SHENZHEN TEXTILE (HOLDINGS) CO.,LTD.
Semi-Annual Report 2012
August 3, 2012
1
Table of Contents
I. Important notes
II. Brief Introduction of the Company
III. Highlights of Accounting Data and Business Data
IV. Particulars about the Changes of Share Capital and Shareholders
V. Directors, Supervisors and Senior Executives
VI. Report of the Board of Directors
VII. Important Events
VIII. Financial Reports
IX. Documents Available for Inspection
2
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.
All the directors attended the board meeting , at which the semi-annual report was examined.
The financial report of the semi-annual report has not been audited by the certified Public Accountants
II Basic Information of the Company
（1）Company information
Code of A-Stock 000045 Code of B-Stock 200045
Stock A abbreviation Shen Textile A Stock B abbreviation Shen Textile B
Shenzhen Stock Exchange
Stock exchange for listing
Statutory name of the
深圳市纺织（集团）股份有限公司
Company in Chinese:
Chinese abbreviation
Statutory name of the
SHENZHEN TEXTILE (HOLDINGS) CO.,LTD.
Company in English
English abbreviation STHC
Legal representative Wang Bin
Registered address 6/F, Shenfang Building, 3 Huaqiang North Road, Futian District, Shenzhen
Zip Code 518031
Office Address: 6/F, Shenfang Building, 3 Huaqiang North Road, Futian District, Shenzhen
Zip Code 518031
Website: http://www.chinasthc.com
E-mail szfzjt@chinasthc.com
（2）Contact person and contact manner
Board secretary Securities affairs Representative
Name Chao Jin Jiang Peng
6/F, Shenfang Building, No.3 Huaqiang 6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen North Road, Futian District, Shenzhen
Tel 0755-83776043 0755-83776043
Fax 0755-83776139 0755-83776139
E-mail chaoj@chinasthc.com jiangp@ chinasthc.com
（3）Information disclosure and placed
Newspapers selected by the Company for Securities Times and Hong Kong Commercial Daily
information disclosure
Internet website designated by CSRC for
publishing the Interim report of the http://www.cninfo.com.cn
Company
The place where the Interim report is The Secretariat of the Company
3
prepared and placed
III. Highlights of financial data and indicators
1、Highlights of financial data and indicators
(1)Main of Accounting Data
Main of Accounting Data
2012（1-6） 2011(1-6) Changed over last year（％）
Operating Gross income 375,432,991.91 319,182,717.75 17.62%
Operating profit -20,784,519.82 25,179,211.88 -182.55%
Total profit -16,051,229.73 40,796,734.67 -139.34%
Net profit attributable to the shareholders
-18,736,243.07 32,363,976.69 -157.89%
of the listed company
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -25,242,008.05 18,953,108.64 -233.18%
listed company
Cash flow generated by business operation,
-16,058,109.71 15,393,748.76 -204.32%
net
End of report year At the end of last year Changed over last year（％）
Gross Assets 1,854,637,919.22 1,808,226,905.67 2.57%
Shareholders‘ equity attributable to
1,360,152,613.82 1,369,628,593.61 -0.69%
shareholders of the listed company
Capital stock 336,521,849 336,521,849 0%
(2)Main financial indices
Main financial indices 2012（1-6） 2011(1-6) Changed over last year（％）
Basic gains per share(RMB/Share) -0.06 0.1 -160%
Diluted gains per share(RMB/Share) -0.06 0.1 -160%
Basic earning per share after deducting of
-0.07 0.06 -216.67%
non-recurring gains/losses(RMB/Share)
Diluted return on equity （%） -1.38% 2.36% -3.74%
Weighted average return on equity（%） -1.37% 2.38% -3.75%
Diluted return on equity after deducting
-1.83% 1.38% -3.21%
non-recurring gains and losses（%）
Net income on asset, weighted and
-1.82% 1.39% -3.21%
deducted non-recurring gain/loss(%)
Net cash flow per share generated by
-0.05 0.05 -200%
business operation (RMB/Share)
End of report year At the end of last year Changed over last year（％）
Net asset per share attributable to
shareholders of the listed 4.04 4.07 -0.74%
company(RMB/Share)
Assets liabilities ratio(%) 26.66% 24.26% 9.89%
The information of main accounting data and main financial indices of the company by the end of report period:
In the report period, Operating profit，Total profit，Net profit attributable to the shareholders of the listed
company，Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed decreased
182.55%,139.34%,157.89% and 233.18% respectively，compared to the same period of last year. the main reason
is because the project― on phase-I project of polarizer sheet for TFT-LCD‖ on line 4 is trying to mass product; the
related costs has increased，cause the operation profit decreased significantly；Net cash flow per share generated
by business operation decreased 204.32%，compared to the same period of last year. the main reason is because
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the project― on phase-I project of polarizer sheet for TFT-LCD‖ on line 4 is trying to mass product，the cost of
purchasing raw materials, research and development cost, and other related costs increased. because of the
significant decrease of the operating profit，cause the significant decrease on the gains per share，Basic earning per
share after deducting of non-recurring gains/losses，Return on Net Asset，Net cash flow per share generated by
business operation as well.
2、The differences between domestic and international accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
（2）Simultaneously pursuant to both Chinese accounting standards and overseas accounting standards disclosed
in the financial reports of differences in net income and net assets.
□ Applicable√ Not applicable
（3） Significant differences between line items
□ Applicable√ Not applicable
（4）The explanation of accounting data from the Statement on differences between the IAS and Domestic
accounting Standard
□ Applicable√ Not applicable
3.Items and amount of deducted non-current gains and losses
√Applicable□ Not applicable
Items Amount（RMB） Notes
Gain/loss form disposal of non-current assets 31,003.41
Tax refund, deduction and exemption that is examined and
approved by authority exceeding or has no official approval 4,692,336.68
document.
Including apportion of governmental R&D
subsidy of RMB 3,954,990.00 offered by
Shenzhen Development and Reform
Commission, apportion of national aid of
RMB 500,000.00 for special new-type panel
display industrialization project, apportion of
funds of RMB 100,000.00 supporting
Governmental Subsidy accounted as current gain/loss, demonstration project of technology
industrialization, apportion of discount of
except for those subsidies at with amount or quantity fixed RMB 96,822.24 for the loans extended by
2,376,792.47 Shenzhen Financial Bureau, apportion
by the national government and closely related to the subsidy of RMB 524.44 for purchasing
Company‘s business operation. special equipment for environmental
protection in Longgang District, Shenzhen
and receipt of subsidy of RMB 40,000 jointly
granted by Shenzhen Market Administration
and Municipal Finance Commission for the
implementation of standardization strategy in
the current period.
In addition to normal business with the company effective
hedging related business, holders of tradable financial
The investment income from financial assets
assets, transactions and financial liabilities arising from
available for sale is the income from the
changes in fair value gains and losses, as well as the 2,376,792.47
Company's sale of shares of Shenzhen Victor
disposal of trading of financial assets, trading financial
Onward Textile Industrial Co., Ltd.
liabilities and available-for-sale financial assets gains return
on investment;
Net amount of non-operating income and expense except
9,950
the aforesaid items
Amount of influence of income tax 604,317.58
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Total 6,505,764.98 --
IV. Particulars about the Changes of Share Capital and Shareholders
1.Particulars about the Changes of Share Capital
(1)Statement of changes in shares
□ Applicable√ Not applicable
(2)Change in conditional shares
□ Applicable√ Not applicable
2.The information of issuing shares
(1)The information of issuing shares in the previous three years
The name of Issuing price The quantity of
Transaction
stocks and its Issuing date Issuing Quantity listing date permitted listing
（RMB/shares） terminated date
derivative funds transaction
Stock
RMB Common
July 14,2010 9.3 91,397,849 August 9,2010 91,397,849
stock A
The information of issuing shares in the previous three years：
In July 2010, the company issued 91,397, 849 shares of common stocks at the price of RMB 9.3 to some
specific investors according to Zheng Jian License[2010]882 by China Securities Regulatory Commission(briefly
― CSRC‖), and the new shares started to be traded on Shenzhen Securities Exchange on August 9, 2010. As the
blackout period lasts 36 months, the 53,763,440 shares issued to Shenzhen Investment Holdings Co., Ltd. and
Shenzhen Shenchao Technology Investment Co., Ltd. can be publicly traded from August 9, 2013; and the
37,634,409 shares issued to the 4 institutional investors can be publicly traded from August 8, 2011 as the
blackout period is 12 months. With this private placement, the total capital stock of the company changes from
245,124,000 to 336,521,849 shares.
(2)The information of the total number of shares of the company and its structural changes
and changes in the structure of assets and liabilities of a company
□ Applicable√ Not applicable
(3) Existing internal staff stock information
□ Applicable√ Not applicable
3.Introduction to the shareholder and actual controller
(1) Total number of shareholders on the end of the report period
Total number of shareholders on the end of the report period is 20,689.
(2)Particulars about the shareholding of the top ten shareholders
Particulars about the shareholding of the top ten shareholders
Nature of Quantity of Conditional Pledged or frozen
Name of shareholder Proportion (%)
shareholder shares held shares Status Quantity
Shenzhen Investment State-owned
54.26% 182,611,460 37,634,408
Holdings Co., Ltd. legal person
Shenzhen Shenchao
State-owned
Technology Investment Co., 4.79% 16,129,032 16,129,032
legal person
Ltd.
Agricultural Bank of China
－China Post Preferred Other 1.1% 3,722,497 0
securities investment fund
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Huabao trust Co., Ltd. Other 0.43% 1,457,000 0
Foreign Legal
Zheng Bangsheng 0.35% 1,203,800 0
person
Cai Zhihao Other 0.33% 1,137,928 0
Shenzhen Zhongnan
Society Legal
Liankang Technology Co., 0.27% 916,603 0
person
Ltd.
Xiao Jingsong Other 0.25% 862,124 0
Foreign Legal
Xu Ruijiang 0.23% 791,688 0
person
CHINA OPPORTUNITIES Foreign Legal
0.21% 740,000 0
H-B FUND person
The shareholders holds more than 5% is Shenzhen Investment Management Co.,
Notes Ltd，in the report period, the shares they hold of the company have no changed,
pledged or frozen or managed.
Top 10 holders of unconditional shares
Amount of tradable Type and Quantity
shares with
Full name of shareholder unrestricted conditions
held at the end of Type Quantity
report period
Shenzhen Investment Holdings Co., Ltd. 144,977,052 A shares 144,977,052
Agricultural Bank of China－China Post Preferred
3,722,497 A shares 3,722,497
securities investment fund
Huabao trust Co., Ltd. 1,457,000 A shares 1,457,000
Zheng Bangsheng 1,203,800 B shares 1,203,800
Chai Zhihao 1,137,928 A shares 1,137,928
Shenzhen Zhongnan Liankang Technology Co.,
916,603 A shares 916,603
Ltd.
Xiao Jingsong 862,164 A shares 862,164
Xu Ruijiang 791,688 B shares 862,164
CHINA OPPORTUNITIES H-B FUND 740,000 B shares 740,000
Bank of China－Huabao Xingye Select securities
685,454 A shares 685,454
investment fund
Notes to the related relationship between the top ten shareholders or their concerted action:
The Chinese legal person Shenzhen Shenchao Technology Investment Co., Ltd. is a 100% subsidiary of Shenzhen
Investment Holding Co., Ltd, which thus is a person acting in concert. There is no affiliation among the other
state-owned legal persons as a shareholder. Except this, the Company does not know whether there is relation
between social public shareholders or whether they are persons taking concerted action defined in Regulations on
Disclosure of Information about Shareholding of Shareholders of Listed Companies.
4. Introduction to the controlling shareholder and actual controller
（1）The changing information of the controlling shareholder and actual controller
□ Applicable√ Not applicable
（2）The actual introduction to the controlling shareholder and actual controller
Whether exist new actual controller
□ Yes √ No
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National Assets Regulatory Commission of Shenzhen
The Name of the actual controller
Municipal People's Government
The classification of actual controller Local National Assets Regulatory Commission
Notes:
(1) The shares held by :Shenzhen Investment Holdings Co., Ltd. account for 54.26% of the total share capital
of the Company. Legal representative: Fan Mingchun, Date of establishment: October 13, 2004; Organization
Code：767566421; Registered capital: RMB 5.6 billion. It is a solely state-owned company in Shenzhen. Business
scope: Providing guarantee to municipal state-owned enterprises, managing state-owned equity of enterprises
other than those directly supervised by Municipal State-owned Assets Commission, conducting asset
reorganization, system transformation and capital operation of affiliated enterprises, making investment and doing
other businesses authorized by the Municipal State-owned Assets Commission.
(2)The controlling shareholder‘s person acting in concert Shenzhen Shenchao Technology investment Co.,
Ltd. holds 4.79% of the company shares, Legal representative：Lou Chao, Date of establishment: November
9,2001, Registered capital: RMB 180 million, it is a solely state-owned company in Shenzhen .representing
Shenzhen municipal government as the operating institution to aid the development of the integrated circuits and
new prototype flat panel display industry. It engages it self in the relevant loan use, construction of factory
buildings and the services for investors to attract business and investment, e.g., consultancy, project negotiation,
land selection, investment environment assessment, preferential policy application, project financing application
for project establishment, construction projects etc.
（4）The actual controller control the company by using intrust and other assets management》
□ Applicable√ Not applicable
5. The other legal person shareholders holding more than 10% shares of the Company.
□ Applicable√ Not applicable
（IV）Information of convertible corporate bonds
□ Applicable√ Not applicable
V. Directors, Supervisors, Senior Executives
8
（I）The changes of holding shares of the directors, supervisors and senior executives
The The Remuneratio
Number of Of which:
increased decreased Number of Final n drawn from
Beginning Ending date shares held at the number
number of number of shares held at numbers of Reason for shareholder
Name Position Sex Age date office of office the of restricted
shares on the shares on the the year-end stock options change entities or
term term year-begin stocks held
report period report period (shares） held（Shares） other related
（shares） （Shares）
（Shares） （Shares） parties or not
Board
Wang Bin Male 42 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
chairman
Director,
Zhu Jun General Male 49 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
Manager
Gao Guoshi Director Male 59 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
Wang
Director Male 48 May 4, 2010 May 3,2013 0 0 0 0 0 0 Yes
Yongjian
Independent
Zhang Yong Male 53 May 4, 2010 May 3,2013 0 0 0 0 0 0 Yes
director
Independent
Shi Weihong Female 45 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
director
Independent
Yang Shibin Male 43 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
director
Director,
Chief December
Xiang Dong Male 42 May 3, 2013 0 0 0 0 0 0 No
financial 23, 2010
officer
December
Xu Shiying Director Male 47 May 3, 2013 0 0 0 0 0 0 Yes
23, 2010
Wang Chairman of Male 53 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
9
Junzhao Supervisory
committee
Li Wei Supervisor Male 47 May 4, 2010 May 3,2013 0 0 0 0 0 0 Yes
Zhou April 23,
Supervisor Female 54 May 3, 2013 7,050 0 0 7,050 5,288 0 No
Meirong 2010
Deputy
Feng Junbin General Male 50 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
Manager
Deputy
Zhang Hong General Male 47 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
Manager
Deputy
Zhu Meizhu General Male 48 May 4, 2010 May 3,2013 93,000 0 0 93,000 69,750 0 No
Manager
Deputy
August 26,
Chao Jin General Female 50 May 3, 2013 0 0 0 0 0 0 No
2011
Manager
Board
Chao Jin Female 50 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
secretary
Manager of
Liu Yi Male 59 May 4, 2010 May 3,2013 0 0 0 0 0 0 No
Financial
Total -- -- -- -- -- -- --
10
The directors, supervisors and senior managers did not implement equity incentives.
□Applicable√Not applicable
（II）Representation information
Representation of shareholders
√Applicable□Not applicable
Term Whether receiving
Name of corporate Term start
Name Position terminated remuneration or
shareholders date
date subsidy
Shenzhen Investment Deputy General July 1,
Wang Yongjian Yes
Holdings Co., Ltd. Manager 2009
Shenzhen Shenchao
Deputy General January 1,
Xu Shiying Technology Yes
Manager 2009
Investment Co., Ltd.
Deputy General
Shenzhen Investment February
Li Wei of Dept 2 of Yes
Holdings Co., Ltd. 1, 2010
Enterprise
The explanation of
Representation of None
shareholders
Representation in other unit
□Applicable√Not applicable
（III）Information of remuneration about Directors, Supervisors and Senior Executives.
The determination of
Executed based on ‘company directors salary management system‘ and the remune
remuneration of Directors,
ration of senior managers determination, management and evaluation system
Supervisors and Senior
Executives.
The rewards determined The salary based on ‘company directors salary management system‘ and the
basis of directors, remuneration of senior managers determination, management and evaluation
supervisors and senior system‘ ; Independent directors pursuant to shareholder resolutions of the General
executives Assembly to determine remuneration
The actual salary payment Salary in accordance with the salary management system and salary according to th
information of Directors, e equity incentives payment.
Supervisors and Senior
（IV）Information about changing Directors, Supervisors and Senior Executives.
□Applicable√Not applicable
11
（V）Staffs
the number of employees 808
The number of retirement employees fees that should
70
be payer by the company
Professional
Type Number of persons
Production personnel 549
Sales personnel 27
Technology Personnel 93
Financial personnel 33
Managerial personnel 106
Academic qualification
Type Quantity（Person）
Master‘s Degree 27
bachelor degree 130
junior college 117
high school & other 534
VI. Report of the Board of Directors
(1) Management discussion and analysis
1. 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 the report period, By the stability of operation and the control of costs, the company has successfully completed
the trial running and the trial production of "Project 1 of TFT-LCD polarizer", and started up the non-public issue
of "Project 2 of TFT-LCD polarizer" on the basis of Project 1. Meanwhile, the company has made efforts to
optimize the integration of resources, eliminate the low value-added industries, and completely drop Shenzhen
Jinlan Company's foreign trade processing business out. Moreover, the company has accomplished the budget
targets of the first half year by the strengthening of fine management and the implementation of all production and
operation tasks. In the reporting period, the company realized the revenues of RMB 375.4330 million from its
main business, 17.62% up compared to the same period of last year, and achieved the net profits of
RMB -18.7362 million, which is attributable to the parent company, 157.89% down compared to
the same period of last year.
(1)Industry: In the report period, the manufacturing income amounted to RMB 120.6659 million,
18.91% down compared to the same period of last year; and the total profit was RMB -28.8022
million, 284.70% down compared to the same period of last year. The main reason of revenue
declined is the weak market demand and the orders reduced. Besides, the relevant cost and
12
expenditure rise since the 4th line of "Project 1 of TFT-LCD polarizer" is going to start the trial production phrase,
and the total profits are reduced substantially year-over-year during the projects climbing period.
(2)Trading: In the report period, Trading: within the reporting period, the trading revenues reached RMB
213.5195 million, 59.8% up compared to the same period of last year, and the profits totaled up to RMB 0.5277
million which remains the same as that in the previous year. The trade revenue rises mainly owing to the trade
channels broaden and the textile trade exports to Southeast Asian countries increased by the company.
(3)Property leasing and management: In the report period, The revenue of leasing and service industries of the
company are RMB 39.2884 million,12.49% down compared to the same period of last year.. The company has
used the advantages of the metro property to optimize the customer structure, improve the property function, and
ensure the steady growth of rental income.
2. Analysis of the financial position and operating results of the Company
(1) Bills receivable decreased by 32.73% over beginning of period mainly due to endorsed assignment;
(2)Other receivables increased by 63.5% over beginning of period mainly due to sharp increase of receivable
export rebates;
(3)Fixed assets increased by 80.82% over beginning of period, which were mainly the fixed assets carried forward
from phase-I project of polarizer sheet for TFT-LCD;
(4)Construction in progress decreased by 83.63% over beginning of period mainly because the equipment of
phase-I project of polarizer sheet for TFT-LCD was transferred into fixed assets;
(5)Accounts payable increased by 56.21% over beginning of period mainly due to increase of raw material
purchase for phase-I project of polarizer sheet for TFT-LCD;
(6)Taxes and levies payable decreased by 121.42% over beginning of period mainly due to payment of VAT on
purchase of imported equipment and equipment provided by Party A for phase-I project of polarizer sheet for
TFT-LCD
(7)Interest payable increased by 89.33% over beginning of period mainly due to increase of special loan for
phase-I project of polarizer sheet for TFT-LCD;
(8)Other payable increased by 34.23% over beginning of period mainly due to increase of Engineering Equipment
funds for phase-I project of polarizer sheet for TFT-LCD;
(9)Deferred income tax liabilities increased by 39.35% over beginning of period mainly due to increase of market
value of financial assets available for sale;
(10)Administrative expenses increased by 72.65% year on year, mainly due to increase of R&D expense and other
relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(11) Financial expensed increased by 124.64% over beginning of period mainly due to increase of special loan
interest for phase-I project of polarizer sheet for TFT-LCD;
(12)Investment income increased by 29.17% year on year mainly due to year-on-year increase of stocks sold
through secondary market;
(13)Non-operating income decrease 69.63% year on year mainly due to year-on-year reduction of reorganization
income of Guangdong Sun Rise Group Co., Ltd.;
(14)Total profit decreased by 139.34% year on year mainly due to increase of relevant expenses after trial batch
production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(15) Income tax expenses decreased by 68.16% year on year mainly due to decrease of taxable income in current
period;
(16) Net profit decreased by 157.89% year on year mainly due to year-on-year increase of expenses of phase-I
13
project of polarizer sheet for TFT-LCD;
(17)Other composite income increased by 299.04% year on year mainly due to increase of end-of-period market
value of stocks held by the Company over beginning of period;
(18)Other cash receipt related to operating activities increased by 94.47% year on year mainly due to year-on-year
sharp increase of governmental subsidy received;
(19)Other cash payment related to operating activities increased by 43.88% year on year mainly due to increase of
relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(20) Net cash flows from operating activities decreased by 204.32% year on year mainly due to decrease of
relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(21) Cash received from disposal of investments increased by 86% year on year mainly due to year-on-year
increase of stocks sold through secondary market;
(22)The net amount of cash received from the disposal of fixed assets, intangible assets and other long-term assets
increased by 739.46% mainly due to the disposal of machinery and equipment resulting from the business
transformation of Shenzhen Jinlan Decoration Industrial Co., Ltd., a subsidiary of the Company;
(23)Other cash received relating to investing activities decreased by 100% year on year mainly due to
year-on-year decrease of recovery of time deposit principal and interests;
(24)The cash paid for construction of fixed assets, intangible assets and other long-term assets decreased by
69.23% year on year mainly due to decrease of project investment expenditure with the construction of phase-I
project of polarizer sheet for TFT-LCD approaching the end;
(25) Cash flow generated by financing increased by 94.87% mainly due to the repayment of long-term loans to
become due within one year in the same period of previous year;
3. Description for above 20%of the company's actual business performance than the profit forecast disclosed
publicly during the reporting period
The company has disclosed in the first quarter report of 2012 that the semi-annual net profit is expected to
cumulate to RMB-38～-28 million in 2012, and the actual net profit during the reporting period is RMB-18.74
million, which is less 33% than the expected loss. The main reason is that the company has reduced the trial
production costs of "Project 1 of TFT-LCD Polarizer" through the strict control of the trial production process, the
budget prior to the implementation, the control during the execution and the summarizing after done.
4．Major subsidiaries of the company, shares of the company's operations and performance analysis
1.Shenzhen Shengbo Optoelectronic Technology Co., Ltd. is engaged in producing polarizer sheet products for
LCD., Registered capital of RMB 250 million , total assets of RMB 1367.7340 million and net assets of RMB
971.8699 million. It earned net profit of RMB-28.8503 million in first half of 2012. the relevant cost and
expenditure rise since the 4th line of "Project 1 of TFT-LCD polarizer" is going to start the trial production phrase,
and the total profits are reduced substantially year-over-year during the projects climbing period.
2.Shenzhen Beauty Century Garment Co., Ltd. is engaged in production entirely-electronic figured full-shaped
knitted garments. Registered capital of RMB 25 million , total assets of RMB 47.3138 million and net assets of
RMB 33.7104 million. It earned net profit of RMB0.1894 million in first half of 2012.
3. Shenzhen Shenfang Import & Export Co., Ltd. is engaged in export and import business. Registered capital of
RMB 5 million , total assets of RMB 45.1404 million and net assets of RMB 11.3031 million. It earned net profit
of RMB0.3501 million in first half of 2012.
4. Shenzhen Jinlan Decorative Articles Industrial Co., Ltd. is mainly engaged in production of bedroom articles
series, Registered capital of RMB 4 million , total assets of RMB 22.3538 million and net assets of RMB
14
14.5076 million. It earned net profit of RMB1.2978 million in 2011.
5. Shenzhen Lisi Industrial Co., Ltd. is mainly engaged in property lease and management. Registered capital of
RMB 2.36 million , total assets of RMB 29.969 million and net assets of RMB 24.5279 million. the property
Leases rate was 100% and it earned net profit of RMB 0.9764 million in first half of 2012.
6.Shenzhen Huaqiang Hotel. is mainly engaged in Guest room ,Hotel operation. Registered capital of RMB 10
million , total assets of RMB 26.3397 million and net assets of RMB 20.4424 million. The Hotel housing rate was
75.3% and it earned net profit of RMB 0.7428 million in first half of 2012.
7.Shenfang Property Management Co., Ltd. is mainly engaged in property management and conduct property
lease business for the head office of the Company. Registered capital of RMB 1.6 million , total assets of RMB
8.9649 million and net assets of RMB 2.3625 million , in first half of 2012.
the average occupancy rate of the property was 99.71%. Its income from management fee was RMB 4.4729
million. Its net profit was RMB 0.0944 million .
5. All the risk factors that maybe have adverse influence on the achievement of future development strategy and
business objective of the company
At present, the relevant expenditure rise since the Project 1 of TFT-LCD polarizer is in the projects climbing
period. The business revenues and profits are reduced due to the short-term of production line shutdown subjected
to the fire accident in Longhua plant. For the property management, the rental prices of overall areas are pulled
down because of the weak external economic environment and the severely vacant buildings in Huaqiang North,
especially the frequent rent-vacating phenomenon for those companies that engaged in the exportation trade. In
the second half year, the close construction of Metro Line 7 will have negative impact on Huaqianbei shopping
district, such as the decrease of occupancy rate and the difficult collection of rental payment, as well as the
continuous impact of adverse factors, such as the weak economic situation, the progressively fierce market
competition, the project climbing, the labor costs rising and the prices of raw material moving up, the business
pressure will be further increased for the company. Facing the severe economic situation, the company will mainly
take the following steps:
(1) Try to shorten the climbing period of Project 1 of polarizer, make efforts to reduce the costs, and ensure the
mass production of Quarter 4 achieved;
(2) Accelerate the technology innovation, improve the promotion of production process and optimization of
product construction by the measures of R&D and technical renovation, and reduce the business costs;
(3) Strengthen the management of production safety, learn from the fire accidents, launch a thorough checkup for
the enterprise, comprehensively survey the safety hidden troubles, eliminate the dead areas of safety, and strictly
implement the safety production responsibility system;
(4) Seize the market opportunity, strengthen the market development, and consolidate the market dominance;
(5) Enhance the communication and coordination with government departments and customers, stabilize the
renting rate and occupancy rate, increase the revenue and reduce the expenditure, improve the service quality, and
reduce the impact of metro construction on the business of the company;
(6) Continue to improve the internal control system, strengthen the management of the company, and improve the
control level of the enterprise.
6. The Status of key business in terms of industry of business.
（1）The Status of key business in terms of industry and product of business.
Unit ：RMB
On industry or Income from key Cost of key Gross profit rate Increase/decrease Increase/decrease Change of Gross
15
production business business （％） of key business of key business profit rate over
turnover（％） cost（％） the same period
of last year（％）
In terms of business line
Domestic and
213,519,544.58 212,411,433.49 0.52% 59.8% 59.76% 6.12%
foreign trade
Manufacturing 120,665,885.03 110,805,119.98 8.17% -18.91% -5.04% -62.14%
Lease and
Management of 39,288,424.66 11,402,312.4 70.98% 12.49% 17.52% -1.72%
Property
In terms of product
Income from
Lease and
39,288,400 11,402,300 70.98% 12.49% 17.52% -1.72%
Management of
Property
Income from
22,170,300 17,774,200 19.83% -39.21% -37.55% -9.70%
textile
Income from
98,495,600 93,030,900 5.55% -12.32% 5.44% -74.14%
Polarizer sheet
Income from
213,519,500 212,411,400 0.52% 59.8% 59.76% 6.12%
Trading
The Status of key business in terms of industry and product of business.
In the report period, Owing to the trade channels broaden and the textile trade exports to Southeast Asian
countries increased, the trade revenue is up 59.8% year-over-year; and the property management rental income is
up 12.49% year-over-year since the company has optimized the customer structure, improved the property
function and ensured the steady growth of rental income by use of the advantages of the metro property. But the
revenue in the manufacturing is down 18.91% year-over-year, of which, the textile revenue is down 39.21%
year-over-year mainly due to the considerable decrease in export order of fully fashion knitwear, and the polarizer
income is down 12.32% mainly due to the orders fallen and the TN-STN demand in the downturn market.
Description for the reasons of greater rise or fall range in gross profit rate year-over-year:
The gross profit rate in the manufacturing is down 62.14% year-over-year, which is mainly due to the declined
gross profit rate of Shenzhen Shengbo Optoelectronics Technology Co., Ltd. and Shenzhen Beauty Garment Co.,
Ltd., subsidiaries wholly owned by the company:
（1）Shengbo optoelectronics is a wholly-owned subsidiary, engaged in development, production, processing and
dealing in Polaroid‘s and the materials and components of LCD display. In the report period, The gross profit rate
of TN-STN products LCD polarizer is 21.5% and over a little change year-over-year. The gross profit rate is
subjected to the main reason of margin reduced significantly is that the 4th line of "Project 1 of TFT-LCD
Polarizer" has started the trial production, which requires the equipment to continuously operate for a long time in
order to check the stability of equipment and products, and continually improve and optimize the devices and
artwork according to the product status, which causes the increase of membrane materials consumed and the
significant rise of the costs. cause the gross profit rate of LCD polarizer is down 15.91% year-over-year.
16
(2) Shenzhen Beauty Garment Co., Ltd , a wholly-owned subsidiary of the company, which is dedicated to
production and processing of the fully fashion seamless knitwear. During the reporting period, the gross profit rate
of fully fashion knitwear is 19.75%, down 3.49% year-over-year. Due to the continual downturn in the
international market and considerable reduction in export orders, the income of export products in the first half
year is down 64.36% year-over-year. Therefore, the company makes efforts to develop the domestic market and
strengthen the cooperation with the well-known brands manufacturers because of the slump of export market, and
achievements have been made in development of the domestic market with an increase of 52.05% year-over-year.
But the orders in international market have a sharp decrease, which can't be fully offset by the increase in
domestic market, so that the capacity utilization is declining and the unit cost is rising.
（2）Main operation in terms of areas are as follows:
Unit ：RMB
Area Income from key business Increase/decrease of income（％）
Mainland China 122,758,230.83 -8.79%
Overseas 250,715,623.44 37.18%
The Status of main operation in terms of areas
In the report period, Owing to the trade channels broaden and the textile trade exports to Southeast Asian
countries increased, the main business income of exportation overseas is up 37.18% year-over-year. But the
domestic sales revenue is down 8.79% year-over-year since the domestic sales income of polarizer is declined,
and Shenzhen Jinlan Decoration Industrial Co., Ltd., a wholly-owned subsidiary, has transferred the textile
production and processing operations to reduce the textiles income.
Description for the composition of main business
In the report period, the trade revenue has accounted for 57.17% of total main business income, with up 15.07%
year-over-year. But the polarizer income has accounted for 26.37% of total main business income with down
9.03% year-over-year; the property and rental income accounted for 10.52% with down 0.49%, and the textiles
income accounted for 5.94% with down 5.55%. Due to the substantial growth of the trade income, the percentage
of other industries revenue has declined at different degrees, of which, the polarizer income and textile income
and proportion are down year-over-year during the period of report mainly due to the weak market demand and
the orders reduced; and the property and the rental revenue is up year-over-year, but the proportion accounting for
the total main business income has fallen.
（3）Reasons for the material change of key business and its structure
□Applicable√Not applicable
（4）Reasons for the material change of the profitability ( gross profit rate) of the key business compared with the
previous year
In the report period, the gross profit rate is subjected to the main reason of margin reduced
significantly
is that the 4th line of "Project 1 of TFT-LCD Polarizer" has started the trial production, which requi
res the equipment to continuously operate for a long time in order to check the stability of equipmen
t and products, and continually improve and optimize the devices and artwork according to the prod
uct status, which causes the increase of membrane materials consumed and the significant rise of th
e costs. cause the gross profit rate of entirety LCD polarizer is down 15.91% year-over-year.
17
（5）Analysis of the reasons for the material change of profit structure compared with the previous year
The composition of the Company's total profit for the report period: Relevant expenses increased
after trial batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD and line 4
suffered a loss of RMB 38.5222 million in the report period. As a result, total profit decreased by
big margin year on year. In addition, in the same period of previous year, the Company recognized
non-operating income of RMB 10.55 million due to the implementation of debt reorganization plan
by Guangdong Sun Rise Group Co., Ltd. Excluding the influence of these two noncom parable
factors on total profit, the profit made by industrial enterprises accounted for 43.26% of comparable
total profit, which decreased 6.77% by year on year. The profit from property lease and
management accounted for 54.39% of total profit, which increased by 6.17% year on year. The
profit from trade accounted for 2.35% of the total profit, which increased by 0.59% year on year.
7. Provisions of internal control for fair value:
The company laid down the internal control system for fair value measurements and disclosure of
available-for-sale financial assets in pursuance of the Accounting Standards for Business
Enterprises and Basic Standard for Enterprise Internal Control. According to the accounting
standard, the company laid down the procedures of fair value measurements and disclosure of
available-for-sale financial assets on the basis of secondary securities market prices with the active
market quoted price, and the Board of Directors, Board of Supervisors and senior management of
the company would bear responsibility for the authenticity of the fair value measurements and
disclosure of available-for-sale financial assets. In order to ensure the authenticity, timeliness,
accuracy and completeness of the fair value measurements and disclosure of available-for-sale
financial assets of the company, the internal control system provides that the fair value
measurements and disclosure of available-for-sale financial assets should be evaluated by means of
internal audit by a selected external agency and the evaluation of internal control for external audit
should be accepted.
The accounting policy of company required that the initial measurement for Investment properties
shall be conducted based on its obtained price. The subsequent measurement for investment
properties shall be conducted in cost pattern. As this measurement attribute is not involve with fair
value, so, company‘s internal controlling system for fair value related to investment property has
not been stipulated yet. The classification, depreciation and amortization policy for investment
properties are same as it for fixed assets and intangible assets. It meets the requirement of article 9,
chapter 3 of ,
i.e. the subsequent measurement for buildings measured in cost pattern will apply with the
regulations in .
Items related to measurement of fair value
Unit ：RMB
Amount at the Gains and losses Accumulative Provision for Amount at the end of
beginning of period from change of fair change of fair value impairment made in period
Items
value in current accounted for as current period
period rights and interests
Financial assets
Of which ： 1.
Financial assets
calculated according
18
to fair value whose
change is accounted
for as profits or
losses for current
period
Including: Derived
financial asset
2. Trading financial
52,272,895.86 11,083,017.7 63,355,913.56
assets
Subtotal of financial
52,272,895.86 11,083,017.7 63,355,913.56
assets
Financial liabilities
Property investment
Production physical
assets
Other
Total 52,272,895.86 11,083,017.7 63,355,913.56
Is there any major difference between the evaluation results when evaluation techniques were adopted on similar items in two years
please state the details if there is.
□ Yes √ No
8. The information of the company holding financial assets in foreign currency
Unit：RMB
Item Amount at the Gains and losses Accumulative Provision for Amount at the end of
beginning of period from change of fair change of fair value impairment made in period
value in current accounted for as current period
period rights and interests
Financial assets
Of which ： 1.
Financial assets
calculated according
to fair value whose
change is accounted
for as profits or
losses for current
period
Including: Derived
financial asset
2.Loan and 13,031,079.96 16,904,607.47
19
account receivable
3. Trading
financial assets
4.Expired
investment in
possess
Subtotal of financial
13,031,079.96 16,904,607.47
assets
Financial liabilities 16,474,014.26 48,540,217.13
（II）Investment of Company
1.The Company raised funds in the report period.
Unit：RMB‘0000
Total Amount of Raised Capital 82,876.8
Total Amount Of Raised Capital Invested in the
8,517.71
Reporting Period
Total Amount Of Accumulated Raised Capital Invested 74,355.43
Total Amount for Accumulative Changed Raised
0
Capital
Total Amount Proportion for Accumulative Changed
0
Raised Capital
Total Amount Proportion for Accumulative Changed
0%
Raised Capital
Notes
In accordance with the Approval of Private Issue of Shares of Shenzhen Textile (Holding) Co., Ltd. issued by China Securities
Regulatory Commission ((2010) No. 882 CSRC Permit), the Company privately issued 91,397,849 ordinary shares in RMB in
2010. The total amount of raised proceeds was RMB 849,999,995.70. After deduction of issuance cost of RMB 21,231,992.66, the
actual net amount of raised proceeds was RMB 828,768,003.04. ，The above-mentioned raised proceeds were deposited into a
special account for raised proceeds on July 22, 2010. Shenzhen Pengcheng Certified Public Accountants Co., Ltd. confirmed the
raised proceeds after examination and verification and issued Shen Peng Suo Yan Zi (2010) No. 278 Capital Verification Report. As
of June 30, 2012, RMB 743.5543 million was accumulatively spent on the construction of the project of polarizer sheet for
TFT-LCD and purchase of materials and equipment. The investment progress is 89.72%.
20
2. The Company raised funds
Unit:RMB‘0000
Balance
between Total
Total Amount
Projects Total Amount Amount for
Total Amount for Access to Change
Changed of Raised Total Amount Accumulative Achieve the
Invested within Accumulative Usable Date Benefits in the Greatly for
Promised Projects of Investment （Including Capital For of Adjusted Invested Expected
the Reporting Put up to the For Projects Reporting Projects
Part of Investment Investment & Promised Benefits
Period End of Period Period Feasibility
Changing） Promised Up To The End
(2)
of Period (3)＝
(2)-(1)
Promised Projects of Investment
Line 4:April
Phase-I project of polarizer sheet 2012; Line
No 82,876.8 82,876.8 8,517.71 74,355.43 89.72% 0 Not applicable No
for TFT-LCD 5:September
2012.
Subtotal of the committed
- 82,876.8 82,876.8 8,517.71 74,355.43 - - 0- -
investment projects
Intended investment with unbooked
proceeds
Repayment of bank loan（If any） - - - - -
Replenishing the working capital（If
- - - - -
any）
Subtotal of intended investment
- - - - -
with unbooked proceeds
Total - 82,876.8 82,876.8 8,517.71 74,355.43 - - - -
Analysis For Failure To Reach The
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
Planned Schedule And Earnings
the 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
Not applicable
feasibility of the project
21
Amount, application and application
Not applicable
progress of the unbooked proceeds
About the change of the
implementation site of the projects Not applicable
invested with the proceeds
About the initial investment in the
On September 7, 2010, the company used RMB 101.8399 million of raise funds to replace the amount of invested in advance self-financing funds.( (Refer to No.
projects planned to be invested with
2011-37 Announcement of the Company for details)
the proceeds and the replacement
The idle funds-raised are used to temporarily supplement the current funds of RMB 80 million on August 18, 2010, and which has been returned to the special
Using the idle proceeds to
account of funds-raised in February 18, 2011. .( (Refer to No. 2011-03Announcement of the Company for details)
supplement the working capital on
The idle funds-raised are used to temporarily supplement the current funds of RMB 80 million on February 22, 2011, and which has been returned to the special
temporary basis
account of funds-raised in August 20, 2011 .(Refer to No. 2011-30 Announcement of the Company for details)
Balance of the proceeds in process
of project implementation and the Not applicable
cause
About application and status of the
As of June 30, 2012, The balance amount of fundraising special account is RMB 97.4221 million, it will be fully used in committed investment project.
proceeds unused
Problems existing in application of
the proceeds and the information None
disclosure or other issues
22
3. The information of the changes of projects raising funds
□ Applicable√ Not applicable
4. Important investment of the Company using non-raised proceeds
□ Applicable√ Not applicable
（III）Revising of business plan of the second half of year by the Board
□ Applicable√ Not applicable
（IV）Prediction of Business performance for Jan-Sept 2012.
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
√Applicable □Not applicable
Forenotice of earnings :Losses
Type of data filled for the prediction
□ actual figures √ interval figures
Same period of
Year beginning to end of next
the previous Increase or decrease%
report period
year
Estimated amount of
□ -- □ Increase v
accumulative net -11,000 -- -9,000 4,268 -358% -- -311%
Decrease
profit(RMB‘0000)
Basic earnings per shares □ -- □ Increase v
-0.33 -- -0.27 0.13 -354% -- -308%
(Yuan/share) Decrease
No.4 production line of phase-I project of polarizer sheet for TFT-LCD of the Compan
y is still in the stage of trial production level 2. As testing the stability of the device
technics, will be produced stably , according to the feedback of the customers，the
adjustment and optimization of processes, raw material cost increased than before.
Due to the high price of raw materials, a substantially increase in the cost, it is expecte
Notes to forenotice of d that company will accumulatively losses on net profit of RMB 90 - 110 million. in th
earnings e next report period. The Company has taken effective measures in respect of raw mate
rial cost control, shortening of time for product certification and improvement, potentia
l tapping and efficiency enhancement, trying to reduce cost and decrease loss. The data
disclosed in 2012 third quarter report of the Company shall prevail. The estimated
earnings have not been pre-audited by certified public accountants.
（V）The management‘s remarks on the ―non-standard opinions‖ by the auditors for the report
period
□ Applicable√ Not applicable
（VI）The management‘s remarks on any changes in and results of issues related to the ―non
opinions‖ by the auditors for the previous year.
□ Applicable√ Not applicable
（VII）Results of discussion by the Board on the causation and impact of change in accounting
policies and estimations or correction of material accounting errors..
□ Applicable√ Not applicable
23
（VIII）Establishment and Implementation of Cash Dividend Policy of the Company
1. The Provision and Execution of Profit Distribution Policy based on the Original "Articles"
(1) The reasonable return on investment to the investors should be attached importance in the profit
distribution of the company
(2) If no cash dividend announcement of profit distribution presented, the board of directors should
detail the reasons for the undistributed dividends and the purpose for the undistributed dividends
funds kept in the company. If the accumulative distribution profits by cash in the recent three years
are less 30% than the annual distributable profits achieved in the last three years, it is prohibited to
issue new stock to the social public, issue convertible corporate bonds or potentially sell the shares
to the original shareholders.
(3) The company can allocate the dividends in cash or stock. If there exists the situation that
shareholders illegally occupy the company's funds, the company should deduct those shareholders'
cash dividends allocated by the company for repayment of the occupied funds.
The company has strictly followed and implemented the profit distribution policy provided in the
"Articles" of the company, and periodically disclosed the reasons for the undistributed dividends
and the purpose for the undistributed profits in the report.
2. Work on the Implementation of the Requirements of "Notice on Further Implementation of the
Issues related to the Cash Dividends of Listed Companies" of The China Securities Regulatory
Commission (CSRC) and the Transparency Improvement of Profit Distribution Policy
In order to perfect and improve the scientific, sustained and stable dividend decision and monitor
mechanism of the company, actively repay the investors and fully safeguard the company's
shareholders to have the right of assets return under the law, the company has made the emendation
for the terms of profit distribution (especially the cash dividends policy) and some other terms
involved in the "Articles" of the company, and formulated "Shareholder Return Plan (2012 to
2014)".
The Proposal for Revising the Articles of Association and the Proposal for Formulating the Plan for
Return to Shareholders (2012-2014) were examined and adopted at the 21st meeting of the fifth
board of directors held on June 18, 2012 and the second provisional shareholders' general meeting
in 2012 held on July 12, 2012. Independent directors expressed independent opinions. Refer to the
Announcement of Resolutions of the 21st Meeting of the Fifth Board of Directors (2012-18) and the
Announcement of Resolutions of the Second Provisional Shareholders' General Meeting (2012-28)
in 2012 disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn on
June 19, 2012 and July 13, 2012 for details. The revised Articles of Association of the Company and
Plan for Return to Shareholders (2012-2014) concretely stipulate and plan the Company's profit
distribution policy ( especially cash dividend policy) and return to shareholders in the next three
years. The form and interval of profit distribution, conditions, proportion and time of cash dividend
distribution, the decision-making procedure for stock dividend distribution and profit distribution,
the principle of adjusting profit distribution policy and information disclosure of profit distribution
are stipulated in detail.
Details are as follows:
(1) The form of profit distribution: the company can take cash, stock or combined together, or other
methods permitted by the laws and regulations to allocate the profits. On the premise of the
24
earnings and cash able to meet the sustainable management and long-term development, the
company will positively promote to allocate the profits in cash.
(2) An interval during the profit distribution: if meet the condition of profit distribution, the
company generally makes the distribution of profits annually, can also make semi-annual profits
distribution according to the earnings and funds demand status of the company.
(3) The cash dividends: ① the company implements the cash dividends when the conditions are
met simultaneously as follows: A. the company has been profitable and has positive undistributed
profits in this year; B. there not exists the accumulative expenditure exceeds 30% of the total assets
audited during the latest period in the next 12 months, and the situation of over RMB50 million of
major capital expenditure (except for the capital expenditure for the fund-raising project by issuing
the stocks). ② the proportion and time for the company implementing the cash dividends: if the
profit distribution policy and the conditions of cash dividends are met, the company will conduct a
cash dividend in principle after the convening of annual shareholders meeting each year, the Board
of Directors can propose to make a semi-annual cash dividend according to the status of profits and
capital requirements. ③ the company should keep the continuity and stability of profit distribution
policy. If the conditions of cash dividend are met by company, the annual profits distributed in cash
should not be less 10% than the distributable profits achieved of the year. At the same time, the
accumulative profits distributed in cash should not be less 30% than the annual distributable profits
in any consecutive three annual finances.
(4) Granting the stock dividends: the company can conduct profits distribution by granting the stock
dividends on the premise of ensuring the reasonable cash dividends proportion minimum and
capital stock dimensions, while maintaining the capital expansion and performance growth adapted
each other according to the situations of profits available to distribute, provident funds and cash
flow.
(5) The decision-making procedure of profits distribution: A. the general manager of the company
can propose the scheme of profits distribution to the Board of Directors according to the Articles of
Association and the provisions related to Shareholder Return Plan, and combined with the
company's earnings situation, cash flow status, development stage, capital demand, bank credit,
debt financing environment and other situations. B. the Board of Directors should take full account
of the current and future earnings scale, cash flow status, development stage, capital demand, bank
credit, debt financing environment and other situations on the basis of the consideration of the profit
distribution scheme proposed by the company's management, and formulate the annual or
semi-annual profits distribution plan, combined with the views of shareholders (especially the
minority shareholders), independent directors and supervisors. C. the annual or semi-annual profits
distribution plan of the company will be implemented after passed by the Board of Directors and the
general meeting of shareholders. The independent directors shall voice their opinions for the profits
distribution plan of the company.
(6) The adjustment principle of the profit distribution policy: the profit distribution policy
determined in the Articles of Association (especially the cash dividend policy) and the adjustment
or modification conducted for it should meet the conditions stipulated in the Articles of Association
and be passed by fulfilling the corresponding decision-making procedure after detail argument and
over 2/3 voting rights held by the shareholders attending the general meeting of shareholders
25
(including the proxies of shareholders). Meanwhile, the company should facilitate the shareholders
(especially the minority shareholders) to participate in the general meeting of shareholders through
the voting on Internet and fully listen to the opinions of independent directors and minority
shareholders.
(7) Information disclosure of profits distribution: A. the company should disclose the profits
distribution scheme (including the cash dividends scheme), the plan of provident funds converted
into share capital and the details of establishment and implementation of the cash dividend policy in
the periodic reports, for which, the independent should issue their independent views. B. the
company, in the periodic reports, should disclose the profit distribution scheme, the plan of
provident funds converted into share capital or the implementation of plan of new stocks issued
which is studied out in the prior period and implemented in the period of report. C. If the company
has the earnings but the Board of Directors haven't made the cash profits distribution plan in this
year, the company should disclose the reasons in the periodic report and explain the purpose and
plan on the undistributed dividends funds kept in the company, while the independent directors
should give their independent views.
(8) If there exists the situation that shareholders illegally occupy the company's funds, the company
should deduct those shareholders' cash dividends allocated by the company for repayment of the
occupied funds.
The company offers a variety of ways (telephone, fax, e-mail, interactive platform, etc.) to receive
all the shareholders' advice and supervision on the dividends of the company.
（IX）Profit distribution or capitalizing of common reserves
(X)Situation Of positive retained profit at end of 2011 but no cash dividend was proposed
√applicable □not applicable
Accumulative retained profit at end of 2011 182,653,149.09
Usage of the undistributed capital It will be fully used for the operation of liquidity
If produced gains √ Yes □ No
Reason for diversity between actual and expected gains Not applicable
Other remarks None
（XI）Establishment and Implementation of the Registration and Management System on Learners
of Insider Information
During the reporting period, the company complies with the relevant requirements of ―Provisions on Registration
and Management System on Learner of Insider Information Established by Listed Company‖ of China Securities
Regulatory Commission and ―No.34 of Registration and Management Items on Learner of Insider Information in
Information Disclosure Business Memo‖ of Shenzhen Stock Exchange, and has amended the original
―Registration System on Learner of Insider Information‖, which is implemented after examined and adopted by
the 17th Board of Director of 5 Session of the company on December 30, 2011.The relevant supporting
documents, such as ―Archives of Learner of Insider Information‖, ―Memo of Major Matters Process‖,
26
―Confidentiality Agreement‖ and ―Announcement of Forbidding Insider Transaction‖, have been established for
the emended ―Registration and Management System on Learner of Insider Information‖, and formed the strictly
institutional restriction for the prevention of insider transactions. The company has signed ―Confidentiality
Agreement‖ with the senior executives and the staffs in the key post, clearly defined the scope of insider
information, the confidentiality obligations and the liability for breach of contract of employees, and conducted
the mandatory constraints for the behavior which leads to the disclosure of insider information due to the violation
of regulations. Meanwhile, the company organizes the relevant personnel to participate in special training and case
study of the prevention of insider transactions, in order to enhance the relevant personnel‘s knowledge and
comprehension to the seriously legal results issued by the insider transactions.
When the company plans and arranges the non-public issuance matters, it can strictly follow the provisions of
―Registration and Management System on Learner of Insider Information‖ to control the scope of learners of
insider information, completely register the information of learner of insider information, timely deliver
―Announcement of Forbidding Insider Transaction‖ to the relevant personnel that learns about the insider
information, and prompt that no the company‘s stock is in the transaction. Also, shouldn‘t recommend others to
trade the company‘s stock, and announce that there are the measures of responsibilities taken and penalties
received if the violation of relevant provisions. At the same time, sign the ―Confidentiality Agreement‖ with the
classified personnel to remind they to perform the confidentiality obligations, and fill in the ―Memo of Major
Matters Process‖ as per the transaction stages, which has recorded the personnel participating in the
decisions-making and the content of resolutions at every time point in the plan and arrangement progress, and
asked the participant to sign for confirmation.
In the report period, There is no the situation that the insider information learner deals with the
company's stocks and its derivative variety. But there exists the situation if the company and its
relevant personnel will be taken the regulatory measures or administrative penalties by the
regulatory department because of the implementation of the Registration and Management System
on Learners of Insider Information or the suspicion of insider transaction.
（XII）Other Disclosures
1. The Progress on the Project 1 of TFT-LCD Polarizer
During the reporting period, the "Project 1 of TFT-LCD polarizer" has progressed smoothly. Line 4
(wide) host devices have the successful completion and acceptance, and have started the first phase
of trial production. Line 4has passed the part downstream Panel optical product specification and
reliability verification, have received company small batch orders, Line 4 planned for mass
production stage in December 2012. Line 5 (Narrow) of three host equipments currently have been
completed the installation, positioning and original commission, the trial production will be planned
to start up by the end of the third quarter of 2012, and the trial mass production will be able to
accomplished in Oct.01, 2012，3 months in advance compare to the original project of at the end of
December. The company has deeply communicated with major panel manufacturers through the
products technical communication, the products development combined and other ways, and
achieved the intent of cooperation with the major downstream panel manufacturers. Currently, the
company has respectively signed "Cooperation Agreement" and "Cooperation Agreement of
Product Sales" with BOE and Highbroad (details please see the Announcement 2012-22 and
2012-23 of the company).and signed‖ Confidentiality agreement― with the Mainstream Panel
manufacturers such as Shenchao Opotoelectric, Longteng photoelectric, HannStay Display
Corporation.
27
2. Technological Innovation and Environmental Protection
During the reporting period, Shenzhen Optoelectronics Company has adopted the heating on boiler
methods with fuel for the Project 1 of TFT-LCD polarizer, purchased RBM13 million of special
wastewater and exhaust gas treatment equipment, effectively controlled the emission of wastewater
and exhaust gas, and ensured the stable artwork while meeting the requirement of energy saving and
elimination reducing. The relevant departments of Human Settlements and Environment
Commission of Shenzhen Municipality have conducted the acceptance and inspection for the
wastewater and exhaust gas treatment equipment and agreed the treatment devices of industrial
wastewater, exhaust pollution to be put into trial operation.
During the reporting period, Shenzhen Optoelectronics Company has injected RMB22.1278 million
on R&D, and mainly carried out the research and development for the monitor with general
polarizer, the monitor with EWV polarizer, VA mode with TV polarizer and the prospective study
of function coating TAC film. At the end of the reporting period, SAPO has had 28 patents
(including those accepting) including 10 invention patents, in which the national standard of "Test
Methods of Optical Performance, Weather Ability and Caking Property of LCD Polarizer" has
prepared and started to implement in August, 2011, and the industry standard of "LCD Polarizer"
has prepared and will be started to carry out in July, 2012. Shengbo is in a leading position in the
aspects of independent innovation and core technology control, has dominant technology in
business and industry, and has strong influence and high visibility in the market and the industry.
（XIII）Change in liability and credit situation, and cash arrangement for reaping of debts.
□ Applicable√ Not applicable
VII. Important Events
1.Governance of the Company
The company has strictly abided by the requirements of relevant laws, rules and regulations of
―Corporate Law‖, ―Securities Law‖ and China Securities Regulatory Commission, and continuously
standardized the company operations. During the reporting period, the company has amended a
series of systems, such as "Articles" and "Three Conference" procedure rules in order to further
improve the governance structure of the company, and perfect the scientific, sustained and stable
dividends decision-making and supervision mechanisms. At present, the actual situation of the
corporate governance and the requirements of regular documents of listed companies governance
issued by China Securities Regulatory Commission basically are the same.
2. Non-Normative Governance Conditions
The company's controlling shareholder of Shenzhen Investment Holdings Co., Ltd. (hereinafter
referred to as "Shenzhen Investment Managements") is a corporate straight supervised by Shenzhen
SASAC. The shareholders executives report the undisclosed information on the relevant provisions
of state assets management to the controlling shareholders, the main contents are: monthly report
the monthly financial index express, the implementation of expenditure budget and the cash flow
statement; and quarterly report the bank deposit and lending form, the financial assets schedule
available to sales, the investment property schedule and the non-operation profit and loss summary.
28
In order to strengthen the management of non-public information, the company strictly controls the
insider range, standardizes the information transfer processes, and reports the information of the
insiders and their relatives to Shenzhen Securities Regulatory Bureau according to the provisions.
The company has revised "Management System on Learner of Insider Information", improved the
management processes of the undisclosed information, and strictly implemented according to the
system.
3. The Progress of Internal Control Norms Construction
During the reporting period, the company has complied with the requirements of relevant laws and
regulations and combined with the actual situation of the company to amend "Articles" and "Three
Conference" procedure rules in order to further perfect the governance structure and improve the
standardized operations. In addition, the company has revised and perfected "Investment
Management System", "Guarantee Business Management System", "Budget Management System"
and other basic management systems, established "Funds-Raising Management System", and
conducted a semi-annual testing work for the internal control of the company.
During the reporting period, the company has also updated and improved the issues existed in the
operation of "Internal Control Manual 2012", which has been issued and implemented formally on
June 5, 2012.
On April 18, 2012, The annual general meeting of shareholder in 2011 has decided to employed
Zhongqin Accounting Office Ltd. as the annual audit organization in 2012 and the audit
organization of internal control (details please see the Announcement 2012-15) on April 18, 2012.
Also, the company has held the special audit communication meeting of internal control on June 12,
2012, fully communicated and exchanged with the Accounting Office of annual audit of internal
control on the internal control construction, the self-evaluation methods of internal control, the audit
range and plan of internal control and other items in 2012, and reached a consensus.
（II）Dividend plans, reserve capitalizing plans, or share issuing plans proposed in previous period
and implemented in the current period.
□ Applicable√ Not applicable
（III）Importance lawsuits and arbitration
□ Applicable√ Not applicable
The Company was not involved in any Importance lawsuit or arbitration in the report period.
（IV）Bankruptcy or capital reorganizing
□ Applicable√ Not applicable
（V）Holding other PLC‘S shares or participating of financial entities
1. Securities investment
□ Applicable√ Not applicable
29
2. Holding of other PLC’S shares
√ Applicable □Not applicable
Profits
or Changes of
Initial
Stock Stock Proportion of Book value at losses owners‘ equity
investment Subject of accounting calculation Resource of share
code abbreviation shareholding period-end in the in the report
amount
report period
period
ST Victor Sponsor shares
000018 11,356,638.86 5.46% 54,720,892.48 32,867,334.53 Financial assets available for sale
Onward A
*ST Sengrun Debt restructuring repayment of shares
000030 9,847,598.31 0.34% 8,635,021.08 -305,577.23 Financial assets available for sale
A
Total 21,204,237.17 -- 63,355,913.56 32,561,757.3 -- --
30
3.Shareholding in non-listed financial entities
□ Applicable√ Not applicable
4.Trading of other PLC’S shares
√ Applicable □Not applicable
Number of shar Buy/sell shares
es at beginning in the report pe Number of shar Used the amou
Generated
Name
of period riod es at end of peri nt of Capital investment returns
od(shares) （RMB） （RMB）
（shares）
ST Victor Onward A 9,543,394 -300,000 9,243,394 1,831,067.4
*ST Sengrun A 1,085,733 -100,000 985,733 0 545,725.07
The total investment income made during the reporting period of the new shares is RMB 0
（VI）Asset trade
1. Acquisition or swap in of assets
□ Applicable√ Not applicable
2. Disposal or swap out of assets
□ Applicable√ Not applicable
3.Asset exchange
□ Applicable√ Not applicable
4.Merger of entities
□ Applicable√ Not applicable
5. The progress of the event after the publishing of asset reorganization report or announcement of
acquisition or disposal of assets and its influence on the operating results and financial status for the report
period.
□ Applicable√ Not applicable
（VII）Statement on share increasing proposal raised by the holding shareholder or its action-in-concert
parties in the report period
□ Applicable√ Not applicable
31
（VIII）Implementation and influences of share equity incentive program
□ Applicable√ Not applicable
（IX）Important Related transactions
1.Related transactions related to daily operation
□ Applicable√ Not applicable
2.Related transactions related to asset purchasing or disposal
□ Applicable√ Not applicable
3.Material related transactions related to collaborated external investment
□ Applicable√ Not applicable
32
4. Credits/Debts with Related Parties
√Applicable □ Not applicable
Financing of related party to the
The Company's financing to related party(RMB‘0000)
Company(RMB‘0000)
Inter Balance Intere
Balance Inter Refun Balanc Inte
Related parties related relation Balance at the Refund est at the st
at the est Amou d amo e at the rest
beginning Amount amount expe beginnin expen
end of retur nt unt end of retu
of period nse g se
period n period rn
of period
Shenzhen Tianlong Industry and Trade Co., Ltd. Joint enterprise 68.64 68.64
Shenzhen Dailishi Underwear Co., Ltd. Sharing company 26.58 -81 -81 -54.42
Jordan Garment Factory Affiliated enterprise 18.39 -18.39 -18.39 0.00
Shenzhen Xieli Automobile Co., Ltd Joint enterprise 16.93 -16.93 -16.93 0.00
Anhui Huapeng Textile Co., Ltd. Sharing company 180.00 -180.00 -180 0.00
Shenzhen Zhongxing Fibre folds cotton Clothing ornament Controlling
61.88 -61.88 -61.88 0.00
Co., Ltd. Subsidiary
Shenzhen Xinfang Knitting Co., Ltd. Sharing company 21.68 21.68
Shenzhen Xiangjiang Leather Produce Co., Ltd Sharing company 24.00 24.00
Shenzhen Changlianfa Printing & dyeing Company Affiliated enterprise 80.71 -5.46 -5.46 75.25
Shenzhen Hengseng Investment Company Sharing company 136.79 136.79
Shenzhen Haohao Property Leasing Co., Ltd .Joint enterprise 340.39 340.39
Total 372.42 -358.2 -358.2 14.22 603.57 -5.46 -5.46 598.11
33
The amount that the company provided to the controlling shareholder of the compa
ny and its subsidiaries during the reporting period 0.00
（RMB‘0000）
The balance of the funds that the company provided to the controlling shareholder
0.00
of the company and its subsidiaries（RMB‘0000）
The reason of the associated debt Current amount
The settlement status of the associated debt Recover the associated claim of RMB 3.582 million, settle of associated debt RMB 0.0546 million
The commitment about the associated debt
The impact of the associated debt on the company's operating results and financial p
0.4317 million
osition
34
The Situations of Funds Occupied and Progress of Debts Paid during the Reporting Period
In the report period, The Company made more efforts to recover funds occupied by related parties and recovered the funds
owed by Shenzhen Xieli Automobile Enterprise Co., Ltd., Jordan Garment Manufactory and Shenzhen Zhongxing Fibre Folds
Cotton Clothing Ornament Co., Ltd. So far, Shenzhen Tianlong Industrial and Trading Co., Ltd. is the only related party that is
occupying the Company's funds for non-operating purposes. This company established a liquidation team and entered liquidation
procedure in 2009. The liquidation is expected to be completed in the third quarter of 2012.
The Responsibility Claim Scheme Proposed by the Board of Directors for the Debts Paid of
Non-Operation Occupied Funds Uncompleted by Listed Company by the End of the reporting
period
□ Applicable√ Not applicable
5.Other Important Related transactions
The first Provisional Shareholders' Meeting 2012 has approved the company to sign "Shares
Subscription Contract of Non-Public Issuance of Adjunction Conditions Taken Effect" with the
controlling shareholder of Shenzhen Investment Holdings Co., Ltd. on April 13, 2012, which will
subscribe the non-public issue of shares based on more than RMB300 million but not beyond
RMB600 million in cash for the construction of "Project 2 of TFT-LCD Polarizer"(Refer to No.
2012-14 Announcement of the Company for details). Currently, the company is fulfilling the approval
procedure of non-public issue of shares A.
（X）Important contracts and their performance
1.Trusteeship , contract, or leasing issues which contributes 10% or over of total profit of the period
（1）Trusteeship
□ Applicable√ Not applicable
（2）Contracts
□ Applicable√ Not applicable
（3）Leasing
□ Applicable√ Not applicable
2.Guarantees
√Applicable □ Not applicable
Unit ：RMB‘0000
External Guarantee (Exclude controlled subsidiaries)
Relevant Date of Actual Complete Guarante
Name of the Amount of Guarantee Guarantee
disclosure happening mount of implemen e
Company Guarantee type term
date/No. of (Date of guarantee tation for
35
the signing or not associate
guaranteed agreement) d
amount parties
(Yes or
no)
Total of external guarantee Total of actual external
0 0
approved in Period(A1) guarantee in Period(A2)
Total balance of actual
Total of external guarantee
0 external guarantee at 0
approved at Period-end(A3)
Period-end(A4)
Guarantee of the Company for the controlling subsidiaries
Guarante
Relevant e
Date of Complete
disclosure for
Name of the Amount happening Actual implemen
date/No. of Guarantee Guarantee associate
Company of (Date o mount of tation
the type term d
guaranteed guarantee signing guarantee or
guaranteed parties
agreement) not
amount (Yes or
no)
Shenzhen Shengbo
Not happen yet Guaranteed Guaranteed
Optoelectronic 2012-6-19 11,500 0 No
Technology Co., Ltd.
Shenzhen Shengbo
Not happen yet Guaranteed Guaranteed
Optoelectronic 2012-6-19 20,000 0 No
Technology Co., Ltd.
Total of actual guarantee
Total of guarantee for subsidiaries
31,500 for subsidiaries in the 0
approved in the Period (B1)
Period (B2)
Total of actual guarantee
Total of guarantee for subsidiaries
31,500 for subsidiaries at 0
approved at Period-end (B3)
Period-end (B4)
Total of Company’s guarantee（namely total of the large two aforementioned）
Total of actual guarantee in
Total of guarantee in the Period
31,500 the Period 0
(A1+B1)
(A2+B2)
Total of actual guarantee at
Total of guarantee at Period-end
31,500 Period-end 0
(A3+B3)
(A4+B4)
The proportion of the total amount of actually
guarantee in the net assets of the Company(that is A4+ 0
B4)
Including：
Amount of guarantee for shareholders, actual controller and its 0
36
associated parties(C)
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 0
70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of
0
the Company exceed 50%(E)
Total guarantee amount of the abovementioned
0
guarantees(C+D+E)
Explanations on possibly bearing joint and several liquidating
Not applicable
responsibilities for undue guarantees
Remarks on illegal providing of external guarantee Not applicable
3.Entrusted capital management
□ Applicable√ Not applicable
4.Performing of material contracts
□ Applicable√ Not applicable
5.Other material contracts
√Applicable □ Not applicable
(1) During the reporting period, Shenzhen Optoelectronics Technology Co., Ltd., a wholly-owned
subsidiary of the company, has achieved the intent of cooperation on the development, introduction
and subsequent cooperation of BOE polarizer with BOE Technology Group Co., Ltd., and signed
"Cooperation Agreement"(Refer to No. 2012-22 Announcement of the Company for details). Currently, the
agreement is in the normal performance.
(2) During the reporting period, Shenzhen Shengbo Optoelectronics Technology Co., Ltd., a
wholly-owned subsidiary of the company, has achieved the intent of cooperation on the polarizer
purchase with Highbroad High-Tech Materials (Hefei) Co., Ltd., and signed "Cooperation
Agreement of Product Sales" (details please see the Announcement 2012-23 of the company) in the
principle of long-term cooperation, mutual benefit and common development"(Refer to No. 2012-23
Announcement of the Company for details).Currently, the agreement is in the normal performance.
（3）The Company and Shenzhen Shenchao Technology Investment Co., Ltd. signed Cooperation Agreement and Entrusted Loan
Contract on June 25, 2010. The said agreement and contract are under normal performance. RMB 200 million borrowed by Shengbo
Optoelectronic from Shenzhen Shenchao Technology Investment Co., Ltd. has been available for use (Refer to No. 2010-26
Announcement of the Company for details).
（XI）Statement on issuing of company bonds
□ Applicable√ Not applicable
37
(XII)Fulfilling of commitments
1.Commitment made by the PLC, Its directors, supervisors, executives, and shareholders with 5% over shares of
the Company , and its substantial dominator in the report term or carried over to the report term :
Items of commitments Promisee Content of commitments Date Time Implementation
As Shenzhen Investment Holdings Co., Ltd., the controlling
shareholder of the company, committed when the
restricted-for-sale shares from the shares restructuring were
listed for circulation in the market: i. if they plan to sell the
shares through the securities exchange system in the future,
Shenzhen
and the decrease of the shares they hold reaches 5% within 6
Promise in share holding Investment Under
months after the first decrease, they will disclose an
structure reform Holdings Co., Fulfillment
announcement indicating the sale through the company
Ltd.
within two trading days before the first decrease; ii. They
shall strictly observe the ―Guidelines on Transfer of
Restricted-for-sale Original Shares of Listed
Companies‖ and the provisions of the relevant business
principles of Shenzhen Stock Exchange.
Commitments made in
Acquisition Report or
Reports on Change in
interests
Commitments made in
Material assets
Reorganization
Shenzhen Investment Holdings Co., Ltd. signed a ―Letter of
Commitment and Statement on Horizontal Competition
Avoidance‖ when the company issued non-public stocks in
2009. Pursuant to the Letter of Commitment and Statement,
Shenzhen Investment Holdings Co., Ltd. and its wholly
owned subsidiary, subsidiaries under control or any other
companies that have actual control of it shall not be
Shenzhen
involved in the business the same as or similar to those
Commitments made in Investment Under
Shenzhen Textile currently or will run in the future, or any
issuing Holdings Co., Fulfillment
businesses or activities that may constitute direct or indirect
Ltd.
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
38
equity, assets 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 wholly owned
subsidiaries, subsidiaries under control or other companies
that have actual control of it and Shenzhen Textile,
Shenzhen Textile shall have priority. The commitments
during the period non-public issuance in 2012: 1. Shenzhen
Investment Holdings, as the controlling shareholder of
Shenzhen Textile, currently hasn't the production and
business activities of inter-industry competition with
Shenzhen Textile or its share-holding subsidiary. 2.
Shenzhen Investment Holdings and its share-holding
subsidiaries or other enterprises owned the actual control
rights can't be directly and indirectly on behalf of any
person, company or unit to engage in the same or similar
business in any districts in the future by the form of
share-holding, equity participation, joint venture,
cooperation, partnership, contract, lease, etc., and ensure not
to use the controlling shareholder's status to damage the
legitimate rights and interests of Shenzhen Textile and other
shareholders, or to gain the additional benefits. 3. If there
will be the situation of inter-industry competition with
Shenzhen Textile for Shenzhen Investment Holdings and its
share-holding subsidiaries or other enterprises owned the
actual control rights in the future, Shenzhen Investment
Holdings will promote the related enterprises to avoid the
inter-industry competition through the transfer of equity,
assets, business and other ways. 4. Above commitments will
be continuously effective and irrevocable during Shenzhen
Investment Holdings as the controlling shareholder of
Shenzhen Textile or indirectly controlling Shenzhen Textile.
Other commitments
offered to the
company‘s minority
shareholders
Whether the
commitments
√Yes □ No
fulfilled in a timely
manner
The specific reason Not applicable
for the unfinished
39
commitments and
the next step
Whether leads to
competition and the
problem of related Not applicable
party transaction
commitment
Committed settled
Not applicable
deadline
Solution way Not applicable
Commitments fulfill
Not applicable
status
2..Statement on the situation of predicted profit on assets or projects, and actual results of the same .
□ Applicable√ Not applicable
（XIII）Other misc. income subjects
Unit ：RMB
Items Occurred current term Occurred in previous term
1．Gains(losses)from sellable financial assets 13,436,517.7 -4,748,623.88
Less：Income tax influence of sellable financial assets 3,506,504.42 -1,074,410.15
Net amount written into other gains and transferred into gain/loss in
669,750 978,174.72
previous terms
Subtotal 9,260,263.28 -4,652,388.45
2．Shares in the other misc. income subjects in the investee on equity
basis
Less：income tax influence of shares in other gains of investees on
equity basis
Net amount written into other gains and transferred into gain/loss in
previous terms
Subtotal
3．Amount of gains(or losses) from cash flow hedge instrument
Less: Income tax influence of cash flow hedge instruments
Net amount written into other gains and transferred into gain/loss in
previous terms
Adjusted amount transferred to initial amount of the target project
Subtotal
40
4．Difference from translating of foreign currency financial statements
Less: Net amount of disposing overseas Business and transferred to
current gain/loss
Subtotal
5．Other
Less：Income tax influence by other accounted into other misc. incomes
Net amount accounted into other misc. income and transferred into
current gain/loss in previous terms
Subtotal
Total 9,260,263.28 -4,652,388.45
（XIV）The registration form of acceptance of investigation, communication and interview in the report period
for future reference
Content of discussion and
Date Place Mode Type Visitor
materials provided
Get the idea of the inform
ation of the team,the requi
February 9,2012 The Company Investigation Organization Guangfa Fund rement of the good rates，
research and development
of Polarizer project.
Zhongshan
Securities ,
Dongguan
Securities ,
First Capital , Get the idea of trying to m
Minshen ass produce of line 4 of ph
February 20,2012 The Company Investigation Organization Investment ,Ch ase-I project of polarizer s
ina Southern heet for TFT-LCD
Fund ,Dacheng
Fundm
Guangfa
Securities and
CIFM
China
Get the idea of trying to m
Merchants
ass produce of line 4 of ph
Securities ,
April 17,2012 The Company Investigation Organization ase-I project of polarizer s
Capital
heet for TFT-LCD
Synergy ,Dong
guan Securities
41
and China
Investment
Securities
China
Get the idea of the inform
May 17,2012 The Company Investigation Organization Merchants
ation of the Polarizer
Banks VIP
Get the idea of the
June 19,2012 The Company Investigation Organization Huaxia Fund business and development
of Polarizer sheet project.
Had contacted by tel
Get the idea of the
ephone for several ti
January-June 2012 The Company Individual Individual business and development
mes
of Polarizer sheet project
（XV）Engagement and removal of certified public accountants
If the Semi-annual Report is audited
□ Yes √ No
（XVI）Punishment on the Company and/or the directors, supervisors, executives, shareholders,
substantial controller, and purchasers, and correcting of misbehaviors
□ Applicable√ Not applicable
（XVII）Other Material events
1. Non-public issuance in 2012
On February 10, 2012,The 18th meeting of the fifth board of directors of the Company examined and adopted the
Proposal Concerning the Company's Private Issue of Shares to Specific Investors in 2012. The Company planned
to privately issue not more than 170 million shares to not more than 10 specific investors at the price of RMB 8.80
per share. The total amount of raised proceeds does not exceed RMB 1470.93 million, which will be completely
used for increasing the capital of Shenzhen Shengbo Optoelectronic Technology Co., Ltd., a wholly-owned
subsidiary, to construct the phase-II project of polarizer sheet for TFT-LCD. This project will construct two
production lines of polarizer sheet for TFT-LCD with breadth of 1490mm( Announcement No.:2012-3).
On March 1, 2012，Shengbo Optoelectronics obtained Notice of Putting Social Investment Projects issued by
Shenzhen Development and Reform Committee( Announcement No.:2012-6).
On March 14, 2012，The Company obtained the Approval of the Issues Concerning Private Issue of Shares by
Shenzhen Textile from State-owned Assets Regulatory Commission under Shenzhen Municipal People's
Government( Announcement No.:2012-7).
The first Provincial provisional Shareholders' Meeting 2012 of the company has passed the items of non-public
issue of shares to the special investors on April 13, 2012( Announcement No.:2012-14).
On May 9, 2012, the company has received the "CSRC's Acceptance Notice of Administrative Licensing
Application" (No. 120702), and CSRC has conducted acceptance and examination on the administrative licensing
application materials of the "Non-Public Issue of Shares by Listed Companies" of the company. If the application
42
materials are full and in compliance with the statutory form, the administrative licensing application will be
accepted( Announcement No.:2012-17).
2. Changes of Business Scope
The business scope of the company is changed to "production, textiles processing, knitwear, clothing, upholstery
fabrics, belts, trademark bands, handicrafts (without restrictions); general merchandise, the special equipment of
the textile industry, textile equipment and accessories, instruments, standard parts, raw textile materials, dyes,
electronic products, chemical products, mechanical and electrical equipment, light industrial products, office
supplies and domestic trade (excluding the franchise, the control and the monopoly of goods) ; operation of import
and export business." after approval of Shenzhen Market Supervisory Authority on July 17, 2012.
3. The Fire Accident in Longhua Plant
Afternoon on July 24, 2012, a fire accident has occurred on the equipment of pretreatment process working station
at the 3rd production line in the first floor of the Longhua plant of Shenzhen Shengbo Optoelectronic Co., Ltd., a
wholly-owned subsidiary of the company. No casualty but the production is suspended temporarily. There is the
initial estimation that the accident will cause RMB30 million of the annual business income decreased and
RMB3.5 million of the business profits reduced in 2012. After the fire accident, the company has immediately
launched the emergency plan, set up a on-the-spot command spot to verify the cause of the accident and
implement measures for the resumption of production, and strive to resume the production as soon as possible
(details please see the Announcement 2012-32).
Shengbo Optoelectronic. has three plants. Tianjian plant has one production line (Line 1), which
mainly produces TN polarizer; Longhua plant has two production lines, of which, Line 2 produces
TN/STN polarizer, and Line 3 produces the width of 650mm TFT and TN/STN polarizer; and
Pingshan plant has two production lines (Line 4 with the width of 1490mm and Line 5 with
650mm), which mainly produces TFT polarizer.
At present, Tianjian plant and Pingshan plant operate normally. The fire accident hasn't impact on
Project 1 of TFT-LCD polarizer (Line 4 and Line 5) in Pingshan plant, and the plan of Project 2
(Line 6 and Line 7). The company has made overall arrangement of resumption of production and
operation for Longhua plant of Shenzhen Shengbo Optoelectronic.Technology Co., Ltd., and is
cleaning in the workshop and reairing the damaged equipment at present. At the same
time,strengthen the communication with customers and the stability of customers, and use the produ
ction capacity of Tianjian plant and Pingshan plant to make up that of production stop in Longhua p
lant market supply.
（XVIII）Material change in profit ability, asset, and credit situation of the guarantor of the convertible bonds
□ Applicable√ Not applicable
（XIX）Index for information disclosed
Name and layout of Website for publishing and searching
Matter Date of publishing
newspapers for publishing path
Securities Times D4 and Hong
Eamings prediction 2012 January 10,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A21
43
Announcement of Suspension Securities Times B13 and Hong
February 4,2012 （http://www.cninfo.com.cn）
of Listing for Important Matter Kong Commercial Daily A7
Announcement of resolutions
Securities Times B3 and Hong
of the 18th meeting of the Fifth February 10,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A17
Board of Directors
Announcement of resolutions
of the 18th Securities Times B3 and Hong
February 10,2012 （http://www.cninfo.com.cn）
meeting of the Fifth Kong Commercial Daily A17
supervisory committee
Announcement of receipt of Securities Times D3 and Hong
February 16,2012 （http://www.cninfo.com.cn）
national aid by a subsidiary Kong Commercial Daily A19
Announcement of approval of
Securities Times D17 and Hong
phase-I project of polarizer March 2, 2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A13
sheet for TFT-LCD.
Announcement of Approval of
Private Issue by Shenzhen Securities Times D17 and Hong
March 5,2012 （http://www.cninfo.com.cn）
Stated-owned Asset Kong Commercial Daily A13
Commission
Announcement of resolutions
Securities Times D5 and Hong
of the 19th meeting of the Fifth March 27,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A27
Board of Directors
Announcement of resolutions
Securities Times D46 and Hong
of the 19th meeting of the Fifth March 27,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily B8
supervisory committee
2011 Annual Report and its Securities Times D46 and Hong
March 27,2012 （http://www.cninfo.com.cn）
Summary Kong Commercial Daily B8
Notice of Holding the
Securities Times D46 and Hong
Shareholders‘ General March 27,2012 （http://www.cninfo.com.cn）
Kong Commercial DailyB8
Meeting in 2011
Notice of holding 2012 first
Securities Times D46 and Hong
Provisional shareholders‘ March 27,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily B8
General Meeting
Announcement of Remindful in
2012 and Holding the First Securities Times B17 and Hong
April 7, 2012 （http://www.cninfo.com.cn）
Provisional Shareholders' Kong Commercial Daily A6
General Meeting in 2012
Announcement of Resolutions
of Second Provisional Securities Times B21 and Hong
April 14,2012 （http://www.cninfo.com.cn）
Shareholders' General Meeting Kong Commercial DailyA12
in 2012
Announcement of resolutions
Securities Times D8and Hong
of 2011 annual shareholders‘ July 19,2012 （http://www.cninfo.com.cn）
Kong Commercial DailyA20
General Meeting
The First Quarterly Report Securities Times D56 and Hong July 26,2012 （http://www.cninfo.com.cn）
44
2012 Kong Commercial Daily A11
Announcement of Acceptance
Securities Times D21 and Hong
of Application for Private Issue May 10,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A13
of Shares by CSRC
Announcement of resolutions
Securities Times D5 and Hong
of the 21st meeting of the Fifth June 19,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A4
Board of Directors
Announcement of resolutions
Securities Times D5 and Hong
of the 21st meeting of the Fifth June 19,2012 （http://www.cninfo.com.cn）
Kong Commercial DailyA4
supervisory committee
Notice of resolutions of the
second provisional Securities Times D5 and Hong
June 19,2012 （http://www.cninfo.com.cn）
shareholders‘ General Meeting Kong Commercial Daily A4
in 2012
Announcement of Providing
Guarantee to Wholly-owned Securities Times D5 and Hong
June 19,2012 （http://www.cninfo.com.cn）
Subsidiaries for Application for Kong Commercial Daily A4
Comprehensive Credit Line
Announcement of Signing of
Cooperation Agreement
Securities Times D5 and Hong
between A Subsidiary and June 19,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A4
Orient Electronics Technology
Group Co., Ltd.
Announcement of Signing of
Cooperation Agreement
Securities Times D20 and Hong
between A Subsidiary and June 20,2012 （http://www.cninfo.com.cn）
Kong Commercial DailyA24
Hanbo High-tech Material
(Hefei) Co., Ltd.
Announcement of resolutions
Securities Times B24and Hong
of the 22nd meeting of the Fifth June 30,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A23
Board of Directors
Announcement of resolutions
Securities Times B24 and Hong
of the 22nd meeting of the Fifth June 30,2012 （http://www.cninfo.com.cn）
Kong Commercial Daily A23
supervisory committee
Announcement of Follow-up
Notice of Adding Provisional
Proposals for the Second
Provisional Shareholders' Securities Times B24 and Hong
June 30,2012 （http://www.cninfo.com.cn）
General Meeting in 2012 and Kong Commercial Daily A23
Holding the Second Provisional
Shareholders' General Meeting
in 2012
45
XIII. Financial Report
1.Auditor's report
If the interim report is audited
□ Yes v No
2.Financial statements
Consolidated or not：
√Yes □ No
All figures in the financial statements are in RMB yuan except fro otherwise stated.
All figures in the Notes to the financial statements are in RMB yuan.
1. Consolidated Balance sheet
Prepared by:：Shenzhen Textile (Holdings) Co., Ltd.
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 355,092,917.42 468,879,357.7
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 7,017,560.61 10,432,562.82
Account receivable 65,661,291.99 56,969,205.31
Prepayments 12,953,644.67 13,018,880.05
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable
Dividend receivable
Other account receivable 33,903,605.53 20,736,467.89
Repurchasing of financial
assets
Inventories 79,199,714.13 71,575,724.23
Non-current asset due in 1
year
Other current asset
Total of current assets 553,828,734.35 641,612,198
Non-current assets：
Loans and payment on
46
other‘s behalf disbursed
Disposable financial asset 63,355,913.56 52,272,895.86
Expired investment in
possess
Long-term receivable
Long term share equity
47,615,721.11 47,316,633.57
investment
Property investment 158,210,179.53 161,658,463.35
Fixed assets 911,575,652.57 504,127,839.36
Construction in progress 54,791,026.04 334,788,805.45
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 45,531,812.25 46,568,689.89
R & D petrol
Goodwill 9,614,758.55 9,614,758.55
Long-germ expenses to be
1,295,568.95 1,625,608.41
amortized
Differed income tax asset 8,818,552.31 8,641,013.23
Other non-current asset
Total of non-current assets 1,300,809,184.87 1,166,614,707.67
Total of assets 1,854,637,919.22 1,808,226,905.67
Current liabilities
Short-term loans
Loan from Central Bank
Deposit received and hold for
others
Call loan received
Trade off financial liabilities
Bill payable
Account payable 62,586,615.52 40,064,666.59
Advance payment 18,919,751.4 15,512,620.9
Selling of repurchased
financial assets
47
Fees and commissions
receivable
Employees‘ wage payable 18,953,690.47 21,718,286.71
Tax payable -44,874,757.09 -20,266,912.29
Interest payable 10,500,959.08 5,546,514.63
Dividend payable
Other account payable 164,317,721.54 122,417,628.78
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1
year
Other current liability
Total of current liability 230,403,980.92 184,992,805.32
Non-current liabilities：
Long-term loan 200,000,000 200,000,000
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 10,931,757.09 7,845,002.67
Other non-current liabilities 53,149,567.39 45,760,504.07
Differed income 264,081,324.48 253,605,506.74
Total of liability 494,485,305.4 438,598,312.06
Owners‘ equity
Share capital 336,521,849 336,521,849
Capital reserves 823,801,152.58 814,540,889.3
Less：Shares in stock
Special reserves
Surplus reserves 35,912,706.22 35,912,706.22
Common risk provision
Undistributed profit 163,916,906.02 182,653,149.09
Different of foreign currency
translation
48
Total of owner‘s equity belong to
1,360,152,613.82 1,369,628,593.61
the parent company
Minority shareholders‘ equity
Total of owners‘ equity 1,360,152,613.82 1,369,628,593.61
Total of liabilities and owners‘
1,854,637,919.22 1,808,226,905.67
equity
2. Balance sheet of the Parent Company
Unit：RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 30,852,896.74 133,011,826.29
Trading financial assets
Bill receivable 1,400,000
Account receivable 80,052.15 323,582.19
Prepayments 1,716,180 1,719,680
Interest receivable
Dividend receivable
Other account receivable 12,357,812.65 13,020,387.68
Inventories
Non-current asset due in 1
year
Other current asset
Total of current assets 46,406,941.54 148,075,476.16
Non-current assets：
Disposable financial asset 63,355,913.56 52,272,895.86
Expired investment in
possess
Long-term receivable
Long term share equity
1,064,255,838.91 955,793,681.34
investment
Property investment 148,486,127.15 151,665,495.95
Fixed assets 32,531,810.3 33,578,271.19
Construction in progress 7,053,420.19 4,664,276.19
Engineering material
Fixed asset disposal
49
Production physical assets
Gas & petrol
Intangible assets 1,178,524.52 1,373,482.16
R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset 5,063,360.28 5,148,905.27
Other non-current asset
Total of non-current assets 1,321,924,994.91 1,204,497,007.96
Total of assets 1,368,331,936.45 1,352,572,484.12
Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable 524,843.57 1,388,181.57
Advance payment 639,024.58 639,024.58
Employees‘ wage payable 4,203,330.98 5,606,640.12
Tax payable 1,283,171.07 3,661,093
Interest payable
Dividend payable
Other account payable 69,395,823.07 68,280,337.84
Non-current liability due in 1
year
Other current liability
Total of current liability 76,046,193.27 79,575,277.11
Non-current liabilities：
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability 10,853,919.09 7,767,164.67
Other non-current liabilities
Total of Non-current liabilities 10,853,919.09 7,767,164.67
50
Total of liability 86,900,112.36 87,342,441.78
Owners‘ equity
Share capital 336,521,849 336,521,849
Capital reserves 815,218,170.79 805,957,907.51
Less：Shares in stock
Special reserves 0
Surplus reserves 35,912,706.22 35,912,706.22
Undistributed profit 93,779,098.08 86,837,579.61
Different of foreign currency
translation
Total of owners‘ equity 1,281,431,824.09 1,265,230,042.34
Total of liabilities and owners‘
1,368,331,936.45 1,352,572,484.12
equity
3. Consolidated Profit statement
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 375,432,991.91 319,182,717.75
Incl：Business income
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 400,741,324.31 297,505,664.4
Incl：Business cost 336,576,764.17 261,172,573.17
Interest expense
Fee and commission paid
Insurance discharge
payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 3,933,220.4 3,553,081.05
Sales expense 3,823,373.24 3,444,774.44
Administrative expense 52,925,299.5 30,654,365.07
51
Financial expenses 1,070,421.02 -4,343,761.14
Asset impairment loss 2,412,245.98 3,024,631.81
Add：Gains from change of
fir value （―-‖for loss）
Investment gain（―-‖for loss） 4,523,812.58 3,502,158.53
Incl: investment gains from
299,087.54 97,453.88
affiliates
Gains from currency
exchange（―-‖for loss）
III. Operational profit（―-‖for
-20,784,519.82 25,179,211.88
loss
Add：Non-business income 4,743,336.68 15,619,413.07
Less：Non business expenses 10,046.59 1,890.28
Incl：Loss from disposal of
9,996.59
non-current assets
IV.Total profit(―-‖for loss) -16,051,229.73 40,796,734.67
Less：Income tax expenses 2,685,013.34 8,432,757.98
V. Net profit（―-‖for net loss -18,736,243.07 32,363,976.69
Including: Net profit realized by
the entity taken over before the
takeover
Net profit attributable to the
-18,736,243.07 32,363,976.69
owners of parent company
Minority shareholders‘
equity
VI. Earnings per share： -- --
（I）Basic earnings per share -0.06 0.1
(II)Diluted earnings per share -0.06 0.1
VII. Other comprehensive income 9,260,263.28 -4,652,388.45
VIII. Total comprehensive income -9,475,979.79 27,711,588.24
Total comprehensive income
attributable to the owner of the -9,475,979.79 27,711,588.24
parent company
Total comprehensive income
attributable minority shareholders
Enterprise combination under same controlling at the end of current period. the net profit for the
enterprise to be combined is 0.00.
52
4. Profit statement of the Parent Company
Unit：RMB
Items Notes Report period Same period of the previous year
I. Income from the key business 28,206,871.07 27,412,012.19
Incl：Business cost 6,458,435.54 5,806,617.39
Business tax and surcharge 2,483,215.3 2,426,440.81
Sales expense
Administrative expense 15,163,331.76 13,462,239.34
Financial expenses -295,713.66 -4,084,479.09
Asset impairment loss -342,179.97 -146,202.21
Add：Gains from change of
fir value （―-‖for loss）
Investment gain（―-‖for loss） 3,980,880.01 2,960,216.9
Incl: investment gains from
299,087.54 97,453.88
affiliates
III. Operational profit（―-‖for
8,720,662.11 12,907,612.85
loss
Add：Non-business income 10,919,223.05
Less：Non business expenses 88.28
Incl：Loss from disposal of
non-current assets
IV.Total profit(―-‖for loss) 8,720,662.11 23,826,747.62
Less：Income tax expenses 1,779,143.64 5,293,501.14
V. Net profit（―-‖for net loss） 6,941,518.47 18,533,246.48
VI. Earnings per share： -- --
（I）Basic earnings per share 0.02 0.06
(II)Diluted earnings per share 0.02 0.06
VII. Other comprehensive income 9,260,263.28 -4,652,388.45
VIII. Total comprehensive income 16,201,781.75 13,880,858.03
5. Consolidated Cash flow statement
Unit ：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or 319,936,145.69 311,780,179.42
53
rending of services
Net increase of customer
deposits and capital kept for
brother company
Net increase of loans from
central bank
Net increase of inter-bank
loans from other financial bodies
Cash received against original
insurance contract
Net cash received from
reinsurance business
Net increase of client deposit
and investment
Net increase of trade
financial asset disposal
Cash received as interest,
processing fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax returned 24,564,034.8 23,683,459.82
Other cash received from
19,524,512.16 10,039,737.1
business operation
Sub-total of cash inflow 364,024,692.65 345,503,376.34
Cash paid for purchasing of
297,282,377.33 259,863,190.15
merchandise and services
Net increase of client trade and
advance
Net increase of savings n
central bank and brother company
Cash paid for original contract
claim
Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for 36,873,269.19 33,599,761.08
54
staffs
Taxes paid 20,257,096.42 18,805,471.26
Other cash paid for business
25,670,059.42 17,841,205.09
activities
Sub-total of cash outflow
380,082,802.36 330,109,627.58
from business activities
Cash flow generated by business
-16,058,109.71 15,393,748.76
operation, net
II.Cash flow generated by
investing
Cash received from investment
3,640,792.47 1,957,406.46
retrieving
Cash received as investment
1,210,300 1,654,292.08
gains
Net cash retrieved from
disposal of fixed assets, intangible 541,400 64,494
assets, and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Net cash received from disposal
of subsidiaries or other 208,638,835.75
operational units
Sub-total of cash inflow due to
5,392,492.47 212,315,028.29
investment activities
Cash paid for construction of
fixed assets, intangible assets and 101,715,739.19 330,575,486.29
other long-term assets
Cash paid as investment
Net increase of loan against
pledge
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
17,403.45
activities
Sub-total of cash outflow
101,733,142.64 330,575,486.29
due to investment activities
Net cash flow generated by -96,340,650.17 -118,260,458
55
investment
III.Cash flow generated by
financing
Cash received as investment
Incl: Cash received as
investment from minor
shareholders
Cash received as loans
Cash received from bond
placing
Other financing –related ash
received
Sub-total of cash inflow from
0 0
financing activities
Cash to repay debts 23,000,000
Cash paid as dividend, profit, or
564,471.66
interests
Incl: Dividend and profit paid
by subsidiaries to minor
shareholders
Other cash paid for financing
1,210,000
activities
Sub-total of cash outflow due
1,210,000 23,564,471.66
to financing activities
Net cash flow generated by
-1,210,000 -23,564,471.66
financing
IV. Influence of exchange rate
alternation on cash and cash -269,095.02 -248,959.27
equivalents
V.Net increase of cash and cash
-113,877,854.9 -126,680,140.17
equivalents
Add: balance of cash and cash
equivalents at the beginning of 463,817,642.79 417,686,594.8
term
VI.Balance of cash and cash
349,939,787.89 291,006,454.63
equivalents at the end of term
56
6. Cash flow statement of the Parent Company
Unit：RMB
Items Report period Same period of the previous year
I.Cash flows from operating activities
Cash received from sales of goods or
28,451,115.08 24,909,346.7
rending of services
Tax returned
Other cash received from
2,142,574.86 9,248,049.28
business operation
Sub-total of cash inflow 30,593,689.94 34,157,395.98
Cash paid for purchasing of
2,077,898.3 1,719,903.98
merchandise and services
Cash paid to staffs or paid for
8,729,530.72 8,992,339.31
staffs
Taxes paid 7,448,140.69 4,895,304.51
Other cash paid for business
6,603,913.22 7,800,603.93
activities
Sub-total of cash outflow
24,859,482.93 23,408,151.73
from business activities
Cash flow generated by business
5,734,207.01 10,749,244.25
operation, net
II.Cash flow generated by
investing
Cash received from investment
3,640,792.47 1,957,406.46
retrieving
Cash received as investment
1,210,300 1,415,634.56
gains
Net cash retrieved from
disposal of fixed assets, intangible 52,994
assets, and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Other cash receivable for
201,433,611.71
investment activities
Sub-total of cash inflow due to
4,851,092.47 204,859,646.73
investment activities
57
Cash paid for construction of
fixed assets, intangible assets and 3,371,159 2,195,961.37
other long-term assets
Cash paid as investment 108,163,070.03 200,000,000
Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
activities
Sub-total of cash outflow
111,534,229.03 202,195,961.37
due to investment activities
Net cash flow generated by
-106,683,136.56 2,663,685.36
investment
III.Cash flow generated by
financing
Cash received as loans
Cash received from bond
placing
Other financing –related ash
received
Sub-total of cash inflow from
0 0
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing
1,210,000
activities
Sub-total of cash outflow due
1,210,000 0
to financing activities
Net cash flow generated by
-1,210,000 0
financing
IV. Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash
-102,158,929.55 13,412,929.61
equivalents
Add: balance of cash and cash
equivalents at the beginning of 133,011,826.29 84,353,357.87
term
58
VI.Balance of cash and cash
30,852,896.74 97,766,287.48
equivalents at the end of term
7. Consolidated Statement on Change in Owners‘ Equity
Report period
Unit：RMB
Report period
Amount of the Current term
Items Less: Commo Minor Total of
Specializ
Share Capital Share Surplus n risk Attributabl Othe shareholde owners‘
ed
Capital reserves s in reserves provisio e profit r rs‘ equity equity
reserve
stock n
I.Balance at
336,521,8 814,540,889. 35,912,706. 182,653,149. 1,369,628,593.
the end of
49 3 22 09 61
last year
Add:
Chang
e of
accoun
ting
policy
Correcting
of previous
errors
Other
II.Balance
at the
336,521,8 839,797,115. 34,086,443. 135,563,817. 1,345,969,224.
beginning
49 13 1 74 97
of current
year
III.Changed
-4,652,388.4 32,363,976.6
in the 27,711,588.24
5 9
current year
（I） Net 32,363,976.6
32,363,976.69
profit 9
（ II ）
Other -4,652,388.4
-4,652,388.45
misc.incom 5
e
Total of (I) -4,652,388.4 32,363,976.6 27,711,588.24
59
and (II) 5 9
(III)
Investment
or
0 0 0 0 0 0 0 0 0 0
decreasing
of capital
by owners
1. Capital
inputted by
owners
2．Amount
of shares
paid and
accounted
as owners‘
equity
3. Other
（ IV ）
Profit 0 0 0 0 0 0 0 0 0 0
allotment
1.Providing
of surplus
reserves
2.Providing
of common
risk
provisions
3．Allotme
nt to the
owners (or
shareholder
s)
4．Other
(V)
Internal
transferring 0 0 0 0 0 0 0 0 0 0
of owners‘
equity
1.
60
Capitalizin
g of capital
reserves (or
to capital
shares)
2.
Capitalizin
g of surplus
reserves (or
to capital
shares)
3．Making
up losses
by surplus
reserves.
4. Other
(VI)
Special
reserves
1. Provided
this year
2．Used this
term
（VII）
Other
IV. Balance
336,521,8 835,144,726. 34,086,443. 167,927,794. 1,360,152,613.
at the end
49 68 1 43 82
of this term
Amount of the previous term
Unit ：RMB
Amount of the previous term
Owner‘s equity Attributable to the Parent Company
Items Minor
Less: Surplu Comm Total of
Capital Special Attribu sharehol
Share Shares s on risk owners‘
reserve ized table Other ders‘
Capital in reserve provisi equity
s reserve profit equity
stock s on
336,521 839,797, 34,086, 135,563, 1,345,969,
I.Balance at the end of last year
,849 115.13 443.1 817.74 224.97
Add：Retrospective adjustment
61
caused by merger of entities
under common control
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 336,521 839,797, 34,086, 135,563, 1,345,969,
current year ,849 115.13 443.1 817.74 224.97
-25,256, 1,826,2 47,089,3 23,659,368
III.Changed in the current year
225.83 63.12 31.35 .64
48,915,5 48,915,594
（I） Net profit
94.47 .47
-25,256, -25,256,22
（II）Other misc.income
225.83 5.83
-25,256, 48,915,5 23,659,368
Total of (I) and (II)
225.83 94.47 .64
(III) Investment or decreasing
0 0 0 0 0 0 0 0 0 0
of capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners‘ equity
3. Other
1,826,2 -1,826,2
（IV）Profit allotment 0 0 0 0 0 0 0 0
63.12 63.12
1,826,2 -1,826,2
1.Providing of surplus reserves
63.12 63.12
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0 0 0
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
62
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 336,521 814,540, 35,912, 182,653, 1,369,628,
term ,849 889.3 706.22 149.09 593.61
8. Statement of change in owner‘s Equity of the Parent Company
Amount of the Current term
Unit：RMB
Amount of the Current term
Items
Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners‘
Capital reserves reserves ble profit
stock reserve provision equity
336,521,84 805,957,90 35,912,706 86,837,579 1,265,230,
I.Balance at the end of last year 0 0 0
9 7.51 .22 .61 042.34
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 336,521,84 805,957,90 35,912,706 86,837,579 1,265,230,
0 0 0
current year 9 7.51 .22 .61 042.34
9,260,263. 6,941,518. 16,201,781
III.Changed in the current year
28 47 .75
6,941,518. 6,941,518.
（I） Net profit
47 47
9,260,263. 9,260,263.
（II）Other misc.income 0
28 28
9,260,263. 6,941,518. 16,201,781
Total of (I) and (II)
28 47 .75
(III) Investment or decreasing of
0 0 0 0 0 0 0 0
capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners‘ equity
63
3. Other
（IV）Profit allotment 0 0 0 0 0 0 0 0
1.Providing of surplus reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0
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 0 0 0 0 0 0 0 0
1. Provided this year
2．Used this term
（VII）Other 0 0 0 0 0 0 0 0
IV. Balance at the end of this 336,521,84 815,218,17 35,912,706 93,779,098 1,281,431,
term 9 0.79 .22 .08 824.09
Amount of the previous term
Unit ：RMB
Amount of the previous term
Items Less: Specializ Common Total of
Share Capital Surplus Attributa
Shares in ed risk owners‘
Capital reserves reserves ble profit
stock reserve provision equity
336,521,84 831,214,13 34,086,443 70,401,211 1,272,223,
I.Balance at the end of last year
9 3.34 .1 .57 637.01
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 336,521,84 831,214,13 34,086,443 70,401,211 1,272,223,
64
current year 9 3.34 .1 .57 637.01
-25,256,22 1,826,263. 16,436,368 -6,993,594.
III.Changed in the current year
5.83 12 .04 67
18,262,631 18,262,631
（I） Net profit
.16 .16
-25,256,22 -25,256,22
（II）Other misc.income
5.83 5.83
-25,256,22 18,262,631 -6,993,594.
Total of (I) and (II)
5.83 .16 67
(III) Investment or decreasing of
0 0 0 0 0 0 0 0
capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners‘ equity
3. Other
1,826,263. -1,826,263.
（IV）Profit allotment 0 0 0 0 0 0
12 12
1,826,263. -1,826,263.
1.Providing of surplus reserves
12 12
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
0 0 0 0 0 0 0 0
owners‘ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by surplus
reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
65
IV. Balance at the end of this 336,521,84 805,957,90 35,912,706 86,837,579 1,265,230,
0 0 0
term 9 7.51 .22 .61 042.34
（III）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(1994)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 No. 440301105031014, Registration address and headquarter address
are 6/F,Shenfang Building, Huaqiang Road. North, Futian District, Shenzhen.
2.Enterprise‘s business nature and major business operation.
Majored in manufacturing and im-exporting trade on textile, polarizer, clothes and associated products,
concurrently managing property leasing, storage, real estate development and hotel business, etc.
3. Names of parent company and group parent company.
The company‘s parent company is Shenzhen Investment Holdings Co., Ltd.
4. The reporting person of the approval of financial statements and the reporting date of the approval of financial
statements.
The reporting person of the approval of financial statements of the company: Board of Directors of the Company
The reporting date of the approval of financial statements of the Company: August 1 , 2012
（IV）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, 2012 truly and completely and business result in first half of 2012 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
The Company takes RMB as the standard currency for bookkeeping.
Standard Currency for bookkeeping of overseas subsidiaries.
5. Accounting process method of enterprise consolidation under same and different
controlling.
（1）Enterprise merger under same control：
66
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 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)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.
67
(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.
Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold andpurchased in
successively two years.
□applicable √ not applicable
7.Confirmation standard of cash and cash equivalent
Cash means the cash on hand and deposit for payment at any moment.
Cash equivalent refers to the investment with few value alteration risks that the company holds the cash with the
characters of short term (generally means 3 months from the purchasing date), strong fluidity, easy transferring to
known amount.
8 . Translating of foreign currency operations and foreign currency report form
（1）Accounting method of foreign currency operations
The foreign currency operation is translated into recording currency according to approximate exchange rate at sight
of business happening date. The approximate exchange rate at sight refers to the exchange rate at the beginning of
the business happening month.
On balance sheet date, dispose foreign currency monetary item and foreign currency non-monetary item according
to the following regulations:
A. Foreign currency monetary item is translated adopting exchange rate at sight of balance sheet date. The
balance of exchange produced from the difference between exchange rate at sight at balance sheet date and initial
confirmation or exchange rate at sight at former balance sheet date shall be reckoned into profit and loss at current
period.
B. Foreign currency non-monetary item measured with historic cost, adopt exchange rate at sight on business
happening date and not to change recording currency (amount).
C. Foreign currency non-monetary item measured by fair value adopts exchange rate at sight of fair value
confirmation date. The difference between recording currency after translating and the original recording currency
is disposed as fair value alteration and reckoned into profit and loss at current period.
（2） Method for foreign currency accounting
□applicable √ not applicable
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;
68
(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 and loans held, should be measured according to amortized costs by the actual interest
method. Accounts receivable, in accordance with the purchase contract or agreement price receivable amount as
initial confirmation, when recovery or disposal the account receivable, the price difference between the carrying
amount of the receivable included in the current profits and losses
(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）Recognition basis and measurement for transferred financial assets
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.
（4）Providing of impairment provision on financial assets (exclude receivable accounts)
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 asset
10. Recognition standard and providing basis of bad debt provision on receivable accounts
（1）Bad debt provision on receivable accounts with major amount individually
The Client Identifies single amount of accounts
receivable that is not less than RMB 1 million as
account receivable that are individually significant
Criteria and norm of individual significance in amount. The Client Identifies single amount of
accounts receivable that is not less than RMB 0.5
million as account receivable that are individually
significant in amount.
Measurement of impairment allowances for receivables of If it is objectively evidential that a receivable of
individual significance individual significance has impaired, the impairment
69
loss shall be recognized based on the difference of
the book values higher than the present value of
future cash flows.
（2）Accounts receivable belong to recognition of impairment allowances by group：
Method for recognition of
Name impairment allowances by Basis of determination of group
group
The classified according shall be recognized based on the
Account‘s age group
The age analysis method： accounts‘ age
The age analysis method by group：
Age % for accounts receivable % for other receivables
Within 1 year（incl: 1 year） 5% 5%
1－2 years 10% 10%
2－3 years 30% 30%
Over 3 years 50% 50%
3－4 years
4－5 years
Over 5 years
Accounts on percentage basis in group：
□ applicable √not applicable
Accounts on other basis in group：
□ applicable √not applicable
（3）Accounts receivable belong to individual insignificant but individually assessed for impairment：
The reason for individually assessed for impairment：
There is evidence that differences in the receivable are apparently .
Method for recognition of impairment allowances：
A receivable which is individually insignificant but the credit risk is high, should be individual it assessed for
impairment, the impairment loss shall be recognized 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
□ firs-in –first-out □ weighted average□ individual recognition □other
Stock delivered is measured according to weighted average method.
70
（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 wrap page
Consumption goods with low value: Consumption goods with low value adopt one time amortization method
when used. Packing:
Wrap page: Wrap page 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.
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
71
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 in took 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.
72
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.
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 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
(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.
73
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）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
（3）Fixed assets depreciation method
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
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.
Classification of fixed asset Depreciable life（Year） Residual rate（%） Depreciation rate（%）
Produce House and Building 35 4 2.74
Machinery and equipment 10 4 9.6
Electronic Equipment 8 4 12
8 4 12
Transportation equipment
House and Building-Non-
40 4 2.4
Production
machinery and equipment-textiles 14 4 6.86
Other equipment 8 4 12
financial leasing fixed assets -- -- --
thereunto：House and Building
Machinery and equipment
Electronic Equipment
Transportation equipment
Other equipment
（4）Depreciation measuring method and depreciation reserves withdrawn method of 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,
74
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）Categories of 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.
（2）Standard and timing for transferring of projects under construction to fixed assets
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;
（3）Impairment text and providing of impairment provisions on projects under construction
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, write-down 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）Principle of the recognition of capitalized borrowing costs
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.
（2）Capitalizing period of borrowing expenses
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.
（3）Temporarily suspension of capitalizing period
When the assets which meet the capitalization condition reach the intended use or sale state, the
75
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.
（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.Oil gas assets
19.Intangible assets
（1）Pricing of intangible assets
Intangible asset is valuated according the actual cost to obtain it;
（2）Estimation of service life of intangible assets with limited service life
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.
（3）Intangible assets without certain useful life
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.
76
（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.
20.Long-term amortization expenses
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.
21. Predicted liabilities
（1）Recognition of Predicted liabilities
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）Accounting of Predicted liabilities
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.
22.Revenue
(1). Recognition time for sales of goods
A .Revenue of sales goods
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.
77
The time confirmation of specific sales of main trade styles:
a. FOB is the trade style of goods exportation, means that the seller delivers when the goods pass the ship‘s
rail at the named port of shipment in contract;
b. CIF is the trade style of goods exportation, means that the seller delivers when the goods pass the ship's rail
in the destination port ;
C. Domestic sales time confirmation means the time of commodities ownership evidence transfer or physical
goods delivery.
B. 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.
(2). 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.
23. Governmental subsidy
（1）Categories
It contains financial appropriations, financial discount, taxation return and transfer non-monitory assets free of
charge.
（2）Accounting treatment
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
24. 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).
78
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.
Raw material and raw material purchasing order appointed to be headed object that make company facing
fair value alteration risk.
25. Hedging accounting
(1) The hedged item of the company refers to storage raw material and raw material purchasing order
appointed to be headed object that make company facing fair value alteration risk.
(2) Hedging instruments of the company refers to the transferring instrument that is appointed and its fair
value alteration can eliminate the fair value alteration of hedged items-----forward contract.
(3) If fair value hedging simultaneously meet the following conditions, the company only can use hedging
accounting method to dispose:
A. When hedging begins, the company has official appointment on hedging relation (namely the relation
between hedging instrument and hedging items), and prepares the official written file about hedging period risk,
risk management target and hedging policy.
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:
79
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.
26.Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year
□ Yes √ No
（1）Accounting policy alteration
The report mainly reflects accounting policy alteration
□ Yes √ No
（2）Alteration of accountant estimation
The report mainly reflects accounting estimation alteration
□ Yes √ No
27. Former accountant errors correction
Correction of accounting errors in previous period
□ Yes √ No
（1）Backward restatement method
In the report period, find the error of former accountant via backward restatement method or not.
□ Yes √ No
（2）Future applicable methods
In the report period, find the error of former accountant via future applicable methods or not.
□ Yes √ No
(V).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%
Consumption tax
Providing labor services, real
Business tax. estate sales, the transfer of 3.00%、5.00%
intangible assets
City construction tax VAT, sales tax, turnover tax, etc 7.00%
Business income tax Taxable income 25.00%、15%
80
Income tax rate applicable to branches and factories.
The company has not the conditions that every branch company or branch plant independently hand in business
income tax.
2. Tax preference and approval file
Shenzhen Shengbo Optoelectronic Technology CO., Ltd., the subsidiary company of our company, has been
qualified as national high-tech enterprise since 2010 ,High-tech and enterprise certificate No.:
GR201044200171 ,The certificate is valid for three years, The enterprise income tax rate of this year is 15%.
(VI) Enterprise consolidation and combined financial statements
Overall statement on consolidating of entities and consolidated financial statements：
1. Subsidiary
（1）Subsidiary obtained through establishment or investment
81
Unit ：RMB
After wrote
down current
period loss of
Other
minority
projects Amount
shareholders
balance used to
over equity
Actual essentiall Whether write down
Holding Proportion Interest of beginning share
Full name of Subsidiary Registration Registered capital y from consolidation lost
Business Business scope proportion of voting minority of minority
subsidiary type place capital amounts of net of included in
(%) rights(%) shareholder shareholders in
the end investme report form minority
the subsidiary
nt to shareholder
from the parent
subsidiar interest
company‘s
y
share ,Balance
of Owner's
equity
Domestic commerce,
Shenzhen Domestic materials supply and
Lisi Wholly-owned commerce, sales (excluding 2,360,000.0
Shenzhen 2,360,000 90.68% 100% Yes
Industrial subsidiary materials supply franchise, special 0
Co., Ltd and sales control, proprietary
products)
Accommodation,
restaurants, business
center; ticket
Shenzhen Accommodation, consignment; Property
Wholly-owned
Huaqiang Shenzhen restaurants, 10,005,300 Management (required 10,005,300 95% 100% Yes
subsidiary
Hotal business center to obtain the relevant
qualification certificate
for their operations)
Shenzhen
Shenfang
Wholly-owned Property The Company property
Property Shenzhen 1,600,000 1,600,000 93.75% 100% Yes
subsidiary management management
Management
Co., Ltd.
Shenzhen Production of fully
Production of
Beauty electronic jacquard
Wholly-owned fully electronic
Century Shenzhen 25,000,000 knitting whole shape 25,000,000 100% 100% No
subsidiary jacquard knitting
Garment Co., (without restrictions on
whole shape
Ltd. the project); clothing,
82
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 and
Shenzhen
export business (the
Shenfang Operating import
Wholly-owned specific approval by
Import & Shenzhen and export 5,000,000 5,000,000 100% 100% Yes
subsidiary the relevant import and
Export Co., business
export business
Ltd.
handled)
Shenzhen
Zhongxing Spewing Production and
Fibre Folds acupuncture operation of bedding,
Wholly-owned
Cotton Shenzhen cloth, revision, 1,680,000 clothing and textiles 1,680,000 75% No
subsidiary
Clothing and fusible for infants and young
Ornament interlining fabric children.
Co., Ltd.
Shengtou
Wholly-owned
(HK) Co., Hongkong Polaroid Sales 10,000 ---- 100% 100% Yes
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.
83
（2）The company has subsidiary company acquired via enterprise consolidation under same controlling.
None
（3）The company has no subsidiary company acquired via enterprise consolidation under same controlling.
Unit：RMB
After
wrote
down
current
period
loss of
Other Amount minority
project used to sharehold
s write ers over
balance Interest down equity
Actual Holdin Proport Whether
Full name Busine essenti of lost beginning
Subsidi Registra Registra capital g ion of consolida
of ss Scope of ally minorit include share of
ary tion tion amounts proport voting tion of
subsidiary charact business from y d in minority
type Place capital of ion rights( report
company er net shareho minorit sharehold
the end (%) %) form
invest lder y ers in the
ment to shareho subsidiary
subsidi lder from the
ary interest parent
company‘
s
share ,Bal
ance of
Owner's
equity
Wholesal
e,
manufact
uring and
process
various
specificati
ons
materials
and
apparatus
of
Shenzhen polarizer,
Limite
Shengbo Product LCD;
d
Optoelectr ion and import
Liabilit Shenzhe 250,000, 250,000,
onics sales of and 100% 100% Yes
y n 000 000
Technolog polariz export
Compa
y Co., Ltd er business
ny
(except
projects
inhibited
by law,
administr
ative
regulation
, State
Departme
nt), the
limited
projects
shall be
84
managed
with the
permissio
n.
2. Entities with special purposes or entities on which the Company has controlling power through entrusted
operation or leasing
□Applicable √Not applicable
3. Changes of combination scope at current period
□Applicable √Not applicable
4.Entities included or excluded in the consolidation range in the report period.
There is no other changes in consolidation scope except this. there is no other main part to be newly included or to
be excluded in consolidation scope of this period.
5. Enterprise consolidation under same controlling at the end of current period.
□Applicable √Not applicable
6. Enterprise consolidation under non-same controlling within the reporting period.
□Applicable √Not applicable
7. Sell stock right losing controlling right to decrease subsidiary company.
□Applicable √Not applicable
8. Reverse acquisition occurred in the report period.
□Applicable √Not applicable
9. Takeover occurred in the report period.
10.Exchange rate of main accounts of overseas businesses.
□Applicable √Not applicable
(VII). Notes of consolidated financial statements
1. Currency funds
Unit：RMB
Year-end balance Year-beginning balance
Items Exchan Original Exchange
Original currency ge rate RMB currency rate RMB
Cash -- -- 128,691.48 -- -- 128,049.24
RMB -- -- 64,659.77 -- -- 46,075.39
HKD 14,244.04 24,193.96
USD 49,708.02 57,779.89
JPY 79.65 0
Bank deposit： -- -- 281,043,968.93 -- -- 440,517,944.72
RMB -- -- 271,990,252.7 -- -- 433,585,496.45
HKD 1,745,176.37 1,713,056.3
85
USD 7,300,505.77 5,219,391.97
JPY 8,034.09
Other capital -- -- 73,920,257.01 -- -- 28,233,363.74
RMB -- -- 54,360,144.99 -- -- 26,251,079.47
EUR 234.87 243.41
JPY 19,559,877.15 1,982,040.86
Total -- -- 355,092,917.42 -- -- 468,879,357.7
Notes：
（1）As of June 30, 2012，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, 2012，The fixed-term deposit balance of money fund is RMB 5,153,129.53, this part will not
be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2.Transactional financial assets
（1）Transaction financial assets
□Applicable √Not applicable
（2）Transactional financial assets with restriction to liquefy
□Applicable √Not applicable
（3）Statements on hedge instruments and related tradings
□Applicable √Not applicable
3. Bill receivable
（1）Classification Bill receivable
Unit RMB
Classification Year-end balance Year-beginning balance
Bank acceptance 7,017,560.61 10,432,562.82
Total 7,017,560.61 10,432,562.82
（2）Bill receivable under pledge
Unit：RMB
As of June 30, 2012，The company has no notes receivable pledged.
86
（3）Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to
other parties but are not mature yet at the end of period.
As of June 30, 2012,Bill transferred to account receivable for the issuer is not able to execute the liability.
Bill endorsed to other parties but not due
Unit：RMB
Issuer Date of issue Expired on Amount Remark
Shenzhen Zhongxian
Micro-electronics Co., June 13, 2012 September 13, 2012 562,639.64
Ltd.
Ruili Baolai
Photoelectric technology March 21, 2012 September 20,2012 500,000
Co., Ltd.
Ruili Baolai
Photoelectric technology April 23, 2012 July 23, 2012 344,625
Co., Ltd.
Guangdong Shantou
Ultrasonic Electronic February 16, 2012 August 16, 2012 326,410
Co., Ltd.
Hebei Jiya Electronic
May 19, 2012 November 19, 2012 316,000
Co., Ltd.
Total -- -- 2,049,674.64 --
4.Dividend receivable
□Applicable √Not applicable
5.Interest receivable
□Applicable √Not applicable
6. Account receivable
（1）Classification Account receivable :
Unit :RMB
Year-end balance Year-beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Classification
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
（%） （%） （%） （%）
Receivables with major
individual amount and bad
debt provision provided
individually receivables
1,805,724.66 2.4% 1,805,724.66 100% 0 0
with major individual
amount and bad debt
provision provided
individually
87
Receivables provided bad debt provision in groups
Subtotal of group 69,177,083.73 92.14% 3,515,791.74 5.08% 60,001,603.99 93.03% 3,032,398.68 5.05%
Account receivable with
minor individual amount
4,099,247.43 5.46% 4,099,247.43 100% 4,492,763.89 6.97% 4,492,763.89 100%
but bad debt provision is
provided
Total 75,082,055.82 -- 9,420,763.83 -- 64,494,367.88 -- 7,525,162.57 --
Category explanation of accounts receivable:
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.
Receivable accounts with large amount individually and bad debt provisions were provided.
Unit：RMB
Description of the receivable accounts Book balance Bad debt provision Rate Reason to provide
Receivable accounts with large amount
1,805,724.66 1,805,724.66 100% Unable to recover
individually
Total 1,805,724.66 1,805,724.66 --
Receivable accounts on which bad debt provisions are provided on age analyze basis in group
Unit：RMB
End of term Beginning of term
Book balance Book balance
Age
Proportion( Bad debt provision Proportion( Bad debt provision
Amount Amount
%) %)
Within 1 year
In which： -- -- -- -- -- --
68,171,266.89 98.55% 3,402,554.86 58,984,012.56 98.3% 2,901,137.11
Subtotal of within 68,171,266.89 98.55% 3,402,554.86 58,984,012.56 98.3% 2,901,137.11
88
1 year
1-2 years 957,540.84 1.38% 95,754.08 889,653.87 1.48% 88,965.39
2-3 years 33,276 0.05% 9,982.8 108,363 0.18% 32,508.9
Over 3 years 15,000 0.02% 7,500 19,574.56 0.04% 9,787.28
3-4 years
4-5 years
Over 5 years
Total 69,177,083.73 -- 3,515,791.74 60,001,603.99 -- 3,032,398.68
Receivable account in Group on which bad debt provisions were provided on percentage basis
□Applicable √Not applicable
Receivable accounts with minor amount but were provided had debt provisions individually at end of period.
□Applicable √Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of
period
Unit：RMB
Description Of the
Book balance Bad debt provision Rate Reason to provide
receivable account
Receivable accounts
with no large amount 4,099,247.43 4,099,247.43 100% Unable to recover
individually
Total 4,099,247.43 4,099,247.43 100% --
（2）Receivable accounts written back or retrieved in the report period
□Applicable √Not applicable
（3）Receivable accounts actually written off in the report period
□Applicable √Not applicable
(4)Particulars about the receivable accounts due from shareholders with 5% or over of the Company‘s shares
□Applicable √Not applicable
（5）The front 5 units‘ information of account receivable
Relation with the Portion in total
Name Amount Ages
Company receivables(%)
Ruili Baolai
Client Within 1 year
Photoelectric technology 14,903,516.16 19.81%
89
Co., Ltd.
Jiangxi Helitai
Micro-electronics Co., Within 1 year
4,303,760.79
Ltd. Client 5.72%
Jiangmeng Yidu
Semiconductor Co., Ltd. 4,289,223.25 Within 1 year 5.70%
Client
Shenzhen Light Display
Technology Co., Ltd. 3,744,656.98 Within 1 year 4.98%
Client
Jurong Juncheng
Electronic Co., Ltd. 2,773,100.00 Within 1 year 3.68%
Client
Total -- 30,014,257.18 -- 39.89%
（6）Account due from related parties
□Applicable √Not applicable
（7）Recognition of receivable accounts terminated
□Applicable √Not applicable
（8）For securitization on receivable accounts, please provide the amount of asset and liability formed by
continuous involving
□Applicable √Not applicable
7.Other Account receivable
（1）Category of other account receivable:
Unit ：RMB
Year-end balance Year-beginning balance
Book balance Book balance
Classification Book balance Book balance
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
（%） （%） （%） （%）
Receivables with
major individual
12,075,436.43 24.69% 12,075,436.43 100% 12,075,436.43 34.19% 12,075,436.43 100%
amount and bad debt
provision provided
individually
Receivables provided bad debt provision in groups
Account age group 36,068,982.67 73.74% 2,165,377.14 6% 22,454,828.12 63.58% 1,718,360.23 7.65%
Subtotal of group 36,068,982.67 73.74% 2,165,377.14 6% 22,454,828.12 63.58% 1,718,360.23 7.65%
Account receivable
with minor individual 766,081.15 1.57% 766,081.15 100% 786,081.15 2.23% 786,081.15 100%
amount but bad debt
90
provision is provided
Total 48,910,500.25 -- 15,006,894.72 -- 35,316,345.7 -- 14,579,877.81 --
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.
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
Unit：RMB
Description Of other
Book balance Amount of bad debt rate reason
receivables
Receivable accounts with
12,075,436.43 12,075,436.43 100% Estimated uncollectible
large amount individually
Total 12,075,436.43 12,075,436.43 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
Unit：RMB
At end of term At beginning of term
Book balance Book balance
Age
Proporti Bad debt provision Proporti Bad debt provision
Amount Amount
on(%) on(%)
Within 1 year
In which：
34,442,907.09 95.49% 1,693,896.69 19,171,874.02 85.38% 958,593.7
Subtotal of within 1 year 34,442,907.09 95.49% 1,693,896.69 19,171,874.02 85.38% 958,593.7
1-2 years 478,967.7 1.33% 47,896.77 1,565,909.45 6.97% 156,590.96
2-3 years 750,101.3 2.08% 225,030.39 1,276,700.78 5.69% 383,003.63
Over 3 years 397,006.58 1.1% 198,503.29 440,343.87 1.96% 220,171.94
3-4 years
4-5years
Over 5 years
Total 36,068,982.67 -- 2,165,327.14 22,454,828.12 -- 1,718,360.23
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
91
□Applicable √Not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period.
□ Applicable √Not applicable
Other Receivable accounts with minor amount but on which bad debt provisions are provided individually at end
of period
Unit：RMB
Description Of other
Book balance Amount of bad debt rate reason
receivables
Receivable accounts with
no large amount 766,081.15 766,081.15 100% Estimated uncollectible
individually
Total 766,081.15 766,081.15 100% --
（2）Other receivable accounts written back or retrieved in the report period
Unit：RMB
Bad debt provision
Description of other Reason to write back Basis of original bad Amount written back or
provided before writing
receivables or retrieve debt provision retried
back or retrieving
Receivable accounts with no The other is in the liq
Withdraw cash 105,593.99 105,593.99
large amount individually uidation procedure
Total -- -- 0 --
（3）Other receivable accounts actually written off in the report period
□Applicable √Not applicable
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company‘s
shares in the report period.
□Applicable √Not applicable
（5）Natures or contents of other receivable accounts with large amount
Unit：RMB
Nature or content of the
Name Amount Portion in total other receivables(%)
account
Export tax rebates 22,848,638.37 Export tax rebates 46.65%
Jiangxi Xuanli String Co., Ltd. 11,389,044.6 Loan 23.25%
Shenzhen Finance Committee 1,047,437.1 Deposit 2.14%
Shenzhen Tianlong Industry &
686,391.83 Loan 1.4%
trade Co., Ltd.
Total 35,971,511.90 -- 73.44%
（6） The front 5 units‘ information of Other account receivable
92
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Export tax rebates Non-related parties 22,848,638.37 Within 1 year 46.65%
Jiangxi Xuanli String
Non-related parties 11,389,044.6 2-3 years 23.25%
Co., Ltd.
Shenzhen Finance
Non-related parties 1,047,437.1 1-2 years 2.14%
Committee
Shenzhen Tianlong
Industry & trade Co., Joint venture 686,391.83 Over 3 years 1.4%
Ltd.
Huang Xiaoshun Non-related parties 193,128.97 2-3 years 0.4%
Total -- 36,164,640.87 -- 73.84%
（7）Account receivable from Related parties
Unit： RMB
Portion in total other receivables
Name Relation with the Company Amount
(%)
Shenzhen Tianlong Industry &
Joint venture 686,391.83 1.4%
trade Co., Ltd.
Total -- 686,391.83 1.4%
（8）Termination of other receivable accounts
□Applicable √Not applicable
（9）For securitization on other receivable accounts, please provide the amount of asset and liability formed
by continuous involving
□Applicable √Not applicable
8.Prepayments
（1）Prepayments age :
Unit:RMB
End of term Beginning of term
Age Proportion Proportion
Amount Amount
（%） （%）
Within 1 year 11,656,164.67 89.98% 11,994,227.69 92.13%
1-2 years 1,297,480 10.02% 1,021,817.83 7.85%
2-3 years 2,834.53 0.02%
Over 3 years
93
Total 12,953,644.67 -- 13,018,880.05 --
Notes to age of payment in advance: The prepayments are mainly with age of less than 1 year. The partial
prepayments with age of over a year were made for the software projects not accepted yet.
（2） The front 5 units‘ information of Prepayments
Unit：RMB
Relation with the
Unit name Amount Time Reason of not clearing
company
Kuraray trading co.,ltd Supplier 2,430,757.4 Not available
Mitsubishi Plastics
Trading (Shanghai ) Co., Supplier 1,772,574.72 Not available
Ltd.
ISLAND
PYROCHEMICAL Supplier 1,628,029.26 Not available
INDUSTRIES
Kingdee Software
Software Supplier 506,400 Software is not installed
(China) Co., Ltd.
Kingdee Software Software Supplier
881,080 Software is not installed
(China) Co., Ltd.
NAN YA PLASTICS
Supplier 844,574.27 Not available
CORPORATION
Total -- 8,063,415.65 -- --
（3）Prepayment received by shareholding parties holding 5% or above of the Company‘s shares in the report
period.
□Applicable √Not applicable
（4）Statements on prepayments
□Applicable √Not applicable
9.Inventory
（1）Inventory types
Unit ：RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for bad Book value
bad debts debts
46,199,916.28 4,533,602.64 41,666,313.64 42,943,054.63 4,485,919.1 38,457,135.53
Raw materials
Processing
6,893,460.11 6,893,460.11 10,975,548.6 10,975,548.6
products
Stock goods 34,084,853.77 3,444,913.39 30,639,940.38 26,627,636.17 4,524,220.04 22,103,416.13
Turnover materials 0 0
Consumable
39,623.97 39,623.97
biological assets
94
Commissioned
1,598,561.17 1,598,561.17 1,598,561.17 1,598,561.17
goods
Total 88,776,791.33 9,577,077.2 79,199,714.13 82,184,424.54 10,608,700.31 71,575,724.23
（2）Inventory Impairment provision
Unit： RMB
Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
Type end
beginning current period Transferred back Reselling
4,485,919.1 47,683.54 4,533,602.64
Raw materials
Processing products
Stock goods 4,524,220.04 82,288.26 40,343.99 1,121,250.92 3,444,913.39
Tumover materials 0
Consumable biological
assets
Commissioned goods 1,598,561.17 1,598,561.17
Total 10,608,700.31 129,971.8 40,343.99 1,121,250.92 9,577,077.2
（3）Condition of stock value decline
Items Base of stock value decline Reason of issuing back to stock Proportion of issuing back
value decline plan of this period amount to the stock balance at
this period
Raw materials
Stock goods
Processing products
Tumover materials
Consumable biological assets
Notes1：As of June 30, 2012，The Company determines their net realizable value in accordance 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.
10.Other current assets
□Applicable √Not applicable
95
11. Disposable financial asset
（1）Sellable financial assets
Unit：RMB
Items Fair value at end of term Fair value at beginning of term
Available-for-sale bonds
Available-for-sale equity instruments 63,355,913.56 52,272,895.86
Other
Total 63,355,913.56 52,272,895.86
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 .
Explanation of financial assets available for sale: the amount of available for sale assets are held by
Shenzhen Victor Onward Textile Industrial Co., Ltd. shares, * ST Shen Victor Onward A of the company holds a
total of 9,243,394 shares of the outstanding shares of the highest A share price of 5.92 yuan in June 30, 2012, * ST
Shengrun A of the company holds a total of985,733 shares of the outstanding shares of the highest A share price of
8.76 yuan in June 30, 2012, .
（2）Long-germ liability investment in the sellable financial assets
□Applicable √Not applicable
12.Investment held to mature
（1）Investment held to mature
□Applicable √Not applicable
（2）Investment held to mature disposed in the report period before mature
□Applicable √Not applicable
13.Long-term receivables
□Applicable √Not applicable
14. Investment to joint venture and Affiliated Enterprises
Unit：RMB
Company
vote right
Company Total
percentag
Legal sharehold Ending Ending business
Corporati Registrati Business Registere e in the Ending Current
Name Represent ing total total revenues
on Type on place Nature d Capital invested net assets net profit
ative percentag assets liabilities at this
unittion
e (%) period
of units
(%)
I. Joint venture
96
Shenzhen Haohao Services
Feng 7,238,414 490,259.3 6,748,155 530,425.7
Shenzhen 4,700,000 50% 50% 894,781
Property Leasing Co., Limited Junbin .8 6 .44 3
Ltd. Company
Shenzhen Xieli Limited Ye Manufact 7,312,993 2,248,599 5,064,393 307,479.4
Shenzhen 3,120,000 50% 50% 874,800
Yongling .17 .63 .54 6
Automobile Co., Ltd. Company uring
Shenzhen Tianlong
Limited Gao Manufact 308,484.8 2,579,618 -2,271,13
Industry & trading Co., Shenzhen 1,900,000 50%
Guoshi 4 .45 3.61
Ltd.
Company uring
II. Affiliated enterprise
Shenzhen Changlianfa Services
5,328,838 1,001,618 4,327,220 -27,451.1
6,470,000 40.25% 40.25% 172,950
Printing & dyeing Limited Zhu .34 .03 .31 9
Company Company Shenzhen Meizhu
Jordan Garment Factory Limited Chen Manufact 10,560,37 4,412,645 6,148,041 10,824,06 -220,639.
6,320,000 35% 35%
1.58 .68 .9 3.78 23
Company Jordan Wenxian uring
Hengshun （ Saipan ） Limited Manufact 43,987,20
35% 35%
0
Industry Co., Ltd. Company Saipan --- uring
Notes
1.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.
2．Shenzhen Tianlong Industrial & Trading Co., Ltd, had established liquidation group in 2009 and started
liquidation procedures, they are in liquidation processing。
15. Long term share equity investment.
(1) Long-term equity investments are listed according to the situation of investment unit :
97
Unit：RMB
Explaination of
diffirence
between
Shareholding Voting right
Accounting Initial Original shareholding Cash
Name change Ending Balance proportion in proportion in Devalue Current devalue
method investment cost balance proportion and bonus
the investee the investee
voting right
proportion in
investee
Shenzhen
Jintian Industry
Cost method 14,831,681.5 14,831,681.5 14,831,681.5 3.68% 3.68% 14,831,681.5
（Group） Co.,
Ltd.
Shenzhen
Haohao
Property Equity method 2,040,102.73 3,537,070.37 259,352.31 3,796,422.68 50% 50%
Leasing Co.,
Ltd.
Shenzhen Xieli
Automobile Equity method 1,529,483.67 2,691,516.71 107,335.05 2,798,851.76 50% 50% 266,654.99
Co., Ltd.
Shenzhen
Changlianfa
Printing & Equity method 2,524,500 1,752,755.27 -11,049.1 1,741,706.17 40.25% 40.25%
dyeing
Company
Jordan
Garment Equity method 7,240,625 2,221,984.47 -56,550.72 2,165,433.75 35% 35%
Factory
Hengshun
（Saipan）
Equity method 8,228,350 35% 35%
Industry Co.,
Ltd.
Shenzhen
Tianlong
Go into
Industrial & Equity method 685,000 50%
liquidation
Trading Co.,
Ltd
Shenzhen
Jiafeng Textile Cost method 16,800,000 16,800,000 16,800,000 10.8% 10.8% 16,800,000
Co., ltd.
Shenzhen Cost method 5,491,288.71 5,491,288.71 5,491,288.71 45% 45% 5,058,307.01
98
Guanhua
Prnting &
dyeing Co.,
Ltd.
Shenzhen
Union
Cost method 2,600,000 2,600,000 2,600,000 2.87% 2.87%
Development
Group Co., Ltd.
Shenzhen
Xiangjiang Cost method 160,000 160,000 160,000 20% 20%
Trade Co., Ltd.
Shenzhen
Xinfang
Cost method 524,000 524,000 524,000 20% 20%
Knitting Co.,
Ltd.
Hongkong
Yehui
Cost method 2,392,914.37 2,392,914.28 2,392,914.28 17.85% 17.85%
International
Co., Ltd.
Shenzhen Operate and
Dailisi Knitting Cost method 532,062.5 2,559,856.26 2,559,856.26 30% contracted by 405,000
Co., Ltd. the third party
Anhui Huapeng Operate and
Textile Co., Cost method 25,000,000 25,410,209.5 25,410,209.5 50% contracted by 900,000
Ltd. the third party
Shenzhen
South Textile Cost method 1,500,000 1,500,000 1,500,000 9.84% 9.84%
Co., Ltd.
Shenzhen
Tongyi Silk Cost method 1,800,000 1,800,000 1,800,000 18% 18% 542,932.57
Co., Ltd.
Shenzhen
Zhongxing
Fibre Folds
Go into
Cotton Cost method 1,460,000 1,460,000 1,460,000 100% 1,460,000
liquidation
Clothing
Ornament Co.,
Ltd.
Total -- 95,340,008.48 85,733,277.07 299,087.54 86,032,364.61 -- -- -- 38,416,643.5 0 1,847,932.57
99
（2）Constrains on the ability to transfer capital to invested entities
During the reporting period, the company is not limited to transfer funds to the Investment Company limited circumstances.
The company has no long-term equity investment of limited sales condition in the end.
100
16.Investment real estate
（1）Measured by the cost of investment in real estate
Unit：RMB
Items Book amount at year Increase at this period Decrease at this period Book balance in year -end
beginning
1. Total original price 258,462,134.46 0 0 258,462,134.46
1.House, Building 258,462,134.46 258,462,134.46
2.Land use right
II.Total accumulated
depreciation
96,803,671.11 3,448,283.82 0 100,251,954.93
accumulated
amortization
1.House, Building 96,803,671.11 3,448,283.82 100,251,954.93
2.Land use right
III. Total book value
of investment real 161,658,463.35 0 0 158,210,179.53
estate
1.House, Building 161,658,463.35 158,210,179.53
2.Land use right
IV. Total of
accumulated provision
0 0 0 0
for devaluation of
investment real estate.
1.House, Building
2.Land use right
V. Total book value of
161,658,463.35 0 0 158,210,179.53
investment real estate
1.House, Building 161,658,463.35 158,210,179.53
2.Land use right
Unit：RMB
This period
Current amount of depreciation and amortization 3,448,283.82
0
（2）Investment property on fair value basis.
□Applicable √Not applicable
101
17. Fixed assets
（1）Fixed assets
Unit：RMB
Items Book amount at Increase at this period Decrease at this Book balance in
year beginning period year -end
1. Total original price 624,037,352.83 427,059,935.52 2,159,110.55 1,048,938,177.8
Including: House , Building 459,841,176.81 1,047,837.06 0 460,889,013.87
Machinery equipment 145,619,918.73 425,502,365.21 1,243,604.51 569,878,679.43
Transportations 4,131,654.03 343,100 3,788,554.03
Electronic and Other 14,444,603.26 509,733.25 572,406.04 14,381,930.47
Book balance at Current term ne Current term Decrease at this Book balance in
--
year beginning w extra provision period year -end
II. Total of accumulative
119,603,712.35 0 19,180,547.47 1,656,968.21 137,127,291.61
depreciation
Including: House , Building 38,030,132.12 0 6,510,841.09 44,540,973.21
Machinery equipment 71,721,979.39 0 11,762,451.65 873,625.67 82,610,805.37
Transportations 1,438,673.02 0 234,551.4 243,734.5 1,429,489.92
Electronic and Other 8,412,927.82 0 672,703.33 539,608.04 8,546,023.11
Book balance at Book balance in
-- --
year beginning year -end
III. Total book value of
504,433,640.48 -- 911,810,886.19
Fixed assets
Including: House , Building 421,811,044.69 -- 416,348,040.66
Machinery equipment 73,897,939.34 -- 487,267,874.06
Transportations 2,692,981.01 -- 2,359,064.11
Electronic and Other 6,031,675.44 -- 5,835,907.36
--
IV. Total of Devalued
305,801.12 -- 235,233.62
Provision
Including: House , Building --
Machinery equipment --
Transportations 305,801.12 -- 235,233.62
Electronic and Other --
102
--
V. Total book value of Fixed
504,127,839.36 -- 911,575,652.57
assets
Including: House , Building 421,811,044.69 -- 416,348,040.66
Machinery equipment 73,897,939.34 -- 487,267,874.06
Transportations 2,387,179.89 -- 2,123,830.49
Electronic and Other 6,031,675.44 -- 5,835,907.36
--
Current depreciation is RMB 19,180,547.47 . The issue of fixed assets transferred from construction in progress
original price is RMB 376,860,542.71.
（2）Fixed assets temporarily in idle status
□Applicable √Not applicable
（3）Fixed assets leased by finance
□Applicable √Not applicable
（4）Fixed assets leased out on finance.
□Applicable √Not applicable
（5）Fixed assets held for sale at end of period
□Applicable √Not applicable
（6）Fixed asset not licensed yet
Item Reason for not granted Expected date of grant
The House carried forward phase-I project
In the process of completion acc
of polarizer sheet for TFT-LCD and buildin
eptance procedures June 1, 2013
g projects class of fixed assets
18.Project under construction
（1）Project under construction
Unit：RMB
Year-end balance Year-beginning balance
Book Provision for Book Net value Book Provision for Book Net value
balance devaluation balance devaluation
Items
47,737,605.85 47,737,605.85 330,124,529.26 330,124,529.26
TFT-LCD polarizing film I project
7,053,420.19 7,053,420.19 4,664,276.19 4,664,276.19
Guanhua Building project
Total 54,791,026.04 0 54,791,026.04 334,788,805.45 0 334,788,805.45
103
（2）Significant changes in projects of construction-in-progress
Unit：RMB
Thereinto:
Project
Accumulated amount of Current Interest
Amount at year Increase at Transferred to Other investment Project Capital Amount at
Name Budget amount of interest Current capitalization
beginning this period fixed assets reduction proportion of the progress source year end
capitalized Interest rate
budget
capitalized
TFT-LCD
polarizing film 926,400,000 330,124,529.26 94,473,619.3 376,860,542.71 84% 89.72% 6,210,041.26 Self- 47,737,605.85
I project
Total 926,400,000 330,124,529.26 94,473,619.3 376,860,542.71 0 -- -- 6,210,041.26 0 -- -- 47,737,605.85
104
（3）Devalue plan of Construction in progress
□Applicable √Not applicable
（4）Major projects under construction
Items Project progress Notes
TFT-LCD polarizing film I project 89.72%
（5）Statement on projects under construction
□Applicable √Not applicable
19.Engineering Material
□Applicable √Not applicable
20.Liquidation of fixed assets
□Applicable √Not applicable
21.Production biological assets
（1）On costs
□Applicable √Not applicable
（2）On fair value
□Applicable √Not applicable
22.Petrolum assets
□Applicable √Not applicable
23. Intangible assets
（1）Intangible assets
Unit：RMB
Items Book Balance in Book Balance in
Increase at this period Decrease at this period
year-begin year-end
60,590,330.5 0 0 60,590,330.5
1. Total original price
48,765,130.5 48,765,130.5
Land Use right
11,825,200 11,825,200
Proprietary technology
II. Total amount of
14,021,640.61 1,036,877.64 0 15,058,518.25
accumulated
4,561,640.61 642,677.64 5,204,318.25
Land Use right
9,460,000 394,200 9,854,200
Proprietary technology
105
III. Book value of
46,568,689.89 0 0 45,531,812.25
intangible assets
44,203,489.89 43,560,812.25
Land Use right
2,365,200 1,971,000
Proprietary technology
IV.Total value of
0 0 0 0
provision for impairment
Land Use right
Proprietary technology
V. Total Book value of
46,568,689.89 0 0 45,531,812.25
intangible assets
44,203,489.89 43,560,812.25
Land Use right
2,365,200 1,971,000
Proprietary technology
The amortization amount is RMB 1,036,877.64.
（2）The current expenditure on non-development projects
□Applicable √Not applicable
（3）Uncertificated intangible assets
□Applicable √Not applicable
24. Goodwill
Unit: RMB
Name of the investee or the Balance in Increase at this Decrease at this Book Balance in Ending devalue
matter of forming Goodwill year-begin period period year-end provision
Shenzhen Beauty Century Garment
2,167,431.21 2,167,431.21 2,167,431.21
Co., Ltd.
106
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 0 0 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.
25. Long-term amortization expenses
Unit ：RMB
Amount of
Balance in Increase at this Balance in year
Items amortization at Other Decrease Other
year-begin period end
current period
1,383,368.41 314,024.46 1,069,343.95
Renovation costs
242,240 16,015 226,225
Other
Total 1,625,608.41 0 330,039.46 0 1,295,568.95 --
26. Deferred income tax assets/Deferred income tax liabilities
(1）Recognized deferred income tax assets and deferred income tax liabilities
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 8,336,251.61 8,158,712.53
Start-up costs
Deductible loss
Unattained internal sales profits 482,300.7 482,300.7
Subtotal 8,818,552.31 8,641,013.23
Deferred income tax liability
107
Trading of financial instruments and Derivative
financial instruments
Increase and decrease of fair value of
10,853,919.09 7,767,164.67
available-for-sale financial assets
Assessed tax-free periods of time caused by
77,838 77,838
differences in income
Subtotal 10,931,757.09 7,845,002.67
Details of taxable differences and deductible differences
Unit：RMB
Amount of temporary differences
Items
At end of term At beginning of term
Differences in taxable items
Increase and decrease of fair value of
43,727,028.36 31,068,658.69
available-for-sale financial assets
Assessed tax-free periods of time caused by
311,352 311,352
differences in income
Subtotal 44,038,380.36 31,380,010.69
Neutralizable different items
24,427,658.55 22,105,040.38
Provision for bad debts
Provision for devaluation of fixed assets 235,233.62 305,801.12
9,577,077.2 10,608,700.31
Provision for falling price of inventory
Impairment of long-term equity investments 5,227,896.65 5,227,896.65
Unattained internal sales profits 3,215,338 3,215,338
Total 42,683,204.02 41,462,776.46
（2）Deferred income tax assets and liabilities are presented as net amount after neutralization
□Applicable √Not applicable
27.Detail of asset impairment provision
Unit： RMB
Decrease at this period Balance of book
Balance of book Increase at this
value at end of
Items
value at beginning period Withdrawal amount Transfer in term
108
of term in this
1. Bad debt provision 22,105,040.38 2,428,212.16 105,593.99 24,427,658.55
2 Inventory impairment
10,608,700.31 129,971.8 40,343.99 1,121,250.92 9,577,077.2
provision
3. Disposable financial asset
impairment provision
4. Investment equity hold
tillexpiring impairment
provision
5. Long-term equity
investment impairment 38,416,643.5 0 38,416,643.5
provision
6. Property investment
0 0 0
impairment provision
7.Fixed asset impairment
305,801.12 70,567.5 235,233.62
provision
8. Project material impairment
provision
9. Construction in process
0 0 0
impairment provision
10 Production biological
material asset impairment
provision
Incl. Mature production
biological material asset
impairment provision
11. Gas & oil asset
0 0 0
impairment provision
12. Intangible asset
0 0 0
impairment provision
13. Goodwill impairment
2,249,587.82 0 2,249,587.82
provision
14.Other
Total 73,685,773.13 2,558,183.96 145,937.98 1,191,818.42 74,906,200.69
28.Other non-current assets
□Applicable √Not applicable
29. Short-term borrowings
109
□Applicable √Not applicable
30.Transactional financial liabilities
□Applicable √Not applicable
31.Bills payable
□Applicable √Not applicable
32 Account payable
（1）
Unit：RMB
Items Year-end balance Year-beginning balance
Within 1 year 61,398,678.92 31,045,540.2
1-2 years 128,517.41 2,129,900.54
2-3 years 21,647.9 5,841,789.02
3-4 years 626,027.72 298,433.42
4-5 years 194,131.97 351,694.84
Over 5 years 217,611.6 397,308.57
Total 62,586,615.52 40,064,666.59
（2）Account payable to shareholders holding 5% or over of the Company‘s shares in the report period
□Applicable √Not applicable
33. Received in advance
（1）
Unit：RMB
Items Year-end balance Year-beginning balance
Within 1 year 18,269,706.49 14,319,836.22
1-2 years 515,469.68
2-3 years 0 32,486.42
3-4 years 975.8 639,024.58
4-5 years 643,265.11
Over 5 years 5,804 5,804
Total 18,919,751.4 15,512,620.9
（2）Prepayment collected from shareholders holding 5% or over of the Company‘s shares in the report period.
□Applicable √Not applicable
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..
110
34. Employee salary of payable
Unit: RNB
Items Book Balance in Increase in the current Decrease in the current period Book Balance in
year-begin period year-end
1.Wages, bonuses,
allowances and 20,152,284.02 29,382,423.48 32,055,330.09 17,479,377.41
subsidies
2.Employee welfare 2,537,000.57 2,537,000.57
3. Social insurance
19,028.93 2,873,101.65 2,809,864.58 82,266
premiums
Medical insurance 1,015,065.41 1,015,065.41
Basic old-age
1,454,056.01 1,454,056.01
insurance premiums
Pension Payment 19,028.93 277,095.11 213,858.04 82,266
Unemployment
30,999.22 30,999.22
insurance
Work injury
46,958.36 46,958.36
insurance
Maternity insurance 48,927.54 48,927.54
IV. Public reserves
165,974.5 1,593,095.05 1,780,798.7 -21,729.15
for housing
V. .Refuse welfare 160,000.02 160,000.02
VI.Other 1,220,999.24 1,150,119.57 1,117,342.62 1,253,776.19
VII. Union funds
and staff 1,065,156.94 736,580.46 658,815.21 1,142,922.19
education fee
155,842.3 413,539.11 458,527.41 110,854
Total 21,718,286.71 37,535,740.32 40,300,336.56 18,953,690.47
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 RMB1,142,922.19, the amounts of
non-monetary benefits are RMB 0.00, and the compensations for the lifting of labor relations is 0
The expected release time and amount of staff salary and welfare payable are arranged in the beginning of next
year.
35. Tax Payable
Unit：RMB
Items Year-end balance Year-beginning balance
111
VAT -46,678,708.09 -28,116,583.6
Consumption tax
Business Tax 480,507.33 466,537.53
834,110.53 6,904,730.89
Enterprise Income tax
338,757.12 308,220.31
Individual Income tax
City Construction tax 14,371.33 19,906.74
101,828.38 31,917.79
House property Tax
49,444.58 56,082.91
Surcharge for education
Other tax -15,068.27 62,275.14
Total -44,874,757.09 -20,266,912.29
Statement on tax payable: Please provide the calculating processes then taxable income is balanced between branch companies or
factories as approved by the tax bureau.
The subsidiary and branch of the company have no taxable income transfers of each other.
36. Interest Payable
Unit：RMB
Items Year-end balance Year-beginning balance
Long-term loans interest of installment and interest
10,500,959.08 5,546,514.63
charge
Debenture interest
Short term loan interest payable
Total 10,500,959.08 5,546,514.63
37.Dividend payable
□Applicable √Not applicable
38.Other Payable
（1） Unit：RMB
Items Year-end balance Year-beginning balance
Within 1 year 125,505,232.93 81,283,988.3
1-2 years 4,122,530 4,190,441.94
2-3 years 3,778,171.54 4,565,997.35
112
3-4 years 5,767,612.4 6,344,333.58
4-5 years 3,649,700.88 3,025,192.15
Over 5 years 21,494,473.79 23,007,675.46
Total 164,317,721.54 122,417,628.78
（2）In the balance of other payable, there were no funds of shareholders holding 5% (including 5%) or more of
the voting right of the Company;
□Applicable √Not applicable
（3）Statement on large amount other payable accounts due for over one year
□Applicable √Not applicable
（4）Statement on large amount other payable accounts
Large amounts of the other payables are mainly for TFT-LCD polarizer phase I project funds.
39.Estimated liabilities
□Applicable √Not applicable
40. Non-current liabilities due within one year
□Applicable √Not applicable
41.Other current liabilities
□Applicable √Not applicable
42. Long-term loan
（1）Long-term loans classifications
Unit：RMB
Items Year-end balance Year-Beginning balance
Impawn Loan
Mortgage loan
Guarantee Loan
Credit Loan 200,000,000 200,000,000
Total 200,000,000 200,000,000
As regards long-term loans classifications:
Long-term loans are classified by loans.
113
（2）The top five of long-term loans
Unit：RMB
Year-end balance Year-beginning balance
Loans Loans ending Interest rate Amount of Amount of Amount of Amount of
Loan unit Currency
starting date date (%) Foreign RMB Foreign RMB
currency currency
Shenzhen
November 3, January 24,
Development CNY 4.9% 40,000,000 40,000,000
2011 2018
Bank
Shenzhen
November 3, January 24,
Development CNY 4.9% 40,000,000 40,000,000
2011 2018
Bank
Shenzhen
November 3, January 24,
Development CNY 4.9% 23,280,991.7 23,280,991.7
2011 2018
Bank
Shenzhen
November
Development June 24, 2015 CNY 4.9% 21,225,294 21,225,294
25,2010
Bank
Shenzhen
21,047,897.9 21,047,897.9
Development July 14,2010 June 24,2015 CNY 4.9%
6 6
Bank
145,554,183. 145,554,183.
Total -- -- -- -- -- --
66 66
Statement on long-term loans. For long-term loans over due but extended for another period, please provide the
conditions, principal,interest rate, and repayment arrangement.
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.
43.Bond payable
□Applicable √Not applicable
44.Long-term payable
□Applicable √Not applicable
45.Special payable
□Applicable √Not applicable
114
46.Other Non-current liabilities
Unit: RMB
Items Book balance year-end Book balance Year-beginning
Deferred profits 53,149,567.39 45,760,504.07
Total 53,149,567.39 45,760,504.07
Statement on other non-current liabilities, including asset-related and income-related government subsidy and closing balances:
（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 non-operating income in current period is RMB142,857.14, the
ending balance of uncompleted amortization is RMB 1,571,428.58 .
(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 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 1,500,000.00.
(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 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 RMB5100,000.00 and the balance amount of unfinished final amortization is RMB
7,500,000.00.
(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‖. project to be inspected.
115
（5）On December 23, 2009 and June 3, 2011, the Company received a loan discount RMB 992,000.00 and
RMB 850,000.00 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 96,822.24 and the balance amount of unfinished final amortization is RMB 1,452,333.25.
（6）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. The
non-operating income in current period is RMB 3,954,990.00 and the balance amount of unfinished final
amortization is RMB 27,684,930.00.
（7）According to Contract for Using Technological Development Funds of Futian District Appropriated for
Projects in Advance, the Company obtained funds of RMB 600,000.00 appropriated by General Chamber of
Commerce of Shenzhen Futian District for the project of "3D polarizer sheet industrialization" on December 26,
2011.
(8) In accordance with the Reply of General Office of State Development and Reform Commission
Regarding Strategic Transformation and Industrialization of Color TV Industry (Fa Gai Ban Gao Ji (2011) No.
1205 Document), the Company received the special fund of RMB 9 million for the strategic transformation and
industrialization of color TV industry appropriated by Shenzhen Financial Commission on June 21, 2012. The
project has not passed acceptance inspection.
(9) In accordance with the Notice of Issuing the Governmental Investment Plan for 2011 Regarding Hi-tech
Industry Demonstration Projects Including Specialized Service of Disaster Recovery of Financial Information
System (Shen Fa Gai (2012) No. 3 Document), the Company received governmental investment fund of RMB 3
million for 2011 appropriated by Shenzhen Financial Commission on April 23, 2012. The project has not passed
acceptance inspection.
(10) In accordance with the provisions of Regulations of Shenzhen Longgang District on Special Fund of
Environmental Protection (Shen Long Fu (2009) No. 72 Document), the Company received the subsidy of RMB
41,400 for purchase of online environment monitoring equipment appropriated by Financial Bureau of Longgang
District on May 24, 2012. Non-operating income recognized in current period was RMB 524.44. At the end of
period, the balance to be amortized was RMB 40,875.56.
47. .Stock capital
单位： 元
Increase/decrease this time (+ , - ) Balance
Balance
Issuing of new Transferred year-end
Year-beginning Bonus shares Other Subtotal
share from reserves
Total of capital
336,521,849 0 336,521,849
shares
48.Shares in stock
□Applicable √Not applicable
116
49.Special reserves
□Applicable √Not applicable
50. Capital reserves
Unit：RMB
Items Year-beginning balance Increase in the current Decrease in the Year-end balance
period current period
Share premium 782,656,413.49 782,656,413.49
Other 31,884,475.81 9,260,263.28 41,144,739.09
Total 814,540,889.3 9,260,263.28 0 823,801,152.58
51. Surplus reserve
Unit ：RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 35,912,706.22 35,912,706.22
Optional surplus reserves
Preserved fund
Enterprise development fund
Other
Total 35,912,706.22 0 0 35,912,706.22
52.Providing of common risk provisions
□Applicable √Not applicable
53. Retained profits
Unit：RMB
At end of term At beginning of term
Percentage of Percentage of
Items
Amount drawing or Amount drawing or
allocation allocation
Before adjustments:
182,653,149.09 -- --
Retained profits at the
117
period end
Adjustments: Total retained
profits at the period
-- --
beginning
（+，-）
After adjustments:Retained
profits at the period 182,653,149.09 -- --
beginning
Add：Net profit belonging to
the owner of the parent -18,736,243.07 -- --
company
Less：Drawing statutory
10%
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
163,916,906.02 -- 182,653,149.09 --
period end
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 .
54. Business income, Business cost
（1）Business income, Business cost
Unit： RMB
Items Amount of current period Amount of previous period
Income from Business income 373,473,854.27 317,350,237.28
1,959,137.64 1,832,480.47
Other Business income
Business cost 336,576,764.17 261,172,573.17
118
（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 trade 213,519,544.58 212,411,433.49 133,615,874.79 132,959,760.68
Total 373,473,854.27 334,618,865.87 317,350,237.28 259,354,271.44
（3）Main business（Production）
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Property and rental income 39,288,400 11,402,300 34,924,684.38 9,702,351.05
Total 373,473,854.27 334,618,865.87 317,350,237.28 259,354,271.44
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
Domestic 122,758,230.83 91,917,341.83 134,589,767.03 88,019,534.85
Total 373,473,854.27 334,618,865.87 317,350,237.28 259,354,271.44
（5）Total income and the ratio of operating income from top five clients
单位： 元
Name Business Income Proportion(%)
Shenzhen Chuangying Textile Co.,
209,650,666.3 55.84%
Ltd
Jinsitai Investment
11,813,147.5 3.15%
Development Co., Ltd.
Jiangxi Helitai Electronics Co.,
7,613,537.39 2.03%
Ltd.
Jiangmen Yidu Company 7,302,344.72 1.94%
Ruili Baolai Optoelectronic
6,912,132.35 1.84%
Technology Co.,Ltd.
119
Total 243,291,828.26 64.8%
55. Contract income
□Applicable√ Not applicable
56. Business taxes and surcharges
Unit：RMB
Amount of current period Amount of previous
Items Project payment standard
period
Consumption tax
Business tax 2,068,217.07 1,948,592.33
City construction tax 412,291.09 365,136.39
Education surcharge 298,031.61 155,820.13
Resource tax
House tax 865,569.69 825,326.71
Other 289,110.94 258,205.49
Total 3,933,220.4 3,553,081.05 --
57.Income from fair value fluctuation
□Applicable√ Not applicable
58. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current period Amount of previous period
Long-term equity investment income by costing 1,847,932.57 1,922,576.19
Long-term equity investment income by equity
299,087.54 97,453.88
method
Dispose the investment income from the long-term
equity
investments
Hold the investment income which gained from the
transactional
financial assets
Gain the investment income from the
120
held-to-maturity investment
Hold the investment income during from
available-for-sale financial assets
Dispose the investment income from the
transactional financial assets
Dispose the investment income from the
held-to-maturity investment
Dispose the investment income from the
2,376,792.47 1,482,128.46
available-for-sale financial assets
Other
Total 4,523,812.58 3,502,158.53
（2）long-term equity investment gains on cost basis
Unit ：RMB
Occurred in previous
Company inested in Occurred current term Causation of change
term
Shenzhen Tongyi Silk factory Co., Ltd. 542,932.57 541,941.63
Anhui Huapeng Textiles Co., Ltd. 900,000 900,000
Shenzhen Dilisi Underwear Co., Ltd. 405,000 415,000
Total 1,847,932.57 1,922,576.19 --
（3）Long-term equity investment gains on equity basis
Unit：RMB
Occurred in previous
Company invested in Occurred current term Causation of change
term
Shenzhen Haohao Property Leasing
259,352.31 235,155.43
Co., Ltd.
Shenzhen Xieli Automobile Co., Ltd. 107,335.05 100,745.09
Shenzhen Changlianfa Printing and
-11,049.1 26,225.18
dyeing Company
Jordan Garment Factory -56,550.72 -264,671.82
Total 299,087.54 97,453.88 --
59. .Loss of assets impairment
Unit： RMB
121
Name
Amount of current period Amount of previous period
1．Loss for bad debts 2,322,618.17 1,344,872.24
2．Loss for falling price of Inventory 89,627.81 1,679,759.57
3．Loss for devaluation of financial asset available for sales
4．Loss for devaluation of held-to maturity investment
5．Loss for devaluation of long-term equity investment
6．Loss for devaluation of investing property
7．loss for devaluation of fixed assets
8．loss for devaluation of engineering materials
9．loss for devaluation of construction in progress
10．loss for devaluation
Of productive biological asset
11．loss for devaluation of oil asset
12．loss for devaluation of intangible asset
13．loss for devaluation of goodwill
14．other
Total 2,412,245.98 3,024,631.81
60. Non-operating income
（1）
Unit：RMB
Items Amount of current period Amount of previous period
41,000 52,994
Total income from liquidation of non-current assets
41,000 52,994
Including：Income from liquidation of fixed asset
Income of the sale of intangible assets
Debt restructuring profits
Non-monetary assets Exchange profits
Donation accepted
Government Subsidy 4,692,336.68 4,690,090.02
Other 10,000 10,876,329.05
Total 4,743,336.68 15,619,413.07
122
（2）Government subsidy list
Unit：RMB
Items Amount of current period Amount of previous Notes
period
Implementing standardized strategy
funded by market supervision
40,000
administration of Shenzhen
Municipality authority fees
Acquisition of special equipment
for environmental protection
524.44
payment of shenzhen Longgang
District
Chamber of Commerce economic
development exhibition sponsored 85,500
funds of Futian District,
Amortization of government
3,954,990 3,954,990
research and development grants
Amortization of high-tech
industrialization demonstration 100,000 100,000
project matching funds
New industrialization of flat panel
display amortization of State 500,000 500,000
subsidy funds for special projects
Shenzhen Finance Commission
disbursement of loan discount 96,822.24 49,600.02
amortization
Total 4,692,336.68 4,690,090.02 --
61. Non-operating expenses
Unit： RMB
Items Amount of current period Amount of previous period
Total Disposal of loss of non-current assets 9,996.59
Including：Disposal of net loss of fixed assets 9,996.59 9,996.59
Disposal of loss of Intangibles assets
Losses from debt restructuring
Non-monetary assets exchange losses
Donation expenses
Fine expenses 50 50
123
Other expenses 1,890.28
Total 10,046.59 1,890.28
62. .Income tax expenses
Unit ：RMB
Items Amount of current period Amount of previous period
Income tax at current period according to taxation and related
2,862,552.42 8,975,517.45
regulation
Adjustment Deferred income tax -177,539.08 -542,759.47
Total 2,685,013.34 8,432,757.98
63. Calculation process of basic earnings per share and dilute earning per share
（1）Calculating formula of income per share:
Basic earnings per share=P/（S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk）
dilute earning per share=P1/(S0 ＋ S1 ＋ Si×Mi÷M0–Sj×Mj÷M0–Sk+ common stock weighted average of
subscription warrant, stock option, transferable bond)
（2）Calculating process of income per share
Basic earnings per share belonging to common stock shareholder in January–June 2012=-18,736,243.07
/336,521,849=-0.06RMB/shares
Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses in
January –June 2012=24,882,008.05/336,521,849 =-0.07 RMB/shares.
Dilute earning per share belonging to common stock shareholder in January –June 2012= -18,736,243.07
/336,521,849=-0.06 RMB/share
Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses in
January –June 2012=-24,882,008.05/336,521,849 =-0.07 RMB/share
64. Other comprehensive income
Unit：RMB
Items Amount of current period Amount of previous period
1.Loss amount produced by sellable financial assets 13,436,517.7 -4,748,623.88
Less：Deduct: income tax infection produced by
3,506,504.42 -1,074,410.15
sellable financial assets
Net amount transferred into profit and loss at current
period that reckoned into other comprehensive income 669,750 978,174.72
at former period
Subtotal 9,260,263.28 -4,652,388.45
2. The enjoyed share in other comprehensive income
of other invested unit according to equity method
124
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 0 0
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 0 0
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 0 0
Total 9,260,263.28 -4,652,388.45
65.Cash flow statement Notes
（1）Cash received related to other operating activities
Unit：RMB
Items Amount
Compensation fund 12,081,400
125
Account received from Jiangxi Xuanli Thread Co., Ltd.
Summary of other scattered incomes 7,443,112.16
Total 19,524,512.16
（2） Cash paid related to other operating activities
Unit：RMB
Items Amount
Research & development expenses 4,456,731.49
Office expenses 1,089,864.54
Business hospitality 1,013,104.28
Transportation expenses 1,100,996.66
Travel fee 813,485.09
Transpiration expenses 1,541,415.04
Audit and consultation fee 1,075,320
Post and Communication fee 216,691.3
Insurance premium 211,463.69
Water and electricity 271,636.45
Repair fee 163,515.65
exhibition fee 231,090.9
Other 13,484,744.33
Total 25,670,059.42
（3） Cash received related to other investment activities
□Applicable √Not applicable
（4）Cash paid related to other investment activities
Unit：RMB
Items Amount
Interest on fixed deposit interest term deposits 17,403.45
Total 17,403.45
（5）Cash received related to financing activities
□Applicable √Not applicable
（6）Cash paid related to financing activities
126
Unit：RMB
Items Amount
Second issued related cost 1,210,000
Total 1,210,000
66. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
Unit :RMB
Supplement Information Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from operating activities -- --
Net profit -18,736,243.07 32,363,976.69
Add: Impairment loss provision of assets 2,412,245.98 3,024,631.81
Depreciation of fixed assets, oil and gas assets and
22,603,708.56 11,255,475.8
consumable biological assets
Amortization of intangible assets 1,062,000.36 1,036,863.64
Amortization of Long-term deferred expenses 280,408.62 94,215.62
Loss on disposal of fixed assets, intangible assets and other
-41,000 -52,994
long-term deferred assets
Loss from Fixed assets Discard 3,125.23
Loss of fair value fluctuation on assets
Financial cost 1,596,608.65 -3,526,646.3
Loss on investment -4,523,812.58 -3,502,158.53
Decrease of deferred income tax assets -177,539.08 -542,759.47
Increased of deferred income tax liabilities -34,248.72
Decrease of inventories -7,623,989.9 -6,949,406.08
Decease of operating receivables -22,975,805.51 3,616,534.8
Increased of operating Payable 10,062,183.03 -24,239,736.5
Other
Net cash flows arising from operating activities -16,058,109.71 15,393,748.76
II. Significant investment and financing activities that
-- --
without cash flows:
Liability transfer to capital
Convertible corporate bond due within 1 year
127
Finance leased fixed assets
III. Net increase of cash and cash equivalents -- --
Ending balance of cash 349,939,787.89 291,006,454.63
Less: Beginning balance of cash 291,006,454.63 417,686,594.8
Add: Ending balance of cash
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents -113,877,854.9 -126,680,140.17
（2）Information on acquiring or disposing subsidiary company and other business unit at this period.
□Applicable √Not applicable
Unit：RMB
Items Year-end balance Year-beginning balance
I. Cash 349,939,787.89 291,006,454.63
Of which: Cash in stock 128,691.48 331,135.19
Bank savings could be used at any time 275,890,839.4 245,766,908.71
Other monetary capital could be used at any time 73,920,257.01 44,908,410.73
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 349,939,787.89 463,817,642.79
Notes: Cash and cash equivalents excluding the parent company or subsidiary of the group using restricted cash
and cash equivalents.
（VIII）Accounting treatment of asset securitization
1 On the principal of asset securitization transactions and its accounting, bankruptcy, isolation provisions
In the reporting period, the company has no asset securitization service.
2. The Company does not have controlled over but in fact assume the risk situation of special-purpose body
□Applicable √Not applicable
(IX). Related parties and related-party transactions
1. Parent company information of the enterprise
Unit ：RMB
128
Vote
Share
right
ratio of
ratio of
parent
Parent Legal parent Ultimate
Related Enterpris Registrat Business Registere company Organiza
company represent company controlli
parties e type ion place d capital against tion code
name ative character against ng party
the
the
company
company
(%)
(%)
Shenzhe Parent State-ow Shenzhe Fan Investme State-ow
n Compan ned n Chunming nt ned
Investme y enterpris Assets
nt e Supervisi
Holdings on and 7675664
54.26% 59.05%
Co., Ltd. Administ 2-1
ration
Commiss
ion of
Shenzhe
n
2. Subsidiary companies information of the enterprise
Unit:RMB
Full name
Subsidiary Legal Share
of Enterprise Registrati Business Registered Vote right Organizati
company representa holding
subsidiary type on area character capital ratio (%) on code
type tive ratios(%)
company
wholly Shenzhen Zhang Fabrics,
owned Hong bedding,
subsidiary clothing,
textiles
raw
19217233
Shenzhen materials 4,000,000 90% 100%
2
Jinlan processing
Decorativ manufactu
e Articles Limited ring,
Industrial Liability wholesale
Co., Ltd. Company and retail.
Shenzhen wholly Limited Shenzhen Zhu Jun Domestic
19218018
Lisi owned Liability commerce 2,360,000 90.68% 100%
0
Industrial subsidiary Company , materials
129
Co., Ltd. supply
and sales
wholly Shenzhen Zhu Jun Accommo
owned dation,
10,005,30 19223330
Shenzhen subsidiary Limited restaurant 95% 100%
0 X
Huaqiang Liability s, business
Hotel Company center;
Shenfang wholly Shenzhen Gao
Property owned Guoshi
19222505
Managem subsidiary Limited Property 1,600,000 93.75% 100%
1
ent Co., Liability Managem
Ltd. Company ent
Shenzhen wholly Shenzhen Zhang Productio
Beauty owned Hong n of fully
Century subsidiary electronic
25,000,00 74123123
Garment jacquard 100% 100%
0 6
Co., Ltd. Limited knitting
Liability whole
Company shape
Subsidiary Shenzhen Feng Spewing
Zhenzhen holding Junbin acupunctu
Zhongxin company re cloth,
g Fibre revision,
61881037
folds and 1,680,000 75%
1
cotton fusible
Clothing Limited interlining
ornament Liability fabric
Co., Ltd. Company products
Shenzhen wholly Shenzhen Zhang
Shenfang owned Hong Operating
72856323
Import & subsidiary Limited import 5,000,000 100% 100%
6
export Liability and export
Co., Ltd. Company business
wholly Shenzhen Zhu Jun
Shenzhen owned
Shengbo subsidiary
250,000,0 61887700
Ophotoele Operating 100% 100%
00 7
ctric Limited import
Technolog Liability and export
y Co., Ltd Company business
Shengtou wholly Hongkong Zhu Productio
（ HK ） owned Limited Meizhu n and
8011 100% 100% ---
Co., Ltd. subsidiary Liability Liu sales of
Company Honglei polarizer
130
3. Joint-venture and affiliated enterprises information of the company
Unit ：RMB
Business
Share vote Assets Liability Net assets Net benefit
Invested unit Enterprise Registration Legal Business Registered total Organization
holding right amount at end amount at end amount at end at this Affiliation
name type Place representative character capital income at code
ratio(%) ratio(%) of period of period of period period relation
this period
I.Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- --
enterprise
Shenzhen
Haohao
Limited .Joint
Property Shenzhen Feng Junbin Serivice 50% 50% 7,238,414.8 490,259.36 6,748,155.44 894,781 530,425.73 61881295-9
Company enterprise
Leasing Co.,
Ltd.
Shenzhen
Xieli Joint
Shenzhen Ye Yongling Manufacturing 50% 50% 7,312,993.17 2,248,599.63 5,064,393.54 874,800 307,479.46 618801838
Automobile Limited enterprise
Co., Ltd Company
Shenzhen
Tianlong
Limited Joint
Industry & Shenzhen Gao Guoshi Manufacturing 50% 2,579,618.45 -2,271,133.61 19217412-7
Company enterprise
Trading Co.,
Ltd.
II. Affiliated
-- -- -- -- -- -- -- -- -- -- -- -- -- --
enterpris
Shenzhen
Changlianfa Limited Affiliated
Shenzhen Zhu Meizhu Serivice 40.25% 40.25% 5,328,838.34 1,001,618.03 4,327,220.31 172,950 -27,451.19 618865073
Printing and Company enterprise
dyeing Co.,
131
Ltd.
Jordan Jordan
Limited Chen Affiliated
Garment Manufacturing 35% 35% ---
Company Wenxian enterprise
Factory
Hengshun Saipan
(Saipan) Limited Affiliated
--- Manufacturing 35% 35% ---
Industry Co., Company enterprise
Ltd.
132
4. Other Related parties information of the enterprise
Other Related parties name Relation of other Related parties with the
Organization code
company
Shenzhen Shenchao Technology
Subject to the same party controls 733069849
Investment Co., Ltd.
Shenzhen Guanhua Printing & dyeing Co.,
618868266
Ltd. Sharing company
Shenzhen Xiangjiang Trade Co., Ltd. Sharing company 192173722
Shenzhen Xinfang Knitting Co., Ltd. Sharing company 618811673
Shenzhen Dailishi Underwear Co., Ltd. Sharing company 618811358
Anhui Huapeng Textile Co., Ltd. Sharing company 73731461-0
5. Related Transactions
（1）The providing service/sells goods
Sale of goods and services
Unit:RMB
Occurred current term Occurred in previous term
Percenta Percenta
Pricing and
Subjects of the ge in ge in
Related parties decision making
related transactions Amount similar Amount similar
process
trades trades
（%） （%）
Shenzhen
Investment
Sales of textiles Market price 48,000 0.35% 124,725 0.61%
Holdings Co.,
Ltd.
（2）Related trusteeship or contracting
In the report period, The company did not occur related managed/contracting situation.
（3）Related leasing
In the report period, The company has no occur related leasing .
（4）Status of related party guarantee
In the report period, This company had no occur related guarantee.
（5）Related party funds
In the report period, This company had no Related party funds .
（6）The information of asset transfer, debt restructured of the related parties
In the report period, This company had no asset transfer, debt restructured of the related parties .
（7）Other related transactions
In the report period, This company had no other related transactions
133
6. Account receivable and payable of related parties
The account receivable of related parties of the company
Unit ：RMB
Name Related parties Year-end balance Year-beginning balance
Shenzhen Tianlong
Other account
Industry & Trading Co., 686,391.83 686,391.83
receivable
Ltd.
Other account Shenzhen Dailishi
-544,208.42 265,791.58
receivable Underwear Co., Ltd.
Other account
183,906.56
receivable Jordan Garment Factory
Other account Shenzhen Xieli Automobile
169,262
receivable Co., Ltd
Other account Anhui Huapeng Textile
1,800,000
receivable Company
Zhenzhen Zhongxing Fibre
Other account
folds cotton Clothing 618,769.07
receivable
ornament Co., Ltd.
The account payable of related parties of the company Unit：RMB
Name Related parties Year-end balance Year-beginning balance
Shenzhen Xinfang
Other payable 216,789.85 216,789.85
Knitting Co., Ltd.
Shenzhen Xinfang
Other payable 240,000 240,000
Knitting Co., Ltd.
Shenzhen Changlianfa
Other payable Printing and dyeing Co., 752,484.46 807,116.07
Ltd.
Shenzhen Hengsheng
Other payable 1,367,940.67 1,367,940.67
Investment Co., Ltd.
Shenzhen Haohao Property
Other payable 3,403,868.07 3,403,868.07
Leasing Co., Ltd.
(X). Share payment
□Applicable √Not applicable
1.Overall situation of share payment
□Applicable √Not applicable
2.Share payment settled in term of equity
□Applicable √Not applicable
3.Share payment settled by cash
134
□Applicable √Not applicable
4.Service paid by shares
□Applicable √Not applicable
5.Revising and termination of share payment
(XI) Subsequent events
1. Liabilities formed from pending lawsuit and mediation and its financial impact
As of June 30,2012，The company has no liabilities formed from pending lawsuit and mediation.
2. For other units to provide debt guarantees, forming of contingent liabilities and the financial impact.
.As of June 30, 2012，The company has no other units to provide debt guarantees, forming of contingent liabilities
and the financial impact.
2.As of December 31, 2011，The company has no liabilities formed from other units offering。
(XII). Commitment events.
1.Importance commitment events
As of June 30, 2012，the company has no important commitment events.
2. Information guaranteed at the former period.
As of June 30, 2012，the company has no commitment information guaranteed at the former period.
(XIII). Post-balance-sheet events
1. Statement on material post-balance-sheet events
Unit： RMB
Influence on the financial
Reason for not able to
Items Contents position and business
estimate the influence
performance
There is the estimation that
the accident will cause RM
B30 million of the annual b
The Fire Accident in Details please see the
usiness income decreased a
Longhua Plant Announcement 2012-32
nd RMB3.5 million of the
business profits reduced in
2012.
2.Statement on profit distribution in post balance sheet period
□Applicable √Not applicable
3.Statement on other issues in post balance sheet period
After decision by the board of directors of the Company, the company is neither to distribute the net profit for this
period nor to capitalize and capital surplus.
(XIV). Other Important events
1. Non-monetary asset exchange
In the report period，the company has no non-monetary asset exchange service.
2. liabilities recombination
In the report period，the company has no liabilities recombination..
135
3. Enterprise consolidation.
In the report period，the company has no enterprise consolidation.
4. Leasing
In the report period，the company has not large leasing.
5. Financial instruments issued outside and can be transferred to stock at end period.
As of June 30, 2012，the company has no financial instruments issued outside and can be transferred to stock at
end period.
6. Annuity Plan content and significant changes
None
7. Other important disclosure matters
None
(XV).Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable
□Applicable √Not applicable
（2）Switch back or regain of the account receivable in the reporting period
□Applicable √Not applicable
（3） Account receivable that needed to actually cancelled after verification at this reporting period
□Applicable √Not applicable
（4）In the balance of accounts payable, the information of shareholders holding 5% (including 5%) or more of
the voting right of the Company.
□Applicable√ Not applicable
（5）Nature or content of the large amount of other account receivables
□Applicable √Not applicable
（6）The front 5 units‘ information of account receivable
□Applicable √Not applicable
（7）Account receivable from Related affiliated parties
□Applicable √Not applicable
（8）Not qualifying for derecognizing account receivables of transferred amount is RMB.
□Applicable √Not applicable
（9）Other receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions
□Applicable √Not applicable
2.Other receivable
（1）Other receivable
Unit：RMB
Year-end balance Year-beginning
Provision for bad
Book balance Provision for bad debts Book balance
debts
Classification
Propo Propo Propo Propo
Amount rtion( Amount rtion( Amount rtion( Amount rtion(
%) %) %) %)
136
Other Receivables with
major individual amount and 42.56
12,075,436.43 44.1% 12,075,436.43 100% 12,075,436.43 12,075,436.43 100%
bad debt provision provided %
individually
Other Receivables provided bad debt provision in groups
54.76 17.57 56.34 18.54
Account age group 14,992,221.08 2,634,408.43 15,984,158.71 2,963,771.03
% % % %
54.76 17.57 56.34 18.54
Subtotal of group 14,992,221.08 2,634,408.43 15,984,158.71 2,963,771.03
% % % %
Other Account receivable
with minor individual
311,486.35 1.14% 311,486.35 100% 311,486.35 1.1% 311,486.35 100%
amount but bad debt
provision is provided
Total 27,379,143.86 -- 15,021,331.21 -- 28,371,081.49 -- 15,350,693.81 --
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.
Unit：RMB
Provision for bad Allotment rate Reason
Content Book balance
debts
Separate amount is
12,075,436.43 12,075,436.43 100% Unable to recover
large
Total 12,075,436.43 12,075,436.43 -- --
Other Accounts receivable using the age analysis method for measurement of impairment allowances:
Unit： RMB
Year-end balance Year-beginning balance
Age
Book balance Provision for bad Book balance Provision for bad
Amount Proporti debts Amount Proporti debts
137
on（%） on（%）
Withn 1 year
Thereunto： -- -- -- -- -- --
Within 1 year 7,336,391.58 48.93% 366,819.58 7,356,391.58 46.02% 367,819.58
Subtotal 7,336,391.58 48.93% 366,819.58 7,356,391.58 46.02% 367,819.58
1-2 years 155,800 1.04% 155,800 155,800 0.98% 15,580
2—3 years 7,490,029.5 49.96% 2,247,008.85 8,278,060.57 51.79% 2,483,418.17
Over 3 years 10,000 0.07% 5,000 193,906.56 1.21% 96,953.28
3- 4 years
4-5 years
Over 5 years
Totla 14,992,221.08 -- 2,634,408.43 15,984,158.71 -- 2,963,771.03
Using percentage balance method of provision for bad debts of other account receivable in group：
□Applicable√ Not applicable
Using other methods to provision for bad debts of other account receivable in group：
□Applicable√ Not applicable
Separate amount is not large, the account receivable with big combination risk after combined via risk character:
Unit ：RMB
Content Book balance
Provision for bad debts Allotment rate Reason
Item amount is not
311,486.35 311,486.35 100% Unable to recover
significant
Total 311,486.35 311,486.35 100% --
（2）Switch back or regain of the other account receivable in the reporting period
This company had no Switch back or regain of the other account receivable in the reporting period
（3）Other account receivable that needed to actually cancelled after verification at this reporting period
There is no other account receivable that needed to actually cancelled after verification at this reporting period
（4）Particulars about the other receivable accounts due from shareholders with 5% or over of the Company‘s
shares in the report period
□Applicable√ Not applicable
（5）Natures or contents of other receivable accounts with large amount
Unit:RMB
Nature or content of the
Name Amount Portion in total other receivables(%)
account
Export tax rebates 22,848,638.37 Export tax rebates 46.65%
Jiangxi Xuanli String Co., Ltd. 11,389,044.6 Loan 23.25%
138
Shenzhen Finance Committee 1,047,437.1 Deposit 2.14%
Shenzhen Tianlong Industry &
686,391.83 Loan 1.4%
trade Co., Ltd.
Total 35,971,511.90 -- 73.44%
（6） The front 5 units‘ information of Other account receivable
Unit：RMB
Relation with the Portion in total other
Name Amount Ages
Company receivables (%)
Jiangxi Xuanli String
Non-related parties 11,389,044.6 2-3 years 41.6%
Co., Ltd.
Shenfang Imports &
Subsidiary 7,168,680.72 2-3 years 26.18%
exports Co., Ltd.
Shenzhen Beauty
Century Garment Co., Subsidiary 5,075,600 Within 1 year 18.54%
Ltd.
Shenzhen Tianlong
Industry and Trade Co., Joint venture 686,391.83 2-3 years 2.51%
Ltd.
Shenzhen Guantai
Non-related parties 146,176.8 2-3 years 0.53%
Company
Total -- 24,465,893.95 -- 89.36%
（7）Other Account receivable from Related affiliated parties
Unit: RMB
Unit name Relation with the company Amount Percentage of account receivable
Shenzhen Shenfang Imports &
subsidiary 7,168,680.72 26.18%
exports Co., Ltd.
Shenzhen Beauty Century
subsidiary 5,075,600 18.54%
Garment Co., Ltd.
Shenzhen Tianglong Industry
Joint venture 686,391.83 2.51%
and trade Co., Ltd.
Total -- 12,930,672.55 47.23%
（8）Other account receivable that is not accord with expiration confirmation condition
□Applicable √Not applicable
（9）Other receivables subject to asset securitization , needed to briefly describe the arrangements related to
transactions.
There is not such arrangements related to transactions Other receivables subject to asset securitizati
on ,
139
3. .Long –term stocks equity investment
Unit ：RMB
Explanation of diffidence
Shareholding Voting right
Accounting Initial investment between shareholding Current Cash
Name Original balance change Ending Balance proportion in the proportion in Devalue
method cost proportion and voting right devalue bonus
investee the investee
proportion in investee
Shenzhen Jintian Industry Equity 14,831,681.5 14,831,681.5 14,831,681.5 3.68% 3.68% 14,831,681.5
(Group)Co., Ltd. method
ShenzhenHaohao Equity 2,040,102.73 3,537,070.37 259,352.31 3,796,422.68 50% 50%
PropertyLeasing Co., Ltd. method
Shenzhen Jintian Industry Equity 1,529,483.67 2,691,516.71 107,335.05 2,798,851.76 50% 50% 266,654.99
Co., Ltd. method
Shenzhen Changlianfa
Printing and dyeing Equity 2,524,500 1,752,755.27 -11,049.1 1,741,706.17 40.25% 40.25%
Company method
Equity
Jordan Garnent Factory method
7,240,625 2,221,984.47 -56,550.72 2,165,433.75 35% 35%
Shenzhen Tianglong
Industry and trade Co., Equity 685,000 50%
Ltd. method
Hengshun（Saipan） Equity 8,228,350 35% 35%
Industry Co., Ltd. method
Shenzhen Shengbo
optoelectronic Technology Co., Cost 40,500,000 848,500,000 108,163,070.03 956,663,070.03 100% 100%
Ltd. method
Shenzhen Jinlan
Decorative Articles Cost 5,470,000 5,470,000 5,470,000 90% 100%
Industrial Co., Ltd. method
Shenzhen Lisi Industrial Cost 6,666,132.6 6,666,132.6 6,666,132.6 90.68% 100%
Co., Ltd. method
Shenzhen Beauty Centruty Cost 30,867,400 30,867,400 30,867,400 100% 100% 2,167,431.21
Garment Co., Ltd. method
Shenzhen Shenfang Import Cost 6,299,700 6,299,700 6,299,700 100% 100% 82,156.61
& Export Co., Ltd. method
Shenzhen Huaqiang Cost 14,623,003 14,623,003 14,623,003 95% 100%
Hotal method
Shenfang Property Cost 1,600,400 1,600,400 1,600,400 93.75% 100% 0
Management Co., Ltd. method
Zhenzhen Zhongxing Fibre
folds cotton Clothing Cost 1,260,000 1,260,000 1,260,000 75% 1,260,000
ornament Co., Ltd. method
Shenzhen Jiafeng Textile Cost 16,800,000 16,800,000 16,800,000 10.8% 10.8% 16,800,000
Co., Ltd. method
Shenzhen Guanhua Pruting Cost 5,491,288.71 5,491,288.7 5,491,288.7 45% 45% 5,058,307.01
140
and dyeing Co., Ltd. method
Union Development Group Cost 2,600,000 2,600,000 2,600,000 2.87% 2.87%
Co., Ltd. method
Shenzhen Xiangjiang Cost 160,000 160,000 160,000 20% 20%
Trade Co., Ltd. method
Shenzhen Xinfang Knitting Cost 524,000 524,000 524,000 20% 20%
Co., Ltd. method
Hongkong Yehui Cost 2,392,914.37 2,392,914.28 2,392,914.28 17.85% 17.85%
International Co., Ltd. method
Shenzhen Dailishi Cost 532,062.5 2,559,856.26 2,559,856.26 30%
Underwear Co., Ltd. method
Anhu Huapeng Textile Co., Cost 25,000,000 25,410,209.5 25,410,209.5 50%
Ltd. method
Total -- 197,866,644.08 996,259,912.66 108,462,157.57 1,104,722,070.23 -- -- -- 40,466,231.32 0 0
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.
141
4. Business income, Business cost
（1）Business income, Business cost
Unit：RMB
Items Amount of current period Amount of previous period
26,248,972.75 25,693,964.21
Income from Business income
1,957,898.32 1,718,047.98
Other Business income
Business cost 6,458,435.54 5,806,617.39
Total 28,206,871.07 27,412,012.19
（2）Main business（Industry）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Rental
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Total
（3）Main business（Production）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Rental income
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Total
（4）Main Business（Area）
Unit：RMB
Amount of current period Amount of previous period
Name
Business income Business cost Business income Business cost
142
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Shenzhen
26,248,972.75 4,500,537.24 25,693,964.21 4,088,569.41
Total
（5）Total income and the ratio of operating income from top five clients
Unit：RMB
Name Business Income Proportion(%)
11,813,147.5 41.88%
Jinsitai Investment Development Co., Ltd.
Shenzhen Shixingkai Beauty Co., Ltd. 457,652.4 1.62%
China merchants Bank, Shenfang Building Branch 444,593.22 1.58%
China Ping An Life Insurance ,Shenzhen Branch 381,600 1.35%
Shenzhen City Zhongbai Computer technology Inc 322,925.94 1.15%
Total 13,419,919.06 47.58%
5. Investment income
（1）Income from investment
Unit：RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment measured by
1,305,000 1,380,634.56
adopting the cost method
Income from long-term equity investment measured by
299,087.54 97,453.88
adopting the Equity method
Income from disposal of long-term equity investment
hold the investment income which gained from the
transactional financial assets
Gain the investment income from the held-to-maturity
investment
Hold the investment income during from
available-for-sale financial assets
Dispose the investment income from the transactional
financial assets
Dispose the investment income from the held-to-maturity
investment
143
Dispose the investment income from the available-for-sale
2,376,792.47 1,482,128.46
financial assets
Other
Total 3,980,880.01 2,960,216.9
（2）Long term equity investment calculated to cost method：
Unit：RMB
Name Amount of current Amount of previous Change cause
period period
Shenzhen Xiangjiang Trade Co., Ltd. 65,634.56
Shenzhen Dailishi Underwear Co., Ltd. 405,000 415,000
Anhui Huapeng Prnting & dyeing Garment
900,000 900,000
Co., Ltd.
Total 1,305,000 1,380,634.56 --
（3）Long term equity investment calculated via equity method
Unit ：RMB
Name Amount of current Amount of previous Change cause
period period
Shenzhen Haohao Property Leasing Co.,
259,352.31 235,155.43
Ltd.
Shenzhen Xieli Automobile Co., Ltd. 107,335.05 100,745.09
Shenzhen Changlianfa Printing & dyeing Company -11,049.1 26,225.18
Jordan Garment Factory -56,550.72 -264,671.82
Total 299,087.54 97,453.88 --
6. Supplement information of Consolidated Flow Statement
Unit：RMB
Items Amount of current
Amount of previous period
period
1. Adjusting net profit to net cash flow in operating activities: -- --
Net profit 6,941,518.47 18,533,246.48
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Add： Provision for impairment of assets -342,179.97 -146,202.21
Fixed assets depreciation 4,258,006.69 4,496,879.76
Amortization of intangible assets 194,957.64 194,943.64
Amortization of long-term expenses to be amortize
The losses on the disposal of fixed assets, intangible assets and other
-52,994
long-term assets
Loss on retirement of fixed assets
Loss on changes of Fair value
Financial expenses -3,864,169.21
Investment losses -3,980,880.01 -2,960,216.9
Decrease of deferred income tax asset 85,544.99 -35,088.53
Increase of deferred income tax liability
Decrease in inventory
Decrease in operating receivable 1,800,750.56 3,162,921.98
Increase in operating payables -3,223,511.36 -8,580,076.76
Other
Net cash flows from operating activities 5,734,207.01 10,749,244.25
2.Investing and financing activities that do not involve cash receipts
-- --
and payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under financial lease
3.Net increase in cash and cash equivalents -- --
Cash at the end of the period 30,852,896.74 97,766,287.48
Less：Cash at the beginning of the period 133,011,826.29 84,353,357.87
Add: Cash equivalents at the end of the period
Less：Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -102,158,929.55 13,412,929.61
7. Reversal purchase of the assess under assessed value, liabilities information
□Applicable√ Not applicable
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（16）Supplement information
1. Return on net assets and earnings per share
Unit：RMB
Earnings per share（RMB）
Return on net assets .
Profit of the report period Basic earnings per Diluted gains per
Weighted（%）
share share
Net profit attributable to the Common
-1.37% -0.06 -0.06
stock shareholders of Company.
Net profit attributable to the Common
stock shareholders of Company after -1.82% -0.07 -0.07
deducting of non-recurring gain/loss.
2. The explanation of abnormal circumstance and and reasons of items in major accounting statement.
（1）Bills receivable decreased by 32.73% over beginning of period mainly due to endorsed assignment;
（2）Other receivables increased by 63.5% over beginning of period mainly due to sharp increase of
receivable export rebates;
（3）Fixed assets increased by 80.82% over beginning of period, which were mainly the fixed assets carried
forward from phase-I project of polarizer sheet for TFT-LCD;
（4）Construction in progress decreased by 83.63% over beginning of period mainly because the equipment
of phase-I project of polarizer sheet for TFT-LCD was transferred into fixed assets;
（5）Accounts payable increased by 56.21% over beginning of period mainly due to increase of raw material
purchase for phase-I project of polarizer sheet for TFT-LCD;
（6）Taxes and levies payable decreased by 121.42% over beginning of period mainly due to payment of
VAT on purchase of imported equipment and equipment provided by Party A for phase-I project of polarizer sheet
for TFT-LCD
（7）Interest payable increased by 89.33% over beginning of period mainly due to increase of special loan
for phase-I project of polarizer sheet for TFT-LCD;
（8）Other payable increased by 34.23% over beginning of period mainly due to increase of Engineering
Equipment funds for phase-I project of polarizer sheet for TFT-LCD;
（9）Deferred income tax liabilities increased by 39.35% over beginning of period mainly due to increase of
market value of financial assets available for sale;
（10）Administrative expenses increased by 72.65% year on year, mainly due to increase of R&D expense
and other relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for
TFT-LCD;
（11） Financial expensed increased by 124.64% over beginning of period mainly due to increase of special
loan interest for phase-I project of polarizer sheet for TFT-LCD;
（12）Investment income increased by 29.17% year on year mainly due to year-on-year increase of stocks
sold through secondary market;
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（13）Non-operating income decrease 69.63% year on year mainly due to year-on-year reduction of
reorganization income of Guangdong Sun Rise Group Co., Ltd.;
（14）Total profit decreased by 139.34% year on year mainly due to increase of relevant expenses after trial
batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(15) Income tax expenses decreased by 68.16% year on year mainly due to decrease of taxable income in
current period;
(16) Net profit decreased by 157.89% year on year mainly due to year-on-year increase of expenses of
phase-I project of polarizer sheet for TFT-LCD;
（17）Other composite income increased by 299.04% year on year mainly due to increase of end-of-period
market value of stocks held by the Company over beginning of period;
（18）Other cash receipt related to operating activities increased by 94.47% year on year mainly due to
year-on-year sharp increase of governmental subsidy received;
（19）Other cash payment related to operating activities increased by 43.88% year on year mainly due to
increase of relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for
TFT-LCD;
(20) Net cash flows from operating activities decreased by 204.32% year on year mainly due to decrease of
relevant expenses after trial batch production of line 4 of phase-I project of polarizer sheet for TFT-LCD;
(21) .Cash received from disposal of investments increased by 86% year on year mainly due to year-on-year
increase of stocks sold through secondary market;
（22）The net amount of cash received from the disposal of fixed assets, intangible assets and other
long-term assets increased by 739.46% mainly due to the disposal of machinery and equipment resulting from the
business transformation of Shenzhen Jinlan Decoration Industrial Co., Ltd., a subsidiary of the Company;
（23）Other cash received relating to investing activities decreased by 100% year on year mainly due to
year-on-year decrease of recovery of time deposit principal and interests;
（24）The cash paid for construction of fixed assets, intangible assets and other long-term assets decreased
by 69.23% year on year mainly due to decrease of project investment expenditure with the construction of phase-I
project of polarizer sheet for TFT-LCD approaching the end;
(25) Cash flow generated by financing increased by 94.87% mainly due to the repayment of long-term loans
to become due within one year in the same period of previous year;
IX．Documents Available for Inspection
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.
This report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese
version shall prevail.
Chairman of the board：Wang Bin
The report was approved by the board of directors of the Company on August 1,2012.
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