%
and had debt provision
provided individually
Other receivables provided bad debt provision in groups
Account age group 260,005.00 5.6% 0.00 0% 457,264.00 9.47% 0.00 0%
Subtotal of group 260,005.00 5.6% 0.00 0% 457,264.00 9.47% 0.00 0%
Other account receivable
with minor individual
1,010,019.00 21.78% 1,010,019.00 100% 1,002,594.00 20.77% 1,002,594.00 100%
amount but bad debt
provision is provided
Total 4,638,394.00 -- 4,378,389.00 -- 4,828,228.00 -- 4,370,964.00 --
Category explanation of other accounts receivable:
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
Unit：RMB
Description Book balance Amount of bad debts Rate（%） Reason
Nanjing East Asia 1,313,370.00 1,313,370.00 100% Aging long
CCB.Guangdong Shunde
1,080,000.00 1,080,000.00 100% Aging long
Branch
Changzhou Dongfeng
Textile Printing & dyeing 975,000.00 975,000.00 100% Aging long
Equipment Co., Ltd.
Total 3,368,370.00 3,368,370.00 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
□Applicable √Not applicable
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
119
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
√Applicable □Not applicable
Unit：RMB
Content Book balance Bad debt Provision Rate（%） Reason
HongKong Victor
694,122.00 694,122.00 100% Aging long
Onward
Shanghai Huayinke
180,000.00 180,000.00 100% Aging long
Trade Industry Co., Ltd.
Shenzhen Environmental Aging long
Management System 35,000.00 35,000.00 100%
Certification Center
Shenzhen Design
Institute of Ministry of
30,000.00 30,000.00 100% Aging long
Machinery Industry
Shanghai Branch
Other 70,897.00 70,897.00 100% Aging long
Total 1,010,019.00 1,010,019.00 -- --
（2）Other receivable accounts written back or retrieved in the report period
Unit：RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retried
back or retrieving
Receivable accounts with large amount, or minor amount but on which bad debt provisions are tested and
provided individually at end of period
Unit：RMB
Description of the
Book balance Amount of bad debt Providing rate（%） Reason
receivable accounts
Statement on other account receivable with minor amount but with greater risks when combined with other
receivable accounts with similar natures：
（3）Other receivable accounts actually written off in the report period
Unit：RMB
Name of the Reason of written Occurred under related
Property of account Date of written off Amount written off
Company off relationship
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Statements on writing off of other receivable accounts：
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company‘s
shares in the report period.
Unit ：RMB
Balance at the period end Balance in year-begin
Name Amount of bad debt Amount of bad debt
Book amount Book amount
provision provision
（5）Natures or contents of other receivable accounts with large amount
Unit：RMB
Name Amount Quality and content Proportion(%)
Notes
（6）The front 5 units‘ information of other account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
company receivables(%)
Nanjing East Asia Non-Related parties 1,313,370.00 Over 3 years 28.32%
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 23.28%
Branch
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 21.02%
Equipment Co., Ltd.
HongKong Victor
Non-Related parties 694,122.00 Over 3 years 14.96%
Onward
Shanghai Huayinke
Non-Related parties 180,000.00 Over 3 years 3.88%
Trade Industry Co., Ltd.
Total -- 4,242,492.00 -- 91.46%
（7）Account receivable from Related parties
Unit： RMB
121
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Portion in total other receivables
Name Relation with the Company Amount
(%)
（8）Termination of other receivable accounts
Unit：RMB
Items Amount terminated Gain/loss related to termination
（9）For securitization on other receivable accounts, please provide the amount of asset and liability formed by
continuous involving
Unit：RMB
Items At end of term
Assets：
Liabilities：
8.Prepayments
（1）Prepayments age :
Unit:RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 175,734.00 99.6% 27,089.00 98.33%
1-2 years 442.00 0.25% 459.00 1.67%
2-3 years 267.00 0.15%
Total 176,443.00 -- 27,548.00 --
Notes to age of payment in advance:：
（2） The front 5 units‘ information of Prepayments
Unit：RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
122
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Decoration payments Non-Related parties 145,962.00 Not settlement
Insurance Non-Related parties 19,683.00 Not settlement
Repair fee Non-Related parties 6,567.00 Not settlement
Vehicle license fees Non-Related parties 2,874.00 Not settlement
Total -- 175,086.00 -- --
Notes
(3) Prepayment received by shareholding parties holding 5% or above of the Company‘s shares in the report
period.
Unit：RMB
Balance at the period end Balance in year-begin
Name Amount of bad debt Amount of bad debt
Book amount Book amount
provision provision
（4）Statements on prepayments
Name Amount at period-end Amount at period-beginning
Former Converting RMB Former Converting rate RMB
currency rate currency
HKD 217,589 0.8109 176,443 33,980 0.8107 27,548
Total 176,443 27,548
9．Inventory
（1）Inventory types
Unit：RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for bad Book value
bad debts debts
Raw materials 2,030,715.00 1,929,179.00 101,536.00 2,030,716.00 1,868,259.00 162,457.00
123
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Stock goods 635,960.00 635,960.00 0.00 635,916.00 635,916.00 0.00
Total 2,666,675.00 2,565,139.00 101,536.00 2,666,632.00 2,504,175.00 162,457.00
（2）Inventory Impairment provision
Unit：RMB
Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
Type end
Transferred back Reselling
beginning current period
Raw materials 1,868,259.00 60,921.00 1.00 1,929,179.00
Stock goods 635,916.00 44.00 635,960.00
Total 2,504,175.00 60,921.00 43.00 2,565,139.00
（3）Condition of inventory value decline
Items Base of stock value decline Reason of issuing back to stock Proportion of issuing back
value decline plan of this period amount to the stock balance at
this period
Statement on inventories：
The Company has been out of production, the closing inventories shall be written down after deducting the full a
mount provisions except the preservation materials is RMB 60,921.
10.Other current assets
Unit：RMB
Items End of term Beginning of term
Statement on other current assets：
11. Disposable financial asset
（1）Sellable financial assets
Unit：RMB
Items Fair value at end of term Fair value at beginning of term
Available-for-sale equity instruments 751,542.00 703,055.00
Total 751,542.00 703,055.00
The amount of investment held to mature categorized to sellable financial assets was RMB 0 , Account for 0% of
124
深圳中冠纺织印染股份有限公司 2012 年度报告全文
total investment held to mature.
Statement on sellable financial assets:
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.
（2）Long-germ liability investment in the sellable financial assets
Unit：RMB
Accumulated
Beginning Interest of the interest Ending
Bond items Type of bond Face value Initial costs Expired on
balance period received or balance
receivable
Statement on long-term liability investment in the sellable financial assets：
12.Investment held to mature
（1）Investment held to mature
Unit：RMB
Items s Balance of book value at end of term Balance of book value at beginning of term
Statement on investment held to mature：
（2）Investment held to mature disposed in the report period before mature
Unit：RMB
Percentage in the total investment before disposed
Items Amount
（%）
Statement on investment held to mature disposed in the report period before mature：
13.Long-term receivables
Unit：RMB
Categories End of term Beginning of term
125
深圳中冠纺织印染股份有限公司 2012 年度报告全文
14. Investment to joint venture and Affiliated Enterprises
Unit：RMB
Compa
Company vote
ny
right Total business
shareho Ending Ending total Ending net Current
Name percentage in revenues at this
lding total assets liabilities assets net profit
the invested of period
percent
units (%)
age (%)
Joint venture
Affiliated Enterprises
Statements on material diversity in accounting policies, estimations adopted by Joint venture and the affiliates:
15. Long term share equity investment.
126
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（1）Details of long-term equity investment
Unit：RMB
Explanati
on of
difference
between
Sharehold Voting sharehold
Accounti Initial ing right ing
Original Ending Current Cash
Name ng investmen change proportio proportio proportio Devalue
balance Balance devalue bonus
method t cost n in the n in the n and
investee investee voting
right
proportio
n in
investee
Zhejiang
Union
Hangzho Equity 58,588,40 63,192,61 2,591,698 65,784,31
25% 25% No 0.00 0.00 0.00
u Bay method 3.00 4.00 .00 2.00
Chuangye
Co., Ltd.
58,588,40 63,192,61 2,591,698 65,784,31
Total -- -- -- -- 0.00 0.00 0.00
3.00 4.00 .00 2.00
（2）Constrains on the ability to transfer capital to invested entities
Unit：RMB
Constrains on the ability to transfer capital Accumulated investment loss not
Causation of constrain
to long-term invested entities recognized
Statements on long-term equity investment：
Zhejiang Union Hangzhou bay Chuangye Co., Ltd. (hereinafter named―Hangzhoubay‖) current change
including current profit confirmed by equity method is RMB2,576,108.
16.Investment real estate
（1）Measured by the cost of investment in real estate
Unit：RMB
127
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Items Book amount at year Increase at this period Decrease at this period Book balance in year -end
beginning
96,912,003.00 8,522.00 96,920,525.00
1. Total original price
96,912,003.00 8,522.00 96,920,525.00
1.House, Building
II.Total accumulated
depreciation
62,538,552.00 3,340,489.00 65,879,041.00
accumulated
amortization
62,538,552.00 3,340,489.00 65,879,041.00
1.House, Building
III. Total book value
34,373,451.00 -3,331,967.00 31,041,484.00
of investment real
estate
34,373,451.00 -3,331,967.00 31,041,484.00
1.House, Building
V. Total book value of
34,373,451.00 -3,331,967.00 31,041,484.00
investment real estate
1.House, Building 34,373,451.00 -3,331,967.00 31,041,484.00
Unit：RMB
This period
（2）Investment property on fair value basis
Unit ：RMB
Increase at this Decrease at this
Book period period
Book
amount at Owned rea Changes in
Items Transfered balance in
year l estate or s the fair va Dispositio
beginning
Purchase as owned r year -end
tock transf lue gain or n
eal estate
er loss
128
深圳中冠纺织印染股份有限公司 2012 年度报告全文
During the reporting period,
introduction of the changed measurement model of the investment real estate and the imcompleted certificate of th
e investment real estate, explain the reason of the imcompleted certificate and the expected time to complete
17. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at Increase at this period Decrease at this Book balance in
year beginning period year -end
1.Total of Original price of
161,061,029.00 531,620.00 315,839.00 161,276,810.00
fixed assets
Including ：House and
47,972,628.00 -699.00 47,973,327.00
building
Machine equipment 99,308,680.00 0.00 99,308,680.00
Transpiration Equipment 4,593,873.00 524,501.00 248,264.00 4,870,110.00
Electricity equipment and
9,185,848.00 7,119.00 68,274.00 9,124,693.00
other
Book balance at Current term Current term Decrease at this Book balance in
--
year beginning new extra provision period year -end
II. Total of Accumulated
111,375,689.00 173,902.00 -304,633.00 -459.00 111,245,417.00
depreciation
Including ：House and
26,281,961.00 111,228.00 -43,774.00 26,436,963.00
building
Machine equipment 75,008,036.00 7,753.00 75,000,283.00
Transpiration Equipment 4,052,772.00 44,825.00 -223,456.00 9,722.00 3,864,419.00
Electricity equipment and
6,032,920.00 17,849.00 -81,177.00 25,840.00 5,943,752.00
other
Book balance in Balance in
-- --
year-begin year-end
III. Total book value of
49,685,340.00 -- 50,031,393.00
Fixed assets
Including ：House and
21,690,667.00 -- 21,536,364.00
building
Machine equipment 24,300,644.00 -- 24,308,397.00
Transpiration Equipment 541,101.00 -- 1,005,691.00
129
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Electricity equipment and
3,152,928.00 -- 3,180,941.00
other
IV. Total of Devalued
37,614,934.00 -- 37,614,934.00
Provision
Including ：House and
15,466,004.00 -- 15,466,004.00
building
Machine equipment 19,407,245.00 -- 19,407,245.00
Transpiration Equipment 50,276.00 -- 50,276.00
Electricity equipment and
2,691,409.00 -- 2,691,409.00
other
V. Total book value of Fixed
12,070,406.00 -- 12,416,459.00
assets
Including ：House and
6,224,663.00 -- 6,070,360.00
building
Machine equipment 4,893,399.00 -- 4,901,152.00
Transpiration Equipment 490,825.00 -- 955,415.00
Electricity equipment and
461,519.00 -- 489,532.00
other
Current depreciation is RMB 173,902.00 . The issue of fixed assets transferred from construction in progress
original price is RMB 0.
（2）Fixed assets temporarily in idle status
Unit：RMB
Accumulated Impairment
Items Original book value Net book value Notes
depreciation provision
House and building 44,541,973.00 25,173,561.00 15,466,005.00 3,902,407.00
Machine
98,998,752.00 74,858,652.00 19,471,657.00 4,668,443.00
equipment
Transpiration
2,979,438.00 2,681,462.00 297,976.00
Equipment
Electricity
7,543,601.00 4,839,872.00 2,504,293.00 199,436.00
equipment and other
Total 154,063,764.00 107,553,547.00 37,441,955.00 9,068,262.00
130
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）Fixed assets leased by finance
Unit：RMB
Items Original book value Accumulated depreciation Net book value
（4）Fixed assets leased out on finance
Unit：RMB
Type Book balance in year-end
（5）Fixed assets held for sale at end of period
Unit：RMB
Predicted disposal
Items Book value Fair value Predicted disposal date
expense
（6）Fixed asset not licensed yet
Items Reason for not granted Expected date of grant
Notes
18. Project under construction
（1）Project under construction
Unit ：RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
2. The variation in constructing the engineering project
Unit：RMB
Includin
Capitaliz
g：
Amount Transferr ation of Capitaliz
Increase Current Balance
at year ed to Other Proportio Progress interest ation of Source
Name Budget at this amount in
beginnin fixed decrease n(%) of work accumul interest of funds
period of year-end
g assets ated ratio（%)
capitaliz
balance
ation of
131
深圳中冠纺织印染股份有限公司 2012 年度报告全文
interest
Notes
（3）Impairment Provisions of Construction in progress
Unit：RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
（4）Major projects under construction
Items Progress work Remark
（5）Statement on projects under construction
19. Engineering Material
Unit ：RMB
Balance in Increase at this Decrease at this
Items Balance in year-end
year-begin period period
Notes.
20.Liquidation of fixed assets
Unit ：RMB
Items Beginning book value Eng book value Reason of liquidation
Progress of fixed assets turn to be liquidated for over one year：
21. Production biological assets
（1）On costs
Unit：RMB
Book balance in Book balance in
Items Increase at this period Decrease at this period
year-begin year-end
132
深圳中冠纺织印染股份有限公司 2012 年度报告全文
1.Planting industry
2.Animal husbandry and aquaculture
3. Forestry
4.Aquaculture industry
（2）On fair value
Unit ：RMB
Book balance in Book balance in
Items Increase at this period Decrease at this period
year-begin year-end
1.Planting industry
2.Animal husbandry and aquaculture
3. Forestry
4.Aquaculture industry
Notes
22. Petrolum assets
Unit：RMB
Items Book Balance in Book Balance in
Increase at this period Decrease at this period
year-begin year-end
Notes
23. Intangible assets
（1） Intangible assets
Unit ：RMB
Items Book Balance in Book Balance in
Increase at this period Decrease at this period
year-begin year-end
13,023,720.00 13,023,720.00
1. Total original price
12,356,137.00 12,356,137.00
Land Use right
133
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Software 667,583.00 667,583.00
II. Total amount of
10,895,491.00 40,305.00 10,935,796.00
accumulated
10,455,068.00 40,305.00 10,495,373.00
Land Use right
Software 440,423.00 440,423.00
III. Book value of intangible
2,128,229.00 -40,305.00 2,087,924.00
assets
1,901,069.00 -40,305.00 1,860,764.00
Land Use right
Software 227,160.00 227,160.00
IV.Total value of provision
227,160.00 227,160.00
for impairment
Land Use right
Software 227,160.00 227,160.00
V. Total Book value of
1,901,069.00 -40,305.00 1,860,764.00
intangible assets
1,901,069.00 -40,305.00 1,860,764.00
Land Use right
Software
The amortization amount is RMB 40,305.00.
（2）The current expenditure on development projects
Unit：RMB
Decrease at this period
Balance in Increase at this Accounted into
Items Recognized as Balance in year-end
year-begin period current income
intangible assets
account
R & D expenses of the current period accounted for % of the total coast of R&D.
Intangible asset formed by internal R&D of the period accounted for % of the total book value of intangible assets
Statement on R&D projects, including single account over RMB 1 million basing on evaluation results. Please
provide the evaluation body and basis of evaluation.
24.Goodwill
Unit：RMB
134
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Name of the investee or the Balance in Increase at this Decrease at this Balance in Ending devalue
matter of forming Goodwill year-begin period period year-end provision
For the goodwill formed
from holding shares of 5,099,624.00 0.00 0.00 5,099,624.00 0.00
Nanhua Company,
Total 5,099,624.00 0.00 0.00 5,099,624.00 0.00
Statement of basis for impairment testing and provision of goodwill：
25. Long-term amortization expenses
Unit ：RMB
Items Amount of Other Decrease Balance in year Other
Balance in Increase at
amortization at end
year-begin this period
current period
Notes
26. Deferred income tax assets and deferred income tax liability
1. Confirmed the deferred income tax assets and deferred income tax liability
Unit:RMB
Recognized deferred income tax assets and deferred income tax liabilities
Items Year-end balance Year-beginning balance
Deferred income tax assets:
Deferred income tax liability：
Assessed tax-free periods of time caused by
766,660.00 808,335.00
differences in income
Subtotal 766,660.00 808,335.00
Details of the un-recognized deferred income tax assets
Unit：RMB
Items At end of term At beginning of term
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Unit:RMB
Year At end of term At beginning of term Notes
Details of taxable differences and deductible differences
135
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Unit:RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Deductible difference project
（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
Statement on deferred income tax assets and liabilities：
Unit：RMB
Temporarily Temporarily
Deferred Income Tax Deferred Income Tax
Deductable or Deductable or
Assets or Liabilities Assets or Liabilities
Items Taxable Difference at Taxable Difference at
at the End of Report at the Beginning of
the End of Report the Beginning of
Period Report Period
Period Report Period
Deferred income tax liability： 766,660.00 808,335.00
Details of taxable differences and deductible differences
Unit：RMB
Items Offsetting Amounts of This Period
Details of taxable differences and deductible differences
27. Provision for depreciation of assets
Unit ：RMB
Decreased in this period
Book balance at the Increase in this Balance in
Items Switch
beginning of term period Switch back year-end
cancellation
I.Provision for bad debts 16,233,678.00 9,107.00 -5,597.00 16,237,188.00
2 Inventory impairment
2,504,175.00 60,921.00 43.00 2,565,139.00
provision
5. Long-term equity
investment impairment 0.00 0.00
provision
7.Fixed asset impairment
37,614,934.00 37,614,934.00
provision
136
深圳中冠纺织印染股份有限公司 2012 年度报告全文
12. Intangible asset
227,160.00 227,160.00
impairment provision
13. Goodwill impairment
0.00
provision
Total 56,579,947.00 70,028.00 -5,554.00 56,644,421.00
Notes
28. Other non-current assets
Unit：RMB
Items Balance in year-end Balance in year-Beginning
Notes
29. Short-term loan
（1）Categories of short-term loans
Unit：RMB
Items Balance in year-end Balance in year-Beginning
Notes
（2）Short-term loans expired but not repaid
Unit：RMB
Loan provided by Amount of loan Interest rate Usage of loan Reason of overdue Scheduled repaying date
Repaid in post-balance-sheet period.
Statement on short-term loans, including due but extended. Please provide the extending conditions and extended
expiration date.
30.Transactional financial liabilities
Unit：RMB
Items Fair value at end of term Fair value at beginning of term
Notes
31. .Bills payable
Unit：RMB
137
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Type At end of term At beginning of term
Amount due in next fiscal period is RMB .
Statement on Bills payable：
32. Account payable
（1）Account payable
Unit ：RMB
Items Balance in year-end Balance in year-begin
Over 1 year 3,239,571.00 3,239,221.00
Total 3,239,571.00 3,239,221.00
(2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares
of the company
Unit ：RMB
Name Balance in year-end Balance in year-begin
(3)The description of large-sum accounts payable with the age over 1 year:
Accounts payable with age over one year included a number of accounts, without single significant amount
of accounts payable.
33. Advance account
1. Advance account
Unit：RMB
Items Balance in year-end Balance in year-begin
Over 1 year 2,778,488.00 2,775,476.00
Total 2,778,488.00 2,775,476.00
（2）There was Advance account due from shareholders with More than 5% (including 5%) of the voting shares of the company.
Unit：RMB
Items Balance in year-end Balance in year-begin
Total 0.00 0.00
（3）The description of large-sum accounts payable with the age over 1 year:
138
深圳中冠纺织印染股份有限公司 2012 年度报告全文
34. Payable Employee wage
Unit：RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
allowances and 468,755.00 2,870,845.00 2,720,844.00 618,755.00
subsidies
2.Employee welfare 2,329.00 53,000.00 55,329.00
3. Social insurance
310,338.00 310,338.00
premiums
Medical insurance 80,135.00 80,135.00
Basic old-age
insurance 208,072.00 208,072.00
premiums
Unemployment
8,423.00 8,423.00
insurance
Work injury
6,775.00 6,775.00
insurance
Maternity
6,933.00 6,933.00
insurance
IV. Public reserves
96,348.00 96,348.00
for housing
V. .Refuse welfare 28,729.00 28,729.00
VI.Other 119,136.00 169,112.00 140,324.00 147,925.00
Other 590,220.00 3,528,372.00 3,351,912.00 766,680.00
Total
The amounts of arrears of staff salary and welfare payable are RMB 0 00.
The amounts of trade union funds and staff education expenses are RMB35,532.00, the amounts of non-monetary
benefits are RMB 0.00, and the compensations for the lifting of labor relations is RMB 28,729.00
The expected release time and amount of staff salary and welfare payable are arranged in the beginning of next
year.
At the period end, the company had no wages payable that belong to arrears.，The compensation balance payable
of employee at the end of year will be expected to be paid in May 2013.
35. Tax Payable
Unit：RMB
139
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Items At end of term At beginning of term
VAT -139,455.00 815,662.00
Business Tax 147,341.00 172,225.00
Enterprise Income tax 1,204,210.00 1,204,195.00
City Construction tax 1,742.00
House property Tax 187,320.00 276,414.00
Stamp Tax 222,658.00 228,865.00
Education subjoin 747.00
Local education surcharges 498.00
Total 1,622,074.00 2,700,348.00
Statement on tax payable: Please provide the calculating processes then taxable income is balanced between
branch companies or factories as approved by the tax bureau.
36. Interest Payable
Unit：RMB
Items At end of term At beginning of term
Notes
37.Dividend payable
Unit：RMB
Name At end of term At beginning of term Reason of overdue for one year
State Development & Investment
243,189.00 243,189.00 Capital tense
Co., Ltd*2
CITIC Group*2 243,189.00 243,189.00 Capital tense
Shenzhen Nanyou (Group)
121,595.00 121,595.00 Capital tense
Company*2
Shenye Union（Hongkong）Co., Ltd. 121,595.00 121,595.00 Capital tense
HongKong Victor Onward 486,378.00 486,378.00 Capital tense
Total 1,215,946.00 1,215,946.00 --
Notes
*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.
140
深圳中冠纺织印染股份有限公司 2012 年度报告全文
*2 The above three companies are the former shareholders of Nanhuan Company, the subsidiary of the company.
38. Other payable
（1）Other payable
Unit：RMB
Name Balance in year-end Balance in year-begin
Within 1 year 1,490,185.00 332,255.00
Over 1 year 30,737,132.00 30,834,965.00
Total 32,227,317.00 31,167,220.00
(2)There were other receivable from the main shareholders of the Company holding more than 5% (including 5%)
of the total shares of the Company.
Unit ：RMB
Name Balance in year-end Balance in year-begin
Total 0.00 0.00
（3）Statement on large amount other payable accounts due for over one year
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.
（4）Statement on large amount other payable accounts
Items Amount Age Content
Room 760 Cargo Floor （ #HKS 154,071 1-2 years Property deposit
PINNERS-760）
State Development & Investment Co., 3,000,000 Over 3 years Current account and
Ltd interest
Jinrongyuan Company 1,100,000 Over 1-3
Workshop deposit
years
Shenzhen Union Property Group Co., Ltd. 700,734 Over 3 years Other payable
24,748,412 Over 1-3
Union Development Group
years Loans
Total 29,703,217
141
深圳中冠纺织印染股份有限公司 2012 年度报告全文
39.Estimated liabilities
Unit：RMB
Items Beginning of term Increased this term Decreased this term End of term
Total 0 0 0 0
Statement on anticipated liabilities：
40. Non-current liabilities due within one year
（1） Non-current liabilities due within one year
Unit：RMB
Name At end of term At beginning of term
（2）Long-term loans due in 1 year
Long-term loans due in 1 year
Unit：RMB
Name At end of term At beginning of term
Among the long-term loans due in 1 year, the loans overdue but extended is amounted to RMB 0.
Top 5 long-term loans due in 1 year
Unit：RMB
Year-end balance Year-beginning balance
Loans Loans ending Interest rate
Amount of Amount of Amount of Amount of
Loan unit Currency
Foreign RMB Foreign RMB
starting date date (%)
currency currency
Overdue loans among the long-term loan due in 1year：
Unit：RMB
Annual interest Reason for Scheduled
Loan provided by Total amount Date of mature Usage of loan
rate(%) overdue repaying date
Among repaid in post-balance-sheet day.
Statement on long-term loans due in 1 year：
（3）Bonds payable due in 1 year
Unit：RMB
142
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at End of
Bond Face value Bond term occurred
issue amount beginning this period end of balance
this period
of period period
Statement on bond payable due in 1 year：
（4）Long-term payable account due in 1 year
Unit：RMB
Loans from Term Initial amount Interest rate(%） Interest payable End balance Condition
Statement on long-term payable due in 1 year：
41.Other current liabilities
Unit：RMB
Items Year-end balance Year-Beginning balance
Audit fees 1,395,917.00 1,433,438.00
Securities Management 746.00 746.00
Sewage charges 62,600.00 62,600.00
Land use fees 88,000.00 88,000.00
Total 1,547,263.00 1,584,784.00
Statement of other current liabilities：
42. Long-term loan
（1）Long-term loans classifications
Unit：RMB
Items Year-end balance Year-Beginning balance
Loan by pledge 1,033,936.00 1,160,011.00
Total 1,033,936.00 1,160,011.00
As regards long-term loans classifications：
（2）The top five of long-term loans
Unit：RMB
143
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Year-end balance Year-beginning balance
Loans Loans ending Interest rate
Amount of Amount of Amount of Amount of
Loan unit Currency
Foreign RMB Foreign RMB
starting date date (%)
currency currency
Statement on long-term loans. For long-term loans over due but extended for another period, please provide the
conditions, principal, interest rate, and repayment arrangement.
43.Bond payable
Unit：RMB
Interest Interest
Interest
Date of Issuing payable at Interest paid payable at
Bond Face value Bond term occurred End balance
issue amount beginning this period end of
this period
of period period
Statement on bonds payable, including the condition and time of converting of the convertible bonds：
44.Long-term payable
（1）Top 5 long-term payable
Unit：RMB
Name Term Initial amount Interest rate（%） Interest payable End balance Condition
Assess the Unlimited
8,486,859.00 8,488,953.00
value of assets duration
（2）Details of finance leasing payments in long-term payable
Unit :RMB
End of term Beginning of term
Name
Foreign currency RMB Foreign currency RMB
Total 0.00 0.00 0.00 0.00
Guarantee provided by the 3rd party for the leasing finance is amounted to RMB0.
Statement on long-term payables：
144
深圳中冠纺织印染股份有限公司 2012 年度报告全文
45.Special payable
Unit：RMB
Beginning of Increased this Decreased this
Items End of term Remarks
term term term
Statement on special payable accounts：
46.Other Non-current liabilities
Unit：RMB
Items Year-end balance Year-beginning balance
ERP Information construction 228,216.00 228,216.00
Technology subsidies 608,576.00 608,576.00
Total 836,792.00 836,792.00
Statement on other non-current liabilities, including asset-related and income-related government subsidy and
closing balances:
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.
47. .Stock capital
Unit：RMB
Increase/decrease this time (+ , - ) Balance
Balance
Issuing of new Transferred year-end
Year-beginning Bonus shares Other Subtotal
share from reserves
Total of capital
169,142,356.00 169,142,356.00
shares
Statement of change in capital shares. Name of CPA and number of verification report shall be provided if capital
increasing or decreasing occurred in the report period; as for shareholding limited companies incorporated for less
than three years, only net assets is required for the years prior to incorporation; for shareholding limited
companies reformed from limited companies shall provide the capital verification at incorporation.
48.Shares in stock
Statement on share in stock
145
深圳中冠纺织印染股份有限公司 2012 年度报告全文
49.Special reserves
Statement on special reserves
50. Capital reserves
Unit：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 29,718,829.00 29,718,829.00
Other 10,023,644.00 48,311.00 10,071,955.00
Total 39,742,473.00 48,311.00 39,790,784.00
Statement on capital reserves：
51. Surplus reserve
Unit ：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 26,704,791.00 26,704,791.00
Total 26,704,791.00 26,704,791.00
Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making
up losses, and dividends：
52.Providing of common risk provisions
Statement on common risk provisions：
53. Retained profits
Unit：RMB
Extraction or distribution of
Items Amount
the proportion
After adjustments: Retained profits at the period
-116,026,610.00 --
beginning
146
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Add：Net profit belonging to the owner of the
-247,331.00 --
parent company
Retained profits at the period end -116,273,941.00 --
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
Statement on retained profit: for companies issued their securities for the first time, if the accumulated profit
before the issuing is shared by the new and existing shareholders as approved by the shareholders‘ meeting, shall
be described particularly; if the accumulated profit before the issuing is shared only by existing shareholders as
approved by the shareholders‘ meeting, the Company shall provide the details of dividend payable to the existing
shareholders as audited by CPA.
54. Business income, Business cost
（1）Operating income and operating cost
Unit ：RMB
Items Amount of current period Amount of previous period
Income from Business income 11,095,669.00 9,850,484.00
Business cost 5,413,356.00 4,269,140.00
（2）Main business（Industry）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Textile Industry 1,266,777.00 1,248,550.00
Rent 9,828,892.00 4,164,806.00 9,850,484.00 4,269,140.00
147
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Total 11,095,669.00 5,413,356.00 9,850,484.00 4,269,140.00
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Sale of viscose staple fiber 1,266,777.00 1,248,550.00
Rent 9,828,892.00 4,164,806.00 9,850,484.00 4,269,140.00
Total 11,095,669.00 5,413,356.00 9,850,484.00 4,269,140.00
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 9,482,107.00 4,261,720.00 9,850,484.00 4,269,140.00
Hong Kong 1,613,562.00 1,151,636.00
Total 11,095,669.00 5,413,356.00 9,850,484.00 4,269,140.00
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Shenzhen Jinrongyuan
5,640,000.00 50.83%
Development Co., Ltd.
Zhejiang Helan Industry Co., Ltd. 1,266,777.00 11.42%
SCSExpress International Limited 996,960.00 8.99%
CVA HOLDING 860,859.00 7.76%
Shenzhen Hebainian Investment
600,000.00 5.41%
Development Co., Ltd.
Total 9,364,596.00 84.4%
Notes
55. Contract income
148
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Unit:RMB
Contract item Accumulated c Accumulated gross Processed amo
Fixed price contract Amount
ost profit unted
Cost plus contr Accumulated c Accumulated gross Processed amo
Contract item Amount
act ost profit unted
Notes
56. Business tax and subjoin
Unit ：RMB
Items Same period of the Standard
Report period previous year
Business tax 434,822.00 399,509.00 5%
Urban construction tax 30,438.00 27,966.00 7%
Education surcharge 13,045.00 11,985.00 3%
Local Education surcharge 8,695.00 8,057.00 2%
Total 487,000.00 447,517.00 --
Notes
57.Sales expenses
Unit：RMB
Items Amount of current period Amount of previous period
1,214.00 830.00
Office expenses
Travel expenses 7,579.00 7,735.00
Tel and fax 11,011.00 8,062.00
Welfare expenses 3,649.00 3,946.00
Incidental expenses 6,460.00 6,524.00
Wage 242,024.00 237,012.00
Traffic subsidy 3,143.00 1,877.00
Transportation expenses 8,436.00 10,410.00
Commision 12,162.00 6,231.00
Total 295,678.00 282,627.00
149
深圳中冠纺织印染股份有限公司 2012 年度报告全文
58.Administrative expenses
Unit:RMB
Items Amount of current period Amount of previous period
Wage 2,502,121.00 2,353,702.00
Tax 698,420.00 755,170.00
Water and electricity 631,337.00 350,165.00
Social security 511,603.00 315,535.00
Repair fee 335,545.00 504,899.00
Auto expenses 282,292.00 113,124.00
Social intercourse 258,190.00 350,190.00
Securities management 203,032.00 283,858.00
Board of Director 433,572.00 277,724.00
Office expense 157,858.00 229,999.00
Agency fee 585,032.00 794,960.00
Depreciation fee 131,077.00 202,962.00
Insurance fee 125,319.00 349,050.00
Welfare expense 103,134.00 154,121.00
Lease fee 102,933.00 109,390.00
Property Management 82,266.00 42,803.00
Other 219,451.00 212,393.00
Tel 60,543.00 53,219.00
House fee 58,474.00 95,323.00
Amortization of intangible assets 40,305.00 52,418.00
Union funds 35,181.00 70,107.00
Travel Expenses 10,235.00 199,796.00
Road and Bridge 0.00 81,040.00
Parking fee 0.00 17,916.00
Staff training costs 0.00 30,432.00
Total 7,567,920.00 8,000,296.00
59. Financial Expenses
Unit：RMB
150
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Items Amount of current period Amount of previous period
963,506.00 1,060,657.00
Interest expenses
-454,970.00 -373,742.00
Interest income
Exchange loss -962,762.00 -381,925.00
Other 10,052.00 11,211.00
Total -444,174.00 316,201.00
60. Income from fair value fluctuation
Unit ：RMB
Sources Report period Same period of the previous year
Transactional financial assets -25,480.00 -88,247.00
Total -25,480.00 -88,247.00
Notes
61. Investment income
（1）Investment income
Unit：RMB
Items Amount of current period Amount of previous period
Incomes from disposal of long-term equity
2,576,108.00 -10,616,493.00
investment
Investment income from financial assets sales 6,045.00 13,965.00
Total 2,582,153.00 -10,602,528.00
（2）Long-term equity investment income by costing
Unit：RMB
Amount of current period Amount of previous
Name Reason to increase or decrease
period
Total 0.00 0.00 --
151
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）long-term equity investment incomes confirmed by equity method include:
Unit：RMB
Amount of current period Amount of previous
Name Reason to increase or decrease
period
Hangzhou Bay Company 2,576,108.00 -10,616,493.00
Total 2,576,108.00 -10,616,493.00 --
Statement on investment gains, please state whether or not there are material constrains on retrieving of
investment gains.
62. Loss of assets impairment
Unit：RMB
Items
Amount of current period Amount of previous period
I.Loss for bad debts 7,424.00 -1,504,208.00
2．Loss for falling price of Inventory 60,921.00 252,979.00
7．loss for devaluation of fixed assets 4,561,791.00
Total 68,345.00 3,310,562.00
63. Non-operating income
（1）Non-operating income
Unit：RMB
The amount of
Items
Amount of current period Amount of previous period non-operating gains & losses
Total income from liquidation of
5,174.00 5,174.00
non-current assets
Including：Income from liquidation of
5,174.00 5,174.00
fixed asset
Other 24,324.00 8,308.00 84,324.00
Total 29,498.00 8,308.00 1,550,830.00
（2）Governmental subsidy details
Unit：RMB
152
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Amount of current period Amount of previous
Items Notes
period
Notes
64. Non-Operation expense
Unit：RMB
The amount of
Amount of current period Amount of previous
Items non-operating gains &
losses
period
Including: Disposition loss of Fixed assets 522.00
Donation expenses 976.00
Legal cost 581,415.00 581,415.00
Fine expenses 1,500.00 6,590.00 1,500.00
Total 582,915.00 8,088.00 582,915.00
Notes
65. Income tax expenses
Unit：RMB
Items
Amount of current period Amount of previous period
Adjustment of Deferred income tax -41,869.00 -42,902.00
Total -41,869.00 -42,902.00
66. Calculation of Basic earnings per share and Diluted earnings per share
Items No Current term Same period of
last term
Net profit attributable to shareholders of parent 1 -247,331 -17,361,593
company
Non-recurring gain/loss attributable of the parent 2 -547,372 14,184
company
Net profit attributable to common share holders 3=1-2 300,041 -17,375,777
of the Company after deducting of non-recurring
gain/loss
Total shares at the beginning of the year 4 169,142,356 169,142,356
Additional share capital transferred from public 5
reserve or additional shares from shares dividend
distribution（Ⅰ）
153
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Additional shares from issuing new shares or 6
debt-converted shares（Ⅱ）
Accumulative months of the additional share 7
commencing from the next moth till the end of
the year
Decreased shares due to repurchase 8
The number of months since the next month of 9
share decreasing to the end of report term
Amount of shares reduced 10
Number of months in the report term 11
Weighted average of common shares issued 12=4+5+6×7÷11 169,142,356 169,142,356
outside -8×9÷11-10
Basic earning pershare（Ⅰ） 13=1÷12 -0.0015 -0.10
Basic earning pershare（Ⅰ）（Ⅱ） 14=3÷12 0.0018 -0.10
Diluting potential common share interests 15
recognized as expenses
Transformation fees 16
Income tax rate 17 25% 24%
Amount of shares increased by transforming or 18
exercising of company bond, subscription
certificate, or share option
Diluted earning per share（Ⅰ） 19=[1+(15-16)×(1-17 -0.0015 -0.10
)]÷(12+18)
Diluted earning per share（Ⅱ） 19=[3+(15-16)×(1-17 0.0018 -0.10
)]÷(12+18)
67. Other comprehensive income
Unit：RMB
Items Amount of current period Amount of previous period
1.Loss amount produced by sellable financial assets 48,311.00 -130,061.00
Subtotal 48,311.00 -130,061.00
4. Translating difference in foreign currency financial reports 4,315.00 -6,390,749.00
Subtotal 4,315.00 -6,390,749.00
Total 52,626.00 -6,520,810.00
Notes
154
深圳中冠纺织印染股份有限公司 2012 年度报告全文
68. Notes Cash flow statement
1. Other cash received from business operation
Unit：RMB
Items Amount
Deposit and water & electricity 2,828,396.00
Interest income 535,791.00
Unit and individual 89,875.00
Collection and payment of money 65,888.00
Other 238,374.00
Total 3,758,324.00
Notes
2. Other cash paid for business activities
Unit：RMB
Items Amount
Water and electricity 3,169,746.00
Audit expense 567,915.00
Rent fee 367,557.00
Lawyer and legal cost 339,255.00
Social intercourse 268,305.00
Auto fee 216,611.00
Repair fee 207,661.00
Securities management 203,032.00
Office expenses 181,537.00
Board of director 178,103.00
Insurance expenses 168,447.00
Property management 144,303.00
Tel 86,619.00
Deposit 27,760.00
Travel fee 11,313.00
Other 180,196.00
Total 6,318,360.00
Notes
155
深圳中冠纺织印染股份有限公司 2012 年度报告全文
3. Cash received related to other investment activities
Unit：RMB
Items Amount
Notes
4.Cash paid related to other investment activities
Unit：RMB
Items Amount
Notes
5. Cash received related to financing activities
Unit：RMB
Items Amount
Notes
6. Cash paid related to financing activities
Unit：RMB
Items Amount
Notes
69. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Unit :RMB
Supplement Information Amount of current period Amount of previous period
-- --
I. Adjusting net profit to cash flow from operating activities
156
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Net profit -247,331.00 -17,423,512.00
Add: Impairment loss provision of assets 68,345.00 3,310,562.00
Depreciation of fixed assets, oil and gas assets and
3,514,391.00 198,051.00
consumable biological assets
Amortization of intangible assets 40,305.00 51,150.00
Loss on disposal of fixed assets, intangible assets and other
-5,174.00 522.00
long-term deferred assets
Loss of fair value fluctuation on assets 25,480.00 88,247.00
Financial cost -317,831.00 2,540,077.00
Loss on investment -2,582,153.00 10,602,528.00
Increased of deferred income tax liabilities -41,675.00 -84,022.00
Decrease of inventories 267,156.00
Decease of operating receivables -1,455,914.00 -443,772.00
Increased of operating Payable 617,149.00 3,853,150.00
Other 1,233,889.00
Net cash flows arising from operating activities -384,418.00 4,202,430.00
II. Significant investment and financing activities that
-- --
without cash flows:
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 52,227,262.00 53,399,316.00
Less: Beginning balance of cash 53,399,316.00 51,786,613.00
Net increase of cash and cash equivalents -1,172,054.00 1,612,703.00
（2）Information on acquiring or disposing subsidiary company and other business unit at this period.
Unit：RMB
Supplement Information Amount of current period Amount of previous period
1.Information on acquiring and other business unit -- --
2.Infornation on disposing subsidiary company and other
-- --
business unit
157
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（3）Composition of cash and cash equivalents
Unit ：RMB
Items Amount of current period Amount of previous period
52,227,262.00 53,399,316.00
I. Cash
66,684.00 13,567.00
Of which: Cash in stock
Bank savings could be used at any time 51,492,804.00 52,631,239.00
Other monetary capital could be used at any time 667,774.00 754,510.00
III. Balance of cash and cash equivalents at the period end 52,227,262.00 53,399,316.00
Notes
70. Notes to statement of change in owners‘ equity
Adjustments to prior year end balance of "other" project name and the amount of the adjustment, retroactive
adjustment generated by the business combination under common control, and other matters.
(VIII) Accounting treatment of asset securitization
1 On the principal of asset securitization transactions and its accounting, bankruptcy, isolation provisions
2. The Company does not have controlled over but in fact assume the risk situation of special-purpose body
Unit ：RMB
Total assets at the Total liabilities at Net profit at the Income during Net profit during
Name Remark
end period the end period end period the current period the current period
(IX) Related parties and related-party transactions
1. Parent company information of the enterprise
Unit ：RMB
The parent The
The parent
company ultimate
Legal Regis company Organizati
Related Registered of the controlling
Name Type representat Nature rated of the on Code
parties address Company's party of
ive capital Company‘
shareholdi the
s vote ratio
ng ratio Company
158
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Production
11/F,Union
and sale
Controllin Bulding,
Issue ofclothing
Union g Shennan Dong 1,123,887, Union 19247150
company and textiles,712 25.51% 25.51%
Holdings Shareholde Zhong Binggen Group 0
r and real
Road,Shen
estate
zhen
Developin
Import &
export
business
Union ―processing
Limited Bulding,She with
Union Actual Dong Union 19033795
liability nnan Zhong materials‖ 90,606,000 3.44% 3.44%
Group controller Bingen Group 7
Company Road, and
Shenzhen processing
with
imported
materials
Notes
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.Particulars of the subsidiaries
Unit :RMB
The
The
subsidiaries
Legal subsidiaries Organizatio
Related Registered Registrated of the
Name Type representati Nature of the n Code
parties address capital Company's
ve Company‘s
shareholdin
vote ratio
g ratio
HongKong Controlled Limited
2,400,002
Victor subsidiarie Liability HongKong Trade 100% 100%
（HKD）
Onward s Company
Limited
Nanhua Controlled Hu 85,494,700
Liability Shenzhen Product 54.82% 54.82% 618836600
Company subsidiaries Yongfeng （HKD）
Company
Shenzhen Controlled Limited Sun
Shenzhen Trade 3,000,000 51% 51% 799228355
East Asia subsidiaries Liability Zhiping
159
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Company Company
3. Information of Joint venture and Affiliated company
Unit：RMB
Regis rated
Legal Held Share Voting
Regis rated capital Related Orgabuzatui
Name Type representati Nature proportion( proportion(
address （RMB‘00 parties b code
ve %) %)
00）
I.Joint enterprise
II. Affiliated enterprise
Real estate
Exploiters,
Basis
Zhejiang constructio
Limited
Union Dong n 247,476,832 Affiliated
Liability Hanghou 25% 25% 757230553
Hangzhou Binggen Manageme .6 enterprise
Company
Bay nt and
Property
Manageme
nt
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the
Organization code
company
The related parties controlled the same
Shenye Union（HK）Co., Ltd.
Actual controller
The related parties controlled the same
Shenzhen Union Property Group Co., Ltd. 192199105
Actual controller
Notes
5. Related transactions.
（1）Related transactions on purchasing goods and receiving services
Unit：RMB
160
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Amount in current period Amount in last period
Content of related Pricing principle of
Related parties Proportio Proportio
transaction related transactions Amount Amount
n（%） n（%）
Related transactions on sale goods and receiving services
Unit:RMB
Amount in current period Amount in last period
Content of related Pricing principle of
Related parties Proportio Proportio
transaction related transactions Amount Amount
n（%） n（%）
（2）Related trusteeship or contracting
Related trusteeship or contracting in which the Company is the undertaker
Unit：RMB
Gains from the
Name of the Name of the Asset situation of
Start date Terminating date Pricing basis deal in report
employer undertaker the undertaker
period
Related trusteeship or outsourcing in which the Company is the employer
Unit ：RMB
Gains from the
Name of the Name of the Asset situation of
Start date Terminating date Pricing basis deal in report
employer undertaker the undertaker
period
Notes
（3）Related leasing
The Company is the lender
Unit：RMB
Rental
Name of the Name of the Category of asset
Starting date Stop date Pricing basis recognized in the
owner tenant for rent
period
161
深圳中冠纺织印染股份有限公司 2012 年度报告全文
The Company is the undertaker
Unit：RMB
Rental
Name of the Name of the Category of asset
Starting date Stop date Pricing basis recognized in the
owner tenant for rent
period
Notes
In the report year, the Company leased Room 1307 and 1308 of Union Building owned by Union Group. In
November 2012, The term of tenancy is from November 1, 2012 to October 31, 2014. The monthly rent is RMB
6960. The rent was determined according to market price.
（4）Status of related party guarantee
Unit：RMB
Whether or not the
Guarantor The warranted party Amount Starting date Stop date guarantee has been
fulfilled
Notes
（5）Related party funds
Unit：RMB
Related parties Amount of demolition Starting date Stop date Notes
Below in
Lend out
（6）The information of asset transfer, debt restructured of the related parties
Unit ：RMB
Pricing principle Amount in current period Amount in last period
Content of related
Related parties Type of related Proportio Proportio
transaction Amount Amount
transactions n（%） n（%）
（7）Other Relationships Transactions
6. Payables and receivables of the related party
Listed company related party fund
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Unit：RMB
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shenye Union（HK）
Account receivable 299,428.00 299,428.00 299,354.00 299,354.00
Co., Ltd.
The listed company Payables of the related party
Unit：RMB
Amount at year end Amount at year beginning
Name Related party
Other payable Union Development Group 24,748,412.00 23,159,803.00
Shenzhen Union Property
Other payable 700,734.00 700,734.00
Group Co., Ltd.
(X). Share payment
1.Overall situation of share payment
Unit ：RMB
Notes
2.Share payment settled in term of equity
Unit：RMB
Notes
3.Share payment settled by cash
Unit：RMB
Notes
4.Service paid by shares
Unit：RMB
5.Revising and termination of share payment
(XI.) Subsequent events
1. Liabilities formed from pending lawsuit and mediation and its financial impact
On June 4, 2012, The company has instituted court action against below three companies at Jiangsu Province
Higher People's Court, and asked to terminate the contracts and agreements signed with Nanjing East Asia Textile
Printing & Dyeing Co., Ltd., Nanjing East Asia Investment & Development Group Limited and Hong Kong
Yiuchun Limited, who shall pay RMB47,922,902.92 to the company for the pecuniary loss of implicative
163
深圳中冠纺织印染股份有限公司 2012 年度报告全文
compensation and undertake the costs of litigation. As of December 31, 2012, Jiangsu Higher People's Court did
not give a judgement.
2. For other units to provide debt guarantees, forming of contingent liabilities and the financial impact.
Other liabilities and their financial impact:
(XII). Commitment events.
1.Importance commitment events
The external investment contracts and the related financial expenditures which have signed or not yet completely
fulfilled.
By December 31, 2012,The Group still has the major external investments RMB 30 million which have signed but
still not paid, as follows:
Name of investment projects Contractual Prepaid Unpaid investment Expected Remarks
investment investment amount investment
amount amount period
Invest Nanjing East Asia 30 million - 30 million Can not be relocated
Textile Co., Ltd with
Unsureness because the fields
machinery and equipments
uncompleted
2.The big contract which has been signed or is ready to be carried out
By December 31, 2012, The Group still has big contract which has been signed but not paid, a total of RMB
1.71 million, as follows:
Name of Contractual Prepaid Unpaid Expected investment Remarks
investment projects investment amount investment investment period
amount amount
location of 1,710,000 855,000 855,000
Can not be relocated
production
Unsureness because the fields
equipments as a
whole uncompleted
Except for the events described above, As of December 31, 2012, the Group has no other significant
commitment events.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
2. Information guaranteed at the former period.
The company has no commitment information guaranteed at the former period.
(XIII). Post-balance-sheet events
1. Statement on material post-balance-sheet events
Unit ：RMB
Amount of effect on the
Reasons that the amount of the
Items Content financial status and operating
effect can not be estimated
outcomes
2.Statement on profit distribution in post balance sheet period
Unit:RMB
3.Statement on other issues in post balance sheet period
There is no disclosure of the Post-balance-sheet of the Company.
(XIV) Other Important events
1. Non-monetary asset exchange
2. Liabilities recombination
3. Enterprise consolidation.
4. Leasing
Type Year-end balance Year-beginning balance
Cost 96,920,525 96,912,003
House, Building 96,920,525 96,912,003
Accumulated amortization 65,879,041 62,538,552
House, Building 65,879,041 62,538,552
Impairment provision
House, Building
Book value 31,041,484 34,373,451
House, Building 31,041,484 34,373,451
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
5. Financial instruments issued outside and can be transferred to stock at end period.
6. Annuity Plan content and significant changes
Unit:RMB
Accumulated
Impairment accrued
Amount in Gain/loss from change of fair value
Items during current Amount in year-end
year-beginning change of fair value accounted into
period
equity
Financial assets
Financial assets
calculated according to
fair value whose change
68,900.00 -68,900.00
is accounted for as profits
or losses for current
period
Trading financial assets 703,055.00 48,487.00 751,542.00
Total 771,955.00 -68,900.00 48,487.00 0.00 751,542.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00
7.Financial assets and financial liabilities by foreign currency
Unit：RMB
Accumulated
Impairment accrued
Amount in Gain/loss from change of fair value
Items during current Amount in year-end
year-beginning change of fair value accounted into
period
equity
Financial assets
Financial assets calculated
according to fair value
whose change is 68,900.00 -68,900.00
accounted for as profits or
losses for current period
Trading financial assets 703,055.00 48,487.00 751,542.00
Subtotal 771,955.00 -68,900.00 48,487.00 751,542.00
Financial liabilities 0.00 0.00
166
深圳中冠纺织印染股份有限公司 2012 年度报告全文
8. Annuity plan and significant changes
9.Other
Except that Shenzhen East Asia Victor Onward Textile Printing and Dyeing Co., Ltd. is still operating
normally, other 5 subsidiaries controlled by the Company have stopped operation or are maintaining daily
operation by house property lease. It plans to invest in Nanjing East Asia Textile Printing and Dyeing Co., Ltd.
with part of machinery and equipment in 2007, Due to the reason on the side of the other party of joint venture
and change of industry prospect. This investment plan is being discontinued at present.
Up to the present, the project has been delayed for 6 years. The difficulties for joint venture projects have
constantly increased. To solve the problem of idling of equipment, invigorate relevant assets and facilitate the
Company's subsequent development,，On June 4, 2012, The company has instituted court action against below
three companies at Jiangsu Province Higher People's Court, and asked to terminate the contracts and agreements
signed with Nanjing East Asia Textile Printing & Dyeing Co., Ltd., Nanjing East Asia Investment & Development
Group Co., Ltd. and Hong Kong Yaojunxing Co., Ltd., who shall pay RMB47,922,902.92 to the company for the
pecuniary loss of implicative compensation and undertake the costs of litigation. As of December 31, 2012,
Jiangsu Higher People's Court did not give a judgement.
(XV).Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
Unit：RMB
Year-end balance Year-beginning balance
Book Balance Provision for bad debts Book Balance Provision for bad debts
Type
Propo
rtion Proporti Proporti Proporti
Amount % Amount on% Amount on% Amount on%
Account receivable with
significant specific
30.52
amount that were 3,504,328.00 3,504,328.00 100% 3,503,464.00 27.79% 3,503,464.00 100%
%
provisioned had debt
preparation separately
Receivables provided bad debt provision in groups
Account receivable with
69.48
minor individual amount 7,976,100.00 7,976,100.00 100% 7,974,647.00 63.25% 7,974,647.00 100%
%
but bad debt provision is
167
深圳中冠纺织印染股份有限公司 2012 年度报告全文
provided
Total 11,480,428.00 -- 11,480,428.00 -- 11,478,111.00 -- 11,478,111.00 --
Remarks on categories of receivable accounts：
Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □ Not applicable
Unit：RMB
Description of receivable accounts Book balance Bad debt provision Proportion Reason
Carnival Index International Ltd 1,098,820.00 1,098,820.00 100% Aging long
TAI YANG ENTERPRISE CO.,LTD. 1,010,296.00 1,010,296.00 100% Aging long
The company insol
Shengzhong Company 1,395,212.00 1,395,212.00 100% vent, to be cance
led
Total 3,504,328.00 3,504,328.00 -- --
Using age methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of
period
√Applicable □not Applicable
Unit： RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Fly Dragon International 573,677.00 573,677.00 100% Aging long
Grateful Textiles Co.,Ltd 566,801.00 566,801.00 100% Aging long
World Fabrica (Int'l) Ltd 465,241.00 465,241.00 100% Aging long
Shenzhen Fangzhou Aging long
446,352.00 446,352.00 100%
Textile Co., Ltd.
Ezhou Xiangya Aging long
351,500.00 351,500.00 100%
Garments Co., Ltd.
Tak Shing Buying Office Aging long
333,584.00 333,584.00 100%
Led
Starline Textile CO.Ltd. 332,316.00 332,316.00 100% Aging long
168
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Shenye Union（HK） Aging long
299,428.00 299,428.00 100%
Co.,Ltd.
Panther Fabric Ltd. 295,161.00 295,161.00 100% Aging long
Changshu Zhongjiang Aging long
Garments Import & 270,134.00 270,134.00 100%
Export Co., Ltd.
Victor Onward Aging long
245,621.00 245,621.00 100%
Textile(HK)Co., Ltd.
Nissho Iwai HK Corp Aging long
215,282.00 215,282.00 100%
Ltd.
Unimix Ltd. 192,939.00 192,939.00 100% Aging long
Tai Hing Linings Co Ltd 191,342.00 191,342.00 100% Aging long
Human Changpuan Aging long
185,981.00 185,981.00 100%
Garment
Ningbo Youngor Aging long
Fukurmura Uniforms 172,910.00 172,910.00 100%
Co., Ltd.
Win favour evelopment Aging long
146,636.00 146,636.00 100%
ltd
Speedy Textiles Co 146,538.00 146,538.00 100% Aging long
Other 2,544,657.00 2,544,657.00 100% Aging long
Total 7,976,100.00 7,976,100.00 -- --
（2）Switch back or regain of the account receivable in the reporting period
Unit：RMB
Accumulated provision
Basis for determination
Contents of account Reason for reversal of of bad debt reserve Amounts reversed or
of original bad debt
receivable recovery before reversal or recovered
reserve
recovery
No individually insignificant receivables with bad debt provision recognized individually at the end of period.
Unit ：RMB
Name Balance of book Bad debt Proportion(%) Reason
provision
Notes
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（3）Receivable accounts actually written off in the report period
Unit ：RMB
Whether arising
Nature of account
Name of unit Time of write-off Amount written off Reason for write-off from related
receivables
transaction
Notes
（4）Particulars about the receivable accounts due from shareholders with 5% or over of the Company‘s shares in
the report period
Unit：RMB
Amount in year end Amount in year-beginning
Name
Book balance Bad debt provision Book balance Bad debt provision
（5）Natures or contents of receivable accounts with large amount
（6） The front 5 units‘ information of the account receivable
Unit ：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Carnival Index
Non-related parties 1,098,820.00 Over 3 years 9.57%
International Ltd
TAI YANG
Non-related parties 1,010,296.00 Over 3 years 8.8%
ENTERPRISE CO.,LTD.
Shengzhong Company Subsidiary 1,395,212.00 Over 3 years 12.15%
Fly Dragon International Non-related parties 573,677.00 Over 3 years 5%
Grateful Textiles Co.,Ltd Non-related parties 566,801.00 Over 3 years 4.94%
Total -- 4,644,806.00 -- 40.46%
（7）Account receivable from Related parties
Unit：RMB
Unit name Relation with the company Amount Percentage of account receivable
Shengzhong Company Subsidiary 1,395,212.00 12.15%
Shenzhen East Asia Subsidiary 51,871.00 0.45%
170
深圳中冠纺织印染股份有限公司 2012 年度报告全文
The related parties controlled
Shenye Union（HK）Co., Ltd. 299,428.00 2.61%
the same Actual controller
Total -- 1,746,511.00 15.21%
（8）Account receivable that is not accord with expiration confirmation condition
（9）Account receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions.
2.Other receivable
（1）Other receivable
Unit：RMB
Year-end balance Year-beginning
Provision for bad
Book balance Provision for bad debts Book balance
debts
Classification
Propo Propo Propo Propo
Amount rtion( Amount rtion( Amount rtion( Amount rtion(
%) %) %) %)
Other Receivables with
major individual amount and 98.64
76,596,952.00 3,881,950.00 5.07% 76,582,183.00 98.4% 3,881,910.00 5.07%
bad debt provision provided %
individually
Other Receivables provided bad debt provision in groups
Deposit group 103,784.00 0.13% 298,760.00 0.38%
Subtotal of group 103,784.00 0.13% 298,760.00 0.38%
Other Account receivable
with minor individual
950,112.00 1.22% 950,112.00 100% 949,941.00 1.22% 949,941.00 100%
amount but bad debt
provision is provided
Total 77,650,848.00 -- 4,832,062.00 -- 77,830,884.00 -- 4,831,851.00 --
Statement on Other receivable:
Other Receivable accounts with large amount individually and bad debt provisions were provided
√Applicable □not Applicable
Unit：RMB
Description of other Book balance Bad debt provision Proportion Reason
171
深圳中冠纺织印染股份有限公司 2012 年度报告全文
receivable accounts
Victor Onward
59,715,002.00
Textile(HK)Co., Ltd.
Nanhua Company 13,000,000.00
Nanjing East Asia 1,313,410.00 1,313,410.00 100% Aging long
CCB.Guangdong Shunde Aging long
1,080,000.00 1,080,000.00 100%
branch
Changzhou Aging long
Dongfeng Textile
975,000.00 975,000.00 100%
Printing & dyeing
Equipment Co., Ltd.
The company insolv
Shenzhen East Asia 513,540.00 513,540.00 100%
ent, to be canceled
Total 76,596,952.00 3,881,950.00 -- --
Using age methods to provision for bad debts of other account receivable in group：
□Applicable √not Applicable
Using percentage balance method of provision for bad debts of account receivable in group：
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group：
□Applicable √not Applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of
period
√Applicable □not Applicable
Unit：RMB
Name Book balance Bad debts Provision proportion% Reason of provision
Victor Onward
Textile(HK)Co., 694,122.00 694,122.00 100% Aging long
Ltd.
Shanghai Huayinke
Trade Industry Co.,
180,000.00 180,000.00 100% Aging long
Ltd.
Shenzhen
Environmental
35,000.00 35,000.00 100% Aging long
Management System
Certification Center
Shenzhen Design
30,000.00 30,000.00 100% Aging long
Institute of Ministry
172
深圳中冠纺织印染股份有限公司 2012 年度报告全文
of Machinery
Industry Shanghai
Branch
Other 10,990.00 10,990.00 100% Aging long
Total 950,112.00 950,112.00 -- --
（2）Switch back or regain of the other account receivable in the reporting period
Unit ：RMB
Bad debt provision
Description of the Other Reason to write back Basis of original bad Amount written back or
provided before writing
receivable accounts or retrieve debt provision retrieved
back or retrieving
Total -- -- 0.00 --
Other Receivable account with large amount, or minor amount but on which bad debt provisions are provided individually at end of
period：
Description of the
Book balance Amount of bad debt Providing rate（%） Reason
receivable accounts
Total 0.00 0.00 -- --
Remarks on receivable accounts with minor single amount but with greater risks after combining with accounts
with similar risks:
（3）Other receivable accounts actually written off in the report period
Unit：RMB
Property of the Reason of writing Occurred under related
Name Date of written off Amount written off
receivable account off relationship
Total -- -- 0.00 -- --
Statement on writing off of other receivable accounts：
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company‘s
shares in the report period
Unit:RMB
Balance at the period end Balance in year-begin
Name
Book balance Amount of bad debts Book balance Amount of bad debts
Total 0.00 0.00 0.00 0.00
173
深圳中冠纺织印染股份有限公司 2012 年度报告全文
（5）Natures or contents of other receivable accounts with large amount
（6） The front 5 units‘ information of Other account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Victor Onward Subsidiary
59,715,002.00 Over 3 years 76.9%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 13,000,000.00 Over 3 years 16.74%
Nanjing East Asia Non-Related parties 1,313,410.00 Over 3 years 1.69%
CCB.Guangdong Shunde
Non-Related parties 1,080,000.00 Over 3 years 1.39%
Branch
Changzhou Dongfeng
Textile Printing & dyeing Non-Related parties 975,000.00 Over 3 years 1.26%
Equipment Co., Ltd.
Total -- 76,083,412.00 -- 97.98%
⑺The accounts receivable from the Related parties
Unit：RMB
Name Relation with the Company Amount Proportion(%)
Victor Onward
Subsidiary 59,715,002.00 76.9%
Textile(HK)Co., Ltd.
Nanhua Company Subsidiary 13,000,000.00 16.74%
Shenzhen East Asia Subsidiary 513,540.00 0.66%
Total -- 73,228,542.00 94.3%
（8）Other account receivable that is not accord with expiration confirmation condition is none
（9）Other receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions.
3. .Long –term stocks equity investment
Unit ：RMB
Accounti Initial Original Ending Sharehold Voting Explanati Current Cash
Name change Devalue
ng investmen balance Balance ing right on of devalue bonus
174
深圳中冠纺织印染股份有限公司 2012 年度报告全文
method t cost proportio proportio diffidence
n in the n in the between
investee investee sharehold
ing
proportio
n and
voting
right
proportio
n in
investee
Victor
Onward
Cost 2,411,282 21,214,21 21,214,21
Textile(H 100% 100% 0.00 0.00 0.00
method .00 2.00 2.00
K)Co.,
Ltd.
Nanhua Cost 23,082,83 15,574,74 15,574,74
54.82% 54.82% 0.00 0.00 0.00
Company method 1.00 1.00 1.00
Shenzhen Cost 1,530,000 1,252,900 1,252,900 1,252,900
51% 51% 0.00 0.00
East Asia method .00 .00 .00 .00
27,024,11 38,041,85 38,041,85 1,252,900
Total -- 0.00 -- -- -- 0.00 0.00
3.00 3.00 3.00 .00
Notes
4. Business income and Business cost
（1）Business income and business cost
Unit：RMB
Items Amount of current period Amount of previous period
2,834,664.00 1,529,480.00
Income from Business income
0.00 0.00
Other Business income
Total 2,834,664.00 1,529,480.00
Business cost 1,585,723.00 478,671.00
（2）Main business（Industry）
Unit：RMB
175
深圳中冠纺织印染股份有限公司 2012 年度报告全文
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Textile Industry 1,266,777.00 1,248,550.00
Rent 1,567,887.00 337,173.00 1,529,480.00 478,671.00
Total 2,834,664.00 1,585,723.00 1,529,480.00 478,671.00
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Sales adhesive short fiber 1,266,777.00 1,248,550.00
Rent 1,567,887.00 337,173.00 1,529,480.00 478,671.00
Total 2,834,664.00 1,585,723.00 1,529,480.00 478,671.00
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 2,834,664.00 1,585,723.00 1,529,480.00 478,671.00
Total 2,834,664.00 1,585,723.00 1,529,480.00 478,671.00
（5）Total income and the ratio of operating income from top five clients
Unit:RMB
Name Business Income Proportion(%)
Zhejiang Helan Industry Co., Ltd. 1,266,777.00 44.69%
Shenzhen Nanshan Saint Laurent Wedding Photography 502,080.00 17.71%
Jishunda Automobile drier training Company 144,000.00 5.08%
Chen Shen 144,000.00 5.08%
Xia Yi 102,000.00 3.6%
Total 2,158,857.00 76.16%
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Notes
5. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current period Amount of previous period
Hold the investment income during from available-for-sale
6,045.00 13,965.00
financial assets
Total 6,045.00 13,965.00
（2）Long term equity investment calculated to cost method：
Unit：RMB
Name Amount of current Amount of previous Change cause
period period
Total 0.00 0.00 --
（3）Long term equity investment calculated via equity method
Unit ：RMB
Name Amount of current Amount of previous Change cause
period period
Total 0.00 0.00 --
Notes
6. Supplement information of Consolidated Flow Statement
Unit：RMB
Items Amount of current
Amount of previous period
period
1. Adjusting net profit to net cash flow in operating activities: -- --
Net profit -2,566,647.00 -6,258,858.00
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Add： Provision for impairment of assets 211.00 4,731,272.00
Depreciation of fixed assets, oil and gas assets and consumable
337,173.00 5,752.00
biological assets
Amortization of intangible assets 40,305.00 52,418.00
The losses on the disposal of fixed assets, intangible assets and other
-1,466,506.00 522.00
long-term assets
Loss of fair value fluctuation on assets 25,480.00 88,247.00
-973,152.00 1,089,583.00
Financial cost
-6,045.00 -13,965.00
Loss on investment
Decrease of deferred income tax assets -31,783.00
Decrease of inventories 267,155.00
Decrease of operating receivable -1,455,914.00 2,639,395.00
Increase of operating receivables 39,061.00 135,785.00
Other -3,816,714.00
Net cash flows arising from operating activities -4,219,658.00 -1,111,191.00
II. Significant investment and financing activities that without cash
-- --
flows
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 17,293,509.00 21,483,163.00
Less: Beginning balance of cash equivalents 21,483,163.00 23,577,186.00
Net increase of cash and cash equivalents -4,189,654.00 -2,094,023.00
7. Reversal purchase of the assess and liabilities booked at evaluated value
Reversal purchase of the assess under assessed value, liabilities information.
Unit :RMB
To determine the fair Fair value calculation
Items Fair value Original book value
value method process
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
Reversal purchase of the assess under assessed value, liabilities information.
Unit:RMB
long-term equity investment amount from Long-term equity investment Fair value
Items
reverse purchase calculation process
(XVI). Supplement information
1. Return on net assets and earnings per share
Unit :RMB
Earnings per share（RMB）
Return on net assets .
Profit of the report period
Weighted（%）
Basic earnings per share Diluted gains per share
Net profit attributable to the Common stock
-0.21% -0.0015 -0.0015
shareholders of Company.
Net profit attributable to the Common stock
shareholders of Company after deducting of 0.25% 0.0018 0.0018
non-recurring gain/loss.
2. The anomalies and the explanation of our main financial statements project
The unusual amount or the abnormal changes in the comparative period in the Balance Sheet project
Items Amount at the Amount in Chaged Remark
period end year-begin （%）
Trade financial assets 68,900 -100.00 Decrease due to the Company' sales of
stocks it held
Bill receivable 1,500,000 100.00 In the report year, the sales of viscose
staple fiber were settled by using bills.
Prepayments 176,443 27,548 540.49 Increase due to uncompleted prepayment
of decoration expenses by Victor Onward
Hong Kong, a subsidiary of the Company,
in the report year.
Inventories 101,536 162,457 -37.50 Decrease due to provision for diminution
in value of inventories in the report year.
Employees‘ wage 766,680 590,220 29.90 Due to non-payment of unpaid
payable remuneration for the board of directors at
the end of the period.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
The unusual amount or the abnormal changes in the items of the income statement
Items Amount at the Amount in Chaged Remark
period end year-begin （%）
Business income 11,095,669 9,850,484 12.64 The Company's sales of viscose
staple fiber in the report year caused
the increase of sales income.
Business cost 5,413,356 4,269,140 26.80% Purchasing cost correspondingly
increased due to sales of viscose
staple fiber.
Financial expenses -444,174 316,201 -240.47 Exchange gains increased due to the
change of base currency.
Asset impairment 68,345 3,310,562 -97.94 Provision for impairment loss of
loss fixed assets was made in the
previous year but there was only a
small amount of such provision in
the report year.
Investment gain 2,582,153 -10,602,528 -124.35 The investment income received
increased due to the change of
earnings of affiliated companies of
Development Hong Kong (a
subsidiary of the Company) in the
report year.
Less：Non-business 582,915 8,088 7107.16 In the report year, the Company
expenses officially brought an action against
the companies including Nanjing
East Asia Textile Printing and
Dyeing Co., Ltd. in respect of its
investment in Nanjing project and
the legal costs thus paid increased.
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深圳中冠纺织印染股份有限公司 2012 年度报告全文
X1. Documents available for inspection
1.The Annual report 2012;
2. Accounting statements with signatures and seals of the legal representative and financial principal and chief of
accounting Dept;
3.Originals of all documents and manuscripts of public Notices of the Company Disclosed in public in the
newspapers as designated by China Securities Regulatory Commission;
4. The articles of Association.
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