Shenzhen Textile (Holdings) Co., Ltd.
Semi-Annual Report 2010
August 20102
Contents
Section I Important Notes
Section II Basic Information of the Company
Section III Change of Share Capital and Shareholding of Principal
Shareholders
Section IV Information about Directors, Supervisors and Senior
Executives.
Section V Report of the Board of Directors
Section VI Important Events
Section VII Financial Report (Uncensored)
Section VIII Documents Available for Inspection1
Section I Important Notes
The Board of Directors and Directors of the Company hereby guarantees that there are no false
records, misleading representation or important omissions in this report and shall assume joint and
several liability for the authenticity, accuracy and completeness of the contents hereof..
Wang Bin, Chairman of the Board, Zhu Jun,Geneal Manager and Liu Yi, Financial Manager
represent and warrant the financial and accounting report in the Semi-annual report is true and
complete.
The financial report of the semi-annual report has not been audited.
Section II Basic Information of the Company
I. Basic Information
1. Statutory name of the Company in Chinese:深圳市纺织（集团）股份有限公司
In English:SHENZHEN TEXTILE (HOLDINGS) CO., LTD.
English abbreviation:STHC
2. Legal Representative:Wang Bin
General Manager: Zhu Jun
3.Secretary of the Board of Directors : Chao Jin
Securities Affair Representative:Liao Ruiyan
Contact Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Zip code: 518031
Tel: 0755- 83776043
Fax: 0755- 83776139
E-mail：chaoj@chinasthc.com
liaory@chinasthc.com
4. Registered address of the Company: 6/F, Shenfang Building, 3 Huaqiang North Road, Futian District, Shenzhen
Office Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District, Shenzhen
Post Code: 518031
Website: http://chinasthc.com
E-mail : szfzjt@chinasthc.com
5. Newspapers selected by the Company for information disclosure: Securities Times and Hong
Kong Commercial Daily
Internet website designated by CSRC for publishing the Interim report of the Company:
http://www.cninfo.com.cn
The place where the Interim report is prepared and placed: The Secretariat of the Company
6.Stock exchange for listing: Shenzhen Stock Exchange
Stock abbreviation: Shen Textile A, Shen Textile B
Stock code : 000045, 200045
7. Other Relevant Information :
The date of first registration of the Company: August 1994
Registered Address: 6/F, Shenfang Building, No.3 Huaqiang North Road, Futian District,
Shenzhen
Registration No. of Legal Entity Business License: 4403011013060
Tax Registration No.: Di Shui Deng Zi No.: 4403041921737492
Guo Shui Deng Zi No.: 440301192173749
Certified public accountants retained by the Company: Name: Shenzhen Pengcheng Certified
Public Accountants
Business address：7/F, A Building, United Plaza, No.5022, Binhe Road, Futian
District,Shenzhen,China
II. Highlights of financial data and indicators
1.Highlights of financial data and indicators
Unit:RMB
End of the report
year
End of the
previous year
Increase /Decrease
（％）
Total assets 841,990,825.04 802,562,856.93 4.91%
Owners’ equity attributable to shareholders
of the listed company
494,968,243.93 493,246,297.27 0.35%
Share capital 245,124,000.00 245,124,000.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
2.02 2.01 0.50%
Report period（Jan
－June）
Same period of
the previous year
Increase /decrease over
the same period of the
previous year（％）
Total operating income 322,369,136.74 184,999,096.82 74.25%
Operating profit 26,044,164.29 26,398,204.20 -1.34%
Total profit 31,025,623.77 27,223,742.25 13.97%
Net profit attributable to shareholders of the
listed company
24,858,502.70 22,611,368.55 9.94%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
13,945,642.99 10,223,705.04 36.40%
Basic earnings per share(RMB/share) 0.10 0.09 11.11%
Diluted earnings per share(RMB/share) 0.10 0.09 11.11%
Return on equity（%） 4.92% 5.28% Decreased by 0.36%.
Net cash flow arising from operating
activities
2,414,949.85 12,841,942.65 -81.19%
Net cash flow per share arising from
operating activities (RMB/share)
0.01 0.05 -80.00%
2.Items and amount of non-recurring gains and loss
Unit：RMB
Item of non-recurring gains and losses Amount
The government subsidy recognized into current profit and
loss, except those government subsidies that closely related
4,982,567.163
to the Company ’ s business, according to national policies,
and according to standard unified quota or ration.
Except for effective hedging operations that relevant to the
Company ’ s normal business, the profits and losses from
fair value changes from held for trading financial assets and
held for trading financial liabilities, as well as the investment
gains from disposal held for trading financial assets 、held
for trading financial liabilities and available-for-sale
financial assets.
9,009,386.30
Other non operating income and expenses except from above
mentioned items
-1,107.68
Amount of influence of the above items on income tax. 3,077,986.07
Total 10,912,859.71
Notes：
(1)The amortizations of governmental subsidies recorded through loss or profit in this ccounting period are
RMB 600,000.00 of the “Special Fund for New Types of Flat Panel Display”, RMB 4,216,967.15 of the “Special
National Fund for New Hi-tech Research and Development Program (Program 863)”, RMB 49,600.01 of the loan
interest discount received from Shenzhen Finance Bureau and RMB 116,000.00 of the allowance from Futian
Commercial Chamber in this accounting period for attending Canton Fair.
(2)The investment income from financial assets available for sale is the income from the Company's sale of
shares of Shenzhen Victor Onward Textile Industrial Co., Ltd.
(3)The financial reports prepared by the Company according to domestic and international accounting
standards are consistent.
Section III Change of Share Capital and Shareholding of Principal Shareholders
I.Particulars about the shareholding of principal shareholders
The total number and the structure of the shares of the Company remained unchanged in the report period.
II.Total number of shareholders
As of June 30,2010, the Company had 16,703 shareholders in total including one shareholder of state-owned
shares, 9,583 shareholders of A shares and 7,120 shareholders of B shares.
III. Particulars about the shares held by the main shareholders
Particulars of the shareholding of the top ten shareholders as of June 30, 2010
Unit：Shares
Total of shareholders 16,703
Top 10 shareholders
Name of the shareholder
Properties of
shareholder
Share
proportion %
Total shares Conditional shares Pledged or frozen
Shenzhen Investment
Holdings Co., Ltd.
State-owned
legal person
59.14% 144,977,052 0 0
China Construction Bank
－China Huaxia Mixed
Dividend-seeking
Open-end Securities
Domestic non-
State-owned
legal person
0.96% 2,343,947 0 04
Investment Fund
Beijing Fringstan
Investment Consultation
Co., Ltd.
Domestic non-
State-owned
legal person
0.55% 1,349,119 0 0
China Construction Bank-
Huaxia income stock
Securities Investment
Fund
Domestic non-
State-owned
legal person
0.51% 1,245,792 0 0
Shenzhen Zhongnan
Liankang Technology Co.,
Ltd.
Domestic non-
State-owned
legal person
0.44% 1,072,604 0 0
Li Yijun
Foreign
natural person
0.31% 767,470 0 0
Liu Hong
Foreign
natural person
0.31% 760,000 0 0
Zheng Chuangjian
Foreign
natural person
0.28% 674,600 0 0
Sun Xiufang
Domestic
nature person
shares
0.26% 641,600 0 0
Jin Mingfei
Domestic
nature person
shares
0.25% 621,950 0 0
Top 10 holders of unconditional shares
Name of the shareholder Unconditional shares Type of shares
Shenzhen Investment Holdings Co., Ltd. 144,977,052 RMB Common shares
China Construction Bank－China
Huaxia Mixed Dividend-seeking
Open-end Securities Investment
Fund
2,343,947 RMB Common shares
Beijing Fringstan Investment Consultation
Co., Ltd.
1,349,119 RMB Common shares
China Construction Bank- Huaxia income
stock Securities Investment Fund
1,245,792 RMB Common shares
Shenzhen Zhongnan Liankang
Technology Co., Ltd.
1,072,604 RMB Common shares
Li Yijun 767,470
Foreign shares placed in domestic
exchange
Liu Hong 760,000
Foreign shares placed in domestic
exchange
Zheng Chuangjian 674,600
Foreign shares placed in domestic
exchange
Sun Xiufang 641,600 RMB Common shares
Jin Mingfei 621,950 RMB Common shares5
Notes to the related
relationship between the
top ten shareholders or
their concerted action
There is no relationship between shareholders holding state-owned legal person
shares and other shareholders in the above table. China Construction Bank － China
Huaxia Mixed Dividend-seeking Open-end Securities Investment Fund and China
Construction Bank- Huaxia income stock Securities Investment Fund are both funds
managed by Huaxia Fund Management Co., Ltd. Except this, the Company does not
know whether there is relation between social public shareholders or whether they are
persons taking concerted action defined in Regulations on Disclosure of Information
about Shareholding of Shareholders of Listed Companies.
IV. The controlling shareholder of the Company did not change in the report period.
Section IV Information about Directors, Supervisors and Senior Executives.
I.In the report period, Shares held by directors, supervisors and senior executives of the Company
Unit：Shares
Name Position Quantity of shares held at
beginning of period
(Nature of share)
Quantity of shares held at
the end of period (Nature
of share)
Li Jingqiang Director 63,450（A） 63,450（A）
Zhou Meirong Supervisor 7,050（B） 7,050（B）
Zhu Meizhu Deputy General
Manager
93,000（B） 93,000（B）
Except the above personnel, other directors, supervisors and senior executives of the Company did not hold
the shares of the Company.
II. Information about changing Directors, Supervisors and Senior Executives.
1.As deliberated in the general meeting of Year 2009, the Board of Directors was reelected: Wang Bin ,Zhu
Jun ,Gao Guoshi and Wang Yongjian elected as Director of the fifth Board of directors and Zhang Yong ,Shi
Weihong and Yang Shibin as Independent Director of the fifth Board of directors.
Li Jingqiang ,Wang Peng, Yang Jichao, Liu Xiangqing and Huang Hui are no longer Directors of the company.
2.As deliberated in the general meeting of year 2009, The Supervisor committee was reelected: Wang Junzhao
and Li Wei elected as Supervisor of the fifth supervisory committee(April 23, 2010), The Employee Committee
elected Zhou Meirong as Employee Representative Supervisor.
Gao Zuofu is no longer superisor of the Company.
3.As deliberated in the first meeting of the fifth board of directors, Wang Bin was elected as Chairman of the
Company and Zhu Jun was hired as General Manager, Feng Junbin, Zhang Hong and Zhu Meizhu all as Deputy
General Manager of the Company, Liu Yi as head of Finance and Manager of Finance Department and Chao Jin as
secretary to the Board of directors while Gao Guoshi no longer held the post of Deputy General Manager.
4.As deliberated in the first meeting of the fifth Supervisory committee, Wang Junzhao was elected as
Chairman of the Supervisory committee.
Section V Report of the Board of Directors
I. Main operation of the Company
The Company is mainly engaged in the production and trading of textile products, garments , Polarizer sheet
for LCD and relevant products and in the lease and management of properties.6
In the report period, The company took efforts in enhancing its efficiency, developing markets, improving services,
increasing revenues and cutting expenses, focusing on industrial transformation, adopting reasonable, step-by-step
operating and developing strategies, taking good control of the operating and planning management and process
monitoring, strictly executing the operating performance assessment and the incentive and punishing measures to
reduce the effects of unfavorable economic factors and realized the operating budget target for the first half year. In
the reporting period, the company realized the revenues of RMB 320.5847 million from its main business, 74.88%
up compared to the same period of last year, and achieved the net profits of RMB 24.8585 million, which is
attributable to the parent company, 9.94% up compared to the same period of last year.
1.Industry: In the report period, the manufacturing income amounted to RMB 129.3434 million, 489.63% up
compared to the same period of last year; and the total profit was RMB 9.6496 million, 493% up compared to the
same period of last year. The increase of sales revenues mainly came from the business combination with
Shenzhen Shengbo Optoelectronic Technology Co., Ltd.. (“Shengbo optoelectronic”). The increase of
profits mainly came from the contribution of the profits of Shengbo optoelectronic , whereby polaroid currently
entered a good industrial development cycle that demands surpass supply and in the mean time, the company
achieved rapid increase of production and sales and saved itself from the loss of years in knitted garment business
by strengthening the marketing management of the business and propelling both domestic and international sales.
2. In the report period, Trading: within the reporting period, the trading revenues reached RMB 156.603
million, 20.22% up compared to the same period of last year, and the profits totalled up to 0.6174 million, down
10.46%. Due to slow recovery of the internationa textile market, the gross margin of the trading business declined
though the company tried in many ways to develop other trading channels.
3.Property leasing and management: the revenues of the leasing business and services reached RMB 34.6383
million, 11.33% up compared to the same period of last year. The company increased leasing unit prices, as the
rental increase prevailed in the first half year, and secured the growth of the leasing revenues while offsetting the
negative effects incurred by metro construction.
In the report period, The Status of key business in terms of industry of business.
Unit：RMB’0000
In terms of business
line
Income from
main
operation
Cost of main
operation
Gross
profit
ratio（%）
Increase/decreas
e of income
from main
operation over
the previous
year (%)
Increase/decrease
of cost of main
operation over the
previous year (%)
Increase or decrease of
Gross profit ratio from
main operation over the
previous year (%)
Domestic and
foreign trade
15,660.30 15,599.86 0.39% 20.22% 20.88% Decreased by 0.54%
Manufacturing 12,934.34 10,748.67 16.90% 489.63% 450.39% Increased by 5.93%
Lease and
Management of
Property
3,463.83 310.50 91.04% 11.33% 75.57% Increased by 1.52%
Of which: In the report period,The total amount of product sales or rendering of services of the Company to its
controlling shareholder and subsidiaries was RMB 0.00 million in the report period.
In the report period, The status of main operation in terms of product
Product Sales income Sales cost Gross profit rate
Polarizer sheet for 10,606.56 8,708.90 17.89%7
LCD
Fully-shaped knitted
garment
1,191.44 980.57 17.70%
Notes ：
（1）Shengbo optoelectronic is a wholly-owned subsidiary, engaged in development, production, processing
and dealing in polaroids and the materials and components of LCD display. In the report period, The gross margin
in polaroids for LCD display is almost the same as for the same period of last year.
（2）Shenzhen Beauty Century Garment Co., Ltd. (“Beauty Century ”) is also a wholly-owned subsidiary,
mainly engaged in production and processing of seam free knitted whole garments. The gross margin in knitted
whole garments increased 36.11%, compared to the same period of last year mainly because effective measures in
developing domestics and overseas markets and strengthening quality control stimulated increase of orders and the
unit fixed costs dropped drastically.
II. Analysis of the financial position and operating results of the Company
The Financial expenses was RMB 322,369,136.74, which Increased by 74.25％ the same period of last year;
The Operating cost was RMB 268,333,276.41，Which increased by 74.78% the same period of last year; The Sales
expenses and administrative expenses are RMB 6,486,076.01 and RMB 27,545,944.53 respectively, 31.66% and
73.97% up compared to the same period of last year as a result of the business combination with Shengbo
Optoelectronic .
The Financial costs was RMB 2,175,589.19, Which increased by 76.11 %the same period of last year, mainly
due to increase of interest expanse for meeting the fund demand for initial-stage land purchase for phase-II
polarizer sheet project.
The asset impairment losses were RMB 1,527,851.58, 257.83% up compared to the same period of last year
mainly because the accounts receivable increased substantially with the growth of the polaroid sales at 98.19% and
thus, the appropriations for bad debts grew as well.
The investment gains are RMB 11,883,866.62, 33.18% up compared to the same period of last year mainly
because the gains from disposal of available-for-sale financial assets reduced RMB 5,652,605.27.
The non-operating income totalled up to RMB 4,982,567.16, 483.81% up because of the amortization of the
deffered income, i.e., several governmental subsidies, for this period.
The income taxes are RMB 6,167,121.07, 33.71% up compared to the same period of last year. It is mainly
because the profits increased this period and the income tax increased as calculated in accordance with the tax law
and other relevent provisions.
The operations created the net cash flows of RMB 2,414,949.85, RMB 10,426,992.80 less, compared to the
same period of last year, which is because the production and sale of Shengbo Optoelectronic ’s products grew this
period and cash paid to purchase the materials increased vastly.
The investments created a total net cash flow of RMB -50,156,141.88, RMB 48,437,174.14 less, compared to
the same period of last year. It is because the TFT-LCD polaroids project phase 1 was underway and the
investments in purchase and construction of fixed assets increased vastly.
The fund raising activities created a net cash flow of RMB 54,423,240.33, RMB 76,329,445.38 more than the
same period of last year. The company borrowed from its major shareholder Shenhen Investment Holdings Co., Ltd.
RMB 60,000,000 for the TFT-LCD polaroids project phase 1 since the non-public offer of A share stocks had not
been completed yet.
The cash and cash equivalents are RMB 6,894,195.68, an increase of RMB 17,672,944.53, compared to the same
period of last year, as a result of the company’s efforts in fund raising for key projects.8
The notes receivables are RMB 150,000.00, 91.35% less than the beginning of the year. In order to increase
the market share and build up a customer pool for the TFT-LCD polaroids project, Shengbo Optoelectronic adopted
flexible credit policies under risks control.
The acccounts receivable increased 37.45% to RMB 53,910,516.32, compared to the beginning of the year, as
a result of Shengbo Optoelectronic ’s large sales increase and the increase of its customers’ deferring their
payments within term of credit.
The inventory increased 38.69% to RMB 58,670,805.68, compared to the beginning of the year, as a result of
Shengbo Optoelectronic ‘s thriving production and sale and the large increase of materials purchase.
The available-for-sale financial assets amounts to RMB 66,188,811.00. The company sold some part of its
stocks in the second markets, and the market value of the relevant stocks dropped substantially at the end of the
period.
The construction in process increased 6213.71% to RMB 100,157,592.45, compared to the beginning of the
year, as a result of the increase of the expenses in the TFT-LCD polaroids project phase 1 and the land use rights
that were purchased for this project at the end of last year being transferred from intangible assets to contruction in
process.
The intangible assets decreased 88.89% to RMB 5,505,145.08, compared to the beginning of the year, mainly
because the industrial land purchased for the TFT-LCD polaroid project phase 1 was transferred from the intangible
assets into the contruction in process since the construction of the project officially started.
The short-term borrowings increased 53.11% to RMB 155,000,000, compared to the beginning of the year, as
a resulf of the fund demand of the TFT-LCD polaroids project. The company borrowed RMB 60,000,000 from its
major shareholder Shenzhen Investment Holdings Co., Ltd.
The deferred income tax liabilities decreased 35.46% to RMB 11,895,656.77, compared to the beginning of
the year, as a result of the changes in the fair value of the available-for-sale financial assets.
III. The problems confronted by the Company in operation and countermeasures
For the reporting period the total profits contain: the industrial profits, 31.10%, the profits from the property
leasing and manangement business, 66.91%, and the trading profits, 1.99%. The industrial profits increased 40.12%,
compared to the same period of last year. This increase resulted from the business combination with Shengbo
Optoelectronic , which enhanced the overall profitability of the industrial entities of the company, and Beauty
Century’s turning back from losses, whereby Jiangxi Xuanli Thread Co., Ltd. (“Xuanli”was stopped from losses of
years and its consumption of the company’s profits). The profits of the property leasing and management business
and the trading profits decreased 39.58% and 0.54% respectively, compared to the same period of last year.
IV. Operating Problems and Reactions
In the report period, Though the international financial crisis is subsiding globally, the European debt crises
have incurred uncertainties to both doemstic and international economic conditions. The recovery of the
international textile market is slow and the export orders and prices are going down while labor costs have a sharp
increase, the prices of raw materials are rising and furthermore, RMB is appreciating. All these result in the rapid
drop in the gross margin of the company’s export textile orders. Despite the thriving production and demand for
polaroids, the production capacity of the company cannot satisfy the market demands due to the limitation of the
manufacturing location. The contruction of Huangqiang North Station of Shenzhen Metro delays again, which is
worsenning the primary property leasing and hotel operation of the company in the area.
To tackle these problems, the company are adopting measures: 1. To integrate existing resources, optimize its
product structure and achieve a complementary integration of its labor intensive textile business,garment
processing and others to capture new development opportunities and ensure the smoothly transit of its industrial9
tranformation and the balanced and healthy development in the future. 2. To strengthen the internal management,
continuingly focus on the tecnological innovations for the polaroids project, lower the production costs, further
optimize the production process of polaroids and intensify communication and coordination on the TFT-LCD
polaroids project to ensure that the construction proceed as per the schedule. 3. And to reinforce the communication
and coordination with the metro constructing parties, closely watch the contruction progress while improving the
hotel facilities on a timely basis and taking the initiative in adjusting the leasees and customers structure to ensure
steady leasing ratioes and occupancies and reduce the impact of the metro construction on the property business of
the company.
V. The investment of the Company
1. In the report period, There were neither funds raised in the report period nor those raised in previous periods
whose use continued in the report period.
2. In the report period, As to the projects invested with its own fund of the company: (1) the renovation and
expansion of the polaroid project phase 2 was completed and the production started in January 2010; (2) the final
accounts of the singles dormitory in Longgang Nanlian Industrial Zone were settled in July 2010.
VI. Contruction of the TFT-LCD polaroids Project Phase 1
In the report period, The construction of the TFT-LCD polaroids project phase 1 has been going smoothly. In
March 2010, the company signed with the equipment manufacturer the “Commercial Contract” on the purchase of
the main equipment for the TFT-LCD polariods. Up to now, the fundamental design of the main equipment and
around 80% of the detailed design were completed, and orders were placed to purchase some part of the
compenents and bought-in components. As per our plan, the main equipment shall be delivered and installed by the
end of March 2011. The company has now completed the bidding for the infrastructure works, the geographic
survey, supervisory works and construction and had the construction plan, the general design plan and civil air
defence plan approved as well as the temporary water and power supply, the temporary entrances, construction
mapping and the setting-out check, the name of the tech park etc. On May 31, the construction of the TFT-LCD
polaroids project officially started, and according to the plan, the main factory building will be topped off by the
end of 2010, all the civil works will be completed by June 2011 and the trial production shall start in October 2011.
VII.The Company's forecast of profit for the next report period
According to the analysis of the current production and operation status of the Company, the net profit for the
period from January to September 2010 is estimated to change slightly over that for the same period of previous
year (Net profit RMB 38.3031 million).
Section VI Important Events
I. Status of corporate administration:
In order to solidify the results of the company governance, furuther enhance the governance level, the
company strictly followed, within the reporting period, the requirements of the “Company Law”, “Securities
Law”and the “Governance Principles for Listed Companies”, the “Notice on Deepening the Corporate
Governance” by China Securities Regulatory Commission and Shenzhen Securities Regulatory Administration etc.
to further establish or improve the relevant systems, improve the orgnization structure of the internal audit,
standardize the operations and strengthen the internal control of the company. In the reporting period, the company
executed in accordance with the “Notice on Deepening the Standardization of Fundamental Financial and
Accounting Practice” by Shenzhen Securities Regulatory Administration an overal self-review over the
fundamental financial management of its wholly-owned susidiaries, formulated the rectifying measures against the
existing problems and produced self-review reports for discussion and approval by the Board of Directors. Going10
forward, the company will, in order to push and bring the rectifications to real effects and solidify the fundamental
financial practice, continue to watch on the issues that reached the requirements of China Securities Regulatory
Commimssion after being rectified in accordance with the working guidelines. So far, the corporate governance is,
on the whole, in accord with the requirements of the relevant regulations on the corporate governance of listed
companies, which are issued by China Securities Regulatory Commission.
The controlling shareholder of the company, Shenzhen Investment Holdings Co., Ltd., is an enterprise under
direct supervision of Shenzhen State-owned Assets Management Commission. In accordance with the provisions in
relation to the state-owned assets management of the controlling shareholder, the company reported to it the
non-public information, mainly the primary monthly financial indexes, before the tenth of each month. To
strengthen the supervision on the non-public information, the company has, since 2007, strictly controlled the range
of the insiders, standardized the information circulating procedures and reported to Shenzhen Securities Regulatory
Administration the details of the insiders and their relatives in accordance with the relevant provisions. The
company shall strictly follow the “Policy of Insider Registration”to standardize the management over the
non-public information.
II.The Plan of Profits Distribution in the Reporting Period
1. The company had not drawed up during prior periods the plans of profits distribution and capital stock
increase from reserves that were to be implemented in the reporting period.
2.In the report period, As resolved in the general meeting of Year 2009, a sum of statutory reserve was
appropriated from the net realized profits of RMB 13,325,902.87 at a rate of 10%, which is RMB 1,332,590.29, nor
to capitalize any capital surplus.
After decision by the board of directors of the Company, the Company is neither to distribute the net profit for the
first half of 2010 nor to capitalize any capital surplus.
III. Material lawsuits and arbitration
1.The Company was not involved in any Importance lawsuit or arbitrationin the report period.
2.Other lawsuits：
(1) Regarding the case of suing China Huawen Business Development Corporation in respect of loan with
counter guarantee disclosed in the annual reports of previous years, Guangdong Higher People's Court decided in
the trial of second instance in November 2003 that the Company should win the suit and China Huawen Business
Development Corporation should bear compensation liability in the amount of RMB 10,543,081.72. As this
company is in poor financial condition, this case is still under court enforcement.
(2) The Company's application for arbitration on the case concerning debt of Jiangxi Xuanli Co. was officially
accepted by Shenzhen Arbitration Commission in November 2009. The Company received the award on this case
from Shenzhen Arbitration Commission in January 2010. According to the award, Xuanli Co. should pay the
Company arrears and interests in the amount of RMB 15,442,971.30 and bear arbitration fee of RMB 101,116 for
this case. The company did not perform the payment obligation within the time limit specified in the award. the
Company plans to apply to the Jiangxi Longnan people's court for compulsory enforcement. On April 29, 2010, The
company received the “Acceptance Notice of Enforcement Actions” issued by the court, and the case entered the
enforcement procedures(Refer to No. 2010-17 Announcement of the Company for details).
IV. The shares of other listed companies held by the Company
As of June 30, 2010, The company holds 10,182,894 shares of Shenzhen Victor Onward Textile Industrial Co.,
Ltd. Listed at Shenzhen Stock Exchange, which account for 6.02% of the total share capital of Shenzhen Victor
Onward. The above-mentioned shares were accounted for as financial assets available for sale. The initial
investment cost is RMB 12,510,038.68. At the end of the report period, the book value of the investment was
RMB 66,188,811.00. In the report period, Net Income was RMB 9,009,386.30, Owner’s Equity Changed was11
RMB -23,136,556.04.
Exccpt these shares, the Company did not hold any share of other listed companies or intended listed
companies or financial enterprises such as commercial banks, securities companies, insurance companies, trust
companies and futures companies.
V. The Company was not involved in any material assets acquisition or enterprise merger in the report
period.
VI. The Company was involved in any material related transaction
1. In the first Provisional Shareholders’general meeting in 2009, The meeting examined and adopted the
Proposal on non-public offer of A share stocks to no more than ten specified entities including the controlling
shareholder (Refer to No.2009-49 Announcement of the Company for details), Shenzhen Investment Holdings Co.,
Ltd., and Shenzhen Century Science ＆ Technology Investment Corporation, a wholly-owned subsidiary of the
actual controller of the company, Shenzhen State-owned Assets Administration. On May 31, 2010, the non-public
offer of the company was verified and passed by China Securities Regulatory Commission (Refer to No. 2010-22
Announcement of the Company for details) and was approved with CSRC’s Permit No. [2010] 882(Refer to No.
2010-28 Announcement of the Company for details),on June 30,2010.. On July 23, 2010, the company completed
the offer at a price of RMB 9.30 per share, issued 91,397,849 shares and raised a fund of RMB 849,999,945.70.
The new shares were listed for trading on August 9, 2010. (Refer to No. 2010-32 Announcement of the Company
for details)
2. In the first Provisional general meeting of Year 2009, the “The proposal on Borrowing from Shenzhen
Investment Holdings Co., Ltd.” was reviewed, discussed and passed, whereby the company borrowed RMB 100
million from Shenzhen Investment Holdings Co., Ltd. with a half-a-year life of loan. The interest of the borrowing
was calculated by reference to the concurrent benchmark interest rate of commercial banks, and it was guaranteed
by the wholly-owned subsidiary, Shengbo Optoelectronic(Refer to No. 2009-42, 2009-49 Announcement
of the Company for details).On February 10, 2010, The three parties officially signed the “Borrowing
Agreement”, As of June 30, 2010, and the actual borrowing amounted to RMB 60 million.
3. In the second Provisional general meeting of Year 2009, it was reviewed, discussed and approved that
Shengbo Optoelectronic sign with Century Science and Techonology Co., Ltd. the “Cooperation Agreement” and
the “Entrusted Loan Contract” (Refer to No. 2009-55,2009- 57 Announcement of the Company for
details). With approval by the relevant authority of Shenzhen City, On June 25, 2010, Shengbo Optoelectronic
signed with Century Science and Technology Co., Ltd. the “Cooperation Agreement” and on the same day, the two
companies signed the “Entrusted Loan Contract” with Shenzhen Development Bank, Jiangsu Building Sub-branch
of Shenzhen Branch(Refer to No. 2009-55,2010-26 Announcement of the Company for details).
VII. The Company's external guarantee
1. The company provided guarantee for its susidiary Beauty Century on a bank credit line of RMB 10 million
with a loan life from November 27, 2009 till November 27, 2011. The guaranteed amount is equivalent to 2.03% of
the most recently audited net assets of the company.
2. Increase of guaranteed lines from January to June
In the report period, the 2nd meeting of the fifth board of directors of the Company decided to provide full
guarantee for the letter of guarantee for payment of construction deposit of RMB 30 million issued by Shengbo
Optoelectronic, a subsidiary of the Company.
3. The special statement and independent opinions of the independent directors of the Company on fund
occupation by related parties and external guarantee of the Company
According to the Circular on Certain Issues Relating to Standardization of Fund Transfer Between Listed
Companies and Their Related Parties and Guarantees Provided by Listed Companies (Zheng Jian Fa (2003) No. 5612
Document), the Circular on Strengthening Disclosure of Information about Fund Occupation and
Regulation-violating Guarantee of Listed Companies (Shenzhen Ju Fa Zi (2004) No. 338) and the Circular of
Regulating External Guarantees Provided by Listed Companies (Zheng Jian Fa (2005) No. 120 Document), we
audited the external guarantees provided by the Company with responsible attitude On January to June 2010, We
hereby make the following statement: I. The fund occupation between the Company and other related parties
occurred was fund transfer formed during normal operation. The controlling shareholder and other related parties
did not occupy the funds of the Company in violation of regulations;II. In the report period, The limit of loan
guarantee to be provided by the Company to its wholly-owned subsidiary, is RMB 80 million. In the report period,
the actual amount of guarantee was RMB 10 million.
In our opinion, the Company was able to regulate external guarantee and control the risk of external guarantee
strictly according to the Articles of Association of the Company. The guarantee provided by the Company to its
wholly-owned subsidiaries in the report period was demanded by the Company's production and operation and
rational utilization of funds. The decision-making procedure of guarantee was legal and reasonable and the interests
of the Company and its shareholders, especially middle and small shareholders, were not harmed.
Independent directors：Zhang Yong ,Shi Weihong, Yang Shibin
VIII. Important contracts and their performance
1. On December 2, 2009, In the first Provisional General Meeting of Year 2009, the shareholders approved the
company to sign the “Contract of Shares Subscription with Effective Collateral Conditions for Non-public Offer”
with Shenzhen Investment Holdings Co., Ltd. and Shenzhen Century Science & Technology Co., Ltd(Refer to No.
2009-49 Announcement of the Company for details). On July 21, 2010, Shenzhen Investment Holdings Co.,
Ltd. contributed RMB349,999,994.40 to purchase 37,634,408 shares of Non-public A shares of the company, and
Shenzhen Century Science and Technology Co., Ltd. subscribed 16,129,032 shares at a price of RMB
149,999,997.60(Refer to No. 2010-32 Announcement of the Company for details).The aforesaid contract
was worked off.
2. In the first Provisional General Meeting of Year 2009, the “Motion on Borrowing from Shenzhen
Investment Holdings Co., Ltd.” was reviewed, discussed and passed(Refer to No. 2009-42,2009-49
Announcement of the Company for details). On Fubruary 10, 2010,The company officially signed the
“Borrowing Agreement” with Shenzhen Investment Holdings Co., Ltd. and Shengbo Optoelectronic , and the
actual borrowing amounted to RMB 60 million.
3. In the second Interim General Meeting of Year 2009, it was reviewed, discussed and approved that Shengbo
Optoelectronic sign with Century Science and Techonology Co., Ltd. the “Cooperation Agreement” and the
“Entrusted Loan Contract” (Refer to No. 2009-55,2009-57 Announcement of the Company for details).
As approved by the relevant authority of Shenzhen City, On June 25, 2010, Shengbo Optoelectronic signed with
Century Science and Technology Co., Ltd. the “Cooperation Agreement”, and on the same day, the two companies
signed the “Entrusted Loan Contract” with Shenzhen Development Bank, Jiangsu Building Sub-branch of
Shenzhen Branch. During the reporting period, the aforesaid agreement(Refer to No. 2010-26 Announcement
of the Company for details) and contract were implemented normally.
IX. Commitments of the controlling shareholder
1. As Shenzhen Investment Holdings Co., Ltd., the controlling shareholder of the company, committed when
the restricted-for-sale shares from the shares restructuring were listed for circulation in the market: i. 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 announcement 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” and the provisions of the relevant business13
principles of Shenzhen Stock Exchange.
2. Shenzhen Investment Holdings Co., Ltd. signed a “Letter of Commitment and Statement on Horizontal
Competition Avoidance” when the company issued non-public stocks in 2010. Pursuant to the Letter of
Commiment and Statement, Shenzhen Investment Holdings Co., Ltd. and its wholly owned subsidiary, subsidiaries
under control or any other companies that have actual control of it shall not be involved in the business the same as
or similar to those Shenzhen Textile currently or will run in the future, or any businesses or activities that may
constitute direct or indirect competition with Shenzhen Textile; if the operations of Shenzhen Investment Holdings
Co., Ltd. and its wholly owned subsidiaries, subsidiaries under control or other companies that have actual control
of it compete with Shenzhen Textile in the same industry or contradict the interest of the issuer in the future,
Shenzhen Investment Holdings Co., Ltd. shall urge such companies to sell the equity, assests or business to
Shenzhen Textile or a third party; when the horizontal competition may occur due to the business expansion
concurrently necessary for Shenzhen Investment Holdings Co., Ltd. and its its wholly owned subsidiaries,
subsidiaries under control or other companies that have actual control of it and Shenzhen Textile, Shenzhen Textile
shall have priority.
In the report period, This commitment is being performed.
X. In the report period, The Company did not make compensation for the earnings promised at the time of
the Company's implementation of share holding structure reform and significant asset reorganization.
XI. Acceptance of investigation, communication and interview
The Company seriously implemented Working System for Reception and Promotion， the Company strictly
abode by the principle of fair information disclosure in the work concerning relationship with investors according
to the requirements of Guidelines for Fair Information Disclosure of Listed Companies. The Company
communicated with investors in respect of its daily operation and development prospect with public materials
including periodical reports and relevant announcements and did not selectively and privately disclose, reveal or
divulge non-public significant information to specific objects. Information disclosure was fair. In the report period,
no institutional investors came to investigate or interview the Company. The Company answered over 20 calls of
personal investors. The Company communicated with the investors mainly in respect of the Company's operating
status and development prospect, the controlling shareholder's support to the Company's business development and
temporary suspension of listing of the Company.
Table for investigation, communication , interviewor other activities
Reception
date
Reception
plane
Reception
Mode
Reception
Object
Discussion issue and offered
information
2010.1.1-2010.
6.30
The
Company
Telephone
Individual
Investor
Operating status and development
prospect of the Company, the controlling
shareholder's support to the Company's
business development, and Polarizer
sheet for LCD project etc.
2010.1.13
Research
Wanlian
Securities
Operating status and development
prospect of the Company, Company
intends to issue stock to raise private
capital investment projects, Operating
status and development prospect of the
Company, Company intends to issue
stock to raise private capital investment
2010.1.21 Jiashi Fund
2010.2.1
Guosen
Sercurities
2010.3.18
New times
securities14
projects
2010.4.6
Jiangnan
Securities
2010.5.26 Huaxia Fund
2010.6.24
Xincheng
Fund
XII. In the report period, the Company did not change the appointed certified public accountants.
XIII. In the report period, the Company, its board of directors and its directors were not investigated by
CSRC, administratively punished or publicly criticized by CSRC, punished by other administrative
departments or publicly condemned by stock exchange.
XIV. In the report period，there were no other important events that had material influence on the Company.
Section VII Subsequent events
1. After the market closed on August 17, 2010, the Company accumulatively sold 12,096,593 shares of
Shenzhen Victor Onward held by it through the trading system of Shenzhen Stock Exchange, which account for the
total share capital of Shenzhen Victor Onward. The remaining 10,182,894 shares of Shenzhen Victor Onward
account for 6.02% of the total share capital of Shenzhen Victor Onward, All shares are unrestricted negotiable
shares.
2. On July 20, 2010, The company signed a guaranty contract in relation to the application of Shengbo
Optoelectronic for a construction performance bond of RMB 30 million issued by Shenzhen Development Bank,
Jiangsu Building Sub-branch of Shenzhen Branch.
Section VIII Financial Report（Unaudited）
I.Financial statements (Attached hereinafter)
1. Balance sheet
2. Profit statement
3. Cash flow statement4. Change in owners’ equities
II. Notes to financial statements(Attached hereinafter)
Section IX Documents Available for Inspection
1. The text of Interim report bearing the signature of the chairman of the board of directors
2. The text of the financial report bearing the seal and signature of the person in charge of the Company,
controller of accounts and the person in charge of accounting organ;
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated
by China Securities Regulatory Commission in the report period;
4. The text of the Articles of Association of the Company.
The above documents were completely placed at the Office of the Company.
This report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version
shall prevail.15
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 20, 201016
Attached I: Financial statements
Unit：RMB
Assets June 30,2010 December 31, 2009
Current assets :
Monetary funds 108,234,510.63 101,340,314.95
Trading financial assets - -
Bill receivable 150,000.00 1,734,495.00
Account receivable 53,910,516.32 39,220,977.43
Prepayments 21,577,568.35 30,220,380.81
Interest receivable - -
Dividend receivable - -
Other receivable 19,641,347.54 22,511,461.20
Inventories 58,670,805.68 42,304,486.48
Non-current asset due in 1 year - -
Other current assets - -
Total of current assets 262,184,748.52 237,332,115.87
Non-current assets：
Disposable financial asset 66,188,811.00 97,228,693.20
Expired investment in possess - -
Long-term receivable - -
Long term share equity investment 45,497,748.89 45,918,671.87
Property investment 131,523,816.72 134,424,401.74
Fixed assets 214,123,349.15 220,135,667.48
Construction in progress 100,157,592.45 1,586,349.75
Engineering material - -
Fixed asset disposal - -
Production physical assets - -
Gas & petrol - -
Intangible assets 5,506,145.08 49,561,412.72
R & D petrol - -
Goodwill 9,614,758.55 9,614,758.55
Long-germ expenses to be amortized 452,198.64 586,980.59
Differed income tax asset 6,741,656.04 6,173,805.16
Other non-current asset - -
Total of non-current assets 579,806,076.52 565,230,741.06
Total of assets 841,990,825.04 802,562,856.93
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Balance sheet17
Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
Liabilities and owners’ equity June 30,2010 December 31, 2009
Current Liabilities
Short-term loans 155,000,000.00 101,234,495.00
Financial liabilities held for trading - -
Bill payable - -
Accounts payable 47,463,738.89 51,968,320.22
Advance payment 31,361,500.85 27,483,029.17
Salaries payable to Staff 11,760,348.97 13,379,439.90
Taxes payable 4,056,459.33 4,618,939.41
Interests payable 468,013.20 93,488.75
Dividends payable - -
Other payable 43,210,621.06 47,289,214.16
Non-current liabilities due in 1 year - -
Other current liabilities - -
Total current liabilities 293,320,682.30 246,066,926.61
Non-Current liabilities:
Long-term loan 24,553,666.34 25,000,000.00
Bonds payable - -
Long-term payable - -
Special payable - -
Accrued liabilities - -
Deferred income tax liabilities 11,895,656.77 18,430,490.19
Other Non-current liabilities 17,252,575.70 19,819,142.86
Total Non-current Liabilities 53,701,898.81 63,249,633.05
Total liabilities 347,022,581.11 309,316,559.66
Shareholders ’ Equity
Share capital 245,124,000.00 245,124,000.00
Capital surplus 96,044,751.61 119,181,307.65
Less: Shares in stock - -
Surplus reserves 31,832,178.67 31,832,178.67
Reserved profit 121,967,313.65 97,108,810.95
Total attributable to equity holders of the Parent Co m p a n y 494,968,243.93 493,246,297.27
Minority interest - -
Total owners’ equity 494,968,243.93 493,246,297.27
Total liabilities and Owners’ equity 841,990,825.04 802,562,856.93
Consolidated Balance Sheet（Cont'd）18
Shenzhen Textile (Holdings) Co., Ltd.
January-June 2010
Unit：RMB
Items January-June 2010 January-June 2009
I. Total Operating income 322,369,136.74 184,999,096.82
II. Total Operating cost 308,208,839.07 176,384,919.71
Including：Operating cost 268,333,276.41 153,529,580.50
Operating taxes and extras 2,140,101.35 1,828,006.10
Sales expenses 6,486,076.01 4,926,365.04
Administrative expenses 27,545,944.53 15,833,670.15
Financial expenses 2,175,589.19 1,235,352.17
Loss of devaluation of assets 1,527,851.58 - 968,054.25
Add：Changing income of fair value - -
Investment income 11,883,866.62 17,784,027.09
Including：Investment income on affiliated company a n d j o i n t v e n t u r 9e79,077.01 1,151,332.85
III. Operating profit 26,044,164.29 26,398,204.20
Add：Non-operating income 4,982,567.16 853,452.70
Less：Non-operating expenses 1,107.68 27,914.65
Including：Disposal loss of non-current asse t s - -
IV. Total profit 31,025,623.77 27,223,742.25
Less：Income tax expenses 6,167,121.07 4,612,373.70
V. Net profit 24,858,502.70 22,611,368.55
Net profit attributable to the Parent company 24,858,502.70 22,611,368.55
Minority shareholders’ gain and losses - -
VI. Earnings per share
（i）Basic earning per share 0.10 0.09
（ii）Diluted earning per share 0.10 0.09
VII. Other comprehensive income - 23,136,556.04 36,369,813.02
VIII. Total comprehensive income 1,721,946.66 58,981,181.57
Total comprehensive income attributable to the owner o f t h e p a r e n t c 1o,7m2p1a,9n4y6.66 58,981,181.57
Total comprehensive income attributable minority share h o l d e r s - -
Consolidated profit Statement19
Unit：RMB
Items January -June 2010
I. Net cash flow from business operation
Cash received from sales of goods and supply of labor 326,450,091.77 184,409,938.54
Rebated taxes received 26,585,651.90 13,089,099.41
Other business related cash receipts 900,678.20 1,231,637.08
Subtotal of cash flow in from operating activity 353,936,421.87 198,730,675.03
Cash paid for purchase of goods and reception of labor services 294,294,890.06 154,293,750.86
Cash paid to and for employees 24,298,731.85 16,644,934.34
Taxes paid 15,839,658.03 7,867,327.68
Other business related cash payments 17,088,192.08 7,082,719.50
Subtotal of cash flow out from operating activity 351,521,472.02 185,888,732.38
Net cash flows arising from operating activities 2,414,949.85 12,841,942.65
II. Cash flow arising from investment activities
Cash received from recovery of investment 1,336,093.92 23,986,736.73
Cash received from investment income 10,482,188.42 17,090,628.61
Cash received from disposal of fixed assets, intangible asset and other l o n g - t e r m a s s e t s - 4,000.00
Proceeds from sale of subsidiaries and other operating units - -
Other cash received relating to investment activities - -
Sub total of cash inflows 11,818,282.34 41,081,365.34
Cash paid for acquiring fixed assets, intangible assets and other lon g - g e r m a ss 6e1ts,974,424.22 3,800,333.08
Cash paid at investment - -
Net cash received from subsidiaries and other operational units - 39,000,000.00
Other cash paid for investment activities - -
Subtotal of cash outflow due to investment activities 61,974,424.22 42,800,333.08
Net cash flow generated by investment -50,156,141.88 -1,718,967.74
III. Cash flow generated by financing
Cash received as investment - -
Including: Cash received as investment from minor shareholders - -
Cash received as loans 132,553,666.34 60,000,000.00
Other financing –related cash received 2,300,000.00 -
Subtotal of cash inflow from financing activities 134,853,666.34 60,000,000.00
Cash to repay debts 77,000,000.00 71,000,000.00
Cash paid as dividend, profit, or interests 3,204,422.50 8,406,205.05
Other financing-related cash received 226,003.51 2,500,000.00
Subtotal of cash outflow due to financing activities 80,430,426.01 81,906,205.05
Net cash flow generated by financing 54,423,240.33 - 21,906,205.05
IV. Influence of exchange rate alternation on cash and c a s h e q u i v 2a1l2e,n1t4s7.38 4,481.29
V. Net increase of cash and cash equivalents 6,894,195.68 - 10,778,748.85
Add: balance of cash and cash equivalents at the beginning of term 101,340,314.95 84,022,925.18
VI. Balance of cash and cash equivalents at the end of term 108,234,510.63 73,244,176.33
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Cash flow statement
January-June 200920
Minor shareholders’ equity Total of owners’ equity
Share Capital
I.Balance at the end of last year 2 45,124,000.00 1 19,181,307.65 - - 3 1,832,178.67 - 9 7,108,810.95 - - 4 93,246,297.27
Add: Change of accounting policy - - - - - - - - - -
Correcting of previous errors - - - - - - - - - -
Other - - - - - - - - - - II. Balance at the beginning of current
year 2 45,124,000.00 1 19,181,307.65 - - 3 1,832,178.67 - 9 7,108,810.95 - - 4 93,246,297.27
III. Changed in the current year - - 23,136,556.04 - - - - 2 4,858,502.70 - - 1 ,721,946.66
（i）Net profit 24,858,502.70 2 4,858,502.70
（II）Other misc.income - 23,136,556.04 - 23,136,556.04
Total of (I) and (II) - - 23,136,556.04 - - - - 2 4,858,502.70 - - 1 ,721,946.66 (III) Investment or decreasing of capital
by owners - - - - - - - - - -
21．. CAapmitoaul nitnpouftstehda rbeys opwainderasnd accounted as owners ’ - - - - - - - - - -
equity - - - - - - - - - -
3．Other - - - - - - - - - -
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus reserves - - - - - - - - - -
2.Providing of common risk provisions - - - - - - - - - -
4．Other - - - - - - - - - - (V) Internal transferring of owners ’
eq1u. iCtyapitalizing of capital reserves (or to capital - - - - - - - - - -
s2h. arCesa)pitalizing of surplus reserves (or to capital - - - - - - - - - -
shares) - - - - - - - - - -
3．Making up losses by surplus reserves. - - - - - - - - - -
4．Other - - - - - - - - - -
(VI) Special reserves - - - - - - - - - -
1. Provided this year - - - - - - - - - -
2．Used this term - - - - - - - - - -
IV. Balance at the end of this term 2 45,124,000.00 9 6,044,751.61 - - 3 1,832,178.67 - 1 21,967,313.65 - - 4 94,968,243.93
January-June 2010
Prepared by:Shenzhen Textile (Holdings) Co., Ltd. Unit：RMB
Consolidated Statement of Change in Owners’ Equity
Items
Owner’s equity Attributable to the Parent Company
Capital reservesLess: Shares in stock Special reserve Surplus reserves Common risk provisions Attributable profit Other21
Minority shareholders’ equity Total of owners’ equit
Share Capital
I.Balance at the end of last year 2 45,124,000.00 6 8,921,594.03 - - 3 0,499,588.38 - 7 2,682,114.10 - - 4 17,227,296.51
Add: Change of accounting policy - - - - - - - - - -
Correcting of previous errors - - - - - - - - - -
Other - - - - - - - - - -
II.Balance at the beginning of current year 2 45,124,000.00 6 8,921,594.03 - - 3 0,499,588.38 - 7 2,682,114.10 - - 4 17,227,296.51
III.Changed in the current year - 3 6,369,813.02 - - - - 1 0,355,168.55 - - 4 6,724,981.57
（I） Net profit 22,611,368.55 2 2,611,368.55 （II）Other misc.income
3 6,369,813.02 3 6,369,813.02
Total of (I) and (II) - 3 6,369,813.02 - - - - 2 2,611,368.55 - - 5 8,981,181.57 (III) Investment or decreasing of capital
by owners - - - - - - - - - -
21．. CAampiotaul nitnpoufttsehda rbeys opwainderasnd accounted as owners ’ - - - - - - - - - -
equity - - - - - - - - - -
3．Other - - - - - - - - - -
（IV）Profit allotment - - - - - - - 12,256,200.00 - - - 12,256,200.00
1.Providing of surplus reserves - - - - - - - - - -
3．Allotment to the owners (or shareholders) - - - - - - - 12,256,200.00 - - - 12,256,200.00
4．Other - - - - - - - - - - (V) Internal transferring of owners ’
equity - - - - - - - - - -
12.. CCaappitiatalilziziningg of ocafpistuarl prleusservreess e(rovre tso c(aopritatlo shcaarepsital - - - - - - - - - -
shares) - - - - - - - - - -
3．Making up losses by surplus reserves. - - - - - - - - - -
4．Other - - - - - - - - - -
(VI) Special reserves - - - - - - - - - -
1. Provided this year - - - - - - - - - -
2．Used this term - - - - - - - - - -
IV. Balance at the end of this term 2 45,124,000.00 1 05,291,407.05 - - 3 0,499,588.38 - 8 3,037,282.65 - - 4 63,952,278.08
Items
Owner’s equity Attributable to the Parent Company
Capital reservesLess: Shares in stock Special reserves Surplus reserves Common risk provision Retained Profit Other
Consolidated Statement of Change in Owners’ Equity
January-June 2009
Prepared by :Shenzhen Textile (Holdings) Co., Ltd. Unit：RMB22
Unit：RMB
Assets June 30,2010 December 31,2009
Current assets:
Monetary funds 30,213,562.23 19,539,632.30
Trading financial assets - -
Bill receivable - -
Account receivable - -
Prepayments 1,214,435.00 1,282,835.00
Interest receivable - -
Dividend receivable - -
Other receivable 133,276,748.51 69,484,161.49
Inventories - -
Non-current liabilities due in 1 year - -
Other current liabilities - -
Total current liabilities 164,704,745.74 90,306,628.79
Non-current assets
Disposable financial asset 66,188,811.00 97,228,693.20
Expired investment in possess - -
Long-term receivable - -
Long term share equity investment 223,974,796.66 224,395,719.64
Property investment 120,875,424.87 123,564,938.19
Fixed assets 76,700,284.39 78,212,675.45
Construction in progress 969,608.55 -
Engineering material - -
Fixed asset disposal - -
Production physical assets - -
Gas & petrol - -
Intangible assets 1,958,345.08 2,153,312.72
R & D petrol - -
Goodwill - -
Long-germ expenses to be amortized - -
Differed income tax asset 5,085,139.94 4,361,844.93
Other non-current asset - -
Total of non-current assets 495,752,410.49 529,917,184.13
Total of assets 660,457,156.23 620,223,812.92
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Balance sheet23
(Shenzhen Textile Holdings) Co., Ltd.
Unit：RMB
Liabilities and owners’ equity June 30,2010 December 31,2009
Current Liabilities
Short-term loans 150,000,000.00 90,000,000.00
Financial liabilities held for trading - -
Bill payable - -
Accounts payable 4,580,636.12 7,441,753.57
Advances payable 639,024.58 639,024.58
Salaries payable to Staff 4,150,564.69 4,961,087.87
Taxes payable 2,104,739.50 872,772.47
Interests payable - -
Dividends payable - -
Other payable 60,578,049.28 60,211,348.00
Non-current liabilities due in 1 year - -
Other current liabilities - -
Total current liabilities 222,053,014.17 164,125,986.49
Non-Current liabilities:
Long-term loan - -
Bonds payable - -
Long-term payable - -
Special payable - -
Accrued liabilities - -
Deferred income tax liabilities 11,895,656.77 18,430,490.19
Other non-current liabilities - -
Total of Other non-current liabilities 11,895,656.77 18,430,490.19
Total liabilities 233,948,670.94 182,556,476.68
Shareholders’ Equity
Share capital 245,124,000.00 245,124,000.00
Capital surplus 87,461,769.82 110,598,325.86
Less：Treasury stock - -
Surplus reserves 31,832,178.67 31,832,178.67
Reserved profit 62,090,536.80 50,112,831.71
Total attributable to equity holders of the Parent Company 426,508,485.29 437,667,336.24
Total owners’ equity 426,508,485.29 437,667,336.24
Total liabilities and Owners’ equity 660,457,156.23 620,223,812.92
Parent Company Balance sheet（Con）24
Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
Items January-June 2010 January-June 2009
I. Operating income 2 6,185,085.38 2 5,226,206.22
Less：Operating Cost 5 ,209,763.11 5 ,257,556.99
Operating taxes and extras 1 ,257,994.06 1 ,234,988.15
Sales expenses - -
Administrative expenses 1 1,932,377.06 9 ,658,979.92
Financial expenses 1 ,125,555.37 7 96,695.65
Loss of devaluation of assets 3 ,287,704.58 - 968,054.25
Add：Changing income of fair value - -
Investment income 1 1,391,272.25 1 7,322,196.14
Including：Investment income on affiliated company and join9t7 9v,0e7n7t.0u1re 1,151,332.85
II. Operating profit 1 4,762,963.45 2 6,568,235.90
Add：Non-operating income - 7 55,455.70
Less：Non-operating expenses 2 00.00 -
Including：Disposal loss of non-current assets - -
III. Total profit 1 4,762,763.45 2 7,323,691.60
Less：Income tax expenses 2 ,785,058.36 3 ,906,300.66
IV. Net profit 1 1,977,705.09 2 3,417,390.94
V. Earnings per share
（i）Basic earning per share 0 .05 0 .10
（ii）Diluted earning per share 0 .05 0 .10
VII. Other comprehensive income - 23,136,556.04 3 6,369,813.02
VIII. Total comprehensive income - 11,158,850.95 5 9,787,203.96
Total comprehensive income attributable to the owner of th e p a r e n t c- 1o1m,1p5an8y,850.95 5 9,787,203.96
Total comprehensive income attributable minori t y s h a r e h o l d e r s - -
Parent Company profit statement
January-June 201025
Unit: RMB
Items January-June 2010 January-June 2009
I. Cash flows arising from operating activities
Cash received from sales of goods and supply of labor 23,885,694.18 22,298,288.74
Rebated taxes received - -
Other business related cash receipts 2,807,176.52 4,034,650.71
Subtotal of cash flow in from operating activity 26,692,870.70 26,332,939.45
Cash paid for purchase of goods and reception of labor services 2,155,381.46 2,006,353.14
Cash paid to and for employees 5,260,089.92 5,445,829.00
Taxes paid 3,612,360.21 3,863,416.84
Other business related cash payments 70,329,994.03 4,013,315.95
Subtotal of cash flow out from operating activity 81,357,825.62 15,328,914.93
Net cash flows arising from operating activities -54,664,954.92 11,004,024.52
II. Cash flow arising from investment activities
Cash received from recovery of investment 1,336,093.92 23,986,736.73
Cash received from investment income 9,989,594.05 16,628,797.66
Cash received from disposal of fixed assets, intangible asset and other long-te r m a s s e t s - -
Proceeds from sale of subsidiaries and other operating units - -
Other cash received relating to investment activities - -
Sub total of cash inflows 11,325,687.97 40,615,534.39
Cash paid for acquiring fixed assets, intangible assets and other long-g e r m a s s e4t,s581,603.75 3,399,317.22
Cash paid at investment - -
Net cash received from subsidiaries and other operational units - 39,000,000.00
Other cash paid for investment activities - -
Subtotal of cash outflow due to investment activities 4,581,603.75 42,399,317.22
Net cash flow generated by investment 6,744,084.22 -1,783,782.83
III. Cash flow generated by financing
Cash received as investment - -
Cash received as loans 130,000,000.00 50,000,000.00
Other financing –related cash received - -
Subtotal of cash inflow from financing activities 130,000,000.00 50,000,000.00
Cash to repay debts 70,000,000.00 59,000,000.00
Cash paid as dividend, profit, or interests 1,176,930.00 8,087,078.54
Other financing-related cash received 226,003.51 2,500,000.00
Subtotal of cash outflow due to financing activities 71,402,933.51 69,587,078.54
Net cash flow generated by financing 58,597,066.49 -19,587,078.54
IV. Influence of exchange rate alternation on cash and ca s h e q u i v a l -2e,n2t6s5.86 4,481.29
V. Net increase of cash and cash equivalents 10,673,929.93 -10,362,355.56
Add: balance of cash and cash equivalents at the beginning of term 19,539,632.30 35,807,908.88
VI. Balance of cash and cash equivalents at the end of te r m 30,213,562.23 25,445,553.32
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company cash flow statement
January-June 201026
Total of owners’ equity
Share Capital
I.Balance at the end of last year 2 45,124,000.00 1 10,598,325.86 - - 3 1,832,178.67 - 5 0,112,831.71 4 37,667,336.24
Add: Change of accounting policy - - - - - - - -
Correcting of previous errors - - - - - - - -
Other - - - - - - - -
II.Balance at the beginning of current year 2 45,124,000.00 1 10,598,325.86 - - 3 1,832,178.67 - 5 0,112,831.71 4 37,667,336.24
III.Changed in the current year - - 23,136,556.04 - - - - 1 1,977,705.09 - 11,158,850.95
（I） Net profit 11,977,705.09 1 1,977,705.09
（II）Other misc.income - 23,136,556.04 - 23,136,556.04
Total of (I) and (II) - - 23,136,556.04 - - - - 1 1,977,705.09 - 11,158,850.95 (III) Investment or decreasing of capital
by owners - - - - - - - -
12.． CAapmitoalu inntpoufttsehda breys opwaniderasnd accounted as owners’ - - - - - - - -
equity - - - - - - - -
3．Other - - - - - - - -
（IV）Profit allotment - - - - - - - -
1.Providing of surplus reserves - - - - - - - -
3. Allotment to the owners (or shareholders) - - - - - - - -
4．Other - - - - - - - - (V) Internal transferring of owners ’
e1q. uCitaypitalizing of capital reserves (or to capital - - - - - - - -
sh2a.reCs)apitalizing of surplus reserves (or to capital - - - - - - - -
shares) - - - - - - - -
3．Making up losses by surplus reserves. - - - - - - - -
4．Other - - - - - - - -
(VI) Special reserves - - - - - - - -
1. Provided this year - - - - - - - -
2．Used this term - - - - - - - -
IV. Balance at the end of this term 2 45,124,000.00 8 7,461,769.82 - - 3 1,832,178.67 - 6 2,090,536.80 4 26,508,485.29
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Statement on Change in Owners’ Equity
January-June 2010
Items
Owner’s equity Attributable to the Parent Company
Capital reservesLess: Shares in stockSpecialized reserve Surplus reserves Common risk provision Attributable profit27
Total of owners’ equity
Share Capital
I.Balance at the end of last year 2 45,124,000.00 6 8,921,594.03 - - 3 0,499,588.38 - 6 3,576,399.08 4 08,121,581.49
Add: Change of accounting policy - - - - - - - -
Correcting of previous errors - - - - - - - -
Other - - - - - - - -
II.Balance at the beginning of current year 2 45,124,000.00 6 8,921,594.03 - - 3 0,499,588.38 - 6 3,576,399.08 4 08,121,581.49
III.Changed in the current year - 3 6,369,813.02 - - - - 1 1,161,190.94 4 7,531,003.96
（I） Net profit 23,417,390.94 2 3,417,390.94
（II）Other misc.income 3 6,369,813.02 3 6,369,813.02
Total of (I) and (II) - 3 6,369,813.02 - - - - 2 3,417,390.94 5 9,787,203.96 (III) Investment or decreasing of capital
by owners - - - - - - - -
12.． CaApmitaolu inntpoufttesdh abrye sowpaniedrsand accounted as owners - - - - - - - -
’ equity - - - - - - - -
3．Other - - - - - - - -
（IV）Profit allotment - - - - - - - 12,256,200.00 - 12,256,200.00
1.Providing of surplus reserves - - - - - - - -
3. Allotment to the owners (or shareholders) - - - - - - - 12,256,200.00 - 12,256,200.00
4．Other - - - - - - - - (V) Internal transferring of owners ’
eq1u. iCtyapitalizing of capital reserves (or to capital - - - - - - - -
sha2r.esC) apitalizing of surplus reserves (or to capital - - - - - - - -
shares) - - - - - - - -
3．Making up losses by surplus reserves. - - - - - - - -
4．Other - - - - - - - -
(VI) Special reserves - - - - - - - -
1. Provided this year - - - - - - - -
2．Used this term - - - - - - - -
IV. Balance at the end of this term 2 45,124,000.00 1 05,291,407.05 - - 3 0,499,588.38 - 7 4,737,590.02 4 55,652,585.45
Attributable profit
Parent Company Statement on Change in Owners’ Equity
January-June 2009
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
Items
Owner’s equity Attributable to the Parent Company
Capital reservesLess: Shares in stockSpecialized reserve Surplus reserves Common risk provision28
Attached II. Notes to financial statements
Shenzhen Textile (Holdings)Co., Ltd.
Notes to financial statements
January-June 2010
1.Basic Information of the Company
1. Enterprise registration address, organization mode and headquarter address.
The company was previously the Shenzhen Textile Industry Company, on April 13, 1994, approved by the
Letter(1114)No.15 issued by Shenzhen Municipal People's Government, the Company was restructured and
named as Shenzhen Municipal Textile (Group) Co., Ltd. In the same year, approved by the (1994) No.19 file of
Shenzhenshi, the shares of the company were listed in Shenzhen Stock Exchange. The Company has got the
corporate business certification of Shensizi N246747, Registration address and headquarter address are Shenfang
Building, Huaqiang Rd. North, Futian District, Shenzhen.
2. Enterprise’s business nature and major business operation.
Majored in manufacturing and im-exporting trade on textile, polarizer, clothes and associated products,
concurrently managing property leasing, storage, real estate development and hotel business, etc.
3. Names of parent company and group parent company.
The company’s parent company is Shenzhen Investment Holdings Co., Ltd.
4. The reporting person of the approval of financial statements and the reporting date of the approval of
financial statements.
The reporting person of the approval of financial statements of the company: Board of Directors of the
Company
The reporting date of the approval of financial statements of the Company: August 18, 2010
II. Principal accounting policies, accounting estimates and early errors
1.Basis for the preparation of financial statements
On the basis of continuous operation, in accordance with actual transactions and events, the company carried
out confirmation and measurement in accordance with "Accounting Standards for Business Enterprises - Basic
Standards" issued by the Ministry of Finance and other various accounting standards, on the basis of it, the
Company prepared the financial statements.
2. Statement on complying with corporate accounting standards
Based on the requirement that the financial reports edited according to above-mentioned editing conditions is
accordance with enterprise accounting standards, the company reflected its financial condition on June 30, 2010
truly and completely and business result from January to June of 2010 and cash flow information, etc.
3. Fiscal year
A calendar year, that is, from January 1 to December 31 is a fiscal year.
4. Accounting standard money
Accounting standard money is RMB.
5. Accounting process method of enterprise consolidation under same and different controlling.
（1）Enterprise merger under same control：For the enterprise merger under same control, the29
assets and liabilities obtained by the merging party from enterprise merger was measured according
to book value of the merged party on the merger date. The capital reserve was adjusted according to
the deference between the book value of net assets obtained by the merging party and the book
value of merger price paid (or the total book value of shares issued); if capital surplus was not big
for the offset, the retained earnings should be adjusted. Amalgamating parties reckon every direct relate
expenses produced in enterprise consolidation including auditing expense, valuation expense and legal service
expense paid on enterprise consolidation to current profit and loss when those expenses produced. On parent
subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing
amalgamation property balance sheet, amalgamation profit statement and amalgamation cash flow meter of
amalgamation date. In amalgamation property balance sheet, every asset and liability of amalgamated parties is
measured according to its book value. For the accounting policy adopted by the amalgamated parties is not
accordance with amalgamating party, and it is adjusted according to criterions, the book value after adjusted is
measured. The amalgamating profit chart contains income, expenses and profit happened from the beginning of
amalgamation and amalgamating date. The realized net profit before amalgamation from the amalgamated party
shall be reflected on the amalgamating profit chart. Amalgamation cash flow meter contains the cash flow of
every party in amalgation from the beginning of amalgamation and amalgamating date.
（2）Enterprise merger under different control：For the enterprise merger under same control,
the merger cost was the assets for the obtaining the control right of the party being purchased on the
purchase date, the liabilities happened or undertook and the fair value of the equity securities. For
the enterprise merger realized through a number of transactions, the merger cost was the sum of all
individual transaction. All the direct costs and related costs for the enterprise merger were included
in the cost of enterprise merger. The purchase date referred to date that the company had the control
right of the party being purchased. The difference between merger cost over the fair value of
identifiable net value obtained from the merger should be confirmed as goodwill. The difference
between the identifiable net assets of the party being purchased obtained in the merger and the
amount of identifiable net assets of the party being purch ased obtained in the merger should be
included in the loss and gain of the current period.
On parent subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing
amalgamation property balance sheet on amalgamation date; the acquired every identified asset, liability acquired
from enterprise consolidation is listed via fair value.
6. The compiling method of combined financial statements
（1）Combined financial statements has financial statements and other related material of every
subsidiary company within combined financial statements as combination basis, adjust long-term
equity investment of subsidiary company according to equity method, compensate investment, trade
activities of the company and every subsidiary company within the combined financial statements,
calculate few shareholder profit and loss and few shareholder rights and interests. Then compile the
financial statements after those activities.
（2）In compiling, if the accounting policy of any subsidiary company within the combination scope is not
accordance with it of the company, adjust it according to the accounting policy of the company, then combine.
（ 3 ） On the subsidiary company acquired from enterprise consolidation under same controlling, treat
amalgamation produced at the beginning, bring its assets, liabilities, business result and cash flow into financial
statements at the beginning of the amalgamation.
（4）On the enterprise consolidation under same controlling, the net income and loss of the amalgamated
parties is reckoned into nonrecurring profit and loss before amalgamation and separately listed in submitting30
financial statement.
（5）Recombination belongs to enterprise non-combination issue under same company controller, when the
combined parties combine the assets amount of last account year end, business income of last accounting year or
total profit of last accounting year, if it reaches or excesses 20% of relative item of the company, compile income
statements at the beginning of the combination period.
（6）For the subsidiary company acquired from enterprise consolidation under non-same controlling, in
compiling combination statements, adjust individual financial statements based on fair value of identified net
assets at the purchasing date.
7. Confirmation standard of cash and cash equivalent
Cash means the cash on hand and deposit for payment at any moment.
Cash equivalent refers to the investment with few value alteration risks that the company holds the cash with
the characters of short term (generally means 3 months from the purchasing date), strong fluidity, easy transferring
to known amount.
8 . Translating of foreign currency operations and foreign currency report form
（1）Accounting method of foreign currency operations
The foreign currency operation is translated into recording currency according to approximate exchange rate
at sight of business happening date. The approximate exchange rate at sight refers to the exchange rate at the
beginning of the business happening month.
On balance sheet date, dispose foreign currency monetary item and foreign currency non-monetary item
according to the following regulations:
A. Foreign currency monetary item is translated adopting exchange rate at sight of balance sheet date. The
balance of exchange produced from the difference between exchange rate at sight at balance sheet date and initial
confirmation or exchange rate at sight at former balance sheet date shall be reckoned into profit and loss at current
period.
B. Foreign currency non-monetary item measured with historic cost, adopt exchange rate at sight on
business happening date and not to change recording currency (amount).
C. Foreign currency non-monetary item measured by fair value adopts exchange rate at sight of fair value
confirmation date. The difference between recording currency after translating and the original recording currency
is disposed as fair value alteration and reckoned into profit and loss at current period.
（2） Method for foreign currency accounting
The subsidiaries of the company whose standard currency was foreign currency, all asset and liability items
should be converted into the standard money of parent company according to the spot rate on the balance sheet
date, and all the owners’ equity items, accept for "retained profits", should be converted into the standard money
of parent company according to the spot rate on the balance sheet date. The income and cost items in the profit
statement should be converted into the standard money of parent company according to the spot rate during the
period of consolidating financial statements. The conversion differences due to different exchange rate, should be
reflected by opening the "foreign currency conversion difference statements" in RMB. And open the "foreign
currency statements conversion differences" in cash flow statement in RMB.
9. Financial instruments
(1) Classification of financial assets:
Financial assets can be divided into: the financial assets which measured by fair value and its changes are included
in the current loss and gain (including transactional financial assets and the financial assets which measured by
fair value and its changes are included in the current loss and gain), the expired investments, loans and receivables
held, and financial assets to be sold, the four categories;
(2) Measurement of financial assets31
A. The initial recognition financial assets are accounted in accordance with fair values. For the financial
assets which measured by fair value and its changes are included in the current loss and gain, the relevant
transactional costs should be included in the current loss and gain; for other financial assets, the relevant
transactional costs should be included in the initial recognition amount.
B. The Company makes follow-up measurement on financial assets according to fair value, the transactional
cost to deal with the financial assets which may happen in the future will not be deducted. But, except the
following situations:
(a). The expired investments, loans and receivables held, should be measured according to amortized costs by
the actual interest method.
(b). The equity tool investments which do not have quotation in market and their fair value can not be
reliably measured, and the derivative financial assets which are related to the equity tool and are to be delivered to
the equity tool to account, should be measured according to costs.
(3) Determination of fair value of financial assets:
A, The financial assets which exist in the market, the quotation in the market will be determined as fair
value;
B, The financial assets which do not exist in the market, adopt valuation techniques to determine the fair
value. The results by the valuation techniques show the transaction prices which may be used in fair transactions
on the valuation day.
（4）Financial assets transfer
The company will transfer almost all risk and earnings into the transferred parties on the ownership of
financial assets or when the controlling on financial assets is given up, it will expire confirming the financial
assets.
(5). Impairment of financial assets:
On the balance sheet date, carry out inspection on the book value of financial assets which are not included in
the financial assets measured according to fair value and its changes are include in the current loss and gain. If
there are objective evidence showing that the financial assets have impairment, the provision for impairment
should be accounted. The objective evidences which show the impairment of financial assets include the
following items:
A. The issuing party or the debtor had serious financial difficulties;
B. The debtor violated the terms in the contract, such as the payment of interest or principal had default or
delayed;
C. For the consideration in economy and law, the Company made concessions to the debtor in difficulties;
D. The debtor was likely to collapse or carry out other financial restructuring;
E. The issuing party had major financial difficulties, and the financial assets can not be traded in market;
F. The debtor had major adverse changes in technology, market, economic and legal environment, and the
Company was may not be able to recover the investment costs;
G. The fair values of the equity tool investments had serious and non-temporary decline;
H. Other objective evidences which show the impairment of financial assets.
(6). Measurement of impairment losses of financial assets:
A. The financial assets measured according to fair value and its changes are include in the current loss and
gain require no test of impairment;
B. The measurement of impairment loss of expired investments: account provision for impairment according
to the difference of the value of future cash flow lower than the book value;
C. The confirmation standard and withdrawal method of doubtful accounts receivable: when single
item amount is much, separately practice deduction testing and confirm its depreciation loss and32
withdrawal doubtful accounts according to the difference between future cash flow and its book
value; when single item amount is not much, the non-decreased accounts receivable via testing,
aging analysis method shall be adopted, depreciation loss is confirmed and withdrawal doubtful
accounts according to aging of accounts of accounts receivables and regulated withdrawal ration;
when single amount is not much, while the accounts receivables with bigger risk after combination
according to credit risk nature and withdrawal doubtful accounts. The non-decreased accounts
receivable via testing, aging analysis method shall be adopted, depreciation loss is confirmed
according to aging of accounts of accounts receivables and regulated withdrawal ration.
D. Judgment of impairment of the financial assets for sale: if the fair value of the financial asset is decreasing
continuously and the decline is not temporary, the occurrence of the impairment of the financial asset will be
recognized.
10. Account receivable
（1）Accounts receivables confirmation standard and withdrawal method of doubtful accounts upon much
single accounts
Confirmation standard of doubtful accounts
receivable when single amount is much
When single account is 1 million or over it.
Withdrawal method of doubtful accounts
receivable when single amount is much
Depreciation testing is made singly; those without
depreciation evidence shall have withdrawal according
to group.
（2）For single amount is not much, but the confirmation basis of accounts receivables with much risk after
combined according to credit risk character, withdrawing method: analyze and withdraw according to aging of
accounts. Withdrawing rate is listed on the following (3）.
（3）Aging analysis method
Account age Withdrawal rate of account
receivable（%）
Withdrawal rate other
account receivable（%）
Within 1 year（including 1 year） 5% 5%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
Explanation of bad debt
reserve
---
Explanation of other
withdrawal method
---
11.Inventory
（1）Inventory classification
Inventory can be divided into five categories: raw materials, materials commissioned to process, products,
finished products, working materials;
（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.
Inventory net realizable value is the integrant value that estimated sales price deducting estimated work
completing cost and integrant estimated cost according to the normal business process.
Withdrawal method of inventory falling price reserves: with the basis that the company making complete
inventory taking at the end of medium term and end of year, on the inventory that suffered loss, entire or partial33
old and outdated or sale price lower than sales price, according to inventory cost and net realizable value (lower is
preferred), the company measure it and reckoned it according to the difference of net realizable value of single
inventory item upon similar inventory items lower than inventory cost as withdrawal inventory falling price
reserves to profit and loss at current period. In confirming net realizable value, the infection upon future item shall
be considered beside the price and cost fluctuation of the inventory at balance sheet date.
（4）Inventory system
Inventory system adopts the perpetual inventory method.
（5）Amortization method of consumption goods with low value and wrappage
Consumption goods with low value:
Consumption goods with low value adopt one time amortization method when used.
Packing:
Wrappage adopts one time amortization when used.
12．Long-term equity investment
（1）Initial investment cost confirmation
A. The long-term equity investment formed via enterprise consolidation confirm its initial investment cost
according to the following criterions:
a. On enterprise consolidation under same controlling, amalgamating parties, managing payment cash,
transferring non-cash assets or undertaking liability style as amalgamation consideration, treat the acquired equity
book value share from amalgamated parties on amalgamation date as the initial investment cost of long-term
equity investment. The difference between long-term equity investment initial investment cost and the paid cash
transferred non-cash assets and undertook liability book value is adjusted to be capital reserves; if capital reserves
are not sufficient to be deducted, which shall be adjusted to be retained earnings.
When the amalgamating parties via issuing equity securities as amalgamation consideration, treat the
acquired equity book value share from amalgamated parties on amalgamation date as the initial investment cost of
long-term equity investment. Treat the book value amount of the issued shares as capital stock, the difference
between the initial investment cost of long-term equity investment and book value amount of stock issued as
capital stock is adjusted to be capital reserves; if capital reserves is not sufficient to be deducted, which shall be
adjusted to be retained earnings.
b. On enterprise consolidation under different controlling, the confirmed amalgamation cost according to
the following criterions is as initial investment cost of long-term equity investment:
1/ On enterprise consolidation realized from one time exchanging deal, the amalgamation cost is the paid
assets, reliabilities happened or undertook, and the fair value of issued equity securities from purchasing parties on
purchasing date for the purpose of acquiring the controlling right upon the purchased parties.
2/ On the enterprise amalgation realized step by step by several times exchanging deal, the amalgamation
cost is the summation of every deal cost.
3/ Every direct associated expense produced from purchasing parties for enterprise consolidation is
reckoned to enterprise consolidation cost.
4/ If the future issues that possibly affect amalgamation cost in amalgamation contract or agreement is
promised, on purchasing date, if the future issues that possibly happen and affect amalgamation cost can be
reliably measured, purchasing parties shall reckon it to be amalgamation cost.
B 、Except the long-term equity investment formed via enterprise consolidation , the long-term equity
investment acquired through other methods is confirmed to be its initial investment cost according to the
following regulations:
a. The long-term equity investment acquired via cash payment is treated as initial investment cost according
actually paid purchase price. The initial investment cost contains the expense, tax and other necessary payout that34
directly associated to long-term equity investment.
B ． The acquired long-term equity investment via issuing equity securities is as initial investment cost
according to the fair value of equity securities.
c. The long-term equity investment input by investor is as initial investment cost according to the value
stipulated in investment contract or agreement, while the unfair value stipulated in contract or agreement is
excluded.
d.The long-term equity investment acquired via non-monetary assets exchange, e. g. if non-monetary assets
exchange has commercial nature, then the long-term equity investment took in exchange is as initial investment
cost according to fair value and payable relative taxation; if non-monetary assets exchange has no commercial
nature, then the long-term equity investment intook in exchange has the book value of out took asset in exchange
and payable relative taxation as initial investment cost.
e. On the acquired long-term equity investment via liability recombination, its initial investment cost is
confirmed by fair value and payable relative taxation.
（2）Rear measuring and profit and loss confirmation method
13. Investment property
(1). Scope of investment real estate: refers to the real estate for rent or for capital appreciation or for both of
them, including the rented land use rights, the land use rights held and to transferred, and the leased building;
(2). initial measurement of investment real estate: conduct initial measurement in accordance with the cost to
obtain it;
(3). Follow-up measurement of investment real estate: the Company conducts follow-up measurement on the
investment real estate by cost model; the follow-up expenditure relating to investment real estate, if the related
profit is likely to flow into the company and can be measured, then it should be included in the cost of the
investment real estate, other follow-up expenditures should be recognized as the current loss and gain;
(4) The classification, depreciation and amortization policies of real estate investments and the depreciation
and amortization policies of fixed assets and intangible assets should be coherent.
Provision for impairment of investment real estate should be treated according for asset impairment.
14．Fixed assets
（1）Confirmation conditions of fixed assets
The tangible assets held for producing goods, providing services, rent or operation, and the service time is
longer than one fiscal year.
（2）Fixed assets depreciation method
Classification of fixed
asset
Depreciable life（Year） Residual rate（%） Depreciation rate（%）
House and Building
–Production
35 years
4%
2.74%
House and Building-Non-
Production
40 years
4%
2.40%
Fixed assets decoration 10 years 0 10.00%
Machinery and equipment 10-14 years 4% 9.60%-6.86%
Transportation equipment 8 years 4% 12.00%
Electronic Equipment 8 years 4% 12.00%
Other 8 years 4% 12.00%
（3）Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
Judge fixed assets appearing the depreciation evidence or not at balance sheet date. If assets market value35
continuously decreases, or technology is old, damaged or long-term left un-used, draw back amount. The
measured result of recoverable amount indicates the recoverable amount of fixed assets is lower than its book
value; deduct the book value of fixed assets into recoverable amount. The deducted amount is confirmed to be
assets depreciation loss and is reckoned into benefit and loss at current period; meanwhile withdraw relative fixed
assets depreciation reserve. Once fixed assets depreciation loss is confirmed, which will not be transferred at the
later accounting period.
（4）Cognizance evidence and pricing method of financial leasing fixed assets
If all risk and reward associated to certain hired fixed asset actually have transferred, the company confirms
it to be financial leasing. Financial leased fixed assets should take the lower one of fair value of leased assets at
leasing date and lowest leasing payment, added with the initial direct expenses directly belonging to leasing item,
will be book value of leased assets. Taking the lowest leasing amount as the book value of long term account
payable, its difference will be unconfirmed financial charges. The unconfirmed financial charges will adopt actual
interest rate method to allocate within leasing period. The leased fixed assets ensure depreciation rate according to
lease term and estimated net salvage and accrual of depreciation.
15. Projects under construction
(1). Methods for accounting projects under construction.
The projects under construction include pre-construction preparations, the building projects under construction,
installation projects, technical transformation projects and overhaul works, etc. The projects under construction
should be accounted according to actual expenditures by items, and should be converted to fixed assets when the
projects reached the predicted use state. The costs for borrowing relating to projects under construction (including
loan interests, excess discount amortization, exchange gains and losses, etc.), which should be included in the cost
before the related projects reach the predicted use state, and included in the current financial cost after the related
projects reach the predicted use state;
（2）Depreciation preparation of construction in progress
Make complete inspection on construction in progress on the date of balance sheet, judge fixed assets
occurring possible depreciation evidence or not. If yes: (1) project in progress without construction for long time
is estimated not to start working again in future 3 years, (2) project in progress has evidence that its character and
technology have fallen behind and the economic benefit brought has great uncertainty and other depreciation
evidence, which shall be estimated its recoverable amount. The result of recoverable amount shows the
recoverable amount of project in progress is loss than its book value, writedown its book value of project in
progress into recoverable amount. The written down amount is confirmed to be assets depreciation loss and is
reckoned into current period profit and loss, meanwhile withdraw relative depreciation reserve of project in
progress. Once depreciation loss of project in progress is confirmed, which will not be transferred.
16.Borrowing cost
(1). The borrowing expenses, if they comply with the capitalization conditions, should be capitalized and
included in the cost of relevant assets; other borrowing expenses, should be determined according to the amount
occurred and be included in the current loss and gain. If the borrowing expenses meet the following conditions at
the same time, they should be capitalized:
A. Capital expenditures have already occurred, capital expenditures include the expenditures paid by cash,
transferring non-cash assets or by bearing interest-debt;
B. The borrowing costs have occurred;
C. The construction to make the asset to reach the intended use state or sale state, or the
production activities have already begun.
(2). When the assets which meet the capitalization condition reach the intended use or sale
state, the capitalization of the borrowing expenses should be stopped. The borrowing expenses for36
the assets which meet the capitalization conditions and reach the intended use or sale state, the
expenses should be confirmed according to the amount occurred, and be included in the current loss
and gain.
17. Biological assets
（1）Simultaneously, biological assets that meets the following conditions will be confirmed:
A. For the past trade or issues, the company possesses or controls biological assets;
B. The economic interest associated with the biological assets may flow into the company;
C. The biological assets cost can be reliably measured.
（2）Biological assets is divided into consumable biological assets, manufacturing biological assets and
public welfare biological assets.
（3）Biological assets is initially measured according to cost.
（4）On the date of balance sheet, check consumable biological assets, if there are specific evidences
showing the reasons like natural disasters, plant diseases and insect pests, animal epidemic situation attack or
market requirements, make the net realizable value of consumable biological assets or recoverable amount of
manufacturing biological assets are lower than their book value, according to the difference between net realizable
value or recoverable amount and their book value, withdraw biological assets depreciation preparation or value
decreasing preparation and reckon it to current profit and loss. If the contributing factor of consumable biological
assets value decreasing has already disappeared, the deducted amount will be resumed and is transferred within
the original withdrawn price decreasing standard and transferred amount is reckoned into current profit and loss.
18..Intangible assets
(1). Intangible asset refers to the non-monetary assets owned or controlled by a company with no identifiable
physical forms, including proprietary technology, right to use land;
(2). Intangible asset is valuated according the actual cost to obtain it;
(3). For the intangible assets with definite service life, since the availability of the intangible assets, they
should be amortized by straight-line method within the service life, and included in the current loss and gain; the
intangible assets with no definite service life will not be amortized; the company should conduct review on the
service life and amortization methods of the intangible assets at the end of the year, if the service life and
amortization methods are inconsistent with what estimated previously, then the amortization period and
amortization methods should be changed.
（4）Provision for impairment of investment assets
Inspect the ability of every intangible assets bring to future economic benefit to the company, when any one
of the following exists: (1) certain intangible assets has been replaced by other new technology, which make its
ability bringing benefit to enterprise seriously affected; (2) the market price of certain intangible assets greatly fall
at the current period and will not resume within the left amortization period; (3) certain intangible assets has
overpasses legal protection period, but it still has the depreciation evidence with partial usage value, then valuate
its recoverable amount. The measuring result of recoverable amount shows if the recoverable amount is less than
its book value, then write-down its book value into its recoverable amount, the written down amount is confirmed
to be assets depreciation loss and reckoned into to current profit and loss, meanwhile withdraw corresponding
intangible assets depreciation reserve; (4) For other conditions that fully prove certain intangible assets
substantially produced depreciation reserve, withdraw intangible assets depreciation reserve according to the
difference between recoverable amount and book value. Once intangible assets depreciation loss is confirmed,
which will not be written back in the later accounting period.37
19.Long-term amortization expenses
(1). Long-term deferred expenses refer to all the expenses which should be amortized in the current period
and in the future periods and the amortization period is longer than one year;
(2). Long-term deferred expense is valuated according to actual cost, the installation cost should be equally
amortized during two major overhauls or the contract period (depends on which is shorter), other long-term
deferred expenses should be equally amortized according to the benefit period of the project. For the long-term
deferred expenses which can not bring predicted profit in the future accounting period, all the unamortized value
should be converted to the current loss and gain.
20.Predicted liabilities
(1). The liabilities which are relevant to contingent events and meet the following conditions at the same
time, the Company recognizes it as predicted liabilities: the liability is the current obligation the company
undertakes; the performance of the liability may result in the outflow of economic interests; the amount of the
liability can be reliably measured;
(2). If the predicted liability to be fully or partly paid by the company and be compensated by the third party,
the compensation amount can be recognized as assets individually only when it can be basically recovered, at the
same time, the compensation on the asset should not be more than the corresponding book amount of the
predicted liability.
21.Revenue
(1). Revenue from goods sale
After the risks and rewards of the goods are transferred to the buyer, the company will no longer conduct the
management right and the actual control right, and the relevant incomes have been received or the documents of
receiving have been obtained, and the cost of the goods can be reliably measured, the realization of the revenue
should be confirmed.
The time confirmation of specific sales of main trade styles:
A. FOB is the trade style of goods exportation, means that the seller delivers when the goods pass the ship’s
rail at the named port of shipment in contract;
B. CIF is the trade style of goods exportation, means that the seller delivers when the goods pass the ship's
rail in the destination port ;
C. Domestic sales time confirmation means the time of commodities ownership evidence transfer or physical
goods delivery.
(2). Revenue from service
In the same fiscal year and the service has been completed, the income should be confirmed upon the
completion of the service; If the starting and completion of the service belong to different fiscal year, then when
the service can be reliably measured, the service income should be confirmed at the period end according to the
percentage of the service not completed.
(3). Incomes from transferring asset use right.
Incomes from transferring asset use right include interest income and income from use payment;
The amount of interest income, is determined in accordance with the time and actual interest rate; the income
from use payment is determined according to the time and method of relevant contract and agreement.
22. Governmental subsidy
It contains financial appropriations, financial discount, taxation return and transfer non-monitory assets free
of charge. The governmental subsidy associated to assets, the company confirms it to be deferral benefit. When
relative assets reach to scheduled usage condition, reckon it to be benefit and loss of every period at average
within the usage lifetime of the assets. If relative assets is sold, transferred, scrapped or damaged before lifetime38
expiration, transfer the deferral benefit balance into current period benefit and loss of assets disposal. The received
governmental subsidy associated to benefit is confirmed to be deferral benefit if used for the remedy of relative
expense or loss of later period; and it is reckoned into benefit and loss at current period during relative expense
confirmation; for those used for compensation of relative expense or loss happened, which will be reckoned
directly into benefit and loss at current period.
23. Deferred income tax assets/Deferred income tax liability
（1）Confirmation of deferred income tax assets
A.Limited by the company possibly acquired taxability amount for deducting temporary difference, confirm
the deductible difference deferred income tax assets produced from temporary difference. But the deferred income
tax assets produced from the initial confirmation of assets or liability in trade with the following characters are not
confirmed:
a. The trade is not enterprise consolidation ;
b. When trade happens, which will neither affect accounting benefit nor affect taxability amount of income
(or deduct loss).
B. The company, on the deductible temporary difference associated to investment of subsidiary company,
affiliated company and partnership business simultaneously meet the following conditions, confirms relative
deferred income tax assets:
a. Temporary difference most likely is transferred in the foresight future.
b. Taxability amount of income that most likely used to deduct temporary difference in future.
C. The company confirms relative deferred income tax assets for transferable later annual deductible loss and
taxation decreasing with future taxability amount of income for deducting deductible loss and taxation decreasing
as limitation.
(2) The confirmation of deferred income tax liability
Besides the deferred income tax liability produced under the following conditions, the company confirms all
deferred income tax liability produced by all taxability temporary difference:
A. The initial confirmation of business Goodwill;
B. Simultaneously meeting the initial confirmation of assets or liability produced in trade with the characters
of following characters:
a. The trade is not enterprise consolidation;
b. Trade occurrence affects neither accounting benefit nor taxability amount of income (or the deductible
loss).
C. When the company has relative taxability temporary difference with its subsidiary company, affiliated
company and partnership business, and simultaneously meets the following conditions:
a. Investment enterprise can control the transferring time of temporary difference;
b. Temporary difference may possibly not transfer in the foreseeable future.
24. Hedging accounting
(1) The hedged item of the company refers to storage raw material and raw material purchasing order
appointed to be headged object that make company facing fair value alteration risk.
(2) Hedging instruments of the company refers to the transferring instrument that is appointed and its fair
value alteration can eliminate the fair value alteration of hedged items-----forward contract.
(3) If fair value hedging simultaneously meet the following conditions, the company only can use hedging
accounting method to dispose:
A. When hedging begins, the company has official appointment on hedging relation (namely the relation
between hedging instrument and hedging items), and prepares the official written file about hedging period risk,
risk management target and hedging policy.39
B. The estimated highness of the hedging period is effective, and meets the risk management policy
confirmed originally by the company for the hedging relation.
C. Hedging effectiveness can be reliably measured.
D. The company continuously makes evaluation on the effectiveness of hedging period and confirms that the
hedging period is highly effective during the accounting period appointed in hedging relations.
（ 4 ） For fair value hedging that meeting above-mentioned conditions, implement accounting disposal
according to the following regulations:
A. The benefit or loss produced from alteration of fair value hedging is reckoned into benefit and loss at
current period.
B. The benefit or loss formed via risk in hedged period on hedged item is reckoned into benefit and loss at
current period; meanwhile adjust the book value of the hedged item.
C. Any one of the following conditions is satisfied in hedged period, the company will expire using faire
value hedging account:
a. Hedging instruments have expired, been sold, contract expire or come into practice.
b. The hedging will not satisfy the conditions that using hedging
c. Enterprise cancels the appointment of hedging relation.
25.Imporant Accounting policies and Accounting estimated Changed.
（1）Accounting policy alteration
Unit：RMB
The report mainly reflects accounting policy alteration
Alteration content and reason of
accounting policy
Procedures for
examination and
approval
Item name in report forms
affected
Amount affected
N/A --- --- ---
（2）Alteration of accountant estimation
Unit ：RMB
The report mainly reflects accounting estimation alteration
Alteration content and reason of
accounting estimation
Procedures for
examination and
approval
Item name in report forms
affected
Amount affected
N/A --- --- ---
26. Former accountant errors correction
Unit ：RMB
（1）Backward restatement method
In the report period, find the error of former accountant via backward restatement method or not.
Correction content of accountant
errors
Approved disposal condition Cause
N/A --- ---
（2）Future applicable methods
In the report period, find the error of former accountant via future applicable methods or not.
Correction content of accountant Approved disposal condition Reason of adopting future40
errors applicable methods
N/A --- ---
III.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
VAT Incomes from product sales 13.00%、17.00%
Business tax.
Providing labor services, real estate sales, the transfer of
intangible assets
3.00%、5.00%
City construction
tax
VAT, sales tax, turnover tax, etc 5.00%、1.00%
Business income
tax
Taxable income 22.00%
The company has not the conditions that every branch company or branch plant independently hand in
business income tax.
2. Tax preference and approval file
According to Enterprise Income Tax Law of the People's Republic of China (Order of the President of the
People's Republic of China No. 63) and Implementation Regulations of the Enterprise Income Tax Law of the
People's Republic of China (Decree No.512 of the State Council), from January 1, 2008, company begins to
implement new enterprise income tax law and tax rate is 25%. Additionally, according to Notification of the State
Council on Carrying out the Transitional Preferential Policies concerning Enterprise Income Tax (No. 39 [2007]
of the State Council ), the enterprise who originally enjoy low tax rate preference policy, will gradually transfer
into lawful tax rate within 5 years of new tax law implementation. Thereinto, enterprises enjoying 15% tax rate
will implement tax rate 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012. So the
enterprise will implement enterprise income tax rate 22% in this year.
IV. Enterprise consolidation and combined financial statements41
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
Full name
of
subsidiary
Subsidi
ary type
Regis
tratio
n
place
Business Registered
capital Business scope
Actual capital
amounts of
the end
Other projects
balance
essentially
from net
investment to
subsidiary
Holdin
g
proporti
on
(%)
Proport
ion of
voting
rights(
%)
Wheth
er
consoli
dation
of
report
form
Inter
est
of
mino
rity
share
hold
er
Amount
used to
write
down lost
included
in
minority
sharehold
er interest
After wrote down current
period loss of minority
shareholders over equity
beginning share of minority
shareholders in the
subsidiary from the parent
company’s share ,Balance of
Owner's equity
Shenzhe
n Jinlan
Decorati
ve
Articles
Industri
al Co.,
Ltd.
Wholly
-owned
subsidi
ary
Shen
zhen
Fabrics,
bedding,cl
othing
nabyfactu
bg
4,000,000.00 Fabrics, bedding,clothing, textiles raw
materials processing manufacturing,
wholesale and retail.
4,000,000.00 --- 90.00 100.00 Yes No --- ---
Shenzhen
Lisi
Industrial
Co., Ltd
Wholly
-owned
subsidi
ary
Shen
zhen
Domestic
commerce
, materials
supply
and sales
2,360,000.00 Domestic commerce, materials supply and
sales (excluding franchise, special
control, proprietary products)
2,360,000.00 --- 90.68 100.00 Yes No --- ---
Shenzhen
Huaqiang
Hotal
Wholly
-owned
subsidi
ary
Shen
zhen
Accommo
dation,
restaurant
s,
business
center
10,005,300.00 Accommodation, restaurants, business
center; ticket consignment; Property
Management (required to obtain the
relevant qualification certificate for their
operations)
10,005,300.00 --- 95.00 100.00 Yes No --- ---
Shenzhe
n
Shenfan
g
Property
Manage
ment
Co.,
Ltd.
Wholly
-owned
subsidi
ary
Shen
zhen
Property
managem
ent
1,604,000.00 Company property management 1,604,000.00 --- 93.75 100.00 Yes No --- ---42
Full name
of
subsidiary
Subsidi
ary type
Regis
tratio
n
place
Business Registered
capital Business scope
Actual capital
amounts of
the end
Other projects
balance
essentially
from net
investment to
subsidiary
Holdin
g
proporti
on
(%)
Proport
ion of
voting
rights(
%)
Wheth
er
consoli
dation
of
report
form
Inter
est
of
mino
rity
share
hold
er
Amount
used to
write
down lost
included
in
minority
sharehold
er interest
After wrote down current
period loss of minority
shareholders over equity
beginning share of minority
shareholders in the
subsidiary from the parent
company’s share ,Balance of
Owner's equity
Shenzhe
n
Beauty
Century
Garment
Co.,
Ltd.
Wholly
-owned
subsidi
ary
Shen
zhen
Productio
n of fully
electronic
jacquard
knitting
whole
shape
25,000,000.00 Production of fully electronic jacquard
knitting whole shape (without restrictions
on the project); clothing, textiles and
related accessories for buying and selling
(excluding franchise, special control,
proprietary products); operating import
and export business (by "Import and
Export Enterprise Qualification
Certificate" deep free trade Certificate Zi
No. 2002-339 tube business); industrial
projects (the specific items to be declared
separately).
25,000,000.00 75,600.00 100.00 100.00 Yes No --- ---
Shenzhen
Shenfang
Import
and
Export
Co., Ltd.
Wholly
-owned
subsidi
ary
Shen
zhen
Operating
import
and
export
business
5,000,000.00 Operating import and export business (the
specific approval by the relevant import
and export business handled)
5,000,000.00 7,168,680.72 100.00 100.00 Yes No --- ---
Shenzhen
Zhongxin
g Fibre
Folds
Cotton
Clothing
Ornament
Co., Ltd.
Wholly
-owned
subsidi
ary
Shen
zhen
Spewing
acupunctu
re cloth,
revision,
and
fusible
interlining
fabric
1,680,000.00 Production and operation of bedding,
clothing and textiles for infants and
young children.
1,680,000.00 618,769.07 75.00% --- No No --- ---
Shenzhe
n
Tianlon
gI
ndustry
and
Trade
Co.,
Ltd.
Control
compan
y Shen
zhen
Operating
import
and
export
business
1,900,000.00 Textile production and processing
(production site business license to be
declared separately); domestic commerce,
materials supply and marketing industry
(excluding franchise, franchising, has
exclusive control of goods). Import and
export business card in accordance with
the trial of No. 126 "Shenzhen Municipal
Foreign Trade Enterprise validation
certificate" .
1,900,000.00 686,391.83 50.00% --- No No --- ---
Note: The shareholding proportion of consolidated subsidiaries is inconsistent with the vote right proportion, which is through the way of getting the cross-shareholdings among subsidiaries to make the43
parent company actually control 100%; such as Notes 4, 3 above, Shenzhen Zhongxing Fiber Cotton Garments Co., Ltd. and ShenzhenTianlong Industry & Trade Co., Ltd.are not included in the merger
within the current period.
（2）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
（3）Subsidiary company acquired via enterprise consolidation under non-same controlling
Full name
of
subsidiary
company
Subsidi
ary tyle
Regis
tratio
n
Place
Business
character Registration capital Scope of business
Actual capital
amounts of
the end
Other projects
balance
essentially
from net
investment to
subsidiary
Holdin
g
proporti
on
(%)
Proport
ion of
voting
rights(
%)
Wheth
er
consoli
dation
of
report
form
Inter
est
of
mino
rity
shar
ehol
der
Amount
used to
write
down lost
included
in
minority
sharehold
er interest
After wrote down current
period loss of minority
shareholders over equity
beginning share of minority
shareholders in the
subsidiary from the parent
company’s share ,Balance
of Owner's equity
Shenzhen
Shengbo
Optoelect
ronics
Technolo
gy Co.,
Ltd
Limited
Liabilit
y
Compa
ny
Shen
zhen
Productio
n and
sales of
polarizer
RMB 78 million Wholesale, manufacturing and
process various specifications
materials and apparatus of
polarizer, LCD; import and
export business (except projects
inhibited by law, administrative
regulation, State Department),
the limited projects shall be
managed with the permission.
RMB78 million 56,435,167.92 100 100 Yes No --- ---44
2. In the reporting period, the company has no main body with special target or operational
entity with controlling right formed from entrusted management or leasing.
3. There is no change for Consolidation scope in the report period
4. The main body taken into combination scope at current period and main body not to take into
consolidation scope.
5. Enterprise consolidation under same controlling at the end of current period.
6. Enterprise consolidation under non-same controlling within the reporting period.
7. In report period, sell stock right losing controlling right to decrease subsidiary company.
8. Reverse purchase does not appear within the reporting period of the company.
9. Consolidation and amalgamation does not happen within the reporting period of the
company.
V. Notes of consolidated financial statements
1. Currency funds
Unit：RMB
Items
Year-end balance Year-beginning balance
Original
currency
Exchan
ge rate RMB
Original
currency
Exchang
e rate RMB
I. Cash
RMB 70,630.96 1.00 70,630.96 88,083.59 1.00 88,083.59
HKD 103,437.25 0.87 89,990.41 187,496.71 0.88 165,067.36
USD 14,704.05 6.79 99,840.50 14,704.05 6.83 100,368.50
Subtotal --- --- 260,461.87 --- --- 353,519.45
II.Bank deposit
RMB 97,328,491.55 1.00 97,328,491.55 85,653,526.93 1.00 85,653,526.93
HKD 678,621.41 0.87 590,400.63 1,749,685.98 0.88 1,540,377.23
USD 288,216.31 6.79 1,956,988.74 1,233,897.35 6.83 8,425,174.50
EUR 20.00 0.077 1.54 16.00 0.07 1.18
Japanese Yen --- --- 99,875,882.46 --- --- 95,619,079.84
Subtotal
III. Other capital 2,616,308.88 1.00 2,616,308.88 235,725.14 1.00 235,725.14
RMB 265,167.76 6.79 1,800,489.09 183,471.23 6.83 1,252,759.93
USD 47,809,978.35 0.077 3,681,368.33 52,804,511.00 0.07 3,879,230.59
Japanese Yen --- --- 8,098,166.30 --- --- 5,367,715.66
Subtotal --- --- 108,234,510.63 --- --- 101,340,314.9545
Items
Year-end balance Year-beginning balance
Original
currency
Exchan
ge rate RMB
Original
currency
Exchang
e rate RMB
Total
As of June 30, 2010，Monetary fund has not these conditions such as usage limitation for mortgage, pledge or
frozen fund, stored overseas, with potential recovery risk.
2. Bill receivable
（1）Classification Bill receivable
Unit：RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 150,000.00 1,734,495.00
Total 150,000.00 1,734,495.00
（2）As of June 30,2010，The company has no notes receivable pledged.
（3）As of June 30,2010，The company has not the condition that bill transferred into bill of account.
3.Account receivable
（1）Classification Account receivable :
Unit :RMB
Classification
Year-end balance Year-beginning balance
Book balance
Provision for bad
debts
Book balance
Provision for bad
debts
Amount
Proportion
（%）
Amount
Proportion
（%）
Amount
Proportion
（%）
Amount
Proportion
（%）
Receivables
with large
individual
amount.
40,703,832.25 66.45% 2,035,191.61 27.69% 22,929,967.43 50.79% 1,279,498.37 21.59%
Receivables
without large
individual
amount, but
with great
risk after
combined
according to
risk
characteristics
821,797.27 1.34% 101,203.73 1.38% 751,016.27 1.66% 94,125.63 1.59%
Other minor
receivables
19,733,761.44 32.21% 5,212,479.30 70.93% 21,466,533.92 47.55% 4,552,916.19 76.82%46
Total 61,259,390.96 100.00% 7,348,874.64 100.00% 45,147,517.62 100.00% 5,926,540.19 100.00%
Category explanation of accounts receivable:
Combining with the company's assets and the structure of credit receivables, 1 million or more is the
standard to divide individual amount; Separate amount is not large, combined according to credit risk character;
the fund receivable with large combination risk refers to the fund receivable with ending balance of lower of 1
million RMB with over 12 months of aging of account.
（ 2 ） Separate amount is large at end of period or doubtful accounts reserves of account receivable with
separate value decreasing test:
Unit：RMB
Account receivable
Book balance
Provision for bad
debts
Allotment rate Reason
Above 1 million
RMB 40,703,832.25 2,035,191.61
--- ---
Below 1 million
RMB 4,705,853.16 4,460,089.70
--- Obvious evidence
displaying depreciation
Total 45,409,685.41 6,495,281.31
（3）Separate amount is not large, the account receivable with big combination risk after combined via risk
character:
Unit ：RMB
Age
Year-end balance Year-beginning balance
Book balance
Provision for
bad debts
Book balance
Provision for
Amount bad debts
Proportion
（%）
Amount
Proportion
（%）
Within 1
year -- --- --- -- --- ---
1-2 years 726,677.27 88.43% 72,667.73 655,896.27 87.33% 65,589.63
2-3 years 95,120.00 11.57% 28,536.00 95,120.00 12.67% 28,536.00
3-4 years -- -- --- -- -- ---
4-5 years -- -- --- -- -- ---
Over 5
years -- -- --- -- -- ---
Total 821,797.27 100.00% 101,203.73 751,016.27 100.00% 94,125.63
（4）This period has no complete account bad debt reserves of last period or the ratio of bad debt reserves is
large, which will withdrew or transferred at this current or the withdrawal rate or transferring rate is bigger at this
period.
（5 ）The company has no the conditions that account receivable is withdrew via recombination or other
styles.
（6）Account receivable with actual cancel after verification at this reporting period.
Unit：RMB
Unit name Character of
accounts
receivable
Amount cancelled
after verification
Reason of
cancellation after
verification
Produced via affiliated
business or not
--- --- --- --- ---47
Total -- -- --
（7）As of June 30,2010，no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right
and other related units.
（8）The front 5 units’ information of account receivable
Unit：RMB
Unit name Relation with
the company
Amount Fixed year Percentage of account
receivable
Baolai Company
Non-Related
parties 6,461,453.36
Within 1
year 10.55%
Jiangmen Yidu Company
Non-Related
parties 3,658,939.98
Within 1
year 5.97%
Dongguan Mingwei
Non-Related
parties 2,449,157.57
Within 1
year 4.00%
Dongguan Fuxian Company
Non-Related
parties 2,296,518.76
Within 1
year 3.75%
Riguang Company
Non-Related
parties 2,275,070.96
Within 1
year 3.71%
Total -- 17,141,140.63 27.98%
（9）Account receivable from relation parties
Unit：RMB
Unit name Relation with the
company
Amount Percentage of account receivable
--- --- --- ---
Total --
（10）Account receivable confirmed at the expiration date of this period.
（11）Securitization with account receivable as target does not appear.
4.Other receivable
（1）Category of other account receivable:
Unit：RMB
Classification
Year-end balance Year-beginning balance
Book balance
Provision for bad
debts
Book balance Provision for bad debts
Amount
Propo
rtion
（%）
Amount
Propo
rtion
（%）
Amount
Propor
tion
（%）
Amount
Proport
ion（%）
Receivables with large
individual amount. 28,206,595.27 87.73% 11,319,837.94 90.48% 30,502,009.00 87.06% 11,346,480.88 90.60%
Receivables without
large individual
3,221,210.98 10.02% 1,154,589.50 9.23% 3,047,342.21 8.70% 1,102,868.87 8.81%48
amount, but with great
risk after combined
according to risk
characteristics
Other minor
receivables 724,177.60 2.25% 36,208.87 0.29% 1,485,747.09 4.24% 74,287.35 0.59%
Total 32,151,983.85 100.00% 12,510,636.31 100.00% 35,035,098.30 100.00% 12,523,637.10 100.00%
Other Classification：
Combining with the company's assets and the structure of credit receivables, 1 million or more is the
standard to divide individual amount;
Separate amount is not large, but the combination risk after combined according to credit risk character is big,
these account receivable refers to those with ending balance being below 1 million RMB and account age is over
1 year.
（2）Separate amount is big at end of the period or not big but other account receivable and doubtful reserves
shall be withdrawn.
Unit：RMB
Other Account
receivable
Book balance
Provision for bad
debts
Allotment
rate
Reason
Above 1 million RMB 28,206,595.27 11,319,837.94 --- ---
Below 1 million RMB --- --- --- --
Total 28,206,595.27 11,319,837.94
（3）Separate amount is not large, the account receivable with big combination risk after combined via risk
character:
Unit：RMB
Age
Year-end balance Year-beginning balance
Book balance
Provision for
bad debts
Book balance
Provision for
Amount bad debts
Proportion
（%）
Amount
Proportion
（%）
Within 1
year --- --- -- --- -- ---
1-2 years 1,083,810.30 33.65% 128,775.26 909,941.53 29.86% 77,054.63
2-3 years 923,759.70 28.68% 277,127.91 923,759.70 30.31% 277,127.91
3-4 years 946,195.15 29.37% 481,240.50 946,195.15 31.05% 481,240.50
4-5 years --- --- --- --- --- ---
Over 5 years 267,445.83 8.30% 267,445.83 267,445.83 8.78% 267,445.83
Total 3,221,210.98 100.00% 1,154,589.50 3,047,342.21 100.00% 1,102,868.87
（4）This period has no bad debt reserve, or withdrawn bad debt reserves ratio is bigger, which is taken back
or transferred wholly at this period, or the withdrawal or transferring ratio is bigger. This period has no account
receivable taken back by recombination or other styles.
（5）As of June 30,2010 no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right
and other related units.49
（6）The front 5 units’ information of Other account receivable
Unit：RMB
Unit name Relation with the company Amount Fixed year Percentage of account
receivable
Jiangxi Xuanli String
Company Non-related parties 14,389,044.60 Within 1 year 44.75%
Export rebates Non-related parties 10,408,926.48 Within 1 year 32.38%
Anhui Huapeng Textile
Company Enterprises with share 1,800,000.00 Within 1 year 5.60%
Nanshan auxiliary projects Non-related parties 1,608,624.19 Within 1 year 5.00%
Shenzhen Tianglong
Industry and trade Co.,
Ltd.
Not absorbed into subsidiary
company within
combination scope 686,391.83 2 years 2.13%
Total 28,892,987.10 89.86%
（7）Account receivable from Related affiliated parties
Unit：RMB
Unit name Relation with the company Amount Percentage of account
receivable
Shenzhen Tianglong Industry and
trade Co., Ltd.
Not absorbed into subsidiary
company within combination
scope 686,391.83 2.14%
Jordan Garnent Factory Affiliated enterprise 183,906.56 0.57%
Shenzhen Xieli Automobile
Co., Ltd. Affiliated enterprise 169,262.00 0.53%
Anhui Huapeng Textile Company Enterprises with share 1,800,000.00 5.60%
Shenzhen Zhongxing Fibre Folds
Cotton Clothing Ornament Co., Ltd.
Not absorbed into subsidiary
company within combination
scope 618,769.07 1.92%
Total 3,458,329.46 10.76%
（9）Account receivable confirmed at the expiration date of this period.
（10）Securitization with account receivable as target does not appear.
5.Prepayments
（1）Prepayments age :
Unit：RMB
Age
Year-end balance Year-beginning balance
Amount Proportion（%） Amount Proportion（%）
Within 1 year 21,577,568.35 100.00% 30,049,700.54 99.44%
1-2 Years --- --- 84,567.38 0.28%
Over 2 years --- --- 86,112.89 0.28%
Total 21,577,568.35 100.00% 30,220,380.81 100.00%
（2）The front 5 units’ information of Prepayments
Unit ：RMB50
Unit name
Relation with
the company
Amount Time
Reason of not
clearing
Shenzhen Lianya Textile Co., Ltd. Supplier 4,580,121.23 Within 1 year
Jiangyin Xingda Ranzheng Company Supplier 4,000,000.00 Within 1 year
Nanjing Chufengjuan Supplier 3,757,254.94 Within 1 year
Sanjing Electronic Film (HK) Co., Ltd. Supplier 3,724,437.92 Within 1 year
Zhangjiagang Jierou Imports & exports
Co., Ltd. Supplier
2,800,000.00 Within 1 year
Total 18,861,814.09
The explanation of major units of Prepayments : account receivable mainly refers to the supplier of company’s
main material.
（3）As of June 30, 2010，In the balance of accounts payable, there were no payables to shareholders holding
5% (including 5%) or more of the voting right of the Company;
（4）The advance payment decreased 28.6% to RMB8,642,800 at the end of the period, compared to the
beginning of the period. The decrease was due to the advance payment from the export trading business being
transferred to costs at the end of the period.
6.Inventory
（1）Inventory types
Unit：RMB
Items
Year-end balance Year-beginning balance
Book balance Provision for
bad debts
Book value Book balance Provision for
bad debts
Book value
Raw materials 38,069,899.86 1,780,738.14 36,289,161.72 28,614,393.38 1,765,646.73 26,848,746.65
Processing
products 8,770,936.88 --- 8,770,936.88 5,985,008.81 --- 5,985,008.81
Stock goods 14,294,305.80 1,390,117.09 12,904,188.71 10,313,666.31 1,286,690.58 9,026,975.73
Commissioned
goods 1,608,278.45 1,599,216.72 9,061.73 1,625,811.68 1,599,216.72 26,594.96
Low value
consumable 774,579.34 77,122.70 697,456.64 494,283.03 77,122.70 417,160.33
Total 63,518,000.33 4,847,194.65 58,670,805.68 47,033,163.21 4,728,676.73 42,304,486.48
（2）Allowance for duction of inventory to market
Unit：RMB
Type
Book balance
at year
beginning
Amount
accounted in
current period
Amount Decreased in current
period Book balance at
Transferred period end
back
Reselling
Raw materials
1,765,646.73 15,091.41 --- --- 1,780,738.14
Processing
products --- --- --- --- ---
Stock goods
1,286,690.58 103,426.51 --- --- 1,390,117.09
Commissioned 1,599,216.72 1,599,216.7251
goods --- --- ---
Low value
consumable 77,122.70 --- --- --- 77,122.70
Total
4,728,676.73 118,517.92 --- --- 4,847,194.65
（3）Condition of stock value decline
Items Base of stock value decline Reason of issueing back to
stock value decline plan of this
period
Proportion of issueing back
amount to the the stock
balance at this period
Raw materials Notes 1 --- ---
Stock goods Notes 1 --- ---
Processing
products
Notes 1 --- ---
Turnover materials Notes 1 --- ---
Consumptive
biological assets
Notes 1 --- ---
Notes1 ： As of June 30,2010 ， The Company determines their net realizable value in acordance with the
estimated selling price less the stock to completion estimated to occur when the cost of the estimated cost of sales
and related post-tax amount and analyze with comparing the book value , whereby provision for impairment.
7. Disposable financial asset
（1）Financial assets available for sale
Unit：RMB
Items Ending fair value Beginning fair value
Stock investment 66,188,811.00 97,228,693.20
Total 66,188,811.00 97,228,693.20
This issue will be re-held-to-maturity investments classified as available for sale financial assets, the current
re-classification of the amount of RMB 0.00 , the total amount of re-classification before the held-to-maturity
investments 0.00% the proportion of the total.
Explaination of financial assets available for sale: the amount of available for sale assets are held by
Shenzhen Victor Onward Textile Industrial Co., Ltd. shares, the current through secondary market to sell
1,122,768 shares, *ST Shen Victor Onward A end of the company holds a total of 10,182,894 shares of the
outstanding shares ,of the highest A share price is 6.5 yuan.52
8. Investment to joint venture and united venture
Unit：RMB
Name Corporation Type Registration
place
Legal
Represent
ative
Business
Nature
Registered
Capital
Company
shareholding
percentage (%)
Company vote
right
percentage in
the invested
unittion of
units (%)
Ending total
assets
Ending total
liabilities
Ending net
assets
Total business
revenues at this
period
Current
net profit
I. Joint venture
Shenzhen Trademark
Factory Co. Ltd. Limited Company Shenzhen
Feng
Junbin
Service
4.7 million
50.00% 50.00% 5,944,166.62 350,345.22 5,593,821.40 916,316.00 395,866.98
Shenzhen Xieli
Automobile Co., Ltd. Limited Compan Shenzhen
Ye
Yongling
Manufacturi
ng 3.12 million 50.00% 50.00% 6,031,283.72 2,006,339.46 4,024,944.26 1,049,120.00 -253,866.69
II. Affiliated enterprise
Shenzhen Changlianfa
Printing & dyeing
Company Limited Compan Shenzhen
Zhu
Meizhu
Service
6.47 million 40.25% 40.25% 5,200,600.99 1,019,398.36 4,181,202.63 210,600.00 36,826.83
Jordan Garment Factory
Limited Compan Jordan
Chen
Wenxian
Manufacturi
ng USD1 million 35.00% 35.00% USD2,030,974.74 USD1,524,715.45 USD506259.29 USD2,321,506.27 USD406,355.92
Hengshun （ Saipan ） Industry
Co., Ltd. Limited Compan Saipan ---
Manufacturi
ng
USD6.96
million
35.00% 35.00%
--- --- --- --- ---
There is no significant difference among the significant accounting policy of joint venture and Affiliated enterprise , the accounting estimate and the company accounting policy, the accounting
estimate.53
9. Long term share equity investment.
(1) Long-term equity investments are listed according to the situation of investment unit :
Unit ：RMB
Name
Accountin
g method
Initial investment
cost
Original balance change
Ending
Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explaination of
diffirence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue
Current
devalue
Cash
bonus
Shenzhen Jintian Industry Co.,
Ltd.
Cost
method 14,831,681.50 14,831,681.50 --- 14,831,681.50
4.00% 4.00%
---
14,831,681.50 --- ---
Shenzhen Trademark
Factory Co. Ltd
Equity
method 2,040,102.73 4,421,322.17 -1,202,066.51 3,219,255.66
50.00% 50.00%
---
--- --- 1,400,000.00
Shenzhen Xieli
Automobile Co., Ltd.
Equity
method 1,529,483.67 2,477,112.59 -197,985.46 2,279,127.12
50.00% 50.00%
---
266,654.99 --- ---
Shenzhen Changlianfa Printing
and dyeing Company
Equity
method 2,524,500.00 1,668,111.26 14,822.80 1,682,934.06
40.25% 40.25%
---
--- --- ---
Jordan Garnent Factory
Equity
method 7,240,625.00 238,819.01 964,306.19 1,203,125.20
35.00% 35.00%
---
--- --- ---
Hengshun （ Saipan ） Industry
Co., Ltd.
Equity
method 8,228,350.00 --- --- ---
35.00% 35.00%
---
--- --- ---
Shenzhen Jiafeng Textile Co., ltd.
Cost
method 16,800,000.00 16,800,000.00 --- 16,800,000.00
10.80% 10.80% ---
16,800,000.00 --- ---
Shenzhen Guanhua Prnting
& dyeing Co., Ltd.
Cost
method 5,491,288.71 5,491,288.71 --- 5,491,288.71
45.00% 45.00% ---
5,058,307.01 --- ---
Shenzhen Union Cost 2,600,000.00 2,600,000.00 --- 2,600,000.00 2.87% 2.87% --- --- --- ---54
Name
Accountin
g method
Initial investment
cost
Original balance change
Ending
Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explaination of
diffirence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue
Current
devalue
Cash
bonus
Development Group Co.,
Ltd.
method
Shenzhen Xiangjiang
Leather Produce Co., Ltd
Cost
method 160,000.00 160,000.00 --- 160,000.00
20.00% 20.00% ---
--- --- 67,808.93
Shenzhen Xinfang Knitting
Co., Ltd.
Cost
method 524,000.00 524,000.00 --- 524,000.00
20.00% 20.00% ---
--- --- ---
Hongkong Yehui
International Co., Ltd.
Cost
method 2,392,914.37 2,392,914.37 --- 2,392,914.28
17.85% 17.85% ---
--- --- ---
Shenzhen Dailisi Knitting
Co., Ltd.
Cost
method 532,062.50 2,559,856.26 --- 2,559,856.26
30.00% ---
Operate and
contracted by the
third party --- --- 880,000
Anhu Huapeng Textile Co.,
Ltd.
Cost
method 25,000,000.00 25,410,209.50 --- 25,410,209.50
50.00% ---
Operate and
contracted by the
third party --- --- ---
Shenzhen South Textile Co., Ltd.
Cost
method 1,500,000.00 1,500,000.00 --- 1,500,000.00 9.80% 9.80%
---
--- --- ---
Shenzhen Tongyi Silk Floss Co., Ltd.
Cost
method 1,800,000.00 1,800,000.00 --- 1,800,000.00 18.00% 18.00%
---
--- --- 492,594.37
Shenzhen Zhongxing Fibre
Folds Cotton Clothing
Ornament Co., Ltd.
Cost
method 1,460,000.00 1,460,000.00 ---- 1,460,000.00 100.00% ---
The company
is being
liquidatin 1,460,000.00 --- ---55
Name
Accountin
g method
Initial investment
cost
Original balance change
Ending
Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explaination of
diffirence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue
Current
devalue
Cash
bonus
g
Total -- 94,655,008.48 84,335,315.37 -420,922.98 83,914,392.39 --- --- 38,416,643.50 --- 2,840,403.30
Notes ：（1）During the reporting period, the company is not limited to transfer funds to the Investment Company limited circumstances.
（2）The company has no long-term equity investment of limited sales condtion in the end.56
10.Investment real estate
（1）Measured by the cost of investment in real estate
Unit：RMB
Items Book amount at
year begining
Increase at this
period
Decrease at this
period
Book balance in
year -end
1. Total original price 217,371,172.20 --- --- 217,371,172.20
1.House, Building 217,371,172.20 --- --- 217,371,172.20
2.Land use right --- --- --- ---
II.Total accumulated depreciation
accumulated amortization
82,946,770.46
2,900,585.02 ---
85,847,355.48
1.House, Building 82,946,770.46 2,900,585.02 --- 85,847,355.48
2.Land use right --- --- --- ---
III. Total book value of investment
real estate
134,424,401.74
--- ---
131,523,816.72
1.House, Building 134,424,401.74 --- --- 131,523,816.72
2.Land use right --- --- --- ---
IV. Total of accumulated provision for
devaluation of investment real estate. --- --- --- ---
1.House, Building --- --- --- ---
2.Land use right --- --- --- ---
V. Total book value of investment real
estate
134,424,401.74
--- ---
131,523,816.72
1.House, Building 134,424,401.74 --- --- 131,523,816.72
2.Land use right --- --- --- ---
Current amount of depreciation and amortization is RMB 2,900,585.02 .
Current investment Property devalue plan amount is RMB 0.00.
The company has no fair value measurement of investment real estate.
11. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at year
begining
Increase at this period Decrease at this period Book balance in year
-end
I. Total original price 311,296,317.52 2,104,780.08 --- 313,401,097.60
Including: House , Building 150,661,197.41 97,227.00 --- 150,758,424.41
Machinery equipment 145,334,261.89 74,950.03 --- 145,409,211.92
Transportations 3,185,723.00 1,290,532.00 --- 4,476,255.00
Electronic and Other 12,115,135.22 642,071.05 --- 12,757,206.27
II. Total of accumulative
depreciation 90,691,887.42
8,288,258.29 ---
98,808,985.83
Including: House , Building 29,812,516.34 2,554,944.75 --- 32,367,461.09
Machinery equipment 53,048,269.71 4,822,259.94 --- 57,870,529.65
Transportations 1,486,511.41 135,476.50 --- 1,621,987.91
Electronic and Other 6,344,589.96 604,417.22 --- 6,949,007.18
III. Total book value of
Fixed assets 220,604,430.10
--- ---
214,592,111.7757
Items Book amount at year
begining
Increase at this period Decrease at this period Book balance in year
-end
Including: House , Building 120,848,681.07 --- --- 118,390,963.32
Machinery equipment 92,285,992.18 --- --- 87,538,682.27
Transportations 1,699,211.59 --- --- 2,854,267.09
Electronic and Other 5,770,545.26 --- --- 5,808,199.09
IV. Total of Devalued
Provision 468,762.62
--- ---
468,762.62
Including: House , Building --- --- --- ---
Machinery equipment --- --- --- ---
Transportations 468,762.62 --- --- 468,762.62
Electronic and Other --- --- --- ---
V. Total book value of
Fixed assets 220,135,667.48
--- ---
214,123,349.15
Including: House , Building 120,848,681.07 --- --- 118,390,963.32
Machinery equipment 92,285,992.18 --- --- 87,538,682.27
Transportations 1,230,448.97 --- --- 2,385,504.47
Electronic and Other 5,770,545.26 --- --- 5,808,199.09
(2) Current depreciation is RMB 8,288,258.29 .
(3) The issue of fixed assets transferred from construction in progress original price is RMB 79,900.00.
(4）As of June 30,2010，The company has no temporary situation of idle fixed assets.
（5）As of June 30,2010，The company has no lease by financing the fixed assets of the situation.
（6）As of June 30,2010，The fixed assets leased through operating leases.
12.Project under construction
（1）Project under construction
Unit：RMB
Items
Year-end balance Year-beginning balance
Book balance Provisi
on for
devalua
tion
Book Net value Book balance Provision
for
devaluati
on
Book Net value
TFT-LCD polarizing film I project 100,006,322.45 --- 100,006,322.45 1,355,179.75 --- 1,355,179.75
Equipment of old factory. 128,250.00 --- 128,250.00 128,250.00 --- 128,250.00
Other 23,020.00 --- 23,020.00 102,920.00 --- 102,920.00
Total 100,157,592.45 --- 100,157,592.45 1,586,349.75 --- 1,586,349.7558
（2）Significant changes in projects of construction-in-progress
Unit：RMB
Name Budget
Amount at
year begining
Increase at
this period
Transferred to
fixed assets
Other reduction
Project
investment
proportion of
the budget
Project
progress
Accumulated
amount of
interest
capitalized
Thereinto:
amount of
Current
Interest
capitalized
Current
Interest
capitalization
rate
Capital source
Amount at year
end
TFT-LCD polarizing film I
project
849.37
million 1,355,179.75-- 98,651,142.70 --- -- --- --- 2,091,865.00 1,800,535.00 5.1%
Self-
Financing 100,006,322.45
Total
--- 1,355,179.75-- 98,651,142.70 --- -- --- --- 2,091,865.00 1,800,535.00 5.1%
Self-
Financing 100,006,322.45
Self-
Financing
(3) Devalue plan of Construction in progress
UUnit：RMB
Items Amount at year begining Increase at this period Decrease at this period Amount at year end Cause
No --- --- --- --- ---
Total --- --- --- --- --
(4) Major projects under construction
Items Project progress Notes
TFT-LCD polarizing film I project Preliminary work ---59
13. Intangible assets
（1）Intangible assets
Unit：RMB
Items Book Balance in
year-begin
Increase at this
period
Decrease at this
period
Book Balance in
year-end
1. Total original
price 59,286,347.50 --- 43,466,100.00 15,820,247.50
Land Use right 47,461,147.50 --- 43,466,100.00 3,995,047.50
Proprietary technology 11,825,200.00 --- --- 11,825,200.00
II. Total amount of
accumulated 9,724,934.78 589,167.64 --- 10,314,102.42
Land Use right 1,841,734.78 194,967.64 --- 2,036,702.42
Proprietary technology 7,883,200.00 394,200.00 --- 8,277,400.00
IV. Book value of
intangible assets
49,561,412.72 ---
---
5,506,145.08
Land Use right 45,619,412.72 --- --- 1,958,345.08
Proprietary technology 3,942,000.00 --- --- 3,547,800.00
IV.Total value of
provision for
impairment --- --- --- ---
Land Use right --- --- --- ---
Proprietary technology --- --- --- ---
V. Total Book value of
intangible assets 49,561,412.72 --- ---
5,506,145.08
Land Use right 45,619,412.72 --- --- 1,958,345.08
Proprietary technology 3,942,000.00 --- --- 3,547,800.00
(2) The amortization amount is RMB 589,167.64 .
(3) The intangible assets Note:The reduced specific technology of the company for this reporting period was
the land purchased for the TFT-LCD project in last period, which entered the infrastructure construction and thus,
was transferred to construction in process.
（4）The current expenditure on non-development projects
14.Goodwill
Unit：RMB
Name of the investee or the
matter of forming Goodwill
Balance in
year-begin
Increase at
this period
Decrease at
this period
Book
Balance in
year-end
Ending
devalue
provision
Shenzhen Beauty Century Garment
Co., Ltd. 2,167,431.21 --- --- 2,167,431.21 2,167,431.21
Shenzhen Shenfang Import and
Export Co., Ltd. 82,156.61 --- --- 82,156.61 82,156.61
Shenzhen ShengBo Ophotoelectric
Technology Co., Ltd 9,614,758.55 --- --- 9,614,758.55 ---60
Total 11,864,346.
37 --- ---
11,864,346.
37
2,249,587.8
2
（ 1 ） Description of the impairment of business reputation impairment testing methods and provisioning
methods: goodwill related to the asset group or a combination of asset group signs of impairment exists, according
to the following steps to deal with: first, do not include business reputation asset group or a Group portfolio of
assets impairment testing, calculate recoverable amount, and with the relevant book value compared to the
corresponding recognized devalue losses; and then again with the goodwill asset group or a group of portfolio
asset impairment testing, compare the related assets group or groups of assets portfolio book value (including the
share of the book value of business reputation in part) to its recoverable amount.
15. Long-term amortization expenses
Unit ：RMB
Items
Balance in
year-begin
Increase at this
period
Amount of
amortization at
current period
Other
Decrease
Balance in
year end
Other
Renovation costs 586,980.59 --- 134,781.95 --- 452,198.64 ---
Total 586,980.59 --- 134,781.95 --- 452,198.64 ---
16. Deferred income tax assets/Deferred income tax liabilities
(1）Recognized deferred income tax assets and deferred income tax liabilities
Unit：RMB
Items Year-end balance Year-beginning balance
Deferred income tax assets
Assets depreciation reserves 6,741,656.04 6,173,805.16
Deferred income --- ---
Prior year deficiency --- ---
Unattained internal sales profits --- ---
Total 6,741,656.04 6,173,805.16
Deferred income tax liability
Increase and decrease of fair value of
available-for-sale financial assets
11,895,656.77 18,430,490.19
Total 11,895,656.77 18,430,490.19
（2）There is no deductible loss of unrecognized deferred income tax assets at the end of the reporting period
which will be expired in the following year.
（3）The temporary differences in corresponding of the assets or liabilities causing temporary differences.
Unit：RMB
Items Amount of temporary differences
Provision for bad debts 22,178,081.47
Provision for devaluationof fexed assets 468,762.62
Provision for falling price of inventory 4,847,194.65
Disposable financial asset 52,342,678.40
Total 70,142,327.84
17. Impairment of assets
Unit：RMB61
Items
Book balance
Year-beginning
Increase at
this period
Decrease at this period
Book balance
Year-end
Withdrawal
aount in
this
Transfer in Transfer-out
I.Provision for bad
debts 18,450,177.29 1,503,065.79 93,732.13 --- --- 19,859,510.95
II. Provision for
falling price of
inventory 4,728,676.73 118,517.92 --- --- --- 4,847,194.65
III. Provision for
devaluationof
fexed assets 468,762.62 --- --- --- -- 468,762.62
IV. Provision for
devaluation of
Long-term equity
investment 39,868,297.34 --- --- --- --- 39,868,297.34
V. Goodwill 2,249,587.82 --- --- --- --- 2,249,587.82
Total 65,765,501.80 1,621,583.71 93,732.13 --- --- 67,293,353.38
18. Short-term borrowings
（1）Short-term borrowings
Unit：RMB
Items
Currency
Year-end balance Year-beginning balance
Amount of
original currency
Transferred to
RMB
Amount of
original currency
Transferred to
RMB
Mortgage loan RMB 95,000,000.00 95,000,000.00 100,000,000.00 100,000,000.00
Discount loan RMB --- --- 1,234,495.00 1,234,495.00
Credit Loan RMB 60,000,000.00 60,000,000.00
Total --- 155,000,000.00 --- 101,234,495.00
（1）Description of short-term loans classifications: The short-term loans are classified by loans.
（2）The credit loan was borrowed from the major shareholder for the prophase work of TFT-LCD project.
（3）There are no expired outstanding short-term borrowings at the end of the reporting period.
19. Account payable
（1）Accounts payable by item class. Unit：RMB
Items Year-end balance Year-beginning balance
Within 1 year 35,263,104.00 50,297,253.22
1-2 years 6,480,145.35 464,372.56
2-3 years 363,055.98 29,408.43
3-4 years 946,981.37 946,981.37
4-5 years - -
Over 5 years 230,304.64 230,304.64
Total 43,283,591.34 51,968,320.22
（2）As of June 30,2010 In the balance of accounts payable, there were no payables to shareholders holding
5% (including 5%) or more of the voting right of the Company;
The description of large-sum accounts payable with the age over 1 year:62
Accouts payable with the age more than 1 year is mainly the unsettled sporadic balance with suppliers, so
there is no large-sum accounts payable. The increase of ending accounts payable is mainly the change of the
current scope of consolidation, which is caused by the consolidation of Shenzhen ShengBo Ophotoelectric
Technology Co., Ltd.
20. Received in advance
Unit: RMB
Items Year-end balance Year-beginning balance
Within 1 year 30,827,000.72 26,409,051.48
1-2 years 19,920.80 901,408.48
2-3 years 355,854.10 13,843.98
3-4 years --- ---
4-5 years 158,725.23 158,725.23
Total 31,361,500.85 27,483,029.17
（2）As of June 30, 2010，In the balance of funds received in advance, there were no funds of shareholders
holding 5% (including 5%) or more of the voting right of the Company;
（3）The description of large-sum accounts payable with the age over 1 year:
The receipts in advance with the age more than 1 year in the company’s advance receipts is the unsettled
sporadic balance with the clients, so there is no large-sum advance receipts.
21. Employee salary of payable
Unit :RMB
Items Book Balance
in year-begin
Increase in the
current period
Decrease in the
current period
Book Balance
in year-end
1.Wages, bonuses, allowances and
subsidies 12,468,433.28 19,744,293.58 21,435,983.05 10,771,743.971
2.Employee welfare --- 1,452,761.47 1,408,168.19 44,593.28
3. ocial insurance premiums 1,183.33 2,003,295.04 1,989,624.63 14,853.74
Of Which: medical insurance 409.78 365,991.77 365,991.77 409.78
Basic old-age insurance premiums 693.46 1,316,847.50 1,317,247.50 293.46
Pension Payment --- 281,082.76 267,012.35 14,070.41
Unemployment insurance 17.05 24,529.10 24,529.10 17.05
Work injury insurance 31.52 25,181.09 25,181.09 31.52
Maternity insurance 31.52 48,084.03 48,084.03 31.52
IV. Public reserves for housing --- 620,847.64 620,847.64 ---
V. Union funds and staff education
fee 684,811.29 439,572.72 386,238.03 738,145.98
VI. Non-monetary welfare --- 4,755.24 4,755.24 ---
VII. Compensation for cancellation
of labor relations 225,012.00 --- 34,000.00 191,012.00
VIII. Other --- 8,640.00 8,640.00 ---
Of which: equity payment by cash
settlement --- --- --- ---
Total 13,379,439.90 24,274,165.69 25,893,256.62 11,760,348.9763
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 RMB 738,145.98, the amounts of
non-monetary benefits are RMB 0.00, and the compensations for the lifting of labor relations are RMB 0.00 .
The expected release time and amount of staff salary and welfare payable are arranged in the beginning of
next year.
22. Tax Payable
Unit：RMB
Items Year-end balance Year-beginning balance
VAT -531,362.00 722,960.87
Consumption tax --- ---
Business Tax 433,776.57 436,532.80
City Construction tax 8,162.23 6,886.02
Enterprise Income tax 3,570,808.28 3,013,184.28
Individual Income tax 537,409.96 359,862.63
House property Tax 36,648.66 43,456.85
Surcharge for education 1,015.63 17,995.80
Other --- 18,060.16
Total 4,056,459.33 4,618,939.41
Taxes payable description:
The subsidiary and branch of the company have no taxable income transfers of each other.
23. Interest Payable
Unit：RMB
Items Year-end balance Year-beginning balance
Long-term loans interest of installment
and interest charge
468,013.20 93,488.75
Total 468,013.20 93,488.75
24.Dividend Payable
Unit ：RMB
Name Year-end balance Year-beginning balance Reason of non-payment
exceeding 1 year
--- --- --- ---
Total --- 5,000,000.0064
25.Other Payable
（1）Other payables by item class Unit：RMB
Age Year-end balance Year-beginning balance
Within 1 year 4,881,307.68 4,704,549.91
1-2 years 7,667,371.23 8,296,619.69
2-3 years 3,343,052.87 3,367,610.33
3-4 years 10,333,225.73 12,597,890.68
4-5 years 16,787,025.45 18,187,025.45
Over 5 years 198,638.10 135,518.10
Total 43,210,621.06 47,289,214.16
（2）In the balance of funds received in advance, there were no funds of shareholders holding 5% (including
5%) or more of the voting right of the Company, described in Notes VII,6.
（3）There are no large-sum other payables with the age ove 1 year in ending other payables.
（4）Large-sum other payables in ending other payables are mainly rental deposit.
26.Long-term Loan
（1）Long-term loans classifications
Unit：RMB
Items Currency
Year-end balance Year-beginning balance
Amount of original
currency
Equivalent to RMB Amount of original
currency
Equivalent to RMB
Mortgage loan RMB 23,000,000.00 23,000,000.00 25,000,000.00 25,000,000.00
Credit Loan RMB 1,553,666.24 1,553,666.24
Total 24,553,666.24 24,553,666.24 25,000,000.00 25,000,000.00
As regards long-term loans classifications: Long-term loans are classified by loans.
（2）The top five of long-term loans
Unit：RMB
Loan unit
Loans
starting date
Loans
ending date
Curren
cy
Interest
rate (%)
Year-end balance Year-beginning balance
Amount of
original
currency
Amount of
RMB
Amount of
Foreign
currency
Amount of
RMB65
Shenzhen Ping An
Bank Co., Ltd. Sales
Department
2008-11-20 2011-11-20 RMB 7.722% 23,000,000.00 23,000,000.00 25,000,000.00 25,000,000.00
Shenzhen
Century Science
& Technology
Co., Ltd.
2010-06-24 2015-06-24 RMB 3.76% 1,553,666.24 1,553,666.24 --- ---
Total -- -- 24,553,666.24 24,553,666.24 25,000,000.00 25,000,000.00
There are no long-term loans formed by renewal of overdue loans at the end of period.
27.Special payable
Unit ：RMB
Name
Year-beginning
balance
Increasein the
current period
Decrease in the
current period
Year-end balance Notes
--- --- --- --- --- ---
Total --- --- --- --- ---
28.Other Non-current liabilities
Unit ：RMB
Items Book balance year-end Book balance Year-beginning
Deferred profits 17,252,575.70 19,819,142.86
Total 17,252,575.70 19,819,142.86
Notes of other non-current liabilities
（1）According to the "Notice on National Development and Reform Commission to the General Office of
the textile project management of the special funds" (Faigaiban [2006]2841), on December 22, 2006, the
Company received "Textile special" funds RMB 2,000,000.00 from Shenzhen Finance Bureau.
The amortization in accordance with the corresponding equipment, the ending balance of uncompleted
amortization is RMB 1,857,142.86 .
(2) According to the document of Shenzhen Municipal Development and Reform Commission 【2009】No.
416 that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet
Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and
Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform
Projects”, on May 26, 2009, the company received the Shenzhen Municipal Development and Reform
Commission high-tech industrialization demonstration project supporting Capital RMB 2 million yuan allocated
by Shenzhen City Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece
for TFT-LCD”.
(3) According to the document of the Office of the State Development and Reform Commission on "The
Office of the State Development and Reform Commission on the Reply of New Flat-Panel Display
Industrialization Special Project” (Development and Reform Office High-Tech【2008】No. 2104), the company
obtained the state subsidies RMB 10 million yuan from the State Development and Reform Commission New
Flat-Panel Display Industrialization Special Project for the construction of “The Project of Polaripiece66
Industrialization for TFT-LCD”. On June 29, 2009, the company received the special subsidies of State
Development and Reform Commission RMB 5 million yuan allocated by Shenzhen City Bureau of Finance. On
December 25, 2009, the company received the special subsidies of State Development and Reform Commission
RMB 3.5 million yuan allocated by Shenzhen City Bureau of Finance. On April 23, 2010, the company received
the special subsidies of State Development and Reform Commission RMB 1.5 million yuan allocated by
Shenzhen City Bureau of Finance. Pursuant to the amortization of the relevant equipment, the unamortized
balance was RMB9,400,000 at the end of the period.
（ 4） According to the document of Shenzhen Science and Information 【2009】No. 202 and Shenzhen
Municipal Science and Technology Plan Project Contract, The company obtained the special subsidies RMB 0.8
million yuan from Shenzhen Bureau of Science Technology & Information for the project of “The Research and
Development of A New Production Process of Dye Type Polaripiece”. On February 11, 2010,Focus on subsidies
received RMB 0.8 million .
(5) According to the document of Finance and Education [2006] No. 163, "The Notice on the Special Funds
Management Method of National High-technology R&D Program of China (863 Program) Issued by the Ministry
of Finance, Science and Technology Department and General Armament Department”, China Lucky Film Group
Corporation, the former shareholders of the subsidiary Shenzhen Sheng Bo Photoelectric Technology Co., Ltd.
obtained the special governmental subsidies RMB 9.1 million yuan for the project of “The Development of
Polaripiece Engineering Technolog for TFT-LCD”. China Lucky Film Group Corporation was the specific
construction unit of the project of Shenzhen Sheng Bo Photoelectric Technology Co., Ltd. so China Lucky Film
Group Corporation allocated RMB 8.67 million yuan of special governmental subsidies to the company after
deducting relevant expenses. As of December 31, 2009, China Lucky Film Group Corporation has received the
subsidies RMB 5.67 million yuan, and allocated to the company on December 22, 2009, the rest RMB 3 million
yuan will be allocated to the Company by China Lucky Film Group Corporation after issued by Ministry of
Science and Technology. Subject to the usage of the project research and development fund, the carryforward of
the special fund allowance for the reporting period was RMB4,216,967.15.
(6) On December 23, 2009, the Company received a loan discount RMB 992,000.00 yuan allocated by
Shenzhen Bureau of Finance for phase-2 alteration project. Pursuant to the amortization of the relevant equipment,
the unamortized balance was RMB942,399.99 at the end of the period.
29.Stock capital
Unit：RMB
Balance
Year-beginning
Increase/decrease this time (+ , - )
Issuing of Balance year-end
new share
Bonus
shares
Transferred
from
reserves
Other Subtotal
Total of
capital
shares
245,124,000.00 --- --- --- --- --- 245,124,000.00
30. Capital reserves
Unit：RMB67
Items Year-beginning
balance
Increasein the
current period
Decrease in the
current period
Year-end balance
Share premium 45,286,259.45 --- --- 45,286,259.45
Other 73,895,048.20 --- 23,136,556.04 50,758,492.16
Total 119,181,307.65 --- 23,136,556.04 96,044,751.61
As regards capital reserve:
As regards the decreasing of other capital reserve, is the company to sell the holding of circulation stock of
Shenzhen Victor Onward Textile Industrial Co., Ltd. in secondary market at current period, and is calculated as
the capital reserve in accordance with the change of fair value to fully transfer, And due to the decline in the price
of the ST SZ Zhongguan stocks, the fair value fluctuated, which led to a decrease in gains.
31. Surplus reserve
Unit：RMB
Items Year-beginning
balance
Increasein the current
period
Decrease in the
current period
Year-end balance
Statutory surplus
reserve 31,832,178.67
--- ---
31,832,178.67
Total 31,832,178.67 --- --- 31,832,178.67
32. Retained profits
Unit：RMB
Intes Amount Extraction or distribution of the
proportion
Before adjustrments: Retained profits at the period
end
97,108,810.95 --
Adjustments:Total retained profits at the period
beginning
（+，-）
--- --
After adjustments:Retained profits at the period
beginning
97,108,810.95 --
Add：Net profit belonging to the owner of the parent
company
24,858,502.70 --
Less：Drawing statutory surplus reserve --- ---
Drawing discretionary surplus reserve --- ---
Drawing commonly risk provisions --- ---
Payable dividends of common shares ---- ---
Transfer to common stock equity dividends --- ---
Retained profits at the period end 121,967,313.65 ---
As regards the details of adjusted the beginning undistributed profits68
(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 .
33.Business income, Business cost
（1）Business income
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 320,584,739.41 183,312,416.29
Other Business income 1,784,397.33 1,686,680.53
Total 322,369,136.74 184,999,096.82
Cost from Business cost 266,590,184.95 151,842,900.00
Other Business cost 1,743,091.46 1,686,680.50
Total 268,333,276.41 153,529,580.50
（2）Main business（Industry）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Domestic and foreign
trade
156,603,026.79 155,998,551.52
130,261,616.26 129,051,741.39
Manufacturing 129,343,423.14 107,486,669.30 21,936,326.11 19,529,112.50
Property management,
leasing
34,638,289.48 3,104,964.13
31,114,473.92 3,262,046.11
Total 320,584,739.41 266,590,184.95 183,312,416.29 151,842,900.00
（3）Main business（Production）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost69
Property and rental
income
34,638,289.48 3,104,964.13
31,114,473.92 3,262,046.11
Textile income 23,277,796.52 20,397,678.91 21,936,326.11 19,529,112.50
Polarizer income 106,065,626.62 87,088,990.39 --- ---
Trade income 156,603,026.79 155,998,551.52 130,261,616.26 129,051,741.39
Total 320,584,739.41 266,590,184.95 183,312,416.29 151,842,900.00
（4）Main Business（Area）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Domestic 108,231,632.25 64,760,022.06 53,050,800.03 22,791,158.61
Oversea 212,353,107.16 201,830,162.89 130,261,616.26 129,051,741.39
Total 320,584,739.41 266,590,184.95 183,312,416.29 151,842,900.00
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Link Target Industrial (HK) Ltd. 124,025,601.33 38.48%
HIREPU International 26,720,120.01 8.29%
Jinsitai Investment Development Co., Ltd. 11,257,735.86 3.49%
Baolai Company 9,537,884.17 2.96%
Jiangmen Yidu Company 7,521,923.32 2.33%
Total 179,063,264.69 55.55%
Notes of business income
The Company has brought Shenzhen Sheng Bo Photoelectric Technology Co., Ltd. into the scope of
consolidation since the completion of the acquisition date, resulting in a larger increasing of current revenue than
previous period.
34.Business taxes and surcharges
Unit：RMB70
Items
Amount of current period Amount of previous
period
Project payment standard
Business tax 1,872,651.05 1,765,899.13 Notes 3(1)
Excise --- --- Notes 3(1)
City construction tax 60,008.45 12,343.36 Notes 3(1)
Education surcharge 188,623.36 48,783.19 Notes 3(1)
Locality Education surcharge --- --- Notes 3(1)
Embankment fee 18,818.49 980.42 Notes 3(1)
Total 2,140,101.35 1,828,006.10
35. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current
period
Amount of previous
period
Long term equity investment calculated via equity method 979,077.02 1,151,332.85
Investment income from financial assets sales 9,009,386.30 14,661,991.57
Deal income from futures investment --- ---
Calculate income according to cost method 1,895,403.30 1,970,702.67
Stock right disposal benefit 11,883,866.62 17,784,027.09
Totla
（2）Long term equity investment calculated via equity method：
Unit：RMB
Name Amount of current
period
Amount of previous
period
Cbange cause
Shenzhen Trademark Factory
Co. Ltd 197,933.49
253,009.36 ---
Shenzhen Xieli Automobile
Co., Ltd. -197,985.46
75,810.04 ---
Shenzhen Changlianfa Printing and
dyeing Company 14,822.80
3,036.32 ---
Jordan Garment Factory 964,306.19 -5,547.40 Notes 171
Hengshun（Saipan）Industry Co., Ltd. --- --- ---
Shenzhen Shengbo
Ophotoelectric Technology Co.,
Ltd ---
825,024.53 Notes 2
Total 979,077.02 1,151,332.85
Notes 1. Jordan Garment Factory with the economic recovery of peripheral area, its profit grows better.
Notes 2. Though the company did not consummated the acquisition of the shares of Shengbo Optoelectronic .
during the same period of last year, it was accounted for by the equity method when the financial statements of
that period being consolidated.
（3）In the report period, the company has no big restriction on the investment earning repatriation.
36.Loss of assets impairment
Unit：RMB
Name Amount of current period Amount of previous period
I .Losses for bad debts 1,409,333.66 -968,054.25
II. Losses for falling price of inventory 118,517.92 ---
III. Losses for financial assets sales --- ---
IV. Losses for Long term equity
investment
---
---
V. Losses for devaluationof fexed assets --- ---
VI. Losses for devaluation of gooldwill --- ---
7. Other --- ---
Total 1,527,851.58 -968,054.25
37.Non-operating income
（1）Classification of items about unrelated business income
Unit：RMB
Items Amount of current period Amount of previous period
Total income from liquidation of
non-current assets
--- ---
Including ： Income from liquidation
of fixed asset
---
---
Income of the sale of intangible
assets
---
---
Government Subsidy 4,982,567.16 ---
Fines revenue --- ---
Other --- 853,452.70
Total 4,982,567.16 853,452.70
（2）Governmental subsidy list
Items Amount of current
period
Amount of previous
period
Notes
Special Fund for New Types of Flat
Panel Display 600,000.00
--- Notes (1)
Loan discount 49,600.01 Notes (2)72
Items Amount of current
period
Amount of previous
period
Notes
Special National Fund for New Hi-tech
Research and Development Program
(Program 863) 4,216,967.15
--- Notes (3)
Guangdong Trade Meeting support fund
of Futian Chamber of Commerce
116,000.00
Total 4,982,567.16 --- ---
（1）Pursuant to the “Reply to the 2008 Industrialization Project of New Types of Flat Panel Display” made
by the National Development and Reform Commission (File No. Fagaibangaoji[2008]2104 ), the company was
granted RMB10 million of the national subsidy for the industrialization project of new types of flat panel display
from the National Development and Reform Commission for its “TFT-LCD Polariod Industrialization” project;
the company received RMB5 million of the special subsidy of the National Development and Reform
Commission from the Finance Bureau of Shenzhen on June 29, 2009, RMB3.5 million on December 25, 2009
and RMB1.5 million on April 23, 2010. Pursuant to the amortization of the relevant equipment, the amortized
amount is RMB 600,000 for this period.
(2)The company received RMB992,000 loan interest discount from the Finance Bureau of Shenzhen for the
renovation of phase 2. Pursuant to the amortization of the relevant equipment, the amortized amount is
RMB49,600.01 for this period.
（3）Pursuant to File No. Caijiao[2006]163 the “Notice of Printing ‘Regulations on the Special Fund for the
National Hi-tech Research and Development Program (Program 863)’ Issued by the Ministry of Fiance, Ministry
of Science and Technology and the General Armament Department”, RMB 9.1 million of the special
governmental subsidy was granted to the task “TFT-LCD Polariod Engineering Technology Development” of
China Lucky Film Corporation, the previous shareholder of Shenzhen SAPO Photoelectric Technology Co., Ltd.
As China Lucky Film Corporation decided that Shengbo Optoelectronic undertake this task, it allocated
RMB8.463 million to the company on December 22, 2009 after deducting the relevant expenses from the granted
subsidy. The remaining RMB3 million will be paid to the company by China Lucky Film Corporation after it
receives the fund from the Ministry of Science and Technology. Subject to the utilization of the special fund,
RMB4,216,967.15 was recorded as the subsidy income for this reporting period.
38. Non-operating expenses
Unit：RMB
Items Amount of current period Amount of previous period
Total Disposal of loss of
non-current assets --- 27,660.94
Including：Disposal of net loss
of fixed assets --- 27,660.94
Disposal of loss of
Intangibles assets
--- ---
Donation expenses --- ---
Fine expenses 1,107.68 253.71
Other expenses --- ---
Total 1,107.68 27,914.65
39.Income tax expenses
Unit：RMB73
Items Amount of current period Amount of previous period
Income tax at current period according to
taxation and related regulation 5,599,270.19 4,418,762.85
Adjustment Deferred income tax 567,850.88 193,610.85
Total 6,167,121.07 4,612,373.70
40. Calculation process of basic earnings per share and dilute earning per share
（1）Calculating formula of income per share:
Basic earnings per share=P/（S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk）
Dilute earning per share=P1/(S0 ＋ S1 ＋ Si×Mi÷M0–Sj×Mj÷M0–Sk+ common stock weighted average of
subscription warrant, stock option, transferable bond)
（2）Calculating process of income per share
Basic earnings per share belonging to common stock shareholder in January–June 2010=24,858,502.70
/245,124,000.00=0.10RMB/shares
Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses in
January –June 2010=0.08 =13,945,642.99 /245,124,000.00=0.06 RMB/shares.
Dilute earning per share belonging to common stock shareholder in January –June 2010= 24,858,502.70
/245,124,000.00=0.10 RMB/share
Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses in
January –June 2010=13,945,642.99 /245,124,000.00=0.06 RMB/share
41. Other comprehensive income
Unit：RMB
Items Amount of current
period
Amount of previous
period
1.Loss amount produced by sellable financial assets -29,671,389.46 45,462,266.27
Less：Deduct: income tax infection produced by sellable financial assets -6,534,833.42 9,092,453.25
Net amount transferred into profit and loss at current period that reckoned
into other comprehensive income at former period --- ---
Subtotal -23,136,556.04 36,369,813.02
2. The enjoyed share in other comprehensive income of other invested unit
according to equity method
--- ---
Less：Deduct: income tax infection produced from the enjoyed share in
other comprehensive income of other invested unit according to equity
method
--- ---
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
--- ---
Subtotal --- ---
3.. Benefit (or loss) amount produced from cash flow
Less ： Deduct: income tax infection produced from cash flow hedging
instruments
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
Transferred to the adjustment of initial confirmation amount of items at
hedged period
Subtotal74
Items Amount of current
period
Amount of previous
period
4. Translating difference in foreign currency financial reports --- ---
Less：Deduct: net amount that transferred into profit and loss at current
period in disposed overseas business
--- ---
Subtotal --- ---
5..Other
Less ： taxation infection arising from reckoning other comprehensive
income.
---
---
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period
---
---
Subtotal --- ---
Total -23,136,556.04 36,369,813.02
Other comprehensive income shows:
（1）The asset for sale is circulation stock of Shenzhen Victor Onward Textile Industrial Co., Ltd. , and
book value is adjusted according to market value alteration.
42.Cash flow statement Notes
（1）Cash received related to other operating activities
Unit：RMB
Items Amount of current period Amount of previous period
Compensation fund --- 755,265.70
Summary of other scattered incomes 900,678.20 476,371.38
Total 900,678.20 1,231,637.08
（2）Cash paid related to other operating activities
Unit：RMB
Items Amount of current period Amount of previous period
Research & development expenses 5,686,023.03 ---
Office expenses 1,010,377.66 491,773.53
Business hospitality 1,066,720.00 760,166.70
Transportation expnses 476,268.00 447,365.44
Travel fee 468,186.35 314,826.70
Transporation expenses 641,048.45 211,954.82
Audit and consultation fee 773,850.00 495,200.00
Post and Communication fee 172,764.54 161,769.77
Insurance premium 259,020.75 143,827.00
Lawsuit fee 4,767.00 ---
Repair fee 431,733.00 481,899.00
Other 6,117,433.30 3,573,936.54
Total 17,088,192.08 7,082,719.50
（3）Cash received related to other investment activities
Unit：RMB
Items Amount of current period Amount of previous period
--- --- ---
Total --- ---
（4）Cash paid related to other investment activities75
Unit：RMB
Items Amount of current period Amount of previous period
--- ---
---
Total --- ---
（5）Cash received related to financing activities
Unit：RMB
Items Amount of current period Amount of previous period
Government subsidy 2,300,000.00 ---
Total 2,300,000.00 ---
（6）Cash paid related to financing activities
Unit：RMB
Items Amount of current period Amount of previous period
Return loan to shareholder --- 2,500,000.00
Travel costs and other non-public
offering 226,003.51
---
Total 226,003.51 2,500,000.00
43. 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
Net profit 24,858,502.70 22,611,368.55
Add: Impairment loss provision of assets 1,527,851.58 -968,054.25
Depreciation of fixed assets, oil and gas assets and consumable biological assets 11,075,406.34 6,490,290.22
Amortization of intangible assets 589,167.64 197,640.42
Amortization of Long-term deferred expenses 164,971.28 226,601.91
Loss on disposal of fixed assets, intangible assets and other long-term deferred
assets --- 27,660.94
Loss from Fixed assets Discard --- ---
Loss of fair value fluctuation on assets --- -
Financial cost 2,624,213.61 1,371,570.26
Loss on investment -11,883,866.62 -17,784,027.09
Decrease of deferred income tax assets -567,850.88 195,863.66
Increased of deferred income tax liabilities -6,534,833.42 9,092,453.25
Decrease of inventories -16,366,319.20 -3,538,628.20
Decease of operating receivables 15,226,615.80 9,341,468.70
Increased of operating Payable -21,544,508.02 -5,329,812.47
Other 3,245,599.04 -9,092,453.25
Net cash flows arising from operating activities 2,414,949.85 12,841,942.65
II. Significant investment and financing activities that without cash flows: - -
Liability transfer to capital - -
Convertible corporate bond due within 1 year - -
Finance leased fixed assets - -76
Supplement Information Amount of
current period
Amount of
previous period
III. Net increase of cash and cash equivalents - -
Ending balance of cash 108,234,510.63 73,244,176.33
Less: Beginning balance of cash 101,340,314.95 84,022,925.18
Add: Ending balance of cash - -
Less: Beginning balance of cash equivalents - -
Net increase of cash and cash equivalents 6,894,195.68 -10,778,748.85
（2）No related information on acquiring or disposing subsidiary company and other business unit at this
period.
（3）Cash and cash equivalents
Unit：RMB
Items Year-end balance Year-beginning balance
I. Cash 108,234,510.63 101,340,314.95
Of which: Cash in stock 260,461.87 353,519.45
Bank savings could be used at any time 99,875,882.46 95,619,079.84
Other monetary capital could be used at any time 8,098,166.30 5,367,715.66
Usable money in Central Bank --- ---
Money saved in associated financial bodies --- ---
Money from associated financial bodies --- ---
II. Cash equivalents --- ---
Of which: bond investment which will due in three
months
--- ---
III. Balance of cash and cash equivalents at the period
end 108,234,510.63 101,340,314.95
Notes ： Cash and cash equivalents without the use of parent or ubsidiary within the group of
restricted cash and cash equivalents.
VI. Accounting treatment of asset securitization
In the reporting period, the company has no asset securitization service.
VII.Related parties and related-party transactions
.77
1. Parent company information of the enterprise
Unit：RMB
Parent
company name
Related
parties Enterprise type Registration place Legal representative
Business
character
Registered
capital
Share ratio of parent
company against the
company(%)
Vote right ratio of
parent company
against the
company(%)
Ultimate
controlling party Organization
Shenzhen
Investment
Management
Co., Ltd.
Actual
controlling
person
State-owned
enterprise Shenzhen Chen Hongbo Investment
4600 million 59.14 59.14 State-owned
Assets
Supervision and
Administration
Commission of
Shenzhen
76756642-Parent company information of the company
he company is authorized and approved to be state-owned independent company by Shenzhen Government, and it
Executes financial contributor function on state-owned enterprise within authorization scope.
2. Subsidiary companies information of the enterprise
Unit ：RMB
Full name of subsidiary
company
Subsidiary
company type Enterprise type Registration area Legal representative Business character Registered capital Share holding
ratios(%)
Vote right
ratio (%)
Shenzhen Jinlan
Decorative Articles
Industrial Co., Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Zhang Hong Fabrics, bedding,clothing,textiles raw
materials processing manufacturing,
wholesale and retail.
4,000,000.00 100.00 100.00
Shenzhen Jinlan
Decorative Articles
Industrial Co., Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Zhang Hong Fabrics, bedding,clothing,textiles raw
materials processing manufacturing,
wholesale and retail.
2,360,000.00 100.00 100.0078
Shenzhen Lisi
Industrial Co., Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Zhu Jun Domestic commerce, materials supply
and sales
10,005,300.00 100.00 100.00
Shenzhen Huaqiang
Hotel
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Zhu Jun Accommodation, restaurants, business
center;
1,604,000.00 100.00 100.00
Shenfang Property
Management Co., Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Wang Bin
Property Management
25,000,000.00 100.00 100.00
Shenzhen Beauty
Century Garment Co.,
Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Wang Bin Production of fully electronic jacquard
knitting whole shape
1,680,000.00 75.00 ---
Zhenzhen Zhongxing
Fibre folds cotton
Clothing ornament
Co., Ltd.
Subsidiary
holding
company
Limited Liability
Company
Shenzhen Feng Junbin
Spewing acupuncture cloth, revision,
and fusible interlining fabric products
5,000,000.00 100.00 100.00
Shenzhen Shenfang
Import and export Co.,
Ltd.
wholly owned
subsidiary
Limited Liability
Company
Shenzhen Wang Bin
Operating import and export business
1,900,000.00 50.00 --
Shenzhen Tianlong
Industry and Trade
Co., Ltd.
Subsidiary
holding
company
Limited Liability
Company
Shenzhen Gao Gluoshi
Operating import and export business
78,000,000.00 100.00 100.00
Shenzhen Shengbo
Ophotoelectric
Technology Co., Ltd
wholly owned
subsidiary
Limited Liability
Company
Shenzhen
Zhu Jun
Production and sales of polarizer79
3. Joint-venture and affiliated enterprises information of the company
Unit：RMB
Invested unit name Enterprise
type
Registration
Place
Legal
representati
ve
Business
character
Registered
capital
Share
holding
ratio(%)
vote right
ratio(%)
Assets amount at
end of period
Liability amount at
end of period
Net assets
amount at end
of period
Business total
income at this
period
Net benefit at
this period
Affiliation
relation
Organization
code
I.Joint enterprise
Shenzhen Trademark
Co., Ltd.
Limited
Company
Shenzhen Feng
Junbin
Serivice
4.7million
50.00% 50.00% 5,944,166.62 350,345.22 5,593,821.40 916,316.00 395,866.98 Joint enterprise 61881295-9
Shenzhen Xieli
Automobile Co., Ltd
Limited
Company
Shenzhen Ye
Yongling
Manufacturin
g 3.12million 50.00% 50.00% 6,031,283.72 2,006,339.46 4,024,944.26 1,049,120.00 -253,866.69 Joint enterprise 618801838
II. Affiliated enterpris
Shenzhen
Changlianfa Printing
and dyeing Co., Ltd.
Limited
Company
Shenzhen
Zhu
Meizhu
Service
6.47million 40.25% 40.25% 5,200,600.99 1,019,398.36 4,181,202.63 210,600.00 36,826.83
Affiliated
enterpris 618865073
Jordan Garment Factory
Limited
Company
Jordan
Chen
Wenxian
Manufacturin
g
USD1
million 35.00% 35.00% USD2,030,974.74 USD1,524,715.45 USD506259.29 USD2,321,506.27 USD406,355.92
Affiliated
enterpris ---
Hengshun (Saipan) Industry
Co., Ltd.
Limited
Company
Saipan
---
Manufacturin
g
USD6.96mill
ion
35.00% 35.00%
--- --- --- --- --- ---- ---80
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the company
Shenzhen Xiangjiang Leather Produce Co., Ltd. Enterprises with share
Anhui Huapeng Textile Co., Ltd Enterprises with share
Sheenzhen Xinfang Kuitting Co., Ltd. Enterprises with share
Hongkong Yehui International Co., Ltd. Enterprises with share
5. Related Transactions
（1）In the report period，The company has no Related Transactions offering and receiving labor service on
purchasing and selling goods.
（2）In the report period，The company has no associated trusteeship.
（3）In the report period，The company has no associated contracting.
（4）In the report period，The company has no associated lease.
（5）In the report period，The company has no related lease.
（6）In the report period，The company has no fund borrowing of Related parties.
（7）In the report period, The Company Has no Related transference and liabilities recombination of related
parties
6. Account receivable and payable of related parties
Unit ：RMB
Name Related parties Year-end balance Year-beginning balance
Other account reveivable Shenzhen Tianlong Industry and Trade
Co., Ltd. 686,391.83 686,391.83
Other account reveivable Shenzhen Dailisi Knitting Co., Ltd. --- 880,000.00
Other account reveivable Jordan Garment Factory 183,906.56 183,906.56
Other account reveivable Shenzhen Xieli Automobile Co.,
Ltd 169,262.00 169,262.00
Other account reveivable Anhui Huapeng Textile Company 1,800,000.00 1,800,000.00
Other account reveivable Zhenzhen Zhongxing Fibre folds cotton
Clothing ornament Co., Ltd. 618,769.07 ---
Other account reveivable Shenzhen Xinfang Knitting Co.,
Ltd. 156,789.85 150,988.85
Other account reveivable Shenzhen Xiangjiang Leatter 350,000.00 523,000.0081
Name Related parties Year-end balance Year-beginning balance
Product Co., Ltd.
Other account reveivable Shenzhen Changlianfa Printing
and dyeing Co., Ltd. 477,996.07 325,000.00
Other account reveivable Shenzhen Hengsheng Investment
Co., Ltd. 1,380,300.67 1,404,038.46
Other account reveivable Shenzhen Trademark Co. Ltd. 2,853,868.07 4,253,868.07
Short-term loan Shenzhen Investment Holdings
Co., Ltd. 60,000,000.00 ---
VIII. Stock payment
1. General information of stock payment
Unit：RMB
Various equity instrument amount conferred at current period ---
Various equity instrument amount works at current period ---
Various equity instrument amount disable at current period ---
Price scope and left term of contract about stock option works issued at
end of the period
---
Price scope and left term of contract about other equity instrument
works issued at end of the period
---
2. Stock payment cleared by equity
Unit :RMB
Confirmation method of fair value of equity
instrument on conforming date
---
The best estimated confirming method of equity
instrument
---
The reason for big difference between estimation at ---82
current period and estimation at last period
Paid accumulated amount of stock settled on equity in
capital reserves
---
Amount of stock payment settled on equity ---
3. Stock payment cleared by cash
Unit ：RMB
Indebted fair value confirmation method confirmed with stock share or other equity
instrument as basis and undertook by company.
Accumulated liability amount produced by stock payment under cash settlement in
liability
---
Total costs confirmed by stock payment under cash settlement ---
4. Service paid via stock
Unit ：RMB
Employee services amount acquired via stock payment ---
Other services amount acquired via stock payment ---
5. In the report period，the company has no modification and termination of payment on stock.
IX. Subsequent events
1.As of June 30, 2010，The company has no liabilities formed from pending lawsuit and mediation.
2.As of June 30, 2010，The company has no liabilities formed from other units offering。
X. Commitment events
1. As of June 30, 2010，the company has no important commitment events.
2. As of June 30, 2010，the company has no commitment information guaranteed at the former period.
XI. Events Occurring after the balance sheet date83
1. Non-public Offer of Common Stocks in RMB
On July 23, 2010, the company consummated a non-public offer of stocks at a price of RMB 9.3 per share for
91,397,849 shares and raised RMB849,999,945.70. With deduction of all issuing expenses, RMB 21,231,992.66,
the actual net raised fund was RMB828,768,003.04, among which the increase of the registered capital was RMB
91,397,849.00 and the increase of the capital reserve was RMB737,370,154.04. The new shares were listed in
August 9, 2010(Refer to No. 2010-32 Announcement of the Company for details).
.
2. Profit distribution explanation after the balance sheet .
After decision by the board of directors of the Company, the Company is neither to distribute the net profit
for the first half of 2010 nor to capitalize any capital surplus.
XII. Other Important events
1. In the report period，the company has no non-monetary asset exchange service.
2. In the report period，the company has no liabilities recombination.。
3. In the report period，the company has no enterprise consolidation.
4. In the report period，the company has not large leasing.
5. As of June 30, 2010，the company has no financial instruments issued outside and can be transferred to
stock at end period.
6. As of June 30, 2010，Items related to measurement of fair value.
Unit：RMB
Item Amount
at the
beginning of
period
Gains
and losses
from change
of fair value
in current
period
Accumulative
change of fair
value accounted
for as rights and
interests
Provision
for impairment
made in current
period
Amount
at the end of
period
Financial assets
1. Financial assets
calculated
according to fair
value whose change
is accounted for as
profits or losses for
current period
--- --- --- --- ---
2.Derived financial
asset
--- --- --- --- ---
3.Trading financial
assets 97,228,693.20 --- -23,136,556.04 --- 66,188,811.00
Subtotal of
financial assets 97,228,693.20 --- -23,136,556.04 --- 66,188,811.00
Property investment --- --- --- --- ---
Production physical
assets
--- --- --- --- ---
Other --- --- --- --- ---
Total --- --- --- --- ---84
Finalcial Liabilities --- --- --- --- ---
7. Foreign financial assets and foreign financial liability
Unit：RMB
Item Amount at
the
beginning of
period
Gains and
losses from
change of
fair value in
current
period
Accumulative
change of fair
value accounted
for as rights and
interests
Provision for
impairment made
in current period
Amount at the
end of period
Financial assets
1. Financial assets
calculated according
to fair value whose
change is accounted
for as profits or
losses for current
period
--- --- --- --- ---
2. Derived financial
asset --- --- --- --- ---
3.Credit and account
receivable 5,037,692.13 --- --- 764,799.25 29,356,944.07
4. Trading financial
assets --- --- --- --- ---
5.Held to term
investment --- --- --- --- ---
Subtotal of financial
assets 5,037,692.13 --- --- 764,799.25 29,356,944.07
Finalcial Liabilities
--- --- --- --- ---
8. In the report period,, the company does not implement annuity plan。
XIII.Notes s of main items in financial reports of parent company
1.Other receivable
（1）Other receivable
Unit：RMB
Type
Year-end balance Year-beginning balance
Book balance
Provision for bad
debts
Book balance
Provision for bad
debts
Amount
Proporti
on（%）
Amount
Propo
rtion
（%）
Amount
Proport
ion
（%）
Amount
Proporti
on（%）
Receivables
with large
individual
amount.
148,287,766.42 98.10% 17,208,608.33 96.21% 82,492,481.17 98.11% 14,129,434.82 96.79%85
Receivables
without
large
individual
amount, but
with great
risk after
combined
according to
risk
characteristi
cs
261,115.26 0.04% 117,115.89 0.66% 126,798.01 0.15% 11,567.41 0.08%
Other minor
receivables 2,614,242.64 1.86% 560,651.59 3.13% 1,463,553.54 1.74% 457,669.00 3.14%
Total
151,163,124.32 100.00% 17,886,375.81 100.00% 84,082,832.72 100.00% 14,598,671.23 100.00%
Other Classification：
Combining with the company's assets and the structure of credit receivables, 1 million or more is the
standard to divide individual amount;
Separate amount is not large, but the combination risk after combined according to credit risk character is big,
these account receivable refers to those with ending balance being below 1 million RMB and account age is over
1 year.
（2）Separate amount is big at end of the period or not big but other account receivable and doubtful reserves
shall be withdrawn.
Unit：RMB
Other Account
receivable
Book balance
Provision for bad
debts
Allotment rate Reason
Above 1 million RMB 148,287,766.42 17,208,608.33 --- ---
Below 1 million RMB 311,486.35 311,486.35 --- ---
Total 148,599,252.77 17,520,094.68 -- --
（3）Separate amount is not large, the account receivable with big combination risk after combined via risk
character:
Unit ：RMB
Age
Year-end balance Year-beginning balance
Book balance Provision
for bad
debts
Book balance
Provision for
Amount bad debts
Proportion
（%）
Amount
Proportion
（%）86
Within 1 year --- --- --- --- --- ---
1-2 years --- --- --- 48,045.95 8.34% 4,804.60
2-3 years 67,208.70 25.74% 20,162.61 241,066.70 41.85% 72,320.01
3-4 years --- --- --- 286,848.19 49.80% 143,424.10
4-5 years 193,906.56 74.26% 96,953.28 --- --- ---
Over 5 years -- --- --- -- --- ---
Total 261,115.26 100.00% 117,115.89 575,960.84 100.00% 220,548.70
（4）Other account receivable information that cancelled after verification in the reporting period.
Unit：RMB
Unit name
Character of other
accounts receivable
Amount cancelled
after verification
Reason of
cancellation after
verification
Produced via affiliated
business or not
--- --- -- --- ---
Total -- --- -- --
（5）no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right and other related units.
（6）The front 5 units’ information of Other account receivable
Unit ：RMB
Unit name Relation with the
company
Amount Fixed year Percentage of account
receivable
Shenzhen Shengbo
Ophotoelectric Technology
Co., Ltd
Subsidiary
117,016,256.01
Within 1 year
77.41%
Jiangxi Xuanli String
Company
Non-Related
parties 14,389,044.60 1-2 years 9.52%
Shenzhen Shenfang Import
and Export Co., Ltd.
Subsidiary
12,168,680.72
Within 1 year
8.05%
Anhui Huapeng Textile
Company
Enterprises with
share 1,800,000.00
Within 1 year
1.19%
Shenzhen Nanshan auxiliary
projects
Non-Related
parties 1,608,624.19 2-3 years 1.06%
合计-- 146,982,605.52 97.23%
（7）. Account receivable information of other Related parties
Unit：RMB
Unit name Relation with the company Amount Proportion(%)
Anhui Huapeng Prnting & dyeing
Garnent Co., Ltd.
Enterprises with share
1,800,000.00 1.19%
Shenzhen Beauty Century Subsidiary 75,600.00 0.05%87
Garment Co., Ltd
Shenzhen Zhongxing Fibre folds cotton
Clothing Ornament Co., Ltd..
Not absorbed into
subsidiary company within
combination scope 618,769.07 0.41%
Shenzhen Shenfang Import and export Co., Ltd. Subsidiary 12,168,680.72 8.05%
Shenzhen Shengbo
Ophotoelectric Technology Co.,
Ltd
Subsidiary
117,016,256.01 77.41%
Shenzhen Tianlong Industry and
Trade Co., Ltd.
Not absorbed into
subsidiary company within
combination scope 686,391.83 0.45%
Jordan Garnent Factory Affiliated enterprise 183,906.56 0.12%
Shenzhen Xieli Automobile Co.,
Ltd. Joint venture 169,262.00 0.11%
Total 132,718,866.19 87.79%
（ 8 ） The transferring fund is RMB0.00 of other account receivable that is not accord with expiration
confirmation condition.
（9）In the report period, ， the company does not treat other account receivable as underlying assets to make
asset securitization.88
2..Long –term stocks equity investment
Unit：RMB
Name Accountin
g method
Initial investment
cost Original balance change Ending Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explanation of
diffidence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue Current
devalue
Cash
bonus
Shenzhen Jintian Industry Co.,
Ltd.
Cost
method
14,831,681.50
14,831,681.50 --- 14,831,681.50
4.00% 4.00%
---
14,831,681.50 --- ---
Shenzhen Trademark
Factory Co. Ltd
Equity
method 2,040,102.73 4,421,322.17 -1,202,066.51 3,219,255.66
50.00% 50.00%
---
--- --- 1,400,000.00
深圳协利汽车企业有限公司
Equity
method 1,529,483.67 2,477,112.59 -197,985.46 2,279,127.12
50.00% 50.00%
---
266,654.99 --- ---
Shenzhen Changlianfa Printing
and dyeing Company
Equity
method 2,524,500.00 1,668,111.26 14,822.80 1,682,934.06
40.25% 40.25%
---
--- --- ---
Jordan Garnent Factory
Equity
method 7,240,625.00 238,819.01 964,306.19 1,203,125.20
35.00% 35.00%
---
--- --- ---
Hengshun （ Saipan ） Industry
Co., Ltd.
Equity
method 8,228,350.00 --- --- ---
35.00% 35.00%
---
--- --- ---
Shenzhen Shengbo optoelectronic
Technology Co., Ltd.
Cost
method
40,500,000.00
118,500,000.00 --- 118,500,000.00 100.00% 100.00%
---
--- --- ---89
Name Accountin
g method
Initial investment
cost Original balance change Ending Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explanation of
diffidence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue Current
devalue
Cash
bonus
Shenzhen Jinlan Decorative
Articles Industrial Co., Ltd.
Cost
method 5,470,000.00 5,470,000.00 --- 5,470,000.00
90.00% 100.00% Notes 1
Shenzhen Lisi Industrial
Co., Ltd.
Cost
method 6,666,132.60 6,666,132.60 --- 6,666,132.60
90.68%
100.00%
Notes 1
--- --- ---
Shenzhen Beauty Centruty
Garment Co., Ltd.
Cost
method 30,867,400.00 30,867,400.00 --- 30,867,400.00
100.00% 100.00% ---
2,167,431.21 --- ---
Shenzhen Shenfang Import and
Export Co., Ltd.
Cost
method 6,299,700.00 6,299,700.00 --- 6,299,700.00
100.00%
100.00%
---
82,156.61 --- ---
Shenzhen Huaqiang Hotal
Cost
method 14,623,003.00 14,623,003.00 --- 14,623,003.00 95.00% 100.00%
Notes 1
--- --- ---
Shenfang Property Management
Co., Ltd.
Cost
method 1,600,400.00 1,600,400.00 --- 1,600,400.00 93.75% 100.00%
Notes 1
--- --- ---
Zhenzhen Zhongxing Fibre
folds cotton Clothing ornament
Co., Ltd.
Cost
method 1,260,000.00 1,260,000.00 --- 1,260,000.00 75.00% ---
The company
is being
liquidatin
g 1,260,000.00 --- ---90
Name Accountin
g method
Initial investment
cost Original balance change Ending Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explanation of
diffidence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue Current
devalue
Cash
bonus
Shenzhen Jiafeng Textile
Co., Ltd.
Cost
method 16,800,000.00 16,800,000.00 --- 16,800,000.00
10.80% 10.80% ---
16,800,000.00 --- ---
Shenzhen Guanhua Pruting
and dyeing Co., Ltd.
Cost
method 5,491,288.71 5,491,288.70 --- 5,491,288.70
45.00% 45.00% ---
5,058,307.01 --- ---
Shenzhen Changlianfa Printing
and dyeing Company
Cost
method 2,600,000.00 2,600,000.00 --- 2,600,000.00
2.87% 2.87% ---
--- --- ---
Shenzhen Xiangjiang
Leather Produce Co., Ltd
Cost
method 160,000.00 160,000.00 --- 160,000.00
20.00% 20.00% ---
--- --- 67,808.93
Shenzhen Xinfang Knitting
Co., Ltd.
Cost
method 524,000.00 524,000.00 --- 524,000.00
20.00% 20.00% ---
--- --- ---
Hongkong Yehui
International Co., Ltd.
Cost
method 2,392,914.37 2,392,914.37 --- 2,392,914.37
17.85% 17.85% ---
--- --- ---
Shenzhen Dailisi Knitting
Co., Ltd.
Cost
method 532,062.50 2,559,856.26 --- 2,559,856.26
30.00% ---
Operate and
contracted by the
third party --- --- 880,000.0091
Name Accountin
g method
Initial investment
cost Original balance change Ending Balance
Sharehold
ing
proportion
in the
investee
Voting
right
proportion
in the
investee
Explanation of
diffidence
between
shareholding
proportion and
voting right
proportion in
investee
Devalue Current
devalue
Cash
bonus
Anhu Huapeng Textile Co.,
Ltd.
Cost
method 25,000,000.00 25,410,209.50 --- 25,410,209.50
50.00% ---
Operate and
contracted by the
third party --- --- ---
Shenzhen Jingguang
Footwear Co., Ltd
Cost
method 5,040,000.00 --- --- --- -- ---
---
--- --- ---
Total -- 202,221,644.08 264,861,950.96 -420,922.98 264,441,027.98 40,466,231.32 --- 2,347,808.93
Note: share holding ratio is not accord with voting power ratio in amalgamated subsidiary company. That is interlocking shareholding style of every subsidiary company making parent company actual
share control being 100%.92
3. Business income, Business cost
（1）Business income
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 24,441,993.92 23,539,525.69
Other Business income 1,743,091.46 1,686,680.53
Total 26,185,085.38 25,226,206.22
Cost from Business cost 3,466,671.65 3,570,876.49
Other Business cost 1,743,091.46 1,686,680.50
Total 5,209,763.11 5,257,556.99
（2）Main business（Industry）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Rental 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
Total 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
（3）Main business（Production）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Rental income 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
Total 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
（4）Main Business（Area）
Unit：RMB
Name
Amount of current period Amount of previous period
Business income Business cost Business income Business cost
Shenzhen 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
Total 24,441,993.92 3,466,671.65 23,539,525.69 3,570,876.49
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Jinsitai Investment Development Co.,
Ltd.
11,257,735.86
42.99%
Jinbaosheng Jewelry Company 469,800.00 1.79%
China merchants Bank, Shenfang
Building Branch
455,516.58
1.74%
Shi Xin Kai Weight loss Center 428,899.80 1.64%
China Ping An Life , Shenzhen
Branch
349,800.00
1.34%
Total 12,961,752.24 49.50%
4. Investment income
（1）Income from investment93
Unit：RMB
Items Amount of current period Amount of previous period
Calculate income according to cost
method
1,402,808.94 1,508,871.72
Long term equity investment
calculated via equity method
979,077.01 1,151,332.85
Investment income from financial
assets sales
9,009,386.30 14,661,991.57
Total 11,391,272.25 17,322,196.14
（2）Long term equity investment calculated to cost method：
Name Amount of
current period
Amount of
previous period
Cbange cause
Shenzhen Xiangjiang
Leatter Product Co., Ltd. 67,808.94
53,871.72 --
Shenzhen Xinfang Knitting
Co., Ltd. ---
100,000.00 ---
Shenzhen Dailisi Knitting
Co., Ltd. 435,000.00
455,000.00 ---
Anhui Huapeng Prnting &
dyeing Garnent Co., Ltd. 900,000.00
900,000.00 ---
Total 1,402,808.94 1,508,871.72 --
（3）Long term equity investment calculated via equity method
Name Amount of
current period
Amount of
previous period
Cbange cause
Shenzhen Trademark Factory Co., Ltd. 197,933.49 253,009.36 ---
Shenzhen Xieli Automobile Co., Ltd. -197,985.46 75,810.04 ---
Shenzhen Changlianfa Printing and
dyeing Company 14,822.80
3,036.32 ---
Jordan Garment Factory 964,306.19 -5,547.40 Notes 1
Hengshun (Saipan) Industry Co., Ltd. --- --- ---
Shenzhen Shengbo optoelectronic
Technology Co., Ltd. ---
825,024.53 Notes 2
Total 979,077.02 1,151,332.85
Notes 1. Jordan Garment Factory with the economic recovery of peripheral area, its profit
grows better.
Notes 2. Though the company did not consummated the acquisition of the shares of
Shengbo Optoelectronic . during the same period of last year, it was accounted for by the
equity method when the financial statements of that period being consolidated.
5. Supplement information for cash flow statement
Unit ：RMB94
Supplement information Amount of
current
period
Amount of
previous
period
I. Adjusting net profit to cash flow from operating activities
Net profit 11,977,705.09 23,417,390.94
Add : Impairment loss provision of assets 3,287,704.58 -968,054.25
Depreciation of fixed assets, oil and gas assets and consumablebiological
assets 4,432,535.13 4,005,011.37
Amortization of intanglble assets 194,967.64 162,464.70
Amortization of long-term deferred expenses --- ---
Loss on disposal of non-current assets --- -190.00
Loss from fixed assets discard --- ---
Loss of fair value fluctuation on assets --- ---
Financial cost 2,256,930.00 771,750.07
Loss on investment -11,391,272.25 -17,322,196.14
Decrease of deferred income tax assets -723,295.01 193,610.85
Increase of deferred income tax assets -6,534,833.42 9,092,453.25
Decrease of inventories --- ---
Decrease of operating receivable -63,498,183.51 -674,058.92
Increase of operating receivables -1,202,046.59 1,418,295.90
Other 6,534,833.42 -9,092,453.25
Net cash flows arising from operating activities -54,664,954.92 11,004,024.52
II. Significant investment and financing activities that withoutcash flows
Liability transfer to capital --- ---
Convertible corporate bond due within 1 year --- ---
Finance leased fixed assets --- ---
III. Net increase of cash and cash equivalents
Ending balance of cash 30,213,562.23 25,445,553.32
Less: Beginning balance of cash 19,539,632.30 35,807,908.88
Add: Ending balance of cash --- ---
Less: Beginning balance of cash equivalents --- ---
Net increase of cash and cash equivalents 10,673,929.93 -10,362,355.56
6. In the report period,，The company does not appear using evaluated value entering in an
account under reverse purchasing.
XIV.Supplement information
1. Details of extraordinary gains and losses for the current report period
Unit：RMB
Items
Amount of
current period
Amount of
previous
period
Notes
Gains from disposals of non-current assets --- -27,660.94 ---95
Items
Amount of
current period
Amount of
previous
period
Notes
Refunding and exemption of taxes in excess of authority or without
official approval documents
---
---
---
Government subsidies accounted into current income account (except for
those govemment subsidies closely related to the Company’s business,
and received at national statutory standard and amount)
4,982,567.16 --- ---
Capital adoption fee collected from non-financial organizations and
accounted into current gain /loss
---
---
---
Gain/loss from differences between the cost of enterprise merger and the
fair value of recognizable net asset of the invested entities
---
---
---
Gain/loss from non-nonetary assets --- --- ---
Gain/loss from commissioned investment or assets --- --- ---
Asset impairment provisions provided for force-majeur --- --- ---
Gain/loss from debt reorganization --- --- ---
Enterprise reorganizing expenses, such as emplovee placement fee and
integration fee
---
---
---
Gain/loss from trade departing from fair value --- --- ---
Current net gain/loss of subsidiaries under same control from beginning
of termtill date of consolidation
---
---
---
Gain/loss generated by contingent liabilities without connection with
main businesses
---
---
---
Gain/loss from change of fair value of transactional asset and liabilities,
and investment gains from disposal of transactional financial assets and
liabilities and sellable financial assets, other than valid period value
instruments related to the Company’s common businesses
9,009,386.30 14,661,991.57
Disposal
with the
sale of
financial
assets and
futures
Restoring of receivable account impairment provision tested individually --- --- ---
Gain/loss from commissioned loans --- --- ---
Gain/loss from change of fair value of investment property measured at
fair aluein follow-up measurement --- --- ---
Influence of one-time adjustment made on current gain/loss account
according to the laws and regulations regarding tax and accounting
---
---
---
Consigning fee received for consigned operation --- --- ---
Other non-business income and expenditures other than the above -1,107.68 853,198.99 ---
Other gain/loss items satisfying the definition of non-recurring gain/loss
account --- ---
---96
Items
Amount of
current period
Amount of
previous
period
Notes
Influenced amount of income tax 3,077,986.07 3,099,866.11 ---
Influenced amount of minor shareholders’ equity（After tax ） --- --- ---
Total 10,912,859.71 12,387,663.51 ---
2. Return on net assets and earnings per share
Profit of the report period
Net income on asset,
weighted
Earnings per share
Basic earnings per share Diluted gains per share
Net profit attributable to the owners
of Company.
5.03% 0.10 0.10
Net profit attributable to the owners
of Company after deducting of
non-recurring gain/loss.
2.82% 0.06 0.06
Legal representative：Wang Bin Person in change of accounting dept：Zhu Jun
Accounting Supervisor： Liu Yi
