Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
1
Shenzhen Textile (Holdings) Co., Ltd.
Quarterly Report for the First Quarter of 2010 (Full text)
1 Important notes
1.1 The Board of Directors 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.
1.2 The financial report of the Company in this quarterly Report period has not been audited.
1.3 Chairman of the Board of Directors Wang Bin, General Manager Zhu Jun and Assistant General accountant
Liu Yi represent and warrant the financial and accounting report in the quarterly is true and complete.
2 Basic Information
2.1 Highlights of Accounting Data and Financial Indicators
Unit RMB
At the period-end of this
At the period-end of last
year Increase /decrease
Total assets RMB 779,590,147.74 802,562,856.93 -2.86%
Owner’s equity attributable to the parent
company(RMB)
505,832,250.84 493,246,297.27 2.55%
Stock capital(Share ) 245,124,000.00 245,124,000.00 0.00%
Net assets per share attributable to the parent
company(RMB/share)
2.06 2.01 2.49%
Amount of current period
Amount of the same period
in last year Increase /decrease
Total turnover(RMB) 135,028,979.97 56,892,294.68 137.34%
Net profit attributable to owners of parent
company(RMB)
11,388,831.98 9,415,730.92 20.96%
Net cash flow arising from operating
activities(RMB)
-4,470,633.95 6,003,764.07 -174.46%
Net cash flow per share arising from operating
activities(RMB/share)
-0.02 0.02 -200.00%
Basic earnings per share(RMB/share) 0.05 0.04 25.00%
Diluted earnings per share(RMB/share) 0.05 0.04 25.00%
Weighted average return on equity % 2.28% 2.23% Increase by 0.05%
Weighted average return on equity after
deducting non-recurring gains and losses %
1.09% 0.86% Increase by 0.23%
Items of non-current gains and losses
Year begin to end of report
period
Government grant recognized in current year, except for those acquired in the ordinary course of
business or granted continuously in certain standard quota according to relevant national laws and
regulations
403,300.00
In addition to the normal operations associated with the company effective hedging business holders of
tradable financial assets. Trading financial liabilities resulting from changes in fair value gains and
losses, as well as the disposal of trading financial assets , trading financial liabilities and financial
assets available for sale achieved an investment return.
7,224,968.96
Other non-operating income and expense other than above-mentioned -607.68
Influence amount of income tax -1,678,085.48
Total 5,949,575.80Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
2
Explanation on important items of extraordinary gains and losses:
Except the effective hedging business related to normal operation of the Company, the gains and losses on change of fair value arising
from holding tradable financial assets and tradable financial liabilities and investment income from disposal of tradable financial
assets, tradable financial liabilities and financial assets available for sale are mainly the income from the Company's sales of shares of
Shenzhen Victor Onward SZ000018 .
2.2 Top 10 shareholders and top 10 holders of unconditional shares
Unit Shares
Total number of shareholders at the end of report
period
18,756
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Full name of shareholder
Amount of tradable shares with
unrestricted conditions held at the end of
report period
Type of shares
Shenzhen Investment Management Co., Ltd. 144,977,052 RMB Common shares
Shenzhen Zhongnan Liangkang Technology Co.,
Ltd.
1,072,604 RMB Common shares
Li Yijun 1,012,100
Foreign shares placed in domestic
exchange
Sun Xiufang 940,857 RMB Common shares
Liu Hong 760,000
Foreign shares placed in domestic
exchange
Zheng Bang(Sheng) 741,248
Foreign shares placed in domestic
exchange
Zheng Chuangjian 674,600
Foreign shares placed in domestic
exchange
Li Xiaoding 639,665 RMB Common shares
Jin Mingfei 621,950
Foreign shares placed in domestic
exchange
Jiang Guohua 560,000
Foreign shares placed in domestic
exchange
3 Significant Events
3.1 Particular about large-margin change of main accounting statement item and financial index and its
reason.
applicable not applicable
(1) Bills receivable increased by 53.41% over the beginning of the previous year mainly due to the increase of banker's acceptance bills
received by Shenzhen Shengbo Optoelectronic Technology Co., Ltd.;
(2) Payment in advance and advance collections respectively decreased by 51.75% and 35.33% over the beginning of the previous year
mainly because losses and gains were brought forward after the finish of the performance of export trade contracts;
(3) Other receivables decreased by 32.04% over the beginning of the previous year mainly due to receipt of export rebates;
(4) Accounts payable decreased by 38.55% over the beginning of the previous year mainly due to payment to suppliers for goods;
(5)Total operating income Total operating cost Sales expenses Administration expenses and Financial expenses respectively
Increased by 137.34 ,173.85 ,45.04 ,57.84 and 56.17 over the beginning of the previous year mainly due to change of
consolidation scope and consolidation of statements of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.;
(6) The income from investment in affiliated companies and joint venture companies increased by 137.31% year on year mainly
because consolidation scope changed and the loss of investment in Shenzhen Shengbo Optoelectronic Technology Co., Ltd. was
accounted for on equity basis in the same period of previous year;
(7)Other composite income decreased by 82.73% year on year mainly due to decrease of gains after change of fair value of financial
assets available for sale;
(8)Cash received from sales of goods and rendering of services increased by 83.57% year on year mainly due to change of
consolidation scope and consolidation of statements of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.;
(9)Refund of taxes and levies increased by 109.52% year on year mainly due to increase of export rebates actually received in theShenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
3
report period;
(10)Other cash received relating to operating activities decreased by 68.66% year on year mainly due to decrease of other current
accounts received;
(11)Cash received from sales of goods or rending of services, Cash paid to staffs or paid for staffs and Taxes paid respectively
Increased by 122.47 ,49.74 and 103.57 over the beginning of the previous year mainly due to change of consolidation scope and
consolidation of statements of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.;
(12)Net cash flows from operating activities decreased by 174.46% mainly due to sharp increase of cash paid for purchase of
commodities;
(13)Cash received from recovery of investment decreased by 51.48% year on year mainly due to decrease of sales of financial assets
available for sale in the report period;
(14)Cash paid for the acquisition or construction of fixed assets, intangible assets and other long-term assets increased by 549.87%
year on year mainly due to increase of expenditure on polarizer sheet TFT-LCD project;
(15)Net cash flows from investing activities decreased by 90.09% year on year mainly due to increase of expenditure on polarizer sheet
TFT-LCD project;
(16)Cash received from obtaining loans decreased by 100% year on year mainly due to no new bank loans in the report period;
(17)Cash paid for repayment of debts decreased by 93.79% year on year mainly due to decrease of total amount of loans repaid to
banks;
(18)Cash paid as dividend, profit, or interests increased by 116..33 mainly due to change of consolidation scope and consolidation of
statements of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.;
(19)Net cash flow generated by financing decreased by73.14 year on year mainly due to decrease of total amount of loans repaid to
banks;
(20)Net increase in cash and cash equivalents decreased by 1412.86% year on year mainly due to increase of cash payment for
operating activities caused by increase of raw material reserve owing to expectation of rise in price of raw materials and increase of
investment expenditure on TFT - LCD polarizer sheet project.
3.2 The progress of significant events and influence, as well as the analysis and explanation on resolving
proposal.
applicable not applicable
To develop the project of polarizer sheet for TFT-LCD , the Company started the work concerning private issue of A shares and
planned to raise not more than RMB 850 million through IPO. The IPO proceeds will all be used for the construction of the phase-I
project of polarizer sheet for TFT-LCD (Refer to the Company's announcement about this private issue disclosed on October 10, 2009
for details). The Company submitted the Application of Shenzhen Textile (Holding) Co., Ltd. for Private Issue of A Shares to CSRC
on December 21, 2009 and obtained the notification of accepting application for administrative permission issued by CSRC on
December 23, 2009.
At present, the Company's work relating to private issue of A shares is normally under way, which is awaiting examination and
approval by CSRC.
3.3 The fulfillment of the commitment made by the Company , shareholders and the actual controller
applicable not applicable
Items of commitments Promisee Content of commitments Implementation
Commitments for share structure reform None None None
Commitment of Share conditional
subscription
Shenzhen
Investment
Management Co.,
Ltd.
Commitments :The company temporarily did
not have plan to sell unfrozen negotiable
shares that account for 5% of total share
capital through securities trading system
within six months after unfreezing of
restricted shares. If the company planned to
sell shares through securities trading system
and the quantity of shares to be sold within
sixth month from the first sale reaches 5% of
total share capital, the company would
publicly disclose prompting announcement of
sale through the Company within two trading
days before the first sale;
II. The company would strictly abide by
Guiding Opinions on Assignment of Unfrozen
Existing Shares of Listed Companies and
relevant provisions of relevant transaction
rules of Shenzhen Stock Exchange.
Under fulfillment.Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
4
Commitments made in Acquisition Report
or Reports on Change in interests
None None None
Commitments made in Material assets
Reorganization
None None None
Commitments made in issuing None None None
Other commitments Including:
supplementary commitments
None None None
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report period to
be loss probably or the warning of its material change compared with the corresponding period of the last
year and explanation of reason.
applicable not applicable
3.5 Other significant events need to be explained
3.5.1 Securities investment
applicable not applicable
3.5.2 Reception of investigations, communications ,or interviews company held in the report period.
Reception date
Reception
plane
Reception
Mode
Reception Object
Discussion issue and offered
information
January 1, 2010- March
31, 2010
The Company
Telephone
Individual Investment 10
more times
Operating status and development
prospect of the Company, Company
intends to issue stock to raise private
capital investment projects,
January 13, 2010 Research Wanlian Securities
Company intends to issue stock to raise
private capital investment projects
January 21, 2010 Research Marvest fund
February 1, 2010 Research Guosen Securities
March 18, 2010 Research New times securities
3.5.3 Explanation or other significant events
applicable not applicable
3.6 Derivative Investment
applicable not applicable
3.6.1 Particulars about derivatives investment held at the end of report period
applicable not applicable
4 Appendix
4.1 Balance sheet
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. March 31, 2010 Unit RMBShenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
5
Items
Year-end balance
Year-beginning balance
Consolidated Parent company Consolidated Parent company
Current asset
Monetary fund 93,980,218.98 22,784,832.45 101,340,314.95 19,539,632.30
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 2,660,869.59 1,734,495.00
Account receivable 46,158,262.81 39,220,977.43
Prepayments 14,581,445.68 1,214,435.00 30,220,380.81 1,282,835.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable
Dividend receivable
Other account receivable 15,297,767.29 75,458,506.43 22,511,461.20 69,484,161.49
Repurchasing of financial
assets
Inventories 45,779,634.78 42,304,486.48
Non-current asset due in 1 year
Other current asset
Total of current assets 218,458,199.13 99,457,773.88 237,332,115.87 90,306,628.79
Non-current assets
Loans and payment on other’s
behalf disbursed
Disposable financial asset 97,627,403.60 97,627,403.60 97,228,693.20 97,228,693.20
Expired investment in possess
Long-term receivable
Long term share equity
investment
46,122,278.91 224,599,326.77 45,918,671.87 224,395,719.64
Property investment 132,932,609.23 122,220,181.53 134,424,401.74 123,564,938.19
Fixed assets 213,258,849.79 73,133,329.35 220,135,667.48 78,212,675.45
Construction in progress 5,222,072.42 969,608.55 1,586,349.75
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 49,266,829.90 2,055,829.90 49,561,412.72 2,153,312.72
R & D petrol
Goodwill 9,614,758.55 9,614,758.55
Long-germ expenses to be
amortized
555,660.67 586,980.59
Differed income tax asset 6,531,485.54 4,417,470.06 6,173,805.16 4,361,844.93
Other non-current asset
Total of non-current assets 561,131,948.61 525,023,149.76 565,230,741.06 529,917,184.13
Total of assets 779,590,147.74 624,480,923.64 802,562,856.93 620,223,812.92Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
6
Current liabilities
Short-term loans 100,000,000.00 90,000,000.00 101,234,495.00 90,000,000.00
Loan from Central Bank
Deposit received and hold for
others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 31,933,466.36 400,488.57 51,968,320.22 7,441,753.57
Advance payment 17,772,729.57 639,024.58 27,483,029.17 639,024.58
Selling of repurchased financial
assets
Fees and commissions
receivable
Employees’ wage payable 11,313,103.08 4,387,339.17 13,379,439.90 4,961,087.87
Tax payable 5,859,617.30 2,615,670.30 4,618,939.41 872,772.47
Interest payable 93,488.75
Dividend payable
Other account payable 43,788,135.99 59,801,471.98 47,289,214.16 60,211,348.00
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1
year
Other current liability
Total of current liability 210,667,052.30 157,843,994.60 246,066,926.61 164,125,986.49
Non-current liabilities
Long-term loan 24,000,000.00 25,000,000.00
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 18,759,001.74 18,759,001.74 18,430,490.19 18,430,490.19
Other non-current liabilities 20,331,842.86 19,819,142.86
Total of non-current liabilities 63,090,844.60 18,759,001.74 63,249,633.05 18,430,490.19
Total of liability 273,757,896.90 176,602,996.34 309,316,559.66 182,556,476.68
Owners’ equity
Share capital 245,124,000.00 245,124,000.00 245,124,000.00 245,124,000.00
Capital reserves 120,378,429.24 111,795,447.45 119,181,307.65 110,598,325.86
Less Shares in stock
Special Reserve
Surplus reserves 31,832,178.67 31,832,178.67 31,382,130.13 31,382,130.13
Common risk provision
Undistributed profit 108,497,642.93 59,126,301.18 97,558,859.49 50,562,880.25
Different of foreign currency
translation
Total of owner’s equity belong to 505,832,250.84 447,877,927.30 493,246,297.27 437,667,336.24Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
7
the parent company
Minor shareholders’ equity
Total of owners’ equity 505,832,250.84 447,877,927.30 493,246,297.27 437,667,336.24
Total of liabilities and owners’
equity
779,590,147.74 624,480,923.64 802,562,856.93 620,223,812.92
4.2 Profit statement
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. January-March 2010 Unit RMB
Items
Report period Same period of the previous year
Consolidated Parent company Consolidated Parent company
I. Total operating income 135,028,979.97 13,325,187.36 56,892,294.68 13,753,192.66
Including Operating income 135,028,979.97 13,325,187.36 56,892,294.68 13,753,192.66
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 129,626,362.96 10,407,643.41 52,554,109.05 8,430,487.02
Including operating cost 110,827,092.12 2,558,309.81 38,573,202.87 532,867.11
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 1,107,106.08 650,838.00 995,621.08 687,799.26
Sales expenses 3,810,297.42 3,178,774.25 367,701.55
Administration expenses 12,134,343.22 6,393,744.06 9,032,628.33 6,337,950.18
Financial expenses 1,208,544.03 551,910.03 773,882.52 504,168.92
Losses of devaluation of assets 538,980.09 252,841.51
Add changing income of fair
value
Investment income 8,166,384.93 8,166,385.02 7,087,669.04 7,087,669.04
Including Investment income
on affiliated company and joint
venture
203,607.13 248,779.60 583,092.56
Exchange income
III. Operating profit 13,569,001.94 11,083,928.97 11,425,854.67 12,410,374.68
Add non-operating income 403,300.00 755,990.70 755,265.70
less non-operating expense 607.68 12,054.65
Including disposal loss of
non-current assets
IV. Total profit 13,971,694.26 11,083,928.97 12,169,790.72 13,165,640.38
Less expense of income tax 2,582,862.28 2,070,459.50 2,754,059.80 2,516,509.56Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
8
V. Net profit 11,388,831.98 9,013,469.47 9,415,730.92 10,649,130.82
Net profit attributable to
owner’s equity of parent company 11,388,831.98 9,013,469.47 9,415,730.92 10,649,130.82
Minority shareholders’ gains
and losses
VI. Earnings per share
i basic earnings per share 0.05 0.04 0.04 0.04
ii Diluted earnings per share 0.05 0.04 0.04 0.04
VII. Other comprehensive income 1,197,121.59 1,197,121.59 6,932,663.41 6,932,663.41
VIII. Total comprehensive income 12,585,953.57 10,210,591.06 16,348,394.33 17,581,794.23
Total comprehensive income
attributable to the owner of the
parent company
12,585,953.57 10,210,591.06 16,348,394.33 17,581,794.23
Total comprehensive income
attributable minority shareholders
4.3 Cash flow statement
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. January-March 2010 Unit RMB
Items
Report period Same period of the previous year
Consolidated Parent company Consolidated Parent company
I. Cash flows from operating
activities
Cash received from sales of
goods or rending of services
149,306,624.47 11,328,503.73 81,334,936.47 10,682,044.59
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
asset disposal
Cash received as interest,
processing fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax returned 13,882,990.00 6,626,177.45
Other cash received from
business operation
988,951.16 1,662,905.59 3,155,768.90 2,569,763.01
Sub-total of cash inflow 164,178,565.63 12,991,409.32 91,116,882.82 13,251,807.60
Cash paid for purchasing of
merchandise and services
141,649,999.38 1,221,361.87 63,670,928.48 626,768.93Shenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
9
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
staffs
12,779,008.21 2,964,758.90 8,533,914.10 2,990,152.62
Taxes paid 5,840,030.08 863,042.29 2,868,872.45 492,604.04
Other cash paid for business
activities
8,380,161.91 8,453,096.74 10,039,403.72 3,949,129.30
Sub-total of cash outflow from
business activities
168,649,199.58 13,502,259.80 85,113,118.75 8,058,654.89
Cash flow generated by
business operation, net
-4,470,633.95 -510,850.48 6,003,764.07 5,193,152.71
II.Cash flow generated by
investing
Cash received from investment
retrieving
1,094,523.92 1,094,523.92 2,255,633.10 2,255,633.10
Cash received as investment
gains
8,697,771.08 8,205,176.71 7,900,279.15 7,438,448.20
Net cash retrieved from
disposal of fixed assets, intangible
assets, and other long-term assets
1,000.00
Net cash received from disposal
of subsidiaries or other
operational units
Other investment-related cash
received
Sub-total of cash inflow due to
investment activities
9,792,295.00 9,299,700.63 10,156,912.25 9,694,081.30
Cash paid for construction of
fixed assets, intangible assets and
other long-term assets
8,921,526.83 4,454,200.00 1,372,816.77 1,216,378.77
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 investment activities
8,921,526.83 4,454,200.00 1,372,816.77 1,216,378.77
Net cash flow generated by
investment
870,768.17 4,845,500.63 8,784,095.48 8,477,702.53
III.Cash flow generated by
financing
Cash received as investment
Incl: Cash received as
investment from minor
shareholdersShenzhen Textile (Holdings) Co., Ltd. Quarterly Report for the Frist Quarter of 2009(Full text)
10
Cash received as loans 25,000,000.00 25,000,000.00
Cash received from bond
placing
Other financing –related ash
received
Sub-total of cash inflow from
financing activities
25,000,000.00 25,000,000.00
Cash to repay debts 2,234,495.00 36,000,000.00 34,000,000.00
Cash paid as dividend, profit, or
interests
1,588,616.86 1,089,450.00 734,344.25 534,763.00
Incl: Dividend and profit paid
by subsidiaries to minor
shareholders
Other cash paid for financing
activities
2,500,000.00 2,500,000.00
Sub-total of cash outflow due
to financing activities
3,823,111.86 1,089,450.00 39,234,344.25 37,034,763.00
Net cash flow generated by
financing
-3,823,111.86 -1,089,450.00 -14,234,344.25 -12,034,763.00
IV.Influence of exchange rate
alternation on cash and cash
equivalents
62,881.67 7,099.04 7,099.04
V.Net increase of cash and cash
equivalents
-7,360,095.97 3,245,200.15 560,614.34 1,643,191.28
Add: balance of cash and cash
equivalents at the beginning of
term
101,340,314.95 19,539,632.30 84,022,925.18 35,807,908.88
VI. Balance of cash and cash
equivalents at the end of term
93,980,218.98 22,784,832.45 84,583,539.52 37,451,100.16
4.4 Auditor’ report
Auditor’s opinions: Not audited
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese
version shall prevail.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
April 28,2010
