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深纺织B:2013年半年度报告(英文版)2013-08-23  

						                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




Shenzhen Textile (Holdings) Co., Ltd.


 The Semi-Annual Report 2013




             August 2013




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                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




              I. Important Notice, Table of Contents and Definitions

The Board of Directors,the Supervisory Committee, the directors, the supervisors, and expecutives of the
Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the
Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of
the Report.
     Directors other than the followings presented the Board Meeting at which this report was examined :

                                                          Reason for not presenting the
 Name of the director absented        Position                                               Name of consignee
                                                                    meeting

None

     The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves
either.
     Mr.Wang Bin, The Company leader, Mr. Jin Zhenyuan, Chief financial officer and the Mr.Liu Yi, the person
in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity
and completeness of the financial report enclosed in thel report.




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                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



                                         Table of Contents




2013 Semi- Annual Report

I.Important Notice, Table of contents and Definitions

II. Basic Information of the Company

III. Summary of Accounting Highlights and Business Highlights

IV. Report of the Board of Directors

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Information about Directors, Supervisors and Senior Executives

VIII. Financial Report

IX. Documents available for inspection




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                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



                                               Definition


             Terms to be defined        Refers to                           Definition

                                        Refers
Company/The Company/ Shen Textile              Shenzhen Textile (Holdings) Co., Ltd
                                          to
                                        Refers Articles of Association of Shenzhen Textile (Holdings) Co.,
Articles of Association
                                          to Ltd
Actual controller / National Assets
                                        Refers National Assets Regulatory Commission of Shenzhen
Regulatory Commission of Shenzhen
                                          to Municipal People's Government
Municipal People's Government
The Controlling shareholder/ Shenzhen   Refers
                                               Shenzhen Investment Holdings Co., Ltd.
Investment Holdings Co., Ltd.             to
                                        Refers
Shenchao Technology                            Shenzhen Shenchao Technology Investment Co., Ltd.
                                          to
                                        Refers
Shengbo Optoelectronic                         Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
                                          to
                                        Refers
CSOT                                           Shenzhen China Star Optoelectronic Technology Co., Ltd.
                                          to
                                        Refers
“CSRC”                                       China Securities Regulatory Commission
                                          to
                                        Refers
Company Law                                    Company Law of the People’s Republic of China
                                          to
                                        Refers
Securities Law                                 Securities Law of the People’s Republic of China
                                          to
                                        Refers
The Report                                     2013 Semi-Annual Report
                                          to




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                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




II. Basic Information of the Company



1. Company Information


Stock abbreviation          Shen Textile A ,Shen Textile B     Stock code:                000045、200045

Modified stock ID(if any) None
Stock exchange for
                            Shenzhen Stock Exchange
listing:
Name in Chinese             深圳市纺织(集团)股份有限公司
English name (If any)       SHENZHEN TEXTILE (HOLDINGS) CO.,LTD.
English abbreviation (If
                            STHC
any)
Legal Representative        Wang Bin
2. Contact person and contact manner
                                                  Board secretary               Securities affairs Representative
Name                                   Chao Jin                               Jiang Peng
                                       6/F, Shenfang Building, No.3           6/F, Shenfang Building, No.3
Contact address                        Huaqiang North Road, Futian            Huaqiang North Road, Futian
                                       District, Shenzhen                     District, Shenzhen
Tel                                    0755-83776043                          0755-83776043
Fax                                    0755-83776139                          0755-83776139
E-mail                                 chaoj@chinasthc.com                    jiangp@chinasthc.com


3.Other

1.Way to contact the Company

Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable √ Not Applicable
Registrations address, offices address and codes as well as website and email of the Company hasnochange in
  reporting period, found mor details in Annual Report 2012.

2. About information disclosure and where this report is placed

Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for

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                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2012 Annual Report.

3.Change of the registered information

Did any change occur to the registered information during the reporting period?
√ Applicable □Not Applicable
                                                                   Number of
                            Date of                Authority     Business License    Taxation                         Organization
                          Registration           Registered with of Enterprise as Registration No.:                      Code
                                                                  Legal Person
Registration at the
end of the          April 9, 2013               Shenzhen           440301105031014         440301192173749         192173749
reporting period
The company administrated capital changed from RMB 336,521,849 to RMB 506,521,849 on 9th April 2013.

4.Other relevant information

Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable



III. Summary of Accounting data and Financial index

1.Major accounting data and /Financial indexs

May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
          □ Yes √ No
                                                                                                             Increase/decrease over the
                                                    Reporting period           Same period of last year
                                                                                                            same period of last year(%)

Operating income(RMB)                                    576,348,010.06                375,432,991.91                         53.52%

Net profit attributable to the shareholders
                                                            -3,642,102.17                 -18,736,243.07                        80.56%
of the listed company(RMB)

Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of              -24,203,781.00                 -25,242,008.05                         4.11%
listed company(RMB)

Cash flow generated by business operation,
                                                           -57,514,854.53                 -16,058,109.71                       -258.17%
net(RMB)

Basic earning per share(RMB/Share)                                     -0.01                        -0.06                       -83.33%

Diluted gains per                                                      -0.01                        -0.06                       -83.33%



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                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


share(RMB/Share)(RMB/Share)

Weighted average income/asset ratio(%)                           -1.57%                        -1.37%          Decreaed by 0.2%

                                                 As at the end of the                                     Changed (%)over end of
                                                                             As at the end of last year
                                                  reporting period                                               prev. year

Gross assets(RMB)                                       2,808,457,777.29             1,880,660,667.21                        49.33%

Shareholders’ equity attributable to
                                                          2,259,589,492.24             1,303,011,954.39                        73.41%
shareholders of the listed company(RMB)

(II)The differences between domestic and international accounting standards

1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.

                                                                                                                         Unit:RMB


                                   Net profit attributable to the shareholders              Net Assets attributable to the
                                             of the listed company                       shareholders of the listed company
                                    Amount in the             Amount in the           End of the reporting     Beginning of the
                                   reporting period           previous period               period             reporting period
According to CAS                          -3,642,102.17              -18,736,243.07        2,259,589,492.24        1,303,011,954.39

Items and amount adjusted according to IAS


2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the
Accounting standards Outside Mainland China and the Chinese Accounting Standards.

                                                                                                                              Unit:RMB



                                   Net profit attributable to the shareholders              Net Assets attributable to the
                                             of the listed company                       shareholders of the listed company
                                    Amount in the             Amount in the           End of the reporting     Beginning of the
                                   reporting period           previous period               period             reporting period
According to CAS                          -3,642,102.17              -18,736,243.07        2,259,589,492.24        1,303,011,954.39

Items and amount adjusted according to IAS


3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.

No difference.

(III)Items and amount of non-current gains and losses
                                                                                                                              Unit:RMB



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                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




                                                                                 Amount                              Notes

                                                                                                     Mainly including the amortized
                                                                                                     governmental R&D subsidy of
                                                                                                     RMB3,954,990.00,High-tech
                                                                                                     industrialization         demonstration
                                                                                                     project        matching                 funds
                                                                                                     amortization             was            RMB
                                                                                                     100,000.00,     new         flat        panel
                                                                                                     display     industry       of          special
                                                                                                     projects amortization was RMB
                                                                                                     500,000 state grant funds, the
                                                                                                     Shenzhen       Municipal           Finance
                                                                                                     Committee      allocated           a     loan
Govemment subsidy recognized in currentgain and loss(excluding
                                                                                                     discount amortization of RMB
those closely related to the Company’s business and granted                          5,645,436.24
                                                                                                     96,822.24, TFT-LCD polarizing
under the state’s policies)
                                                                                                     film industry projects grant funds
                                                                                                     amortization             was            RMB
                                                                                                     600,000.00,      Futian            District,
                                                                                                     Shenzhen industry development
                                                                                                     funds      grants         was           RMB
                                                                                                     101,400.00,         the         Shenzhen
                                                                                                     Municipal        Committee                 of
                                                                                                     emerging industries of strategic
                                                                                                     financial subsidies was RMB
                                                                                                     240,000.00,      Shenzhen               SME
                                                                                                     development, Booth subsidy was
                                                                                                     RMB 52,224.00.

Gain/loss from change of fair value of transactional financial
                                                                                                   Investment income obtained
asset and liabilities, and investment gains from disposal of
                                                                                                   through the secondary
transactional financial assets and liabilities and sellable financial                19,468,746.45
                                                                                                   market to sell the *ST Shen
assets other than valid period value instruments related to the
                                                                                                   Victor Onward A
Company’s common businesses.

Other non-business income and expenditures other than the above                         319,182.75

Amount of influence of income tax                                                     4,871,686.61

Total                                                                                20,561,678.83                       --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable


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                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                     IV. Report of the Board of Directors

I. General

      In the first half of 2013, macroeconomy was continuously depressed due to the slowdown of economic growth
rate at home and abroad. The Company timely adjusted operation strategy according to market change, actively
dealt with various difficulties, made all-out effort to accelerate the construction progress of the project of polarizer
for TFT-LCD, improved the earnings of property enterprises, increased cash flow and actively adjusted asset
structure so as to continue to keep steady development.
      1. In the report period, the Company completed private issue of shares for the phase-II project of polarizer for
TFT-LCD. Additional 170,000,000 shares were listed on March 26, 2013. The net amount of raised proceeds is
RMB 961.75 million. The capital structure and financial structure of the Company were improved and financial
risks were lowered, which laid solid foundation for its strategic transformation and development;
      2. In the report period, As a key project for the strategic transformation of the Company, phase-I project of
polarizer for TFT-LCD made smooth progress. Line 4 and Line 5 were in normal production run and market
reaction was good. The customers for whom products passed certification include Optoelectronic, Longteng
Optoelectronic, Shenchao Optoelectronic, Zhonghang Optoelectronic, etc. Line 4 completed the development and
sampling of polarizer for new type of machines to match the product adjustment of Huaxing Optoelectronic.
While keeping normal production, Line 5 actively developed and introduced new products including the ones of
dye kind and IPS thin polarizers. During the construction of the phase-II project of polarizer for TFT-LCD, the
Company strictly standardized the open tender for project construction while conducting extensive technical
exchange. 6For line 6, the technical exchange for main unit has been basically completed;
      3. In the report period, The textile subsidiaries of the Company were affected by underwear export market. The
orders from Japanese customers decreased. Through developing business and tapping internal resources, the
Company became customer-oriented and order-oriented, grasped the latest demands of domestic consumers,
actively improved R&D and design capability and quickened the development of domestic market. Meanwhile, it
innovated marketing mode and strengthened the promotion of its own brands through three channels, i.e.,
e-business and direct sales, distributorship & agencies and online sales;
      4. In the report period, The property subsidiaries of the Company tapped potential and enhanced efficiency,
strengthened management, actively took actions to deal with market change and comprehensively enhanced the
overall level and quality of property management. As a result, the income from property lease increased by 8.06%
year on year;
      5. In the report period, The Company unceasingly strengthened the construction of internal control system
strictly according to the requirements of regulatory authority. According to relevant provisions of Fundamental
Norms of Internal Control of Enterprises, Supporting Guidelines for Internal Control of Enterprises and Articles
of Association of the Company, it perfected and revised its internal control systems and key business flows,
further strengthened the implementation of internal norms, unceasingly improved its internal control and
mangement based on strengthening daily supervision and special inspection and effectively prevented operation
risks so as to ensure its healthy development;
      6. In the report period, According to relevant work requirements of 100-day Campaign for Production Safety,
the Company conducted much work about safety inspection and timely issued rectification notice and supervised
and urged the completion of rectification after finding problems and potential safety hazards. As a result, it fulfilled
the work target of no serious safety-related accidents in the first half year.



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                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


2.Main business analysis

I. General

     1. Scope of main operation
     At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and
marketing of polarizers for liquid crystal display, management of properties in bustling business districts of
Shenzhen and reserved high-class textile and garment business.
     2. Analysis of change in main financial data
     (1) The operating income in current period increased by RMB 200.9150 million and 53.52% year on year
mainly due to the increase of sales of polarizer;
     (2) The operating cost in current period increased by RMB 191.3372 million and 56.85% year on year
mainly due to the increase of sales cost caused by the growth of polarizer business volume;
     (3) The financial expenses in current period decreased by RMB 14.9997 million and 1401.29% year on year
mainly due to the generation of exchange gains from payable liabilities in yen after depreciation of Japanese Yen
by big margin;
     (4) The assets impairment loss in current period increased by RMB 4.1733 million and 173.01% year on year
mainly due to the increase of provision for bad debts and provision for diminution in value of inventories of
polarizer;
     (5) The investment income in current period increased by RMB 17.3845 million and 384.29% year on year
mainly due to the investment income obtained from additional sales of financial assets available for sale;
     (6) The other composite income in current period decreased by RMB 10.7916 million year on year because
the Company sold financial assets available for sale and transferred out the gains of the preivous period from other
composite income;
     (7) The net cash flows from operating activities decreased by RMB 41.4567 million and 258.17% year on
year mainly due to the increase of purchase of raw materials necessary for polarizers;
     (8) The net cash flows from investing activities decreased by RMB 258.3587 million and 268.17% year on
year mainly due to the redeposit of RMB 300 million as structural deposit in current period;
     (9) The net cash flows from financing activities increased by 925.646 million and 76,499.67% mainly
because the Company privately issued 170,000,000 ordinary RMB shares (par value per share: RMB 1.00) and
raised net proceeds of RMB 961,751,000.85 according to the Approval of Private Issue of Shares by Shenzhen
Textile (Holding) Co., Ltd. (CSRC Permit (2013) No. 2 Document) issued by China Securities Regulatory
Commission.
Year-on-year changes in major financial statistics
                                                                                                             Unit:RMB

                          This report period    Same period last year    YOY change(%)             Cause change

                                                                                             Mainly due to the
Operating income              576,348,010.06         375,432,991.91                   53.52% increase of sales of
                                                                                             polarizer;
                                                                                             Mainly due to the
                                                                                             increase of sales cost
Operating cost                527,913,970.56         336,576,764.17                   56.85%
                                                                                             caused by the growth
                                                                                             of polarizer business


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                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                  volume
Sale expenses             4,096,726.20    3,823,373.24                    7.15%
                                                                                Mainly due to
Administrative
                        75,713,852.63    52,925,299.50                   43.06% increase of expenses
expenses
                                                                                of polarizer R&D
                                                                                Due to exchange
                                                                                gains from
                                                                                depreciation of
Financial expenses      -13,929,247.57    1,070,421.02               -1,401.29% Japanese Yen as a
                                                                                result of increase of
                                                                                purchase of materials
                                                                                and commodities
Income tax expenses       2,920,726.11    2,685,013.34                    8.78%
                                                                                  Due to increase of
R&D investment          45,107,185.59    22,133,249.02                   103.8%
                                                                                  R&D investment
                                                                                Mainly due to the
                                                                                increase of purchase
Net cash flows from
                        -57,514,854.53   -16,058,109.71                -258.17% of raw materials
operating activities
                                                                                necessary for
                                                                                polarizers;
                                                                                Mainly due to the
                                                                                redeposit of RMB
Net cash flows from
                       -354,699,383.79   -96,340,650.17                -268.17% 300 million as
investing activities
                                                                                structural deposit in
                                                                                current period
                                                                                Mainly because the
                                                                                Company privately
                                                                                issued 170,000,000
                                                                                ordinary RMB shares
                                                                                (par value per share:
                                                                                RMB 1.00) and
                                                                                raised net proceeds of
                                                                                RMB 961,751,000.85
Net cash flows from
                       924,435,962.69     -1,210,000.00               76,499.7% according to the
financing activities
                                                                                Approval of Private
                                                                                Issue of Shares by
                                                                                Shenzhen Textile
                                                                                (Holding) Co., Ltd.
                                                                                (CSRC Permit (2013)
                                                                                No. 2 Document)
                                                                                issued by China
                                                                                Securities Regulatory

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                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                              Commission.
Net increase in cash
                              512,091,863.52        -113,877,854.90                 549.69% Ditto
and cash equivalents
Major changes in profit composition or cources during the report period
□ Applicable √ Not applicable
The profit composition or sources of the Company have remained largely unchanged during the report period.
Delay of future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\
□ Applicable √ Not applicable
No future development and plan disclosed in Company’s IPO prospectus, fund raising prospectus and capital
reorganization report into this report period.\


     Implementation of business plans disclosed in previous periods in this period.
      In the report period, Facing adverse factors including rise in cost and fiercer market competition, the
Company actively dealt with difficult market situation, made adequate preparation, made overall arrangement in
advance, adopted the operation policy of "refined management, intensive operation, satisfactory development of
phase-II project and increase of vitality", strengthened refined management, improved its capability of risk control
technological innovation, actively developed markets, quickened the construction of the polarizer project by
centralizing advantageous resources and accelerated its strategic transformation in the report period. It mainly
completed the following work:
    1. Reasonably allocating resources, making all-out efforts to accelerate the construction of the project of
polarizer for TFT-LCD and ensuring project progress as scheduled;
    2. Increasing continuous investment in R&D, satisfactorily developing new technologies and new products,
actively quickening technological innovation and completing the development of ultrathin polarizer of brightening
type for TFT of medium and small sizes on the strength of Line 5;
    3. Seizing critical market opportunities, optimizing product structure, properly conducting market development
and actively increasing market share;
    4. Carrying out thorough construction of internal control system and strengthening enterprise risk management;
    5. Consolidating advantageous markets and making efforts to enhance property occupancy rate and rent
recovery rate;
    6. Establishing internal training and lecturer management system and improving existing training system,
officially starting the running of Shengbo Online College, establishing Online College Management and Appraisal
System, making additional scheme for appraising logistics personnel and clerks and improving appraisal
mechanism;
    7. Strengthening refined management, optimized management processes and improving all systems;
    8. Actively carrying out safety inspection and safety training and earnestly strengthening safety in production
and quality management, completing all kinds of special safety inspection in the report period, timely issuing
rectification notice and supervised and urged the completion of rectification after finding problems and potential
safety hazards and fulfilling the work target of no serious safety-related accidents in the first half year.

3. Business composition

                                                                                                            Unit:RMB


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                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                         Increase/decrease
                                                                     Increase/decrease                        Increase/decrease
                                                                                            of rincipal
                                                                     of reverue in the                          of gross profit
                                                     Gross profit                        business cost over
                   Turnover        Operation cost                     same period of                          rate over the same
                                                       rate(%)                            the same period
                                                                       the previous                             period of the
                                                                                         of previous year
                                                                         year(%)                              previous year (%)
                                                                                                (%)

Industry

Domestic and
                  231,978,740.01   230,103,752.45            0.81%              8.65%                 8.33%              55.74%
foreign trade

Manufacturing     300,083,729.57   284,719,485.05            5.12%           148.69%              156.96%               -37.35%

Lease and
Management of      42,456,703.52     11,261,896.10          73.47%              8.06%              -1.23%                 3.52%
Property

Product

Income from
Lease and
                   42,456,703.52     11,261,896.10          73.47%              8.06%              -1.23%                 3.52%
Management of
Property

Income from
                   10,150,142.39      8,055,670.24          20.63%            -54.22%             -54.68%                 4.07%
textile

Income from
                  289,933,587.18   276,663,814.81            4.58%           194.36%              197.39%               -17.51%
Polarizer sheet

Income from
                  231,978,740.01   230,103,752.45            0.81%              8.65%                 8.33%              55.74%
Trading

Area

Domestic          153,551,297.76   106,912,591.58           30.37%            25.08%               16.31%                 20.9%

Overseas          420,967,875.34   419,172,542.02            0.43%            67.91%               72.71%               -86.66%


4. Analysis On core Competitiveness

     1. It owns excellent management team and core technical personnel. Having been engaged in the field of
polarizer for liquid crystal display for years, the Company boasts R&D and production experience of more than
ten years and a management team and a core technician team with strong technological capability, good teamwork,
rich experience, international horizon and cutting-edge conceptions about polarizer technology. Meanwhile, the
Company has always fully realized the value of qualified personnel in respect of selection and appointment,
performance appraisal, wage and benefits and training development, stimulated them to make more contribution,
formed an atmosphere of hard work for success, further improved performance appraisal system, made efforts to
improve the enthusiasm, initiative, sense of responsibility and sense of belonging of core tehnical personnel,
formed reasonable talent team and let every individual give full play to his talent;
     2. It owns advanced manufacturing technologies and rich technology accumulation. In the field of polarizer
business at home, the Company has had accmulated advantages in respect of brand, technology and operation

                                                                                                                                  13
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


management experience and formed complete set of unique proprietary technologies that match the characteristics
of its equipment and processes and suit all kinds of products. It now has all kinds of polarizer products including
TN, HTN, STN - LCD, half-transparent polarizers, polaroid glasses and polarizer for TFT-LCD. In the report
period, the Company smoothly completed equipment optimization, production capacity expansion and product
adjustment. On the strength of Line 5, the Company completed the development of ultrathin brightening-type
polarizer of medium and small size for TFT, which has passed internal test. Samples have been sent to relevant
clients for certification. It also completed the batch trial use of Damei PE protective film and Huaxiang release
film and on-line formula adjustment and sampling of Hanke S-804 glue. The performance indicators of many
kinds of the Company's products have reached the level of similar products in international market;
      3. It has strong technology R&D capability. The Company has attached great importance to investment in
technology R&D. To ensure the constant improvement of innovation ability and normal proceeding of technology
R&D projects, R&D investment in the report period increased by 103.8% year on year. Meanwhile, it actively
carried out communication and cooperation and accelerated the construction of R&D platform. The Company
owns an engineering laboratory and municipal-level R&D center for polarization materials and technologies in
Shenzhen and a special R&D team and R&D instruments and equipment for the R&D of core production
technologies of polarizer for LCD, development of new products including polarizer for OLED, relevant
industrialization and manufacturing localization of raw materials for production of polarizer. Through
comprehensive cooperation in respect of production, study and research, the Company is sure to own continuous
and rapid R&D and innovation ability to adapt to the rapid-updating characteristics of polarizer industry and meet
its demand of large-scale development;
      4. It has good and stable customer resources. The Company owns good customer groups both at home and
abroad and keeps long-term technical exchange and cooperation relationship with some famous enterprises in
respect of polarizer application. It is able to give full play to advantages of localization, adopt "prescription-type"
customer development strategy, prodvide one-to-one supporting services, jointly develop customized products,
shorten supply period, provide rapid and high-quality after-sales services and supply competitive products with
high performance-price ratio to customers;
      5. Informatization development has been strengthened. In the report period,the Company continued to perfect
ERP information management system. Through deep development and extensive utilization of information
resources, the efficiency of management measures has been sharply enhanced and the Company's management
level has been further enhanced. Meanwhile, the timeliness, comprehensiveness and accuracy of production and
operation information transmission and use has been ensured while the Company's resource allocation and
operation efficiency has been enhanced and its response speed has been effectively quickened;
      6. It has the policy environment for rapid development. The state activley suppots the manufacturing
localization of upstream raw materials for TFT-LCD to realize co-development of complete industrial chains. Of
the upstream raw materials for TFT - LCD, manufacturing localization of very few kinds of materials including
polarizer can be realized. National support has provided opportunities for the Company's development. Shengbo
Optoelectronic was included in the list of the first group of colored light filter coating and polarizer enterprises
enjoying tax preference for new-type display device industry and the preferential policy of exemption from import
tariff for the import of raw materials for production and consumables that can not be produced domestically,
which, as a result, further reduced its production cost and enhanced its product competitiveness. Shengbo
Optoelectronic was certified by State Development and Reform Commission as an "industrialization unit for
polarizer for TFT-LCD" and certified by Ministry of Science and Technology as "executive entity for engineering
technological development project for polarizer for TFT-LCD in National High Technology Research and
Development Program (863 Program).


                                                                                                                       14
                                                                             Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


5. Analysis on investment Status

1. External Equity investment

(1)External investment

None


(2)Holding of the equipty in financial enterprises

None

(3)Investment in Securities

                                                    Number
                                                                   Sharehold Number
                                                    of shares                               Sharehold     Book
                                                                      ing       of shares
                                      Initial        held at                                   ing      balance at Gain.loss
                                                                   proportio     held at
                            Short   investmen          the                                  proportio the end of        of the
 Security   Security                                                n at the the end of                                              Accounti Sauce of
                        form of          t          beginning                                n at the      the         reporting
 category     code                                                 beginning       the                                               ng items the shares
                        security    cost(RM          of the                                 end of the reporting        period
                                                                    of the      reporting
                                        B)          reporting                               reporting    period        (RMB)
                                                                   reporting     period
                                                    period(sh                               period(%) (RMB)
                                                                   period(%) (shares)
                                                      ares)

                                                                                                                                     Financial
                       * ST
                                    11,356,63                                                           61,441,31 19,468,74 assets               Legal
Stock       000018     victor                       9,233,394         5.46% 6,958,246          4.11%
                                             8.86                                                            2.18           6.45 available shares
                       onward
                                                                                                                                     for sale

                                                                                                                                                 Debt
                                                                                                                                                 restructur
                                                                                                                                     Financial
                                                                                                                                                 ing
                                    9,847,598                                                           5,490,532                    assets
Stock       000030     ST Fawer                      985,733          0.34%      985,733       0.34%                             0               repaymen
                                              .31                                                                .81                 available
                                                                                                                                                 t of share
                                                                                                                                     for sale
                                                                                                                                                 s



                                    21,204,23 10,219,12                                                 66,931,84 19,468,74
Total                                                                 --        7,943,979       --                                       --            --
                                             7.17              7                                             4.99           6.45

Disclosure date of the board
announcement on approval of         January 2, 2013
the securities investment




                                                                                                                                                            15
                                                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


2.Entrusted Financing , investment in derivative products and entrusted loan

(1)Entrusted Financing

                                                                                                                                 UUnit:RMB

                                                                                                   Amount                                Amount
                                                     Amount                                                      Amount
                                                                                                      of                                  of gains
                                                    of money                                                         of
 Name of                   Related                                                     Mode of principle                                 and losses
              Relations                 Product     entrusted    Starting    Ending                              provision Estimated
     the                  transactio                                                   remunerat actually                                 realized
                hip                       type         for        date          date                                for        profit
    trustee               n or not                                                        ion      recovered                               in the
                                                    managem                                                      impairme
                                                                                                   in current                              report
                                                       ent                                                       nt (if any)
                                                                                                    period                                period

Industrial
Bank
                                       6-month                                         Break-eve
Shenzhen                                                        April 26, October
              N/A         No           structural      10,000                          n floated             0            0      75.94              0
Huafu                                                            2013       23, 2013
                                       deposit                                         income
Sub-bran
ch

China
Merchant
s
                                       3-month                                         Break-eve
Bank.She                                                        April 26, July 25,
              N/A         No           structural       5,000                          n floated             0            0      29.38              0
nzhen .Sh                                                       2013        2013
                                       deposit                                         income
enfang
Bub-bran
ch

China
Merchant
s
                                       6-month                                         Break-eve
Bank.She                                                        April 26, October
              N/A         No           structural      15,000                          n floated             0            0      92.22              0
nzhen .Sh                                                       2013        25, 2013
                                       deposit                                         income
enfang
Bub-bran
ch

Total                                                  30,000        --          --        --                0            0     197.54              0

Fund source                                         Idle funds raised in 2013

Overdue principal unrecovered and
                                                                                                                                                    0
cumulative amount of income

Lawsuit involved (if applicable)                    Not Applicable

Date of disclosure of announcement of the
board of directors after examination and            April 16, 2013
approval of entrusted money management


                                                                                                                                                    16
                                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(if any)


(2)Investment in dervatives

None

(3)Entrusted Borrower

None

3.Application of the Raised capital

(1)General application of the raised capital

Unit:RMB’0000

Total amount of the raised capital                                                                                                   179,051.90

Total raised capital invested in the report period                                                                                       953.26

Total accumulative raised capital invested                                                                                            84,491.75

Amount of raised capital of which the purpose was
                                                                                                                                                0
changed in the report period

Accumulative amount of raised capital of which the
                                                                                                                                                0
purpose has been changed

Proportion of raised capital of which the purpose has
                                                                                                                                             0%
been changed (%)

                                                        Notes to use of raised capital


In the report period, the proceeds raised through private issue in 2010 and 2013 were used. Refer to the Company's Special Report
on Deposit and Actual Condition of Raised Proceeds in the First Half of 2013              published on www.cninfo.com.cn on August 24,
2013 for details.




(2)Promised projects of raised capital

Unit:RMB’0000

                                                                           Accumul Investme
                                                                                                  Date when
                                       Total                                 ated         nt                    Benefit                Has any
                           Project                   Total    Amount                              the project
                                       raised                              amount      progress                 realized Has the      material
                          changed(i              investme inested in                              has reached
Committed investment                   capital                             invested ended the                    in the predicted      change
                          ncluding               nt after        the                                  the
projects and investment               invested                            at the end reporting                  reportin result be      taken
                           partial               adjustme reporting                                predicted
                                         as                                 of the     period(%                    g      realized     place in
                          change)                    nt (1)    period                             applicable
                                      commited                             reporting )(3)=(2)(                  period                feasibility
                                                                                                    status
                                                                           period(2)      1)


                                                                                                                                                17
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Committed investment projects

Phase-II project of
                                                                                          December
polarizer sheet for           No      82,876.8 82,876.8        661.9 84,200.39   101.6%               Notes 2 Notes3       No
                                                                                          31, 2012
TFT-LCD

Phase-I project of
                                                                                          December
polarizer sheet for           No      96,175.1                291.36   291.36     0.03%
                                                                                           31, 2014
TFT-LCD

Subtotal of committeed
                              --   179,051.9                  953.26 84,491.75    --          --                 --         --
investment projects

Investment of excessive raised capital

No

Total                         --   179,051.9 82,876.8         953.26 84,491.75    --          --           0     --         --

Reason or situation
 thatnot on
                         No
 schedule(on specific
 project)

Notes to major
 changesin project       No
 feasibility

Amount, purpose
 anduse of excessive     Not applicable
 raised capital

Changes in
implementation place
                         Not applicable
of investment funded
by raised capital

Adjustment of the
implementation way of
                         Not applicable
investment funded by
raised capital

Initial use of raised
fund in projects and     Not applicable
replacement

                         Applicable

                         On March 28, 2013, the 32nd meeting of the fifth board of directors examined and adopted the Proposal
Idle raised capital      for Supplementing Working Capital with Part of Idle Raised Proceeds. The Company planned to
 usedas working          supplement its working capital with temporarily idle raised proceeds of RMB 300 million for the period of
 capital                 no more than 12 months from the day of adoption by the shareholders' general meeting(Refer to No.
                         2013-15 Announcement for details). This proposal was examined and approved by 2012 shareholders'
                         general meeting on April 22, 2013.


                                                                                                                                 18
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




Surplus of investment
                          Not applicable
 and cause

                          As of June 30, 2013, unused raised proceeds of RMB 300 million were used to temporarily supplement the
Use plan of retained      Company's working capital and RMB 300 million was used for cash management (Refer to No. 2013-23
fund from financing       and No. 2013-28 Announcement for details). All the remaining proceeds were deposited in a special
                          account for raised proceeds, which will all be used for promised investment projects.

Problem or situation
 inusing of raised        N/A
 capital and disclosing


Notes:

1. The balance amount of fundraising special amount is RMB 828.7680 million , it will be fully used in committed
investment phase-I project of polarizer sheet for TFT-LCD project. The total investment of the project is RMB
849.37 million and the adjusted investment amounted is RMB 926.40 million, the company will pay the balance
by fundraising
2. TFT-LCD with a Polaroid projects phase-I include a wide production line (Line 4) and narrow production line
(Line 5)., The first half of 2013, Phase-I project of polarizer sheet for TFT-LCD project achieved the sales margin
of RMB -10.7148 million.
3. Wide production line (Line 4) has complete mass production in December, 2012, narrow production line (Line
5) has complete mass production in the end of December, 2012. As of June 30, 2013, Phase-I project of polarizer
sheet for TFT-LCD project operating time is short, it is difficult to determine whether the investment projects to
reach the entire operation period of the anticipated revenue.

(3)Change of the Projects invested with the Raised Capital

None

(4)Information about projects using raised proceeds


Summary of projects using raised proceeds                     Disclosure date                           Disclosure index

Particulars about phase-1 project of                                                        No. 2013-18 Announcement on
                                               March 20, 2013
polarizer for TFL-LCD                                                                       www.cninfo.com.cn


4.Analysis on principal subsidiaries and Mutual Shareholding Companies

Particulars about the principal subsidiaries and Mutual shareholding companies
                                                                                                                           Unit:RMB
                                             Leading                      Total                              Operating
 Company      Company           Sectors                   Registered                 Net assets   Tumover                  Net Profit
                                            products                   assets(RMB                                 profit
   Name          type       engaged in                     capital                    (RMB)       (RMB)                     (RMB)
                                           and services                     )                                   (RMB)


                                                                                                                                        19
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                         Fabrics,
Shenzhen                                 bedding,
Jinlan                                   clothing,
Decorative                 Textile       textiles raw 4,000,000.0 14,889,457. 9,408,933.6 1,246,629.1 1,221,399.6
              Subsidiary                                                                                                   983,111.07
Articles                   Industry      materials        0                   00            2           7             5
Industrial                               processing
Co., Ltd.                                manufacturi
                                         ng,

Shenzhen
                                         Property
Lisi                                                      2,360,000.0 32,980,428. 15,284,523. 2,839,009.5 2,059,725.1 1,880,391.3
              Subsidiary   Lease         managemen
Industrial                                                0                   47           57           6             5            5
                                         t
Co., Ltd.

                                         Accommod
Shenzhen
                           Hotel         ation,           10,005,300. 23,533,508. 17,593,131. 4,895,891.0 2,120,439.7 1,873,763.7
Huaqiang      Subsidiary
                           services      business         00                  25           67           0             5            0
Hotel
                                         center;

                                         Property
                                         managemen
                                         t and as the
Shenfang
                           Property      agent of the
Property                                                  1,600,000.0 8,869,998.4 1,856,377.3 5,026,689.5
              Subsidiary   managemen Department                                                              172,561.95 121,921.47
Managemen                                                 0                     7           6           6
                           t             of property
t Co., Ltd.
                                         managemen
                                         t services
                                         company

                                         Production of
Shenzhen
                                         fully
Beauty
                           Textile       electronic       25,000,000. 47,444,453. 34,319,463. 11,650,059.
Century       Subsidiary                                                                                     -165,882.78 -111,658.78
                           industry      jacquard         00                  87           37          51
Garment
                                         knitting whole
Co., Ltd.
                                         shape

Shenzhen
                                         Operating
Shenfang
                           Textile       import and       5,000,000.0 74,877,055. 12,799,999. 231,978,740 1,957,463.7 1,498,097.8
Import &      Subsidiary
                           trade         export           0                   26           19          .01            5            1
export Co.,
                                         business
Ltd.

Shenzhen
Shengbo
                                         Production
Ophotoelect                                               300,000,000 2,052,446,0 1,636,058,4 289,933,587 -41,393,388 -29,881,664
              Subsidiary   Flat display and sales of
ric                                                       .00               19.87       23.41          .18           .07          .69
                                         polarizer
Technology
Co., Ltd



                                                                                                                                   20
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shengtou
                                         Sales of    HKD10,000 69,247,978.                        100,347,370 2,085,188.5 2,085,188.5
(HK)Co.,   Subsidiary   Flat display                                              132,450.98
                                         polarizer   .00                    40                            .93           3            3
Ltd.



5.Projects invested with the non-raised capital

None

6. Performance Forecast for January to September 2013

Alert of loss or significant change in net profit from the beginning of year to the end of next report period or
 comparing with the same period of last year, and statement of causations.
□ Applicable √ Not applicable

7. Statement of the Board on the “ Non-standard auditors’ report” issued by the CPA on thecurrent report period.

□ Applicable √ Not applicable

8.Statement of the Board on Non-standard auditors’ Report Issued in the previous Year

□Applicable √ Not applicable

9. Implementation of Profit Distribution of the Company in the repport Period.

Profit distribution plans implemented during the report period, especially cashdividend and reserve capitalization
  plans
□Applicable √ Not applicable

10. The Company has profit Distribution or Reserve Capitalization plan in the report Period

□Applicable √ Not applicable

11.. Statement of such activities as reception, research, communication, interview in the reporting period


                                                                                                            Discussion topics and provision
  Reception time     Reception place        Way of reception    Types of visitors      Vistors received
                                                                                                                     of materials

                                                                                     Fortune SG ,
                   The meeting                                                       Nuoan Fund, Boshi The production of phase-I projec
                                    Onsite
January 15, 2013     Roomof Shengbo                            Organization          Fund, Huaxia Fund t of polarizer sheet for TFT-LCD
                                    investigatio
                     Company                                                         and Pingan
                                                                                     Secutities

                   The meeting            Onsite                                                           The production of phase-I projec
January 16, 2013                                               Organization          Guosen Securities
                   room of the            investigatio                                                     t of polarizer sheet for TFT-LCD



                                                                                                                                     21
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                    company
                                                                        China
                                                                         InvestmentSecurit
                                                                         ies, Central China
                                                                         Securities, Guosen
                                                                                              The situation of the company
                                                                         Securities, Gangfa
                    The meeting                                                               and
                                     Onsite                              Securities,
January 18, 2013    room of the                      Organization                             the production of phase-I project
                                     investigatio                        Shenzhen Taihe
                    company                                                                   of polarizer sheet for TFT-LCD
                                                                         Kunde Investment
                                                                         Co., Ltd.,
                                                                         Shenzhen Yintai
                                                                         Investment Co.,
                                                                         Ltd.

                                                                                              The situation of the company
                                                                        Jiangxi Ruitou        and
                                     Onsite
February 20, 2013                                    Organization       Investment            the production of phase-I project
                                     investigatio
                                                                        Company               of polarizer sheet for TFT-LCD



                                                                        ICBCCS, CCB           the production of phase-I project
                    The meeting room Onsite
February 26, 2013                                    Organization       Fund, Taida Hongli of polarizer sheet for TFT-LCD
                    of the company   investigatio
                                                                        Fund

                                                                                              Production and management co
                    The meeting room Onsite
April 22, 2013                                       Individual         Individual Investor mpany
                    of the company   investigatio




                                              V. Important Events

I. Administrative position

      According to the requirements of relevant laws and regulations and regulatory documents including the
Company Law, the Securities Law, Guidelines for Governance of Listed Companies and Guidelines of Shenzhen
Stock Exchange for Standardized Operation of Listed Companies in Main Market, the Company constantly
improved its corporate governance structure, strengthened information disclosure management, standardized
operation and made great efforts to establish modern enterprise system. In the report period, according to the
requirements of "the working meeting for preventing and controlling insider dealings in listed companies in
Shenzhen" held by Shenzhen Securities Regulatory Bureau, the Company carried out publicity work about
preventing and controlling insider information through a wide variety of channels and provided special training to
all directors, supervisors and senior executives and other working personnel on key posts who may have access to
insider information group by group and level by level. Through training, all personnel understood the harmfulness
of insider dealing and sharpened their awareness about prevention of insider dealings, standardization of insider

                                                                                                                         22
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


information management, abidance by laws and regulations, good faith and self discipline. Meanwhile, the
Company unceasingly improved the construction of internal control system, timely revised relevant systems in the
light of its actual conditions and ensured its standardized operation and steady development. At present, all
governance systems of the Compay are basically perfect and its operation is standardized while its corporate
governance structure is sound, which meets the requirements of the regulatory documents promulgated by CSRC
about the governance of listed companies.
      As Shenzhen Investment Holding Co., Ltd., the controlling shareholder of the Company, is an enterprise
directly under Shenzhen State-owned Assets Commission, the Company implements relevant regulations of the
controlling shareholder on management of state-owned assets. The non-open information reported to the
controlling shareholders mainly includes: monthly flash report of financial indicators, expense budget
implementation status and cash flow statement, quarterly bank deposit and loan statement, detailed statement of
financial assets available for sale, detailed statement of real estate for investment and summary statement of
non-operating gains and losses. To strengthen the management of non-open information, the Company strictly
controlled the scope of persons, standardized the process of information transmission and strictly implemented the
Regulations on Insider Management.

     Except this, there was no difference between the actual conditions of corporate governance and the
requirements of the Company Law and relevant regulations of CSRC.

II. Major lawsuits and Arbitration affairs

The Company has no major lawsuit or arbitration in the report period.

III. Query form media
In the reporting year, the Company had no query from media

IV. Bankruptcy or Reorganization Related Events

□ Applicable √ Not applicable

V. Assets Transactions

1. Acquisition of Assets

None

2. Sales of Assets

None

3. Enterprise Consolidation

In the reporting year, the Company had no Enterprise Consolidation




                                                                                                                    23
                                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


VI. Implementation of the Company’s quity Incentive plan and its influences

□ Applicable √ Not applicable

VII. Material related transactions

Related transactions in connection with daily operation


                                                                               Amount Proportio
                                                    Principle
                                       Descripti                                 of the       n in the
                                                    of picing    Price of
                           Type of       on of                                  related      amount of
 Related      Relations                               of the      related                                  Mode of      Market     Disclosur Disclosur
                           related      related                                transactio        the
 parties         hip                                 related     transactio                                settlement      price     e date       e index
                           parties     transactio                                     n        similar
                                                    transactio      ns
                                           ns                                  (RMB’00 transactio
                                                        n
                                                                                  00)          n (%)

                                                                                                                                                www.cnin
                                                             The aver                                                                           fo.com.cn
                                      Sales of
Shenzhen Related          Daily                     Agreeme age pric                                                               January      (2Announ
                                      polarizer                       13,241.72                 45.67%
CSOT        Legal         operation                 nt price e of ma                                                               22, 2013 cement
                                      sheet
                                                             rket                                                                               No.
                                                                                                                                                2013-05)

Total                                                   --           --        13,241.72          --           --           --           --           --

Details of return of sales in significant
                                                    Not appliable
amount

                                                    Shenzhen Shengbo Optoelectronic Technology Co., Ltd. a wholly-owned subsidiary of
For those predicted daily related                   the Company, sells polarizer products to Shenzhen Huaxing Optoelectronic Technology
transaction by category, actual                     Co., Ltd. The total sales amount for 2013 is expected to be no more than RMB 400
implementation in reporting period(if any) million. Refer to No. 2013-05 announcement of the Company for details.



Reason of major difference between
trading price and market reference                  Not appliable
pricde(if any)


2.Related transactions conceming assets acquisition/sales

□ Applicable √ Not applicable

3.Important related transitions with joint investment


                                      Pricing                             Principal        Registered       Total assets    Net assets of Net profit of
    Joint                                           Name of the
                 Relationship principle for                           business of         capital of the       of the        the investee     the investee
  investors                                           investee
                                      the joint                      the investee           investee         investee            (RMB)          (RMB)



                                                                                                                                                            24
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                 investment                                                (RMB’0000)

None


4.Current Associated rights of credit and liabilities

Did there exist any non-operational related rights of credit and liabilities
vYes □ No
                                                                         Whether there Balance at the       Amount in
                                              Type of                                                                         Balance at the
                         Association                     Reason for       is the use of   beginning of         this
   Associated party                       claims and                                                                          end of period
                         relationship                        formation   non-operating      period         period(RMB’
                                               debts                                                                          (RMB’0000)
                                                                            capitals      (RMB’0000)         0000)

                                        Related party
                        Related Legal                   Account
ShenzhenCSOT                            debt                                  No              4,727.35           670.82            5,398.17
                        person                          receivable
                                        receivable

Shenzhen Tianma                         Related party
                        Related Legal                   Account
Microelectronics Co.,                   debt                                  No                123.44            -31.46              91.98
                        person                          receivable
Ltd.                                    receivable

                                        Related party
Shenhen Dailisi         Sharing                         Current amou
                                        debt                                  No                 26.55                 -41           -14.45
Underwear Co., Ltd.     company                         nt
                                        receivable

                                        Related party
Hanhui Huapeng                                          Current amou
                        Subsidiay       debt                                  No                     180                90              270
Textile Co., Ltd.                                       nt
                                        receivable

Shenzhen Xinfang        Sharing         Related party Current amou
                                                                              No                 21.68                   0            21.68
Knitting Co., Ltd.      company         debt payable    nt

Shenzhen Xiangjiang     Sharing         Related party Current amou
                                                                              No                      38                 0               38
Trade Co., Ltd          company         debt payable    nt

Shenzhen Changlianfa
                        Sharing         Related party Current amou
Printing & dyeing                                                             No                 72.72                -0.25            70.2
                        company         debt payable    nt
Co., Ltd.

Shenzhen Hengsheng      Sharing         Related party Current amou
                                                                              No                136.79                   0           136.79
 Investment Co., Ltd. company           debt payable    nt

Shenzhen Haohao
                        Sharing         Related party Current amou
Property Leasing Co.,                                                         No                352.89                  25           377.89
                        company         debt payable    nt
Ltd

Shenzhen Shenchao
                        Related Legal Related party Interests
Technology                                                                    No              1,504.87           444.89            1,949.76
                        personS         debt payable    payable
Investment Co., Ltd.




                                                                                                                                           25
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


5.Other material related transactions

Entrusted loans of related parties:

      For the construction of the project of polarizer for TFT-LCD, the Company signed Entrusted Loan Contract
with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of
Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology
Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd.
to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the
first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted
loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus 2%. In case of
adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment
minus 2% shall apply as interest rate of entrusted loan from the first day of the next month after the adjustment of
basic interest rate. As of June 30, 2013,The Company actually received a loan of RMB 200 million.


Relevant inquity with the internet website for disclosing provisional report on material related transactions



                                                    Date of disclosing provisional        Description of the website for disclosing
   Description of provisional announcement
                                                            announcement                         provisional announcements

Announcement of resolutions of the 30th
                                                 January 22, 2013                      (http://www.cninfo.com.cn)
meeting of the Fifth Board of Directors

Announcement of the estimated amount of
                                                 January 22, 2013                      (http://www.cninfo.com.cn)
daily related transactions in 2013.


VIII. Important contracts and implementation

1. Custody, contacting and leases

(1)Custody

Description of custodies
Not applicable
Projects that have brought about gains/losses to the company taking over 10% of the Company’s total profit in the
reporting period.
□ Applicable√ Not applicable

(2)Contracts

Description of contracts
Not applicable
Projects that have brought about gains/losses to the Company taking over 10% of the Company’s total profit in the
reporting period
□ Applicable√ Not applicable

                                                                                                                                      26
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(3)Leases

Description of leases
Not applicable
Projects that have brought about gains/losses to the company taking over 10% of the Company’s total profit in the
reporting period
□ Applicable√ Not applicable

2.Guarantees

                                                                                                                     Unit:RMB’0000

                                       External Guarantee (Exclude controlled subsidiaries)

                                                                                                                            Guarante
                         Relevant                                                                                              e
                                                     Date of
                        disclosure                                                                               Complete      for
                                                   happening            Actual
    Name of the        date/No. of Amount of                                           Guarantee    Guarantee implemen associate
                                                    (Date of           mount of
     Company               the       Guarantee                                            type          term      tation       d
                                                     signing          guarantee
                       guaranteed                                                                                 or not     parties
                                                   agreement)
                         amount                                                                                             (Yes or
                                                                                                                              no)

   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                                                                     The joint
                       June 19,                  October 23,
Optoelectronic                          11,500                                       liability     12   months     No         Yes
                       2012                      2012
Technology Co., Ltd.                                                                 guaranty

Shenzhen Shengbo                                                                     The joint
                       June 19,                  August 27,
Optoelectronic                          20,000                                    0 liability      12 months       No         Yes
                       2012                      2012
Technology Co., Ltd                                                                  guaranty



                                                                                                                                       27
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                        Total of actual guarantee
Total of guarantee for subsidiaries
                                                                  0       for subsidiaries in the                                  0
approved in the Period (B1)
                                                                      Period (B2)

                                                                        Total of actual guarantee
Total of guarantee for subsidiaries
                                                                  0         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
                                                                  0              the Period                                        0
(A1+B1)
                                                                      (A2+B2)

                                                                       Total of actual guarantee at
 Total of guarantee at Period-end
                                                                  0              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
associated parties(C)

The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed                                                                             0
70% directly or indirectly(D)

Explanations on possibly bearing joint and several liquidating
                                                                      Not applicable
responsibilities for undue guarantees(if any)

Remarks on illegal providing of external guarantee(if any)            Not applicable


3.Other material contracts

None

4.Other major transction

None

IX. The commitments of the Company and its shareholders holding over 5% of the Company’s total shares in the
report year of extending to the report year from previous year.


                                                 Commitment                            Time of making    Peiod of
               Commitment                                             Contents                                       Fulfillment
                                                   maker                                commitment      commitment



                                                                                                                                   28
                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                             As Shenzhen
                                             Investment
                                             Holdings Co.,
                                             Ltd., the
                                             controlling
                                             shareholder of
                                             the company,
                                             committed when
                                             the
                                             restricted-for-sal
                                             e shares from
                                             the shares
                                             restructuring
                                             were listed for
                                             circulation in the
                                             market: i. if they
                                             plan to sell the
                                             shares through
                                             the securities
                                             exchange
                             Shenzhen        system in the
                             Investment      future, and the                  Sustained and    Under
Commitment on share reform
                             Holdings Co.,   decrease of the                  effective        Fulfillment
                             Ltd.            shares they hold
                                             reaches 5%
                                             within 6 months
                                             after the first
                                             decrease, they
                                             will disclose an
                                             announcement
                                             indicating the
                                             sale through the
                                             company within
                                             two trading days
                                             before the first
                                             decrease; ii.
                                             They shall
                                             strictly observe
                                             the “Guidelines
                                             on Transfer of
                                             Restricted-for-sa
                                             le Original
                                             Shares of Listed
                                             Companies” and


                                                                                                             29
                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                          the provisions of
                                                          the relevant
                                                          business
                                                          principles of
                                                          Shenzhen Stock
                                                          Exchange.

Commitment in the acquisition report or
the report on equity changes

Commitment made upon the assets
replacement

                                                          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
                                          Shenzhen
                                                          Letter of
                                          Investment                                      Sustained and    Under
Commitments made upon issuance                            Commitment
                                          Holdings Co.,                                   effective        Fulfillment
                                                          and Statement,
                                          Ltd.
                                                          Shenzhen
                                                          Investment
                                                          Holdings Co.,
                                                          Ltd. and its
                                                          wholly owned
                                                          subsidiary,
                                                          subsidiaries
                                                          under control or
                                                          any other
                                                          companies that
                                                          have actual
                                                          control of it
                                                          shall not be
                                                          involved in the
                                                          business the



                                                                                                                         30
 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


same as or
similar to those
Shenzhen
Textile currently
or will run in the
future, or any
businesses or
activities that
may constitute
direct or indirect
competition
with Shenzhen
Textile; if the
operations of
Shenzhen
Investment
Holdings Co.,
Ltd. and its
wholly owned
subsidiaries,
subsidiaries
under control or
other companies
that have actual
control of it
compete with
Shenzhen
Textile in the
same industry or
contradict the
interest of the
issuer in the
future, Shenzhen
Investment
Holdings Co.,
Ltd. shall urge
such companies
to sell the
equity, assets or
business to
Shenzhen
Textile or a third
party; when the
horizontal


                                                               31
 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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


                                                               32
 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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


                                                               33
 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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


                                                               34
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                               Textile

                                                               Refer to the
                                                               Announcement
                                                               of Approval of
                                                               Application for
                                                               Private Issue of
                                             Shenzhen          Shares that                         36 months from
                                             Investment        issued by the                       the listing day of Under
                                                                                  March 25, 2013
                                             Holdings Co.,     Board of                            new shares, i.e., Fulfillment
                                             Ltd.              Directors of                        March 26, 2013
                                                               Shenzhen
                                                               Textile
                                                               (Holdings) Co.,
                                                               Ltd.
                                                               (No.:2013-12)

                                                               Refer to the
                                                               Announcement
                                                               of Approval of
                                                               Application for
                                             Other objects of Private Issue of
                                             issue including   Shares that                         12 months from
                                             Tibet Ruihua      issued by the                       the listing day of Under
                                                                                  March 25, 2013
                                             Investment        Board of                            new shares, i.e., Fulfillment
                                             Development       Directors of                        March 26, 2013
                                             Co., Ltd.         Shenzhen
                                                               Textile
                                                               (Holdings) Co.,
                                                               Ltd.
                                                               (No.:2013-12)

Other commitments made to minority
shareholders

Executed timely or not?                      Yes

Detailed person for failing to execute and
                                             Not applicable
the next plan


X. Appointment and non-reappointment (dismissal)of CPA.

Whether financial report of this Semi-annual report is audited or not
□ Yes √ No

XI. Penalyty and rectification

□ Applicable √ Not applicable

                                                                                                                                   35
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


XII. Explanation on other significant events

     (I) Particulars of private issue of shares

     On January 2013 , Approved by China Securities Regulatory Commission with Zheng Jian Xu Ke (2013) No.
2 Document, the Company privately issued 170,000,000 RMB ordinary shares to specific investors at the price of
RMB 5.83 per share. The total amount of the proceeds raised through private issue of shares is RMB
991,100,000.00. With the issuance cost of RMB 29,348,999.15 being deducted, the net amount of raised proceeds
is RMB 961,751,000.85. The said raised proceeds were examined and verified by Peking Certified Public
Accountants Co., Ltd. with Qin Xin Yan Zi (2013) No. 6 Capital Verification Report issued on March 8, 2013. All
proceeds raised through private issue of shares will be invested in phase-II project of polarizer sheet for TFT-LCD.
On March 26, 2013, RMB 170,000,000 ordinary shares privately issued have been listed at Shenzhen Stock
Exchange. Refer to Report on Private Issue of A Shares and Announcement of Listing of Shares of Shenzhen
Textile (Holding) Co., Ltd. published on http: / / www.cninfo.com.cn on March 26, 2013 for details.

     (II)Status of internal control:

       In the report period, In accordance with Standards of Internal Control of Enterprises, the Company solved
the problems existing during the implementation of Internal Control Manual (2012) and correspondingly revised
internal control documents including risk control document. According to the requirements of Internal Control
Manual (2012 Edition), the Company continuously sorted, supplemented and perfected the existing systems and
processes, conducted semiannual self-evaluation of key subsidiaries in respect of internal control and actively
supervised and urged rectification to deal with the problems found in semiannual self evaluation of internal
control.

     (III)Disposal of equity of Union Group

      The 31st meeting of the fifth board of directors and 2012 annual shareholders' general meeting of the
Company respectively held on January 28, 2013 and April 22, 2013 examined and adopted the Proposal for
Assigning the Equity of Union Developing Group Co., Ltd. At the price of not lower than the appraised value, i.e.,
RMB 99.42 million, the Company planned to assign 2.8694% equity of Union Developing Group Co., Ltd. held
by it at Shenzhen United Equity Exchange in the mode of open tendering. This matter was put on record with state
asset management department on April 26, 2013. On May 23, the equity of Union Group was publicly listed at
Shenzhen United Equity Exchange for assignment. On July 5, the Company received the Notes to Purchase
Request from Shenzhen United Equity Exchange. During the period from May 23, 2013 to July 4, 2013, the
Company publicly listed 2.8694% equity of Union Developing Group Co., Ltd. for assignment at Shenzhen
United Equity Exchange. Upon the expiration of listing period, no party submitted an application for acquisition
to Shenzhen United Equity Exchange.




                                                                                                                     36
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



                  VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
                                Before the change                    Increase/decrease(+,-)                   After the Change

                                Amount       Proporti                         Capitali
                                               on                             zation
                                                          Share       Bonus     of                                           Proportio
                                                                                         Other    Subtotal     Quantity
                                                         allotment    shares common                                             n
                                                                              reserve
                                                                               fund

I.Shares with conditional
                                53,838,478      16% 170,000,000                                  170,000,000   223,838,478     44.19%
subscription

1.State-owned legal person
                                53,763,440 15.98% 51,457,976                                      51,457,976   105,221,416     20.77%
shares

2.Other domestic shares                                 118,542,024                              118,542,024   118,542,024      23.4%

Incl:Non-state owned
domestic legal person                                   118,542,024                              118,542,024   118,542,024      23.4%
shares

3. .Executive shares                75,038     0.02%                                                                75,038      0.01%

II. Shares with
                               282,683,371      84%                                                            282,683,371     55.81%
unconditional subscription

1.Common shares in RMB         233,258,409 69.31%                                                              233,258,409     46.05%

2.Foreign shares in
                                49,424,962 14.69%                                                               49,424,962      9.76%
domestic market

III. Total of capital shares   336,521,849     100% 170,000,000                                  170,000,000   506,521,849      100%

     Reasons for share changed
     In March 2013, 170 million new shares privately issued by the Company were registered in account. On March
26, 2013, the shares were listed and traded at Shenzhen Stock Exchange.
Approval of share changed
     On December 7, 2012, Issue Examination Committee of CSRC examined and approved the Company's
application for private issue. On January 7, 2013, the Company received the Approval of Private Issue of Shares by
Shenzhen Textile (Holding) Co., Ltd. (Zhen Jian Permit (2013) No. 2 Document) issued by China Securities
Regulatory Commission and was approved to privately issue no more than 170 million new shares.
Ownership transfer for shares changed
     The Company submitted relevant registration materials to Shenzhen Branch of China Securities Registration
& Settlement Co., Ltd. in respect of the shares privately issued on March 11, 2013 and received the Letter of
Confirmation of Pre-registration of Securities on March 12, 2013. On March 25, 2013, the shares privately issued
were finally registered in account. The shareholders holding such shares were officially included in the register of
shareholders of the Company.
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets pershare attributable to


                                                                                                                                     37
                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


 common shareholders of Company in latest year and period.
√ Applicable □Not applicable

                  Items                                     2013-3-31                                         2012-12-31

Net assets per share (RMB)                                                              4.49                                              3.87

                  Items                               January –March 2013                                       2012

Basic EPS(RMB)                                                                         -0.01                                             -0.24

Diluted EPS(RMB)                                                                       -0.01                                             -0.24
   This issue of shares made the Company's net assets per share increased by 16.02% from RMB 3.87 on
December 31, 2012 to RMB 4.49 on March 31, 2013.
Other information necessary to disclose for the Company or need to disclosed under refquirement from security
regulators.
□ Applicable √ Not applicable
Changes of total shares and shareholders structure as well as explanation on changes of assetsand liability
 structure.

       (1) Effect on company capital shares
                  Items                              Before public issue              Public issue this        After this public issue
                                                                                            time
                                                    (February 28, 2013)

                                               Amount(Shares )    Proportion       Amount(Shares )Amount(Shares ) Proportion

1.Shares with conditional subscription                 53,838,478          16.00%           170,000,000         223,838,478         44.19%

1. State-owned shares                                           -                -                        -                 -                -

2. Staee-owned legal person shares                     53,763,440          15.98%              51,457,976       105,221,416         20.77%

3. Other domestic shares                                        -                -          118,542,024         118,542,024         23.40%

Of which:Domestic legal person shares                          -                -          118,542,024         118,542,024         23.40%

4. Executive shares                                        75,038           0.02%                         -           75,038             0.01%

II.Shares       with           unconditional          282,683,371          84.00%                         -     282,683,371         55.81%
subscription

1. Common shares in RMB                               233,258,409          69.31%                         -     233,258,409         46.05%

2. Foreign shares in domestic market                   49,424,962          14.69%                         -      49,424,962              9.76%

III. Total of capital shares                          336,521,849           100%            170,000,000         506,521,849              100%


       (II) Influence on the Company's asset structure

     The investors for this private issue subscribed for the issued shares with cash. After the registration of new
shares, the total assets and net assets of the Company will increase and its assets-liabilities ratio will decrease
while its capital structure and financial structure will improve and financial risks will lower, which will lay a solid
foundation for the further development of the Company.

                                                                                                                                            38
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


      (III)Influence on main financial indicators
      On December 31, 2012,The Company's (consolidated) assets-liabilities ratio was 30.72%. After this issue, the
assets-liabilities ratio as of June 30, 2013 was 19.53%, which sharply lowered by 11.19% over the end of 2012.

The earnings per share and net assets per share of the Company for the previous year and previous period before
the completion of this issue:
                  Items                                     2012-12-31                                           2011-12-31

Net assets per share (RMB)                                                                3.87                                             4.07

                  Items                                          2012                                                2011

Basic EPS(RMB)                                                                            -0.24                                            0.15

Diluted EPS(RMB)                                                                          -0.24                                            0.15
      (IV)Influence on the Company's business structure
      All the proceeds raised through this private issue will be used to increase the capital of Shenzhen Shengbo
Optoelectronic Technology Co., Ltd. to construct the phase-II project of polarizer for TFT-LCD. TThe
construction of the phase-II project of polarizer for TFT-LCD will further increase market competitiveness and
market share of the Company in respect of polarizer for LCD and relevant products, enhance the proportion of
polarizer business and contribute to improving its overall profitability.

II. Shareholders and actual controlling shareholder

                                                                                                                                    Unit:shares



Total shareholders at period-end                                                                                                       17,114

                                                     Shares held by 5% shareholders

                                                                     Increase/                                       Pledging or freeing
                                                     Quantity at                 Number of        Number of
                                          Share                      decrease
                      Properties of                   the end of                    the              the
Shareholder name                         proportio                    in the                                   Status of the
                      shareholder                    the reporting               restricted non-restricted                      Quantity
                                         n(%)                      reportin                                     shares
                                                        period                   shares held      shres held
                                                                     g period

Shenzhen
Investment         State-owned legal
                                           46.21% 234,069,436                    89,092,384 144,977,052
Holdings Co.,      person
Ltd.

Tibet Ruihua
                   Domestic        non
Investment
                          State-owned       4.17%     21,108,061                 21,108,061
Development
                   Legal person
Co., Ltd.

National Social
Security Fund      Other                    3.45%     17,500,000                 17,500,000
portfolio 501



                                                                                                                                             39
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Pingan Dahua
Fund Company-
Pingan Bank-
Pingan Intrust
                     Other                   3.39%    17,156,003            17,156,003
PinganWealth*
trust fund plan of
Chuangying stage
1 No. 13

                     Domestic       non
CITIC Securities
                         State-owned         3.39%    17,152,992            17,152,659
Co., Ltd.
                     Legal person

Pingan Dahua
Fund Company-
                     Other                   3.39%    17,152,659            17,152,659
Pingan Bank-
Wang Fang

Huaan Fund
Company-ICBC
-Huarong
IntrustEquity
                     Other                   3.39%    17,152,658            17,152,658
investment trust
fund plan of
Huaan Fund
NO.2

Shenzhen
Shenchao
                     State-owned
Technology                                   3.18%    16,129,032            16,129,032
                     Legal person
Investment Co.,
Ltd.

ICBC-Nuoan
Securities           Other                   0.89%     4,500,000             4,500,000
Investment Fund

ICBC-Nuoan
Value grow
                     Other                   0.49%     2,500,000             2,500,000
Securities
Investment Fund

                                                8 shareholders including Tibet Ruihua Investment Development Co., Ltd., National
                                          Social Security Fund No. 501 Portfolio, Ping An Building Fund Company-Ping An Bank -
Strategy investors or general legal       Ping An Trust Ping An Wealth * No.13.Phase-I Chuangying Collective Fund Trust
person becomes top 10 shareholders Program,CITIC Securities Co., Ltd., Ping An Dahua Fund Company - Ping An Bank-Wang
due to rights issued (if applicable)      Fang, Huaan Fund Company-ICBC-Huarong Trust - Hua'an Fund No.2 Equity Investment
                                          Collective Fund Trust Program ,ICBC-Nuo’an Secutities Investment Fund, and ICBC-
                                          Nuo'an Value Growth Stock Investment Fund subscribed for the shares privately issued by the


                                                                                                                                   40
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                     Company in March 2013 and joined the top 10 shareholders. Shenzhen Investment Holding
                                     Co., Ltd. subscribed for 51,457,976 shares. The period of sale restriction is 36 months. The
                                     expected time of listing of such shares is March 26, 2016. The period of sale restriction of the
                                     shares issued to the other 8 shareholders is 12 months. The expected time of listing of such
                                     shares is March 26, 2014.

                                     Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
                                     Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,
Explanation on associated            the Company did not whether there is relationship between the top ten shareholders holding
relationship among the aforesaid     non-restricted negotiable shares and between the top ten shareholders holding non-restricted
shareholders                         negotiable shares and the top 10 shareholders or whether they are persons taking concerted
                                     action defined in Regulations on Disclosure of Information about Shareholding of
                                     Shareholders of Listed Companies.

                                    Shareholding of top 10 shareholders of unrestricted shares

                                      Quantity of unrestricted shares held at the end of the                Share type
       Name of the shareholder
                                                    reporting period (Note 4)                      Share type          Quantity

Shenzhen Investment Holdings Co.,                                                               RMB Common
                                                                                 144,977,052                             144,977,052
Ltd.                                                                                            shares

                                                                                                Foreign shares
NATWEST SECURITIES HONG                                                                         placed in
                                                                                    1,276,967                              1,276,967
KONG LIMITED                                                                                    domestic
                                                                                                exchange

                                                                                                Foreign shares
                                                                                                placed in
Zheng Bangsheng                                                                     1,203,800                              1,203,800
                                                                                                domestic
                                                                                                exchange

                                                                                                RMB Common
Mao Yong                                                                            1,030,000                              1,030,000
                                                                                                shares

                                                                                                RMB Common
Man Zhiyong                                                                          875,507                                875,507
                                                                                                shares

                                                                                                RMB Common
Fang Minjun                                                                          857,000                                857,000
                                                                                                shares

                                                                                                Foreign shares
                                                                                                placed in
Xu Ruijiang                                                                          791,688                                791,688
                                                                                                domestic
                                                                                                exchange

                                                                                                RMB Common
Cai Zhihao                                                                           738,800                                738,800
                                                                                                shares

                                                                                                RMB Common
Huang Mianshi                                                                        696,360                                696,360
                                                                                                shares

Pan Xinlin                                                                           668,670 Foreign shares                 668,670



                                                                                                                                    41
                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                               placed in
                                                                                               domestic
                                                                                               exchange

Explanation on associated             Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
relationship or consistent action     Shenzhen Investment Holdings Co., Ltd. and a person taking concerted action. Except this,
among the top 10 shareholders of      the Company did not whether there is relationship between the top ten shareholders holding
non-restricted negotiable shares and non-restricted negotiable shares and between the top ten shareholders holding non-restricted
that between the top 10 shareholders negotiable shares and the top 10 shareholders or whether they are persons taking concerted
of non-restricted negotiable shares   action defined in Regulations on Disclosure of Information about Shareholding of
and top 10 shareholders               Shareholders of Listed Companies.

                                      1.   Pan Zhiyong held 875,507 shares in the stock account opened at CITIC Securities Co.,
Explanation on shareholders                Ltd. On basis credit Transaction and guarantee.
participating in the margin trading   2.   Cai Zhihao held 733,800 shares in the stock account opened at Zheshang Securities Co.,
business(if any )(see note 4)              Ltd. On basis of credit transaction and guarantee. He also holds another 5000 shares
                                           through ordinary stock accounts. Thus he actually holds 738,800 shares in total.

Did any shareholder of the Company carry out an agreed buy-back in the reorting period?
□ Yes √ No

III. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
Change of the actual controller in the reporting period
□ Applicable √ Not Applicable




                                                                                                                                    42
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



               VII. Information about Directors, Supervisors and Senior Executives

I. Change in shares held by directors, supervisors and senior executives

Shareholdings of directors, supervisors and senior management staff did not change in the reporting period. For
details, see the 2012 annual report.

I.   Post –leaving and dismissals for directors, supervisors , supervisors and senior executives

None




                                                                                                                     43
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




                                      VIII. Financial Report

1. Audit report

Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.

II. Financial statements

Currency unit for the statements in the notes to these financial statements:RMB

1. Consolidated balance sheet

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit:RMB
                 Items                        Year-end balance                        Year-beginning balance
Current asset:
   Monetary fund                                               744,612,055.76                             232,417,736.06

   Settlement provision
   Outgoing call loan
 Trading financial assets
 Bill receivable                                                12,254,516.72                              20,139,334.03

 Account receivable                                            151,410,803.63                             100,941,342.96

  Prepayments                                                   33,190,113.44                              12,711,147.09

 Insurance receivable
Reinsurance receivable
 Provisions of Reinsurance
contracts receivable
   Interest receivable                                           1,741,666.67

   Dividend receivable
 Other account receivable                                       38,914,270.79                              51,069,068.33

Repurchasing of financial assets
   Inventories                                                 211,837,744.55                             143,258,151.49

Non-current asset due in 1 year
   Other current asset                                         300,000,000.00


                                                                                                                       44
                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Total of current assets                 1,493,961,171.56                             560,536,779.96

Non-current assets:
Loans and payment on other’s
behalf disbursed
  Disposable financial asset               66,931,844.99                              70,159,993.69

  Expired investment in possess
 Long-term receivable
 Long term share equity
                                           48,516,219.43                              48,094,489.26
investment
 Property investment                      152,214,234.38                             154,761,895.71

  Fixed assets                            913,830,813.14                             949,164,677.21

  Construction in progress                 42,517,763.75                              11,576,523.39

Engineering material
  Fixed asset disposal
  Production physical assets
 Gas & petrol
 Intangible assets                         45,020,266.53                              46,162,461.69

 R & D petrol
 Goodwill                                   9,614,758.55                               9,614,758.55

  Long-germ expenses to be
                                              843,602.65                               1,005,588.08
amortized
Differed income tax asset                  35,007,102.31                              29,583,499.67

 Other non-current asset
Total of non-current assets             1,314,496,605.73                           1,320,123,887.25

Total of assets                         2,808,457,777.29                           1,880,660,667.21

Current liabilities
  Short-term loans                                                                    40,153,434.48

  Loan from Central Bank
 Deposit received and hold for
others
 Call loan received
  Trade off financial liabilities
  Bill payable
  Account payable                         142,265,560.86                             101,232,698.62

 Advance payment                           47,077,960.48                              25,663,352.59



                                                                                                  45
                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


  Selling of repurchased financial
assets
 Fees and commissions receivable
 Employees’ wage payable                    19,742,831.64                              25,914,720.85

 Tax payable                                -68,551,969.89                             -67,845,188.78

 Interest payable                            19,497,570.19                              15,091,123.12

 Dividend payable
  Other account payable                     122,905,075.38                             168,127,716.36

 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                  282,937,028.66                             308,337,857.24

Non-current liabilities:
  Long-term loan                            200,000,000.00                             200,000,000.00

 Bond payable
  Long-term payable
 Special payable
 Expected liabilities
Differed income tax liability                13,485,046.18                              12,596,833.13

 Other non-current liabilities               52,446,210.21                              56,714,022.45

Total of non-current liabilities            265,931,256.39                             269,310,855.58

Total of liability                          548,868,285.05                             577,648,712.82

Owners’ equity
  Share capital                             506,521,849.00                             336,521,849.00

 Capital reserves                         1,619,132,777.69                             828,913,137.67

  Less:Shares in stock
 Special reserves
  Surplus reserves                           36,607,659.49                              36,607,659.49

 Common risk provision
  Undistributed profit                       97,327,206.06                             100,969,308.23

Different of foreign currency
translation

                                                                                                    46
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Total of owner’s equity belong to
                                                          2,259,589,492.24                           1,303,011,954.39
the parent company
  Minority shareholders’ equity
Total of owners’ equity                                  2,259,589,492.24                           1,303,011,954.39

Total of liabilities and owners’
                                                          2,808,457,777.29                           1,880,660,667.21
equity


2. Balance sheet of Parent Company

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit:RMB

               Items                         Year-end balance                      Year-beginning balance
Current asset:
Monetary fund                                               269,387,555.45                              33,906,151.53

Trading financial assets
Bill receivable
Account receivable                                              131,006.37                                   1,520.00

Prepayments
Interest receivable                                           1,741,666.67

Dividend receivable                                          22,735,950.89

Other account receivable                                     11,045,371.39                              18,611,433.26

Inventories
Non-current asset due in 1 year
Other current asset
Total of current assets                                     305,041,550.77                              52,519,104.79

Non-current assets:
Disposable financial asset                                   66,931,844.99                              70,159,993.69

Expired investment in possess
Long-term receivable
Long term share equity
                                                          1,825,156,337.23                           1,064,734,607.06
investment
Property investment                                         142,658,500.89                             145,306,758.35

Fixed assets                                                 30,741,023.51                              31,796,996.71

Construction in progress                                     16,561,099.19                               9,416,319.19

Engineering material
Fixed asset disposal


                                                                                                                    47
                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Production physical assets
Gas & petrol
Intangible assets                             2,350,818.80                               2,651,093.96

R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset                     5,441,865.95                               5,539,715.63

Other non-current asset
Total of non-current assets               2,089,841,490.56                           1,329,605,484.59

Total of assets                           2,394,883,041.33                           1,382,124,589.38

Current liabilities
Short-term loans
Trade off financial liabilities
Bill payable
Account payable                                 411,743.57                                 411,743.57

Advance payment                                 639,024.58                                 639,024.58

Employees’ wage payable                      3,972,611.77                               5,899,315.45

Tax payable                                   7,292,735.78                               1,608,258.72

Interest payable
Dividend payable
Other account payable                        76,801,004.77                              74,456,509.51

Non-current liability due in 1 year
Other current liability
Total of current liability                   89,117,120.47                              83,014,851.83

Non-current liabilities:
Long-term loan
Bond payable
Long-term payable
Special payable
Expected liabilities
Differed income tax liability                13,446,127.18                              12,557,914.13

Other non-current liabilities
Total of Non-current liabilities             13,446,127.18                              12,557,914.13




                                                                                                    48
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Total of liability                                          102,563,247.65                              95,572,765.96

Owners’ equity
Share capital                                               506,521,849.00                             336,521,849.00

Capital reserves                                          1,610,549,795.90                             820,330,155.88

Less:Shares in stock
Special reserves
Surplus reserves                                             36,607,659.49                              36,607,659.49

Provision of general risk
Undistributed profit                                        138,640,489.29                              93,092,159.05

Different of foreign currency
translation
Total of owners’ equity                                  2,292,319,793.68                           1,286,551,823.42

Total of liabilities and owners’
                                                          2,394,883,041.33                           1,382,124,589.38
equity


3.Consolidated Profit Statement

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Unit:RMB

                Items                     Amount in this period                     Amount in last period
I. Income from the key business                             576,348,010.06                             375,432,991.91

Incl:Business income                                       576,348,010.06                             375,432,991.91

Interest income
Insurance fee earned
Fee and commission received
II. Total business cost                                     604,944,312.58                             400,741,324.31

Incl:Business cost                                         527,913,970.56                             336,576,764.17

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                                    4,563,456.68                               3,933,220.40

Sales expense                                                 4,096,726.20                               3,823,373.24


                                                                                                                    49
                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Administrative expense                           75,713,852.63                              52,925,299.50

Financial expenses                              -13,929,247.57                               1,070,421.02

Asset impairment loss                             6,585,554.08                               2,412,245.98

Add:Gains from change of fir
value (“-”for loss)
Investment gain(“-”for loss)                 21,908,307.47                               4,523,812.58

Incl: investment gains from
                                                    421,730.17                                 299,087.54
affiliates
Gains from currency exchange
(“-”for loss)
III. Operational profit(“-”for loss           -6,687,995.05                             -20,784,519.82

Add:Non-business income                          5,976,618.99                               4,743,336.68

Less:Non business expenses                          10,000.00                                  10,046.59

Incl:Loss from disposal of
                                                                                                 9,996.59
non-current assets
IV.Total profit(“-”for loss)                     -721,376.06                             -16,051,229.73

Less:Income tax expenses                         2,920,726.11                               2,685,013.34

V. Net profit(“-”for net loss)               -3,642,102.17                             -18,736,243.07

Including: Net profit realized by
the entity taken over before the
takover
Net profit attributable to the
                                                 -3,642,102.17                             -18,736,243.07
owners of parent company
Minority shareholders’ equity
VI. Earnings per share:                 --                                        --

(I)Basic earnings per share                             -0.01                                     -0.06

(II)Diluted earnings per share                            -0.01                                     -0.06

VII. Other comprehensive income                  -1,531,360.83                               9,260,263.28

VIII. Total comprehensive income                 -5,173,463.00                              -9,475,979.79

Total comprehensive income
attributable to the owner of the                 -5,173,463.00                              -9,475,979.79
parent company
Total comprehensive income
attributable minority shareholders




                                                                                                        50
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


4. Profit statement of the Parent Company

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
                                                                                                               Unit:RMB



               Items                        Amount in this period                      Amount in last period

I. Income from the key business                               30,483,599.05                              28,206,871.07

  Lessl:Business cost                                         6,096,505.49                               6,458,435.54

Business tax and surcharge                                     3,226,976.57                               2,483,215.30

     Sales expense
 Administrative expense                                       15,558,850.89                              15,163,331.76

    Financial expenses                                        -2,964,454.33                                -295,713.66

 Asset impairment loss                                          -391,398.70                                -342,179.97

Add:Gains from change of fir
value (“-”for loss)
Investment gain(“-”for loss)                              44,006,427.51                               3,980,880.01

   Incl: investment gains from
                                                                    421,730.17                                 299,087.54
affiliates
II. Operational profit(“-”for loss)                       52,963,546.64                               8,720,662.11

 Add:Non-business income
 Less:Non- business expenses
Incl:Loss from disposal of
non-current assets
III.Total profit(“-”for loss)                               52,963,546.64                               8,720,662.11

  Less:Income tax expenses                                    7,415,216.40                               1,779,143.64

IV. Net profit(“-”for net loss)                           45,548,330.24                               6,941,518.47

V. Earnings per share:                               --                                        --

(I)Basic earnings per share                                             0.11                                       0.02

 (II)Diluted earnings per share                                           0.11                                       0.02

VI. Other comprehensive income                                -1,531,360.83                               9,260,263.28

VII. Total comprehensive income                               44,016,969.41                              16,201,781.75


5. Consolidated Cash flow statement

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
                                                                                                          Unit:RMB



                                                                                                                       51
                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


               Items                 Amount in this period                   Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
                                                     553,459,222.12                             319,936,145.69
or rending of services
Net increase of customer deposits
and capital kept for brother
company
Net increase of loans from central
bank
Net increase of inter-bank loans
from other financial bodies
Cash received against original
insurance contract
Net cash received from
reinsurance business
Net increase of client deposit and
investment
Net increase of trade financial
asset disposal
Cash received as interest,
processing fee and commission
Net increase of inter-bank fund
received
Net increase of repurchasing
business
Tax returned                                          53,614,798.93                              24,564,034.80

Other cash received from business
                                                      12,957,008.71                              19,524,512.16
operation
Sub-total of cash inflow                             620,031,029.76                             364,024,692.65

Cash paid for purchasing of
                                                     598,394,828.97                             297,282,377.33
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


                                                                                                             52
                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Cash paid for interest, processing
fee and commission
Cash paid for policy dividend
Cash paid to staffs or paid for
                                             55,204,135.27                              36,873,269.19
staffs
Taxes paid                                   11,956,318.69                              20,257,096.42

Other cash paid for business
                                             11,990,601.36                              25,670,059.42
activities
Sub-total of cash outflow from
                                            677,545,884.29                             380,082,802.36
business activities
Cash flow generated by business
                                            -57,514,854.53                             -16,058,109.71
operation, net
II.Cash flow generated by
investing
Cash received from investment
                                             22,053,747.37                               3,640,792.47
retrieving
Cash received as investment gains             1,519,830.85                               1,210,300.00

Net cash retrieved from disposal
of fixed assets, intangible assets,                                                        541,400.00
and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Net cash received from disposal
of subsidiaries or other
operational units
Sub-total of cash inflow due to
                                             23,573,578.22                               5,392,492.47
investment activities
Cash paid for construction of
fixed assets, intangible assets and          78,272,962.01                             101,715,739.19
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
                                            300,000,000.00                                  17,403.45
activities

                                                                                                    53
                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Sub-total of cash outflow due to
                                           378,272,962.01                             101,733,142.64
investment activities
Net cash flow generated by
                                          -354,699,383.79                             -96,340,650.17
investment
III.Cash flow generated by
financing
Cash received as investment                965,380,350.00

Incl: Cash received as investment
from minor shareholders
Cash received as loans                      32,644,068.61

Cash received from bond placing
Other financing –related ash
                                               563,172.00
received
Sub-total of cash inflow from
                                           998,587,590.61
financing activities
Cash to repay debts                         72,797,503.09

Cash paid as dividend, profit, or
                                               579,124.83
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing
                                               775,000.00                               1,210,000.00
activities
Sub-total of cash outflow due to
                                            74,151,627.92                               1,210,000.00
financing activities
Net cash flow generated by
                                           924,435,962.69                              -1,210,000.00
financing
IV. Influence of exchange rate
alternation on cash and cash                  -129,860.85                                -269,095.02
equivalents
V.Net increase of cash and cash
                                           512,091,863.52                            -113,877,854.90
equivalents
Add: balance of cash and cash
equivalents at the beginning of            227,189,754.43                             463,817,642.79
term
VI.Balance of cash and cash
                                           739,281,617.95                             349,939,787.89
equivalents at the end of term




                                                                                                   54
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


6. Cash flow statement of the Parent Company

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
                                                                                                         Unit:RMB


               Items                      Amount in this period                     Amount in last period
I.Cash flows from operating
activities
Cash received from sales of goods
                                                             30,339,632.40                              28,451,115.08
or rending of services
Tax returned
Other cash received from business
                                                             29,955,548.56                               2,142,574.86
operation
Sub-total of cash inflow                                     60,295,180.96                              30,593,689.94

Cash paid for purchasing of
                                                              2,720,194.83                               2,077,898.30
merchandise and services
Cash paid to staffs or paid for
                                                              9,995,476.97                               8,729,530.72
staffs
Taxes paid                                                    6,239,542.61                               7,448,140.69

Other cash paid for business
                                                             26,260,639.00                               6,603,913.22
activities
Sub-total of cash outflow from
                                                             45,215,853.41                              24,859,482.93
business activities
Cash flow generated by business
                                                             15,079,327.55                               5,734,207.01
operation, net
II.Cash flow generated by
investing
Cash received from investment
                                                             22,053,747.37                               3,640,792.47
retrieving
Cash received as investment gains                               882,000.00                               1,210,300.00

Net cash retrieved from disposal
of fixed assets, intangible assets,
and other long-term assets
Net cash received from disposal
of subsidiaries or other
operational units
Other cash receivable for
investment activities



                                                                                                                    55
                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Sub-total of cash inflow due to
                                             22,935,747.37                               4,851,092.47
investment activities
Cash paid for construction of
fixed assets, intangible assets and           7,702,193.00                               3,371,159.00
other long-term assets
Cash paid as investment                     760,000,000.00                             108,163,070.03

Net cash received from
subsidiaries and other operational
units
Other cash paid for investment
activities
Sub-total of cash outflow due to
                                            767,702,193.00                             111,534,229.03
investment activities
Net cash flow generated by
                                           -744,766,445.63                            -106,683,136.56
investment
III.Cash flow generated by
financing
Cash received from absorbing
                                            965,380,350.00
investment
Cash received as loans
Cash received from bond placing
Other financing –related ash
                                                563,172.00
received
Sub-total of cash inflow from
                                            965,943,522.00
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing
                                                775,000.00                               1,210,000.00
activities
Sub-total of cash outflow due to
                                                775,000.00                               1,210,000.00
financing activities
Net cash flow generated by
                                            965,168,522.00                              -1,210,000.00
financing
IV. Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and cash             235,481,403.92                            -102,158,929.55



                                                                                                    56
                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


equivalents
Add: balance of cash and cash
equivalents at the beginning of                                        33,906,151.53                             133,011,826.29
term
VI.Balance of cash and cash
                                                                     269,387,555.45                               30,852,896.74
equivalents at the end of term


7. Consolidated Statement on Change in Owners’ Equity
Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
                                                                                                                     Unit:RMB



                                                                      Amount in this period

                                          Owner’s equity Attributable to the Parent Company
                                                                                                          Min
                                                                                      Co
                                                     Less                                                 or
                                                             Speci                   mm
               Items                                   :                                                 share     Total of
                                             Capital         alize                    on
                                     Share           Shar             Surplus             Attributabl Ot hold      owners’
                                             reserve           d                     risk
                                     Capital         es in            reserves             e profit her ers’       equity
                                                s            reser                   pro
                                                     stoc                                                equit
                                                              ve                     visi
                                                       k                                                   y
                                                                                      on
                                    336,521,84 828,913,                                   100,969,308            1,303,011,954.
I.Balance at the end of last year                                    36,607,659.49
                                          9.00    137.67                                          .23                         39

Add: Change of accounting
policy

Correcting of previous errors

  Other

II.Balance at the beginning of      336,521,84 828,913,                                   100,969,308            1,303,011,954.
                                                                     36,607,659.49
current year                              9.00    137.67                                          .23                         39

                                    170,000,00 790,219,                                  -3,642,102.1
III.Changed in the current year                                                                                  956,577,537.85
                                          0.00    640.02                                           7

                                                                                         -3,642,102.1
  (I) Net profit                                                                                                -3,642,102.17
                                                                                                   7

                                                 -1,531,3
  (II)Other misc.income                                                                                         -1,531,360.83
                                                   60.83

                                                 -1,531,3                                -3,642,102.1
Total of (I) and (II)                                                                                             -5,173,463.00
                                                   60.83                                           7

(III) Investment or decreasing      170,000,00 791,751,
                                                                                                                 961,751,000.85
of capital by owners                      0.00    000.85


                                                                                                                               57
                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                  170,000,00 791,751,
1. Capital inputted by owners                                                                                               961,751,000.85
                                           0.00     000.85

2.Amount of shares paid and
accounted as owners’ equity

 3. Other

(IV)Profit allotment

1.Providing of surplus reserves

 2.Providing of common risk
provisions

3.Allotment to the owners (or
shareholders)

       4.Other

(V) Internal transferring of
owners’ equity

 1. Capitalizing of capital
reserves (or to capital shares)

 2. Capitalizing of surplus
reserves (or to capital shares)

 3.Making up losses by
surplus reserves.

4. Other

(VI) Special reserves

1. Provided this year

2.Used this term

  (VII)Other

IV. Balance at the end of this    506,521,84 1,619,13                                             97,327,206.                2,259,589,492.
                                                                            36,607,659.49
term                                       9.00 2,777.69                                                    06                               24

Amount in last year
                                                                                                                                   Unit:RMB



                                                                              Amount in last year

                                                  Owner’s equity Attributable to the Parent Company

                                                                                        Commo                         Minor        Total of
              Items
                                                          Less:   Speciali                       Attribut
                                   Share     Capital                         Surplus    n risk                      sharehold      owners’
                                                         Shares     zed                             able    Other
                                  Capital reserves                           reserves provisio                      ers’ equity    equity
                                                         in stock reserve                         profit
                                                                                            n

I.Balance at the end of last year 336,521 814,540,                            35,912,            182,653,                          1,369,628,



                                                                                                                                              58
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                  ,849.00    889.30            706.22            149.09                         593.61

Add:Retrospective adjustment
caused by merger of entities
under common control

Add: Change of accounting
policy

Correcting of previous errors

  Other

II.Balance at the beginning of    336,521 814,540,            35,912,          182,653,                     1,369,628,
current year                      ,849.00    889.30            706.22            149.09                         593.61

\ III.Changed in the current                14,372,2          694,953          -81,683,                     -66,616,63
year                                          48.37               .27            840.86                           9.22

                                                                               -80,988,                     -80,988,88
  (I) Net profit
                                                                                 887.59                           7.59

                                            14,372,2                                                        14,372,248
  (II)Other misc.income
                                              48.37                                                                .37

                                            14,372,2                           -80,988,                     -66,616,63
Total of (I) and (II)
                                              48.37                              887.59                           9.22

(III) Investment or decreasing
of capital by owners

1. Capital inputted by owners

2.Amount of shares paid and
accounted as owners’ equity

 3. Other

                                                              694,953           -694,95
  (IV)Profit allotment
                                                                  .27              3.27

                                                              694,953           -694,95
1.Providing of surplus reserves
                                                                  .27              3.27

 2.Providing of common risk
provisions

3.Allotment to the owners (or
shareholders)

       4.Other

(V) Internal transferring of
owners’ equity

 1. Capitalizing of capital
reserves (or to capital shares)

 2. Capitalizing of surplus


                                                                                                                     59
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


reserves (or to capital shares)

 3.Making up losses by
surplus reserves.

4. Other

(VI) Special reserves

1. Provided this year

2.Used this term

  (VII)Other

IV. Balance at the end of this      336,521 828,913,                        36,607,            100,969,                          1,303,011,
term                                ,849.00     137.67                       659.49              308.23                              954.39


8. Statement of change in owner’s Equity of the Parent Company

Prepared by : Shenzhen Textile (Holdings) Co., Ltd.
Amount in this period
                                                                                                                                 Unit:RMB



                                                                            Amount in this period

                                                                 Less:                                 Common                     Total of
               Items                   Share        Capital                 Specialized    Surplus                 Attributabl
                                                                Shares in                                 risk                    owners’
                                      Capital      reserves                  reserves      reserves                 e profit
                                                                 stock                                 provision                   equity

                                     336,521,84 820,330,15                                36,607,659               93,092,159 1,286,551,
I.Balance at the end of last year
                                           9.00          5.88                                    .49                       .05       823.42

Add: Change of accounting
policy

Correcting of previous errors

  Other

II.Balance at the beginning of       336,521,84 820,330,15                                36,607,659               93,092,159 1,286,551,
current year                               9.00          5.88                                    .49                       .05       823.42

                                     170,000,00 790,219,64                                                         45,548,330 1,005,767,
III.Changed in the current year
                                           0.00          0.02                                                              .24       970.26

                                                                                                                   45,548,330 45,548,330
  (I) Net profit
                                                                                                                           .24          .24

                                                  -1,531,360.                                                                    -1,531,360.
  (II)Other misc.income
                                                          83                                                                                83

                                                  -1,531,360.                                                      45,548,330 44,016,969
 Subtotal of (I) and (II)
                                                          83                                                               .24          .41

(III) Investment or decreasing of 170,000,00 791,751,00                                                                          961,751,00


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                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


capital by owners                         0.00        0.85                                                                         0.85

                                    170,000,00 791,751,00                                                                    961,751,00
1. Capital inputted by owners
                                          0.00        0.85                                                                         0.85

2.Amount of shares paid and
accounted as owners’ equity

 3. Other

  (IV)Profit allotment

1.Providing of surplus reserves

 2.Providing of common risk
provisions

3.Allotment to the owners (or
shareholders)

       4.Other

 (V) Internal transferring of
owners’ equity

 1. Capitalizing of capital
reserves (or to capital shares)

 2. Capitalizing of surplus
reserves (or to capital shares)

 3.Making up losses by surplus
reserves.

4. Other

(VI) Special reserves

1. Provided this year

2.Used this term

  (VII)Other

IV. Balance at the end of this      506,521,84 1,610,549,                             36,607,659               138,640,48 2,292,319,
term                                      9.00     795.90                                    .49                     9.29       793.68

Amount in last year
                                                                                                                             Unit:RMB



                                                                          Amount in last year

                                                              Less:                                Common                     Total of
                Items                 Share      Capital                 Specialize    Surplus                 Attributabl
                                                             Shares in                               risk                     owners’
                                     Capital     reserves                d reserve     reserves                 e profit
                                                              stock                                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
                                          9.00        7.51                                   .22                       .61      042.34



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                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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,
current year                              9.00         7.51                             .22                    .61      042.34

                                                 14,372,248                                             6,254,579. 21,321,781
III.Changed in the current year                                                 694,953.27
                                                        .37                                                    44           .08

                                                                                                        6,949,532. 6,949,532.
  (I) Net profit
                                                                                                               71           71

                                                 14,372,248                                                          14,372,248
  (II)Other misc.income
                                                        .37                                                                 .37

                                                 14,372,248                                             6,949,532. 21,321,781
 Subtotal of (I) and (II)
                                                        .37                                                    71           .08

(III) Investment or decreasing of
capital by owners

1. Capital inputted by owners

2.Amount of shares paid and
accounted as owners’ equity

 3. Other

                                                                                                        -694,953.2
  (IV)Profit allotment                                                        694,953.27
                                                                                                                 7

                                                                                                        -694,953.2
1.Providing of surplus reserves                                                 694,953.27
                                                                                                                 7

 2.Providing of common risk
provisions

3.Allotment to the owners (or
shareholders)

     4.Other

 (V) Internal transferring of
owners’ equity

 1. Capitalizing of capital
reserves (or to capital shares)

 2. Capitalizing of surplus
reserves (or to capital shares)

 3.Making up losses by surplus
reserves.

4. Other


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                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(VI) Special reserves

1. Provided this year

2.Used this term

  (VII)Other

IV. Balance at the end of this   336,521,84 820,330,15                     36,607,659             93,092,159 1,286,551,
term                                   9.00       5.88                             .49                    .05     823.42


(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.
    At present, the Company is mainly engaged in high-tech industry focusing on R&D, production and marketing
of polarizers for liquid crystal display, management of properties in bustling business districts of Shenzhen and
reserved high-class textile and garment business.

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 22, 2013

(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.




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                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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, 2013
truly and completely and business result in the first half of 2013. and cash flow information, etc.

3. Fiscal year
A calendar year, that is, from January 1 to December 31 is a fiscal year.
4. Accounting standard money
Accounting standard money is RMB. Referring to notes to unless separately stated. Currency:RMB

5. Accounting process method of enterprise consolidation under same and different controlling.

(1)Enterprise merger under same control:

     For the enterprise merger under same control, the assets and liabilities obtained by the merging party from
enterprise merger was measured according to book value of the merged party on the merger date. The capital
reserve was adjusted according to the deference between the book value of net assets obtained by the merging
party and the book value of merger price paid (or the total book value of shares issued); if capital surplus was not
big for the offset, the retained earnings should be adjusted. Amalgamating parties reckon every direct relate
expenses produced in enterprise consolidation including auditing expense, valuation expense and legal service
expense paid on enterprise consolidation to current profit and loss when those expenses produced. On parent
subsidiary relationship formed via enterprise consolidation , parent company is responsible of editing
amalgamation property balance sheet, amalgamation profit statement and amalgamation 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.




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                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


     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.
(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.

    (2)Accounting treatment when the share equity of the same subsidiary is purchased and sold, or sold
 andsurchased in successively two years.

7. Recognition Standard of Cash & Cash Equivalents
     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.Foreign Currency Transaction
     (1)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

                                                                                                                      65
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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) Conversion for foreign financial statement
The subsidiaries of the company whose standard currency was foreign currency, all asset and liability items
should be converted into the standard money of parent company according to the spot rate on the balance sheet
date, and all the owners’ equity items, accept for "retained profits", should be converted into the standard money
of parent company according to the spot rate on the balance sheet date. The income and cost items in the profit
statement should be converted into the standard money of parent company according to the spot rate during the
period of consolidating financial statements. The conversion differences due to different exchange rate, should be
reflected by opening the "foreign currency conversion difference statements" in RMB. And open the "foreign
currency statements conversion differences" in cash flow statement in RMB.


  9. Financial instruments

(1) Classification of financial instruments:
Financial assets can be divided into: the financial assets which measured by fair value and its changes are included
in the current loss and gain (including transactional financial assets and the financial assets which measured by
fair value and its changes are included in the current loss and gain), the expired investments, loans and receivables
held, and financial assets to be sold, the four categories;
(2) Measurement of financial instruments
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)The conditions to stopping the financial liabilities


                                                                                                                      66
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(5)Recognition basis of financial assets and financial liabilities
     Determination of fair value of financial assets:
A, The financial assets which exist in the market, the quotation in the market will be determined as fair value;
B, The financial assets which do not exist in the market, adopt valuation techniques to determine the fair value.
The results by the valuation techniques show the transaction prices which may be used in fair transactions on the
valuation day.

(6)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
     (6)Measurement of impairment losses of financial assets:
     A.The financial assets measured according to fair value and its changes are include in the current loss and
gain require no test of impairment;
     B.The measurement of impairment loss of expired investments: Account provision for impairment according
to the difference of the value of future cash flow lower than the book value;
     C. Judgment of impairment of available-for-sale financial assets: if there is a significant decline in the fair
value of available-for-sale financial assets, more than 30%of its cost of ownership, expect this downward trend is
temporary (duration more than 12 months), depends on the estimated balance of the book value and the present
value of future cash flows to decide the provision for impairment.




                                                                                                                       67
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(7)If investment held to mature is recztegorized to sellable financial assets, please state the intention or evidence
of change incapability .

10. Recognition standard and providing basis of bad debt provision on receivable accounts

If the amount of a single item is big, impairment test shall be conducted separately. Impairment loss shall be
recognized and provision for bad debts shall be made according to the difference between its present value of its
future cash flow and its book value. If the amount of single item is not big and conclusive evidences show
apparent difference in respect of recoverability of accounts receivable, test shall be conducted and provision for
bad debts shall be made separately. For the accounts receivable proved to be not impaired after separate test, aging
analysis shall be adopted and impairment loss shall be recognized according to the age of accounts receivable and
specified proportion.


(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 in amount. The Client Identifies
Criteria and norm of individual significance
                                                                       single amount of accounts receivable that is not less than

                                                                       RMB 0.5 million as account receivable that are individually

                                                                       significant in amount.


                                                                       If it is objectively evidential that a receivable of individual

Measurement of impairment allowances for receivables of individual significance has impaired, the impairment loss shall be

significance                                                           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

In Group, the adopting aging analysis method
√Applicable□Not applicable



               Age                         % for accounts receivable                            % for other receivables


                                                                                                                                    68
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Within 1 year(incl: 1 year)                                         5%                                                        5%

1-2 years                                                           10%                                                       10%

2-3 years                                                           30%                                                       30%

Over 3 years                                                         50%                                                       50%

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
                                           There is evidence that differences in the receivable are apparently .
impairment

                                           A receivable which is individually insignificant but the credit risk is high, should be
Method for recognition of impairment       individual it assessed for impairment, the impairment loss shall be recognized based
allowances                                 on the difference of the book values higher than the present value of future cash
                                           flows.



     11.Inventory


(1)Inventory classification


Inventory can be divided into five categories: raw materials, materials commissioned to process, products,

finished products, working materials;


(2)Pricing method of stock delivered

     Stock delivered is measured according to weighted average method.

(3)Confirmation basis of stock net realizable value and withdrawal method of inventory falling price reserves.
    Inventory net realizable value is the integrant value that estimated sales price deducting estimated work
completing cost and integrant estimated cost according to the normal business process.
Withdrawal method of inventory falling price reserves: with the basis that the company making complete
inventory taking at the end of medium term and end of year, on the inventory that suffered loss, entire or partial
old and outdated or sale price lower than sales price, according to inventory cost and net realizable value (lower is
preferred), the company measure it and reckoned it according to the difference of net realizable value of single
inventory item upon similar inventory items lower than inventory cost as withdrawal inventory falling price
reserves to profit and loss at current period. In confirming net realizable value, the infection upon future item shall
be considered beside the price and cost fluctuation of the inventory at balance sheet date.
(4)Inventory system
Inventory system adopts the perpetual inventory method.
(5)Amortization method of consumption goods with low value and wrap page
Consumption goods with low value: Consumption goods with low value adopt one time amortization method

                                                                                                                                     69
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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
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

                                                                                                                      70
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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.
     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


                                                                                                                       71
                                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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.
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


                                                                                                                        72
                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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


   Classification of fixed asset    Depreciable life(Year)       Residual rate(%)             Depreciation rate(%)

House and Building                 35-40 years                                          4% 2.74%-2.40%

Machinery and equipment            10-14 years                                          4% 9.60%-6.86%

Electronic Equipment               8 years                                              4% 12.00%

Transportation equipment           8 years                                              4% 12.00%

Other equipment                    8 years                                              4% 12.00%

(4)Depreciation measuring method and depreciation reserves withdrawn method of fixed assets
Judge fixed assets appearing the depreciation evidence or not at balance sheet date. If assets market value
continuously decreases, or technology is old, damaged or long-term left un-used, draw back amount. The
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.


     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


                                                                                                                             73
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


     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 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.


     (4)Calculation of the amount of capitalization of Loan costs

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.

                                                                                                                      74
                                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(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

None


  19. .Intangible assets

(1)Pricing of intangible assets

Intangible assets refer to recognizable non-monetary assets without physical form that are owned or controlled by
an enterprise, including proprietary technology, land use right, etc.
Intangible assets shall be accounted for at historical cost at the time of acquisition.

(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.


(4)Provision for impairment of investment assets




                                                                                                                        75
                                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


      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
(1)Long-term prepaid expenses refer to that enterprises have already spent, and amortization periods of all
expenses are more than one year (excluding 1 year), they should be amortized in the regulated years.
(2)Long-term deferred expense is valuated according to actual cost, the installation cost should be equally
amortized during two major overhauls or the contract period (depends on which is shorter), other long-term
deferred expenses should be equally amortized according to the benefit period of the project. For the long-term
deferred expenses which can not bring predicted profit in the future accounting period, all the unamortized value
should be converted to the current loss and gain.

21.Asset transferring with repurchasing terms

None

22.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.




                                                                                                                        76
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


23.Share payment and equity instrument

Not applicable

24.Repurchasing of the Company’s shares

Not applicable


25. Revenues

(1)Recognition time for sales of 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.

The time confirmation of specific sales of main trade styles:

     A. FOB is the trade style of goods exportation, means that the seller delivers when the goods pass the ship’s

rail at the named port of shipment in contract;

     B. CIF is the trade style of goods exportation, means that the seller delivers when the goods pass the ship's

rail in the destination port ;

     C. Domestic sales time confirmation means the time of commodities ownership evidence transfer or physical

goods delivery.

(2)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.
(3)Confirm the eveidence to provide labor income

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.




                                                                                                                     77
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


( 4 ) Deciding of completion percentage when percentage basis is adopted to recognize income from
serviceproviding or construction contracts


26. 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


  27. Deferred income tax assets/Deferred income tax liability

     (1)Confirmation of deferred income tax assets
     A.Limited by the company possibly acquired taxability amount for deducting temporary difference, confirm
the deductible difference deferred income tax assets produced from temporary difference. But the deferred income
tax assets produced from the initial confirmation of assets or liability in trade with the following characters are not
confirmed:
     a. The trade is not enterprise consolidation ;
     b. When trade happens, which will neither affect accounting benefit nor affect taxability amount of income
(or deduct loss).
      B. The company, on the deductible temporary difference associated to investment of subsidiary company,
affiliated company and partnership business simultaneously meet the following conditions, confirms relative
deferred income tax assets:
     a.   Temporary difference most likely is transferred in the foresight future.
     b. Taxability amount of income that most likely used to deduct temporary difference in future.
     C. The company confirms relative deferred income tax assets for transferable later annual deductible loss and
taxation decreasing with future taxability amount of income for deducting deductible loss and taxation decreasing
as limitation.
     (2) The confirmation of deferred income tax liability
     Besides the deferred income tax liability produced under the following conditions, the company confirms all
deferred income tax liability produced by all taxability temporary difference:


                                                                                                                       78
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


     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.
     rage raw material and raw material purchasing order       appointed to be headged object that make company
facing fair value alteration risk.

28. Operating and finance leases

Not applicable

29. Sellable assets in possession

Not applicable

30.Securitilization of assets

Not applicable

31.Hedging instruments

    (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
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


     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.

32.Change of main accounting policies and estimations

None


(1)Change of accounting policies

None


(2)Change of accounting estimations

None


33.Correction of accounting errors in previous period

None


(1)Retrospective restatement

Is there any retrospective restatement on the accounting error with previous periods done in the report term
□ Yes √ No

(2)Future adoption method

Is there any future adoption method apply able to accounting errors with previous period, found in the report
period.
□ Yes √ No

34.Other principal accounting policies, estimations and preparation method of financial statements

None




                                                                                                                       80
                                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



      (V).Taxes of the Company

      1. Main taxes categories and tax rate

                        Taxes                                       Tax references                             Applicable tax rates

VAT                                                   Incomes from product sales                    17.00%

                                                      Providing labor services, real estate
Business tax.                                                                                       5.00%
                                                      sales, the transfer of intangible assets

City construction tax                                 VAT, sales tax, turnover tax, etc             7.00%

Business income tax                                   Taxable income                                25.00%、15.00%



  2. Tax preference and approval file

(1))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%.


(2)Awin accordance with relevant provisions of the Notice of Ministry of Finance, General Administration of
Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supporting the
Development of New-type Display Device Industry (Cai Guan Shui (2012) No. 16), the enterprises manufacturing
key materials and parts for the upstream industry of new-type display devices including colorful light filter
coating and polarizer sheet that comply with the planning for independent development of domestic industries
may enjoy the preferential policies of exemption from import tarriff for the import of raw materials and
consumables for the purpose of self use and production that can not be produced domestically and levy of
import-related value added tax according to relevant regulations in the period from June 1, 2012 and December 31,
2015. For the concrete regulations on tax exemption, the Provisional Regulations on Taxation Policies for
Imported Materials of Enterprises Manufacturing New-type Display Device Panels (the appendix of Cai Guan
Shui (2012) No. 16 Document) shall prevail. According to the Notice of Printing and Issuing the Scope of
Imported Materials of Enterprises Manufacturing Colorful Light Filtering Coating and Polarizer Sheets and the
List of the First Group of Enterprises Enjoying Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen
Shengbo Optoelectronic Technology Co., Ltd. was included in the list of the first group of enterprises enjoying the
above-mentioned policies.


  (VI) Enterprise consolidation and combined financial statements

      1. Subsidiary

(1)Subsidiary obtained through establishment or investment
                                                                                                                                     Unit:RMB



  Full                Registra             Register             Actual    Other    Holding Proporti Whether Interest Amount            After
           Subsidia              Busines              Busines
name of                 tion                 ed                 capital projects proporti        on of   consolid    of     used to    wrote
           ry type                  s                 s scope
subsidia               place               capital              amounts balance       on         voting ation of minority    write     down


                                                                                                                                               81
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


     ry                                                         of      essential    (%)     rights(% report sharehol down     current
                                                              the end ly from                   )     form    der     lost     period
                                                                          net                                       included loss of
                                                                        investm                                        in      minority
                                                                         ent to                                     minority sharehol
                                                                        subsidia                                    sharehol     ders
                                                                           ry                                         der       over
                                                                                                                    interest    equity
                                                                                                                               beginni
                                                                                                                               ng share
                                                                                                                                  of
                                                                                                                               minority
                                                                                                                               sharehol
                                                                                                                               ders in
                                                                                                                                 the
                                                                                                                               subsidia
                                                                                                                               ry from
                                                                                                                                 the
                                                                                                                                parent
                                                                                                                               compan
                                                                                                                                 y’s
                                                                                                                               share ,B
                                                                                                                                alance
                                                                                                                                  of
                                                                                                                               Owner's
                                                                                                                                equity

                    Shenzhe                      Fabrics,
                    n                            bedding,
                                                 clothing
Shenzhe                                          , textiles
n Jinlan                                         raw
                              Fabrics,
Decorati Wholly-                                 material
                              bedding,
ve         owned                         4,000,0 s            4,000,0
                              clothing                                                90%      100% Yes
Articles subsidia                        00.00   processi       00.00
                              nabyfact
Industri ry                                      ng
                              ubg
al Co.,                                          manufac
Ltd.                                             turing,
                                                 wholesa
                                                 le and
                                                 retail.

Shenzhe Wholly- Shenzhe Domesti                  Domesti
n Lisi     owned    n         c          2,360,0 c            2,360,0
                                                                                    90.68%     100% Yes
Industri subsidia             commer 00.00       commer         00.00
al Co.,                       ce,                ce,

                                                                                                                                         82
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Ltd        ry             material             material
                          s supply             s supply
                          and                  and
                          sales                sales

Shenzhe Wholly- Shenzhe
n          owned   n                           Accom
Huaqian subsidia                               modatio
g Hotel ry                                        n,
                                               restaura
                                                  nts,
                                               business
                                               center;
                                                 ticket
                                               consign
                          Accom                  ment;
                          modatio              Property
                          n,                   Manage
                                     10,005,               10,005,
                          restaura               ment                          95%    100% Yes
                                     300.00                300.00
                          nts,                 (require
                          business               d to
                          center                obtain
                                                  the
                                               relevant
                                               qualific
                                                 ation
                                               certifica
                                                 te for
                                                 their
                                               operatio
                                                  ns)



Shenzhe Wholly- Shenzhe
n          owned   n
                                               The
Shenfan subsidia
                                               Compan
g          ry             Property
                                     1,600,0 y             1,600,0
Property                  manage                                            93.75%    100% Yes
                                     00.00     property     00.00
Manage                    ment
                                               manage
ment
                                               ment
Co.,
Ltd.

Shenzhe Wholly- Shenzhe Producti               Producti
                                     25,000,               25,000,
n          owned   n      on of                on of                         100%     100% Yes
                                     000.00                000.00
Beauty subsidia           fully                fully



                                                                                                                              83
                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Century ry   electron   electron
Garmen       ic         ic
t Co.,       jacquard   jacquard
Ltd.         knitting   knitting
             whole      whole
             shape      shape
                        (without
                        restricti
                        ons on
                        the
                        project);
                        clothing
                        , textiles
                        and
                        related
                        accessor
                        ies for
                        buying
                        and
                        selling
                        (excludi
                        ng
                        franchis
                        e,
                        special
                        control,
                        propriet
                        ary
                        products
                        );
                        operatin
                        g import
                        and
                        export
                        business
                        (by
                        "Import
                        and
                        Export
                        Enterpri
                        se
                        Qualific
                        ation
                        Certific


                                                                                                   84
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                ate"
                                                deep
                                                free
                                                trade
                                                Certific
                                                ate Zi
                                                No.
                                                2002-33
                                                9 tube
                                                business
                                                );
                                                industri
                                                al
                                                projects
                                                (the
                                                specific
                                                items to
                                                be
                                                declared
                                                separate
                                                ly).

Shenzhe Wholly- Shenzhe                         Operati
n        owned        n                         ng
Shenfan subsidia                                import
g Import ry                                     and
&                                               export
Export                                          business
                           Operati
Co.,                                            (the
                           ng
Ltd.                                            specific
                           import     5,000,0              5,000,0
                                                approva                      100%     100% Yes
                           and        00.00                 00.00
                                                l by the
                           export
                                                relevant
                           business
                                                import
                                                and
                                                export
                                                business
                                                handled
                                                )

Shengtou Wholly-o Hongkon Polaroid
                                      HKD10
(HK) Co., wned        g    Sales                                             100%     100% Yes
                                      000
Ltd.     subsidiary

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


                                                                                                                              85
                                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


actually control 100%;



(2)The company has no subsidiary company acquired via enterprise consolidation under same controlling.
                                                                                                                                                         Unit:RMB


                                                                                                                                                                   After

                                                                                                                                                                   wrote

                                                                                                                                                                   down

                                                                                                                                                                  current

                                                                                                                                                                  period

                                                                                                                                                                  loss of

                                                                                                                                                                 minority

                                                                                                                                                                 sharehold
                                                                                     Other                                                         Amount
                                                                                                                                                                  ers over
                                                                                    projects                                                        used to
                                                                                                                                                                  equity
                                                                   Actual           balance                                                          write
Full name                                                                                                   Proportio Whether Interest of                        beginning
                                                                   capital         essentiall   Holding               consolidat          down lost
   of        Subsidiar Registrati Business Registrati Scope of                                  proportio      n of     ion of   minority                         share of
                                                                  amounts           y from          n                                     included
subsidiary    y tyle   on Place   character on capital business                                               voting    report sharehold                         minority
                                                                  of         the      net         (%)                                        in
company                                                                                                     rights(%)    form       er                           sharehold
                                                                       end         investmen                                              minority
                                                                                                                                                                 ers in the
                                                                                      t to                                                         sharehold
                                                                                                                                                                 subsidiary
                                                                                   subsidiary                                                      er interest
                                                                                                                                                                 from the

                                                                                                                                                                  parent

                                                                                                                                                                 company’

                                                                                                                                                                     s

                                                                                                                                                                 share ,Bal

                                                                                                                                                                  ance of

                                                                                                                                                                  Owner's

                                                                                                                                                                  equity

Notes
None

(3)The company has no subsidiary company acquired via enterprise consolidation under same controlling.

                                                                                                                                                         Unit:RMB


                                                                                     Other                                                         Amount          After
                                                                   Actual                                               Whether
Full name                                                                           projects    Holding Proportio                    Interest of    used to        wrote
                                                                   capital                                              consolidat
   of        Subsidiar Registrati Business Registrati Scope of                      balance     proportio     n of                   minority        write         down
                                                                  amounts                                                 ion of
subsidiary    y tyle   on Place   character on capital business                    essentiall      n         voting                  sharehold down lost          current
                                                                  of         the                                          report
company                                                                             y from        (%)       rights(%)                    er        included       period
                                                                       end                                                form
                                                                                      net                                                              in         loss of



                                                                                                                                                                            86
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                          investmen                                 minority   minority

                                                                             t to                                  sharehold sharehold

                                                                          subsidiary                               er interest ers over

                                                                                                                                equity

                                                                                                                               beginning

                                                                                                                                share of

                                                                                                                               minority

                                                                                                                               sharehold

                                                                                                                               ers in the

                                                                                                                               subsidiary

                                                                                                                               from the

                                                                                                                                parent

                                                                                                                               company’

                                                                                                                                   s

                                                                                                                               share ,Bal

                                                                                                                                ance of

                                                                                                                                Owner's

                                                                                                                                equity

                                                     Wholes
                                                     ale,
                                                     manufac
                                                     turing
                                                     and
                                                     process
                                                     various
                                                     specific
                                                     ations
                                                     material
Shenzhen
                                                     s and
Shengbo
                               Productio             apparatu
Optoelect Limited                          RMB
                       Shenzhe n and                 s of       300,000
ronic      Liability                       300                                         100%   100% Yes
                       n       sales of              polarize   ,000.00
Technolo Company                           million
                               polarizer             r, LCD;
gy Co.,
                                                     import
Ltd
                                                     and
                                                     export
                                                     business
                                                     (except
                                                     projects
                                                     inhibite
                                                     d by
                                                     law,
                                                     administ
                                                     rative


                                                                                                                                          87
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                          regulati
                                          on, State
                                          Depart
                                          ment),
                                          the
                                          limited
                                          projects
                                          shall be
                                          manage
                                          d with
                                          the
                                          permissi
                                          on

Notes


2. Entities with special purposes or entities on which the Company has controlling power through entrusted
operation or leasing

None

3. Changes of combination scope at current period
None


4. Entities that are newly included in the scope of consolidation in current reporting period

None


5. Business combinations involving entities under common control that happened in current reporting period

None


6. Business combinations involving entities under common control that happened in current reporting period

None


7.Sell stock right losing controlling right to decrease subsidiary company.

None


8.Reverse acquisition occurred in the report period

None




                                                                                                                      88
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


9.Takeover occurred in the report period.

None

10.Exchange rate of main accounts of overseas businesses

None
      VII. Notes   to the major items of consolidated financial statement

      (I)Monetary Capital
Unit:RMB

                                         Year-end balance                                  Year-beginning balance
          Items                             Exchange                                            Exchange
                         Foreign currency                     RMB            Foreign currency                       RMB
                                              rate                                                rate

Cash:                           --                --           104,026.78           --                --              105,473.78

RMB                             --                --             39,234.86          --                --               59,331.88

HKD                            31,512.94 0.80                    25,097.64           4,226.94 0.81                       3,427.39

USD                              6,284.10 6.14                   38,827.57           6,784.10 6.29                     42,641.46

JPY                            14,000.00 0.06                       866.71           1,000.00 0.07                         73.05

Bank deposit:                  --                --        744,480,412.47          --                --       210,503,784.94

RMB                             --                --        704,283,696.84          --                --       194,980,561.64

HKD                         2,350,144.69 0.80                 1,868,966.19      3,032,356.82 0.81                    2,458,698.80

USD                         6,240,828.26 6.14                38,303,707.53      2,073,931.29 6.29                   13,035,695.12

JPY                           388,349.00 0.06                    24,041.91        394,658.00 0.07                      28,829.38

Other Capital                   --                --             27,616.51          --                --            21,808,477.34

RMB                             --                --             27,378.22          --                --            20,779,057.48

USD

JPY                                                                            14,088,785.00 0.07                    1,029,171.66

EUR                                  29.84 7.99                     238.29               29.84 8.32                       248.20

Total                           --                --        744,612,055.76          --                --       232,417,736.06


Notes of Monetary fund has not these conditions such as usage limitation for mortgage, pledge or frozen fund,

stored overseas, with potential recovery risk.

(1)As of June 30, 2013,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, 2013,The fixed-term deposit balance of money fund is RMB 5,330,437.81, this part will not

                                                                                                                               89
                                                             Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


be treated as closing cash or closing cash equivalent in preparing cash flow statement.

2.Transactional financial assets

None


3. Bill receivable

(1)Classification Bill receivable
Unit RMB

                       Classification                         Year-end balance                  Year-beginning balance

Bank acceptance                                                          12,254,516.72                          20,139,334.03

Total                                                                    12,254,516.72                          20,139,334.03


(2)Bill receivable under pledge

                                                                                                                     Unit:RMB

            Issuer                 Date of issue          Expired on                Amount                   Remark

None


(3)Bill transferred to account receivable for the issuer is not able to execute the liability , and notes endorsed to
other parties but are not mature yet at the end of period.

Bill transferred to account receivable for the issuer is not able to execute the liability
                                                                                                                 Unit:RMB


            Issuer                 Date of issue          Expired on                Amount                   Remark

Shantou Ultrasonic
                             March 20, 2013        September 20, 2013                     724,250.00
Electric Co., Ltd.

Shenzhen Jingxu Electric
                             April 2, 2013         July 2, 2013                           615,233.45
 Co., Ltd.

Jurong Juncheng
                             March 28, 2013        September 28, 2013                     514,308.68
Electroc Co., Ltd.

Hebei Jinya Electric
                             March 29, 2013        September 29, 2013                     504,550.00
 Co.,Ltd.

Jurong Juncheng Electric
                             April 19, 2013        October 19, 2013                       500,000.00
 Co., Ltd.

Total                                   --                    --                         2,858,342.13           --

        4. Dividends receivable


                                                                                                                            90
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


None


5. Interest receivable

(1)Interest receivable

Unit:RMB

                              Amount at year
          Items                                         Increase at this period    Decrease at this period   Amount at period end
                                beginning
                                                            1,741,666.67                                         1,741,666.67
          Total                                             1,741,666.67                                         1,741,666.67




(2)Overdue interests

N/A


(3)Notes

None
       6. Account receivable
       1.Classification accojunt receivables.

Unit :RMB

                                            Amount in year-end                                    Amount in year- begin

                                Book Balance               Bad debt provision           Book Balance          Bad debt provision
        Classification
                             Amount       Proportion(     Amount       Proportion( Amount Proportion(        Amount       Proportion(%
                                              %)                           %)                      %)                           )

Receivables with major
individual amount and bad
debt provision provided
individually receivables    1,807,687.3                 1,807,687.3                 1,807,687
                                               1.09%                        100%                    1.61% 1,807,687.37              100%
with major individual                 7                            7                      .37
amount and bad debt
provision provided
individually

Receivables provided bad debt provision in groups

                            159,586,67                  8,175,874.9                 106,479,2
Age of group                                 96.33%                        5.12%                   94.83% 5,537,931.64              5.2%
                                  8.58                             5                    74.60

                            159,586,67                  8,175,874.9                 106,479,2
Subtotal of group                            96.33%                        5.12%                   94.83% 5,537,931.64              5.2%
                                  8.58                             5                    74.60

Account receivable with     4,273,339.4        2.58% 4,273,339.4            100% 4,003,127          3.56% 4,003,127.89              100%


                                                                                                                                       91
                                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


minor individual amount                  8                                8                          .89
but bad debt provision is
provided

                               165,667,70                    14,256,901.                       112,290,0                      11,348,746.9
Total                                            --                                  --                         --                                     --
                                       5.43                          80                            89.86                                   0


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
√ Applicable □ not applicable
                                                                                                                                                      Unit:RMB



                Description                      Book balance                 Bad debt provision               Rate(%)                  Reason to provide

Dongguan Feier LCD Co., Ltd.                               1,807,687.37                   1,807,687.37                       100% Unable to recover

Total                                                      1,807,687.37                   1,807,687.37               --                          --

Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ not applicable
                                                                                                                                                Unit:RMB


                                          Balance in year-end                                                  Balance in year-begin

                               Balance of book                                                           Balance of book
         Age
                                                                     Bad debt                                                                  Bad debt
                                              Propertion(                                                                 Propertion(
                              Amount                                 provision                      Amount                                     provision
                                                  %)                                                                          %)

Within 1 year

Including:                     --                    --                      --                         --                   --                  --

                            158,719,524.14        99.46%                  7,904,613.25            105,490,691.55             99.07%             5,274,534.58

Subtotal of within
                            158,719,524.14        99.46%                  7,904,613.25            105,490,691.55             99.07%             5,274,534.58
1 year

1-2 years                       144,570.00            0.09%                        14,457.00             288,946.25            0.27%                  28,894.62

2-3 years                       522,437.64            0.33%                    156,731.29                576,579.80            0.54%              172,973.94

Over 3 years                    200,146.80            0.12%                    100,073.40                123,057.00            0.12%                  61,528.50


                                                                                                                                                             92
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


3-4 years                      200,146.80          0.12%              100,073.40         123,057.00          0.12%               61,528.50

Total                       159,586,678.58         --               8,175,874.95     106,479,274.60          --              5,537,931.64

Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
Receivable accounts with minor amount but on which had debt provisions are provided individually at end of
period
√Applicable □Not applicable
                                                                                                                                 Unit:RMB



  Description Of other
                                 Book balance              Amount of bad debt              Rate                          reason
        receivables

Receivable accounts with
no large amount                        4,273,339.48                 4,273,339.48                      100% Unable to recover
individually

Total                                  4,273,339.48                 4,273,339.48             --                             --


(2)Receivable accounts written back or retrieved in the report period

                                                                                                                                 Unit:RMB

                                                                                     Bad debt provision
                                Reason to write back       Basis of original bad                                  Amount written back or
 Description of receivables                                                        provided before writing
                                     or retrieve              debt provision                                              retried
                                                                                     back or retrieving

In the end report peiod, separate amount is not large , the account receivable with big combination risk after
combined via risk character
                                                                                                                                 Unit:RMB



            Name                 Book balance              Amount of bad debt        Proportion(%)                     Reason

Receivable accounts with
                                       1,807,687.37                 1,807,687.37                      100% Unable to recover
large amount individually

Receivable accounts with
no large amount                        4,273,339.48                 4,273,339.48                      100% Unable to recover
individually

Total                                  6,081,026.85                 6,081,026.85             --                             --

Notes


(3)Receivable accounts actually written off in the report period

None

                                                                                                                                        93
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(4)Particulars about the receivable accounts due from shareholders with 5% or over of the Company’s shares

                                                                                                                           Unit:RMB

                                                       Year-end balance                           Year-beginning balance
                 Name
                                              Book Balance            Amount              Book Balance               Amount

                 None




(5)The front 5 units’ information of account receivable

Unit :RMB



                                 Relation with the                                                              Portion in total
            Name                                                  Amount                   Ages
                                      Company                                                                   receivables (%)

Shenzhen China Star
Optoelectroincs              Client, related parties               53,981,726.39 Within 1 year                                32.58%
Technology Co., Ltd.

Kunshan Longteng
                             Client                                14,217,400.25 Within 1 year                                 8.58%
Optoelectronics Co., Ltd.

Shenchao
Optoelectronics(Shenzhe Client                                      11,211,891.49 Within 1 year                                6.77%
n ) Co., Ltd.

Fuhaipeng Electroinc
                             Client                                  9,818,302.16 Within 1 year                                5.93%
Technology Co., Ltd.

Guangdong Ruili Baolai
                             Client                                  8,632,887.47 Within 1 year                                5.21%
Technology Co., Ltd.

Total                                    --                        97,862,207.76             --                               59.07%


(6)Account receivable from Related parties

                                                                                                                           Unit:RMB



                                                                                                       Portion in total receivables
                Name                  Relation with the company                 Amount
                                                                                                               account(%)

Shenzhen China Star
Optoelectroincs Technology        Client, related parties                             53,981,726.39                           32.58%
Co., Ltd.

Shenzhen Tianma
                                  Client, related parties                                919,802.90                            0.56%
Microelectronics Co., Ltd.


                                                                                                                                      94
                                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Total                                                 --                                     54,901,529.29                              33.14%


(7)Termination of receivable accounts

                                                                                                                                  Unit:RMB

                    Items                                    Derecognised amount              Gains/losses associated with the derecognition

                    None


(8)For securitization on receivable accounts, please provide the amount of asset and liability formed bycontinuous
 involving

                                                                                                                                  Unit:RMB

                            Items                                                             Year-end balance

Assets:

None

Liability:

None

        7. Other receivable
        1.Type analyses:


                                                                                                                      Unit:RMB


                                                 Amount in year-end                                      Amount in year-begin

                                     Book Balance              Bad debt provision             Book Balance             Bad debt provision
            Type
                                    Amount       Proportio      Amount       Proportio    Amount        Proportion(     Amount        Proportio
                                                   n(%)                        n(%)                         %)                          n(%)

Other receivables with
major individual amount 12,075,436.4                          12,075,436.4               12,075,436.4
                                                   22.12%                       100%                       17.93% 12,075,436.43          100%
and had debt provision                       3                           3                          3
provided individuarlly

Other receivables provided bad debt provision in groups

                               41,754,822.4                                              54,519,378.9
Account age group                                  76.48% 2,840,551.62          5.08%                      80.93%      3,450,310.58      6.33%
                                             1                                                      1

                               41,754,822.4                                              54,519,378.9
Subtotal of group                                  76.48% 2,840,551.62          5.08%                      80.93%      3,450,310.58      6.33%
                                             1                                                      1

Other account
receivablewith minor
                                766,081.15           1.4%       766,081.15      100%      766,081.15         1.14%      766,081.15       100%
individual amount but
bad debt provision is


                                                                                                                                               95
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


provided

                            54,596,339.9                15,682,069.2              67,360,896.4
Total                                         --                           --                          --         16,291,828.16       --
                                      9                           0                         9


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.
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable


                                                                                                                                  Unit:RMB

        Decription              Book balance              Amount of bad debts            Rate(%)                        Reason

Jiangxi Xuanli String
                                     11,389,044.60                11,389,044.60                             100% Estimated uncollectible
Co., Ltd.

Shenzhen Tianlong
Industry & trade Co.,                      686,391.83                   686,391.83                          100% Estimated uncollectible
Ltd.

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:
√ Applicable □ Not applicable
                                                                                                                                  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

Including :

                                    37,357,858.30 89.47%               1,899,354.34     50,412,655.15 92.47%                  2,520,627.76

Subtotal of within 1 year           37,357,858.30 89.47%               1,899,354.34     50,412,655.15 92.47%                  2,520,627.76

1-2 years                            2,492,243.39       5.97%           249,224.34       2,103,003.04         3.86%               210,300.30

2-3 years                            1,301,937.10       3.12%           390,581.13       1,412,389.24         2.59%               423,716.77

Over 3 years                          602,783.62        1.44%           301,391.81         591,331.48         1.08%               295,665.75




                                                                                                                                            96
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


3-4 years                            592,783.62     1.42%            296,391.81          581,331.48       1.07%              290,665.75

Over 5 years                           10,000.00    0.02%              5,000.00           10,000.00       0.01%                5,000.00

Total                             41,754,822.41      --            2,840,551.62       54,519,378.91        --           3,450,310.58

Other receivable account in Group on which bad debt provisions were provided on percentage basis
□ Applicable √ not applicable
Receivable account on which bad debt provisions are provided by other ways in the portfolio
□ Applicable √ not applicable
Other receivable accounts with minor amount but were provided had debt provisions individually at end of period
√Applicable□ not applicable


                                                                                                                             Unit:RMB

          Content            Book balance                 Bad debt Provision           Rate(%)                      Reason

Other Receivable
accounts with no large                 766,081.15                   766,081.15                      100% Estimated uncollectible
amount individually

Total                                  766,081.15                   766,081.15              --                          --


(2)Other receivable accounts written back or retrieved in the report period

                                                                                                                  Unit:RMB



                                                                                  Accumulatively Accruing
                            Cause of written back
            Content                                  Determine the Basis of Allowances for Bad Debt Amount of Reversal or
                                  oor retrieved
                                                          Bad Debt Provision         before Reversal or              Recovery
                                                                                         Recovery



Separate amount is big at end of the period or not big but other account receivable and doubtful reserves shall be
withdrawn
                                                                                                                              Unit:RMB

        Description          Book balance             Amount of bad debts               Rate(%)                     Reason

Other Receivable
accounts with large                 12,075,436.43                12,075,436.43                        100% Estimated uncollectible
amount individually

Other Receivable
accounts with no large                 766,081.15                   766,081.15                        100% Estimated uncollectible
amount individually

Total                               12,841,517.58                12,841,517.58               --                         --

Notes


                                                                                                                                     97
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(3)Other receivable accounts actually written off in the report period

None

(4)Particulars about the other receivable accounts due from shareholders with 5% or over of the Company’s
shares in the report period

                                                                                                                            Unit:RMB

                                                    Balance at the period end                       Balance in year-begin
                     Name                                         Amount of bad debt                             Amount of bad debt
                                            Book amount                                      Book amount
                                                                       provision                                       provision

                     None




(5)Natures or contents of other receivable accounts with large amount

None

(6)The front 5 units’ information of other account receivable

                                                                                                                            Unit:RMB



                                Relation with the                                                             Portion in total other
            Name                                                 Amount                      Ages
                                    company                                                                      receivables(%)

Export tax rebates          Non-related parties                    30,280,979.11 Within 1 year                                 55.46%

Jiangxi Xuanli String
                            Non-related parties                    11,389,044.60 3-4 years                                     20.86%
Co., Ltd.

Anhui Huapeng Textile
                            Sharing Company                         2,700,000.00 Within 1 year                                  4.94%
 Co., Ltd.

Shenzhen Finance
                            Non-related parties                     1,047,437.10 2-3 years                                      1.92%
Committee

Shenzhen Tianlong
Industry & trade Co.,       Non-related parties                       686,391.83 3-4 years                                      1.26%
Ltd.

             Total                     --                          46,103,852.64              --                               84.44%


(7)Account receivable from Related parties

                                                                                                                            Unit: RMB



               Name                Relation with the company                    Amount                     Portion in total other

                                                                                                                                       98
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                                      receivables(%)

Anhui Huapeng Textile Co.,
                               Sharing Company                                 2,700,000.00                             4.94%
Ltd.

               Total                        --                                 2,700,000.00                             4.94%


(8)Termination of other receivable accounts

                                                                                                                   Unit:RMB



                   Items                         Derecognised amount           Gains/losses associated with the derecognition

None


(9)For securitization on other receivable accounts, please provide the amount of account of asset and liability
formed by continous involving

                                                                                                                   Unit:RMB



                       Items                                                Amount in year-end

Assets:

None

Liability :

None


8.Payment in advance

(1)Age analysis

Unit:RMB

                                  Balance in year-end                                  Balance in year-begin
        Age                                                Proportion                                             Proportion
                                 Amount                                                Amount
                                                            (%)                                                  (%)

Within 1 year                              33,190,113.44            100%                         12,711,147.09              100%

Total                                      33,190,113.44       --                                12,711,147.09         --

Notes to age of payment in advance:

(2) The front 5 units’ information of Payment in advance
                                                                                                                 Unit:RMB




                                                                                                                                99
                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




                               Relation with the
           Name                                               Amount                   Time             Reason of not clearing
                                  company

Hanning Shangpin
                           Supplier                              4,763,592.55 Within 1 year           Not available
Textiles Co., Ltd.

Jiangsu Black Swans
International Trade Co.,   Supplier                              4,049,582.24 Within 1 year           Not available
Ltd.

Zhangjiagang Fumao
                           Supplier                              3,949,446.01 Within 1 year           Not available
Textiles Co., Ltd.

Jiangyin Hupao Textiles
  Printing & Dyeing        Supplier                              3,781,680.26 Within 1 year           Not available
  Co., Ltd.

Rudong Dongmeng
Textiles Printing &        Supplier                              3,410,321.43 Within 1 year           Not available
Dyeing Co., Ltd.

Total                                 --                        19,954,622.49            --                        --

Notes


(3)Prepayment received by shareholding parties holding 5% or above of the Company’s shares in the report
period.

                                                                                                                        Unit:RMB

                                                    Balance in year-end                       Balance in year-begin
                  Name                                         Amount of Bad debt                         Amount of Bad debt
                                             Book Balance                              Book Balance
                                                                    provision                                  provision




(4)Statements on prepayments


       As of June 30, 2013, There was no Prepayment due from shareholders with nore than 5% (including 5%) of

       the voting shares of the company.


9.Inventory

(1)Inventory types

                                                                                                                        Unit:RMB

         Items                             Year-end balance                               Year-beginning balance


                                                                                                                              100
                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                       Book balance      Provision for       Book value         Book balance     Provision for bad    Book value
                                          bad debts                                                    debts

Raw materials           126,680,927.84    5,151,399.63      121,529,528.21       98,017,177.01        4,589,447.60    93,427,729.41

Processing
                         44,956,754.31    2,773,084.10       42,183,670.21       21,914,860.08        2,773,084.10    19,141,775.98
products
Stock goods              55,150,016.72    7,158,573.31       47,991,443.41       34,004,107.39        3,434,000.51    30,570,106.88

Turnover materials          133,102.72                            133,102.72        118,539.22                           118,539.22

Commissioned
                          1,598,561.17    1,598,561.17                            1,598,561.17        1,598,561.17
goods
Total                   228,519,362.76 16,681,618.21        211,837,744.55      155,653,244.87       12,395,093.38   143,258,151.49


(2)Inventory Impairment provision
                                                                                                                          Unit:RMB



                      Book balance at year Amount accounted in Amount Decreased in current period Book balance at period
        Type
                           beginning           current period         Transferred back         Reselling               end

Raw materials                 4,589,447.60               572,537.11            10,585.08                                5,151,399.63

Processing products           2,773,084.10                                                                              2,773,084.10

Stock goods                   3,434,000.51          3,753,525.09               28,318.99              633.30            7,158,573.31

Commissioned
                              1,598,561.17                                                                              1,598,561.17
goods
Total                        12,395,093.38          4,326,062.20               38,904.07              633.30          16,681,618.21


(3)Condition of inventory value decline


              Items              Base of stock value decline       Reason of issuing back to stock      Proportion of issuing back
                                                                  value decline plan of this period amount to the stock balance at
                                                                                                               this period

                              Net realisable value is lower tha
Raw materials
                              n the corresponding cost

                              Net realisable value is lower tha
Stock goods
                              n the corresponding cost

                              Net realisable value is lower tha
Processing products
                              n the corresponding cost

                              Net realisable value is lower tha
Tumover materials
                              n the corresponding cost




                                                                                                                                     101
                                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


10.Other current assets

                                                                                                                                          Unit:RMB

                      Items                                              End of term                               Beginning of term

Structural Deposit                                                                  300,000,000.00

                      Total                                                         300,000,000.00

Notes



                                                                                                     Amount                                Amount
                                                    Amount                                                         Amount
                                                                                                        of                                  of gains
                                                    of money                                                           of
 Name of                   Related                                                        Mode of principle                                and losses
              Relations                 Product     entrusted    Starting     Ending                               provision Estimated
     the                  transactio                                                     remunerat actually                                 realized
                hip                       type         for        date          date                                  for        profit
    trustee               n or not                                                          ion      recovered                               in the
                                                    managem                                                        impairme
                                                                                                     in current                              report
                                                       ent                                                         nt (if any)
                                                                                                      period                                period

Industrial
Bank
                                       6-month                                           Break-eve
Shenzhen                                                        April 26, October
              N/A         No           structural     10,000                             n floated             0            0      75.94              0
Huafu                                                           2013         23, 2013
                                       deposit                                           income
Sub-bran
ch

China
Merchant
s                                      3-month                                           Break-eve
                                                                April 26, July 25,
Shenzhen N/A              No           structural       5,000                            n floated             0            0      29.38              0
                                                                2013         2013
Shenfang                               deposit                                           income
-Sub-bran
ch

China
Merchant
s                                      6-month                                           Break-eve
                                                                April 26, October
Shenzhen N/A              No           structural     15,000                             n floated             0            0      92.22              0
                                                                2013         25, 2013
Shenfang                               deposit                                           income
-Sub-bran
ch

Total                                                 30,000        --           --          --                0                  197.54              0


11.Disposable financial assets

(1)Sellable financial assets

                                                                                                                                          Unit:RMB

                                                                                                                                                  102
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013




                            Items                                         Fair value at end of term            Fair value at beginning of term

Available-for-sale equity instruments                                                       66,931,844.99                         70,159,993.69

Total                                                                                       66,931,844.99                         70,159,993.69


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 6,958,246 shares of the outstanding shares of the
highest A share price of 8.83 yuan in June 30, 2013, ST Fawer of the company holds a total of985,733 shares of
the outstanding shares of the highest A share price of 5.57 yuan in June 30, 2013, .

(2)Long-term liability investment in the sellable financial assets

None

12.Investment held to mature

(1)Investment held to mature

None

(2)Investment hold to mature disposed in the report period hefore mature

None

13.Long-term receivables

None

14.Investment to joint venture and affiliated Enterprises

Unit:RMB

                                        Voting                                End total        End total net     Total current
     Name          Proportion (%)                      End total assets                                                            Net profit
                                    proportion(%)                            liablilities         assets           revenues

I. Joint venture

Shenzhen
Haohao
                             50%                 50%     7,528,329.98          492,566.54       7,035,763.44        907,944.00       556,513.36
Property
Leasing Co.,


                                                                                                                                                 103
                                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Ltd.

Shenzhen Xieli
Automobile                        50%               50%       8,144,436.32      2,362,706.36            5,781,729.96        842,900.00         312,655.46
Co., Ltd.

II. Affiliated enterprise

Shenzhen
Changlianfa
Printing &                    40.25%            40.25%        5,386,790.18      1,118,142.56            4,268,647.62        110,000.00         -84,670.55
dyeing
Company

Jordan
Garment                           35%               35% 11,942,558.43           4,551,029.13            7,391,529.30 10,252,054.47             352,202.53
Factory

Hengshun
(Saipan)
                                  35%               35%
Industry Co.,
Ltd.

There is no significant difference among the significant accounting policy of joint venture and Affiliated
enterprise , the accounting estimate and the company accounting policy, the accounting estimate.


       15. Long term share equity investment.


(1) Long-term equity investments
                                                                                                                                               Unit:RMB

                                                                                                           Explainatio

                                                                                                              n of

                                                                                                           diffirence

                                                                             Shareholdin                    between
                                                                                            Voting right
                              Initial                                             g                        shareholdin
             Accounting                  Original                 Ending                    proportion                               Current      Cash
  Name                      investment               change                   proportion                       g          Devalue
               method                    balance                  Balance                      in the                                devalue      bonus
                               cost                                             in the                     proportion
                                                                                              investee
                                                                               investee                    and voting

                                                                                                              right

                                                                                                           proportion

                                                                                                           in investee

Shenzhen
Jintian
             Cost         14,831,68 14,831,68                   14,831,68                                                14,831,68
Industry                                                                         3.68%          3.68%
             method               1.50       1.50                     1.50                                                    1.50
(Group)
Co., Ltd.

Shenzhen Equity           2,040,102 3,665,118 275,108.0 3,940,226                     50%         50%



                                                                                                                                                          104
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Haohao      method         .73       .59        9          .68
Property
Leasing
Co., Ltd.

Shenzhen
Xieli
            Equity   1,529,483 2,976,192 181,327.7 3,157,519                                      266,654.9
Automobi                                                           50%        50%
            method         .67       .28        0          .98                                           9
le Co.,
Ltd.

Shenzhen
Changlia
nfa         Equity   2,524,500 1,752,210 -34,079.8 1,718,130
                                                                 40.25%    40.25%
Printing    method         .00       .56        9          .67
& dyeing
Company

Jordan
            Equity   7,240,625 2,587,660             2,587,035
Garment                                    -625.73                 35%        35%
            method         .00       .99                   .26
Factory

Hengshun
(Saipan Equity      8,228,350
                                                                              35%
)Industry method          .00
Co., Ltd.

Shenzhen
Tianlong                                                                            It is cance
Industrial Equity    685,000.0                                                      lled in Ap
                                                                   50%
&           method          0                                                       ril 24,
Trading                                                                             2013
Co., Ltd

Shenzhen
Jiafeng     Cost     16,800,00 16,800,00             16,800,00                                    16,800,00
                                                                  10.8%     10.8%
Textile     method        0.00      0.00                  0.00                                         0.00
Co., ltd.

Shenzhen
Guanhua
            Cost     5,491,288 5,491,288             5,491,288                                    5,058,307
Prnting &                                                          45%        45%
            method         .71       .71                   .71                                          .01
dyeing
Co., Ltd.

Shenzhen
Union
            Cost     2,600,000 2,600,000             2,600,000
Develop                                                           2.87%     2.87%
            method         .00       .00                   .00
ment
Group


                                                                                                                         105
                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Co., Ltd

Shenzhen
Xiangjian Cost        160,000.0 160,000.0   160,000.0
                                                          20%        20%
g Trade      method          0         0           0
Co., Ltd.

Shenzhen
Xinfang      Cost     524,000.0 524,000.0   524,000.0
                                                          20%        20%                                 80,000.00
Knitting     method          0         0           0
Co., Ltd.

Hongkon
g Yehui
             Cost     2,392,914 2,392,914   2,392,914
Internatio                                              17.85%    17.85%
             method         .37       .37         .37
nal Co.,
Ltd.

                                                                           Operate
Shenzhen                                                                   and
Dailisi      Cost     532,062.5 2,559,856   2,559,856                      contracte                     802,000.0
                                                          30%
Knitting     method          0        .26         .26                      d by the                              0
Co., Ltd.                                                                  third
                                                                           party

                                                                           Operate
Anhui                                                                      and
Huapeng Cost          25,000,00 25,410,20   25,410,20                      contracte
                                                          50%
Textile      method        0.00      9.50        9.50                      d by the
Co., Ltd.                                                                  third
                                                                           party

Shenzhen
South        Cost     1,500,000 1,500,000   1,500,000
                                                         9.84%     9.84%
Textile      method         .00       .00         .00
Co., Ltd.

Shenzhen
Tongyi       Cost     1,800,000 1,800,000   1,800,000
                                                          18%        18%
Silk Co., method            .00       .00         .00
Ltd.

Shenzhen
Zhongxin
g Fibre                                                                    It is cance
Folds        Cost     1,460,000 1,460,000   1,460,000                      lled in Jan 1,460,000
                                                         100%
Cotton       method         .00       .00         .00                      uary 4,          .00
Clothing                                                                   2013
Ornament
Co., Ltd.


                                                                                                                106
                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                          95,340,00 86,511,13 421,730.1 86,932,86                                       38,416,64            882,000.0
Total             --                                                       --         --         --
                               8.48        2.76          7       2.93                                        3.50                        0


(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.


        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               884,537.00                                         259,346,671.46

1.House, Building                       258,462,134.46               884,537.00                                         259,346,671.46

II.Total accumulated
depreciation
                                        103,700,238.75             3,432,198.33                                         107,132,437.08
accumulated
amortization

1.House, Building                       103,700,238.75             3,432,198.33                                         107,132,437.08

III. Total book value
of investment real                      154,761,895.71             -2,547,661.33                                        152,214,234.38
estate

1.House, Building                       154,761,895.71             -2,547,661.33                                        152,214,234.38

V. Total book value of
                                        154,761,895.71             -2,547,661.33                                        152,214,234.38
investment real estate

1.House, Building                       154,761,895.71             -2,547,661.33                                        152,214,234.38

                                                                                                                            Unit:RMB

                                                                                                      This period

Current amount of depreciation and amortization                                                                           3,432,198.33

Accrual amount of impairment provision for investment properties of
                                                                                                                                  0.00
 thecurrent period


(2)Investment property on fair value basis.




                                                                                                                                    107
                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



As of June 30, 2013,The company has no fair value measurement of investment real estate.


        17. Fixed assets

(1)Fixed assets
Unit:RMB

               Items           Book amount at             Increase at this period          Decrease at this   Book balance in
                               year beginning                                                  period            year -end
1.Total of Original price of
                               1,118,064,106.42                               737,897.44                      1,118,802,003.86
fixed assets

Including :House and
                                 461,341,626.31                                10,670.00                        461,352,296.31
building

  Machine equipment              636,247,943.27                               174,772.73                        636,422,716.00

Transporation Equipment            3,788,554.03                                                                   3,788,554.03

Electricity equipment and
                                  16,685,982.81                               552,454.71                         17,238,437.52
other

                               Book balance at    Current term new      Current term       Decrease at this   Book balance in
                --
                               year beginning          extra              provision            period            year -end

II. Total of Accumulated
                                 168,664,195.59                            36,071,761.51                        204,735,957.10
depreciation

Including :House and
                                  50,729,300.80                             6,565,079.24                         57,294,380.04
building

  Machine equipment              107,161,319.14                            28,475,925.56                        135,637,244.70

Transporation Equipment            1,689,900.95                               210,071.40                          1,899,972.35

Electricity equipment and
                                   9,083,674.70                               820,685.31                          9,904,360.01
other

                               Book balance in                                                                  Balance in
                --                                                              --
                                 year-begin                                                                      year-end

III. Total book value of
                                 949,399,910.83                                 --                              914,066,046.76
Fixed assets

Including :House and
                                 410,612,325.51                                 --                              404,057,916.27
building

  Machine equipment              529,086,624.13                                 --                              500,785,471.30

Transporation Equipment            2,098,653.08                                 --                                1,888,581.68

Electricity equipment and
                                   7,602,308.11                                 --                                7,334,077.51
other

IV. Total of Devalued                235,233.62                                 --                                  235,233.62



                                                                                                                             108
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Provision

Transporation Equipment              235,233.62                       --                                    235,233.62

 Electricity equipment and
                                                                      --
other

V. Total book value of Fixed
                                  949,164,677.21                      --                                913,830,813.14
assets

Including :House and
                                  410,612,325.51                      --                                404,057,916.27
building

  Machine equipment               529,086,624.13                      --                                500,785,471.30

Transporation Equipment             1,863,419.46                      --                                  1,653,348.06

Electricity equipment and
                                    7,602,308.11                      --                                  7,334,077.51
other

(2) Current depreciation is RMB 36,071,761.5 . The issue of fixed assets transferred from construction in progress
original price is RMB0.00.



(2)Fixed assets temporarily in idle status

None

(3)Fixed assets leased by finance

None

(4)Fixed assets leased out on finance

None

(5)Fixed assets held for sale at end of period

None

(6)Fixed asset not licensed yet

    (1)As of June 30, 2013,The company has no temporary situation of idle fixed assets.
    (2)As of June 30, 2013,The company has no lease by financing the fixed assets of the situation.
    (3)As of June 30, 2013,The fixed assets leased through operating leases.
      (4) As of June 30, 2013, The company has no fixed asset for sale.
    (5)The TFT-LCD polarizing film project the carry-over of buildings and structures in fixed assets ,the
company has not yet completed the property certificate,In 2014 is expected to go through.
18.Project under construction
(1)Project under construction


                                                                                                                    109
                                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                                                                                Unit:RMB



                                                         Year-end balance                                      Year-beginning balance
 Items                                      Book            Provision for Book Net value             Book            Provision for Book Net value
                                          balance           devaluation                            balance           devaluation

TFT-LCD polarizing film II project       25,956,664.56                        25,956,664.56        2,160,204.20                              2,160,204.20

Guanhua Building project                 16,561,099.19                        16,561,099.19        9,416,319.19                              9,416,319.19

Total                                    42,517,763.75                        42,517,763.75 11,576,523.39                                11,576,523.39


          2. The variation in constructing the engineering project
                                                                                                                                                Unit:RMB




                                                                                                             Includin
                                                                                                 Capitalis     g:
                         Amount                   Transferr                                      ation of    Current Capitalis
                                       Increase                                                                                                  Balance
                          at year                   ed to       Other     Proportio Progress interest        amount      ation of    Source
  Name         Budget                   at this                                                                                                     in
                         beginnin                  fixed      decrease      n(%)     of work accumul            of       interest of funds
                                        period                                                                                                   year-end
                                g                  assets                                          ated      capitaliz ratio(%)
                                                                                                 balance     ation of
                                                                                                             interest

TFT-LCD

polarizing    1,470,00 2,160,20 23,796,4                                                                                            Collect      25,956,6
                                                                            1.77% 2%
film II       0,000.00          4.20      60.36                                                                                     and Self-       64.56
project

              1,470,00 2,160,20 23,796,4                                                                                                         25,956,6
Total                                                                        --          --                                 --          --
              0,000.00          4.20      60.36                                                                                                     64.56


(3)Impairment Provisions of Construction in progress

                                                                                                                                                Unit:RMB

                                    Balance in           Increase at this          Decreae at this
            Items                                                                                         Balance in year-end            Reason
                                    year-begin                 period                   period

None


(4)Major projects under construction

                        Items                                           Progress work                                       Remark

TFT-LCD polarizing film II project                   2%




                                                                                                                                                         110
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(5)Statement on projects under construction

None

19. Engineering Material

None

20.Liquidation of fixed assets

None

21. Production biological assets

(1)On costs

Unit:RMB

                            Book balance in                                                          Book balance in
          Items                               Increase at this period   Decrease at this period
                               year-begin                                                               year-end

1.Planting industry

2.Animal husbandry and aquaculture

3. Forestry

4.Aquaculture industry


(2)On fair value

                                                                                                             Unit :RMB

                            Book balance in                                                          Book balance in
          Items                               Increase at this period   Decrease at this period
                               year-begin                                                               year-end

1.Planting industry

2.Animal husbandry and aquaculture

3. Forestry

4.Aquaculture industry



Notes




                                                                                                                       111
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


22. Petrolum assets

None


  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

1. Total original price               62,275,410.50                                                            62,275,410.50

Land Use right                        48,765,130.50                                                            48,765,130.50

Proprietary technology                11,825,200.00                                                            11,825,200.00

Software                               1,685,080.00                                                             1,685,080.00

II. Total amount of
                                      16,112,948.81             1,142,195.16                                   17,255,143.97
accumulated

Land Use right                         5,846,995.89               642,677.64                                    6,489,673.53

Proprietary technology                10,248,400.00               394,200.00                                   10,642,600.00

Software                                  17,552.92               105,317.52                                      122,870.44

III. Book value of intangible
                                      46,162,461.69            -1,142,195.16                                   45,020,266.53
assets

Land Use right                        42,918,134.61              -642,677.64                                   42,275,456.97

Proprietary technology                 1,576,800.00              -394,200.00                                    1,182,600.00

Software                               1,667,527.08              -105,317.52                                    1,562,209.56

Land Use right

Proprietary technology

Software

V. Total Book value of
                                      46,162,461.69            -1,142,195.16                                   45,020,266.53
intangible assets

Land Use right                        42,918,134.61              -642,677.64                                   42,275,456.97

Proprietary technology                 1,576,800.00              -394,200.00                                    1,182,600.00

Software                               1,667,527.08              -105,317.52                                    1,562,209.56


The amortization amount is 0 .




                                                                                                                            112
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(2)The current expenditure on development projects

Unit:RMB



                                                                               Decrease at this period
                          Balance in          Increase at this        Accounted into
          Items                                                                                Recognized as        Balance in year-end
                          year-begin                period            current income
                                                                                               intangible assets
                                                                            account

None

R & D expenses of the current period accounted for % of the total coast of R&D.
Intangible asset formed by internal R&D of the period accounted for % of the total book value of intangible assets
Statement on R&D projects, including single account over RMB 1 million basing on evaluation results. Please
 provide the evaluation body and basis of evaluation.

  The current expenditure on non-development projects


        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
                                        2,167,431.21                                                      2,167,431.21     2,167,431.21
Garment Co., Ltd.

Shenzhen Shenfang Import and
                                           82,156.61                                                         82,156.61        82,156.61
Export Co., Ltd.

Shenzhen Shengbo
Ophotoelectric Technology Co.,          9,614,758.55                                                      9,614,758.55
Ltd

Total                                  11,864,346.37                                                     11,864,346.37     2,249,587.82

Description of the impairment of business reputation impairment testing methods and provisioning methods:
goodwill related to the asset group or a combination of asset group signs of impairment exists, according to the
following steps to deal with: first, do not include business reputation asset group or a Group portfolio of assets
impairment testing, calculate recoverable amount, and with the relevant book value compared to the
corresponding recognized devalue losses; and then again with the goodwill asset group or a group of portfolio
asset impairment testing, compare the related assets group or groups of assets portfolio book value (including the
share of the book value of business reputation in part) to its recoverable amount.

        25. Long-term amortization expenses
                                                                                                                           Unit :RMB




                                                                                                                                       113
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


        Items                                                Amount of        Other Decrease    Balance in year       Other
                        Balance in       Increase at
                                                           amortization at                           end
                        year-begin       this period
                                                           current period

Renovation costs           793,628.08         143,160.00        255,514.63                           500,536.64

Other                      211,960.00                            49,630.80                           343,066.01

Total                    1,005,588.08         143,160.00        305,145.43                           843,602.65         --



        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                                                   9,897,444.54                          8,968,381.60

Deductible loss                                                               24,643,956.82                         20,143,883.87

Unattained internal sales profits                                                 465,700.95                           471,234.20

Subtotal                                                                      35,007,102.31                         29,583,499.67

Deferred income tax liability

Increase and decrease of fair value of
                                                                              13,446,127.18                         12,557,914.13
available-for-sale financial assets

Assessed tax-free periods of time caused by
                                                                                   38,919.00                            38,919.00
differences in income

Subtotal                                                                      13,485,046.18                         12,596,833.13

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
                                                                               49,588,508.74                        50,231,656.52
available-for-sale financial assets

Assessed tax-free periods of time caused by
                                                                                   155,676.00                          155,676.00
differences in income

Subtotal                                                                       49,744,184.74                        50,387,332.52



                                                                                                                              114
                                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Neutralizable different items

Provision for bad debts                                                             29,938,971.00                              27,640,575.06

Provision for falling price of inventory                                            16,681,618.21                              12,395,093.38

Impairment of long-term equity investments                                             5,227,896.65                             5,227,896.65

Provision for devaluation of fixed assets                                               235,233.62                                235,233.62

Unattained internal sales profits                                                      3,104,672.96                             3,141,561.31

Deductible loss                                                                    164,293,045.50                             134,292,559.16

Subtotal                                                                           219,481,437.94                             182,932,919.18


(2)Deferred income tax assets and liabilities are presented as net amount after neutralization

Statement on deferred income tax assets and liabilities:
                                                                                                                                  Unit:RMB



                                                                           Temporarily                                       Temporarily
                                             Deferred Income Tax                               Deferred Income Tax
                                                                          Deductable or                                     Deductable or
                                              Assets or Liabilities                            Assets or Liabilities
                  Items                                                Taxable Difference at                           Taxable Difference at
                                              at the End of Report                             at the Beginning of
                                                                         the End of Report                                 the Beginning of
                                                     Period                                       Report Period
                                                                              Period                                        Report Period

Deferred income tax assets:                        35,007,102.31                                     29,583,499.67

Deferred income tax liability:                     13,485,046.18                                     12,596,833.13

27. Provision for depreciation of assets
                                                                                                                                 Unit :RMB



                                                                                       Decreased in this period
                                  Book balance at the     Increase in this                                                     Balance in
             Items                                                                                        Switch
                                    beginning of term          period             Switch back                                   year-end
                                                                                                       cancellation

I.Provision for bad debts               27,640,575.06          2,298,395.94                                                    29,938,971.00

2 Inventory impairment
                                        12,395,093.38          4,326,062.20              38,904.07                633.30       16,681,618.21
provision

5. Long-term equity
investment impairment                   38,416,643.50                                                                          38,416,643.50
provision

7.Fixed asset impairment
                                            235,233.62                                                                            235,233.62
provision

13. Goodwill impairment
                                         2,249,587.82                                                                           2,249,587.82
provision




                                                                                                                                              115
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Total                             80,937,133.38      6,624,458.14          38,904.07          633.30      87,522,054.15

Notes


28. Other non-current assets

None


29. Short-term loan

(1)Categories of short-term loans

                                                                                                             Unit:RMB




                     Items                          Balance in year-end                 Balance in year-Beinning

Guaranteed loan                                                                                           32,153,434.48

Credit loan                                                                                                8,000,000.00

Total                                                                                                     40,153,434.48


Description of short-term loans classifications: The short-term loans are classified by loans.

(2)Short-term loans expired but not repaid


There are no expired outstanding short-term borrowings at the end of the reporting period.

30.Transactional financial liabilities

None


31. .Bills payable

None

        32. Account payable

        (1)Account payable

                                                                                                            Unit :RMB



                     Items                          Balance in year-end                   Balance in year-begin

Within 1 year                                                       136,332,976.84                        94,601,675.99

1-2 years                                                                  734.87                            192,982.78


                                                                                                                     116
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


2-3 years                                                            198,927.77                             248,999.59

3-4 years                                                           4,951,911.88                          5,410,281.92

4-5 years                                                            296,197.01                             293,945.85

Over 5 years                                                         484,812.49                             484,812.49

Total                                                            142,265,560.86                         101,232,698.62
        (2)There was account payable due from shareholders with more than 5% (including 5%) of the voting shares
        of the company

                                                                                                           Unit :RMB



                     Name                           Balance in year-end                  Balance in year-begin

                     None

(3)The description of large-sum accounts payable with the age over 1 year:
None
        33. Advance account
        (1). Advance account

                                                                                                            Unit:RMB



                      Items                          Balance in year-end                Balance in year-begin
Within 1 year                                                       46,408,919.57                        24,962,860.59

1-2 years                                                                  29,040.53                             58,114.06

2-3 years                                                                    975.80                               1,836.56

3-4 years                                                                                                         1,516.80

4-5 years                                                                 639,024.58                        639,024.58

Over 5 years

Total                                                               47,077,960.48                        25,663,352.59



        (2)There was Advance account due from shareholders with More than 5% (including 5%) of the voting
shares of the company.

                                                                                                            Unit:RMB


                      Items                           Balance in year-end                Balance in year-begin

                         None


(3)The description of large-sum accounts payable with the age over 1 year:

 The receipts in advance with the age more than 1 year in the company’s advance receipts is the unsettled


                                                                                                                       117
                                                             Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



sporadic balance with the clients, so there is no large-sum advance receipts.


    34. Payable Employee wage
                                                                                                                  Unit:RMB



          Items         Balance in year-begin   Increase in this period     Payable in this period      Balance in year-end

I.Wages, bonuses,
allowances and                  24,690,993.56             39,585,775.38                46,387,066.02           17,889,702.92
subsidies

II..Employee welfare                                       4,239,710.50                  3,605,709.00             634,001.50

III. Social insurance
                                                           4,698,433.39                  4,698,433.39
premiums

Including:Medical
                                                             431,382.70                    431,382.70
insurance
Basic old-age
                                                           3,275,189.00                  3,275,189.00
insurance premiums

Pension Payment                                              731,280.63                    731,280.63

Unemployment
                                                             149,690.08                    149,690.08
insurance

Work injury
                                                               42,938.58                    42,938.58
insurance

Maternity insurance                                            67,952.40                    67,952.40

Personal accident
insurance

IV. Public reserves
                                    26,376.00              2,005,465.86                  2,150,599.46             -118,757.60
for housing

V.Other                          1,197,351.29              1,419,708.96                  1,279,175.43           1,337,884.82

Including: Union
funds and staff                  1,041,508.99                974,118.96                    868,755.13           1,146,892.82
education fee

Total                           25,914,720.85             51,949,094.09                58,120,983.30           19,742,831.64


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 RMB1,041,508.99, 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.



                                                                                                                              118
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



35. Tax Payable
        Unit:RMB



                         Items                               At end of term                   At beginning of term

VAT                                                                     -76,948,664.23                    -69,531,255.75

Business Tax                                                                  480,502.68                      451,878.76

Enterprise Income tax                                                     7,197,665.18                        -50,931.40

Individual Income tax                                                         279,496.69                      310,104.13

City Construction tax                                                          83,860.92                       83,954.40

House property Tax                                                            178,699.66                      726,735.66

Education subjoin                                                             133,990.51                      134,057.30

Other                                                                          42,478.70                       30,268.12

Total                                                                   -68,551,969.89                    -67,845,188.78

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
                                                                        19,497,570.19                      15,048,681.30
charge

Short term loan interest payable                                                                               42,441.82

Total                                                                   19,497,570.19                      15,091,123.12

Notes


        37. Dividend payable

None
        38. Other payable

        (1)Other payable

                                                                                                              Unit:RMB



                        Name                           Balance in year-end                 Balance in year-begin



                                                                                                                      119
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Within 1 year                                                          20,129,310.54                       56,678,024.44

1-2 years                                                              62,205,159.55                       75,534,500.84

2-3 years                                                               3,980,634.02                        3,427,991.22

3-4 years                                                               7,707,463.68                        2,390,213.29

4-5 years                                                               4,142,968.28                        4,839,692.30

Over 5 years                                                           24,739,539.31                       25,257,294.27

Total                                                                 122,905,075.38                      168,127,716.36

            (2)There were other receivable from the main shareholders of the Company holding nore than 5%

            (including 5%) of the total shares of the Company.
                                                                                                             Unit :RMB



                      Name                              Balance in year-end                 Balance in year-begin

                      None


(3)Statement on large amount other payable accounts due for over one year

Among the payables, large amounts of the other payables are mainly for TFT-LCD polarizer phase I project and e
quipment funds due for over one year.



(4)Statement on large amount other payable accounts

Among the payables, large amounts of the payables are mainly for TFT-LCD polarizer phase I project and equipm
ent funds.




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                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


39.Estimated liabilities

None

40. Non-current liabilities due within one year

None

41.Other current liabilities

None

42. Long-term loan


(1)Long-term loans classifications
                                                                                                                           Unit:RMB



                     Items                                 Year-end balance                        Year-Beginning balance

Credit Loan                                                               200,000,000.00                               200,000,000.00

Total                                                                     200,000,000.00                               200,000,000.00

As regards long-term loans classifications:
     Long-term loans are classified by loans.。The long-term loans at the end of period are the loans enxtended to
the Company by Shenzhen Development Bank Co., Ltd. entrusted by Shenzhen Shenchao Technology Investment
Co., Ltd.. No long-term loans were formed due to the extension of overdue loans.

(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,                                                   40,000,000.0                     40,000,000.0
Development                                   CNY                 4.4%
              2011             2018                                                                    0                             0
Bank

Shenzhen
              November 3, January 24,                                                   40,000,000.0                     40,000,000.0
Development                                   CNY                 4.4%
              2011             2018                                                                    0                             0
Bank

Shenzhen
              November 3, January 24,                                                   23,280,991.7                     23,280,991.7
Development                                   CNY                 4.4%
              2011             2018                                                                    0                             0
Bank


                                                                                                                                    121
                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shenzhen
               November                                                                21,225,294.0              21,225,294.0
Development                      June 24, 2015 CNY                  4.4%
               25,2010                                                                           0                          0
Bank

Shenzhen
                                                                                       21,047,897.9              21,047,897.9
Development July 14,2010 June 24,2015 CNY                           4.4%
                                                                                                 6                          6
Bank

                                                                                       145,554,183.              145,554,183.
Total               --                --             --        --              --                        --
                                                                                                66                         66


43.Bond payable

None


44.Long-term payable

None


        45.Special payable


None


        46.Other Non-current liabilities




Unit: RMB

                         Items                            Year-end Book balance              Year-beginning Book balance

Deferred profits                                                           52,446,210.21                        56,714,022.45

Total                                                                      52,446,210.21                        56,714,022.45

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 company will use 14
years as asset depreciation period for amortization with the corresponding equipment in current period.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 1,428,571.44 ;

(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


                                                                                                                           122
                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


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 1,300,000.00;
(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 RMB500,000.00 and the balance amount of unfinished final amortization is
RMB6,500,000.00;
(4)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 1,258,688.77;
     (5)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 19,7774,950.00;
(6)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. The project has not been checked and accepted;

     (7)In accordance with the Notice of Forwarding the Reply of General Office of State Development and
Reform Commission Regarding Special Plan for Strategic Transformation and Industrialization of Color TV
Industry issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2011) No. 823), State
Development and Reform Commission approved including the project of industrialization of polarizer sheet for
TFT-LCD of Shengbo Optoelectronic Company into the special plan for strategic transformation and
industrialization of color TV industry in 2010 and appropriated national aid of RMB 10,000,000.00 to Shengbo
Optoelectronic Company for the research and development in the process of the project of industrialization and
the purchase of required software and hardware equipment. As of December 31, 2012, RMB 9,000,000.00 was
actually received. According to the Notice of Issuing the Governmental Investment Plan for 2011 Regarding
Demonstration Project of High-tech Industrialization Including Specialized Services Such As Disaster Recovery

                                                                                                                   123
                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


of Financial Information System issued by Shenzhen Development and Reform Commission (Shen Fa Gai (2012)
No. 3), the Company received subsidy of RMB 3,000,000.00 for the project of industrialization of polarizer sheet
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 RMB600, 000.00 and the balance amount of unfinished final
amortization is RMB10,600,000.00;
(8)According to the Notice about the Plan for Supporting the Second Group of Enterprises in Biological,
Internet, New Energy and New Material Industries with Special Development Funds (Shen Fa Gai (2011) No.
1782), the Company received subsidy of RMB 5,000,000.00 for the narrow-width line (line 5) of phase-I project
of polarizer sheet for TFT-LCD on February 15, 2012. The Company planned to amortize the subsidy over 10
years according to the depreciation period of relevant assets;

     (9)According to the Approval of Application of Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
for Project Funds for Shenzhen Polarization Material and Technology Engineering Laboratory (Shen Fa Gai (2012)
No. 1385), Shenzhen Polarization Material and Technology Engineering Laboratory was approved to be
established on the strength of Shengbo Optoelectronic with total project investment of RMB 24,390,000.00. As
approved by Shenzhen Municipal People's Government, this project was included in the plan for supporting the
fourth group of enterprises with special fund for the development of strategic new industries in Shenzhen in 2012
(new material industry). According to the Notice of Issuing the Plan for Supporting the Fourth Group of Enterprises
with Special Fund for Development of Strategic New Industries in Shenzhen in 2012 (Shen Fa Gai (2012) No. 1241),
the Company received subsidy of RMB 5,000,000.00 on December 4, 2012 for purchasing instruments and
equipment and improving existing technological equipment and test conditions. The fund gap will be filled by the
Company through raising funds by itself. The subsidy will be amortized over the depreciation period from the day
when relevant assets get ready for intended use;

     (10) On February 4, 2013, the Company received Shenzhen Futian District special industry development
fund and high technology R&D project fund of RMB 421,000;

     (11) On February 7, 2013, the Company received the third installment of discount of RMB 483,000 as
industrial technological progress prize for 2011 from Shenzhen Finance Commission;

     (12) On May 27, 2013, the Company received financial appropriation of RMB 80,000 from Shenzhen Branch
of State Vault.

47. Stocks capital

                                                                                                                   Unit:RMB



                                                                  Changed(+,-)
                     Balance in                                     Capitalization                               Balance in
                                   Issuance of
                     year-begin                    Bonus shares      of public       Other        Subtotal        year-end
                                    new share
                                                                      reserve

Total of capital
                   336,521,849.00 170,000,000.00                                               170,000,000.00 506,521,849.00
shares

Statement of change in capital shares. Name of CPA and number of verification report shall be provided if capital

                                                                                                                              124
                                                         Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


increasing or decreasing occurred in the report period; as for shareholding limited companies incorporated for less
than three years, only net assetis is required for the years prior to incorporation; for shareholding limited
companies reformed from limited companies shall provide the capital verification at incorporation.

     As approved by the Approval of Private Issue of Shares by Shenzhen Textile (Holding) Co., Ltd. (Zhen Jian
Permit (2013) No. 2 Document) issued by China Securities Regulatory Commission, the Company privately
issued 170 million RMB ordinary shares (par value per share: RMB 1.00). After change, the registered capital and
share capital of the Company are both RMB 506,521,849.00.

48.Stock shares

Not applicable

49.Special reserves

Not applicable

50. Capital reserves

Unit:RMB


             Items            Year-beginning balance   Increase in the current   Decrease in the current   Year-end balance
                                                               period                    period

Share premium                         782,656,413.49            791,751,000.85                              1,574,407,414.34

Other                                  46,256,724.18             11,376,780.42           12,908,141.25         44,725,363.35

Total                                 828,913,137.67            803,127,781.27           12,908,141.25      1,619,132,777.69

Statement on capital reserves:
(1) According to the Approval of Private Issue of Shares by Shenzhen Textile (Holding) Co., Ltd. (Zhen Jian
Permit (2013) No. 2 Document) issued by China Securities Regulatory Commission, registered capital (share
capital) was increased by RMB 170,000,000.00 RMB and capital surplus was increased by RMB 791,751,000.85.
(2) The increase of other capital surplus is the net amount of change of fair value of financial assets available for
sale held by the Company in the report year after deduction of recognized deferred income tax liabilities. The
decrease of other capital surplus is due to the outward transfer of the change of fair value originally accounted for
as capital surplus after sales of financial assets available for sale.

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              36,607,659.49                                                           36,607,659.49

Total                                  36,607,659.49                                                           36,607,659.49


                                                                                                                          125
                                                        Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Statement on surplus reserves. Please state the related resolutions of the Board on capitalizing of reserves, making
up losses, and dividends:

52.Commonly risk reserves

Not applicable

53. Retained profits

Unit:RMB

                                                                                               Extraction or distribution of
                       Items                                    Amount
                                                                                                      the proportion

Before adjustments: Retained profits at the
                                                                             100,969,308.23                 --
period end
After adjustments: Retained profits at the period
                                                                             100,969,308.23                 --
beginning

Add:Net profit belonging to the owner of the
                                                                               -3,642,102.17                --
parent company

Retained profits at the period end                                            97,327,206.06                 --


As regards the details of adjusted the beginning undistributed profits

(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected

beginning undistributed profits are RMB 0.00.

(2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00.

(3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 .

(4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits

are RMB 0.00.

(5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 .
Statement on retained profit: for companies issued their securities for the first time, if the accumulated profit
before the issuing is shared by the new and existing shareholders as approved by the shareholders’ meeting, shall
be described particularly; if the accumulated profit before the issuing is shared only by existing shareholders as
approved by the shareholders’ meeting, the Company shall provide the details of dividend payable to the existing
shareholders as audited by CPA.

      54. Business income, Business cost
     (1)Business income, Business cost


                                                                                                                 Unit:RMB


                                                                                                                         126
                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                   Items                          Amount of current period                   Amount of previous period

Income from Business income                                        574,519,173.10                              373,473,854.27

Other Business income                                                  1,828,836.96                               1,959,137.64

Total                                                              527,913,970.56                              336,576,764.17


(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              231,978,740.01          230,103,752.45           213,519,544.58        212,411,433.49

Manufacturing                           300,083,729.57          284,719,485.05           120,665,885.03         110,805,119.98

Property management, leasing             42,456,703.52           11,261,896.10             39,288,424.66         11,402,312.40

Total                                   574,519,173.10          526,085,133.60           373,473,854.27        334,618,865.87


(3)Main business(Production)


                                                                                                             Unit :RMB


                                            Amount of current period                        Amount of previous period
               Name
                                    Business income         Business cost             Business income        Business cost

Property and rental income               42,456,703.52           11,261,896.10             39,288,424.66         11,402,312.40

Textile income                           10,150,142.39            8,055,670.24             22,170,267.10        17,774,189.92

Polaroid income                         289,933,587.18          276,663,814.81             98,495,617.93        93,030,930.06

Trade income                            231,978,740.01          230,103,752.45           213,519,544.58        212,411,433.49

Total                                   574,519,173.10          526,085,133.60           373,473,854.27        334,618,865.87


(4)Main Business(Area)


                                                                                                           Unit :RMB


                                            Amount of current period                        Amount of previous period
               Name
                                    Business income         Business cost             Business income        Business cost

Domestic                                153,551,297.76          106,912,591.58           122,758,230.83         91,917,341.83

Oversea                                 420,967,875.34          419,172,542.02           250,715,623.44        242,701,524.04

Total                                   574,519,173.10          526,085,133.60           373,473,854.27        334,618,865.87


    (5)Operating income from top five clients


                                                                                                                             127
                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                                 Unit :RMB


                 Name               Business Income                                  Proportion(%)

Shenzhen Chuangying Textiles
                                               230,476,913.27                                                    39.99%
Co., Ltd.

Shenzhen CSOT                                      132,417,211.99                                                22.98%

Fuhaipeng Electronic Technology
                                                    17,247,968.58                                                2.99%
Co., Ltd.

Longteng Optoelectrnoics                            13,804,161.56                                                2.39%

Shenchao Optoelectrnoics
                                                    12,971,646.68                                                2.25%
(Shenzhen) Co., Ltd.

Total                                          406,917,902.08                                                    70.6%

Notes


55.Contract revenue

None

56.     Business tax and subjoin
                                                                                                           Unit :RMB



                  Items                                     Same period of the                  Standard
                                   Report period              previous year

Business tax                             2,415,244.05               2,068,217.07

Urban construction tax                     207,575.29                 412,291.09

Education surcharge                        201,206.64                 298,031.61

House tax                                1,467,127.34                 865,569.69

Other                                      272,303.36                 289,110.94

Total                                    4,563,456.68               3,933,220.40                     --

Notes


57. Sales expenses

                                                                                                 Unit:RMB


                     Items                Amount of current period                   Amount of previous period

Wage                                                             1,088,745.06                              1,144,200.08

Welfare                                                             49,887.42                                 6,527.10

Exhibition fee                                                      81,001.00                               231,090.90



                                                                                                                     128
                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Office expenses                                             12,788.40                               12,139.60

Travel expenses                                           179,468.78                               252,076.74

Business entertainment                                    364,060.13                               250,181.78

Automobile fee                                              57,093.35                               72,545.90

Transportation changes                                   1,193,012.10                            1,095,897.30

Sales expenses                                            802,280.38                               450,927.98

Other                                                     268,389.58                               307,785.86

Total                                                    4,096,726.20                            3,823,373.24



58. Administrative expenses

                                                                                        Unit:RMB


                   Items             Amount of current period               Amount of previous period

Wage                                                    11,281,015.87                           12,749,046.13

Welfare                                                  1,309,770.93                            1,058,182.92

Union funds                                               330,465.48                               319,021.36

Employee education expenses                               181,390.76                               255,066.16

Housing fund                                             1,015,456.05                              965,662.52

Social security                                          1,903,677.54                            1,499,375.77

Labor protection costs                                    149,772.70                               525,663.30

Tax                                                       606,701.71                               472,143.07

Insurance expenses                                        222,968.86                               211,463.69

Depreciation of fixed assets                             2,540,541.61                            2,509,566.70

Amortization of intangible assets                        1,142,195.16                            1,036,877.64

Amortization of long-term deferred
                                                            34,490.82
expenses

Traffic fee                                               569,461.95                               763,235.04

Office expenses                                          1,220,878.19                            1,077,727.94

Postal fees                                               331,497.44                               216,691.30

R& D costs                                             45,107,185.59                            22,133,249.02

Repairs fees                                              334,968.20                               163,515.65

Water and electricity                                     354,467.97                               271,636.45

Auto expenses                                             416,861.90                               265,215.72

Travel Expenses                                           439,430.63                               561,408.35




                                                                                                           129
                                                             Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Agency expenses                                                        2,107,024.15                             1,075,320.00

Entertainment expenses                                                   966,110.60                               762,922.50

Low consumables amortization                                              97,252.30                               229,573.00

Transport fees                                                           373,783.60                               410,585.24

Other                                                                  2,676,482.62                             3,392,150.03

Total                                                                 75,713,852.63                            52,925,299.50

59. Financial Expenses


                                                                                                   Unit :RMB


                    Items                          Amount of current period                Amount of previous period

Interest expenses                                                      5,172,249.94                             4,954,444.45

Interest income                                                       -7,399,019.07                            -3,604,062.09

Exchange loss                                                        -12,010,728.31                              -603,089.11

Fees and other                                                           308,249.87                               323,127.77

Total                                                                -13,929,247.57                             1,070,421.02

60.Gains from changes in fair value
Notes

61. Investment income

(1)Investment income
                                                                                                                  Unit:RMB

                         Items                           Amount of current period          Amount of previous period
Incomes from disposal of Long-term cost
                                                                          2,017,830.85                          1,847,932.57
investment

Incomes from disposal of long-term equity
                                                                              421,730.17                          299,087.54
investment

Investment income from financial assets sales                            19,468,746.45                          2,376,792.47

Total                                                                    21,908,307.47                          4,523,812.58


(2)Long-term equity investment income by costing

                                                                                                                  Unit:RMB

                                        Amount of current period   Amount of previous
                  Name                                                                     Reason to increase or decrease
                                                                         period

Shenzhen Dailishi Underwear Co., Ltd.                 400,000.00              405,000.00

Anhui Huapeng Textile Co., Ltd.                       900,000.00              900,000.00




                                                                                                                            130
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shenzhen Xinfang Knitting Co., Ltd.                        80,000.00

Shenzhen Tongyi Silk Co., Ltd.                            637,830.85             542,932.57

Total                                                   2,017,830.85           1,847,932.57                      --


(3)Long term equity investment confirmed by equity ethod include:
                                                                                                                               Unit:RMB

                 Name                       Amount of current period   Amount of previous          Reason to increase or decrease
                                                                              period

Shenzhen Haohao Property Leasing
                                                          275,108.09             259,352.31
Co., Ltd.

Shenzhen Xieli Automobile Co., Ltd.                       181,327.70             107,335.05

Shenzhen Changlianfa Printing and
                                                          -34,079.89              -11,049.10
dyeing Company

Jordan Garment Factory                                       -625.73              -56,550.72

Total                                                     421,730.17             299,087.54                      --

Statement on investment gains, please state whether or not there are material constrains on retrieving of investment gains.


 In the report period, the company has no big restriction on the investment earning repatriation.


        62. Loss of assets impairment
                                                                                                                           Unit :RMB

                             Items                              Amount of current period             Amount of previous period

I .Losses for bad debts                                                          2,280,892.48                             2,322,618.17

II. Losses for falling price of inventory                                        4,304,661.60                                  89,627.81

Total                                                                            6,585,554.08                             2,412,245.98



        63. Non-operating income

        (1)Non-operating income

                                                                                                                           Unit :RMB

                                                Amount of current period Amount of previous period             The amount of
                     Items                                                                                  non-operating gains &
                                                                                                                      lossed

Total income from liquidation of
                                                                                               41,000.00
non-current assets

Including:Income from liquidation of fixed
                                                                                               41,000.00
asset

Government Subsidy                                          5,645,436.24                  4,692,336.68


                                                                                                                                     131
                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Other income                                                  331,182.75                           10,000.00

Total                                                        5,976,618.99                    4,743,336.68

        (2)Governmental subsidy details


                                                                                                               Unit:RMB


                                         Amount of current period      Amount of previous
                Items                                                                                             Notes
                                                                              period

Subsidy for implementation of
standardization strategy from                                                          40,000.00
Shenzhen Market Administration

Subsidy for purchasing special
equipment for environmental
                                                                                         524.44
protection in Longgang District,
Shenzhen

Amortization of governmental
                                                     3,954,990.00                3,954,990.00
subsidy for R&D

Amortization of funds supporting
demonstration projects of high                         100,000.00                  100,000.00
technology industrialization

Amortization of national aid for
special new-type panel display                         500,000.00                  500,000.00
industrialization project

Amortization of loan discount
appropriated by Shenzhen Treasury                       96,822.24                      96,822.24
Board

Special subsidy for industrial
development of Futian District,                        101,400.00
Shenzhen

Subsidy for strategic emerging
industries from Shenzhen Finance                       240,000.00
Commission

Special subsidy and booth subsidy
for the development of small and                        52,224.00
medium enterprises in Shenzhen

Amortization of subsidy for the
industrialization project of polarizer                 600,000.00
for TFT-LCD

Total                                                5,645,436.24                4,692,336.68                       --

Notes


                                                                                                                                 132
                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


    64. Non-Operation expense

                                                                                                                  Unit:RMB

                                                Amount of current period    Amount of previous           The amount of
                       Items                                                      period              non-operating gains &
                                                                                                             lossed

Total of non-current asset Disposition loss                                                9,996.59

Including: Disposition loss of Fixed assets                                                9,996.59

Donation expenses                                              10,000.00

Fine Expenses                                                                                 50.00

Total                                                          10,000.00                  10,046.59

Notes

    65.   Income tax expenses
                                                                                                                  Unit:RMB

                               Items                           Amount of current period         Amount of previous period

The current income tax calculated by the tax law and the
                                                                               4,357,673.11                     2,862,552.42
relevant regulations

Adjustment of Deferred income tax                                             -1,436,947.00                      -177,539.08

Total                                                                          2,920,726.11                     2,685,013.34

66. Calculation of Basic earnings per share and Diluted earnings 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 the first half of 2013=-3,642,102.17/
   (336,521,849+170,000,000*3/6) = -0.01 RMB/Share
     Basic earnings per share belonging to common stock shareholder deducted non-recurring gains and losses in
     the first half of 2013=-24,203,781.00/(336,521,849+170,000,000*3/6) = -0.06 RMB/Share
     Dilute earning per share belonging to common stock shareholder in the first half of 2013=-3,642,102.17/
   (336,521,849+170,000,000*3/6) = -0.01 RMB/Share
     Dilute earning per share belonging to common stock shareholder deducted non-recurring gains and losses in
   the first half of 2013=-24,203,781.00/(336,521,849+170,000,000*3/6) = -0.06 RMB/Share


  67. Other comprehensive income


                                                                                                                  Unit:RMB

                               Items                           Amount of current period         Amount of previous period


                                                                                                                            133
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


1.Loss amount produced by sellable financial assets                                 13,078,555.91                  13,462,017.70

    Less:Deduct: income tax infection produced by sellable
                                                                                     5,190,926.80                   3,506,504.42
financial assets

 Net amount transferred into profit and loss at current period
that reckoned into other comprehensive income at former                              9,418,989.94                     695,250.00
period

                            Subtotal                                                -1,531,360.83                   9,260,263.28

                             Total                                                  -1,531,360.83                   9,260,263.28

Notes


68. Notes Cash flow statement


1. Other cash received from business operation
                                                                                                                      Unit:RMB

                                     Items                                                          Amount

Government Subsidy                                                                                                  1,619,624.00

The customs returned to the customs deposit                                                                        1,426,828.04
Bank deposit interest income and other                                                                              9,661,150.07

                                     Total                                                                         12,957,008.71

Notes
             (2)Other cash paid for business activities




                                                                                                                      Unit:RMB

                                     Items                                                          Amount

Research & development expenses                                                                                     2,108,814.14

Office expenses                                                                                                     1,228,066.59

Business hospitality                                                                                                1,330,170.73

Transportation expnses                                                                                                615,366.85

Travel fee                                                                                                            618,899.41

Transporation expenses                                                                                              1,566,795.70

Agency Fee                                                                                                          2,107,024.15

Post and Communication fee                                                                                            337,097.44

Insurance premium                                                                                                     222,968.86

Water and electricity fee                                                                                             364,025.63

Repair fee                                                                                                            335,118.20


                                                                                                                              134
                                                                 Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Other                                                                                                                 1,156,253.66

                                     Total                                                                           11,990,601.36

Notes


(3)Cash received related to other investment activities
None


       (4)Cash paid related to other investment activities


                                                                                                  Unit:RMB


                                    Items                                                           Amount

Stucture deposit                                                                                                    300,000,000.00

                                     Total                                                                          300,000,000.00

Notes


(5)Cash received related to financing activities

                                                                                                     Unit: RMB


                                    Items                                                           Amount

Deposited in the fixed deposit account                                                                                 563,172.00

                                     Total                                                                             563,172.00

Notes


(6)Cash paid related to financing activities

                                                                                                                      Unit :RMB

                                    Items                                                           Amount

Non-public issuing expenses                                                                                            775,000.00

                                     Total                                                                             775,000.00

Notes


69. Supplement Information for cash flow statement

(1)Supplement Information for cash flow statement
                                                                                                                       Unit:RMB

                   Supplement Information                         Amount of current period         Amount of previous period

I. Adjusting net profit to cash flow from operating activities               --                                --

Net profit                                                                        -3,642,102.17                     -18,736,243.07


                                                                                                                               135
                                                                Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Add: Impairment loss provision of assets                                           6,585,554.08                      2,412,245.98

Depreciation of fixed assets, oil and gas assets and
                                                                                  38,988,535.82                     22,603,708.56
consumable biological assets

Amortization of intangible assets                                                  1,167,317.88                      1,062,000.36

Amortization of Long-term deferred expenses                                         255,514.63                         280,408.62

Loss on disposal of fixed assets, intangible assets and other
                                                                                                                        -41,000.00
long-term deferred assets

Loss from Fixed assets Discard                                                                                           3,125.23

Financial cost                                                                     5,172,249.94                      1,596,608.65

Loss on investment                                                               -21,908,307.47                      -4,523,812.58

Decrease of deferred income tax assets                                            -5,423,602.64                       -177,539.08

Increased of deferred income tax liabilities                                        888,213.05

Decrease of inventories                                                          -68,579,593.06                      -7,623,989.90

Decease of operating receivables                                                 -61,865,097.34                     -22,975,805.51

Increased of operating Payable                                                    50,846,462.75                     10,062,183.03

Net cash flows arising from operating activities                                 -57,514,854.53                     -16,058,109.71

II. Significant investment and financing activities that
                                                                            --                                --
without cash flows:

III. Net increase of cash and cash equivalents                              --                                --

Ending balance of cash                                                           739,281,617.95                    349,939,787.89

Less: Beginning balance of cash equivalents                                      227,189,754.43                    463,817,642.79

Net increase of cash and cash equivalents                                        512,091,863.52                    -113,877,854.90


(2)There is no information on acquiring or disposing subsidiary company and other business unit at this period.

None

(3)Composition of cash and cash equivalents

                                                                                                                       Unit:RMB

                            Items                                    Year-end balance              Year-beginning balance

I. Cash                                                                          739,281,617.95                    227,189,754.43

Of which: Cash in stock                                                             104,026.78                         105,473.78

Bank savings could be used at any time                                           739,149,974.66                    205,275,803.31

Other monetary capital could be used at any time                                      27,616.51                     21,808,477.34

III. Balance of cash and cash equivalents at the period end                      739,281,617.95                    227,189,754.43

Statement on supplementary information of cash flow Statements

                                                                                                                               136
                                                                           Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(1)Relavant Situation without the acquistition disposal of subsidiaries and other business units.
(2)Cash and cash equivalents do not include the cash and cash equivalents whose use by the parent company or
subsidiaries of the Group is restricted.



70. .Notes to statement of change in owners’ equity

None

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

     Notes
(IX) Related parties and related-party transactions
1. Parent company information of the enterprise


                                                                                                  The parent                      The
                                                                                                                The parent
                                                                                                   company                      ultimate
                                                         Legal                                                   company                     Organizati
                 Related                  Registered                                Registered      of the                     controlling
  Name                           Type                  representat         Nature                                 of the                     on Code
                 parties                   address                                    capital     Company's                     party of
                                                             ive                                                Company’
                                                                                                  shareholdi                          the
                                                                                                                s vote ratio
                                                                                                   ng ratio                    Company

                             State-owne Shenzhen                                                                               State-owne
                             d                                                                                                 d Assets
                             enterprise                                                                                        Supervisio
Shenzhen
             Controling                                                                                                        n and
Investment                                             Fan                          5600                                                     76756642-
             shareholde                                               Investment                     46.21%        49.39% Administra
Holdings                                               Mingchun                     million                                                  1
             r                                                                                                                 tion
Co.,Ltd.
                                                                                                                               Commissi
                                                                                                                               on of
                                                                                                                               Shenzhen

Parent company information of the company
The company is authorized and approved to be state-owned independent company by Shenzhen Government, and
it Executes financial contributor function on state-owned enterprise within authorization scope.
     2.Particulars of the subsidiaries

                  Related                    Registered            Legal                      Registered        The             The         Organizatio
   Name                            Type                                         Nature
                   parties                     address        representati                      capital      subsidiaries subsidiaries n Code


                                                                                                                                                       137
                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                      ve                                      of the       of the
                                                                                            Company's Company’s
                                                                                            shareholdin   vote ratio
                                                                                              g ratio

                                                               Fabrics,
                                                               bedding,
Shenzhen                                                       clothing,
Jinlan                                                         textiles raw
              wholly       Limited
Decorative                                        Zhang        materials      4,000,000.0
              owned        Liability   Shenzhen                                                    90%         100% 192172332
Articles                                          Hong         processing     0
              subsidiary   Company
Industrial                                                     manufacturi
Co., Ltd.                                                      ng,
                                                               wholesale
                                                               and retail.

                                                               Domestic
Shenzhen
              wholly       Limited                             commerce,
Lisi                                                                          2,360,000.0
              owned        Liability   Shenzhen   Zhu Jun      materials                        90.68%         100% 192180180
Industrial                                                                    0
              subsidiary   Company                             supply and
Co., Ltd.
                                                               sales

                                                               Accommod
Shenzhen      wholly       Limited                             ation,
                                                                              10,005,300.
Huaqiang      owned        Liability   Shenzhen   Zhu Jun      restaurants,                        95%         100% 19223330X
                                                                              00
Hotel         subsidiary   Company                             business
                                                               center;

Shenfang
              wholly       Limited
Property                                                       Property       1,600,000.0
              owned        Liability   Shenzhen   Gao Goushi                                    93.75%         100% 192225051
Managemen                                                      Managemen 0
              subsidiary   Company
t Co., Ltd.                                                    t

                                                               Production
Shenzhen
                                                               of fully
Beauty        wholly       Limited
                                                  Zhang        electronic     25,000,000.
Century       owned        Liability   Shenzhen                                                  100%          100% 741231236
                                                  Hong         jacquard       00
Garment       subsidiary   Company
                                                               knitting
Co., Ltd.
                                                               whole shape

Shenzhen
Shenfang      wholly       Limited                             Operating
                                                  Zhang                       5,000,000.0
Import &      owned        Liability   Shenhen                 import and                        100%          100% 728563236
                                                  Hong                        0
export Co., subsidiary     Company                             export
Ltd.                                                           business

Shenzhen      wholly       Limited                             Operating
                                                                              300,000,000
Shengbo       owned        Liability   Shenzhen   Zhu Jun      import and                        100%          100% 618877007
                                                                              .00
Ophotoelect subsidiary     Company                             export


                                                                                                                            138
                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


ric                                                                    business
Technology
Co., Ltd

Shengtou       wholly                                    Zhu           Production
                                                                                      HKD10,000
(HK)Co.,     owned                      HK             Meizhu, Liu and sales of                          100%            100% ---
                                                                                      .00
Ltd.           subsidiary                                Honglei       polarizer

3. Joint-venture and affiliated enterprises information of the company




                                                Legal                                       Share
  Invested      Enterprise Registration                   Business      Registered                    vote right    Affiliation Organizatio
                                          representati                                  holding
 unit name         type        Place                      character       capital                     ratio(%)       relation         n code
                                                 ve                                    ratio(%)

I. Joint enterprise

Shenzhen
Haohao
                                                                       HKD10                                       Joint
Property                    Shenzhen      Feng Junbin Service                                   50%         50%                 61881295-9
                                                                       million                                     enterprise
Leasing        Limited
Co., Ltd.      Company

Shenzhen
Xieli                                                    Manufacturi                                               Joint
                            Shenzhen      Ye Yongling                  3.12 million             50%         50%                 618801838
Automobile Limited                                       ng                                                        enterprise
Co., Ltd       Company

II. Affiliated enterprise

Shenzhen
Changlianfa
                                                                                                                   Affiliated
Printing and                Shenzhen      Zhu Meizhu Serivice          6.47 million          40.25%      40.25%                 618865073
                                                                                                                   enterprise
dyeing Co., Limited
Ltd.           Company

Jordan                      Jordan
                                          Chen           Manufacturi USD1                                          Affiliated
Garment        Limited                                                                          35%         35%
                                          Wenxian        ng            million                                     enterprise
Factory        Company

Hengshun                    Saipan
(Saipan)                                                 Manufacturi USD6.96                                       Affiliated
                                          ---                                                   35%         35%
Industry       Limited                                   ng            million                                     enterprise
Co., Ltd.      Company



4.Other Related parties information of the enterprise

           Other Related parties name            Relation of other Related parties with the
                                                                                                            Organization code
                                                                   company



                                                                                                                                               139
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shenzhen Shenchao Technology
                                               Subject to the same party controls           733069849
Investment Co., Ltd.

                                               The parent company's chairman is the vice
Shenzhen CSOT                                  chairman of the company                      697136927



Shenzhen Tianma Microelectronics Co.,          The Company director and general
                                                                                            19218344-5
Ltd.                                           manager is the company director

Shenzhen Xiangjiang Trade Co., Ltd.            Sharing Company                              591877516

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)Related transactions on sale goods and receiving services

                                                                                                                        Unit:RMB

                                                                         Amount in current period        Amount in last period
                         Content of related     Pricing principle of
   Related parties                                                                          Proportio                     Proportio
                             transaction        related transactions       Amount                         Amount
                                                                                            n(%)                        n(%)

Shenzhen CSOT          Sales polarizer sheet    Agreement price            132,417,211.99     45.67%

Shenzhen Tianma
Microelectronics       Sales polarizer sheet    Agreement price              2,065,075.16      0.71%       2,488,495.31
Co., Ltd.

Shenzhen
Investment Holdings Sales textiles              Market price                                                  48,000.00      0.35%
Co.,Ltd.

(2)Associated trusteeship.
In the report period,The company has no associated trusteeship.

(3)Leaseing

In the report period,The company has no associated lease.

(4)Associated guarantee
The report period, The company has no associated guarantee

(5)Associated contracting.

       None




                                                                                                                                 140
                                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(6)Related transference and liabilities recombination of related parties .

      None

(7)Other related transfernce

      For the construction of the project of polarizer for TFT-LCD, the Company signed Entrusted Loan Contract
with Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Jiangsu Building Sub-branch of
Shenzhen Development Bank Co., Ltd. in 2010. According to the contract, Shenzhen Shenchao Technology
Investment Co., Ltd. entrusted Shenzhen Jiangsu Building Sub-branch of Shenzhen Development Bank Co., Ltd.
to extend a loan of RMB 200 million to the Company. The term of the loan is 108 months from the day when the
first installment of entrusted loan is transferred to the account of the Company. The interest rate of the entrusted
loan is the rate of commercial loans with a term of 5 years quoted by People's Bank of China minus 2%. In case of
adjustment of such commercial loan rate, the rate of commercial loans with a term of 5 years after adjustment
minus 2% shall apply as interest rate of entrusted loan from the first day of the next month after the adjustment of
basic interest rate. As of June 30, 2013, The Company actually received a loan of RMB 200 million.
      6. Payables and receivables of the related party
Listed company related party fund
                                                                                                                           Unit:RMB

                                                                  Amount at year end                  Amount at year beginning
          Name                    Related party
                                                       Balance of Book Bad debt Provision Balance of Book Bad debt Provision

Account receivable         Shenzhen CSOT                   53,981,726.39         2,699,086.32        47,273,531.25       2,363,676.56

Account receivable         Shenzhen Tianma
                           Microelectronics Co.,              919,802.90               45,990.15      1,234,396.37          61,719.82
                           Ltd.

                           Anhui Huapeng
Other Account receivable                                    2,700,000.00          135,000.00          1,800,000.00          90,000.00
                           Textile Company

The listed company Payables of the related party

                                                                                                           Unit :RMB

                Name                              Related party               Amount at year end            Amount at year beginning

                                       Shenzhen Dailishi Underwear
Other payable                                                                                 144,506.80
                                       Co., Ltd.

                                       Shenzhen Xinfang Knitting
Other payable                                                                                 216,789.85                   216,789.85
                                       Co., Ltd.

                                       Shenzhen Xiangjiang Trade
Other payable                                                                                 380,000.00                   380,000.00
                                       Co., Ltd.

                                       Shenzhen Changlianfa
Other payable                                                                                 701,964.46                   727,224.46
                                       Printing and dyeing Co., Ltd.

                                       Shenzhen Hengsheng
Other payable                                                                               1,367,940.67                 1,367,940.67
                                       Investment Co., Ltd.



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                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                       Shenzhen Haohao Property
Other payable                                                                              3,778,868.07                   3,528,868.07
                                       Leasing Co., Ltd.

                                       Shenzhen Shenchao
Interest payable                       Technology Investment Co.,                         19,497,570.19                  15,048,681.30
                                       Ltd.


(X). Share payment
Not applicable。
(XI). Subsequent events
None


(XII). . Commitment events.

1.Important commitment events

As of June 30, 2013,the Company has no important commitment events.

2. Commitment information guaranteed at the former period

As of June 30, 2013, the company has no commitment information guaranteed at the former period.

(XIII). Post-balance-sheet events

None

(XIV). Other Important events


1. Asset and liability related to measurement of fair value

                                                                                                                            Unit:RMB

                                                      Gains and losses      Accumulative
                                                                                                   Provision for
                               Amount at the         from change of fair change of fair value                        Amount at the end
           Items                                                                                impairment made in
                             beginning of period      value in current     accounted for as                              of period
                                                                                                  current period
                                                           period        rights and interests

Financial assets

3.Trading financial assets        70,159,993.69                                -3,228,148.70                             66,931,844.99

Subtotal of Financial
                                  70,159,993.69                                -3,228,148.70                             66,931,844.99
assets

Total                             70,159,993.69                                -3,228,148.70                             66,931,844.99

Financial liability                           0.00                                                                                   0.00




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  XV. Notes s of main items in financial reports of parent company


        1.Account receivable


(1)Account receivable
                                                                                                              Unit:RMB

                                                    Year-end balance                                      Year-beginning balance

                                   Book Balance                  Provision for bad debts         Book Balance                 Provision for bad debts
            Type
                                                    Propo
                                                    rtion                          Proporti                   Proporti                            Proporti
                                   Amount            %             Amount             on%       Amount           on%            Amount               on%

Receivables provided bad debt provision in group

Account age group                  137,901.45 100%                      6,895.08           5%      1,600.00      100%                     80.00        5%

Subtotal of group                  137,901.45 100%                      6,895.08           5%      1,600.00      100%                     80.00        5%

Total                              137,901.45 --                        6,895.08 --                1,600.00 --                            80.00 --

Remarks on categories of receivable account
Receivable accounts with large amount individually and bad debt provisions were provided at end of period
□ Applicable √ Not Applicable
Using age methods to provision for bad debts of account receivable in group:
√Applicable □Not Applicable
                                                                                                                                              Unit:RMB

                                     Year-end balance                                                 Year-beginning balance

                          Book Balance                                                           Book Balance
     Age                                                     Provision for bad                                                        Provision for bad
                                               Proporti                                                             Proporti
                                                                      debts                                                                debts
                        Amount                      on%                                         Amount                   on%

Within 1 year

Including:     --                             --           --                        --                            --           --

                                  137,901.45        100%                 6,895.08                        1,600.00        100%                        80.00

Total                             137,901.45         --                  6,895.08                        1,600.00        --                          80.00

Using percentage balance method of provision for bad debts of account receivable in group:
□Applicable √not Applicable
Using other methods to provision for bad debts of account receivable in group:
□Applicable √not Applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
□Applicable √not Applicable




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                                                               Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


(2)Switch back or regain of the account receivable in the reporting period

None

(3) Account receivable that needed to actually cancelled after verification at this reporting period

N/A


2. Other receivables

(1)Other receivables

                                                                                                                        Unit:RMB

                                             Year-end balance                                    Year-beginning

                                                                                                               Provision for bad
                                   Book balance            Provision for bad debts     Book balance
                                                                                                                     debts
        Classification
                                                                            Propo                    Propo                    Propo
                                                 Proport
                                  Amount                      Amount        rtion(    Amount         rtion(     Amount        rtion(
                                                 ion(%)
                                                                               %)                       %)                       %)

Other Receivables with
major individual amount and                                                                          33.97
                                 12,075,436.43 43.79%       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

                                                  55.08                     27.29                    65.15                    19.62
Account age group                15,191,120.70               4,145,749.31            23,155,396.35             4,543,963.09
                                                     %                          %                        %                         %

                                                  55.08                     27.29                    65.15                    19.62
Subtotal of group                15,191,120.70               4,145,749.31            23,155,396.35             4,543,963.09
                                                     %                          %                        %                         %

Other Account receivable
with minor individual
                                    311,486.35 1.13%           311,486.35 100%          311,486.35 0.88%         311,486.35 100%
amount but bad debt
provision is provided

Total                            27,578,043.48 --           16,532,672.09 --         35,542,319.13 --         16,930,885.87 --


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

                                                                                                                                   144
                                                                      Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


based on specific identification method.


Other receivable accounts with major amount but on which bad debt provisions are provided individually at end
of period
√Applicable □not Applicable
                                                                                                                                       Unit:RMB

            Name                 Book balance                      Bad debts           Provision proportion%           Reason of provision

Jiangxi Xuanli String
                                      11,389,044.60                    11,389,044.60                      100% Unable to recover
Co., Ltd.

Shenzhen Tianlong
Industry and trading Co.,                686,391.83                       686,391.83                      100% Unable to recover
Ltd.

Total                                 12,075,436.43                    12,075,436.43             --                               --

Using age methods to provision for bad debts of account receivable in group:
√Applicable □not Applicable


                                                                                                                                       Unit:RMB

                                     Year-end balance                                            Year-beginning balance

                             Book Balance                                                 Book Balance
        Age                                                  Provision for bad                                              Provision for bad
                                             Proporti                                                     Proporti
                                                                  debts                                                          debts
                            Amount                on%                                   Amount                 on%

Within 1 year

Including:        --                        --         --                        --                      --           --

                              7,619,691.20                          429,034.56            15,438,966.85 66.68%                         771,948.34

Subtotal of
                              7,619,691.20                          429,034.56            15,438,966.85 66.68%                         771,948.34
Withn 1 year

1-2 years                      160,600.00                             16,060.00              160,600.00        0.69%                    16,060.00

2-3 years                       23,800.00                              7,140.00              109,800.00        0.47%                    32,940.00

Over 3 years                  7,387,029.50                         3,693,514.75            7,446,029.50 32.16%                     3,723,014.75

3-4 years                     7,377,029.50                         3,688,514.75            7,436,029.50                            3,718,014.75

Over 5 years                    10,000.00                              5,000.00               10,000.00                                  5,000.00



Total                        15,191,120.70        --               4,145,749.31           23,155,396.35         --                 4,543,963.09



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:

                                                                                                                                                145
                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


□Applicable√ Not applicable

Separate amount is not large, the account receivable with big combination risk after combined via risk character:
√Applicable□ Not applicable


                                                                                                                          Unit :RMB



            Content              Book balance            Provision for bad debts      Allotment rate                  Reason

Shenzhen Textile
Industry and Trading Co.,                   116,285.83                116,285.83                    100% Unable to recover
Ltd.

Shenmo Company                               23,462.57                 23,462.57                    100% Unable to recover

Ronghui Company                               7,037.95                   7,037.95                   100% Unable to recover

Municipal Road
                                             42,000.00                 42,000.00                    100% Unable to recover
Company

Dadi Property
                                             57,700.00                 57,700.00                    100% Unable to recover
Management Office

Xing Zhenhua                                 65,000.00                 65,000.00                    100% Unable to recover

Total                                       311,486.35                311,486.35              --                         --


(2)Switch back or regain of the other account receivable in the reporting period

Receivable accounts with mojor or amount but on which bad debt provisions are provided individually at end of
period
                                                                                                                              Unit:RMB

        Content                  Book balance            Provision for bad debts       Allotment rate                 Reason

Separate amount is large                 12,075,436.43             12,075,436.43                        100% Unable to recover

Separate amount is No
                                           311,486.35                 311,486.35                        100% Unable to recover
large

Total                                    12,386,922.78             12,386,922.78              --                         --


(3)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                    11,389,044.60 3-4 years                                       41.3%
Co., Ltd.

Shenfang Imports &
                            Subsidiary                              7,168,680.72 3-4 years                                      25.99%
exports Co., Ltd.



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                                                                  Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shenzhen Beauty
Century Garment Co.,         Subsidiary                                5,075,600.00 1-2 years                                         18.41%
Ltd.

Anhui Huapeng Textile
                             Sharing Company                           2,700,000.00 Within 1 year                                      9.79%
 Co., Ltd.

Shenzhen Tianlong
Industry and Trade Co.,      Non-related parties                        686,391.83 3-4 years                                           2.49%
Ltd.

             Total                        --                          27,019,717.15                 --                                97.98%


(4)Other Account receivable from Related affiliated parties

                                                                                                                         Unit:RMB


            Unit name                 Relation with the company                    Amount                     Percentage of account receivable

Shenfang Imports & exports
                                    Subsidiary                                                7,168,680.72                            25.99%
Co., Ltd.

Shenzhen Beauty Century
                                    Subsidiary                                                5,075,600.00                            18.41%
Garment Co., Ltd.

Anhui Huapeng Textile Co.,
                                    Sharing Company                                           2,700,000.00                             9.79%
Ltd.

               合计                                 --                                    14,944,280.72                               54.19%


(5)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 securitization ,

       3. .Long –term stocks equity investment
                                                                                                                         Unit :RMB

                                                                                                 Explanati
                                                                                                   on of
                                                                                                 diffidence
                                                                                                  between
                                                                       Sharehold      Voting
                                                                                                 sharehold
              Accounti    Initial                                         ing         right
                                      Original              Ending                                  ing                   Current     Cash
  Name           ng      investmen                 change               proportio proportio                    Devalue
                                      balance               Balance                              proportio                devalue     bonus
               method      t cost                                       n in the   n in the
                                                                                                   n and
                                                                        investee   investee
                                                                                                  voting
                                                                                                   right
                                                                                                 proportio
                                                                                                    n in


                                                                                                                                             147
                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                      investee

Shenzhen
Jintian
                       14,831,68 14,831,68             14,831,68                                 14,831,68
Industry                                                            3.68%     3.68%
                            1.50      1.50                  1.50                                      1.50
(Group)C Equity
o., Ltd.      method

Shenzhen
Haohao
                       2,040,102 3,665,118 275,108.0 3,940,226
Property                                                             50%        50%
                             .73       .59        9          .68
Leasing       Equity

Co., Ltd. method

Shenzhen
Xieli
              Equity   1,529,483 2,976,192 181,327.7 3,157,519                                   266,654.9
Autornob                                                             50%        50%
              method         .67       .27        0          .97                                        9
ile Co.,
Ltd.

Shenzhen
Changlia
nfa
                       2,524,500 1,752,210 -34,079.8 1,718,130
Printing                                                           40.25%    40.25%
                             .00       .56        9          .67
and
dyeing        Equity

Company method

Jordan
                       7,240,625 2,587,660             2,587,035
Garnent       Equity                         -625.73                 35%        35%
                             .00       .99                   .26
Factory       method

Shenzhen
Tianglong
                       685,000.0
Industry                                                    0.00     50%              Notes2
                              0
and trade Equity
Co., Ltd. method

Hengshun
(Saipan               8,228,350
                                                            0.00     35%        35%
)Industry Equity            .00
Co., Ltd. method

Shenzhen

Shengbo

optoelectro            40,500,00 956,663,0 760,000,0 1,716,663
                                                                    100%      100%
nic                         0.00    70.03     00.00      ,070.03
Technology Cost

Co., Ltd.     method




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                                                   Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Shenzhen
Jinlan
Decorativ             5,470,000 5,470,000   5,470,000
                                                          90%      100% Notes1
e Articles                  .00       .00         .00
Industrial Cost
Co., Ltd. method

Shenzhen
Lisi                  6,666,132 6,666,132   6,666,132
                                                        90.68%     100% Notes 1
Industrial Cost             .60       .60         .60
Co., Ltd. method

Shenzhen
Beauty
                      30,867,40 30,867,40   30,867,40                               2,167,431
Centruty                                                 100%      100%
                           0.00      0.00        0.00                                      .21
Garment Cost
Co., Ltd. method

Shenzhen
Shenfang
                      6,299,700 6,299,700   6,299,700
Import &                                                 100%      100%             82,156.61
                            .00       .00         .00
Export       Cost

Co., Ltd. method

Shenzhe
n                     14,623,00 14,623,00   14,623,00
                                                          95%      100% Notes 1
Huaqian      Cost          3.00      3.00        3.00
g Hotal      method

Shenfang
Property
                      1,600,400 1,600,400   1,600,400
Managem                                                 93.75%     100% Notes1
                            .00       .00         .00
ent Co.,     Cost

Ltd.         method

Zhenzhen
Zhongxin
g Fibre
folds                 1,260,000 1,260,000   1,260,000                               1,260,000
                                                          75%              Notes2
cotton                      .00       .00         .00                                      .00
Clothing
ornament Cost
Co., Ltd. method

Shenzhen
Jiafeng               16,800,00 16,800,00   16,800,00                               16,800,00
                                                         10.8%     10.8%
Textile      Cost          0.00      0.00        0.00                                     0.00
Co., Ltd. method

Shenzhen Cost         5,491,288 5,491,288   5,491,288     45%        45%            5,058,307


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                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


Guanhua method              .71       .71                  .71                                      .01
Pruting
and
dyeing
Co., Ltd.

Union
Develop
                      2,600,000 2,600,000            2,600,000
ment                                                              2.87%     2.87%
                            .00       .00                  .00
Group        Cost

Co., Ltd. method

Shenzhen
Xiangjian             160,000.0 160,000.0            160,000.0
                                                                   20%        20%
g Trade      Cost            0         0                    0
Co., Ltd. method

Shenzhen
Xinfang               524,000.0 524,000.0            524,000.0
                                                                   20%        20%                                 80,000.00
Knitting     Cost            0         0                    0
Co., Ltd. method

Hongkon
g Yehui
                      2,392,914 2,392,914            2,392,914
Internatio                                                       17.85%    17.85%
                            .37       .37                  .37
nal Co.,     Cost

Ltd.         method

Shenzhen
Dailishi
                      532,062.5 2,559,856            2,559,856                                                    802,000.0
Underwe                                                            30%              Notes3
                             0        .26                  .26                                                            0
ar Co.,      Cost

Ltd.         method

Anhu
Huapeng               25,000,00 25,410,20            25,410,20
                                                                   50%              Notes3
Textile      Cost          0.00      9.50                 9.50
Co., Ltd. method

                      197,866,6 1,105,200 760,421,7 1,865,622                                40,466,23            882,000.0
Total           --                                                --        --         --
                         44.08    ,838.38    30.17     ,568.55                                     1.32                   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%.
2. The Cancellation date of Shenzhen Tianlong Industry & Trading Co., Ltd.is April 24, 2014,The Cancellation
date of Zhongxing Fiber Wimple Cotton Raiment Co., Ltd. Is January 4, 2013.
3. Shenzhen Dailisi Underwear Co., Ltd.and Anhui Huapeng Textile Co., Ltd. Had adopted outsourcing for
contractual operation.

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                                                          Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



        4. Business income, Business cost


        (1)Business income


                                                                                                                  Unit:RMB

                Items                     Amount of current period                    Amount of previous period

Income from Main business                                     28,654,762.09                                 26,248,972.75

Other Business income                                          1,828,836.96                                  1,957,898.32

Total                                                         30,483,599.05                                 28,206,871.07

Business cost                                                  6,096,505.49                                  6,458,435.54


(2)Main business(Industry)
                                                                                                               Unit:RMB

                                        Amount of current period                      Amount of previous period
             Name
                                 Business income          Business cost        Business income          Business cost

Rental                                28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24

Total                                 28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24


(3)Main business(Production)
                                                                                                               Unit:RMB




                                        Amount of current period                      Amount of previous period
             Name
                                 Business income          Business cost        Business income          Business cost

Rental income                         28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24

Total                                 28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24


(4)Main Business(Area)
Unit:RMB

                                        Amount of current period                      Amount of previous period
             Name
                                 Business income          Business cost        Business income          Business cost

Shenzhen                              28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24

Total                                 28,654,762.09            4,267,668.53          26,248,972.75           4,500,537.24


        (5)Total income and the ratio of operating income from top five clients
                                                                                                               Unit:RMB




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                                                            Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                 Name                                      Business Income                    Proportion(%)

Jinsitai Investment Development Co., Ltd.                                                 12,167,837.50                    39.92%

Shenzhen Shixingkai Beauty Co., Ltd.                                                         529,533.84                    1.74%

China merchants Bank, Shenfang Sub- Branch                                                   466,845.72                    1.53%

China Ping An Life Insurance ,Shenzhen Branch                                                394,320.00                    1.29%

Shenzhen City Zhongbai Computer technology Inc                                               339,091.08                     1.11%

Total                                                                                     13,897,628.14                    45.59%

Notes


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
                                                                               24,115,950.89                         1,305,000.00
adopting the cost method

Income from long-term equity investment measured by
                                                                                    421,730.17                         299,087.54
adopting the Equity method

Hold the investment income which gained from the
                                                                               19,468,746.45                         2,376,792.47
transactional financial assets

Total                                                                          44,006,427.51                         3,980,880.01


(2)Long term equity investment calculated to cost method:



                                                                                                                       Unit:RMB

                       Name                  Amount of current       Amount of previous                Cbange cause
                                                   period                  period

Shenfang Property Management Co., Ltd.                 676,276.28                         Subsidiary Profit distribution

Shenzhen Huaqiang Hotal                               5,096,339.42                        Subsidiary Profit distribution

Shenzhen Lisi Industrial Co., Ltd.                 11,028,068.57                          Subsidiary Profit distribution

Shenzhen Jinlan Decorative Articles
                                                      5,935,266.62                        Subsidiary Profit distribution
Industrial Co., Ltd.

Anhu Huapeng Textile Co., Ltd.                         900,000.00            900,000.00

Shenzhen Dailishi Underwear Co., Ltd.                  400,000.00            405,000.00

Shenzhen Xinfang Knitting Co., Ltd.                     80,000.00

Total                                              24,115,950.89           1,305,000.00                      --




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                                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



(3)Long term equity investment calculated via equity method
                                                                                                                  Unit :RMB

                     Name                          Amount of current          Amount of previous                   Cbange cause
                                                         period                     period

Shenzhen Haohao Property Leasing Co.,
                                                             275,108.09               259,352.31
Ltd.

Shenzhen Xieli Automobile Co., Ltd.                          181,327.70               107,335.05

Shenzhen Changlianfa Printing & dyeing Company               -34,079.89               -11,049.10

Jordan Garment Factory                                              -625.73           -56,550.72

Total                                                        421,730.17               299,087.54                         --

Notes
The company has no big restriction on the investment earning repatriation.
6. Supplement information of cash Flow Statement
                                                                                                                                     Unit:RMB



                                                                                 Amount of current
Supplement information                                                                                            Amount of previous period
                                                                                    period
1. Adjusting net profit to net cash flow in operating activities:                            --                               --

  Net profit                                                                                      45,548,330.24                     6,941,518.47

Add: Provision for impairment of assets                                                            -456,398.70                      -342,179.97

The losses on the disposal of fixed assets, intangible assets and other
                                                                                                   4,261,643.66                     4,258,006.69
long-term assets

Amortization of intangible assets                                                                   300,275.16                       194,957.64

Investment losses                                                                             -44,006,427.51                       -3,980,880.01

Decrease of deferred income tax asset                                                                97,849.68                        85,544.99

Increase of deferred income tax liability                                                           888,213.05

   Decrease in operating receivable                                                                7,436,575.50                     1,800,750.56

   Increase in operating payables                                                                  1,897,479.52                    -3,223,511.36

Other                                                                                               -888,213.05

Net cash flows from operating activities                                                          15,079,327.55                     5,734,207.01

2.Investing and financing activities that do not involve cash receipts
                                                                                             --                               --
and payments

3.Net increase in cash and cash equivalents                                                  --                               --

Cash at the end of the period                                                                269,387,555.45                        30,852,896.74

Less:Cash at the beginning of the period                                                         33,906,151.53               133,011,826.29



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Net increase in cash and cash equivalents                                            235,481,403.92                  -102,158,929.55


7.Reverse purchasing of assets and liabilities bocked at evaluated value

Reverse purchasing of the following assets and liabilities at fair value
                                                                                                                            Unit:RMB

                                                        To determine the fair     Fair value calculation
              Items               Fair value                                                                  Original book value
                                                            value method                 process

None

Long-term equity investment amount from reveres purchase
                                                                                                                            Unit:RMB

                                               Long-term equity investment amount from    Long-term equity investment Fair value
                      Items
                                                          reveres purchase                            calculation process

N/A


(XVI)Supplement information


        1.   Details of non-recuring gain/loss of the term


                                                                                                                            Unit:RMB

Items                                                                           Amount                         Remarks

                                                                                                   Mainly including the amortized
                                                                                                   governmental R&D subsidy of
                                                                                                   RMB 3,954,990.00, High-tech
                                                                                                   industrialization demonstration
                                                                                                   project matching funds
                                                                                                   amortization was RMB
                                                                                                   100,000.00, new flat panel
                                                                                                   display industry of special
                                                                                                   projects amortization was RMB
Govemment subsidy recognized in currentgain and loss(excluding
                                                                                                   500,000 state grant funds, the
those closely related to the Company’s business and granted                        5,645,436.24
                                                                                                   Shenzhen Municipal Finance
under the state’s policies)
                                                                                                   Committee allocated a loan
                                                                                                   discount amortization of RMB
                                                                                                   96,822.24, TFT-LCD polarizing
                                                                                                   film industry projects grant funds
                                                                                                   amortization was RMB
                                                                                                   600,000.00, Futian District,
                                                                                                   Shenzhen industry development
                                                                                                   funds grants was RMB
                                                                                                   101,400.00, the Shenzhen


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                                                                    Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                                                                                        Municipal Committee of
                                                                                                        emerging industries of strategic
                                                                                                        financial subsidies was RMB
                                                                                                        240,000.00, Shenzhen SME
                                                                                                        development, Booth subsidy was
                                                                                                        RMB 52,224.00.

Gain/loss from change of fair value of transactional financial
                                                                                                   Investment income obtained
asset and liabilities, and investment gains from disposal of
                                                                                                   through the secondary
transactional financial assets and liabilities and sellable financial                19,468,746.45
                                                                                                   market to sell the *ST Shen
assets other than valid period value instruments related to the
                                                                                                   Victor Onward A
Company’s common businesses.

Other non-business income and expenditures other than the above                           319,182.75

Amount of influence of income tax                                                        4,871,686.61

Total                                                                                20,561,678.83                      --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
(II)The differences between domestic and international accounting standards

1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.

                                                                                                                               Unit:RMB


                                   Net profit attributable to the shareholders                 Net Assets attributable to the
                                             of the listed company                          shareholders of the listed company
                                     Amount in the              Amount in the            End of the reporting       Beginning of the
                                    reporting period            previous period                period               reporting period
According to CAS                           -3,642,102.17                -18,736,243.07        2,259,589,492.24          1,303,011,954.39

Items and amount adjusted according to IAS


2. Difference in Net profit and net Assets in the Financial Report as Disclosed Respectively according to the
Accounting standards Outside Mainland China and the Chinese Accounting Standards.

                                                                                                                                 Unit:RMB

                                   Net profit attributable to the shareholders                 Net Assets attributable to the
                                             of the listed company                          shareholders of the listed company
                                     Amount in the               Amount in the           End of the reporting       Beginning of the

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                                                              Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


                                 reporting period         previous period                    period            reporting period
According to CAS                        -3,642,102.17             -18,736,243.07           2,259,589,492.24        1,303,011,954.39

Items and amount adjusted according to IAS


3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.

N/A
      (III) Return   on net assets and earnings per share


                                                                                                                         Unit:RMB



                                                                                 Earnings per share(RMB)
                                               Return on net assets .
Profit of the report period
                                               Weighted(%)
                                                                                 Basic earnings per share Diluted gains per share
Net profit attributable to the Common stock
                                                                        -0.24%                        -0.01                   -0.01
shareholders of Company.

Net profit attributable to the Common stock
shareholders of Company after deducting of                              -1.57%                        -0.06                   -0.06
non-recurring gain/loss.


(IV) The explanation of abnormal circumstance and reasons of items in major accounting statement.


  (1)The ending balance of monetary capital increased by RMB 512.1943 million and 220.38% over beginning
of period mainly because the Company privately issued RMB ordinary shares according to the Approval of
Private Issue of Shares of Shenzhen Textile (Holding) Co., Ltd. (Zheng Jian Permit [2013] No. 2 Document)
issued by China Securities Regulatory Commission and the funds thus raised have not been completely used.
    (2) The ending balance of bills receivable decreased by RMB 7.8848 million and 39.15% over beginning of
period mainly due to endorsed assignment.
    (3) The ending balance of accounts receivable increased by RMB 50.4695 million and 50% over beginning of
period mainly due to the increase of trade account receivable in credit period.
    (4) The ending balance of payment in advance increased by RMB 20.479 million and 161.11% over beginning
of period mainly due to the increase of export orders near the end of current period.
    (5) The ending balance of inventories increased by RMB 68.5796 million and 47.87% over beginning of
period mainly due to the increase of raw materials necessary for production of polarizer.
    (6) The ending balance of other current assets increased by RMB 300 million and 100% over beginning of
period mainly due to the increase of structural deposit of RMB 300 million.
    (7) The ending balance of construction in progress increased by RMB 30.9412 million and 267.28% over

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                                                       Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013



beginning of period. These funds were mainly invested in the phase-II project of polarizer for TFT-LCD.
   (8) The ending balance of short-term loan decreased by RMB 40.1534 million and 100% over beginning of
period due to the decrease of working capital loan in current period.
   (9) The ending balance of accounts payable increased by RMB 41.0329 million and 40.53% over beginning of
period mainly due to increase of purchase of raw materials necessary for production of polarizer and increase of
accounts payable for outsourced products.
   (10) The ending balance of advance collections increased by RMB 21.4146 million and 83.44% over
beginning of period mainly due to increase of advances on sales for export trade near the end of period.
   (11) The paid-in capital increased by RMB 170 million because the Company privately issued 170,000,000
RMB ordinary shares (par value per share: RMB 1.00) according to the Approval of Private Issue of Shares of
Shenzhen Textile (Holding) Co., Ltd. (Zheng Jian Permit [2013] No.2 Document) issued by China Securities
Regulatory Commission.
   (12) The ending balance of capital surplus increased by RMB 790.2196 million over beginning of period
mainly because the premium of private issue of RMB ordinary shares was accounted for as capital surplus so that
capital surplus increased by RMB 791,751,008.85.
   (13)The operating income in current period increased by RMB 200.9150 million and 53.52% year on year
mainly due to the increase of sales of polarizer;
   (14)The operating cost in current period increased by RMB 191.3372 million and 56.85% year on year
mainly due to the increase of sales cost caused by the growth of polarizer business volume;
   (15)The financial expenses in current period decreased by RMB 14.9997 million and 1401.29% year on year
mainly due to the generation of exchange gains from payable liabilities in yen after depreciation of Japanese Yen
by big margin;
   (16)The assets impairment loss in current period increased by RMB 4.1733 million and 173.01% year on year
mainly due to the increase of provision for bad debts and provision for diminution in value of inventories of
polarizer;
   (17)The investment income in current period increased by RMB 17.3845 million and 384.29% year on year
mainly due to the investment income obtained from additional sales of financial assets available for sale;
   (18)The other composite income in current period decreased by RMB 10.7916 million and 116.54% year on
year because the Company sold financial assets available for sale and transferred out the gains of the preivous
period from other composite income;
   (19)The net cash flows from operating activities decreased by RMB 41.4567 million and 258.17% year on
year mainly due to the increase of purchase of raw materials necessary for polarizers;
   (20)The net cash flows from investing activities decreased by RMB 258.3587 million and 268.17% year on
year mainly due to the redeposit of RMB 300 million as structural deposit in current period;
    (21) The net cash flows from financing activities increased by 925.646 million and 76,499.67% mainly
because the Company privately issued 170,000,000 ordinary RMB shares (par value per share: RMB 1.00) and
raised net proceeds of RMB 961,751,000.85 according to the Approval of Private Issue of Shares by Shenzhen
Textile (Holding) Co., Ltd. (CSRC Permit (2013) No. 2 Document) issued by China Securities Regulatory
Commission.


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                                                     Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2013


        IX.Documents Available for Inspection
1. Accounting statements bearing the seal and signature of legal representative, General Manger and Financial
Controller;

2. The originals of all the Company’s documents and the original manuscripts of announcements publicly
disclosed on the newspapers designated by China Securities Regulatory Commission in the report period;


    The above documents were completely placed at the office of the Company.



     This report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version
shall prevail.




                                     The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.

                                                               August 24, 2013




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