Shenzhen Textile (Holdings) Co., Ltd.
Semi-Annual Report 2011
August 10,2011
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
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 Inspection
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Section 1 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.
Independent Directors Zhang Yong did not attend the meeting in person due to business, The
written authorized Independent director Shi Weihong to attend the meeting and exercise voting
right on their behalf.
The financial report of the semi-annual report has not been audited.
Section II Basic Information of the Company
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
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
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
Stock code : 000045, 200045
7. Other Relevant Information :
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
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.: 440304192173749
Guo Shui Deng Zi No.: 440301192173749
II. Highlights of financial data and indicators
1.Highlights of financial data and indicators
Unit:RMB
At the end of last Increase/Decrease
End of report year
year （％）
Total assets 1,649,822,837.21 1,655,422,298.41 -0.34%
Owners’ equity attributable to shareholders of
1,373,680,813.21 1,345,969,224.97 2.06%
the listed company
Share capital 336,521,849.00 336,521,849.00 0.00%
Net assets per share attributable to
shareholders of the listed 4.08 4.00 2.00%
company(RMB/share)
In the report period The same period of Increase/decrease
(From January-June) last year （%）
Total operating income 319,182,717.75 322,369,136.74 -0.99%
Operating profit 25,179,211.88 26,044,164.29 -3.32%
Total profit 40,796,734.67 31,025,623.77 31.49%
Net profit attributable to shareholders of the
32,363,976.69 24,858,502.70 30.19%
listed company
Net profit attributable to shareholders of the
listed company after deducting non-recurring 18,953,108.64 13,945,642.99 35.91%
gains and losses
Basic earnings per share(RMB/share) 0.10 0.10 0.00%
Diluted earnings per share(RMB/share) 0.10 0.10 0.00%
Decreased by
Return on equity（%） 2.38% 5.03%
2.65%
Weighted average return on equity after Decreased by
1.39% 2.82%
deducting non-recurring gain and loss（%） 1.43%
Net cash flow arising from operating activities 12,543,748.76 2,414,949.85 419.42%
Net cash flow per share arising from operating
0.04 0.01 300.00%
activities (RMB/share)
2. Items and amount of non-recurring gains and loss
Unit：RMB
Item of non-recurring gains and losses Amount
The loss for disposal of non-current assets 52,994.00
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Governmental Subsidy accounted as current gain/loss 4,690,090.02
The disposal available-for-sale financial assets gains return on investment 1,482,128.46
Net amount of non-operating income and expense except the aforesaid items 10,874,438.77
Amount of influence of income tax 3,688,783.20
Total 13,410,868.05
Notes：
(1) "Governmental subsidy accounted for as profits or losses for current period" includes
governmental R&D subsidy of RMB 3,954,990.00 appropriated by Shenzhen Development and
Reform Commission, national aid of RMB 500,000.00 for special project of new-type panel
display industrialization, supporting funds of RMB 100,000.00 for technology industrialization
demonstration project and loan discount of RMB 49,600.02 appropriated by Shenzhen Financial
Bureau, which were apportioned in current period, and economic development supporting fund of
RMB 85,500 received from Futian Chamber of Commerce;
(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）“Other non-operating income and expenditure except the above-mentioned items” mainly due
to receipt of 1,08 5,733 A shares of Guangdong Sunrise Group Co., Ltd. (the market value of
these shares was RMB 9,847,598.31 according to the closing price of A shares of * ST Sunrise on
May 17, 2010 (the last trading day before suspension of listing), i.e., RMB 9.07 per share) and
cash of RMB 702,694.14 (RMB 10,550,292.45 in total as recognized non-operating income)
according to (2010) Shen Zhong Fa Min Qi Zhong Zhen Zi No. 5-5 Civil Award and the Plan for
Reorganization of Guangdong Sun Rise Group Co., Ltd(Refer to No. 2011-39 Announcement of
the Company for details).
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
1.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.
2 Total number of shareholders
As of June 30,2011, the Company had 16,643 shareholders in total ,10,722 shareholders of A
shares(Including 3 shareholder of Legal person )and 5,921 shareholders of B shares( including one
shareholder of State-owned legal person ).
3. Particulars about the shares held by the main shareholders
Particulars of the shareholding of the top ten shareholders as of June 30, 2011
Unit：Shares
Total of shareholders 16,643
Top 10 shareholders
Name of the shareholder Properties of shareholder Share Total shares Conditional Pledged or
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
proportion % shares frozen
Shenzhen Investment Holdings
State-owned legal person 54.26% 182,611,460 37,634,408 0
Co., Ltd.
Shenzhen Shenchao Technology
State-owned legal person 4.79% 16,129,032 16,129,032 0
Investment Co., Ltd.
Zhejiang Silicon Valley Tiantang
Domestic non-
Kuncheng Chuangye Investment 4.23% 14,245,161 14,245,161 0
State-owned legal person
Co., Ltd.
Domestic non-
Huabao Intrust Co., Ltd. 3.04% 10,215,053 10,215,053 0
State-owned legal person
PICC Health Insurance Co., Ltd.- Domestic non-
2.56% 8,602,150 8,602,150 0
Universal Insurance Production State-owned legal person
Changzhou Investment Group
State-owned legal person 0.72% 2,421,495 2,421,495 0
Co., Ltd.
China People’s Life insurance
Domestic non-
Co., Ltd.-Dividend –Individual 0.64% 2,150,550 2,150,550 0
State-owned legal person
Dividend
CHINA OPPORTUNITIES H-B
Foreign Legal person 0.38% 1,271,367 00
FUND
Domestic nature person
Zheng Bangsheng 0.35% 1,169,000 00
shares
China Merchants Securities (HK)
State-owned legal person 0.28% 956,617 00
Co., Ltd.
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
Foreign shares placed in
CHINA OPPORTUNITIES H-B FUND 1,271,367
domestic exchange
Foreign shares placed in
Zheng Bangsheng 1,169,000
domestic exchange
Foreign shares placed in
China Merchants Securities (HK) Co., Ltd 956,617
domestic exchange
Shenzhen Zhongnan Liankang Technology Co., Ltd. 916,603 RMB Common shares
Foreign shares placed in
Xu Ruijiang 757,188
domestic exchange
Foreign shares placed in
Liu Hong 710,000
domestic exchange
Foreign shares placed in
Zheng Chuangjian 643,800
domestic exchange
Foreign shares placed in
Hong Yuansheng 635,000
domestic exchange
Foreign shares placed in
Jin Mingfei 621,950
domestic exchange
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
The Chinese legal person Shenzhen Shenchao Technology Investment Co., Ltd.
is a 100% subsidiary of Shenzhen Investment Holding Co., Ltd, which thus is a
Notes to the related relationship person acting in concert. There is no affiliation among the other state-owned
between the top ten shareholders legal persons as a shareholder.Except this, the Company does not know whether
or their concerted action 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.
4. The controlling shareholder of the Company did not change in the report
period.
Section IV Information about Directors, Supervisors and Senior Executives.
1.In the report period, Shares held by directors, supervisors and senior executives of the
Company
Unit：Shares
Quantity of shares
Quantity of shares held at
held at beginning of
Name Position the end of period (Nature
period (Nature of
of share)
share)
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.
2. Information about changing Directors, Supervisors and Senior Executives.
The company neither employed nor dismiss of directors, supervisors and executives in the report
period.
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.
In report peiod, The company takes the acceleration of the strategic transformation development as
the most urgent task, concentrates on speeding up the construction of polarizer projects, enhances
the fine management, strives to reduce the operation costs, strengthens the service consciousness
and executive ability, and actively implements various measures of “adjustment of structure,
improvement of the level, enhancement of management and promotion of development”. Thus, all
the tasks of the first half of the year have been fulfilled preferably.In the reporting period, the
company realized the revenues of RMB 319.1827 million from its main business, 1% down
compared to the same period of last year, and achieved the net profits of RMB 32.3640 million,
which is attributable to the parent company, 30.19% up compared to the same period of last year.
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
1.Industry: In the report period, the manufacturing income amounted to RMB 148.8097 million,
15.05% up compared to the same period of last year; and the total profit was RMB 15.1317
million, 36.7% up compared to the same period of last year. Revenue growth is mainly the
achievements made in the knitwear market development, the increase of export orders, the
continuously deepened cooperation of the domestic market and brand manufacturers, the adequate
product orders, and the great improvement of sales; the profit growth is mainly from that of the
knitwear, while the production and marketing situation of polarizer is fairly good, the total sales
revenue and profit are up 5.9% and 10.4% respectively compared with the same period last year.
2.Trading: In the report period, Trading: within the reporting period, the trading revenues
reached RMB 133.6159 million, 14.68% down compared to the same period of last year, and the
profits totalled up to 05314 million, down 13.93% down compared to the same peiod of last year,
As for the rise of raw material prices and exchange rate appreciation for RMB, the export trade
competiveness of textile was eroded, and the company’s operation revenue and gross margin of
textile trade are tending to decline.
3. Property leasing and management: In the report period, The revenue of leasing and service
industries of the company are 34.9247 million which remains the same as that in the previous year.
The difficulties have been overcome for the rental business of property of the company in the first
half of the year, such as the hoarding subway construction, more than three months of the
regulation engineering for appearance of city, etc., the stable occupancy rate and the rental income
have been guaranteed through careful and elaborate services.
In the report period, The Status of key business in terms of industry of business.
Unit：RMB’0000
The Status of key business in terms of industry of business.
Increase or
Increase/decrease of Increase/decrease ofdecrease of Gross
Income Cost of Gross
In terms of income from main cost of main profit ratio from
from main main profit
business line operation over the operation over the main operation
operation operation ratio（%）
previous year (%) previous year (%) over the previous
year (%)
Domestic and
13,361.59 13,295.98 0.49% -14.68% -14.77% 0.11%
foreign trade
Manufacturing 14,880.97 11,669.22 21.58% 15.05% 8.56% 4.68%
Lease and
Management of 3,492.47 970.24 72.22% 0.83% 22.74% -4.96%
Property
In the report period, The status of main operation in terms of product
Income from
Lease and
3,492.47 970.24 72.22% 0.83% 22.74% -4.96%
Management of
Property
Income from
3,647.10 2,846.34 21.96% 56.68% 39.54% 9.58%
textile
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Income from
11,233.87 8,822.87 21.46% 5.91% 1.31% 3.57%
Polarizer sheet
Incme from
13,361.59 13,295.98 0.49% -14.68% -14.77% 0.11%
Trading
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 124,725.00 in the report
period.
In the report period, The status of main operation in terms of product
Unit ：RMB’0000
Product Sales income Sales cost Gross profit rate
Polarizer sheet for LCD 11233.87 8822.87 21.46%
Fully-shaped knitted
2018.54 1548.28 23.30%
garment
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 profit of LCD with polarizer has an increase of 3.57 percentage points
over that in the same period last year, which is results mainly that the company has strengthened
new products development, centered on the readjustment of product structure, timely improved the
selling price of products, and discharged the pressure of the consistent soaring in the raw material
costs and manpower costs.
（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. In
the report period, The gross margin of fully-fashioned knitwear has an increase of 5.6 percentage
points over that in the same period last year, which is results mainly that the company has further
optimized the customer structure and enhanced the value added of products on the basis of
effectively developing the import and export market, while strengthened the quality control,
improved quality and reduced consumption, and widened the benefit space of products.
2. Analysis of the financial position and operating results of the Company
(1)The ending balance of monetary capital decreased by RMB 331.2496 million and 39.90% over
beginning of period mainly due to the investment in the construction of phase-I project of
polarizer sheet for TFT-LCD in current period;
(2)The ending book balance of accounts receivable increased by RMB 9.3208 million and 19.36%
mainly due to increase of income with the scale expansion of polarizer sheet business;
(3)The ending balance of Prepayment Increased by RMB 19.9132 million and 425.40% over
year-beginning balance ， The ending balance of Advance accountt Increased by RMB 21.7050
million and 155.90% over year-beginning balance mainly due to the increase of export trade
1)orders at the end of current period over the same period of the previous year；
(4)The end-of-period balance of construction in progress increased by RMB 298.8113 million
over beginning of period mainly due to increase of investment in phase-I project of polarizer sheet
for TFT-LCD;
(5)The end-of-period balance of taxes and levies payable decreased by RMB 31.0131 million and
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
773.07% over beginning of period mainly due to payment of value added tax on purchase for
imported equipment for phase-I project of polarizer sheet for TFT-LCD and other equipment
purchased;
(6)The end-of-period balance of interest payable increased by RMB 2.1448 million over beginning
of period mainly due to increase of special loan interest payable for the phase-I project of polarizer
sheet for TFT-LCD;
(7)The end-of-period balance of non-current liabilities to become due within one year decreased
by RMB 21 million mainly due to repayment of the loan;
(8)The selling expenses increased by RMB 1.6292 million and 89.73% year on year mainly due to
increase of sales income from manufacturing industry;
(9)Financial expenses decreased by RMB 6.5194 million and 299.66% year on year mainly due to
decrease of bank loan interests and increase of interest income from fixed deposit of raised
proceeds;
(10)Investment income decreased by RMB 8.3817 million and 70.53% year on year mainly due to
year-on-year decrease of sales of financial assets available for sale through secondary market in
current period;
(11)Non-operating income increased by RMB 10.6368 million and 213.48% year on year mainly
due to receipt of 1,085,733 A shares of Guangdong Sunrise Group Co., Ltd. (the market value of
these shares was RMB 9,847,598.31 according to the closing price of A shares of * ST Sunrise on
May 17, 2010 (the last trading day before suspension of listing), i.e., RMB 9.07 per share) and
cash of RMB 702,694.14 (RMB 10,550,292.45 in total as recognized non-operating income)
according to (2010) Shen Zhong Fa Min Qi Zhong Zhen Zi No. 5-5 Civil Award and the Plan for
Reorganization of Guangdong Sun Rise Group Co., Ltd(Refer to No. 2011-39 Announcement of
the Company for details)；
(12)Other cash received relating to operating activities increased by RMB 6.2891 million year on
year mainly due to receipt of RMB 3 million from the enforcement of the case of debt owed by
Jiangxi Xuanli Yarn Industry Co., Ltd. and receipt of cash of RMB 702,694.14 according to the
reorganization plan of Guangdong Sunrise Group Co., Ltd(Refer to No. 2011-23 Announcement of
the Company for details)；
(13)Net cash flows from operating activities increased by RMB 10.1288 year on year mainly due
to year-on-year increase of net cash flows from operating activities of Shenzhen Shengbo
Optoelectronic Technology Co., Ltd. and recovery of partial arrears from Jiangxi Xuanli Yarn
Industry Co., Ltd.;
(14)Cash received from disposal of investments decreased by RMB 8.4205 million year on year
mainly due to year-on-year decrease of sales of financial assets available for sale through
secondary market in current period;
(15) Other cash received relating to investing activities increased by RMB 208.6388 million year
on year mainly due to receipt of fixed deposit interest of RMB 4.0694 million and writeback of
fixed deposit of RMB 204.5694 million;
(16) Net cash outflow from investing activities increased by RMB 68.1043 million year on year
mainly due to increase of expenditure on phase-I project of polarizer sheet for TFT-LCD;
(17)Net cash flows from financing activities decreased by RMB 75.1377 million year on year
mainly due to year-on-year decrease of cash received from loans by RMB 130 million;
(18) Net increase in cash and cash equivalents decreased by RMB 133.5743 million year on year
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
mainly due to increase of investment in phase-I project of polarizer sheet for TFT-LCD and
decrease of cash obtained from loans in current period.
3. The problems confronted by the Company in operation and countermeasures
For the reporting period the total profits contain: the industrial profits, Since Guangdong Sunrise
Holdings Co., Ltd. has implemented the debt reorganization plan, the company has gained its
repayment of 1,085,700 of Share A and RMB 702,700 in cash, which is recognized as the
non-business income of RMB 10,550 during the reporting period, this extraordinary factor is the
main reason of an increase of the total profits over last year. If excluding this effect of
incomparable factor on the total profits, the industrial enterprises account for 50.03% of total
comparable profits, 18.93 percentage points higher than that in the same period of previous year.
The profits of the property leasing and management business which occupied 48.22% and the
trading profits which occupied 1.76% decreased 18.69% and 0.23% respectively, compared to the
same period of last year.
4. Operating Problems and Reactions
In the report period, Under the unfavorable influence of RMB appreciation, rising of labor costs,
soaring prices of raw material, aggravation of the market competition and the off-season of market
demand, which causes the pressure increase of production management. Huaqiang North Station
on Shenzhen Subway Line 2 of construction delayed to complete and the construction of
promoting appearance environment of Shenzhen city, which also bring a negative effect on the
increased income. The main responses of the company are as follows:
(1)Strengthen the communication and coordination of polarizer projects construction, in order to
ensure the projects are completed on schedule;
(2)Strengthen the fine management, adopt the research and development, technique renovation
and other measures to promote the improvement of production technology and the optimization of
product structure and to speed up the replacement process of domestic made raw materials, and
the flexible acquisition strategy, which all reduce the operating costs effectively;
(3)Grasp the production efficiency and product quality, strengthen the cultivation of technical
team, and intensify the market exploitation, in order to ensure the stability of production and
operation;
(4)For the property leasing, the company makes exploration and innovation, optimization of
customers, increase of revenue and reduction expenditures, improvement of service quality;
enhances the sales approach, improve the rental rates and occupancy rates according to the
different demand characteristics of customers;
(5) Accelerate the inventory and the turnover of the fund, strengthen the control of costs and
expense, in order to promote the management and control of the enterprise.
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
5. In the report period, the investment of the Company
1.The Company raised funds in the report period.
Unit：RMB’0000
Total Amount of Raised Capital 82,876.80
Total Amount Of Raised Capital Invested in the
Total Amount of Raised Capital for Use Changed in the 32,990.30
0.00 Reporting Period
Reporting Period
Total Amount for Accumulative Changed Raised Capital 0.00
Total Amount Of Accumulated Raised Capital
Total Amount Proportion for Accumulative Changed 46,748.29
0.00% Invested
Raised Capital
Balance between
Total Amount for
Projects Access to
Total Amount of Total Amount for Accumulative Achieve Change
Changed Total Amount of Total Amount Usable Benefits in
Promised Projects of Raised Capital For Accumulative Put Invested the Greatly for
（Includin Adjusted Invested within the Date For the
Investment Investment up to the End of & Promised Up Expected Projects
g Part of Investment Reporting Period Projects Reporting
Promised Period (2) To The End of Benefits Feasibility
Changing） Period
Period (3)＝
(2)-(1)
Promised Projects of
Investment
December Not
Polarizer sheet for LCD No 82,876.80 82,876.80 32,990.30 46,748.29 56.41% 0.00 No
1,2012 applicable
Subtotal of the
committed investment - 82,876.80 82,876.80 32,990.30 46,748.29 - - 0.00 - -
projects
Intended investment
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
with unbooked proceeds
Repayment of bank loan
- - - - -
（If any）
Replenishing the
- - - - -
working capital（If any）
Subtotal of intended
investment with - 0.00 0.00 0.00 0.00 - - 0.00 - -
unbooked proceeds
Total - 82,876.80 82,876.80 32,990.30 46,748.29 - - 0.00 - -
Analysis For Failure To
Reach The Planned The company has a schedule to change the narrow bound of production line to the wide one, but it is unsuccessful, which influences the construction progress of the
Schedule And Earnings narrow lines. (Refer to No. 2011-14,2011-19 and 2011-22 Announcement of the Company for details)
（Specific Projects
Notes to significant
change in feasibility of Not applicable
the project
Amount, application and
application progress of Not applicable
the unbooked proceeds
About the change of the
implementation site of
Not applicable
the projects invested
with the proceeds
About the change of the
implementation method Not applicable
of the projects invested
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
with the proceeds
About the initial
investment in the
projects planned to be
Not applicable
invested with the
proceeds and the
replacement
Using the idle proceeds
to supplement the On February 22, 2011，The 8th meeting of the Fifth board of directors of the Company “the proposal of supplementing raising partial unused funds into circulating
working capital on funds”，approved of using 80 million RMB for supplementing raising partial unused funds into circulating funds, the duration of service will not exceed 6 months
temporary basis
Balance of the proceeds
in process of project
Not applicable
implementation and the
cause
About application and
status of the proceeds As of December 31, 2011, The balance amount of fundraising special account is RMB 288.6461 million, it will be fully used in committed investment project.
unused
Problems existing in
application of the
proceeds and the Non
information disclosure
or other issues
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Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
2. The information of the company non-raised funds projects
In the report period, The Company did not Significant raise funds.
On May 5, 2011, the 11th meeting of the fifth board of directors examined and adopted the
proposal concerning corporative investment and development of Guanhua Building, the company
has corporative investment and development of Guanhua Building based on self funding of RMB
42,21 million. In the report period, The accumulative investment of the company is RMB
2,006,624.19 , Currently, the operation permit is proceeding and awaiting to be Approved .
6. Contruction of the TFT-LCD polaroids Project Phase 1
In the report period, The construction of phase-I project of polarizer sheet for TFT-LCD is making
smooth progress. At present, the phase-I project of polarizer sheet is in the stage of factory
building cleaning and decoration and equipment installation. For the wide-size line, the
installation of three main units, i.e., coating machine, stretching line and preprocessing machine
has been completed. Trial production can be carried out as scheduled in the fourth quarter. For the
narrow-size line, the open tender for the main units will be completed in the third quarter of this
year. Trial production will be carried out in the third quarter of next year. As of June 30, 2011，The
accumulative amount of investment in this project is RMB 467.4829 million.
7.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 2011 is estimated to change slightly over that for
the same period of previous year (Net profit RMB 24.8585 million).
Section VI Important Events
1. Status of corporate administration:
1. Status of corporate administration:
In the report period, The company continuously improves the governance structure of enterprise
and standardizes the operations strictly in accordance with the requirements of “Company Law”,
“Securities Law” and the laws and regulations related to China Securities Regulatory
Commission.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.
2. The progress of construction for the inner controlling norms
The company set up the leading group and working group of building on the internal control
15
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
system on April 15, 2011, and the “Implementation Program on Construction of Internal Control
System” had been examined and passed at the 9th Meeting of 5th session of Board of Directors of
the company. The company respectively held the start-up conference of construction projects on
the internal control system and the training meeting of construction on the internal control system
on May 26, 2011 and June 10, 2011, and hired the intermediary organization to assist it to promote
the construction of the internal control system according to the specifications.
In the report peiod, Combining with the industry characteristics and operating conditions, the
company makes the clear definition of the scope of internal control related to the financial
statements in accordance with the relevant requirements. Based on the Working Program on
Construction of Internal Control System, the company has completed the works, such as
“Preparation of Internal Control Implementation Plans and Programs”, “Approval and
Announcement of Implementation Program upon Board of Directors”, “Hold of Projects Start-up
Conference”, “Employment of intermediary organization for Inner Training”, “Definition of
Internal Control Scope Relevant to Financial Statements”, “Identification of Focus and Risk
Points of Priority Control”, “Approval of Implementation Scope upon Leader Team and Board of
Directors”, “Submission of the Implementation Scope of Inner Control Construction and its
Determination Basis and the Impact on Financial Statements to China Securities Regulatory
Bureau for Backup”, etc., and has entered the stage of risk identification and assessment.
2.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 2010, a sum of statutory
reserve was appropriated from the net realized profits of RMB 2,254,264.43 at a rate of 10%,
company is not planning to allocate the other undistributed profits achieved in 2010 or shifting the
capital accumulation funds to increased capital stock,The undistributed profit will be used to
supplement working capital needed by the Company for business development;
After decision by the board of directors of the Company, the Company is neither to distribute the
net profit for the first half of 2011 nor to capitalize any capital surplus.
3. 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）On the case of debts that the company applied to arbitrate Jiangxi Xuanli Thread Co., Ltd.,
the had received the written execution verdict from Longnan People’s Court of Jiangxi province
on May 12, 2011, the consultation said that: for the maximization of the protection of the
application executor’s interests, the debtee should sell off its land use rights (industrial land) and
other existing property to the medium or small shareholders and the third person, the payment had
16
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
been submitted to the court for settling the debts of present case. Currently, the debtee has no
other assets for implementation; the termination of execution is on Shenzhen Arbitration
Commission [2009] Arbitration No.1336 Judgment. The company has received the executive
payment of RMB 3 million during the reporting period. (Refer to No. 2011-23 Announcement of
the Company for details).
（ 3 ） According to the reorganization planning of Sunrise company, the debts amount
(Announcement No.: 2010-44). RMB 31,605,196.47 Sunrise company owned to corporate will be
compensated as 1,085,733 A shares of Sunrise company’s share (Announcement No.:
2010-44).On Junuary 21, 2011, Corporate has received debt payment amount RMB 702,694.14.
On April 1, 2011, Corporate has received compensation shares 1,.85,733 shares.
4. The shares of other listed companies held by the Company：
As of June 30, 2011, The company holds 9,543,394 shares of ST Shenzhen Victor Onward. Listed
at Shenzhen Stock Exchange, which account for 5.64% of the total share capital of ST Shenzhen
Victor Onward. The above-mentioned shares were accounted for as financial assets available for
sale. The initial investment cost is RMB 11,356,638.86. At the end of the report period, the book
value of the investment was RMB 69,189,606.50.
As of June 30, 2011, the Company held 1,085,733 A shares of * ST Sunrise (which account for
0.38% of total shares of * ST Runrise) including 120,858 unrestricted negotiable shares and
964,875 restricted negotiable shares. The said shares were accounted for as financial assets
available for sale. The Company recognized initial investment cost of RMB 9,847,598.31
according to the closing price on May 17, 2010 (the last trading day before suspension of listing),
i.e., RMB 9.07 per share. As of the day of disclosure of this report, the suspension of listing
continued. The end-of-period fair value of the shares is RMB 9,847,598.31.
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.
5. The Company was not involved in any material assets acquisition or enterprise merger in the
report period.
6. The Company was not involved in any material related transaction
7. Important contracts and their performance
1. The major contracts of guarantee that never happen during the reporting period or happen but
delay to the reporting period;
2. The major contracts of guarantee that never happen during the reporting period or happen but
delay to the reporting period;
3. The major matters on the property management of cash entrusted by others that never happen
during the reporting period or happen but delay to the reporting period.
8. 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
17
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Listed Companies and Their Related Parties and Guarantees Provided by Listed Companies
(Zheng Jian Fa (2003) No. 56 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 provided by
Shenzhen Textile (Holdings) Co., Ltd. with responsible attitude . We hereby make the following
statement:
1. In the report period, The fund occupation between corporate and other associated parties are
normal financial transactions. There is no such event that controlling shareholder or other
associated parties occupied the fund of listed company.
2. Corporate’s loan guarantee quota offered to Shengbo Company of wholly-owned subsidiaries is
RMB 150 million. Actual loan guarantee amount is RMB 150 million.
3.In the report peiod, The overdue debts guaranteed of the company have never happened, also
without guarantee to other parties.
We think that corporate has established perfect risk control system for external guarantee and it
can standardize external guarantee activity according to related system and control the risk of
corporate’s external guarantee. During report period, the guarantee provided by corporate to
wholly owned subsidiary companies belongs to the needs of company’s production & operation
and the reasonable usage of fund. There is no sign that corporate might have to bear the liability
for the debt default of vouchee.
Independent directors： Zhang Yong , Shi Weihong,Yang Shibin
9. Commitments of the controlling shareholder
Items of commitments Promisee Content of commitments Implementation
Promise in share holding
N/A N/A N/A
structure reform
Commitments made in
Acquisition Report or
N/A N/A N/A
Reports on Change in
interests
Commitments made in
Material assets N/A N/A N/A
Reorganization
Shenzhen Investment Holdings Co.,
Ltd. signed a “Letter of Commitment
and Statement on Horizontal
Competition Avoidance” when the
Shenzhen
company issued non-public stocks in
Commitments made in Investment Under
2010. Pursuant to the Letter of
issuing Holdings fulfillment
Commiment and Statement, Shenzhen
Co., Ltd.
Investment Holdings Co., Ltd. and its
wholly owned subsidiary, subsidiaries
under control or any other companies
that have actual control of it shall not
18
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
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.
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
Shenzhen
Other commitments exchange system in the future, and the
Investment Under
（Including: supplementary decrease of the shares they hold reaches
Holdings fulfillment
commitments） 5% within 6 months after the first
Co., Ltd.
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
19
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Listed Companies” and the provisions
of the relevant business principles of
Shenzhen Stock Exchange.
10. 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.
11. 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 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, Communication with all investors focusing on the fund-raising investment projects
concerned by the investors – the projects progress of the first stage TFT-LCD with polarizer by
several channels, such as phone, mail, reception of visitors, the interactive platform of investors in
Shenzhen Stock Exchange, etc. to give a frank answer to any questions of the investor, and listen
carefully to the opinions and suggestions of the investors. The registration form of acceptance of
investigation, communication and interview in the report period for future reference:
Reception date Reception Reception Mode Reception Discussion issue and offered
plane Object information
Get a general idea of the
company’s business, the
January 1, The Individual
Telephone progress of polarizer projects
2011-June 30, 2011 Company Investor
and the impact of Japanese
earthquake on the company
Get a general idea of the
progress of polarizer projects
The Onsite Individual
June 20, 2011 and also, offer the printed
Company investigation Investor
copy of Annual Report 2010.
12. In the report period，The compnay doesnt engage audit body of the year 2011
13. 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.
14. In the report period，there were no other important events that had material influence on the
Company.
15.Index for information disclosed.
20
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
In the report period, All of the above announcements are available in thewebsiteassigned by
Securities Times ,Hong Kong Commercial Daily and www.cninfo.com.cn. Index for information
is as follows：
Date of
No. Content
publishing
2011-01 January 8 Eamings prediction 2011
Announcement of national certification of a subsidiary as
2011-02 January 19
high-tech enterprise
2011-03 Febuary 2 Announcement of return of raised funds
Announcement of using partial idle raised proceeds to
2011-04
supplement working capital
Febuary 2
Announcement of resolutions of the 8th meeting of the sixth
2011-05
Supervisory Committee
2011-06 April 14 Announcement of progress of urban renewal planning
Announcement of resolutions of the 9th meeting of the Fifth
2011-07
Board of Directors
Announcement of resolutions of the 9th meeting of the Fifth
2011-08
April 15 Supervisory Committee
Special report on deposit and actual use of raised proceeds in
2011-09
2010
2011-10 2010 Annual Report and its Summary
Announcement of resolutions of the 10th meeting of the Fifth
2011-11
Board of Directors
Announcement of resolutions of the 10th meeting of the Fifth
2011-12
Supervisory Committee
April 23
2011-13 The First Quarterly Report 2011
Announcement of change of investment projects using raised
2011-14
proceeds
2011-15 Notice of Holding the Shareholders’s General Meeting in 2010
Announcement of approval of phase-I project of polarizer
2011-16 April 26
sheet for TFT-LCD
Announcement of resolutions of the 11th meeting of the Fifth
2011-17
Board of Directors
May 6
Announcement of resolutions of the 11th meeting of the Fifth
2011-18
Supervisory Committee
Announcement of resolutions of the 12th meeting of the Fifth
2011-19
Board of Directors
Announcement of resolutions of the 12th meeting of the Fifth
2011-20
Supervisory Committee
May 10
Announcement of cancellation of change of investment
2011-21
projects using raised proceeds
Notice of canceling proposals of 2010 annual shareholders'
2011-22
general meeting
2011-23 May 13 Announcement of enforcement ruling on arbitration
Announcement of resolutions of 2010 annual Shareholders’
2011-24 May 19
General Meeting
2011-25 June 14 Announcement of receipt of national aid by a subsidiary
Announcement of resolutions of the 13th meeting of the Fifth
2011-26
Board of Directors
June ,21
Announcement of resolutions of the 13th meeting of the Fifth
2011-27
Supervisory Committee
21
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Section VII Financial Report
（I）Financial statements (Attached 1)
1. Balance sheet
2. Profit statement
3. Cash flow statement
4. Change in owners’ equities
(II) Notes to financial statements(Attached II)
Section VIII 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.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 10, 2011
22
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Attached I: Financial statements
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Balance sheet
Unit RMB
Assets June 30, 2011 December 31, 2010
Current asset：
Monetary fund 498,986,454.63 830,236,037.30
Trading financial assets - -
Bill receivable 2,107,763.05 -
Account receivable 57,469,117.54 48,148,305.15
Prepayments 24,594,257.01 4,681,130.84
Interest receivable 1,836,339.85 2,203,227.00
Dividend receivable - -
Other receivable 25,654,944.30 30,015,024.72
Inventories 67,936,176.52 60,986,770.44
Non-current asset due in 1 year - -
Other current assets - -
Total of current assets 678,585,052.90 976,270,495.45
Non-current assets：
Disposable financial asset 79,037,204.81 75,481,853.50
Expired investment in possess - -
Long-term receivable - -
Long term share equity investment 46,947,791.21 47,250,337.33
Property investment 164,910,744.18 168,268,522.84
Fixed assets 160,142,264.53 166,482,617.12
Construction in progress 454,072,158.61 155,260,944.31
Engineering material - -
Fixed asset disposal - -
Production physical assets - -
Gas & petrol - -
Intangible assets 47,605,567.53 48,642,431.17
R & D petrol - -
Goodwill 9,614,758.55 9,614,758.55
Long-germ expenses to be amortized 1,111,955.26 897,757.98
Differed income tax asset 7,795,339.63 7,252,580.16
Other non-current asset - -
Total of non-current assets 971,237,784.31 679,151,802.96
Total of assets 1,649,822,837.21 1,655,422,298.41
23
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Balance Sheet Cont’d）
Unit：RMB
Liabilities & equity June 30, 2011 December 31, 2010
Current Liabilities
Short-term loans - 2,000,000.00
Financial liabilities held for trading - -
Bill payable - -
Accounts payable 34,112,216.58 33,098,532.04
Advances from customers 35,627,099.58 13,922,128.20
Salaries payable to Staff 18,308,399.02 20,785,444.97
Taxes payable -27,001,427.03 4,011,683.39
Interests payable 2,298,867.02 154,092.20
Dividends payable - -
Other payable 49,231,541.90 47,759,095.14
Non-current liabilities due in 1 year - 21,000,000.00
Other current liabilities - -
Total current liabilities 112,576,697.07 142,730,975.94
Non-Current liabilities:
Long-term loan 96,719,008.30 96,719,008.30
Bonds payable - -
Long-term payable - -
Special payable - -
Accrued liabilities - -
Deferred income tax liabilities 14,039,722.96 15,446,103.51
Other Non-current liabilities 52,806,595.67 54,556,985.69
Total of non-current liabilities 163,565,326.93 166,722,097.50
Total of liability 276,142,024.00 309,453,073.44
Owners’ equity
Share capital 336,521,849.00 336,521,849.00
Capital reserves 835,144,726.68 839,797,115.13
Less：Shares in stock - -
Surplus reserves 34,086,443.10 34,086,443.10
Undistributed profit 167,927,794.43 135,563,817.74
Total of owner’s equity belong to the parent 1,373,680,813.21 1,345,969,224.97
company
Minor shareholders’ equity - -
Total of owners’ equity 1,373,680,813.21 1,345,969,224.97
Total of liabilities and owners’ equity 1,649,822,837.21 1,655,422,298.41
24
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Profit Statement
January-June 2011
Unit：RMB
Items January-June 2011 January-June 2010
I.Income from the key business 319,182,717.75 322,369,136.74
II.Total business cost 297,505,664.40 308,208,839.07
Incl：Business cost 261,172,573.17 273,132,795.71
Operating taxes and extras 3,553,081.05 3,153,374.16
Sales expenses 3,444,774.44 1,815,600.87
Administrative expenses 30,654,365.07 26,403,627.56
Financial expenses -4,343,761.14 2,175,589.19
Loss of devaluation of assets 3,024,631.81 1,527,851.58
Add：Changing income of fair value - -
Investment income 3,502,158.53 11,883,866.62
Incl: investment gains from affiliates 97,453.88 979,077.01
III. Operational profit 25,179,211.88 26,044,164.29
Add：Non-business income 15,619,413.07 4,982,567.16
Less：Non business expenses 1,890.28 1,107.68
Incl：Loss from disposal of non-current - -
IV.Total profit 40,796,734.67 31,025,623.77
Less：Income tax expenses 8,432,757.98 6,167,121.07
25
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Consolidated Cash flow statement
Unit：RMB
Items January-June 2011 January-June 2010
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 311,780,179.42 326,450,091.77
Tax returned 23,683,459.82 26,585,651.90
Other cash received from business operation 7,189,737.10 900,678.20
Sub-total of cash inflow 342,653,376.34 353,936,421.87
Cash paid for purchasing of merchandise and services 259,863,190.15 294,294,890.06
Cash paid to staffs or paid for staffs 33,599,761.08 24,298,731.85
Taxes paid 18,805,471.26 15,839,658.03
Other cash paid for business activities 17,841,205.09 17,088,192.08
Sub-total of cash outflow from business activities 330,109,627.58 351,521,472.02
Cash flow generated by business operation, net 12,543,748.76 2,414,949.85
II.Cash flow generated by investing
Cash received from investment retrieving 1,957,406.46 10,377,879.04
Cash received as investment gains 1,654,292.08 1,440,403.30
Net cash retrieved from disposal of fixed assets, 64,494.00 -
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or other - -
operational units
Other investment-related cash received 208,638,835.75 -
Sub-total of cash inflow due to investment activities 212,315,028.29 11,818,282.34
Cash paid for construction of fixed assets, intangible 330,575,486.29 61,974,424.22
assets and other long-term assets
Cash paid as investmen - -
Cash paid as investmen - -
Other cash paid for investment activities - -
Sub-total of cash outflow due to investment activities 330,575,486.29 61,974,424.22
Net cash flow generated by investment -118,260,458.00 -50,156,141.88
III.Cash flow generated by financing
Cash received as investment - -
Incl: Cash received as investment from minor - -
shareholders
Cash received as loans - 132,553,666.34
Other financing –related ash received 2,850,000.00 2,300,000.00
Sub-total of cash inflow from financing activities 2,850,000.00 134,853,666.34
Cash to repay debts 23,000,000.00 77,000,000.00
Cash paid as dividend, profit, or interests 564,471.66 3,204,422.50
Other cash paid for financing activities - 226,003.51
Sub-total of cash outflow due to financing activities 23,564,471.66 80,430,426.01
Net cash flow generated by financing -20,714,471.66 54,423,240.33
IV.Influence of exchange rate alternation on cash and
-248,959.27 212,147.38
cash equivalents
V.Net increase of cash and cash equivalents -126,680,140.17 6,894,195.68
Add: balance of cash and cash equivalents at the
417,686,594.80 101,340,314.95
beginning of term
26
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
VI .Balance of cash and cash equivalents at the end of
291,006,454.63 108,234,510.63
term
27
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Consolidated Statement on Change in Owners’ Equity
January-June 2011
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. Unit：RMB
Owner’s equity Attributable to the Parent Company
Minor
Less: Common Total of owners’
Items Share Capital Specialized Surplus shareholders’
Capital reserves Shares in risk Attrbutable profit Other equity
reserve reserves equity
stock provission
I.Balance at the end of last year 336,521,849.00 839,797,115.13 - - 34,086,443.10 - 135,563,817.74 - - 1,345,969,224.97
Add: Change of accounting policy - - - - - - - - - -
Correcting of previous errors - - - - - - - - - -
Other - - - - - - - - - -
II.Balance at the beginning of current year 336,521,849.00 839,797,115.13 - - 34,086,443.10 - 135,563,817.74 - - 1,345,969,224.97
III.Changed in the current year - -4,652,388.45 - - - - 32,363,976.69 - - 27,711,588.24
（I） Net profit 32,363,976.69 32,363,976.69
（II）Other misc.income -4,652,388.45 -4,652,388.45
Total of (I) and (II) - -4,652,388.45 - - - - 32,363,976.69 - - 27,711,588.24
(III) Investment or decreasing of capital by - - - - - - - - - -
owners
1. Capital inputted by owners - - - - - - - - - -
2．Amount of shares paid and accounted as - - - - - - - - - -
owners’ equity
3．Other - - - - - - - - - -
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus reserves - - - - - - - - - -
2.Providing of common risk provisions - - - - - - - - - -
3．Other - - - - - - - - - -
(V) Internal transferring of owners’ equity - - - - - - - - - -
1. Capitalizing of capital reserves (or to - - - - - - - - - -
capital shares)
2. Capitalizing of surplus reserves (or to - - - - - - - - - -
capital shares)
3．Making up losses by surplus reserves. - - - - - - - - - -
4．Other - - - - - - - - - -
(VI) Special reserves - - - - - - - - - -
1Provided this year - - - - - - - - - -
2.Used this term - - - - - - - - - -
IV. Balance at the end of this term 336,521,849.00 835,144,726.68 - - 34,086,443.10 - 167,927,794.43 - - 1,373,680,813.21
28
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Consolidated Statement of Change in Owners’ Equity
January-June 2010
Prepared by: Shenzhen Textile (Holdings) Co., Ltd. Unit: RMB
Owner’s equity Attributable to the Parent Company
Common Minor shareholders’ Total of owners’
Items Share Capital Less: Shares Specialize Surplus Attrbutable Oth
Capital reserves risk equity equity
in stock d reserve reserves profit er
provission
I.Balance at the end of last year 245,124,000.00 119,181,307.65 - - 31,832,178.67 - 97,108,810.95 - - 493,246,297.27
Add: Change of accounting policy - - - - - - - - - -
Correcting of previous errors - - - - - - - - - -
Other - - - - - - - - - -
II.Balance at the beginning of current 245,124,000.00 119,181,307.65 - - 31,832,178.67 - 97,108,810.95 - - 493,246,297.27
year
III.Changed in the current year - -23,136,556.04 - - - - 24,858,502.70 - - 1,721,946.66
（I） Net profit 24,858,502.70 24,858,502.70
（II）Other misc.income -23,136,556.04 -23,136,556.04
Total of (I) and (II) - -23,136,556.04 - - - - 24,858,502.70 - - 1,721,946.66
(III) Investment or decreasing of capital - - - - - - - - - -
by owners
1. Capital inputted by owners - - - - - - - - - -
2．Amount of shares paid and accounted - - - - - - - - - -
as owners’ equity
3．Other - - - - - - - - - -
（IV）Profit allotment - - - - - - - - - -
1.Providing of surplus reserves - - - - - - - - - -
3．Allotment to the owners (or - - - - - - - - - -
shareholders)
4．Other - - - - - - - - - -
(V) Internal transferring of owners’ - - - - - - - - - -
equity
1. Capitalizing of capital reserves (or to - - - - - - - - - -
capital shares)
2. Capitalizing of surplus reserves (or to - - - - - - - - - -
capital shares)
3．Making up losses by surplus reserves. - - - - - - - - - -
4．Other - - - - - - - - - -
(VI) Special reserves - - - - - - - - - -
1. Provided this year - - - - - - - - - -
2．Used this term - - - - - - - - - -
IV. Balance at the end of this term 245,124,000.00 96,044,751.61 - - 31,832,178.67 - 121,967,313.65 - - 494,968,243.93
29
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Balance sheet
Unit：RMB
Assets June 30,2011 December 31, 2010
Current asset：
Monetary fund 299,746,287.48 483,902,800.37
Trading financial assets - -
Bill receivable - -
Account receivable - -
Prepayments 2,092,000.00 881,080.00
Interest receivable 1,836,339.85 2,203,227.00
Dividend receivable - -
Other receivable 21,377,171.00 25,218,113.04
Inventories -
Non-current asset due in 1 year - -
Other current assets - -
Total of current assets 325,051,798.33 512,205,220.41
Non-current assets：
Disposable financial asset 79,037,204.81 75,481,853.50
Expired investment in possess - -
Long-term receivable - -
Long term share equity investment 775,424,838.98 575,727,385.10
Property investment 154,844,864.74 157,914,202.69
Fixed assets 33,764,093.25 34,758,106.27
Construction in progress 2,006,624.19 -
Engineering material - -
Fixed asset disposal - -
Production physical assets - -
Gas & petrol - -
Intangible assets 1,568,439.80 1,763,383.44
R & D petrol - -
Goodwill - -
Long-germ expenses to be amortized - -
Differed income tax asset 4,374,127.20 4,339,038.67
Other non-current asset - -
Total of non-current assets 1,051,020,192.97 849,983,969.67
Total of assets 1,376,071,991.30 1,362,189,190.08
30
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Balance sheet Cont’d）
Unit：RMB
Liabilities & Equity June 30, 2011 December 31, 2010
Current Liabilities
Short-term loans - -
Financial liabilities held for trading - -
Bill payable - -
Accounts payable 1,590,881.57 1,732,905.87
Advances from customers 639,024.58 639,024.58
Salaries payable to Staff 4,581,840.45 6,529,841.13
Taxes payable 4,089,769.37 2,333,265.14
Interests payable - -
Dividends payable - -
Other payable 65,138,344.05 63,396,499.56
Non-current liabilities due in 1 year - -
Other current liabilities - -
Total current liabilities 76,039,860.02 74,631,536.28
Non-Current liabilities:
Long-term loan - -
Bonds payable - -
Long-term payable - -
Special payable - -
Accrued liabilities - -
Deferred income tax liabilities 13,927,636.24 15,334,016.79
Other Non--Current liabilities: - -
Total of non-current liabilities 13,927,636.24 15,334,016.79
Total of liability 89,967,496.26 89,965,553.07
Owners’ equity
Share capital 336,521,849.00 336,521,849.00
Capital reserves 826,561,744.89 831,214,133.34
Less：Shares in stock - -
Surplus reserves 34,086,443.10 34,086,443.10
Undistributed profit 88,934,458.05 70,401,211.57
Total of owners’ equity 1,286,104,495.04 1,272,223,637.01
Total of owners’ equity 1,286,104,495.04 1,272,223,637.01
Total of liabilities and owners’ equity 1,376,071,991.30 1,362,189,190.08
31
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company profit Statement
January-June 2011
Unit RMB
January-June
ems January-June 2011
2010
I. Business income 27,412,012.19 26,185,085.38
Less：Business cost 5,806,617.39 5,209,763.11
Operating taxes and extras 2,426,440.81 2,271,266.87
Sales expenses - -
Administrative expenses 13,462,239.34 10,919,104.25
Financial expenses -4,084,479.09 1,125,555.37
Loss of devaluation of assets -146,202.21 3,287,704.58
Add：Changing income of fair value - -
Investment income 2,960,216.90 11,391,272.25
Incl: investment gains from affiliates 97,453.88 # 979,077.01
II. Operational profit 12,907,612.85 14,762,963.45
Add：Non-business income 10,919,223.05 -
Less：Non business expenses 88.28 200.00
Incl：Loss from disposal of non-current - -
III. Total profit 23,826,747.62 14,762,763.45
Less：Income tax expenses 5,293,501.14 2,785,058.36
IV.Net profit 18,533,246.48 11,977,705.09
V. Earnings per share
（I）Basic earnings per share 0.06 0.05
(II)Diluted earnings per share 0.06 0.05
VII. Other comprehensive income -4,652,388.45 -23,136,556.04
VIII. Total comprehensive income 13,880,858.03 -11,158,850.95
Total comprehensive income attributable to the owner of 13,880,858.03 -11,158,850.95
the parent company
Total comprehensive income attributable minority - -
shareholders
32
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Shenzhen Textile (Holdings) Co., Ltd.
Parent Company Cash flow statement
Unit：RMB
January-June January-June
Items
2011 2010
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 24,909,346.70 23,885,694.18
Tax returned - -
Other cash received from business operation 9,248,049.28 2,807,176.52
Sub-total of cash inflow 34,157,395.98 26,692,870.70
Cash paid for purchasing of merchandise and services 1,719,903.98 2,155,381.46
Cash paid to staffs or paid for staffs 8,992,339.31 5,260,089.92
Taxes paid 4,895,304.51 3,612,360.21
Other cash paid for business activities 7,800,603.93 70,329,994.03
Sub-total of cash outflow from business activities 23,408,151.73 81,357,825.62
Cash flow generated by business operation, net 10,749,244.25 -54,664,954.92
II.Cash flow generated by investing
Cash received from investment retrieving 1,957,406.46 10,377,879.04
Cash received as investment gains 1,415,634.56 947,808.93
Net cash retrieved from disposal of fixed assets, intangible 52,994.00 -
assets, and other long-term assets
Net cash received from disposal of subsidiaries or other - -
operational units
Other investment-related cash received 201,433,611.71 -
Sub-total of cash inflow due to investment activities 204,859,646.73 11,325,687.97
Cash paid for construction of fixed assets, intangible assets 2,195,961.37 4,581,603.75
and other long-term assets
Cash paid as investment 200,000,000.00 -
Net cash received from subsidiaries and other operational - -
units
Other cash paid for investment activities - -
Sub-total of cash outflow due to investment activities 202,195,961.37 4,581,603.75
Net cash flow generated by investment 2,663,685.36 6,744,084.22
III.Cash flow generated by financing
Cash received as investment - -
Cash received as loans - 130,000,000.00
Other financing –related ash received - -
Sub-total of cash inflow from financing activities - 130,000,000.00
Cash to repay debts - 70,000,000.00
Cash paid as dividend, profit, or interests - 1,176,930.00
Other cash paid for financing activities - 226,003.51
Sub-total of cash outflow due to financing activities - 71,402,933.51
Net cash flow generated by financing - 58,597,066.49
IV.Influence of exchange rate alternation on cash and cash - -2,265.86
equivalents
V.Net increase of cash and cash equivalents 13,412,929.61 10,673,929.93
Add: balance of cash and cash equivalents at the beginning of 84,353,357.87 19,539,632.30
term
VI .Balance of cash and cash equivalents at the end of term 97,766,287.48 30,213,562.23
33
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Statement of Change in Owners Equity
January-June 2011
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
Owner’s equity Attributable to the Parent Company
Items Share Capital Specialized Common risk Attrbutable Total of owners’ equity
Capital reserves Less: Shares in stock Surplus reserves
reserve provission profit
I.Balance at the end of last year 336,521,849.00 831,214,133.34 - - 34,086,443.10 - 70,401,211.57 1,272,223,637.01
Add: Change of accounting policy - - - - - - - -
Correcting of previous errors - - - - - - - -
Other - - - - - - - -
II.Balance at the beginning of current year 336,521,849.00 831,214,133.34 - - 34,086,443.10 - 70,401,211.57 1,272,223,637.01
III.Changed in the current year - -4,652,388.45 - - - - 18,533,246.48 13,880,858.03
（I） Net profit 18,533,246.48 18,533,246.48
（II）Other misc.income -4,652,388.45 -4,652,388.45
Total of (I) and (II) - -4,652,388.45 - - - - 18,533,246.48 13,880,858.03
(III) Investment or decreasing of capital by - - - - - - - -
owners
1. Capital inputted by owners - - - - - - - -
2 ． Amount of shares paid and accounted as - - - - - - - -
owners’ equity
3．Other - - - - - - - -
（IV）Profit allotment - - - - - - - -
1.Providing of surplus reserves - - - - - - - -
3．Allotment to the owners (or shareholders) - - - - - - - -
4．Other - - - - - - - -
(V) Internal transferring of owners’ equity - - - - - - - -
1. Capitalizing of capital reserves (or to capital - - - - - - - -
shares)
2. Capitalizing of surplus reserves (or to capital - - - - - - - -
shares)
3．Making up losses by surplus reserves. - - - - - - - -
4．Other - - - - - - - -
(VI) Special reserves - - - - - - - -
1. Provided this year - - - - - - - -
2．Used this term - - - - - - - -
IV. Balance at the end of this term 336,521,849.00 826,561,744.89 - - 34,086,443.10 - 88,934,458.05 1,286,104,495.04
34
Shenzhen Textile (Holdings) Co., Ltd. Semi-Annual Report 2011 000045、200045
Statement on Change in Owners Equity
January-June 2010
Prepared by: Shenzhen Textile (Holdings) Co., Ltd.
Owner’s equity Attributable to the Parent Company
Items Less: Shares Special Common risk
Capital reserves Surplus reserves Attributable profit Total of owners’ equity
Share Capital in stock reserve provisions
I.Balance at the end of last year 245,124,000.00 110,598,325.86 - - 31,832,178.67 - 50,112,831.71 437,667,336.24
Add: Change of accounting policy - - - - - - - -
Correcting of previous errors - - - - - - - -
Other - - - - - - - -
II.Balance at the beginning of current year 245,124,000.00 110,598,325.86 - - 31,832,178.67 - 50,112,831.71 437,667,336.24
III.Changed in the current year - -23,136,556.04 - - - - 11,977,705.09 -11,158,850.95
（I） Net profit 11,977,705.09 11,977,705.09
（II）Other misc.income -23,136,556.04 -23,136,556.04
Total of (I) and (II) - -23,136,556.04 - - - - 11,977,705.09 -11,158,850.95
(III) Investment or decreasing of capital by owners - - - - - - - -
1. Capital inputted by owners - - - - - - - -
2 ． Amount of shares paid and accounted as owners’
- - - - - - - -
equity
3．Other - - - - - - - -
（IV）Profit allotment - - - - - - - -
1.Providing of surplus reserves - - - - - - - -
2．Allotment to the owners (or shareholders) - - - - - - - -
4．Other - - - - - - - -
(V) Internal transferring of owners’ equity - - - - - - - -
1. Capitalizing of capital reserves (or to capital shares) - - - - - - - -
2. Capitalizing of surplus reserves (or to capital shares) - - - - - - - -
3．Making up losses by surplus reserves. - - - - - - - -
4．Other - - - - - - - -
(VI) Special reserves - - - - - - - -
1. Provided this year - - - - - - - -
2．Used this term - - - - - - - -
IV. Balance at the end of this term 245,124,000.00 87,461,769.82 - - 31,832,178.67 - 62,090,536.80 426,508,485.29
35
Attached II: Notes to Financial statements
Shenzhen Textile (Holdings) Co., Ltd.
Notes to Financial statements
January-June 2011
I.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, LCD 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 Holding 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 13, 2011
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, 2011
truly and completely and business result on January-June 2011 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, the 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
36
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 statement
（ 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 submitting 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
37
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 assets
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.
38
(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 and 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
（1）Account receivable belong t individual significance and individually assessed for impairment：
The Client Identifies single amount of accounts receivable that is not less less
thanRMB 1 million as account receivable that are individually significant in
Criteria and norm of
amount.The Client Identifies single amount of accounts receivable that is not less
individual significance
less thanRMB 0.5 million as account receivable that are individually significant
in amount.
Measurement of impairment If it is objectively evidential that a receivable of individual significance has
allowances for receivables impaired, the impairment loss shall be recognized based on the difference of the
of individual significance book values higher than the present value of future cash flows.
（2）Accounts receivable belong to recognition of impairment allowances by group：
Basis of determination of group
Account’s age group The classified according shall be recognized based on the accounts’age
Method for recognition of impairment allowances by group
Account’s age group Adopt the age analysis method.
Adpt the age analysis method：
age % for accounts receivable % for other receivables
Within 1 year（Incl.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%
（3）Accounts receivable belong to individuall insignificant but individually assessed for impairment：
39
The reason for individually
There is evidence that differences in the receivable are apparently .
assessed for impairment
A receivable which is individually insignificant but the credit riskis high, shoud
Method for recognitionof be individuallt assessed for impairment, the impairment loss shall be recognized
impairment allowances based on the difference of the book values higher than the present value of future
cash flows.
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 partial
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）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.
40
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 that
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
A. According to infection degree of investing enterprise against the invested unit , enlivening market or not, fair
value reliably received or not, separately adopts cost method or equity method to measure.
B. The confirmation of investment profit and loss
Long-term equity investment reckoned via equity method, shall be adjusted in considering the infection of the
following factors under the basis of book net profit of invested unit in confirming the net profit or net deficit
enjoyed or undertook by invested unit.
a. If the accounting policy adopted by invested unit is not accordance with investing unit, adjust according to
accounting policy of investing enterprise and financial reports of invested unit to confirm the profit and loss of
invested unit under the basis.
b. With the fair value of fixed assets, intangible assets of invested unit as basis, the withdrawn depreciation
amount or amortization amount and assets depreciation reserves produced infection upon the invested unit net
profit.
c. The unrealized profit and loss produced from the investing unit and its affiliated enterprise and joint enterprise
shall be compensated. Namely the unrealized profit and loss between investing enterprise and affiliated enterprise
and joint enterprise is calculated and attributes to investing enterprise according to no.8 share ratio, which will be
compensated and investment benefit and loss shall be confirmed under the basis. The trade loss between investing
enterprise and invested unit, attributing to assets depreciation loss, is completely confirmed.
（3）Confirm the basis that has common control and major infection upon invested unit.
A. Common controlling basis:
a. Any join enterprise can not individually control production and operating activities of joint enterprise;
b. The decision making related to basic business operations of joint enterprise shall be agreed by both parties;
c. Every joint-venture enterprises nominate one joint enterprise according to contract or protocol to manage daily
activities of joint-venture enterprise; it must implement management right within the wholly agreed financial and
business policy scope.
B. Major infection basis:
a. Appoint represent in the board of invested unit or similar capability mechanism, enjoy relative actual
participation decision making right, investing enterprise can participate in the constitution of business policy of
the invested unit and realize implementing major infection upon the invested unit.
b. Participate in the policy making of the invested unit including the making of dividend allotment policy. Under
the circumstance, the represent can bring forward suggestion or idea for its own interest and bring large infection
upon the invested unit.
c. Realize important trade with the invested unit. Relative trade affects production operations decision-making of
invested unit at certain degree.
d. Appoint administrative person to the invested unit. Under the condition, appoint administrative person to the
invested unit, the person has right and is responsible for the financial and business activities of the invested unit,
so as to implement import infection on the invested unit.
41
e. Offer key technical documents to the invested unit. Production operations of the invested unit relies upon the
technique or technical document of the investing enterprise, which indicate investing enterprise has major
infection upon the invested unit.
To confirm investing unit has major infection upon the invested unit, one one side, consider the voting power
share that investing unit directly or indirectly hold from the invested unit, one other side, consider the infection
produced by enterprise and other parties holding executable potential voting power presumably transferring into
stock right of invested unit, such as the issued current transferable subscription warrant, stock option and
transferable corporate bond, etc. If these transferred into stock right of invested unit, which can increase the voting
power rate of investing enterprise or decrease the voting power rate of other investors in invested unit, so as to
make investing enterprise joining in the financial and business policy-making of the invested unit, and consider
investing enterprise have large infection upon the invested unit.
（4）Depreciation testing method and depreciation reserve withdrawal method.
On balance sheet date, inspect long-term equity investment, judge long term equity investment has the
depreciation evidence or not. If the depreciation evidence of the operation state of invested unit appears, estimate
its recoverable fund. The measured value of recoverable fund indicates the recoverable fund of long term equity
investment is lower than its book value; deduct the book value of long term equity investment into recoverable
fund. The deducted fund is confirmed to be the loss of assets depreciation and reckoned into benefit and loss at
current period, meanwhile withdrawal relative long term investment depreciation deserve. Once the long term
investment depreciation loss is confirmed, which will not be transferred in the later accounting period.13.
Investment property
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 4%
35 years 2.74%
–Production
House and Building-Non- 4%
40 years 2.40%
Production
---
Fixed assets decoration 10 years 10.00%
4%
Machinery and equipment 10-14 years 9.60%-6.86%
4%
Transportation equipment 8 years 12.00%
4%
Electronic Equipment 8 years 12.00%
4%
Other equipment 8 years 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 value
continuously decreases, or technology is old, damaged or long-term left un-used, draw back amount. The
42
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 for 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.
43
（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.
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:
44
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 lifetime
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.
45
(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.
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
The report mainly reflects accounting policy alteration Unit：RMB
Procedures for
Alteration content and reason of Item name in report forms
examination and Amount affected
accounting policy affected
approval
Non --- --- ---
（2）Alteration of accountant estimation
The report mainly reflects accounting estimation alteration Unit：RMB
Procedures for
Alteration content and reason of Item name in report forms
examination and Amount affected
accounting estimation affected
approval
Non
--- --- ---
26. Former accountant errors correction
（1）Backward restatement method
In the report period, find the error of former accountant via backward restatement method or not. unit:RMB
Approved
Correction content of Report forms name in different comparating Accumulated
disposal
accountant errors periods affected affected quantity
condition
--- --- --- ---
（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 future
errors applicable methods
46
--- --- ---
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%
Providing labor services, real estate sales, the transfer of
Business tax. 3.00%、5.00%
intangible assets
City construction
VAT, sales tax, turnover tax, etc 5.00%、7.00%
tax
Business income
Taxable income 24.00%、15.00%
tax
The company has not the conditions that every branch company or branch plant independently hand in business
income tax，The accrual proportion of city construction tax of the Enterprices in Shenzhen is increasing from 1%
to 7% based on turnover tax on Dec,2010
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 24% in this year.Shenzhen Shengbo Photoelectric Technology CO., Ltd., the
subsidiary company of our company, has been qualified as national hi-tech enterprise since 2010 and it enjoys
reduced business income tax rate at 15% according to new law of enterprise income tax.
IV. Enterprise consolidation and combined financial statements
47
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
After wrote
down current
period loss of
minority
Amount shareholders
Other projects used to over equity
balance Whether write down beginning
Actual capital Holding Proportion Interest of
Full name of Subsidiary Registration Registered essentially consolidation lost share of
Business Business scope amounts of proportion of voting minority
subsidiary type place capital from net of included in minority
the end (%) rights(%) shareholder
investment to report form minority shareholders in
subsidiary shareholder the subsidiary
interest from the parent
company’s
share ,Balance
of Owner's
equity
Fabrics,
Shenzhen bedding,clothing,
Jinlan textiles raw
Fabrics,
Decorative Wholly-owned materials
Shenzhen bedding,clothing 4,000,000.00 4,000,000.00 --- 90.00 100.00 Yes No --- ---
Articles subsidiary processing
nabyfactubg
Industrial manufacturing,
Co., Ltd. wholesale and
retail.
Domestic
commerce,
Shenzhen Domestic materials supply
Lisi Wholly-owned commerce, and sales
Shenzhen 2,360,000.00 2,360,000.00 --- 90.68 100.00 Yes No --- ---
Industrial subsidiary materials supply (excluding
Co., Ltd and sales franchise, special
control, proprietary
products)
Accommodation,
restaurants,
business center;
ticket consignment;
Property
Shenzhen Accommodation,
Wholly-owned Management
Huaqiang Shenzhen restaurants, 10,005,300.00 10,005,300.00 --- 95.00 100.00 Yes No --- ---
subsidiary (required to obtain
Hotal business center
the relevant
qualification
certificate for their
operations)
Shenzhen
Shenfang The Company
Wholly-owned Property
Property Shenzhen 1,604,000.00 property 1,604,000.00 --- 93.75 100.00 Yes No --- ---
subsidiary management
Management management
Co., Ltd.
Shenzhen Production of Production of fully
Wholly-owned
Beauty Shenzhen fully electronic 25,000,000.00 electronic jacquard 25,000,000.00 5,094,300.00 100.00 100.00 Yes No --- ---
subsidiary
Century jacquard knitting knitting whole
48
After wrote
down current
period loss of
minority
Amount shareholders
Other projects used to over equity
balance Whether write down beginning
Actual capital Holding Proportion Interest of
Full name of Subsidiary Registration Registered essentially consolidation lost share of
Business Business scope amounts of proportion of voting minority
subsidiary type place capital from net of included in minority
the end (%) rights(%) shareholder
investment to report form minority shareholders in
subsidiary shareholder the subsidiary
interest from the parent
company’s
share ,Balance
of Owner's
equity
Garment whole shape shape (without
Co., Ltd. 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).
Operating import
Shenzhen and export business
Shenfang Operating import (the specific
Wholly-owned
Import & Shenzhen and export 5,000,000.00 approval by the 5,000,000.00 12,168,680.72 100.00 100.00 Yes No --- ---
subsidiary
Export Co., business relevant import and
Ltd. export business
handled)
Shenzhen
Production and
Zhongxing Spewing
operation of
Fibre Folds acupuncture
Wholly-owned bedding, clothing
Cotton Shenzhen cloth, revision, 1,680,000.00 1,680,000.00 618,769.07 75.00 --- No No --- ---
subsidiary and textiles for
Clothing and fusible
infants and young
Ornament interlining fabric
children.
Co., Ltd.
Shenzhen Control Shenzhen Operating import 1,900,000.00 Textile production 1,900,000.00 686,391.83 50.00 --- No No --- ---
49
After wrote
down current
period loss of
minority
Amount shareholders
Other projects used to over equity
balance Whether write down beginning
Actual capital Holding Proportion Interest of
Full name of Subsidiary Registration Registered essentially consolidation lost share of
Business Business scope amounts of proportion of voting minority
subsidiary type place capital from net of included in minority
the end (%) rights(%) shareholder
investment to report form minority shareholders in
subsidiary shareholder the subsidiary
interest from the parent
company’s
share ,Balance
of Owner's
equity
Tianlong company and export and processing
Industry and business (production site
Trade Co., business license to
Ltd. 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" .
Shengtou
Wholly-owned
(HK) Co., Hongkong Polaroid Sales HKD10000 ---- --- 100.00% 100.00 100.00 Yes No --- ---
subsidiary
Ltd.
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 the parent company actually control 100%; Shenzhen Tianlong Industrial & Trading Co., Ltd, and Shenzhen Zhongxing Fiber Wimple Cotton
Raiment Co., Ltd. had established liquidation group in 2009 and started liquidation procedures, they are in liquidation processing and these two companies will not be
included in consolidation scope since they went into liquidation procedures.
（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
50
After wrote down
current period
Other Amount loss of minority
Whet Inter
projects used to shareholders over
Holdi Propor her est of
Full name Busin balance write down equity beginning
Subsid Registra Actual capital ng tion of conso mino
of ess Registration essentially lost share of minority
iary tion Scope of business amounts of propor voting lidati rity
subsidiary charac capital from net included in shareholders in
tyle Place the end tion rights( on of share
company ter investment minority the subsidiary
(%) %) report holde
to shareholder from the parent
form r
subsidiary interest company’s
share ,Balance of
Owner's equity
Wholesale, manufacturing and
Produ process various specifications
Shenzhen Limite
ction materials and apparatus of
Shengbo d
and polarizer, LCD; import and
Optoelectro Liabili Shenzhe RMB 200 RMB200
sales export business (except projects --- 100 100 Yes No --- ---
nics ty n million million
of inhibited by law, administrative
Technology Comp
polari regulation, State Department),
Co., Ltd any
zer the limited projects shall be
managed with the permission.
51
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. Explanation of alteration of Consolidation scope
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
Year-end balance Year-beginning balance
Items Exchange Exchange
Original currency RMB Original currency RMB
rate rate
I. Cash
RMB 188,551.30 1.00 188,551.30 77,003.08 1.00 77,003.08
HKD 33,387.25 0.84 28,163.62 84,916.75 0.87 73,650.73
USD 9,896.56 6.47 64,030.72 11,414.05 6.59 75,250.73
Japanese Yen 622,550.00 0.08 49,838.86
Subtotal --- --- 331,135.19 --- --- 225,904.54
II.Bank deposit
RMB 447,077,972.79 1.00 447,077,972.79 754,563,743.39 1.00 754,563,743.39
HKD 1,888,845.93 0.84 1,602,985.42 2,729,464.65 0.85 2,322,085.98
USD 782,990.80 6.47 5,065,950.50 1,371,929.52 6.62 9,084,231.32
Japanese Yen --- --- --- 15.00 0.08 1.21
Subtotal --- --- 453,746,908.71 --- --- 765,970,061.9
III. Other capital
RMB 41,728,100.31 1.00 41,728,100.31 53,788,277.96 1.00 53,788,277.96
HKD --- --- --- 381,679.79 6.62 2,527,292.74
USD 39,726,072.00 0.08 3,180,310.42 95,391,286.00 0.08 7,724,500.16
Japanese Yen --- --- 44,908,410.73 --- --- 64,040,070.86
Subtotal 498,986,454.63 830,236,037.30
（1）As of June 31, 2011，Monetary fund has not these conditions such as usage limitation for mortgage, pledge or
frozen fund, stored overseas, with potential recovery risk.
（2）As of June 30, 2011，The fixed-term deposit balance of bank deposit is RMB 207,980,000.00, this part will
not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2. Bill receivable
（1）Classification Bill receivable
Unit：RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 2,107,763.05 ---
52
Total 2,107,763.05 ---
（2）As of June 30, 2011，The company has no notes receivable pledged.
（3）As of June 30, 2011， The company has not the condition that bill transferred into bill of account receivable
for bill drawer has no ability of keeping a promise; the biggest former 5 conditions that the company has endorsed
but unexpired:
Unit：RMB
Bill drawing
Unit of bill drawing Expire date Amount Notes
date
Guangdong Midea Group, Wuhu Refrigeration 2011-05-31 2011-11-30 700,000.00 ---
Equipment Co., Ltd.
Xiamen Kinglong United Autormotive Industry
2011-01-18 2011-07-18 500,000.00 ---
Co., Ltd.
2011-05-17 2011-08-15 ---
Shenzhen Ruifuda LCD Technology Co., Ltd. 313,306.00
2011-04-19 2011-10-19
Anqing Ningcheng Materials Trading Co., Ltd. 300,000.00
China Display Technology Co., Ltd. 2011-04-01 2011-09-30
298,244.02
Total 2,111,550.02
3.Account receivable
（1）Classification Account receivable
Year-end balance
Classification Book balance Provision for bad debts
Amount Proport Amount Proporti
ion(%) on(%)
Receivables with major individual amount and bad
debt provision provided individually
Receivables provided bad debt provision in groups
Account age group
60,541,837.07 93..13 3,092,719.53 5.11
Subtotal of group
60,541,837.07 93.13 3,092,719.53 5.11
Account receivable with minor individual amount but
bad debtprovision is provided 4,463,952.68 6.87 4,443,952.68 99.55
Total
65,005,789.75 100.00 7,536,672.21
Year-beginning balance
Classification Book balance Provision for bad debts
Proport Proporti
Amount Amount
ion(%) on(%)
Receivables with major individual amount and bad
--- --- --- ---
debt provision provided individually
Receivables provided bad debt provision in groups
Account age group 50,755,487.10 93.66 2,607,181.95 5.14
Subtotal of group 50,755,487.10 93.66 2,607,181.95 5.14
Account receivable with minor individual amount but
3,438,415.81 6.34 3,438,415.81 100.00
bad debtprovision is provided
Total 54,193,902.91 100.00 6,045,597.76 ---
53
Category explanation of accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer
accounts receivable with single amount more than 1 million, its provision for impairment will be made based on
specific identification method. For receivables without significant individual amount, after deducting those parts
which had conducted individual impairment test for its obvious difference in collectability with concrete evidence,
making group by aging with character of credit risks and making provision for impairment based on aging
analysis method. The receivables made provision for impairment without significant individual amount refers to
those receivables which has obvious difference in collectability with concrete evidence, its provision will be made
based on specific identification method.
Account receivables using the age analysis method for measurement of impairment allowances：
Year-end balance Year-beginning balance
Book balance Book balance Provision
Age Provision for
Proporti Proporti for bad
Amount bad debts Amount
on（%） on（%） debts
Within 1 year
60,059,598.95 99.20 3,040,639.51 49,703,545.69 97.93 2,413,660.46
1-2 years
482,238.12 0.80 52,080.02 610,304.64 1.20 61,030.46
2-3 years
--- --- --- 441,636.77 0.87 132,491.03
Over 3 years
--- --- --- --- --- ---
Total
60,541,837.07 100.00 3,092,719.53 50,755,487.10 100.00 2,607,181.95
（2） The company has no the conditions that account receivable is withdrew via recombination or other styles.
（3）Separate amount is large at end of period or doubtful accounts reserves of account receivable with separate
value decreasing test:
Provision for bad
Account receivable Book balance Allotment rate Reason
debts
Obvious evidence displaying
Above RMB 1 million 34,168,774.65 2,058,978.63 6.03
depreciation
Below RMB 1 million 4,463,952.68 4,443,952.68 99.55 Unable to recover
Subtotal 38,632,727.33 6,502,931.31
Separate amount is not large, the account receivable with big combination risk after combined via risk character:
Unit ：RMB
Year-end balance Year-beginning balance
Book balance Book balance
Age
Provision for bad Provision for bad
debts debts
Amount Proportion（%） Amount Proportion（%）
Within 1
year --- --- --- --- --- ---
1-2 years
482,238.12 100.00 52,080.02 610,304.64 58.02 61,030.46
2-3 years
--- --- --- 441,636.77 41.98 132,491.03
3-4 years
--- --- --- --- --- ---
Total
482,238.12 100.00 52,080.02 1,051,941.41 100.00 193,521.49
Separate amount is not large, the account receivable with big combination risk after combined via risk character:t
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.
（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.
54
（5）The front 5 units’ information of account receivable
Unit name Percentage of
Relation with Fixed year
Amount account
the company
receivable
Ruli Baolai Photoelectriicity Technology Within 1
Client 9,036,941.76
Co., Ltd. year 13.90%
Within 1
Dongguan Fair LCD Co., Ltd. Client 5,340,905.79 8.22%
year
Within 1
Jiangmen Jidu Semiconductor Co., Ltd. Client 4,949,755.21 7.61%
year
Within 1
Jiangxi Helitai Micro-electronics Co., Ltd. Client 4,536,624.80 6.98%
year
Within 1
Tianma Micro-electronics Co., Ltd. Client 2,717,475.24 4.18%
year
Total 26,581,702.80 40.89%
（6）Account receivable from relation parties
Relation with the Percentage of account
Unit name Amount
company receivable
Shenzhen Investment Holdling Co., Controlling
47,725.00 0.07%
Ltd. shareholders
Total --- 47,725.00 0.07%
4.Other Account receivable
（1）Category of other account receivable:
Year-end balance
Classification Book balance Provision for bad debts
Proporti Proportion
Amount Amount
on（%） （%）
Receivables with major individual amount and bad debt
12,075,436.43 31.29 10,547,991.83 87.35
provision provided individually
Receivables provided bad debt provision in groups
Account age group 25,937,814.16 67.21 1,810,314.46 6.98
Subtotal of group 25,937,814.16 67.21 1,810,314.46 6.98
Account receivable with minor individual amount but bad
577,402.18 1.50 577,402.18 100.00
debtprovision is provided
Total 38,590,652.77 100.00 12,935,708.47
Year-beginning balance
Classification Book balance Provision for bad debts
Proporti Proportion
Amount Amount
on（%） （%）
Receivables with major individual amount and bad debt
15,075,436.43 34.98 10,547,991.83 69.97
provision provided individually
Receivables provided bad debt provision in groups
55
Year-beginning balance
Classification Book balance Provision for bad debts
Proporti Proportion
Amount Amount
on（%） （%）
Account age group 27,444,096.79 63.68 1,956,516.67 7.13
Subtotal of group 27,444,096.79 63.68 1,956,516.67 7.13
Account receivable with minor individual amount but bad
577,402.18 1.34 577,402.18 100.00
debtprovision is provided
Total 43,096,935.40 100.00 13,081,910.68
Category explanation of Other accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer
accounts receivable with single amount more than 0.5 million, its provision for impairment will be made based on
specific identification method. For receivables without significant individual amount, after deducting those parts
which had conducted individual impairment test for its obvious difference in collectability with concrete evidence,
making group by aging with character of credit risks and making provision for impairment based on aging
analysis method. The receivables made provision for impairment without significant individual amount refers to
those receivables which has obvious difference in collectability with concrete evidence, its provision will be made
based on specific identification method.
Separate amount is not large, the account receivable with big combination risk after combined via risk character:
Year-end balance Year-beginning balance
Age Book balance Book balance
Provision for Provision for
Proportion bad debts Proportion bad debts
Amount Amount
（%） （%）
Within 1 year 23,363,460.86 90.07 1,571,502.94 23,867,212.74 86.96 1,228,439.77
1-2 years 1,890,228.57 7.29 164,695.50 1,890,228.57 6.89 164,695.50
2-3 years 589,731.73 2.28 26,919.52 649,731.73 2.37 44,919.52
Over 3 years 94,393.00 0.36 47,196.50 1,036,923.75 3.78 518,461.88
Total 25,937,814.16 100.00 1,810,314.46 27,444,096.79 100.00 1,956,516.67
(2)The company has no the conditions that account receivable is withdrew via recombination or other styles.
(3）Separate amount is large at end of period or doubtful accounts reserves of account receivable with separate
Provision for Allotment
Other Account receivable Book balance Reason
bad debts rate
Above RMB 0.5 million 12,075,436.43 10,547,991.83 87.35 Provision for the estimated recoverable
Below RMB 0.5 million 577,402.18 577,402.18 100% Estimated irrecoverable
Subtotal 12,652,838.61 11,125,394.01
56
Separate amount is not large, the account receivable with big combination risk after combined via risk character:
Year-end balance Year-beginning balance
Age Book balance Book balance
Provision for Provision for
bad debts bad debts
Amount Proportion（%） Amount Proportion（%）
Within 1 year --- --- --- --- --- ---
1-2 years 1,890,228.57 7.29 164,695.50 1,890,228.57 6.89 164,695.50
2-3 years 589,731.73 2.28 26,919.52 649,731.73 2.37 44,919.52
Over 3 years 94,393.00 0.36 47,196.50 1,036,923.75 3.78 518,461.88
Total 2,574,353.30 9.93 238,811.52 3,576,884.05 13.04 728,076.90
Separate amount is not large, the account receivable with big combination risk after combined via risk character:t
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 0.5 million RMB and account age is
over 1 year.
（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）Other account receivable actually cancelled after verification at this reporting period
（6）As of June 20,2011 no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right and
other related units.
(7) The front 5 units’ information of Other account receivable
Percentage of
Fixed year
Unit name Relation with the company Amount account
receivable
Export rebates Non-related parties 18,197,075.10 Within 1 year 47.16%
Jiangxi Xuanli String Company Non-related parties 11,389,044.60 2-3 years 29.51%
Not absorbed into
Anhui Huapeng Textile Company subsidiary company within 2,200,000.00 Within 1 year 5.70%
combination scope
Shenzhen Finance Committee Non-related parties 1,047,437.10 Within 1 year 2.71%
Not absorbed into
Shenzhen Tianglong Industry and trade Co., Ltd. subsidiary company within 686,391.83 Over 3 years 1.78%
combination scope
Total 33,519,948.63 86.86%
（8）Account receivable from Related affiliated parties
Percentage of account
Unit name Relation with the company Amount
receivable
Shenzhen Zhongxing Fibre Not absorbed into subsidiary
618,769.07 1.60%
Folds Cotton Clothing company
57
Ornament Co., Ltd.
Shenzhen Dailisi Knitting
Affiliated enterprise 415,000.00 1.07%
Co., Ltd.
Jordan Garnent Factory Affiliated enterprise 183,906.56 0.48%
Shenzhen Xieli Automobile
Affiliated enterprise 169,262.00 0.44%
Co., Ltd.
Anhui Huapeng Textile Not absorbed into subsidiary
2,200,000.00 5.70%
Company company
Shenzhen Tianglong Industry Not absorbed into subsidiary
686,391.83 1.78%
and trade Co., Ltd. company
Total 4,273,329.46 11.07%
（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
Year-end balance Year-beginning balance
Age
Amount Proportion（%） Amount Proportion（%）
Within 1 year 24,563,617.65 99.88% 4,503,115.81 96.20%
1-2 Years 30,639.36 0.12% 45,449.46 0.97%
2-3 years 84,567.38 1.80%
Over 3 years 47,998.19 1.03%
Total 24,594,257.01 100.00% 4,681,130.84 100.00%
The explanation of major units of Prepayments : The advance payment Increased 425.4% to RMB119.9132
million at the end of the period, compared to the beginning of the period. The increased was due to the advance
payment from the export trading business being transferred to costs at the end of the period.
（2）The front 5 units’ information of Prepayments
Unit：RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
Shenzhen Lianya Textile Co., Ltd. Supplier 19,318,767.40 Within 1 year Not available
Kingdee Software (China) Co., Ltd. Software Supplier 1,297,480.00 Within 1 year Software is not installed
Shenzhen Anhua Computer Equipment is not
Hardware Supplier 794,520.00 Within 1 year
Company acceptance
Guangtai Textile Co., Ltd. Supplier 485,384.02 Within 1 year Not available
Shenzhen Husimeng Textile Co.,
Supplier 316,850.75 Within 1 year Not available
Ltd.
Total -- 22,213,002.17 -- --
58
（3）As of June 30,2011，In the balance of accounts payable, there were no payables to shareholders holding
5.00% (including 5.00%) or more of the voting right of the Company;
6. Interest receivable
（1）Interest receivable
Unit：RMB
Amount at year Increase at this Decrease at this Balance in year
Items
begining period period -end
Interest on
2,203,227.00 3,497,282.06 3,864,169.21 1,836,339.85
deposits
Total 2,203,227.00 3,497,282.06 3,864,169.21 1,836,339.85
（2）This did not occur overdue interest.
7.Inventory
（1）Inventory types
Unit :RMB
Year-end balance Year-beginning balance
Itmes
Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Raw materials 41,433,484.11 3,033,228.52 38,400,255.59 36,612,247.91 2,072,926.19 34,539,321.72
Processing products 12,645,102.69 --- 12,645,102.69 8,694,383.99 --- 8,694,383.99
Stock goods 20,175,329.82 3,354,980.20 16,820,349.62 20,247,735.05 2,902,920.58 17,344,814.47
Commissioned goods 1,598,561.17 1,598,561.17 --- 1,668,104.01 1,598,561.17 69,542.84
Low value
70,468.62 --- 70,468.62 338,707.42 --- 338,707.42
consumable
Total 75,922,946.41 7,986,769.89 60,986,770.44 67,561,178.38 6,574,407.94 60,986,770.44
（2）Allowance for duction of inventory to market
Unit：RMB
Amount Decreased in
Book balance at Amount accounted current period Book balance at
Type
year beginning in current period Transferred period end
Reselling
back
Raw materials 2,072,926.19 1,027,790.58 --- 67,488.25 3,033,228.52
Processing
--- --- --- ---
products
Stock goods 2,902,920.58 651,968.99 --- 199,909.37 3,354,980.20
Commissioned
1,598,561.17 --- --- ---- 1,598,561.17
goods
Low value
--- --- --- --- ---
consumable
Total 6,574,407.94 1,679,759.57 --- 267,397.62 7,986,769.89
（3）Condition of stock value decline
59
Reason of issueing back to Proportion of issueing back
Items Base of stock value decline stock value decline plan of this amount to the the stock
period balance at this period
Raw materials Notes 1 --- ---
Stock goods Notes 1 --- ---
Processing
Notes 1 --- ---
products
Turnover materials Notes 1 --- ---
Consumptive
Notes 1 --- ---
biological assets
Notes1：As of June 30, 2011，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.
8. Disposable financial asset
（1）Financial assets available for sale
Unit：RMB
Items Ending fair value Beginning fair value
Stock investment 79,037,204.81 75,481,853.50
Total 79,037,204.81 75,481,853.50
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: (1)the amount of available for sale assets are held by
Shenzhen Victor Onward Textile Industrial Co., Ltd. shares, * ST Shen Victor Onward A end of the company
holds a total of 9,543,394 shares of the outstanding shares of the highest A share price of 7.25 yuan.(2) the amount
of av ailable for sale assets are held by Guangdong Sunrise Group Co., Ltd.shares, *ST Sunrise A end of the
company holds a total of 1,085,733 shares of the outstanding shares of the highest A share price of 9.07 yuan.
60
9. . Investment to joint venture and united venture
Unit:：RMB
Company vote
Company right
Total business
Corporation Registration Legal Business Registered shareholding percentage in Ending total Ending total Current
Name Ending net assets revenues at this
Type place Representative Nature Capital percentage the invested assets liabilities net profit
period
(%) unittion of
units (%)
I. Joint
venture
Shenzhen
Haohao
Limited 4.754
Property Shenzhen Feng Junbin Service 50.00% 50.00% 6,154,866.12 437,520.80 5,717,345.32 855,197.70 471,094.52
Company million
Leasing Co.
Ltd.
Shenzhen
Xieli Limited 3.12
Shenzhen Ye Yongling Manufacturing 50.00% 50.00% 6,682,263.93 2,168,780.46 4,513,483.47 880,028.00 161,306.18
Automobile Company million
Co., Ltd.
II. Affiliated
enterprise
Shenzhen
Changlianfa
Limited 6.47
Printing & Shenzhen Zhu Meizhu Service 40.25% 40.25% 5,303,750.41 1,029,013.63 4,274,736.78 254,988.00 65,155.72
Company milllion
dyeing
Company
Jordan
Limited USD 1
Garment Jordan Chen Wenxian Manufacturing 35.00% 35.00% USD1,815,831.54 USD795,964.70USD1,019,866.84. USD1,376,607.47 USD-231,688.66
Company million
Factory
Hengshun
（Saipan） Limited USD6.96
Saipan --- Manufacturing 35.00% 35.00% --- --- - --- ---
Industry Co., Company million
Ltd.
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.
Joint ventrue of Shenzhen Trademark Factory Co. Ltd had officially changed the name to Shenzhen Haohao Property Leasing Co. Ltd. on June 28,2011.
10. Long term share equity investment.
(1) Long-term equity investments are listed according to the situation of investment unit :
61
Unit：RMB
Explaination of
diffirence
Sharehold Voting
between
ing right
Accountin Initial investment Ending shareholding Current Cash
Name Original balance change proportion proportion Devalue
g method cost Balance proportion and devalue bonus
in the in the
voting right
investee investee
proportion in
investee
Cost 3.68% 3.68%
---
Shenzhen Jintian Industry Co., Ltd. method 14,831,681.50 14,831,681.50 --- 14,831,681.50 14,831,681.50 --- ---
Shenzhen Haohao Property Leasing Equity -164,844.57 50.00% 50.00%
---
Co. Ltd. method 2,040,102.73 3,445,862.19 3,281,017.62 --- --- 400,000.00
Equity 100,745.09 50.00% 50.00%
---
Shenzhen Xieli Automobile Co., Ltd. method 1,529,483.67 2,422,651.65 2,523,396.74 266,654.99 --- ---
Shenzhen Changlianfa Printing and Equity 26,225.18 40.25% 40.25%
---
dyeing Company method 2,524,500.00 1,694,356.38 1,720,581.55 --- --- ---
Equity -264,671.82 35.00% 35.00%
---
Jordan Garnent Factory method 7,240,625.00 2,574,160.27 2,309,488.46 --- --- ---
Equity 35.00% 35.00%
Hengshun（Saipan）Industry Co., Ltd. ---
method 8,228,350.00 --- --- --- --- --- ---
Cost
10.80% 10.80% ---
Shenzhen Jiafeng Textile Co., ltd. method 16,800,000.00 16,800,000.00 --- 16,800,000.00 16,800,000.00 --- ---
Shenzhen Guanhua Prnting & dyeing Cost
45.00% 45.00% ---
Co., Ltd. method 5,491,288.71 5,491,288.71 --- 5,491,288.71 5,058,307.01 --- ---
Shenzhen Union Development Group Cost
2.87% 2.87% ---
Co., Ltd. method 2,600,000.00 2,600,000.00 --- 2,600,000.00 --- --- ---
Cost
20.00% 20.00% ---
Shenzhen Xiangjiang Trade Co., Ltd. method 160,000.00 160,000.00 --- 160,000.00 --- --- 65,634.56
Cost
20.00% 20.00% ---
Shenzhen Xinfang Knitting Co., Ltd. method 524,000.00 524,000.00 --- 524,000.00 --- --- ---
Hongkong Yehui International Co., Cost
17.85% 17.85% ---
Ltd. method 2,392,914.37 2,392,914.37 --- 2,392,914.37 --- --- ---
operate and
Cost 30.00% --- contracted by the
Shenzhen Dailisi Knitting Co., Ltd. method 532,062.50 2,559,856.26 --- 2,559,856.26 third party --- --- 850,000.00
operate and
Cost 50.00% --- contracted by the
Anhu Huapeng Textile Co., Ltd. method 25,000,000.00 25,410,209.50 --- 25,410,209.50 third party --- --- 500,000.00
Cost
---
Shenzhen South Textile Co., Ltd. method 1,500,000.00 1,500,000.00 --- 1,500,000.00 9.80% 9.80% --- --- ---
Cost
---
Shenzhen Tongyi Silk Floss Co., Ltd. method 1,800,000.00 1,800,000.00 --- 1,800,000.00 18.00% 18.00% --- --- 541,941.63
Shenzhen Zhongxing Fibre Folds Cost The company is
Cotton Clothing Ornament Co., Ltd. method 1,460,000.00 1,460,000.00 --- 1,460,000.00 100.00% --- being liquidating 1,460,000.00 --- ---
Total -- 94,655,008.48 85,666,980.83 -302,546.12 85,364,434.71 --- --- 38,416,643.50 --- 2,357,576.19
（2）During the reporting period, the company is not limited to transfer funds to the Investment Company limited circumstances.
（3）The company has no long-term equity investment of limited sales condtion in the end.
62
11.Investment real estate
（1）Measured by the cost of investment in real estate
Unit：RMB
Book amount at Increase at this Decrease at this Book balance in
Items
year begining period period year -end
1. Total original price 258,166,738.75 108,726.21 --- 258,275,464.96
1.House, Building 258,166,738.75 108,726.21 --- 258,275,464.96
2.Land use right --- --- --- ---
II.Total accumulated depreciation
89,898,215.91 3,466,504.87 --- 93,364,720.78
accumulated amortization
1.House, Building 89,898,215.91 3,466,504.87 --- 93,364,720.78
2.Land use right --- --- --- ---
III. Total book value of investment real
168,268,522.84 164,910,744.18
estate
1.House, Building 168,268,522.84 164,910,744.18
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
168,268,522.84 164,910,744.18
estate
1.House, Building 168,268,522.84 164,910,744.18
2.Land use right --- ---
Current amount of depreciation and amortization is RMB 3,466,504.87 .
Current investment Property devalue plan amount is RMB 0.00.
The company has no fair value measurement of investment real estate.
12. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at year Increase at this Decrease at this period Book balance in
begining period year -end
1. Total original price 271,932,726.98 1,474,454.60 351,214.00 273,055,967.58
Including: House ,
Building 109,707,395.31 599,100.86 --- 110,306,496.17
Machinery equipment
145,158,482.07 113,756.41 --- 145,272,238.48
63
Items Book amount at year Increase at this Decrease at this period Book balance in
begining period year -end
Transportations
4,159,605.00 196,326.00 346,800.00 4,009,131.00
Electronic and Other
12,907,244.60 565,271.33 4,414.00 13,468,101.93
II. Total of
accumulative
depreciation 105,074,108.74 7,788,970.93 255,177.74 112,607,901.93
Including: House ,
Building 33,980,801.44 2,155,287.43 --- 36,136,088.87
Machinery equipment
62,101,656.75 4,870,195.28 --- 66,971,852.03
Transportations
1,628,391.51 163,268.05 250,852.02 1,540,807.54
Electronic and Other
7,363,259.04 600,220.17 4,325.72 7,959,153.49
III. Total book value of
Fixed assets 166,858,618.24 --- --- 160,448,065.65
Including: House ,
Building 75,726,593.87 --- --- 74,170,407.30
Machinery equipment
83,056,825.32 --- --- 78,300,386.45
Transportations
2,531,213.49 --- --- 2,468,323.46
Electronic and Other
5,543,985.56 --- --- 5,508,948.44
IV. Total of Devalued
Provision 376,001.12 --- 70,200.00 305,801.12
Including: House ,
Building --- --- --- ---
Machinery equipment
--- --- --- ---
Transportations
376,001.12 --- 70,200.00 305,801.12
Electronic and Other
--- --- --- ---
V. Total book value of
Fixed assets 166,482,617.12 --- --- 160,142,264.53
Including: House ,
Building 75,726,593.87 --- --- 74,170,407.30
Machinery equipment
83,056,825.32 --- --- 78,300,386.45
Transportations
2,155,212.37 --- --- 2,162,522.34
Electronic and Other
5,543,985.56 --- --- 5,508,948.44
(2) Current depreciation is RMB 7,788,970.93 .
(3) The issue of fixed assets transferred from construction in progress original price is RMB 246,450.00.
(4)As of June 30,2011，The company has no temporary situation of idle fixed assets.
(5)As of June 30,2011，The company has no lease by financing the fixed assets of the situation.
64
（6）As of June 30,2011，The fixed assets leased through operating leases.
13.Project under construction
（1）Project under construction
Unit：RMB
Year-end balance Year-beginning balance
Items Provision Provision
Book Net Book Net
Book balance for Book balance for
value value
devaluation devaluation
TFT-LCD polarizing
451,907,752.42 --- 451,907,752.42 155,153,044.31 --- 155,153,044.31
film I project
Guanhua Building
2,006,624.19 --- 2,006,624.19 --- --- ---
project
157,782.00 --- 157,782.00 107,900.00 --- 107,900.00
Other
454,072,158.61 --- 454,072,158.61 155,260,944.31 --- 155,260,944.31
Total
65
（2）Significant changes in projects of construction-in-progress
Unit：RMB
Thereinto:
Project
Accumulated amount of Current Interest
Amount at year Increase at this Transferred to Other investment Project Capital Amount at year
Name Budget amount of interest Current capitalization
begining period fixed assets reduction proportion of the progress source end
capitalized Interest rate
budget
capitalized
TFT-LCD 92640 Self-
polarizing film 155,153,044.31 296,754,708.11 --- -- 32% 49% 2,962,393.65 2,186,064.53 --- 451,907,752.42
万 Financing
I project
Total --- 155,153,044.31 296,754,708.11 --- -- 2,962,393.65 2,186,064.53 --- 451,907,752.42
Notes: According to the resolutions of the 7th meeting of the fifth board of directors held on December 7, 2010, the total investment in phase-I project of polarizer sheet for
TFT-LCD was adjusted from RMB 849.37 million to RMB 926.40 million(Refer to No. 2010-47 Announcement of the Company for details).
(3) Devalue plan of Construction in progress
Unit：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 49% ---
66
14. Intangible assets
（1）Intangible assets
Unit：RMB
Book Balance in Increase at this Decrease at Book Balance in
Items
year-begin period this period year-end
1. Total original price 60,590,330.50 --- --- 60,590,330.50
Land Use right 48,765,130.50 --- --- 48,765,130.50
Proprietary technology 11,825,200.00 --- --- 11,825,200.00
II. Total amount of accumulated 11,947,899.33 1,036,863.64 --- 12,984,762.97
Land Use right 3,276,299.33 642,663.64 --- 3,918,962.97
Proprietary technology 8,671,600.00 394,200.00 --- 9,065,800.00
IV. Book value of intangible assets 48,642,431.17 47,605,567.53
Land Use right 45,488,831.17 44,846,167.53
Proprietary technology 3,153,600.00 2,759,400.00
IV.Total value of provision for
--- ---
impairment
Land Use right --- ---
Proprietary technology --- ---
V. Total Book value of intangible
48,642,431.17 47,605,567.53
assets
Land Use right 45,488,831.17 44,846,167.53
Proprietary technology 3,153,600.00 2,759,400.00
(2) The amortization amount is RMB 1,036,863.64 .
（3）The current expenditure on non-development projects
15.Goodwill
Unit：RMB
Increase Decrease Ending
Name of the investee or the matter Balance in Book Balance
at this at this devalue
of forming Goodwill year-begin in year-end
period period provision
Shenzhen Beauty Century
2,167,431.21 2,167,431.21 2,167,431.21
Garment Co., Ltd.
Shenzhen Shenfang Import and
82,156.61 82,156.61 82,156.61
Export Co., Ltd.
Shenzhen ShengBo Ophotoelectric
9,614,758.55 9,614,758.55 ---
Technology Co., Ltd
Total 11,864,346.37 11,864,346.37 2,249,587.82
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.
16. Long-term amortization expenses
Unit ：RMB
67
Amount of
Balance in Increase at this Other Balance in
Items amortization at Other
year-begin period Decrease year end
current period
Renovation costs 640,987.98 308,412.90 77,224.80 --- 872,176.08 ---
Other 256,770.00 --- 16,990.82 --- 239,779.18 ---
Total 897,757.98 308,412.90 94,215.62 --- 1,111,955.26 ---
17. 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 7,353,495.75 6,810,736.28
Unattained internal sales profits 441,843.88 441,843.88
Total 7,795,339.63 7,252,580.16
Deferred income tax liability
Increase and decrease of fair value of available-for-sale
13,927,636.24 15,334,016.79
financial assets
Assessed tax-free periods of time caused by differences in
112,086.72 112,086.72
income
Total 14,039,722.96 15,446,103.51
（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 20,472,380.68
Provision for devaluationof fexed assets 305,801.12
rovision for falling price of inventory 7,986,769.89
Impairment of long-term equity investments 5,227,896.65
Increase and decrease of fair value of available-for-sale
58,031,817.67
financial assets
Assessed tax-free periods of time caused by differences
467,028.00
in income
Unattained internal sales profits 2,945,625.84
Total 95,437,319.85
68
18. Impairment of assets
Unit：RMB
Decrease at this period
Book balance Increase at Book balance
Items Withdrawal
Year-beginning this period Year-end
aount in Transfer in Transfer-out
this
I.Provision for bad
19,127,508.44 1,344,872.24 --- --- ---- 20,472,380.68
debts
II. Provision for
falling price of 6,574,407.94 1,679,759.57 --- 267,397.62 --- 7,986,769.89
inventory
III. Provision for
devaluationof fexed 376,001.12 --- -- 70,200.00 --- 305,801.12
assets
IV. Provision for
devaluation of
38,416,643.50 --- --- --- --- 38,416,643.50
Long-term equity
investment
V. Goodwill 2,249,587.82 --- --- --- --- 2,249,587.82
Total 66,744,148.82 3,024,631.81 --- 337,597.62 --- 69,431,183.01
19. Short-term borrowings
（1）Short-term borrowings
Unit : RMB
Year-end balance Year-beginning balance
Items Currency
Amount of Transferred to Amount of Transferred to
original currency RMB original currency RMB
Mortgage loan RMB --- --- 2,000,000.00 2,000,000.00
Total --- --- --- 2,000,000.00
Description of short-term loans classifications: The short-term loans are classified by loans.
（2）There are no expired outstanding short-term borrowings at the end of the reporting period.
20. Account payable
（1）Accounts payable by item class. Unit：RMB
Items Year-end balance Year-beginning balance
Within 1 year 26,451,660.61 25,820,167.05
1-2 years 6,934,803.51 5,856,108.52
2-3 years 151,568.36 374,033.42
3-4 years 12,737.13 351,694.84
4-5 years --- 466,223.57
Over 5 years 561,446.97 230,304.64
Total 34,112,216.58 33,098,532.04
（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;
69
21. Received in advance
Unit: RMB
Items Year-end balance Year-beginning balance
Within 1 year 34,920,576.37 13,231,071.92
1-2 years 12,600.00 46,227.70
2-3 years 244,913.60 639,024.58
3-4 years 449,009.61 -
4-5 years --- 100.00
Over 5 years --- 5,704.00
Total 35,627,099.58 13,922,128.20
（2）As of June 30, 2011，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 increase of received in advance is comparatively large because of the increase of the export trade orders
for year-end.
（4）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.
22. Employee salary of payable
Unit :RMB
Book Balance Increase in the Decrease in the Book Balance
Items
in year-begin current period current period in year-end
1.Wages, bonuses, allowances and
17,009,475.59 28,108,234.11 30,278,649.48 14,839,060.22
subsidies
2.Employee welfare --- 2,208,053.59 2,208,053.59 ---
3. ocial insurance premiums 107,943.44 2,555,423.82 2,486,215.38 177,151.88
Of Which: medical insurance 19,063.87 211,059.15 230,123.02 ---
Basic old-age insurance premiums 43,317.27 2,134,386.97 2,000,552.36 177,151.88
Pension Payment 38,829.56 108,585.97 147,415.53 ---
Unemployment insurance 1,276.61 29,691.50 30,968.11 ---
Work injury insurance 1,192.19 16,822.85 18,015.04 ---
Maternity insurance 2,191.44 38,175.86 40,367.30 ---
Personal accident insurance 2,072.50 16,701.52 18,774.02 ---
IV. Public reserves for housing 2,558,516.71 546,915.78 1,094,512.85 2,010,919.64
V. Union funds and staff education
918,497.23 838,506.59 656,829.40 1,100,174.42
fee
VI. Non-monetary welfare --- --- --- ---
VII. Compensation for cancellation
--- --- --- ---
of labor relations
VIII. Other 191,012.00 89,001.74 98,920.88 181,092.86
Of which: equity payment by cash
--- --- --- ---
settlement
Total 20,785,444.97 34,346,135.63 36,823,181.58 18,308,399.02
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 1,100,174.42, the amounts of
non-monetary benefits are RMB 0.00, and the compensations for the lifting of labor relations are RMB 0.00 .
23. Tax Payable
Unit：RMB
Items Year-end balance Year-beginning balance
VAT -33,277,142.04 996,409.59
Consumption tax --- ---
70
Business Tax 477,510.83 513,473.67
City Construction tax 10,066.86 110,020.56
Enterprise Income tax 5,081,759.29 1,817,811.73
Individual Income tax 626,521.24 313,222.27
House property Tax 31,915.71 69,926.27
Surcharge for education 34,797.77 61,160.32
Other 13,143.31 129658.98
Total -27,001,427.03 4,011,683.39
Taxes payable description: The subsidiary and branch of the company have no taxable income transfers of each
other.
24. Interest Payable
Unit：RMB
Items Year-end balance Year-beginning balance
Long-term loans interest of installment
and interest charge 2,298,867.02 154,092.20
Total 2,298,867.02 154,092.20
25.Other Payable
（1）Other payables by item class Unit：RMB
Age Year-end balance Year-beginning balance
Within 1 year 9,266,067.11 4,312,385.27
1-2 years 5,698,639.11 7,714,871.00
2-3 years 1,140,383.74 6,898,173.26
3-4 years 3,785,387.46 3,088,611.17
4-5 years 9,668,441.97 8,998,702.32
Over 5 years 20,072,622.51 16,746,352.12
Total 49,631,541.90 47,759,095.14
（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 Non-current liability due within one year
（1）Classifications unit：RMB
Items Year-end balance Year-beginning balance
Long-term loan due within one -- 21,000,000.00
year
Total --- 21,000,000.00
2. Long-term loan due within one year
Unit：RMB
Items Year-end balance Year-beginning balance
Mortgage loan --- 21,000,000.00
Total --- 21,000,000.00
27. Long-Term borrowings
（1）Long-term borrowing
Unit:RMB
Items Currency Year-end balance Year-beginning balance
Amount of Transferred to Amount of Transferred to
original currency RMB original currency RMB
Guarantee loan RMB 96,719,008.30 96,719,008.30 96,719,008.30 96,719,008.30
Total 96,719,008.30 96,719,008.30 96,719,008.30 96,719,008.30
As regards long-term loans classifications: Long-term loans are classified by loans.
（2）The top five of long-term loans
71
Unit：RMB
Year-end balance Year-beginning balance
Loans Loans ending Interest
Loan unit Currency Amount of Amount of Amount of Amount of
starting date date rate (%)
original currency RMB Foreign currency RMB
Shenzhen
Development 2010.12.29 2015.06.24 RMB 4.65% 21,372,872.00 21,372,872.00 21,372,872.00 21,372,872.00
Bank
Shenzhen
Development 2010-6-24 2015.06.24 RMB 4.65% 1,553,666.34 1,553,666.34 1,553,666.34 1,553,666.34
Bank
Shenzhen
Development 2010-10-9 2015.06.24 RMB 4.65% 5,248,255.00 5,248,255.00 5,248,255.00 5,248,255.00
Bank
Shenzhen
Development 2010-11-25 2015.06.24 RMB 4.65% 21,225,294.00 21,225,294.00 21,225,294.00 21,225,294.00
Bank
Shenzhen
Development 2010-07-14 2015-6-24 RMB 4.65% 21,047,897.96 21,047,897.96 21,047,897.96 21,047,897.96
Bank
Shenzhen
Development 2010-11-09 2015-06.-24 RMB 4.65% 18,088,119.00 18,088,119.00 18,088,119.00 18,088,119.00
Bank
Shenzhen
Development 2010-08-30 2015-06-24 RMB 4.65% 8,182,904.00 8,182,904.00 8,182,904.00 8,182,904.00
Bank
Total -- -- 96,719,008.30 96,719,008.30 96,719,008.30 96,719,008.30
There is no long term loan formed by overdue loan extension in the end of period.All final long-term loans are the
loans issued to our company from Shenzhen Development Bank Co , Ltd which was entrusted by entrust lender
Shenzhen Shenchao Technology Investment Corporation.
28. Other Non-current liabilities
Unit ：RMB
Items Book balance year-end Book balance Year-beginning
Deferred profits 52,806,595.67 54,556,985.69
Total 52,806,595.67 54,556,985.69
As regards 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 1,714,285.72 .
(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”. Our company will use 10 years as asset depreciation period for amortization in current period.The
non-operating income in current period is RMB 100,000.00 and the balance amount of unfinished final
amortization is RMB 1,700,000.00.
(3) According to the document of the Office of the State Development and Reform Commission on "The Office of
the State Development and Reform Commission on the Reply of New Flat-Panel Display Industrialization Special
Project” (Development and Reform Office High-Tech【2008】No. 2104), the company obtained the state subsidies
RMB 10 million yuan from the State Development and Reform Commission New Flat-Panel Display
Industrialization Special Project for the construction of “The Project of Polaripiece Industrialization for
TFT-LCD”. On June 29, 2009, the company received the special subsidies of State Development and Reform
72
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
allocated by Shenzhen City Bureau of Finance. On April 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.
Our company will use 10 years as asset depreciation period for amortization in current period.The non-operating
income in current period is RMB 500,000.00 and the balance amount of unfinished final amortization is RMB
8,500,000.00.
(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”.
（5）Company received RMB 800,000.00 of technology development fund key subsidies issued by Futian science
and technology bureau in current period, project to be inspected.
(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.Our company will use 10 years as asset depreciation period for
amortization in current period.The non-operating income in current period is RMB 49,600.02 and the balance
amount of unfinished final amortization is RMB 1,693,199.95.
（7）The Company received R&D subsidy of RMB 39.5499 million from the government according to Shen Cai
Jian (2010) No. 101 Document - Circular of Plan for Use of Special Funds for the 14th Group of Significant
High-tech Projects in 2010. The Company plans to invest these funds in R&D in five years from 2011.
Non-operating income recognized in current period was RMB 3,954,990. At the end of period, the balance to be
amortized was RMB 35,594,910.00.
（8）According to Shen State-owned Assets Bureau (2010) No. 270 Document, the Company obtained fund of
RMB 1,800,000.00 for supporting an excellent project of independent innovation from Shenzhen State-owned
Assets Bureau for phase-I project of polarizer sheet for TFT-LCD.
29.Stock capital
Unit：RMB
Increase/decrease this time (+ , - )
Balance Transferred
Issuing of Bonus Balance year-end
Year-beginning from Other Subtotal
new share shares
reserves
Total of 336,521,849.00 --- --- --- --- --- 336,521,849.00
capital
shares
30. Capital reservesUnit：RMB
Year-beginning Increasein the Decrease in the
Items Year-end balance
balance current period current period
Share premium 782,656,413.49 --- --- 782,656,413.49
Other 57,140,701.64 5,029,896.69 9,682,285.14 52,488,313.19
Total 839,797,115.13 5,029,896.69 9,682,285.14 835,144,726.68
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.
31. Surplus reserve
73
Unit：RMB
Year-beginning Increasein the current Decrease in the
Items Year-end balance
balance period current period
Statutory surplus
34,086,443.10 --- --- 34,086,443.10
reserve
Total 34,086,443.10 --- --- 34,086,443.10
32. Retained profits
Unit：RMB
Extraction or distribution of the
Intes Amount
proportion
Before adjustrments: Retained profits at the
135,563,817.74 --
period end
Adjustments:Total retained profits at the period
beginning --- --
（+，-）
After adjustments:Retained profits at the period
135,563,817.74 --
beginning
Add ： Net profit belonging to the owner of the
32,363,976.69 --
parent company
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 167,927,794.43 ---
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected
beginning undistributed profits are RMB 0.00.
(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.
(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .
(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits
are RMB 0.00.
(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
33.Business income, Business cost
（1）Business income
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 317,350,237.28
320,584,739.41
Other Business income 1,832,480.47
1,784,397.33
Total 319,182,717.75
322,369,136.74
74
Cost from Business cost 259,354,271.44
271,389,704.25
Other Business cost 1,818,301.73
1,743,091.46
Total 261,172,573.17
273,132,795.71
（2）Main business（Industry）
Unit:：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic and foreign
133,615,874.79 132,959,760.68 156,603,026.79 155,998,551.52
trade
Manufacturing 148,809,678.11 116,692,159.71 129,343,423.14 107,486,669.30
Property management,
34,924,684.38 9,702,351.05 34,638,289.48 7,904,483.43
leasing
Total 317,350,237.28 259,354,271.44 320,584,739.41 271,389,704.25
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Preperty and rental
34,924,684.38 9,702,351.05 34,638,289.48 7,904,483.43
income
Textile income 36,470,974.48 28,463,448.04 23,277,796.52 20,397,678.91
Polaroid income 112,338,703.63 88,228,711.67 106,065,626.62 87,088,990.39
Trade income 133,615,874.79 132,959,760.68 156,603,026.79 155,998,551.52
Total 317,350,237.28 259,354,271.44 320,584,739.41 271,389,704.25
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 134,589,767.03 88,019,534.85 104,234,369.96 66,469,175.30
Oversea 182,760,470.25 171,334,736.59 216,350,369.45 204,920,528.95
Total 317,350,237.28 259,354,271.44 320,584,739.41 271,389,704.25
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Shenzhen Lianya Textile Co., Ltd 133,022,265.35 41.92%
CHORICO.,LTD 15,164,890.10 4.78
Jinsitai Investment Development Co., Ltd. 11,514,689.06 3.63%
75
Jiangmen Yidu Semiconductor Co., Ltd. 8,163,119.79 2.57%
Ruili Baolai Optoelectronics Technolog
8,152,200.71 2.57%
Co.,Ltd.
Total 176,017,165.01 55.47%
34.Business taxes and surcharges
Unit：RMB
Amount of current period Amount of previous
Items Project payment standard
period
Business tax 1,948,592.33 1,843,811.84 Notes III.1
City construction tax 365,136.39 66,258.90 Notes III.1
Education surcharge 155,820.13 198,916.16 Notes III.1
Embankment fee 1,748.13 1,481.94 Notes III.1
Real estate Tex 825,326.71 783,872.67 Notes III.1
Other 256,457.36 259,032.65 Notes III.1
Total 3,553,081.05 3,153,374.16
35.Sales expenses
Items Amount of current period Amount of previous period
Wage 704,667.44 595,492.33
Sample and Depreciation expenses 31,992.00 21,872.75
Exhibition fee 179,443.00 177,040.00
Sales service charges 974,548.70 186,045.17
Entertainment expenses 318,326.61 185,995.40
Transportation changes 1,049,227.40 588,990.96
Other 186,569.29 60,164.26
Total 3,444,774.44 1,815,600.87
36.Administrative expenses
Items Amount of current period Amount of previous period
Wage 16,296,271.25 12,174,051.37
Taxes 483,126.01 512,420.55
Insurance expenses 257,120.07 259,069.75
Depreciation of fixed assets 1,713,332.30 2,045,271.58
Amortization of intangible assets 1,036,864.00 589,167.00
Amortization of long-term deferred
34,490.82 34,490.82
expenses
R& D costs 5,941,692.56 5,686,023.03
Postal fees 118,690.05 172,764.54
Office expenses 818,480.65 1,187,615.77
Repairs fees 299,042.50 25,186.00
Water and electricity 298,723.82 269,812.00
Auto expenses 331,881.00 476,268.00
Travel Expenses 446,117.79 489,066.45
Audit expenses and assessment
402,123.00 581,850.00
expenses
Entertatnment expenses 696,768.10 843,278.50
Low consumables amortization 99,929.00 200,736.50
Lawsuit expenses 275,602.00 4,767.00
Listing fees 262,136.00 121,300.00
Other 841,974.15 730,488.70
Management fee 30,654,365.07 26,403,627.56
76
37. Financial expenses
Items Amount of current period Amount of previous period
Interest expenses 542,726.95 4,048,416.10
Interest income -6,046,917.50 -2,079,874.51
Exchange loss 997,475.69 75,813.06
Exchange gain --- -59,951.38
Discount interest - -
Fees and other 162,953.72 191,185.92
Total -4,343,761.14 2,175,589.19
38. .Loss of assets impairment
Unit：RMB
Items Amount of current period Amount of previous period
I .Losses for bad debts 1,344,872.24 1,409,333.66
II. Losses for falling price of 1,679,759.57
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 3,024,631.81 1,527,851.58
39.Investment Income
（1）Investment income
Unit：RMB
Amount of current Amount of previous
Items
period period
Incomes from disposal of Long-term cost investment 1,922,576.19 1,895,403.30
Incomes from disposal of long-term equity investment 97,453.88 979,077.02
Investment income from financial assets sales 1,482,128.46 9,009,386.30
Deal income from futures investment ---
Stock right disposal benefit ---
Total 3,502,158.53 11,883,866.62
（2）Long term equity investment calculated via equity method：
Unit：RMB
Name Amount of current Amount of previous Cbange cause
period period
Shenzhen Haohao Property ---
Leasing Co. Ltd. 235,155.43 197,933.49
Shenzhen Xieli Automobile Co., ---
Ltd. 100,745.09 -197,985.46
Shenzhen Changlianfa Printing ---
and dyeing Company 26,225.18 14,822.80
Jordan Garment Factory -264,671.82 964,306.19 Notes 1
Total 97,453.88 979,077.02
Notes 1. Jordan Garment Factory with the economic recovery of peripheral area, its profit grows better.
Notes 2. In the report period, the company has no big restriction on the investment earning repatriation.
40.Non-operating income
（1）Classification of items about unrelated business income
Unit: RMB
Items Amount of Amount of The amount of Cause
77
current period previous period non-operating
gains & lossed
Total income from 52,994.00 --- 52,994.00
liquidation of non-current
assets
Including：Income from 52,994.00 --- 52,994.00
liquidation of fixed asset
Income of the sale of --- --- ---
intangible assets
Government Subsidy 4,690,090.02 4,982,567.16 4,690,090.02
Other 10,876,329.05 --- 10,876,329.05 注1
Total 15,619,413.07 4,982,567.16 15,619,413.07
Notes (1): Mainly due to receipt of 1,085,733 A shares of Guangdong Sunrise Group Co., Ltd. (the market value
of these shares was RMB 9,847,598.31 according to the closing price of A shares of * ST Sunrise on May 17,
2010 (the last trading day before suspension of listing), i.e., RMB 9.07 per share) and cash of RMB 702,694.14
(RMB 10,550,292.45 in total as recognized non-operating income) according to (2010) Shen Zhong Fa Min Qi
Zhong Zhen Zi No. 5-5 Civil Award and the Plan for Reorganization of Guangdong Sunrise Group Co., Ltd and
also the receipt of compensation of RMB 315,936.60 for subway construction.
（2）Governmental subsidy list
Items Amount of current Amount of previous Notes
period period
Guangdong Trade Meeting support fund of Futian ---
Chamber of Commerce 85,500 ---
The subsidies from Shenzhen Development and Reform --- ---
Commission Government R & D 3,954,990.00
The subsidy from Futian district government (Canton fair) --- 116,000.00 ---
Topic subsidies of “Engineering technology development --- 4,216,967.15 ---
on polarizer for TFT-LCD ”
he counterpart funds for technology industrialization 100,000.00 100,000.00 ---
demonstration project
The national subsidy for the industrialization of new type 500,000.00 500,000.00 ---
flat-panel display device special project
The loan interest allocated by Shenzhen Finance Bureau 49,600.02 49,600.01 ---
Total 4,690,090.02 4,982,567.16
41. Non-operating expenses
Unit：RMB
Items Amount of current Amount of previous Recognized into current
period period reporting period
extraordinary profits or
lossesGovernment
Total Disposal of loss of --- ---
non-current assets ---
Including：Disposal of net loss of --- ---
fixed assets ---
Disposal of loss of
--- --- ---
Intangibles assets
Donation expenses --- --- ---
Fine expenses --- --- ---
Other expenses 1,890.28 1,107.68 1,890.28
Total 1,890.28 1,107.68 1,890.28
42. .Income tax expenses
Unit：RMB
78
Items Amount of current period Amount of previous period
Income tax at current period according to
taxation and related regulation 8,975,517.45 5,599,270.19
Adjustment Deferred income tax -542,759.47 567,850.88
Total 8,432,757.98 6,167,121.07
43. 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 on January-June 2011=32,363,976.69
/336,521,849=0.10 RMB/shares
Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses On
January-June 2011= 18,953,108.64 /336,521,849=0.06 RMB/shares.
Dilute earning per share belonging to common stock shareholder On January-June 2011= 32,363,976.69
/336,521,849=0.10 RMB/share
Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses on
January –June 2011= 18,953,108.64 /336,521,849=0.06 RMB/shares.
44. Other comprehensive income
Unit：RMB
Items Amount of current Amount of previous
period period
1.Loss amount produced by sellable financial assets
-6,058,769.00 -29,671,389.46
Less：Deduct: income tax infection produced by sellable
financial assets -1,406,380.55 -6,534,833.42
Net amount transferred into profit and loss at current period that
reckoned into other comprehensive income at former period --- ---
Subtotal -4,652,388.45 -23,136,556.04
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
Subtotal --- ---
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 -4,652,388.45 -23,136,556.04
79
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.
45.Cash flow statement Notes
（1）Cash received related to other operating activities
Unit：RMB
Items Amount of current period Amount of previous period
Xuanli Company's debt funds
implementation 3,000,000.00 ---
Restucturing plan for Guangdong
Sunrise Company
702,694.14 ---
Summary of other scattered incomes 3,487,042.96 900,678.20
Total 7,189,737.10 900,678.20
（2） Cash paid related to other operating activities
Unit：RMB
Items Amount of current period Amount of previous period
Research & development expenses 5,941,692.56 5,686,023.03
Postal fees 118,690.05 172,764.54
Office expenses 818,480.65 1,187,615.77
Auto Expenses 331,881.00 476,268.00
Travel fee 446,117.79 489,066.45
Audit and assessment fee 402,123.00 581,850.00
Entertainment expenses 1,015,094.71 1,029,273.90
Transportation expnses 1,049,227.40 588,990.96
Lawsuit fee 275,602.00 4,767.00
Other 7,442,295.93 6,871,572.43
Total 17,841,205.09 17,088,192.08
（3）Cash received related to financing activities
Unit：RMB
Items Year 2010 Year 2009
Interest income 4,069,393.25 ---
Transferred out of fixed deposit 204,569,442.50 ---
Total 208,638,835.75 ---
（4）Cash paid related to other investment activities
Unit：RMB
Items Amount of current period Amount of previous period
Government subsidy 2,850,000.00 2,300,000.00
Total 2,850,000.00 2,300,000.00
46. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Unit：RMB
Supplement Information Amount of current Amount of
period previous period
I. Adjusting net profit to cash flow from operating activities
Net profit 32,363,976..69 24,858,502.70
Add: Impairment loss provision of assets 3,024,631.81 1,527,851.58
80
Supplement Information Amount of current Amount of
period previous period
Depreciation of fixed assets, oil and gas assets and consumable 11,255,475.80 11,075,406.34
biological assets
1,036,863.64 589,167.64
Amortization of intangible assets
94,215.62 164,971.28
Amortization of Long-term deferred expenses
Loss on disposal of fixed assets, intangible assets and other long-term -52,994.00 ---
deferred assets
--- ---
Loss from Fixed assets Discard
--- ---
Loss of fair value fluctuation on assets
-3,526,646.30 2,624,213.61
Financial cost
-3,502,158.53 -11,883,866.62
Loss on investment
-542,759.47 -567,850.88
Decrease of deferred income tax assets
-1,406,380.55 -6,534,833.42
Increased of deferred income tax liabilities
-6,949,406.08 -16,366,319.20
Decrease of inventories
3,616,534.80 15,226,615.80
Decease of operating receivables
-22,867,604.67 -21,544,508.02
Increased of operating Payable
--- 3,245,599.04
Other
12,543,748.76 2,414,949.85
Net cash flows arising from operating activities
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
--- -
III. Net increase of cash and cash equivalents
291,006,454.63 108,234,510.63
Ending balance of cash
417,686,594.80 101,340,314.95
Less: Beginning balance of cash
--- -
Add: Ending balance of cash
--- -
Less: Beginning balance of cash equivalents
-126,680,140.17 6,894,195.68
Net increase of cash and cash equivalents
（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
81
Of which: Cash in stock 331,135.19 225,904.54
Bank savings could be used at any time 245,766,908.71 353,420,619.40
Other monetary capital could be used at any
time 44,908,410.73 64,040,070.86
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 291,006,454.63 417,686,594.80
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
.
1. Parent company information of the enterprise
82
Unit：RMB
Share ratio of Vote right
Parent parent ratio of parent Ultimate
Related Enterprise Registration Legal Business Registered Organization
company company company controlling
parties type place representative character capital code
name against the against the party
company(%) company(%)
Shenzhen Fan Chunming Investment RMB 4600 54.26% 54.26% State-owned 76756642-1
Investment million Assets
Holding Actual Supervision
State-owne
Co., Ltd. controlling Shenzhen and
d enterprise
person Administration
Commission
of Shenzhen
Parent company information of the company
The 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.
83
2. Subsidiary companies information of the enterprise
Unit ：RMB
Subsidiar Share Vote
Full name of Legal
y Enterpris Registratio Registered holding right Organizatio
subsidiary representativ Business character
company e type n area capital ratios(% ratio n code
company e
type ) (%)
Shenzhen Fabrics,
Jinlan bedding,clothing,textile
wholly Limited
Decorative s raw materials 100.0
owned Liability Shenzhen Zhang Hong 4,000,000.00 90.00 192172332
Articles processing 0
subsidiary Company
Industrial Co., manufacturing,
Ltd. wholesale and retail.
Shenzhen Lisi wholly Limited Domestic commerce,
100.0
Industrial Co., owned Liability Shenzhen Zhu Jun materials supply and 2,360,000.00 90.68 192180180
0
Ltd. subsidiary Company sales
Shenzhen wholly Limited Accommodation,
100.0
Huaqiang owned Liability Shenzhen Zhu Jun restaurants, business 10,005,300.00 95.00 19223330X
0
Hotel subsidiary Company center;
Shenfang
wholly Limited
Property 100.0
owned Liability Shenzhen Gao Guoshi Property Management 1,604,000.00 93.75 192225051
Management 0
subsidiary Company
Co., Ltd.
Shenzhen
Beauty wholly Limited Production of fully
100.0
Century owned Liability Shenzhen ZHang Hong electronic jacquard 25,000,000.00 100.00 741231236
0
Garment Co., subsidiary Company knitting whole shape
Ltd.
Zhenzhen
Zhongxing
Spewing acupuncture
Fibre folds Subsidiar Limited
cloth, revision, and
cotton y holding Liability Shenzhen Feng Junbin 1,680,000.00 75.00 --- 618810371
fusible interlining
Clothing company Company
fabric products
ornament Co.,
Ltd.
Shenzhen
Shenfang wholly Limited
Operating import and 100.0
Import & owned Liability Shenzhen ZHang Hong 5,000,000.00 100.00 728563236
export business 0
export Co., subsidiary Company
Ltd.
Shenzhen
Tianlong Subsidiar Limited
Operating import and
Industry and y holding Liability Shenzhen Gao Gluoshi 1,900,000.00 50.00 -- 192174127
export business
Trade Co., company Company
Ltd.
Shenzhen
Shengbo wholly Limited
Production and sales of 200,000,000.0 100.0
Ophotoelectri owned Liability Shenzhen Zhu Jun 100.00 618877007
polarizer 0 0
c Technology subsidiary Company
Co., Ltd
Shengtou wholly Limited
Zhu Meizhu, HKD10,000.0 100.0
（HK）Co., owned Liability HK Sales of polarizer 100.00 ---
Liu Honglei 0 0
Ltd. subsidiary Company
84
3. Joint-venture and affiliated enterprises information of the company
Unit：RMB
Share Liability Business total
Enterprise Registration Legal Business Registered vote right Assets amount at Net assets amount at Net benefit at this Affiliation Organization
Invested unit name holding amount at end income at this
type Place representative character capital ratio(%) end of period end of period period relation code
ratio(%) of period period
I.Joint enterprise
Shenzhen Haohao Property Leasing Limited Joint
Shenzhen Feng Junbin Serivice 475.4 万 50.00% 50.00% 6,154,866.12 437,520.80 5,717,345.32 855,197.70 471,094.52 61881295-9
Co. Ltd. Company enterprise
Shenzhen Xieli Automobile Co., Limited Joint
Shenzhen Ye Yongling Manufacturing 312 万 50.00% 50.00% 6,682,263.93 2,168,780.46 4,513,483.47 880,028.00 161,306.18 618801838
Ltd Company enterprise
II. Affiliated enterpris
Shenzhen Changlianfa Printing and Limited Affiliated
Shenzhen Zhu Meizhu 647 万 40.25% 40.25% 5,303,750.41 1,029,013.63 4,274,736.78 254,988.00 65,155.72 618865073
dyeing Co., Ltd. Company enterpris
Limited Chen Affiliated
Jordan Garment Factory Jordan Manufacturing USD100 万 35.00% 35.00% USD1,815,831.54 USD795,964.70 USD1,019,866.84. USD1,376,607.47 USD-231,688.66 ---
Company Wenxian enterpris
Hengshun (Saipan) Industry Co., Limited Affiliated
Saipan --- Manufacturing USD696 万 35.00% 35.00% --- --- - --- --- ---
Ltd. Company enterpris
85
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the company
Shenzhen Jintian Industrial Co., Ltd. Sharing company
Shenzhen Jiafeng Textile Co., Ltd. Sharing company
Shenzhen Guanhua Printing & dyeing Co., Ltd. Sharing company
Union Development Group Co., Ltd. Sharing company
Shenzhen Xiangjiang Trade Co., Ltd. Sharing company
Shenzhen Xinfang Knitting Co., Ltd. Sharing company
Hongkong Yehui International Co., Ltd. Sharing company
Shenzhen Dailishi Underwear Co., Ltd. Sharing company
Anhui Huapeng Textile Co., Ltd. Sharing company
5. Related Transactions
（1）The receiving labor service /purchasing goods.
Non
（2）The providing service/sells goods
Occurred current term Ooccurred in previous term
Subjects of Pricing and
Percentage in Percentage in
Related parties the related decision
Amount similar trades Amount similar trades
transactions making process
（%） （%）
Shenzhen
Investment Holding Sells of 124,725.00 0.04% 22,000.00 0.01%
Co., Ltd. Textile Market pricing
（3）In the report period，The company has no associated trusteeship.
（4）In the report period，The company has no associated contracting.
（5）In the report period，The company has no associated lease.
（6）The the report period, The company has no associated guarantee
（7）In the report period，The company has no fund borrowing of Related parties.
（8）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
Account reveivable Shenzhen Investment Holding 47,725.00 77,325.00
Co., Ltd.
Other account Shenzhen Tianlong Industry
reveivable and Trade Co., Ltd. 686,391.83 686,391.83
Other account Shenzhen Dailishi Underwear
reveivable Co., Ltd. -152,899.94 282,100.06
Other account
reveivable Jordan Garment Factory 183,906.56 183,906.56
Other account Shenzhen Xieli Automobile
reveivable Co., Ltd 169,262.00 169,262.00
Other account Anhui Huapeng Textile
reveivable Company 2,200,000.00 1,800,000.00
Shenzhen Xinfang Knitting
Other account payable
Co., Ltd. 216,789.85 216,789.85
Shenzhen Xiangjiang Trade 240,000.00 350,000.00
Other account payable
Co., Ltd.
Shenzhen Changlianfa Printing 832,376.07 856,436.07
Other account payable
and dyeing Co., Ltd.
Shenzhen Hengsheng 1,367,940.67 1,367,940.67
Other account payable
Investment Co., Ltd.
Shenzhen Haohao Property 3,153,868.07 3,303,868.07
Other account payable
Leasing Co. Ltd..
86
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 ---
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, 2011，The company has no liabilities formed from pending lawsuit and mediation.
2.As of June 30, 2011，The company has no liabilities formed from other units offering。
X. Commitment events
1. As of June 30, 2011，the company has no important commitment events.
2. As of June 30, 2011，the company has no commitment information guaranteed at the former period.
XI. Events Occurring after the balance sheet date
1. Closed from this report date, besides profit distribution, the company has No any important events occurring
after the balance sheet date.
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 nor to
capitalize and capital surplus.
87
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, 2011，the company has no financial instruments issued outside and can be transferred to stock at
end period.
6. As of June 30, 2011，Items related to measurement of fair value。
Unit：RMB
Item Amount at the Gains Accumulative Provision Amount at the
beginning of and change of fair for end of period
period losses value accounted impairment
from for as rights and made in
change interests current
of fair period
value in
current
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 75,481,853.50 --- --- --- 79,037,204.81
Subtotal of financial assets 75,481,853.50 --- --- --- 79,037,204.81
Property investment --- --- --- --- ---
Production physical assets --- --- --- --- ---
Other --- --- --- --- ---
Total --- --- --- --- ---
Finalcial Liabilities --- --- --- --- ---
7. Foreign financial assets and foreign financial liability
Unit：RMB
Item Amount at Gains and Accumulative Provision for Amount at the
the beginning losses from change of fair impairment made end of period
of period change of value accounted in current period
fair value in for as rights and
current interests
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
11,877,851.60 --- --- --- 18,974,251.31
account receivable
4. Trading financial
--- --- --- --- ---
assets
5.Held to term
--- --- --- --- ---
investment
Subtotal of financial
11,877,851.60 --- --- --- 18,974,251.31
assets
88
Item Amount at Gains and Accumulative Provision for Amount at the
the beginning losses from change of fair impairment made end of period
of period change of value accounted in current period
fair value in for as rights and
current interests
period
Finalcial Liabilities
--- --- ---
227,696.59 6,557,177.66
XIII.Notes s of main items in financial reports of parent company
1.Other receivable
（1）Other receivable
Unit：RMB
Year-end balance
Book balance Provision for bad debts
Classification
Amount Proport Amount Proporti
ion(%) on(%)
Receivables with major individual amount and bad
debt provision provided individually 12,075,436.43 35.43 10,547,991.83 87.35
Receivables provided bad debt provision in groups
Account age group 21,695,477.13 63.66 1,845,750.73 8.51
Subtotal of group 21,695,477.13 63.66 1,845,750.73 8.51
Account receivable with minor individual amount
but bad debtprovision is provided 311,486.35 0.91 311,486.35 100.00
Total 34,082,399.91 100.00 12,705,228.91
Year-beginning balance
Book balance Provision for bad debts
Classification
Amount Proport Amount Proporti
ion(%) on(%)
Receivables with major individual amount and bad
debt provision provided individually 15,075,436.43 39.60 10,547,991.83 69.97
Receivables provided bad debt provision in groups
Account age group 22,682,621.38 59.58 1,991,952.94 8.78
Subtotal of group 22,682,621.38 59.58 1,991,952.94 8.78
Account receivable with minor individual amount
but bad debtprovision is provided 311,486.35 0.82 311,486.35 100.00
Total 38,069,544.16 100.00 12,851,431.12
Category explanation of accounts receivable:
Receivables with significant individual amount and provision made for individual item refers to customer
accounts receivable with single amount more than 0.5 million, its provision for impairment will be made based on
specific identification method. For receivables without significant individual amount, after deducting those parts
which had conducted individual impairment test for its obvious difference in collectability with concrete evidence,
making group by aging with character of credit risks and making provision for impairment based on aging
analysis method. The receivables made provision for impairment without significant individual amount refers to
those receivables which has obvious difference in collectability with concrete evidence, its provision will be made
based on specific identification method.
Accounts receivable using the age analysis method for measurement of impairment allowances:
Year-end balance Year-beginning balance
Book balance Book balance Provision
Age Provision for
Proportion Proportion for bad
Amount bad debts Amount
（%） （%） debts
Within 1 year 13,334,301.8 13,306,430.0
3 61.46 1,099,823.22 6 58.66 665,321.50
1-2 years 8,361,175.30 38.54 745,927.51 8,373,660.57 36.92 837,366.06
2-3 years --- --- --- 60,000.00 0.26 18,000.00
Over 3 years --- --- --- 942,530.75 4.16 471,265.38
89
Total 21,695,477.1 22,682,621.3 1,991,952.9
3 100.00 1,845,750.73 8 100.00 4
（2） The company has no the conditions that account receivable is withdrew via recombination or other styles.
（3）Separate amount is large at end of period or doubtful accounts reserves of account receivable with separate
value decreasing test:
Other Account Provision for Allotment Reason
Book balance
receivable bad debts rate
Above RMB 0.5 Obvious evidence displaying
million 12,075,436.43 10,547,991.83 69.97 depreciation
Below RMB 0.5
Unable to recover
million 311,486.35 311,486.35 100%
Subtotal 12,386,922.78 10,859,478.18
Separate amount is not large, the account receivable with big combination risk after combined via risk character:
Year-end balance Year-beginning balance
Book balance Book balance
Age Provision for Provision for
Proportion Proportion
Amount bad debts Amount bad debts
（%） （%）
Within 1
--- --- --- --- --- ---
year
1-2 years 8,361,175.30 100.00 745,927.51 8,373,660.57 89.31 837,366.06
2-3 years --- --- --- 60,000.00 0.64 18,000.00
Over 3 years --- --- --- 942,530.75 10.05 471,265.38
Total 8,361,175.30 100.00 745,927.51 9,376,191.32 100.00 1,326,631.44
Separate amount is not large, the account receivable with big combination risk after combined via risk character:t
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 0.5 million RMB and account age is
over 1 year.
（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）Other account receivable actually cancelled after verification at this reporting period
（6）As of December 31,2010 no loans of the shareholders holding 5% (inclusive of a 5%) or more voting right
and other related units.
(7) The front 5 units’ information of Other account receivable
Unit name Relation with the Amount Fixed year Percentage of
company account
receivable
Within 1 year
Shenzhen Shenfang Imports &
subsidiary company 5,000,000.00 13.13%
exports Co., Ltd. 1-2 years
7,168,680.72 18.83%
Jiangxi Xuanli String Company Non-related parties 11,389,044.60 1-2 years 37.80%
Within 1 year
Shenzhen Beauty Century
subsidiary company 5,113,176.00 13.18%
Garment Co., Ltd.
75,600.00 1-2 years 0.20%
Not absorbed into Within 1 year
subsidiary company
Anhui Huapeng Textile Company
within combination
scope 2,200,000.00 4.73%
Not absorbed into 186,391.83 1-2 years 0.49%
Shenzhen Tianglong Industry and subsidiary company
trade Co., Ltd. within combination 500,000.00 2-3 years
scope 1.31%
Total 31,632,893.15 92.81%
（9）Account receivable from Related affiliated parties
90
Unit name Relation with the Amount Percentage of account
company receivable
Shenzhen Shenfang Imports & Internal Transactions 12,168,680.72
exports Co., Ltd. within the scope of 35.71%
consolidation
Shenzhen Beauty Century Internal Transactions 5,188,776.00
Garment Co., Ltd. within the scope of 15.22%
consolidation
Shenzhen Zhongxing Fibre Folds Internal Transactions 618,769.07
Cotton Clothing Ornament Co., within the scope of 1.82%
Ltd. consolidation
Shenzhen Xieli Automobile Co.,
Affiliated enterprise 169,262.00 0.50%
Ltd.
Jordan Garnent Factory Affiliated enterprise 183,906.56 0.54%
Not absorbed into
subsidiary company
6.45%
within combination
Anhui Huapeng Textile Company scope 2,200,000.00
Shenzhen Tianglong Industry and Not absorbed into
trade Co., Ltd. subsidiary company
686,391.83 2.01%
within combination
scope
Total 21,215,786.18 62.25%
（10）In the report period,Other account receivable that is not accord with expiration confirmation condition.
（11）In the report period,the company does not treat other account receivable as underlying assets to make asset
securitization.
91
2..Long –term stocks equity investment
Unit：RMB
Explanation of diffidence
Shareholding Voting right
Accounting Initial Original Ending between shareholding Current Cash
Name change proportion in the proportion in Devalue
method investment cost balance Balance proportion and voting right devalue bonus
investee the investee
proportion in investee
Shenzhen Jintian
Cost method 14,831,681.50 14,831,681.50 14,831,681.50 3.68% 3.68% --- 14,831,681.50 ---
Industry Co., Ltd.
Shenzhen Haohao
Equity
Property Leasing Co. 2,040,102.73 3,445,862.19 -164,844.57 3,281,017.62 50.00% 50.00% --- --- 400,000.00
method
Ltd.
Shenzhen Xieli Equity
1,529,483.67 2,422,651.65 100,745.09 2,523,396.74 50.00% 50.00% --- 266,654.99 --- ---
Automobile Co., Ltd. method
Shenzhen Changlianfa
Equity
Printing and dyeing 2,524,500.00 1,694,356.38 26,225.18 1,720,581.55 40.25% 40.25% --- --- --- ---
method
Company
Equity
Jordan Garnent Factory 7,240,625.00 2,574,160.27 -264,671.82 2,309,488.46 35.00% 35.00% --- --- --- ---
method
Hengshun（Saipan） Equity
8,228,350.00 --- --- 35.00% 35.00% --- --- --- ---
Industry Co., Ltd. method
Shenzhen Haohao
Property Leasing Co. Cost method 40,500,000.00 468,500,000.00 200,000,000.00 668,500,000.00 100.00% 100.00% --- --- --- ---
Ltd.
Shenzhen Jinlan
Decorative Articles Cost method 5,470,000.00 5,470,000.00 5,470,000.00 90.00% 100.00% Notes 1 --- --- ---
Industrial Co., Ltd.
Shenzhen Lisi
Cost method 6,666,132.60 6,666,132.60 6,666,132.60 90.68% 100.00% Notes 1 --- --- ---
Industrial Co., Ltd.
Shenzhen Beauty
Centruty Garment Co., Cost method 30,867,400.00 30,867,400.00 30,867,400.00 100.00% 100.00% --- 2,167,431.21 --- ---
Ltd.
Shenzhen Shenfang
Import & Export Co., Cost method 6,299,700.00 6,299,700.00 6,299,700.00 100.00% 100.00% --- 82,156.61 --- ---
Ltd.
Shenzhen Huaqiang
Cost method 14,623,003.00 14,623,003.00 14,623,003.00 95.00% 100.00% Notes 1 --- --- ---
Hotal
Shenfang Property
Cost method 1,600,400.00 1,600,400.00 1,600,400.00 93.75% 100.00% Notes 1 --- --- ---
Management Co., Ltd.
Zhenzhen Zhongxing
Fibre folds cotton
Cost method 1,260,000.00 1,260,000.00 1,260,000.00 75.00% --- Notes 2 1,260,000.00 --- ---
Clothing ornament Co.,
Ltd.
Shenzhen Jiafeng
Cost method 16,800,000.00 16,800,000.00 16,800,000.00 10.80% 10.80% --- 16,800,000.00 --- ---
Textile Co., Ltd.
Shenzhen Guanhua
Pruting and dyeing Co., Cost method 5,491,288.71 5,491,288.70 5,491,288.70 45.00% 45.00% --- 5,058,307.01 --- ---
Ltd.
Union Development
Cost method 2,600,000.00 2,600,000.00 2,600,000.00 2.87% 2.87% --- --- --- ---
Group Co., Ltd.
Shenzhen Xiangjiang Cost method 160,000.00 160,000.00 160,000.00 20.00% 20.00% --- --- --- 65,634.56
92
Explanation of diffidence
Shareholding Voting right
Accounting Initial Original Ending between shareholding Current Cash
Name change proportion in the proportion in Devalue
method investment cost balance Balance proportion and voting right devalue bonus
investee the investee
proportion in investee
Trade Co., Ltd.
Shenzhen Xinfang
Cost method 524,000.00 524,000.00 524,000.00 20.00% 20.00% --- --- --- ---
Knitting Co., Ltd.
Hongkong Yehui
Cost method 2,392,914.37 2,392,914.37 2,392,914.37 17.85% 17.85% --- --- --- ---
International Co., Ltd.
Shenzhen Dailishi
Cost method 532,062.50 2,559,856.26 2,559,856.26 30.00% --- Notes 3 --- --- 850,000.00
Underwear Co., Ltd.
Anhu Huapeng Textile
Cost method 25,000,000.00 25,410,209.50 25,410,209.50 50.00% --- Notes 3 --- --- 500,000.00
Co., Ltd.
Total -- 312,200,000.00 616,193,616.42 199,697,453.88 815,891,070.30 40,466,231.32 --- 1,815,634.56
Notes 1: 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%.
Notes 2：Shenzhen Zhongxing Fiber Wimple Cotton Raiment Co., Ltd. had established liquidation group in 2009 and started liquidation procedures, they are in liquidation
processing and these two companies will not be included in consolidation scope since they went into liquidation procedures.
Notes 3：Shenzhen Dailisi underwear Co., Ltd. and Anhui Huapeng textile Co., Ltd. had adopted outsourcing for contractual operation.
93
3. Business income, Business cost
（1）Business income
Unit：RMB
Items Amount of current period Amount of previous period
Income from Business income 25,693,964.21 24,441,993.92
Other Business income 1,718,047.98 1,743,091.46
Total 27,412,012.19 26,185,085.38
Cost from Business cost 4,088,569.41 3,466,671.65
Other Business cost 1,718,047.98 1,743,091.46
Total 5,806,617.39 5,209,763.11
（2）Main business（Industry）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rental 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
Total 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Rental income 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
Total 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Shenzhen 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
Total 25,693,964.21 4,088,569.41 24,441,993.92 3,466,671.65
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
Jinsitai Investment Development Co.,
11,514,689.06
Ltd. 44.81%
Shenzhen Shixingkai Beauty Co.,
468,377.40
Ltd. 1.82%
China merchants Bank, Shenfang
467,850.12
Building Branch 1.82%
Shenzhen Xinbaiwei Computer
257,778.48
Technology Co., ltd. 1.01%
94
Shenzhen Jingfangyuan Cultural
256,061.16
Development Corporation 1.00%
Total 12,964,756.22 50.46%
4. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current period Amount of previous period
Calculate income according to cost 1,402,808.94
method 1,380,634.56
Long term equity investment 979,077.01
calculated via equity method 97,453.88
Stock right disposal benefit -
Investment income from financial
assets sales 1,482,128.46 9,009,386.30
Total 2,960,216.90 11,391,272.25
（2）Long term equity investment calculated to cost method：
Name Amount of Amount of Cbange cause
current period previous period
Shenzhen Xiangjiang --
Trade Co., Ltd. 65,634.56 67,808.94
Shenzhen Dailishi ---
Underwear Co., Ltd. 415,000.00 435,000.00
Anhui Huapeng Prnting & ---
dyeing Garnent Co., Ltd. 900,000.00 900,000.00
Total 1,380,634.56 1,402,808.94 --
（3）Long term equity investment calculated via equity method
Name Amount of Amount of Cbange cause
current period previous period
Shenzhen Haohao ---
Property Leasing Co. Ltd. 235,155.43 197,933.49
Shenzhen Xieli ---
Automobile Co., Ltd. 100,745.09 -197,985.46
Shenzhen Changlianfa ---
Printing and dyeing
Company 26,225.18 14,822.80
Jordan Garment Factory -264,671.82 964,306.19 ---
Hengshun (Saipan) ---
Industry Co., Ltd. --- ---
Total 97,453.88 979,077.02
5. Supplement information for cash flow statement
Unit ：RMB
95
Supplement information Amount of
Amount of
previous
current period
period
I. Adjusting net profit to cash flow from operating activities
Net profit 18,533,246.48 11,977,705.09
Add : Impairment loss provision of assets -146,202.21 3,287,704.58
Depreciation of fixed assets, oil and gas assets and
consumablebiological assets 4,496,879.76 4,432,535.13
Amortization of intanglble assets 194,943.64 194,967.64
Amortization of long-term deferred expenses --- ---
Loss on disposal of non-current assets -52,994.00 ---
Loss from fixed assets discard --- ---
Loss of fair value fluctuation on assets --- ---
Financial cost -3,864,169.21 2,256,930.00
Loss on investment -2,960,216.90 -11,391,272.25
Decrease of deferred income tax assets -35,088.53 -723,295.01
Increase of deferred income tax assets -1,406,380.55 -6,534,833.42
Decrease of inventories --- ---
Decrease of operating receivable 3,162,921.98 -63,498,183.51
Increase of operating receivables -7,173,696.21 -1,202,046.59
Other --- 6,534,833.42
Net cash flows arising from operating activities 10,749,244.25 -54,664,954.92
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 97,766,287.48 30,213,562.23
Less: Beginning balance of cash 84,353,357.87 19,539,632.30
Add: Ending balance of cash --- ---
Less: Beginning balance of cash equivalents --- ---
Net increase of cash and cash equivalents 13,412,929.61 10,673,929.93
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 Amount of Notes
current period previous
period
Gains from disposals of non-current assets -52,994.00 --- ---
Refunding and exemption of taxes in excess of --- --- ---
96
Items Amount of Amount of Notes
current period previous
period
authority or without official approval documents
Government subsidies accounted into current income 4,690,090.02 4,982,567.16 ---
account (except for those govemment subsidies
closely related to the Company’s business, and
received at national statutory standard and amount)
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 1,482,128.46 9,009,386.30
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
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 10,874,438.77 -1,107.68 ---
than the above
97
Items Amount of Amount of Notes
current period previous
period
Other gain/loss items satisfying the definition of --- --- ---
non-recurring gain/loss account
Influenced amount of income tax 3,688,783.20 3,077,986.07 ---
Influenced amount of minor shareholders’ equity --- --- ---
（After tax ）
Total 13,410,868.05 10,912,859.71 ---
2. Return on net assets and earnings per share
Earnings per share
Net income on asset,
Profit of the report period Basic earnings per Diluted gains per
weighted
share share
Net profit attributable to the
owners of Company. 2.38% 0.10 0.10
Net profit attributable to the
owners of Company after
1.39% 0.06 0.06
deducting of non-recurring
gain/loss.
3.The explanation of abnormal circumstance and and reasons of items in major accounting report.
1. The ending balance of monetary capital decreased by RMB 331.2496 million and 39.90% over
beginning of period mainly due to the investment in the construction of phase-I project of
polarizer sheet for TFT-LCD in current period;
2. The ending book balance of accounts receivable increased by RMB 9.3208 million and 19.36%
mainly due to increase of income with the scale expansion of polarizer sheet business;
3.The ending balance of Prepayment Increased by RMB 19.9132 million and 425.40% over
year-beginning balance mainly due to the increase of export trade orders at the end of current
period over the same period of the previous year；
4. The end-of-period balance of construction in progress increased by RMB 298.8113 million over
beginning of period mainly due to increase of investment in phase-I project of polarizer sheet for
TFT-LCD;
5. The ending balance of advance payment Increased by RMB 21.7050 million and 155.9% over
year-beginning balance mainly due to the increase of export trade orders at the end of current
period over the same period of the previous year；
6.The end-of-period balance of taxes and levies payable decreased by RMB 31.0131 million and
773.07% over beginning of period mainly due to payment of value added tax on purchase for
imported equipment for phase-I project of polarizer sheet for TFT-LCD and other equipment
purchased;
7. The end-of-period balance of interest payable increased by RMB 2.1448 million over beginning
of period mainly due to increase of special loan interest payable for the phase-I project of polarizer
sheet for TFT-LCD;
8. The end-of-period balance of non-current liabilities to become due within one year decreased by
RMB 21 million mainly due to repayment of the loan;
98
9. The selling expenses increased by RMB 1.6292 million and 89.73% year on year mainly due to
increase of sales income from manufacturing industry;
10. Financial expenses decreased by RMB 6.5194 million year on year mainly due to decrease of
bank loan interests and increase of interest income from fixed deposit of raised proceeds;
11. Investment income decreased by RMB 8.3817 million and 70.53% year on year mainly due to
year-on-year decrease of sales of financial assets available for sale through secondary market in
current period;
12. Non-operating income increased by RMB 10.6368 million and 213.48% year on year mainly
due to receipt of 1,085,733 A shares of Guangdong Sunrise Group Co., Ltd. (the market value of
these shares was RMB 9,847,598.31 according to the closing price of A shares of * ST Sunrise on
May 17, 2010 (the last trading day before suspension of listing), i.e., RMB 9.07 per share) and
cash of RMB 702,694.14 (RMB 10,550,292.45 in total as recognized non-operating income)
according to (2010) Shen Zhong Fa Min Qi Zhong Zhen Zi No. 5-5 Civil Award and the Plan for
Reorganization of Guangdong Sunrise Group Co., Ltd(Refer to No. 2011-39 Announcement of the
Company for details)；
13. Other cash received relating to operating activities increased by RMB 6.2891 million year on
year mainly due to according to (2010) Long Zhi Fei Zi No. 1-3 Award from implementation
verdict of Jiangxi Longnan Peoples' Court(of law) and receipt of RMB 3 million from the
enforcement of the case of debt owed by Jiangxi Xuanli Yarn Industry Co., Ltd. and receipt of
cash of RMB 702,694.14 according to the reorganization plan of Guangdong Sunrise Group Co.,
Ltd；
14. Net cash flows from operating activities increased by RMB 10.1288 year on year mainly due
to year-on-year increase of net cash flows from operating activities of Shenzhen Shengbo
Optoelectronic Technology Co., Ltd. and recovery of partial arrears from Jiangxi Xuanli Yarn
Industry Co., Ltd.;
15. Cash received from disposal of investments decreased by RMB 8.4205 million year on year
mainly due to year-on-year decrease of sales of financial assets available for sale through
secondary market in current period;
16. Other cash received relating to investing activities increased by RMB 208.6388 million year
on year mainly due to receipt of fixed deposit interest of RMB 4.0694 million and writeback of
fixed deposit of RMB 204.5694 million;
17. Net cash outflow from investing activities increased by RMB 68.1043 million year on year
mainly due to increase of expenditure on phase-I project of polarizer sheet for TFT-LCD;
18. Net cash flows from financing activities decreased by RMB 75.1377 million year on year
mainly due to year-on-year decrease of cash received from loans by RMB 130 million;
19. Net increase in cash and cash equivalents decreased by RMB 133.5743 million year on year
mainly due to increase of investment in phase-I project of polarizer sheet for TFT-LCD and
decrease of cash obtained from loans in current period.
99
