Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Shenzhen Textile (Holdings) Co., Ltd.
The Semi-Annual Report 2015
August 28, 2015
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
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.
All the directors attended the board meeting for reviewing the Semi-Annual Report.
The Company has no plan of cash dividends carried out, bonus issued and capitalizing of common reserves either.
Mr.Zhu Jun, The Company leader, Mr. Zhu Jun, Chief financial officer and Ms.Mu Linying, 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 the semi-report.
This Report has been prepared in both Chinese and English. In case of any discrepancy, the Chinese version shall
prevail.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company
III. Summary of Accounting Data and Financial Indicators
IV. Report of the Board of Directors
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII.Information about Directors, Supervisors and Senior Executives
IX. Financial Report
X. Documents available for inspection
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Definition
Terms to be defined Refers to Definition
Company/The Company/ Shen Textile Refers to Shenzhen Textile (Holdings) Co., Ltd
Articles of Association Refers to Articles of Association of Shenzhen Textile (Holdings) Co., Ltd
Actual controller / National Assets Regulatory
National Assets Regulatory Commission of Shenzhen Municipal
Commission of Shenzhen Municipal People's Refers to
People's Government
Government
The Controlling shareholder/ Shenzhen
Refers to Shenzhen Investment Holding Co., Ltd.
Investment Holding Co., Ltd.
Shenchao Technology Refers to Shenzhen Shenchao Technology Investment Co., Ltd.
Shengbo Optoelectronic Refers to Shenzhen Shengbo Optoelectronic Technology Co., Ltd.
Ntto Kogyo Refers to Ntto Kogyo Corporation
“CSRC” Refers to China Securities Regulatory Commission
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
The Report Refers to 2015 Semi- Annual Report
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
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) N/A
Stock exchange for listing： Shenzhen Stock Exchange
Name in Chinese 深圳市纺织(集团)股份有限公司
Chinese abbreviation (If any) 深纺织
English name (If any) SHENZHEN TEXTILE (HOLDINGS) CO.,LTD.
English abbreviation (If any) STHC
Legal Representative Zhu Jun
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Jiang Peng
6/F, Shenfang Building, No.3 Huaqiang
Contact address
North Road, Futian District, Shenzhen
Tel 0755-83776043
Fax 0755-83776139
E-mail 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
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2014 Annual Report.
（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
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
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 2014 Annual Report.
（3）Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration nmber for enterprise legal license number of taxation
registration and organization code have no change in reporting period, found more details in annual report 2014.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
III. Summary of Accounting Data and Financial Indicators
I.Summary of accounting /Financial Data
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
Reporting period Same period of last year YoY+/-（%）
Operating income（RMB） 620,993,333.48 471,623,824.81 31.67%
Net profit attributable to the shareholders
7,668,027.95 -21,644,510.10 135.43%
of the listed company（RMB）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -33,384,225.47 -40,297,886.93 17.16%
listed company（RMB）
Cash flow generated by business operation,
4,293,128.00 -90,549,264.33 104.74%
net（RMB）
Basic earning per share(RMB/Share) 0.015 -0.0430 134.88%
Diluted gains per
0.015 -0.0430 134.88%
share(RMB/Share)(RMB/Share)
Weighted average ROE(%) 0.35% -0.95% 1.30%
As at the end of the
As at the end of last year YoY+/-（%）
reporting period
Total assets（RMB） 2,811,815,384.62 2,822,783,501.87 -0.39%
Net assets attrilutable to shareholder of
2,174,548,815.04 2,196,249,248.26 -0.99%
listed company（RMB）
II. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference .
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
No difference .
III.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part
-72,665.54
for which assets impairment provision is made)
Govemment subsidies recognized in currentgain and
loss(excluding those closely related to the Company’s business 5,781,523.39
and granted under the state’s policies)
Gains and losses from change of fair values of
held-for-transaction financial assets and financial liabilities
except for the effective hedge business related to normal business
44,444,187.39
of the Company, and investment income from disposal of
transactional financial assets and liabilities and financial assets
available for sale
Switch-back of provision of impairment of account receivable
440,691.99
which are treated with separate depreciation test
Other non-business income and expenditures other than the above 2,095,102.87
Less :Influenced amount of income tax 11,636,586.68
Total 41,052,253.42 --
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
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/itesm as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
IV. Report of the Board of Directors
I. General
During the reporting period, aiming at “Focus on Main Business and Reduce Losses”, the company
combined itself’s effort with the corporation with Taiwan Optimax Co., Ltd., improved the process, increased the
yield, reduced the loss and improved the management, which turned out the product of polarizer for TV’s yield
stabilized at around 95% and the losses decreased to the industry averages. Meanwhile, according to the
key work arrangement of 2015, the company strengthened development and reserve for new products and
strengthened introduction for new materials, and prepared well for the argumentation of Project II and other
preparatory work as well as the establishment work of “Thirteenth Five-Year” Plan.
During the reporting period, the company has achieved the operating income of RMB620.9933 million,
increased by 31.67% year on year, Total profit of RMB 25.1760 million, increased by 404.67% year on year, Net
profit of RM 7.6680 million , increased by 135.43%.The main reason is that the investment income of
available-for-sale financial assets increased year on year. Meanwhile, there were some increases in yield and
utilization of the company’s polarizers , which decreased losses in polarizer business year on year.
II. Analysis on principal Business
Year-on-year changes in major financial statistics
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income Mainly caused by the
620,993,333.48 471,623,824.81 31.67%
sales growth of polarizer.
Mainly caused by the
sales costs increase with
Operating cost 588,138,026.03 434,138,124.26 35.47%
business growth of
polarizer.
Sale expenses 5,010,699.03 5,101,502.04 -1.78%
Mainly caused by the
decrease of
Administrative expenses 45,057,284.86 64,664,701.53 -30.32%
research and developmen
t expenditure.
Mainly caused by the
increase of bank deposit
Financial expenses -11,273,185.63 -6,832,620.68 64.99% and the structural deposit
interest, and the
devaluation of Japanese
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
yen, resulting in decrease
of exchange losses the
debt payable in terms of
yen generated.
Mainly caused by the
Income tax expenses 17,507,965.25 13,381,225.81 30.84% increase of the current
taxable income.
Mainly caused by the
strict monitoring of the
current
research and developmen
R&D investment 11,956,715.67 36,362,478.26 -67.12%
t expenditure and the
significant nonuse of
research and developmen
t materials.
Mainly caused by the
increase of cash income
Net cash flows from from polarizer product
4,293,128.00 -90,549,264.33 104.74%
operating activities sales, and the decrease of
the payment of income
tax amount .
Mainly caused by the
Net cash flows from increase of the current
-422,551,442.19 188,876,234.09 -323.72%
investing activities structural deposit
investment.
Mainly caused by the
Net cash flows from
-42,034,848.78 9,061,206.08 -563.90% current repayment to the
financing activities
bank loan.
Mainly caused by the
increase of the current
Net increase in cash and structural deposit
-459,957,122.05 108,214,788.20 -525.04%
cash equivalents investment and the
repayment to the bank
loan.
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.\
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Implementation of business plans disclosed in previous periods in this period.
According to the operation target“Focus on Main Business and Reduce Losses”formulated in the beginning
of the year, the company improved overall the technology process level of production line, upgraded the operation
model of quality control, took various measures to develop the panel module market, improved the sustainable
development capability. The situation of work completion of the first half year is as follows:
(1) Focus effect on the production and operation of polarizer business to narrow the loss. During the reporting
period, the company combined itself’s effort with the corporation with Taiwan Optimax Co., Ltd., optimized the
production process, reduced the product unit consumption, improved back-end energy efficiency with
automatic detection system and statistical process control system, which turned out the polarizer for TV’s yield
was steadily at around 95%. Meanwhile, through implementing production scheduling optimization, release
policy optimization and other 12 production and management optimization schemes, the company built
quick reaction mechanism with mutual support of “Market-Research-Sales-Service”, which turned out apparent
narrow in polarizer business losses.
(2)Actively adopt to the market development policy and increase steadily in sales income. Through the policy of
“Taking the Initiative, Giving Timely Feedback and Adjusting with Follow-Up”, on one hand, the company
stabilized expanding panel clients; On the other hand, the company actively expanded module clients . During the
reporting period, the company completed the introduction for 3 types of products and completed the product
certification of 3 new panel clients and 1 new module client, of which the sales income of polariod business
increased by 71.01% year on year.
(3) Improve research and development and carry out the development and reserve and the introduction of new
product. The company made full use of the newly-introduced precise testing equipments in the R&D center to
comprehensively improve research and development in function, type and effect. During the reporting period, the
company successfully marketed 14 new products including the area of vehicular light barrier, backlit-integration
polarized plate product, high-durability Iodine, slim-type subsize TFT, diffuse-type subsize TFT, MNT for narrow
angle, slim NB IPS and IPS-TV. Meanwhile, to further decrease the product costs, the company widely carried out
the introduction of new product during the reporting period, involving new materials of 8 categories and 16
suppliers, of which some new materials have successfully been introduced and verified by clients, and have been
in mass-production stage.
(4) Actively implement argumentation work for Project II of polarizer with TFT-LCD’s implement scheme.
Whereas the current market environment has changed, during the reporting period, the company integrated the
latest industry development trend of panels and polarizers, communicated with raw material suppliers,
equipment manufacturers and downstream clients on technology, market, product and equipment specification,
now the company has basically confirmed the technical scheme.
(5) Carry out the establishment work of “Twelfth Five-Year”Plan. In the basis of the implementation situation of
“Twelfth Five-Year” Plan carefully summarized by the company, the company set about with the development
trend of panel display industry based on the actual, which finished the first-draft establishment work of
“Thirteenth Five-Year”Plan.
(6) Implement safety responsibility system and realize the goal of accident-free production. Through the
combination of general inspection on production safety and professional inspection on daily safety, and the
combination of the new“Production Safety Law”publicized by staffs and the professional training given by the
working safety staffs , the company ensured the safe and stable production and operation environment and
realized the goal of accident-free production.
(7) Enlarge staff incentive mechanism and strengthen enterprise cohesion. During the reporting period, with the
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
goal of activating the potential of human resource and ensuring the effectiveness of wage adjustment, the
company further optimized the performance evaluation system, enlarged the incentive power and ensured the
actual promoting effect of performance management to corporation management. Meanwhile, the company
established two promotion channels of management and technology, implemented technology evaluation and fully
aroused the enthusiasm of technicians to create the conditions for attracting and detaining the talents.
III. Business composition
In RMB
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
146,603,335.61 144,982,078.86 1.11% -7.84% -8.35% 0.55%
foreign trade
Manufacturing 428,106,829.69 429,331,962.36 -0.29% 59.71% 63.65% -2.42%
Lease and
Management of 44,455,788.09 11,996,604.70 73.01% 4.58% 2.88% 0.45%
Property
Product
Income from
Lease and
44,455,788.09 11,996,604.70 73.01% 4.58% 2.88% 0.45%
Management of
Property
Income from
7,529,456.73 10,491,373.27 -39.34% -30.31% 9.86% -50.95%
textile
Polarizer sheet 440,191,209.42 437,635,357.58 0.58% 71.01% 73.01% -1.15%
Income from
126,989,499.15 126,187,310.37 0.63% -20.09% -20.16% 0.08%
Trading
Area
Domestic 182,641,041.93 161,075,249.76 11.81% -5.98% 11.54% -13.86%
Overseas 436,524,911.46 425,235,396.16 2.59% 58.51% 47.75% 7.09%
IV. Analysis On core Competitiveness
1. Technical Advantage
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Shengbo Optoelectronic, with 20 years of operational experience in the polarizer industry, is the state-level of
high-tech enterprise that first enters the development and production of polarizing film in China, has mastered the
core technology of TN, STN and TFT and various product areas, and has owned whole proprietary technology of
polarizer and the proprietary intellectual property rights of various new products that demanded by the customers.
As of June 30, 2015, the company totally has 48 patents, including 11 patents for invention, 4 has authorized , the
company had 37 patents of utility models which were authorized.Moreover, the company had 1 national standard
patent and 2 industrial standard patents. The company had 2 technology platforms of “Shenzhen Polarizer
Materials and Technology Project Lab”and “Municipal Research and Development Center”, which emphasized
the enforcement of the development and industrialization of polarizer for LCD’s key production technology, the
development and industrialization of polarizer for OLED’s new product and the nationalized research of
polarizer’s raw materials. Through introducing various kinds of precise testing equipments, the company
completed bench-scale and pilot-scale test means, perfected reward system of research and development and built
creative platform with synergy of “Production -Teaching -Research-Utilization”to improve research and
development.
2. Talent Advantage
The company has a management team and a senior technical team in the polarizer with strong technical capability,
rich experience and international vision, part of the technical experts have studied the technology in the company
for 20 years, and has become the industry leader. Meanwhile, The company also employed overseas technicians
with advanced experience in polarizer production, built technology management team with mutual complement of
own technical team and external technicians. Through the combination of accumulating technology with
independent innovation and external team’s technological support, the company made itself establish and
accumulate first mover advantages on brand, technology and operation management in domestic polarizer
business area, which formed proprietary technology which is exclusive, combining the process feature of
company’s equipments and aiming at various kinds of product’s complete set.
3. Market Advantage
The company has good domestic and overseas clients. Compared to the foreign advanced counterparts, the biggest
advantage of the company is localization support, which is close to panel market and supported the national policy.
Regarding market development, the company centers in controlling production materials, which extends and
connects purchase with market for establishing quick response mechanism. In addition, the company provides a
series of value-added services to meet the demands for all clients, which helps to form a stable supply chain and
increase market share.
4. Quality Advantage
The company has always adhered to the quality policy of “Meet Customer Demand to Pursuit Excellent Quality”,
and focused on the product quality control. The company has greater advantage in product quality compared with
other similar enterprises. Meanwhile, the company has introduced the modern quality management system and
passed ISO9001 quality management system, ISO14001 environmental management system, OHSAS18000,
QCO80000 system certification, SGS test and ROHS directive environmental protection requirements for the
products. Moreover, the company has standardized whole process from raw materials from supply, manufacturing,
marketing and sales of raw materials to the customer service and ensured the stability of product quality. During
the reporting period, the company has increased the automatic detection identification equipment, strictly
controlled the quality of products and improved the product availability and the product management efficiency.
5. Management Advantage
Shengbo Optoelectrionic has accumulated the rich management experience in the production of polarizing film,
and owned the most advanced process control technology in the production management of polarizer, quality
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
management technology and stable raw material procurement channels and many other management systems.
During the reporting period, the company has carried out the comprehensive benchmarking works, organized the
management personnel to learn advanced experience from customers and peers, improved the forced management,
optimized the organizational structure of the company, reduced the management layers and further enhanced the
company’s management performance in view of the overseas management experience of polarizer enterprises.
6. Policy Advantage
As an enterprise in color filter and polarizer first listed to enjoy the policy, The company enjoys the preferential
tax policy of new display device industry, and enjoys the duty free policy of the imported raw materials and
consumables which can’t be produced domestically. Meanwhile, the company strengthens supplier management,
perfects the overall purchase strategy and strictly controls the number of suppliers. Moreover, the company
introduces competition mechanism, particularly focus on introducing competitive substitute material and further
reduces the production costs to improve product competitiveness .
V. Analysis on investment Status
1. Foreign Equity investment
（1）External investment
□ Applicable √ Not applicable
There was no foreign investment of the Company in the reorting period.
（2）Holding of the equipty in financial enterprises
□ Applicable √ Not applicable
There was no Holding of the equipty in financial enterprises.
（3）Investment in securities
√Applicable □Not applicable
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
Victor 44,444,18 assets Legal
Stock 000018 0.00 1,722,794 1.02% 0 0.00% 0.00
onward A 7.39 available shares
for sale
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Financial
Equity de
8,940,598 11,404,93 assets
Stock 000030 Fawer 985,733 0.34% 985,733 0.34% 0.00 bt
.31 0.81 available
for sale
8,940,598 11,404,93 44,444,18
Total 2,708,527 -- 985,733 -- -- --
.31 0.81 7.39
Disclosure date for the notice of
January 17, 2015
approval by the Board (If any)
Disclosure date for the notice of
approval by shareholders’ February 4, 2015
Meeting (If any)
（4）Explanation on equity of other listed company held
□ Applicable √ Not applicable
The Company had no equity of other listed company held in period.
2.Information of trust management, derivative investment and entrusted loan
（1）Trust management
□ Applicable√ Not applicable
There was no trust management of the Company in the reorting period.
（2）Derivative investment
□ Applicable√ Not applicable
There was no derivative investment of the Company in the reporting period.
（3）Entrusted loan
□ Applicable√ Not applicable
There was no entrusted loan of the Company in the reporting period.
3.Application of the Raised funds
（1）General application of the raised funds
√ Applicable □ Not applicable
In RMB’0000
Total amount of the raised capital 96,175.1
Total raised capital invested in the report period 62.93
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Total accumulative raised capital invested 1,845.12
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
0.00%
been changed (%)
Notes to use of raised capital
In the report period, The fund raised for investing the phase-II project of TFT-LCD polaroid reaches RMB 0.6293 million. Use
the temporary idle raising funds to supplement for 120 million RMB of circulating fund(deadline shall not be more than 12 months)
and use the temporary idle raising funds to buy 400 million RMB of bank structured deposit product which is high-safety,
good-fluidity and break-even(deadline shall not be more than 24 months). By June 30, 2015, the unused raising funds balance of
Project II of polarizer with TFT-LCD was RMB 983.4973 million(the aforesaid balance includes interest income, temporary
supplement for circulating fund and cash management business)
（2）Promised projects of raised capital
√ Applicable □ Not applicable
In RMB’0000
Date
Accumul Investme
when the
Total ated nt Has any
Project Total Amount project Benefit
raised amount progress Has the material
changed(i investme inested in has realized
Committed investment capital invested ended the predicted change
ncluding nt after the reached in the
projects and investment invested at the end reporting result be taken
partial adjustme reporting the reporting
as of the period(% realized place in
change) nt (1) period predicted period
commited reporting )(3)=(2)( feasibility
applicabl
period(2) 1)
e status
Committed investment projects
Phase-II
project of polarizer No 96,175.1 96,175.1 62.93 1,845.12 1.92% 0 No Yes
sheet for TFT-LCD
Subtotal of committeed
-- 96,175.1 96,175.1 62.93 1,845.12 -- -- 0 -- --
investment projects
Investment orientation for und arising out of plan
Total -- 96,175.1 96,175.1 62.93 1,845.12 -- -- 0 -- --
Situation about not In 2014, the company planned to change the implementation way of the item to raise money for and
coming up to schemed invest in and signed “Cooperation Framework Agreement” with Ntto Kogyo Corporation on polarizer
16
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
progress or expected product cooperation, of which the agreement was submitted to the first Extraordinary General Meeting of
revenue and the reason 2014 for deliberation. For the company’s controlling shareholder Shenzhen Investment Holding Co., Ltd.
( in specific project0 was transferring a portion of shares with agreement by publicly collecting transferees , the controlling
shareholder didn’t think it was appropriate to deliberate the company’s significant issues sothat the
controlling shareholder abstained, which made the agreement not pass the deliberation. Moreover, the
current market environment has been changed. The company needs to integrate the latest industry
development trend of panels and polarizer, implement argumentation for implementation schemes of
Project II of polarizer with TFT-LCD again, which results in that the construction of item to raise money
for and invest in does not reach the plan schedule.
Changes have taken place in the market environment of the company’s original item to raise money for
and invest in of Project II of polarizer with TFT-LCD.To ensure that there will be preferable
Notes to significant
market prospects and profitability in the item to raise money for and invest in, the company integrates the
change in feasibility of
latest industry development trend of panels and polarizer, communicated with raw material supplier,
the project
equipment manufacturer and downstream clients on technology, market, product and equipment
specification, which implemented argumentation for implementation schemes again.
Amount, application Not applicable
and application
progress of the
unbooked proceeds
About the change of Not applicable
the implementation
site of the projects
invested with the
proceeds
Adjustment of the Not applicable
implementation way of
investment funded by
raised capital
About the initial Not applicable
investment in the
projects planned to be
invested with the
proceeds and the
replacement
Applicable
On March 27, 2015, the 13th meeting of the sixth board of directors examined and adopted the Proposal for
Using the idle
Supplementing Working Capital with Part of Idle Raised Proceeds. It was approved to use RMB 300
proceeds to
million unused raised funds for the liquidity, using the period from the date of approval by the Board of
supplement the
directors not more than 12 months since being added, the specific date is from March 27, 2015 to March
working capital on
26, 2016, trasfered raise funds RMB 120 million from the account containning Shengbo Optoelectronic for
temporary basis
additional liquidiry on March 27, 2015, As of June 30, 2015, trasfered raise funds RMB 120 million from
the account containning Shengbo Optoelectronic for additional liquidiry.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Balance of the Not applicable
proceeds in process of
project implementation
and the cause
As of June 30, 2015, unused raised proceeds of RMB 983.4973 million were used to temporarily
About application and
supplement the Company's working capital( including the temporary supplement for RMB120 million of
status of the proceeds
circulating fund and RMB400 million of cash management business) ,It will be fully used in committed
unused
investment project.
Problems existing in
application of the
proceeds and the Non -existent
information disclosure
or other issues
（3）Changes of raised funds projects
□ Applicable√ Not applicable
There is no change in raised funds in company reporting period.
（4）Fund-raising project
Fund-raising project overview Disclosure date Disclosure index
The special Report on situation of 2015 se
Announcement No.:
mi-annual raise funds on deposit and actual August 28,2015
2015-36.www.cninfo.com.cn
usage .
4. Analysis on principal subsidiaries and Mutual Shareholding Companies
√Applicable □Not applicable
Particulars about the principal subsidiaries and Mutual shareholding companies
In RMB
Sectors Leading
Company Company Registered Operating
engaged products and Total assets Net assets Tumover Net Profit
Name type capital profit
in services
Domestic
Shenzhen Lisi
Trade, 25,293,776. 20,323,503. 3,599,168.6 1,550,837
Industrial Co., Subsidiary Lease 2,360,000 1,334,464.56
Property 50 81 7 .77
Ltd.
management
Shenzhen Accommodati
Hotel 28,640,322. 22,308,683. 5,468,988.5 1,500,135
Huaqiang Subsidiary on, business 10,005,300 1,125,038.19
services 68 07 8 .90
Hotel center;
Shenfang Property Property 8,516,933.4 2,426,423.6 5,113,060.7 177,283.2
Subsidiary 1,600,000 132,962.44
Property managem management 6 7 6 5
18
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Management ent
Co., Ltd.
Production of
Shenzhen
fully
Beauty
Textile electronic 42,730,244. 30,005,622. 9,145,712.8 -5,300,42
Century Subsidiary 2,500,000 -5,353,664.49
industry jacquard 66 82 0 4.05
Garment Co.,
knitting
Ltd.
whole shape
Shenzhen
Operating
Shenfang
Textile import and 79,646,656. 14,615,781. 126,989,49 940,024.4
Import & Subsidiary 5,000,000 764,453.09
trade export 30 25 9.15 9
export Co.,
business
Ltd.
Shenzhen
Shengbo Production
Flat 300,000,00 1,848,400,2 1,292,468,3 440,191,20 -48,664,4 -42,681,284.1
Opotoelectric Subsidiary and sales of
display 0 48.71 35.26 9.42 52.25 8
Technology polarizer
Co., Ltd
5. Significant projects of investments with non-raised funds
□ Applicable √ Not applicable
The company has no project invested by raised fund in the reporting period.
VI. Performance Forecast for January to September 2014
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
VII. Explanation of the Board of Directors and the Supervisor Committee concerning the
“Non-standard audit report ” issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
VIII.Explanation by the Board of Directors about the “ non-standard audit report “ for
lastyear.
□ Applicable √ Not applicable
IX. Profit distribution carried out in the report period
Execution or adjustment of profit distribution, especially cash dividend, and capitalizing of reserves in the report
19
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
period.
□ Applicable √ Not applicable
Previous year’s profit distribution plan was no profit distribution and shares converted from capital reserve either
X. Preplan for profit distribution and turning capital reserve into share capital in the
reporting period
□ Applicable √ Not applicable
The Company planed that no to distribute cash dividend, bonus shares and there was no turning of capital reserve
into share capital.
XI. Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Types of Vistors Discussion topics and provision of
Reception time Reception place Way of reception
visitors rece3ived materials
To know more about the situation of
polarizer industry and the situation of
Kingsmead
the company’s production and
The meeting Room Asset
June 16, 2015 Onsite investigatio Organization operation, please see details in “Log
of the company Management
of Investor Relation Activities ”
Pte.Ltd
posted on the interactive platform of
investor relation on June, 16, 2015.
20
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
V. Important Events
I. Administrative position
（1）Corporate Administrative Status
During the reporting period, the company strictly obey the "Securities Law", "Company Law", "Shenzhen
Stock Exchange listed companies standardize operational guidelines Corporate Governance Guidelines" and other
relevant laws and regulations and documents regulating the operation while improving internal organizational
structure and workflow control, strengthen risk management to safeguard the healthy and stable development of
the company. Currently, the company has basic sound governance system and stable management operation,
appropriate corporate governance structure, meet the requirements relevant corporate governance regulatory
documents issued by China Securities Regulatory Commission.
During the reporting period, referring to the requirements of “Reference Manual of Internal Audit Review of
Listed Companies”published by Shenzhen Supervision Bureau of CSRC in Aug. 2014 and comparing to Company
Law, the Securities Law, the Code of Corporate Governance of Listed Companies and the Administrative
Measures for the Disclosure of the Information of Listed Companies as well as “Articles of Association”of the
company, “Rules of Procedure of the Shareholder’s Meeting”and other internal rules and regulations, the
company inspected the normalization state of corporate governance, fund raising and basic work of finance for the
company itself and important subsidiaries.After inspection, it was found that the company could implement
related laws and regulations and related company systems on constructing and operating the system of the “Three
Boards”, selection, employment and resumption of the board‘s director and supervisor; No violations existed
regarding the disclosure of management system construction of raising funds, storage and usage of raising funds,
inspection and supervision of raising funds and usage condition of raising funds.
(2) Situation of Difference Governance
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: Submit the index report weekly and submit expenses report quarterly,
financial asset statement, deposits and financing loan summary statement. To strengthen the management of
nonpublic information, the company will be strict in controlling the insider’s range and regulate the
information-delivery process, and strictly implement in terms of“Management System of Inside Information
Insider” to avoid the leak of inside information and the occurrence of inside trading activities.
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. Lawsuits affairs
Major lawsuits and Arbitration affairs
□ Applicable √ Not applicable
The Company has no major lawsuit or arbitration in the report period.
21
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Other Lawsuits affairs
√ Applicable □Not applicable
Progress of
Involved Whether The oucome and Execution of
the
Basic situation of litigation amount to form effects of litigation Date of Index of
litigation(ar
(arbitration) (RMB’000 expected litigation(arbitratio (arbitration)judg disclosure disclosure
bitration(ar
0) liability n) ement
bitration)
On March 6, 2014,the
company received the No.28
respondent notice issued by
Shenzhen Intermediate
People's Court (2014)
Foreign legislation, the
plaintiff association of Hong
Kong Xieli Automobile Co., The company can’t
Ltd liability disputes has During the temporarily judge
been formally accepted. The reporting the
Due to being Annual
company as the first period, this litigation’s possibl
tried, the Report
defendant, Shenzhen Xieli case was e influences to the March
3,185.79 No procedure hasn’t 2014(http://w
Automobile Co., Ltd. was still in the current profits and 31,2015
been executed. ww.cninfo.co
the second defendant. The process of the profits after the
m.cn）
plaintiff requested: 1, the trying. current profits of
economic loss of tort the company.
liability by the total amount
of RMB 31.8579 million ; 2,
the second defendant
involved in joint liability of
the amount of
compensation; 3, the
litigation fee paid by two
co-defendants.
III. Query form media
□ Applicable √ Not applicable
In the reporting year, the Company had no query from media
IV. Bankruptcy or Reorganization Events
□ Applicable √ Not applicable
There Company was not involved in any bankruptcy or reorganization events in the reporting period.
22
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
V. Transaction in Assets
1. Purchase of assets
□ Applicable √ Not applicable
There is no purchase of assets in the Company during the reporting period.
2. Sale of assets
□ Applicable √ Not applicable
There is no sale of assets in the Company during the reporting period
3. Business combination
□ Applicable √ Not applicable
There is no Bubiness combination in the Company during the reporting period
VI. Implementation and Influence of Equity Incentive Plan of the Company
□ Applicable √ Not applicable
There is no equity incentive plan and its implementation in the Company during the reporting period.
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
√Applicable □Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of approve
Amount price of of
of the pricing Ratio in approve Date of
Related Relation Type of Price of of trade Way of similar inform
related the similar d disclosu
parties ship trade trade RMB0’ payment trade ation
transacti related trades d re
000 availabl disclos
ons transacti limited e ure
ons （RMB
or not
’0000）
(Y/N)
The
director
and
Shenzhe general
n manager Sale
Tianma of the products Sales of Market
Agreem Bank
Microel Compan to polarize Principl 109.19 0.25% 600 N
ent price transfer
ectronic y was related r sheet e
s Co., Managi parties
Ltd. ng
Director
of the
compan
23
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
y
Total -- -- 109.19 -- 600 -- -- -- -- --
2. Related-party transactions arising from asset acquisition or sale
□ Applicable √ Not applicable
The Company was not involved in any related-party transactions arising from asset acquisition or sale during the
reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
The Company was not involved in any related-party transaction with joint investments during the reporting
period.
4. Credits and liabilities with related parties
√ Applicable □ Not applicable
Was there any non-operating credit or liability with any related party?
√ Yes □ No
Debts receivable from related party
Whether
has Balance at Current Current Current Balance at
non-busin period-begin newly added recovery interest period-end
Related Relationship Causes Interest rate
ess capital （RMB’000 （RMB’000 （RMB’000 （RMB’00 （RMB’00
occupying 0） 0） 0） 00） 00）
or not
The director
Shenzhen and general
Tianma manager of the
Sale
Microelectro Company was No 56.81 127.75 132.43 52.13
products
nics Co., Managing
Ltd. Director of the
company
Anhui
Huapeng Sharing Contract
No 180 90 270
Textile Co., company fee
Ltd.
Shenzhen
Sharing Contract
Dailishi No 25.75 39.43 78.89 -13.71
company fee
Underwear
24
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Co., Ltd.
Debts payable from related party
Balance at Current Current Current Balance at
period-begin newly added recovery interest period-end
Related Relationship Causes Interest rate
（RMB’0000 （RMB’0000 （RMB’0000 （RMB’0000 （RMB’0000
） ） ） ） ）
Shenzhen Xinfang Sharing Current a
24.48 24.48
Knitting Co., Ltd. company mount
Shenzhen
Sharing Current a
Xiangjiang 4 4
company mount
Trade Co., Ltd
Shenzhen
Changlianfa
Sharing Current a
Printing & 58.46 40.25 98.71
company mount
dyeing Co.,
Ltd.
Shenzhen
Haohao Sharing Current a
347.95 30 377.95
Property company mount
Leasing Co., Ltd
Yehui
Sharing Current a
International 107.15 -0.03 107.12
company mount
Co., Ltd.
Shengbo（HK） Sharing Current a
31.5 31.5
Co., Ltd. company mount
Shenzhen
Shenchao Controlled
Interest
Technology by the same 3,280.65 375.52 3,656.17
payable
Investment Co., party
Ltd.
5. Other related-party transactions
√Applicable □ Not applicable
To ensure the construction progress of polarizer with TFT-LCD, Shenzhen Shengbo Optoelectronic
Technology Co., Ltd., Shenzhen Shenchao Technology Investment Co., Ltd. and Shenzhen Development Bank,
Shenzhen Branch, First Tower Subbranch signed “Contract on Consigned Loan”, of whose main content is:
Shenzhen Shenchao Technology Investment Co., Ltd applied to the bank for 200 million RMB of construction of
dedicated plant and auxiliary projects for polarizer with TFT-LCD for Shenzhen Shengbo Optoelectronic
Technology Co., Ltd The term of the loan is 108 months from the day when the first installment of entrusted loan
25
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
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%. As of June 30,2015,The Company actually
received a loan of RMB 160 million.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
http//www.cninfo.com.cn. Announcement
Announcement of related Transactions December 12, 2009
No.2009-55
Announcement of Resolutions of the Second http//www.cninfo.com.cn. Announcement
December 30,2009
provisional shareholders’ general meeting No.2009-57
Announcement of related Transactions http//www.cninfo.com.cn. Announcement
July 1, 2010
progress No.2010-26
VIII. Particulars about the non-operating occupation of funds by the controlling shareholder
and other related parties of the Company
□ Applicable √ Not applicable
The Company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period..
IX. Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□ Applicable √ Not applicable
There was no any trusteeship of the Company in the reporting period.
(2) Contract
□ Applicable √ Not applicable
There was no any contract of the Company in the reporting period.
(3) Lease
□ Applicable √ Not applicable
There was not involved in any lease of the Company in the reporting period.
2. Guarantees provided by the company
□ Applicable √ Not applicable
There was not involved in any guarantees of the Company in the reporting period.
26
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
3. Other significant contracts
□ Applicable √ Not applicable
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
□ Applicable √ Not applicable
There was no other significant transaction of the Company in the reporting period.
X. 1.Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period or such commitments carried down into the reporting period
√Applicable □ Not applicable
Time of
Commitmen Peiod of
Commitment Contents making Fulfillment
t maker commitment
commitment
As Shenzhen Investment Holdings Co., Ltd., the
controlling shareholder of the company,
committed when the restricted-for-sale shares
from the shares restructuring were listed for
circulation in the market: i. if they plan to sell the
shares through the securities exchange system in
Shenzhen
the future, and the decrease of the shares they
Commitment on Investment August 4, Sustained and Under
hold reaches 5% within 6 months after the first
share reform Holdings 2006 effective Fulfillment
decrease, they will disclose an announcement
Co., Ltd.
indicating the sale through the company within
two trading days before the first decrease; ii. They
shall strictly observe the “Guidelines on Transfer
of Restricted-for-sale Original Shares of Listed
Companies” and the provisions of the relevant
business principles of Shenzhen Stock Exchange.
Commitment in
the acquisition
report or the
report on equity
changes
Commitment
made upon the
assets replacement
Shenzhen Shenzhen Investment Holdings Co., Ltd. signed a
Commitments October 9, Sustained and Under
Investment “Letter of Commitment and Statement on
made upon 2009 effective Fulfillment
Holdings Horizontal Competition Avoidance” when the
27
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
issuance Co., Ltd. company issued non-public stocks in 2009.
Pursuant to the Letter of Commitment and
Statement, Shenzhen Investment Holdings Co.,
Ltd. and its wholly owned subsidiary, subsidiaries
under control or any other companies that have
actual control of it shall not be involved in the
business the same as or similar to those Shenzhen
Textile currently or will run in the future, or any
businesses or activities that may constitute direct
or indirect competition with Shenzhen Textile; if
the operations of Shenzhen Investment Holdings
Co., Ltd. and its wholly owned subsidiaries,
subsidiaries under control or other companies that
have actual control of it compete with Shenzhen
Textile in the same industry or contradict the
interest of the issuer in the future, Shenzhen
Investment Holdings Co., Ltd. shall urge such
companies to sell the equity, assets or business to
Shenzhen Textile or a third party; when the
horizontal competition may occur due to the
business expansion concurrently necessary for
Shenzhen Investment Holdings Co., Ltd. and its
wholly owned subsidiaries, subsidiaries under
control or other companies that have actual
control of it and Shenzhen Textile, Shenzhen
Textile shall have priority.
The commitments during the period non-public
issuance in 2012: 1. Shenzhen Investment
Holdings, as the controlling shareholder of
Shenzhen Textile, currently hasn't the production
and business activities of inter-industry
competition with Shenzhen Textile or its
share-holding subsidiary. 2. Shenzhen Investment
Shenzhen Holdings and its share-holding subsidiaries or
Investment other enterprises owned the actual control rights July 14, Sustained and Under
Holdings can't be directly and indirectly on behalf of any 2012 effective Fulfillment
Co., Ltd. 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.
28
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
If there will be the situation of inter-industry
competition with Shenzhen Textile for Shenzhen
Investment Holdings and its share-holding
subsidiaries or other enterprises owned the actual
control rights in the future, Shenzhen Investment
Holdings will promote the related enterprises to
avoid the inter-industry competition through the
transfer of equity, assets, business and other ways.
4. Above commitments will be continuously
effective and irrevocable during Shenzhen
Investment Holdings as the controlling
shareholder of Shenzhen Textile or indirectly
controlling Shenzhen Textile.
Shenzhen Commitment to non-public offering during the se
Investment cond phase project of Shen Textile shares subscri March 25, March 25, Under
Holdings bed lock handle, locking Shen Textile non-public 2013 2016 Fulfillment
Co., Ltd. offering on the stock market of 36 months.
Other
commitments
made to minority
shareholders
Executed timely
Yes
or not?
Detailed person
for failing to
No
execute and the
next plan( If any)
XI. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
XII. Punishment and Rectification
□ Applicable √ Not applicable
There was no any punishment and rectification of the Company in the reporting period.
XIII. Reveal of the delisting risks of illegal or violation
□ Applicable √ Not applicable
There was no any delisting risk of illegal or violation of the Company in the reporting period.
29
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
XIV. Explanation about other significant matters
□ Applicable √ Not applicable
There was no any other significant matters of the Company in the reporting period.
30
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
VI. Change of share capital and shareholding of Principal Shareholders
(I).Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
1.Shares with
conditional 51,527,726 10.17% 0 0 51,527,726 10.17%
subscription
2.State-owned legal
51,457,976 10.16% 51,457,976 10.16%
person shares
3.Other domestic
69,750 0.01% 69,750 0.01%
shares
Domestic Nature
69,750 0.01% 0 0 69,750 0.01%
shares
II.Shares with
unconditional 454,994,123 89.83% 0 0 454,994,123 89.83%
subscription
1.Common shares in
405,563,873 80.07% 0 0 405,563,873 80.07%
RMB
2.Foreign shares in
49,430,250 9.76% 0 0 49,430,250 9.76%
domestic market
III. Total of capital
506,521,849 100.00% 0 0 506,521,849 100.00%
shares
Reasons for share changed:
□ Applicable √ Not applicable
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
31
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In shares
Total number of preferred
Total number of common
shareholders that had restored the
shareholders at the end of the 24,710 0
voting right at the end of the
reporting period
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Number os share pledged/frozen
Amount of
Proportion of shares Changes in of
Nuture of un-restricte
Shareholders of shares held at reporting restricted
shareholder d shares State of share Amount
held（%） period period shares
held
-end held
Shenzhen
State-owned 234,069,4 51,457,97 182,611,46
Investment 46.21%
legal person 36 6 0
Holdings Co., Ltd.
Qianhai Life
insurance Co., Ltd. 19,681,11
Other 3.89% 10,454,367 19,681,116
－Self funds Huatai 6
Portfolio
Shenzhen Shenchao
State-owned 16,129,03
Technology 3.18% 16,129,032
Legal person 2
Investment Co., Ltd.
Penghua
Assets-SPDB－
Penghua Assets Other 1.10% 5,585,827 5,585,827 5,585,827
Jinrun No.2 Assets
Management Plant
Anhui Guofu
Domestic non
Industrial
State-ow
Investment Funds 0.73% 3,708,341 1,238,500 3,708,341
ned
Mangement Co.,
Legal person
Ltd.
32
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Domestic
Ying Shuai 0.68% 3,439,169 3,207,969 3,439,169
Nature person
Domestic
Sun Huiming 0.48% 2,432,526 436,179 2,432,526
Nature person
Domestic
Liu Na 0.46% 2,340,000 2,292,400 2,340,000
Nature person
Domestic
Xia Keyun 0.43% 2,179,950 2,179,950 2,179,950
Nature person
MORGAN
STANLEY & CO. Foreign Legal
0.41% 2,084,124 2,084,124 2,084,124
INTERNATIONAL person
PLC
Strategy investors or general legal
person becomes top 10 shareholders
N/A
due to rights issued (if any )(See
Notes 3)
Shenzhen Shenchao Technology Investment Co., Ltd. is a wholly-owned subsidiary of
Shenzhen Investment Holding Co., Ltd. and a person taking concerted action. Except this, the
Explanation on shareholders Company did not whether there is relationship between the top ten shareholders holding
participating in the margin trading non-restricted negotiable shares and between the top ten shareholders holding non-restricted
business 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 Share type
Name of the shareholder
of the reporting period Share type Quantity
Shenzhen Investment Holdings Co.,
182,611,460 RMB Common shares 182,611,460
Ltd.
Qianhai Life insurance Co., Ltd.－
19,681,116 RMB Common shares 19,681,116
Self funds Huatai Portfolio
Shenzhen Shenchao Technology
16,129,032 RMB Common shares 16,129,032
Investment Co., Ltd.
Penghua Assets-SPDB－Penghua
Assets Jinrun No.2 Assets 5,585,827 RMB Common shares 5,585,827
Management Plant
Anhui Guofu Industrial Investment
3,708,341 RMB Common shares 3,708,341
Funds Mangement Co., Ltd.
Ying Shuai 3,439,169 RMB Common shares 3,439,169
Sun Huiming 2,432,526 Foreign shares placed in 2,432,526
33
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
domestic exchange
Liu Na 2,340,000 RMB Common shares 2,340,000
Xia Keyun 2,179,950 RMB Common shares 2,179,950
MORGAN STANLEY & CO. Foreign shares placed in
2,084,124 2,084,124
INTERNATIONAL PLC 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, the
among the top 10 shareholders of 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.
Explanation on shareholders
participating in the margin trading N/A
business(if any )(See Notes 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
III. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
IV. Particulars on shareholding increase scheme during the reporting period proposed or
implemented by the shareholders and act-in-concert persons
□ Applicable √ Not applicable
Within the scope known to the Company, there was no any shareholding increase scheme during the reporting
period proposed or implemented by the shareholders and act-in-concert persons.
34
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
35
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□ Applicable √ Not Applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2014 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Director, Board
Wang Bin Left January 12, 2015 For the change of work
Chairman
Zhu Jun Board Chairman Elected January 16,2015 Post leaving of the former chairman of the board
Li Jiang Board secretary Dismissal January 16,2015 For the change of the company’s internal work
Jiang Peng Board secretary Hired January 16,2015 The change of the former secretary of the board’s work
Lou Chao Director Left April 14,2015 For retirement
Chairman of the
Lin Lebo supervisory Left April 14, 2015 For the change of work
Committee
Deputy General
Zhang Hong Dismissal June 19, 2015 For resign of personal reasons
Manager
Lin Lebo Director Elected May 20,2015 Post leaving of the former director
Chairman of the
Post leaving of the former chairman of the supervisory
Wang Weixing supervisory Elected May 20,2015
board
Committee
36
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
IX. 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.
June 30,2015
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 641,871,709.14 1,101,771,561.28
Settlement provision
Outgoing call loan
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 15,909,527.03 43,412,635.19
Account receivable 219,916,469.39 156,123,570.35
Prepayments 38,589,722.89 27,075,094.81
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable 16,568,419.90 13,357,311.32
Dividend receivable 266,634.33
Other account receivable 19,244,830.13 41,843,377.39
37
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Repurchasing of financial assets
Inventories 262,577,684.92 230,659,122.24
Assets held for sales
Non-current asset due in 1 year
Other current asset 460,000,000.00
Total of current assets 1,674,944,997.73 1,614,242,672.58
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset 46,391,978.27 87,592,297.11
Expired investment in possess
Long-term receivable
Long term share equity investment 21,280,537.16 20,795,057.33
Property investment 137,617,619.25 140,905,275.45
Fixed assets 791,655,098.34 824,871,367.33
Construction in progress 86,237,203.21 79,822,149.34
Engineering material
Fixed asset disposal 118,410.20
Production physical assets
Gas & petrol
Intangible assets 41,216,348.56 41,771,402.89
R & D petrol
Goodwill 9,614,758.55 9,614,758.55
Long-germ expenses to be amortized 774,027.42 560,877.06
Differed income tax asset 1,964,405.93 2,607,644.23
Other non-current asset
Total of non-current assets 1,136,870,386.89 1,208,540,829.29
Total of assets 2,811,815,384.62 2,822,783,501.87
Current liabilities
Short-term loans 22,411,429.66 24,676,594.72
Loan from Central Bank
Deposit received and hold for others
Call loan received
Financial liabilities measured at fair
value with variations accounted into
38
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
current income account
Derivative financial liabilities
Bill payable
Account payable 203,888,612.12 153,026,682.35
Advance payment 58,414,496.29 41,135,510.00
Selling of repurchased financial assets
Fees and commissions receivable
Employees’ wage payable 27,133,054.56 37,736,705.46
Tax payable -44,911,571.56 -52,835,820.86
Interest payable 36,606,215.52 33,037,218.68
Dividend payable
Other account payable 107,029,029.70 112,654,863.06
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Liabilities held for sales
Non-current liability due in 1 year 35,346,136.30 75,346,136.30
Other current liability
Total of current liability 445,917,402.59 424,777,889.71
Non-current liabilities：
Long-term loan 124,653,863.70 124,653,863.70
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Long-term payable employees’s
remuneration
Special payable
Expected liabilities
Deferred income 65,926,431.57 66,546,079.96
Deferred income tax liability 768,871.72 10,556,420.24
Other non-current liabilities
Total non-current liabilities 191,349,166.99 201,756,363.90
39
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Total of liability 637,266,569.58 626,534,253.61
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 1,585,130,051.37 1,585,130,051.37
Less：Shares in stock
Other comprehensive income 4,020,656.29 33,389,117.46
Special reserves
Surplus reserves 64,403,027.10 64,403,027.10
Common risk provision
Undistributed profit 14,473,231.28 6,805,203.33
Total of owner’s equity belong to the
2,174,548,815.04 2,196,249,248.26
parent company
Minority shareholders’ equity
Total of owners’ equity 2,174,548,815.04 2,196,249,248.26
Total of liabilities and owners’ equity 2,811,815,384.62 2,822,783,501.87
Legal Representative:Zhu Jun
Person in charge of accounting：Zhu Jun
Accounting Dept Leader: Mu Linying
2. Balance sheet of Parent Company
In RMB
Items Year-end balance Year-beginning balance
Current asset：
Monetary fund 260,765,059.55 457,379,886.16
Financial assets measured at fair value
with variations accounted into current
income account
Derivative financial assets
Bill receivable 1,800,000.00
Account receivable 907,687.39 468,887.97
40
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Prepayments 1,754,880.00 2,771,374.00
Interest receivable 11,787,531.45 10,640,957.35
Dividend receivable 266,634.33
Other account receivable 65,055,855.72 64,581,392.46
Inventories
Assets held for sales
Non-current asset due in 1 year
Other current asset 260,000,000.00
Total of current assets 600,537,648.44 537,642,497.94
Non-current assets：
Disposable financial asset 43,091,978.27 84,292,297.11
Expired investment in possess
Long-term receivable
Long term share equity investment 1,798,137,045.25 1,797,651,565.42
Property investment 129,924,936.45 132,976,776.39
Fixed assets 27,218,949.06 27,002,348.21
Construction in progress 36,129,904.19 31,482,502.19
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 1,520,380.83 1,627,715.16
R & D petrol
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 2,610,328.91 3,061,417.30
Other non-current asset
Total of non-current assets 2,038,633,522.96 2,078,094,621.78
Total of assets 2,639,171,171.40 2,615,737,119.72
Current liabilities
Short-term loans
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
41
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Bill payable
Account payable 411,743.57 411,743.57
Advance payment 639,024.58 639,024.58
Employees’ wage payable 4,404,253.90 5,878,352.45
Tax payable 14,355,695.32 6,660,135.95
Interest payable
Dividend payable
Other account payable 71,023,869.64 67,479,912.27
Liabilities held for sales
Non-current liability due in 1 year
Other current liability
Total of current liability 90,834,587.01 81,069,168.82
Non-current liabilities：
Long-term loan
Bond payable
Including：preferred stock
Sustainable debt
Long-term payable
Employees’ wage payable
Special payable
Expected liabilities
Deferred income
Deferred income tax liability 768,871.72 10,556,420.24
Other non-current liabilities
Total of Non-current liabilities 768,871.72 10,556,420.24
Total of liability 91,603,458.73 91,625,589.06
Owners’ equity
Share capital 506,521,849.00 506,521,849.00
Other equity instrument
Including：preferred stock
Sustainable debt
Capital reserves 1,576,547,069.58 1,576,547,069.58
Less：Shares in stock
Other comprehensive income 4,020,656.29 33,389,117.46
42
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Special reserves
Surplus reserves 64,403,027.10 64,403,027.10
Undistributed profit 396,075,110.70 343,250,467.52
Total of owners’ equity 2,547,567,712.67 2,524,111,530.66
Total of liabilities and owners’ equity 2,639,171,171.40 2,615,737,119.72
3.Consolidated Profit Statement
In RMB
Items Report period Same period of the previous year
I. Income from the key business 620,993,333.48 471,623,824.81
Incl：Business income 620,993,333.48 471,623,824.81
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 651,213,247.43 505,850,180.68
Incl：Business cost 588,138,026.03 434,138,124.26
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 3,546,620.66 3,584,141.74
Sales expense 5,010,699.03 5,101,502.04
Administrative expense 45,057,284.86 64,664,701.53
Financial expenses -11,273,185.63 -6,832,620.68
Asset impairment loss 20,733,802.48 5,194,331.79
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 47,591,946.43 20,023,663.46
Incl: investment gains from affiliates 1,029,521.87 541,081.40
Gains from currency exchange（“-”for
loss）
43
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
III. Operational profit（“-”for loss） 17,372,032.48 -14,202,692.41
Add ：Non-operational income 7,876,949.28 5,943,159.74
Including：Income from disposal of
300.00 52,776.17
non-current assets
Less：Non business expenses 72,988.56 3,751.62
Incl：Loss from disposal of non-current
72,965.54 3,638.02
assets
IV.Total profit(“-”for loss) 25,175,993.20 -8,263,284.29
Less：Income tax expenses 17,507,965.25 13,381,225.81
V. Net profit 7,668,027.95 -21,644,510.10
Net profit attributable to the owners of
7,668,027.95 -21,644,510.10
parent company
Minority shareholders’ equity
VI. Other comprehensive income -29,368,461.17 -11,309,349.00
Net of profit of other comprehensive inco
me attributable to owners of the parent co -29,368,461.17 -11,309,349.00
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
（II）
Other comprehensive income that will b -29,368,461.17 -11,309,349.00
e reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2.Gains and losses from changes in fair v
-29,362,645.46 -11,309,349.00
alue available for sale financial assets
3.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
4.The effective portion of cash flow hedg
es and losses
5.Translation differences in currency fina -5,815.71
44
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
ncial statements
6.Other
7.Net of profit of other comprehensive i
ncome attributable to Minority
shareholders’ equity
VII. Total comprehensive income -21,700,433.22 -32,953,859.10
Total comprehensive income attributable
-21,700,433.22 -32,953,859.10
to the owner of the parent company
Total comprehensive income attributable
minority shareholders
VIII. Earnings per share
（I）Basic earnings per share 0.015 -0.0430
(II)Diluted earnings per share 0.015 -0.0430
Legal Representative:Zhu Jun
Person in charge of accounting：Zhu Jun
Accounting Dept Leader: Mu Linying
4. Profit statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 31,527,189.03 30,655,348.44
Incl：Business cost 5,403,557.23 5,529,444.88
Business tax and surcharge 2,501,742.00 2,531,708.11
Sales expense
Administrative expense 11,342,237.91 13,207,769.32
Financial expenses -8,502,341.69 -7,772,697.14
Asset impairment loss 48,066.44 -5,108,721.37
Add：Gains from change of fir value
（“-”for loss）
Investment gain（“-”for loss） 46,906,601.48 19,366,549.89
Incl: investment gains from affiliates 1,029,521.87 541,081.40
II. Operational profit（“-”for loss） 67,640,528.62 41,634,394.53
Add ：Non-operational income 1,807,659.21 95,873.24
Including：Income from disposal of 50,105.04
45
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
non-current assets
Less：Non business expenses 13,020.92
Incl：Loss from disposal of non-current
13,020.92
assets
III.Total profit(“-”for loss) 69,435,166.91 41,730,267.77
Less：Income tax expenses 16,610,523.73 10,147,628.15
IV. Net profit（“-”for net loss） 52,824,643.18 31,582,639.62
V.Net of profit of other comprehensive i
-29,368,461.17 -11,309,349.00
ncome
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
（II）
Other comprehensive income that will b -29,368,461.17 -11,309,349.00
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2.Gains and losses from changes in fair
-29,362,645.46 -11,309,349.00
value available for sale financial assets
3.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
4.The effective portion of cash flow hed
ges and losses
5.Translation differences in currency fin
-5,815.71
ancial statements
6.Other
VI. Total comprehensive income 23,456,182.01 20,273,290.62
VII. Earnings per share：
（I）Basic earnings per share
46
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
(II)Diluted earnings per share
5. Consolidated Cash flow statement
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
554,835,392.44 497,024,089.61
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 amount from disposal
financial assets that measured by fair
value and with variation reckoned into
current gains/losses
Net increase of inter-bank fund
received
Net increase of trade financial asset
disposal
Net increase of repurchasing business
Tax returned 47,475,737.48 46,604,162.52
Other cash received from business
26,485,839.63 33,380,239.99
operation
Sub-total of cash inflow 628,796,969.55 577,008,492.12
Cash paid for purchasing of
525,580,359.12 521,676,998.47
merchandise and services
Net increase of client trade and advance
Net increase of savings n central bank
and brother company
47
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Cash paid for original contract claim
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 68,305,334.11 67,043,018.97
Taxes paid 16,544,484.93 65,076,170.79
Other cash paid for business activities 14,073,663.39 13,761,568.22
Sub-total of cash outflow from business
624,503,841.55 667,557,756.45
activities
Cash flow generated by business
4,293,128.00 -90,549,264.33
operation, net
II.Cash flow generated by investing
Cash received from investment
45,025,998.56 19,302,132.19
retrieving
Cash received as investment gains 3,097,622.52 1,418,603.30
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 300.00 53,383.91
long-term assets
Net cash received from disposal of
100,386,000.00
subsidiaries or other operational units
Other investment-related cash received 102,522,651.09
Sub-total of cash inflow due to
48,123,921.08 223,682,770.49
investment activities
Cash paid for construction of
fixed assets, intangible assets 10,618,093.36 34,306,536.40
and 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
460,057,269.91 500,000.00
activities
Sub-total of cash outflow due to
470,675,363.27 34,806,536.40
investment activities
Net cash flow generated by investment -422,551,442.19 188,876,234.09
III.Cash flow generated by financing
Cash received as investment
48
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Incl: Cash received as investment from
minor shareholders
Cash received as loans 29,117,865.82 27,190,685.66
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
29,117,865.82 27,190,685.66
activities
Cash to repay debts 71,152,714.60 18,073,479.58
Cash paid as dividend, profit, or
56,000.00
interests
Incl: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to
71,152,714.60 18,129,479.58
financing activities
Net cash flow generated by financing -42,034,848.78 9,061,206.08
IV. Influence of exchange rate
336,040.92 826,612.36
alternation on cash and cash equivalents
V.Net increase of cash and cash
-459,957,122.05 108,214,788.20
equivalents
Add: balance of cash and cash
1,098,232,359.02 943,913,951.68
equivalents at the beginning of term
VI ..Balance of cash and cash
638,275,236.97 1,052,128,739.88
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
32,013,712.91 30,326,814.40
rending of services
Tax returned
Other cash received from business
12,681,386.83 24,230,912.08
operation
Sub-total of cash inflow 44,695,099.74 54,557,726.48
Cash paid for purchasing of
1,857,076.51 2,401,752.48
merchandise and services
49
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Cash paid to staffs or paid for staffs 7,190,038.46 9,047,048.85
Taxes paid 11,472,508.80 59,798,641.79
Other cash paid for business activities 3,921,092.66 12,680,084.68
Sub-total of cash outflow from business
24,440,716.43 83,927,527.80
activities
Cash flow generated by business
20,254,383.31 -29,369,801.32
operation, net
II.Cash flow generated by investing
Cash received from investment
45,025,998.56 19,302,132.19
retrieving
Cash received as investment gains 3,097,622.52 1,418,603.30
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 50,105.04
long-term assets
Net cash received from disposal of
100,386,000.00
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
48,123,621.08 121,156,840.53
investment activities
Cash paid for construction of
fixed assets, intangible assets 4,992,831.00 3,242,418.00
and other long-term assets
Cash paid as investment
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
260,000,000.00
activities
Sub-total of cash outflow due to
264,992,831.00 3,242,418.00
investment activities
Net cash flow generated by investment -216,869,209.92 117,914,422.53
III.Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing
activities
50
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Cash to repay debts
Cash paid as dividend, profit, or
interests
Other cash paid for financing activities
Sub-total of cash outflow due to
financing activities
Net cash flow generated by financing
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-196,614,826.61 88,544,621.21
equivalents
Add: balance of cash and cash
457,379,886.16 365,620,681.34
equivalents at the beginning of term
VI ..Balance of cash and cash
260,765,059.55 454,165,302.55
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
51
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity instrusment Minor Total of
Items
Less: Other Common
Share Capital Specialized Surplus Attributable shareholder owners’
preferred Shares in Comprehen risk
Capital reserves reserve reserves profit s’ equity equity
Sustainab Other
stock stock sive Income provision
le debt
I.Balance at the end of last 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
year 49.00 51.37 46 10 3 48.26
Add: Change of accounting
policy
Correcting of previous
errors
Merger of entities under
common control
Other
II.Balance at the beginning 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
of current year 49.00 51.37 46 10 3 48.26
III.Changed in the current -29,368,461 7,668,027.9 -21,700,433
year .17 5 .22
（1）Total comprehensive -29,368,461 7,668,027.9 -21,700,433
income .17 5 .22
（II）Investment or
decreasing of capital by
owners
52
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
1．Ordinary Shares investe
d by hareholders
2．Holders of other equity
instruments invested capital
3．Amount of shares paid
and accounted as owners’
equity
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
2.Providing of common
risk provisions
3．Allotment to the owners
(or shareholders)
4．Other
(IV) 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
53
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
surplus reserves.
4. Other
(V). Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of 506,521,8 1,585,130,0 4,020,656.2 64,403,027. 14,473,231. 2,174,548,8
this term 49.00 51.37 9 10 28 15.04
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity instrusment Minor Total of
Items
Other Common
share Capital Less: Shares Specialized Surplus Attributable shareholder owners’
preferred Comprehen risk
Capita reserves in stock reserve reserves profit s’ equity equity
Sustainab Other
stock sive Income provision
le debt
I.Balance at the end of last 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
year 49.00 51.37 46 10 3 48.26
Add: Change of accounting
policy
Correcting of previous
54
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
errors
Merger of entities under
common control
Other
II.Balance at the beginning 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
of current year 49.00 51.37 46 10 3 48.26
III.Changed in the current
year
（1）Total comprehensive
income
（II）Investment or
decreasing of capital by
owners
1．Ordinary Shares investe
d by hareholders
2 ．Holders of other equity
instruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital
shares)
55
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
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 term
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
IV. Balance at the end of 506,521,8 1,585,130,0 33,389,117. 64,403,027. 6,805,203.3 2,196,249,2
this term 49.00 51.37 46 10 3 48.26
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
56
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Amount in this period
Other Equity instrusment
Other
Items Other Capital Less: Shares in Specialized Surplus Total of
Attributable
Share cpaital preferred Comprehensiv
Sustainable reserves stock reserve reserves profit owners’ equity
stock e Income
debt
506,521,849. 1,576,547,069. 343,250,467 2,524,111,530.
I.Balance at the end of last 33,389,117.46 64,403,027.10
year 00 58 .52 66
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 506,521,849. 1,576,547,069. 343,250,467 2,524,111,530.
33,389,117.46 64,403,027.10
of current year 00 58 .52 66
III.Changed in the current 52,824,643.
-29,368,461.17 23,456,182.01
year 18
（1）Total comprehensive 52,824,643.
-29,368,461.17 23,456,182.01
income 18
（II）Investment or
decreasing of capital by
owners
1 ． Ordinary Shares investe
d by hareholders
2．Holders of other equity i
nstruments invested capital
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
3．Allotment to the owners
(or shareholders)
4．Other
（III）Profit allotment
1.Providing of surplus
reserves
2．Allotment to the owners
(or shareholders)
3．Other
(IV)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
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
IV. Balance at the end of 506,521,849. 1,576,547,069. 396,075,110 2,547,567,712.
4,020,656.29 64,403,027.10
this term 00 58 .70 67
Amount in last year
In RMB
Amount in last year
Other Equity instrusment
Other
Items Share Other Capital Less: Shares in Specialized Surplus Attributable Total of
preferred Comprehensiv
Capital Sustainable reserves stock reserve reserves profit owners’ equity
stock e Income
debt
506,521,849. 1,574,407,414. 301,838,839 2,466,104,611.
I.Balance at the end of last 23,534,773.29 59,801,735.10
year 00 34 .50 23
Add: Change of accounting
policy
Correcting of previous
errors
Other
II.Balance at the beginning 506,521,849. 1,574,407,414. 301,838,839 2,466,104,611.
23,534,773.29 59,801,735.10
of current year 00 34 .50 23
III.Changed in the current 41,411,628.
2,139,655.24 9,854,344.17 4,601,292.00 58,006,919.43
year 02
（1）Total comprehensive 46,012,920.
9,854,344.17 55,867,264.19
income 02
（II）Investment or
decreasing of capital by
owners
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
1 ． Ordinary Shares investe
d by hareholders
2．Holders of other equity i
nstruments invested capital
3．Allotment to the owners
(or shareholders)
4．Other
-4,601,292.0
（III）Profit allotment 4,601,292.00
0
1.Providing of surplus -4,601,292.0
4,601,292.00
reserves 0
2．Allotment to the owners
(or shareholders)
3．Other
(IV)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 2015
(V) Special reserves
1. Provided this year
2．Used this term
（VI）Other 2,139,655.24 2,139,655.24
IV. Balance at the end of 506,521,849. 1,576,547,069. 343,250,467 2,524,111,530.
33,389,117.46 64,403,027.10
this term 00 58 .52 66
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
III. Basic Information of the Company
(1)Co mpa n y P rofile
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 Textile (Holdings) 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. s
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. Approval of the financial statements reported
The financial statements have been authorized for issuance by the Board of Directors of the Group
on August 26,2015.
(2)Scope of consolidated financial statements
1.As of the end of the reporting period, there are 7 subsidiaries companies included in the consolidat
ed financial statements:Shenzhen Shengbo Optoelectronic Technology Co., Ltd., Shenzhen Lisi
Industrial Development Co., Ltd.,Shenzhen Huaqiang Hotel, Shenzhen Shenfang Property
Management Co., Ltd., Shenzhen Beaufity Garments Co., Ltd., Shenzhen Shenfang Import &
Export Co., Ltd. and Shengtou (Hongkong) Co.,Ltd.
2．The scope of consolidated financial statements this period did not change.
IV.Basis for the preparation of financial statements
（1）Basis for the preparation
The basis of the financial statements was continuous operation assumption, based on actual
transactions, in accordance with the relevant provisions of Accounting Standards for Business
Enterprises and in accordance with this Note V, "Significant accounting policies and accounting
estimates".
(2).Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that
will cause material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Specific accounting policies and accounting estimates tips: N/A
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
1. Statement on complying with corporate accounting standards
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations, operating results,
equity changes and cash flow, and other relevant information of the company.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on
December 31 as the fiscal year.
3. Operating cycle
Normalbusiness cycle is realized by the Companyin cash or cash equivalents from the purchase of
assets for mpocessing until. Less than 1 year is for the normal operating cycle in the company.
With regard to less than 1 year for the normal operating cycle, the assets realized or the liabilities
repaid at maturity within one year as of the balance sheet date shall be classified into the current
assets or the current liabilities.
4. Accounting standard money
The Company takes RMB as the standard currency for bookkeeping.
5. Accounting process method of enterprise consolidation under same and different
controlling.
（1）Enterprise merger under same control：
For a business combination involving enterprises under common control, the party that, on the
combination date, obtains control of another enterprise participating in the combination is the
absorbing party, while that other enterprise participating in the combination is a party being absorbed.
Combination date is the date on which the absorbing party effectively obtains control of the party
being absorbed.
The assets and liabilities obtained are measured at the carrying amounts as recorded by the
enterprise being combined at the combination date. The difference between the carrying amount of
the net assets obtained and the carrying amount of consideration paid for the combination (or the total
face value of shares issued) is adjusted to the capital premium in the capital reserve. If the balance of
the capital premium is insufficient, any excess is adjusted to retained earnings.
The cost of a combination incurred by the absorbing party includes any costs directly attributable to
the combination shall be recognized as an expense through profit or loss for the current period when
incurred.
Accounting Treatment of the Consolidated Financial Statements:
The long-term equity investment held by the combining party before the combination will change if
the relevant profit and loss, other comprehensive income and other owner equity are confirmed
between the ultimate control date and the combining date for the combining party and the combined
party on the acquirement date, and shall respectively offset the initial retained incomes or the profits
and losses of the current period during the comparative statement.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
(2)Business combination involving entities not under common control
A business combination involving enterprises not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties both
before and after the business combination.For a business combination not involving enterprises under
common control, the party that, on the acquisition date, obtains control of another enterprise
participating in the combination is the acquirer, while that other enterprise participating in the
combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains
control of the acquiree.
The difference of the merger cost minus the fair value shares of identifiable net assets obtained by the
acquiree during the merger on the acquisition date, is recognized as the business reputation. While the
merger cost is less than the fair value shares of identifiable net assets obtained by the acquiree during
the merger, all the measurement on the identifiable assets, the liabilities, the fair value of liabilities
and the merger cost obtained by the acquiree should firstly be rechecked, and the difference shall be
recorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.
Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax, if, within the 12 months after
acquisition, additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arose from deductible temporary
difference by the acquiree can be achieved, relevant income tax assets can be recognized, and
goodwill offset. If the goodwill is not sufficient, the difference shall be recognized as profit of the
current period.
For a business combination not involving enterprise under common control, which achieved in
stages that involves multiple exchange transactions, according to “The notice of the Ministry of
Finance on the issuance of Accounting Standards Interpretation No. 5” (CaiKuai [2012] No. 19) and
Article51 of “Accounting Standards for Business Enterprises No.33 - Consolidated Financial
Statements” on the “package deal” criterion, to judge the multiple exchange transations whether they
are the"package deal". If it belong to the “package deal” in reference to the preceding paragraphs of
this section and “long-term investment” accounting treatment, if it does not belong to the “package
deal” to distinguish the individual financial statements and the consolidated financial statements
related to the accounting treatment:
In the individual financial statements, the total value of the book valueoftheacquiree's equity
investment before the acquisition date and the cost of new investment at the acquisition date, as the
initial cost of the investment, the acquiree's equity investment before the acquisition date involved in
other comprehensive income, in the disposal of the investment will be in other comprehensive
income associated with the use of infrastructure and the acquiree directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the defined benefit plan acquiree is remeasured net changes in net assets or
liabilities other than in the corresponding share of the lead, and the rest into the current investment
income).
In the combination financial statements, the equity interest in the acquiree previously held before the
acquisition date re-assessed at the fair value at the acquisition date, with any difference between its
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
fair value and its carrying amount is recorded as investment income.The previously-held equity
interest in the acquiree involved in other comprehensive income and other comprehensive income
associated with the purchase of the foundation should be used party directly related to the disposal of
assets or liabilities of the same accounting treatment (that is, except in accordance with the equity
method of accounting in the acquiree is remeasured defined benefit plans other than changes in net
liabilities or net assets due to a corresponding share of the rest of the acquisition date into current
investment income).
6.Preparation of the consolidated financial statements
(1)The scope of consolidation
The scope of consolidation for the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as to
obtain benefits from its operating activities. The relevant events refer to the activities that have
significant influence on the return to the invested party. In accordance with the specific conditions,
the relevant events of the invested party should conclude the sale and purchase of goods and services,
the management of the financial assets, the purchase and disposal of the assets, the research and
development activities, the financing activities and so on.
The scope of consolidation includes the Company and all of the subsidiaries. Subsidiary is an
enterprise or entity under the control of the Company.
Once the change in the relevant facts and circumstances leading to the definition of the relevant
elements involved in the control of the change, the company will be re-evaluated.
( 2)Preparation of the consolidated financial statements.
The Company based on its own and its subsidiaries financial statements, in accordance with other
relevant information, to prepare the consolidated financial statements.
For a subsidiary acquired through a business combination not under common control, the operating
results and cash flows from the acquisition (the date when the control is obtained) are included in the
consolidated income statement and consolidated statement of cash flows, as appropriated; no
adjustment is made to the opening balance and comparative figures in the consolidated financial
statements. Where a subsidiary and a party being absorbed in a merger by absorption was acquired
during the reporting period, through a business combination involving enterprises under common
control, the financial statements of the subsidiary are included in the consolidated financial
statements. The results of operations and cash flow are included in the consolidated balance sheet and
the consolidated income statement, respectively, based on their carrying amounts, from the date that
common control was established, and the opening balances and the comparative figures of the
consolidated financial statements are restated.
When the accounting period or accounting policies of a subsidiary are different from those of the
Company, the Company makes necessary adjustments to the financial statements of the subsidiary
based on the Company’s own accounting period or accounting policies. Where a subsidiary was
acquired during the reporting period through a business combination not under common control, the
financial statements was reconciliated on the basis of the fair value of identifiable net assets at the
date of acquisition.
Intra-Group balances and transactions, and any unrealized profit or loss arising from intra-Group
65
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
transactions, are eliminated in preparing the consolidated financial statements.
Minority interest and the portion in the net profit or loss not attributable to the Company are
presented separately in the consolidated balance sheet within shareholders’/ owners’ equity and net
profit. Net profit or loss attributable to minority shareholders in the subsidiaries is presented
separately as minority interest in the consolidated income statement below the net profit line item.
When the amount of loss for the current period attributable to the minority shareholders of a
subsidiary exceeds the minority shareholders’ portion of the opening balance of shareholders’/equity
of the subsidiary, the excess is allocated against the minority interests.
When the Company loses control of a subsidiary due to the disposal of a portion of an equity
investment or other reasons, the remaining equity investment is re-measured at its fair value at the
date when control is lost. The difference between 1) the total amount of consideration received from
the transaction that resulted in the loss of control and the fair value of the remaining equity
investment and 2) the carrying amounts of the interest in the former subsidiary’s net assets
immediately before the loss of the control is recognized as investment income for the current period
when control is lost. Other comprehensive income related to the former subsidiary's equity
investment, using the foundation and the acquiree directly related to the disposal of the same assets or
liabilities are accounted when the control is lost(ie, in addition to the former subsidiary is remeasured
at the net defined benefit plan or changes in net assets and liabilities resulting from, the rest are
transferred to the current investment income). The retained interest is subsequently measured
according to the rules stipulated in the - “Chinese Accounting Standards for Business Enterprises
No.2 - Long-term equity investment” or “Chinese Accounting Standards for Business Enterprises
No.22 - Determination and measurement of financial instruments”.
The company through multiple transactions step deal with disposal of the subsidiary's equity
investment until the loss of control, need to distinguish between equity until the disposal of a
subsidiary's loss of control over whether the transaction is package deal. Terms of the transaction
disposition of equity investment in a subsidiary, subject to the following conditions and the economic
impact of one or more of cases, usually indicates that several transactions should be accounted for as
a package deal:①these transactions are considered。simultaneously, or in the case of mutual influence
made, ②these transactions as a whole in order to achieve a complete business results; ③the
occurrence of a transaction depends on occurs at least one other transaction; ④a transaction look
alone is not economical, but when considered together with other transaction is economical.
If they does not belong to the package deal, each of them separately, as the case of a transaction in
accordance with “without losing control over the disposal of a subsidiary part of a long-term equity
investments“principles applicable accounting treatment. Until the disposal of the equity investment
loss of control of a subsidiary of the transactions belonging to the package deal, the transaction will
be used as a disposal of a subsidiary and the loss of control of the transaction. However, before losing
control of the price of each disposal entitled to share in the net assets of the subsidiary 's investment
corresponding to the difference between the disposal, recognized in the consolidated financial
statements as other comprehensive income, loss of control over the transferred together with the loss
of control or loss in the period.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
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7.Joint venture arrangements classification and Co-operation accounting treatment
(1)Joint arrangement
A joint arrangement is an arrangement of which two or more partieshave joint control，depending of
the rights and obligation of the Company in the joint arrangement. A joint operation is a joint
arrangement whereby the Company has rights to the assets, andobligations for the liabilities, relating
to the arrangement. A joint venture is a joint arrangement whereby the Company has rights to the net
assets of thearrangement.
(2)Co-operation accounting treatment
When the joint venture company for joint operations, confirm the following items and share commo
n business interests related to:
（1）Confirm individual assets and common assets held based on shareholdings;
（2）Confirm individual liabilities and shared liabilities held based on shareholdings;
（3）Confirm the income from the sales revenue of co-operate business output
（4）Confirm the income from the sales of the co-operate business output based on shareholdings;
（5）Confirm the individual expenditure and co-operate business cost based on shareholdings.
(3)When a company is a joint ventures, joint venture investment will be recognized as long-term equi
ty investments .
8.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand, ready usable deposits and
investments having short holding term (normally will be due within three months from the day of
purchase), with strong liquidity and easy to be exchanged into certain amount of cash that can be
measured reliably and have low risks of change.
9.Foreign Currency Transaction
（1）Foreign Currency Transaction
The approximate shot exchange rate on the transaction date is adopted and translated as RMB
amount when the foreign currency transaction is initially recognized. On the balance sheet date, the
monetary items of foreign currency are translated as per the shot exchange rate on the balance sheet
date, the foreign exchange conversion gap due to the exchange rate, except for the balance of
exchange conversion arising from special foreign currency borrowings capitals and interests for the
purchase and construction of qualified capitalization assets, shall be recorded into the profits and
losses of the current period. The non-monetary items of foreign currency measured at the historical
cost shall still be translated at the spot exchange rate on the transaction date, of which the RMB
amount shall not be changed. The non-monetary items of foreign currency measured at the fair
value shall be translated at the spot exchange rate on the fair value recognized date, the gap shall be
recorded into the current profits and losses or other comprehensive incomes.
(2) Translation Method of Foreign Currency Financial Statement
For the assets and liabilities in the balance sheet, the shot exchange rate on the balance sheet date is
67
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
adopted as the translation exchange rate. For the owner’s equity, the shot exchange rate on the
transaction date is adopted as the translation exchange rate, with the exception of “undistributed
profits”. The incomes and expenses in the income statement shall be translated at the spot exchange
rate or the approximate exchange rate on the transaction date. The translation gap of financial
statement of foreign currency converted above shall be listed in other comprehensive incomes under
the owner’s equity in the consolidated balance sheet.
10.Financial tools
One financial asset or financial liability shall be recognized when the company becomes the party in
the financial instrument contract. The financial assets and the financial liabilities are measured at the
fair value in the initial recognition. For the financial assets and liabilities that measured at the fair
values and the variation included in the current profits and losses, the relative transaction expenses
shall be directly recorded into the profits and losses. For the financial assets and liabilities of other
categories, the expenses related to transactions are recognized as initial amount.
1 Determination of financial assets and liabilities’ fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s length transaction. For a financial instrument which has an
active market, the Company uses quoted price in the active market to establish its fair value. The
quoted price in the active market refers to the price that can be regularly obtained from exchange
market, agencies, industry associations, pricing authorities; it represents the fair market trading price
in the actual transaction. For a financial instrument which does not have an active market, the
Company establishes fair value by using a valuation technique. Valuation techniques include using
recent arm’s length market transactions between knowledgeable, willing parties, reference to the
current fair value of another instrument that is substantially the same, discounted cash flow analysis
and option pricing models.
2. Classification, recognition and measurement of financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date
basis. On initial recognition, the Company’s financial assets are classified into including financial
assets at fair value though profit or loss, held-to maturity investments, loans and receivables and
available-for-trade assets.
（1） Financial assets at fair value through profit or loss:
Including financial assets held-for-trade and financial assets designated at fair value through profit or
loss.Financial asset held-for-trade is the financial asset that meets one of the following conditions:
A. the financial asset is acquired for the purpose of selling it in a short term;
B. the financial asset is a part of a portfolio of identifiable financial instruments that are collectively
managed, and there is objective evidence indicating that the enterprise recently manages this portfolio
for the purpose of short-term profits;
C. the financial asset is a derivative, except for a derivative that is designated and effective hedging
instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair
68
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
value cannot be reliably measured. For such kind of financial assets, fair values are adopted for
subsequent measurement.
Financial asset is designated on initial recognition as at fair value through profit or loss only when it
meets one of the following conditions:
A. the designation eliminates or significantly reduces the inconsistency in the measurement or
recognition of relevant gains or losses that would otherwise arise from measuring the financial
instruments on different bases.
B. a Group of financial instruments is managed and its performance is evaluated on a fair value basis,
and is reported to the enterprise’s key management personnels. Formal documentation regarding risk
management or investment strategy has prepared。
Financial assets at fair value through profit or loss are subsequently measured at the fair value. Any
gains or losses arising from changes in the fair value and any dividends or interest income earned on
the financial assets are recognized in the profit or loss.
（2）Investment held-to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturity that an entity has the positive intention and ability to hold to maturity. Such kind
of financial assets are subsequently measured at amortized cost using the effective interest method.
Gains or losses arising from derecognition, impairment or amortization are recognized in profit or
loss for the current period.
Effective interest rate is the rate that exactly discounted estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to the
net carrying amount of the financial asset or financial liability. When calculating the effective interest
rate, the Company shall estimate future cash flow considering all contractual terms of the financial
asset or financial liability without considering future credit losses, and also consider all fees paid or
received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
（3）Loans and receivables
Loans and receivables are non-derivative financial assets with fixed determinable payment that are
not quoted in an active market. Financial assets classified as loans and receivables by the Company
include note receivables, account receivables, interest receivable dividends receivable and other
receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit
or loss.
（4）Financial assets available-for-trade
Financial assets available-for-trade include non-derivative financial assets that are designated on
initial recognition as available for trade, and financial assets that are not classified as financial assets
at fair value through profit or loss, loans and receivables or investment held-to-maturity.
Financial assets available-for-trade are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included in
the capital reserve, except that impairment losses and exchange differences related to amortized cost
69
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until
the financial assets are derecognized, at which time the gains or losses are released and recognized in
profit or loss. Interests obtained and dividends declared by the investee during the period in which the
financial assets available-for-trade are held, are recognized in investment gains.
3. Impairment of financial assets
The Group assesses at the balance sheet date the carrying amount of every financial asset except for
the financial assets that measured by the fair value. If there is objective evidence indicating a
financial asset may be impaired, a provision is provided for the impairment.
The company shall make an independent impairment test on the financial assets with significant
single amounts, and carry out an independent impairment test on the financial assets with
insignificant single amounts, or conduct an impairment-related test after they are included in a
combination of financial assets with similar credit risk features so as to carry out. Where, upon
independent test, the financial asset (including those financial assets with significant single amounts
and those with insignificant amounts) has not been impaired, it shall be included in a combination of
financial assets with similar risk features so as to conduct another impairment test. The financial
assets which have suffered from an impairment loss in any single amount shall not be included in any
combination of financial assets with similar risk features for any impairment test.
（1）Impairment on held-to maturity investment, loans and receivables
The financial assets measured by cost or amortized cost write down their carrying value by the
estimated present value of future cash flow. The difference is recorded as impairment loss. If there is
objective evidence to indicate the recovery of value of financial assets after impairment, and it is
related with subsequent event after recognition of loss, the impairment loss recorded originally can be
reversed. The carrying value of financial assets after impairment loss reversed shall not exceed the
amortized cost of the financial assets without provisions of impairment loss on the reserving date.
（2）Impairment loss on available-for-trade financial assets
Where the fair value of the equity instrument investment drops significantly or not contemporarily
according to the integrated relevant factors, an available-for-trade financial asset is impaired. The
"serious decline" refers to the cumulative fair value declines more than 30%; "non-temporary
decline" refers to the continuous decline in the fair value of time over 12 months.
When an available-for-trade financial asset is impaired, the cumulative loss arising from declining in
fair value thathad been recognized in capital reserve shall be removed and recognized in profit or loss.
The amount of the cumulative loss that is removed shall be difference between the acquisition cost
with deduction of recoverable amount less amortized cost, current fair value and any impairment loss
on that financial asset previously recognized in profit or loss.
If, after an impairment loss has been recognized, there is objective evidence that the value of the
financial asset is recovered, and it is objectively related to an event occurring after the impairment
loss was recognized, the initial impairment loss can be reversed and the reserved impairment loss on
available-for-trade equity instrument is recorded in the profit or loss, the reserved impairment loss on
available-for-trade debt instrument is recorded in the current profit or loss.
The equity instrument where there is no quoted price in an active market, and whose fair value cannot
be reliably measured, or impairment loss on a derivative asset that is linked to and must be settled by
delivery of such an unquoted equity instrument shall not be reversed.
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
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4. Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired;
2) the enterprise has transferred its rights to receive cash flows from the asset to a third party under a
pass-through arrangement; or
3) the enterprise has transferred its rights to receive cash flows from the asset and either has
transferred substantially all the risks and rewards of the asset, or has neither transferred norretained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the enterprise has neither retained all the risks and rewards from the financial asset nor control over
the asset, the asset is recognized according to the extent it exists as financial asset, and correspondent
liability is recognized. The extent of existence refers the level of risk by the financial asset changes
the enterprise is facing.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the carrying
amount of the financial asset transferred; and the sum of the consideration received from the transfer
and any cumulative gain or loss that had been recognized in other comprehensive income, is
recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part
that is derecognized, based on the relative fair value of those parts. The difference between (a) the
carrying amount allocated to the part derecognized; and (b) the sum of the consideration received for
the part derecognized and any cumulative gain or loss allocated to the part derecognized which has
been previously recognized in other comprehensive income, is recognized in profit or loss.
The Company uses recourse sale financial assets, or financial assets held endorser, determine almost
all of the risks and rewards of ownership of the financial assets have been transferred if. Has
transferred the ownership of the financial assets of almost all the risks and rewards to the transferee,
the derecognition of the financial asset; retains ownership of the financial assets of almost all of the
risks and rewards of financial assets that are not derecognised; neither transfers nor retains
ownership of the financial assets of almost all of the risks and rewards, then continue to determine
whether the enterprise retains control of the assets and the accounting treatment in accordance with
the principles described in the preceding paragraphs.
5. Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities. For financial liabilities at fair value through
profit or loss, relevant transaction costs are immediately recognized in profit or loss for the current
period, and transaction costs relating to other financial liabilities are included in the initial recognition
amounts.
(1)Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the
initial recognition to be measured by the fair value follows the same criteria as the classification by
which financial assets held-for-trade and financial assets designed at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.For the
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financial liabilities measured by the fair value and changes recorded in the profit or loss, fair values
are adopted for subsequent measurement. All the gains or losses on the change of fair value and the
expenses on dividends or interests related to these financial liabilities are recognized in profit or loss
for the current period.
（2）Other financial liabilities
Derivative financial liabilities that linked with equity instruments, which do not have a quoted price
in an active market and their fair value cannot be measured reliably, is subsequently measured by cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for
the current period.
6. Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged or cancelled or has expired. An agreement between the Company (an
existing borrower) and existing lender to replace original financial liability with a new financial
liability with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new liability.
When the Company derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability) derecognized
the consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
7. Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized
financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the
financial asset and settle the financial liability simultaneously, a financial asset and a financial
liability shall be offset and the net amount is presented in the balance sheet. Except for the above
circumstances, financial assets and financial liabilities shall be presented separately in the balance
sheet and shall not be offset.
8. Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. The consideration received from issuing equity instruments, net of
transaction costs, are added to shareholders’ equity. All types of distribution (excluding stock
dividends) made by the Company to holders of equity instruments are deducted from shareholders’
equity. The Group does not recognize any changes in the fair value of equity instruments.
11.Accounts Receivable
1.Accounts receivable with material specific amount and specific provisioned bad debt
preparation.
Judgment criteria or The Client Identifies single amount of accounts receivable that is not less than RMB 1 million as
amount standard of account receivable that are individually significant in amount. The Client Identifies single
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material specific amount amount of accounts receivable that is not less than RMB 0.5 million as account receivable that
or amount criterial：
are individually significant in amount.
Making an independent impairment test. If any objective evidence shows that it has been
impaired, the impairment-related losses shall be recognized according to the gap between its
Provision method with
material specific amount present value of future cash flow less than its book value, and the several shall be determined to
and provision of specific withdraw the bad debt provision. If there exists no the impairment after the impairment test,
bad debt preparation： they shall be included in a combination of the receivables with similar risk features so as to
withdraw the bad debt provision.
2.The accounts receivable of bad debt provisions made by credit risk Group
Name Withdrawing Method
Aging Group Aging Analysis Method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Aging Rate for receivables(%) Rate for other receivables(%)
Within 1 year（Included 1 year） 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
3－4 years 50.00% 50.00%
4－5 years 50.00% 50.00%
Over 5 years 50.00% 50.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a
portfolio
□Applicable √Not applicable
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Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons of Withdrawing Individual Bad Debt
There is any objective evidence shows that it has been impaired.
Provision
The impairment-related losses shall be recognized according to the gap
Withdrawing Method of Bad Debt Provision
between its present value of future cash flow less than its book value.
12.Inventory
1.Investories class
Inventory shall include the finished products or goods available for sale during daily activities, the
products in the process of production, the stuff and material consumed during the process of
production or the services offered.
2．Valuation method of inventory issued
The company calculates the prices of its inventories according to the weighted averages method
3. Recognition Criteria for the Net Realizable Value of Different Category of Inventory and
Withdrawing Method of Inventory Falling Price Reserves
The inventory shall be measured by use of the lower between the cost and the net realizable value and
the inventory falling price reserves shall be withdrawn as per the gap of single inventory cost minus
the net realizable value at the balance sheet date. The net realizable value refers to the amounts that
the estimated sale price of inventory minus the estimated costs ready to happen till the completion of
works, the estimated selling expenses and the relevant expenses of taxation. The company shall
recognize the net realizable value of inventory based on the acquired unambiguous evidence and in
view of the purpose to hold the inventory, the influence of matters after the balance sheet date and
other factors.
The net realizable value of inventory directly for sale shall be recognized according to the amounts of
the estimated sale price of the inventory minus the estimated sale expenses and the relevant expenses
of taxation during the process of normal production and operation. The net realizable value of
inventory that required to conduct processing shall be recognized according to the amounts of the
estimated sale price of the finished products minus the estimated costs ready to happen till the
completion of works, the estimated selling expenses and the relevant expenses of taxation. On the
balance sheet date, the net realizable value shall be respectively defined for the partial agreed with the
contract price and others without the contract price in the same inventory, and the amounts of the
inventory falling price reserves withdrawn or returned shall be respectively recognized in comparison
with their corresponding costs.
4. Inventory System:Adopts the Perpetual Inventory System
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5．Amortization method for low cost and short-lived consumable items and packaging materials
（1）Low cost and short-lived consumable items
Low cost and short-lived consumable items are amortized using immediate write-off method。
（2）Packaging materials
Packaging materials are amortized using
13.Held-for-sale assets
A non-current asset is classified as held-for-sale if all of the following conditions are satisfied:
1The asset is immediately sellable at its current condition per usual sales term applicable to the type
of assets to which it belongs；
2. the Company's has completed official decision to dispose the asset;
3. the Company has entered into irrevokable sales contract with the purchaser; and
4. the sales will be completed within one year.
Is classified as held for sale and the disposal of non current assets in the group of assets and liabilities
, are classified as current assets and current liabilities.
Termination of operation to meet one of the following conditions have been disposed of or classified
as held for sale, in the operation and the preparation of the financial statements to be able to differenti
ate the components alone in the company within:
1. This part of main business represents an independent or a main business area;
2. This part of the proposed disposal plans for a major business independent or a main business area;
3 . This part is just to sell again and made subsidiary.
For the fixed assets held for sale, the company shall adjust the estimated net residual value of the
fixed assets in order to make it reflecting the amount after the disposal costs deducted from the fair
value, which doesn’t exceed the original book value of the fixed assets when the condition of holding
for sale is met. The impairment losses of the assets shall be regarded and recorded into the current
profits and losses if the original book value is more than the balance of the estimated net residual
value after adjusting.
The assets or the disposal group held for sale no longer meet the recognized requirements of the fixed
assets held for sale, the company shall terminate the classification of held-for-sale and measure based
on the less one between the following amounts: (1) the amounts after adjusted for the assets or the
disposal group classified as the book value before the held-for-sale according to the originally
confirmed depreciation, amortization or impairment when supposed that have not classified as the
held-for-sale. (2) the returned amounts that can’t be re-sold.
The intangible assets and other non-current assets held for sale shall be treated as per above
principles.
14.Long-term equity investments
Long-term equity investments referred to in this section refer to the Company invested entity has
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control, joint control or significant influence over the long-term equity investments. The Company
invested does not have control, joint control or significant influence over the long-term equity
investments as financial assets available for sale or at fair value and the changes included financial
assets through profit or loss.
Joint control is the Company control over an arrangement in accordance with the relevant stipulations
are common, related activities and the arrangement must be after sharing control participants agreed
to the decision-making. Significant influence is the Company s financial and operating policies of the
entity has the right to participate in decision-making, but can not control or with other parties joint
control over those policies.
1. Determination of Investment cost
The cost of a long-term equity investment acquired through business combination under common
control is measured at the acquirer's share of the combination date book value of the acquiree's net
equity in the ultimate controller's consolidated financial statements. The difference between the cost
and book value of cash paid, non-monetary assets transferred and liabilities assumed is adjusted to
capital reserves, and to retained earnings if capital reserves is insufficient. If the consideration is
transferred by way of issuing equity instruments, the face value of the equity instruments issued is
recognised in share capital and the difference between the cost of the face value of the equity
instruments issued is adjusted to capital reserves, and to retained earnings if capital reserves is
insufficient.The cost of a long-term equity investment acquired through business combination not
under common control is the fair value of the assets transferred, liabilities incurred or assumed and
equity instruments issued. (For the equity of the combined party under common control obtained
step-by-step through multiple transactions and the business combination under common control
ultimately formed, the company should respectively dispose all the transactions if belong to the
package deal. For the package deal, all the transactions will be conducted the accounting treatment as
the deal with acquisition of control. For the non-package deal, the shares of the book value of the
stockholders’ equity/owners’ equity of the combined party in the consolidated financial statements of
the ultimate control party shall be as the initial investment cost of the long-term equity investment,
and the capital reserves shall be adjusted for the difference between the initial investment cost of
long-term equity investment and the sum of the book value of long-term equity investment before
merging and that of new consideration payment obtained on the merger date, or the retained earnings
shall be adjusted if the capital reserves are insufficient to offset. As for the equity investment held
before the merger date, the accounting treatment will not be conducted temporarily for other
comprehensive income accounted by equity method or confirmed for the financial assets available for
sale.)
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs. For the merger of enterprises not
under the same control through gaining the shares of the combined enterprise by multiple steps of
deals, it shall deal with it in the following two ways depending on that if it belongs to "a package
deal": if it belongs to "a package deal", it shall deal with all the deals as one obtaining the control
power; if it does not belong to "a package deal", it shall, on the date of merger, regard the sum of
book value of the owner’s original equity of the merged enterprise and the newly increased
investment cost as the initial cost of the long-term equity investment. For the shares originally held
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by this enterprise accounted for by weighted equity method, the relevant other comprehensive income
shall not be accounted for temporarily.If the equity investment held originally can be classified as the
financial assets for sale, the difference between the fair value and the book value, and the variation in
the accumulative fair value of other comprehensive returns recorded originally will be transferred into
the current profits and losses.
All expenses incurred directly associated with the acquisition by the acquirer, including expenditure
of audit, legal services, valuation and consultancy and other administrative expenses, are recognised
in profit or loss for the period during which the acquisition occurs.
Long-term equity investments acquired not through business combination are measured at cost on
initial recognition. Depending on the way of acquisition, the cost of acquisition can be the total cash
paid, the fair value of equity instrument issued, the contract price, the fair value or book value of the
assets given away in the case of non-monetary asset exchange, or the fair value of the relevant
long-term equity investments. The cost of acquisition of a long-term equity investment acquired not
through business combination also includes all directly associated expenses, applicable taxes and fees,
and other necessary expenses. When the significant impact or the joint control but non-control on the
invested party can be implemented due to the additional investment, the long-term equity investment
cost is the sum of the fair value of the equity investment originally held and the new investment costs
based on the recognition of “Accounting Standards for Enterprises No.22 – Recognition and
Measurement of Financial Instruments”.
2. Subsequent Measurement
To be invested joint control ( except constitute common operator ) or long-term equity investments
significant influence are accounted for using the equity method. In addition, the Company's financial
statements using the cost method of accounting for long-term equity can exercise control over the
investee.
(1)Cost method of accounting for long-term equity investments
Under the cost method, a long-term equity investment is measured at initial investment cost. Except
for cash dividends or profits declared but not yet paid that are included in the price or consideration
actually paid upon acquisition of the long-term equity investment, investment income is recognized in
the period in accordance with the attributable share of cash dividends or profit distributions declared
by the investee.
(2)Equity method of accounting for long-term equity investments
When using the equity method, the initial investment cost of long-term equity investment exceeds the
investor's net identifiable assets of the fair share of the investment value, do not adjust the initial inve
stment cost of long-term equity investment; the initial investment cost is less than the investee unit sh
are of identifiable net assets at fair value, the difference is recognized in profit or loss, while the long-
term equity investment adjustment costs.
Where the initial investment cost of a long-term equity investment exceeds the investing enterprise’s
interest in the fair values of the investee’s identifiable net assets at the time of acquisition, no
adjustment shall be made to the initial investment cost. The carrying amount of an long-term equity
investment measured using the equity method is adjusted by the Company's share of the investee's net
profit and other comprehensive income, which is recognised as investment income and other
comprehensive income respectively. The carrying amount of an long-term equity investment
measured using the equity method is reduced by profit distribution or cash dividends announced by
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the investee. The carrying amount of an long-term equity investment measured using the equity
method is also adjusted by the investee's equity movement other than net profit, other comprehensive
income and profit distribution, which is adjusted to capital reserves。The net profit of the investee is
adjusted by the fair value of the investee's identifiable assets as at acquistion. The financial statements
and hence the net profit and other comprehensive income of an investee which does not adopt
accounting policies or accounting period uniform with the Company is adjusted by the Company's
accounting policies and accounting period. The Company's share of unrealised profit or loss arising
from related party transactions between the Company and an associate or joint venture is deducted
from investment income. Unrealised loss arising from related party transactions between the
Company and an associate or joint venture which is associated with asset impairment is not adjusted.
Where assets transferred to an associate or joint venture which form part of the Company's
investment in the investee but which does not enable the Company obtain control over the investee,
the cost of the additional investment acquired is measured at the fair value of assets transferred and
the difference between the cost of the additional investment and the book value of the assets
transferred is recognised in profit or loss. Where assets transferred to an associate or joint venture
form an operation, the difference between the consideration received and the book value of the assets
transferred in recognised in profit or loss. Where assets transferred from an associate or joint venture
form an operation, the transaction is accounted for in accordance with CAS 20 - Business
Combination, any gain or loss is reocgnised in profit or loss.
The Company's share of an investee's net loss is limited by the sum of the book value of the
long-term equity investment and other net long-term investments in the investees. Where the
Company has obligation to share additional net loss of the investee, the estimatedshare of loss
recognised as accrued liabilities and investment loss. Where the Company has unrecognised share of
loss of the investee when the investee generates net profit, the Company's unrecognised share of loss
is reduced by the Company's share of net profit and when the Company's unrecognised share or loss
is eliminated in full, the Company's share of net profit, if any, is recognised as investment income.
(3)Acquisition of minority interest
The difference between newly increased equity investment due to acquisition of minority interests
and portion of net asset cumulatively calculated from the acquisition date is adjusted as capital
reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against
returned earnings.
(4)Disposal of long-term equity investment
Where the parent company disposes long-term investment in a subsidiary without a change in control,
the difference in the net asset between the amount of disposed long-term investment and the amount
of the consideration paid or received is adjusted to the owner’s equity. If the disposal of long-term
investment in a subsidiary involves loss of control over the subsidiary, the related accounting policies
in Note applies. For disposal of long-term equity investments in any situation other than the
fore-mentioned situation, the difference between the book value of the investment disposed and the
consideration received is recognised in profit or loss.
The investee's equity movement other than net profit, other comprehensive income and profit
distribution is reocgnised in profit or loss proportionate to the disposal.
Where a long-term equity investment is measured by the equity method both before and after part
disposal of the investment, cumulative other comprehensive income relevant to the investment
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recognised prior to the acquistion is treated in the same manner that the investee disposes the relevant
assets or liabilities proportionate to the disposal. The investee's equity movement other than net profit,
other comprehensive income and profit distribution is reocgnised in profit or loss proportionate to the
disposal.
Where a long-term equity investment is measured at cost both before and after part disposal of the
investment, cumulative other comprehensive income relevant to the investment recognised, as a result
of accounting by equity method or recognition and measurement principles applicable to financial
instruments, prior to the Company's acquisition of control over the investee is treated in the same
manner that the investee disposes the relevant assets or liabilities and recognised in profit or loss
proportionate to the disposal.The investee's equity movement other than net profit, other
comprehensive income and profit distribution, as a result of accounting by equity method, is
reocgnised in profit or loss proportionate to the disposal.
Where the Company's control over an investee is lost due to partial disposal of investment in the
investee and the Company continues to have significant influence over the investee after the partial
disposal, the investment in measured by the equity method in the Company's separate financial
statements; where the Company's control over an investee is lost due to partial disposal of investment
in the investee and the Company ceases to have significant influence over the investee after the
partial disposal, the investment in measured in accordance with the recognition and measurement
principles applicable to financial instruments in the Company's separate financialstatements and the
difference between the fair value and the book value of the remaining investment at the date of loss of
control is recognised in profit or loss. Cumulative other comprehensive income relevant to the
investment recognised, as a result of accounting by equity method or recognition and measurement
principles applicable to financial instruments, prior to the Company's acquisition of control over the
investee is treated in the same manner that the investee disposes the relevant assets or liabilities on
the date of loss of control. The investee's equity movement other than net profit, other comprehensive
income and profit distribution, as a result of accounting by equity method, is reocgnised in profit or
loss when control is lost. Where the remaining investment is measured by equity method, the
fore-mentioned other comprehensive income and other equity movement are recognised in profit or
loss proportionate to the disposal; Where the remaining investment is measured in accordance with
the recognition and measurement principles applicable to financial instruments, the fore-mentioned
other comprehensive income and other equity movement are recognised in profit or loss in full.
Where the Company's joint control or significant influence over an investee is lost due to partial
disposal of investment in the investee,the remaining investment in the investee is measured in
accordance with the recognition and measurement principles applicable to financial instruments, the
difference between the fair value and the book value of the remaining investment at the date of loss of
joint control or significant influence is recognised in profit or loss.Cumulative other comprehensive
income relevant to the investment recognised, as a result of accounting by equity method, prior to the
partial disposal is treated in the same manner that the investee disposes the relevant assets or
liabilities on the date of loss of joint control or significant influence. The investee's equity movement
other than net profit, other comprehensive income and profit distribution is reocgnised in profit or
loss when joint control or significant influence is lost.
Where the Company's control over an investee is lost through multiple disposals and the multiple
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disposals shall be viewed as one single transaction, the multiple disposals is accounted for one single
transaction which result in the Company's loss of control over the investee. Each difference between
the consideration received and the book value of the investment disposed is recognised in other
comprehensive income and reclassified in full to profit or loss at the time when control over the
investee is lost.
15.Investment property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
The leased buildings of the investment property in the company shall be withdrawn the depreciation
by the service life average method, and the depreciation policy is the same with that of the fixed
assets. The land use rights held and prepared to transfer after appreciation in the investment property
shall be amortized by the line method, and the specific accounting policy is same with that of the
intangible assets.
16.Fixed assets
1．The conditions of recognition
Fixed assets refers to the tangible assets that are held for the sake of producing commodities,
rendering labor service, renting or business management and their useful life is in excess of one fiscal
year. The fixed assets can be recognized when the following requirements are all met: (1) the
economic benefits relevant to the fixed assets will flow into the enterprise. (2) the cost of the fixed
assets can be measured reliably.
The fixed assets of the company include the houses and buildings, the decoration of the fixed assets,
the machinery equipment, the transportation equipment, the electronic instrument and other devices.
2．The method for depreciation
The method for Expected useful life
Category Estimated residual value Depreciation
depreciation （Year）
House and Building- Straight-line method
35 years 4.00% 2.74%
Production
House and Straight-line method
Building-Non- 40 years 4.00% 2.40%
Production
Decoration of Fixed
10 years 10.00%
assets Straight-line method
Machinery and Straight-line method 10-14 years 4.00% 9.60%-6.86%
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equipment
Transportation Straight-line method
8 years 4.00% 12.00%
equipment
Electronic equipment 8 years 4.00% 12.00%
Straight-line method
Other equipment Straight-line method 8 years 4.00% 12.00%
3．Cognizance evidence and pricing method of financial leasing fixed assets
(1) Recognition Criteria of the Fixed Assets under Financing Lease
The financing lease shall be recognized if the following one or several criteria are met: ① the
ownership of the leasing assets shall be transferred to the tenant when the expiration of lease term. ②
the tenant has the option to purchase the leasing assets, and the made purchase price is expected to be
far less than the fair value of the leasing assets in the implementation of the option. Thus, it can be
reasonably recognized that the tenant will implement the option on the lease date. ③ the ownership
of assets is not transferred, but the lease term shall be the most of the life of the lease assets. ④ the
least present value of the lease payment of the tenant and the least present value of the lease receipts
on the lease date almost equal to the fair value of the leasing assets on the lease date respectively. ⑤
the leasing assets have the special nature, and only the tenant can use if there is no major
modifications.
(2) Valuation of Fixed Assets Acquired under Finance Leases: the fixed assets acquired under finance
leases shall be bookkept according to the lower between the fair value of the leasing assets and the
least lease payment on the lease date.
(3) Depreciation Method of Fixed Assets Acquired under Finance Leases: the depreciation shall be
withdrawn for the fixed assets acquired under finance leases as per the depreciation policy of own
fixed assets.
17.Construction in progress
1. The projects under construction shall be recognized when the economic benefits may flow into and
the cost can be reliably measured. Meanwhile, the projects under construction shall be measured
according to the actual cost occurred before the assets are built to achieve the expected usable
condition.
2. The projects under construction shall be transferred into the fixed assets according to the actual
project costs when the expected usable condition achieved. For the expected usable condition
achieved while the final accounts for completed projects not handled yet, the projects shall be
transferred into the fixed assets as per the estimated value. After the final accounts for completed
projects handled, the original estimated value shall be adjusted as per the actual cost, but the original
withdrawn depreciation shall not be adjusted again.
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18.Borrowing costs
1. Recognition principles for capitalizing of loan expenses
Borrowing expenses occurred to the Company that can be accounted as purchasing or
production of asset satisfying the conditions of capitalizing, are capitalized and accounted as cost of
related asset. Other borrowing expenses are recognized as expenses according to the occurred amount,
and accounted into gain/loss of current term.
2. Duration of capitalization of Loan costs
(1).When a loan expense satisfies all of the following conditions, it is capitalized:
1. Expenditures on assets have taken place.
2. Loan costs have taken place;
3. The construction or production activities to make assets to reach the intended use or sale of state
have begun.
（2）Capitalization of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted by activities other than those necessary
to prepare the asset for its intended use or sale, when the interruption is for a continuous period of
more than 3 months. Borrowing costs incurred during these periods recognized as an expense for the
current period until the acquisition, construction or production is resumed.
（3）When the construction or production meets the intended use or sale of state of capitalization
conditions, the Loan costs should stop capitalization.
3. Computation Method for Capitalization Rate and Amount of Borrowing Costs
With regard to the special borrowings for the purchase and construction of qualified assets, the
capitalized interest amount shall be recognized according to the amount of the interest cost for the
special borrowings actually occurred during the current period (including the amortization of discount
or premium recognized as per the effective interest method) minus the interest income acquired after
the borrowings deposit in bank or the investment income obtained from the temporary investment.
For the general borrowings for the purchase and construction of qualified assets, the capitalized
interest amount of the general borrowings shall be computed and recognized according to the
weighted average of accumulative asset expense beyond the expense of the special borrowings,
multiplying the capitalization rate of general borrowings.
19.Biological assets
20.Oil & Gas Assets
21.Intangible assets
1. Valuation Method, Service Life and Impairment Test of Intangible Assets
(1) The intangible assets include the land use rights, the professional technology and the software,
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which are conducted the initial measurement as per the cost.
(2) The service life of intangible assets is analyzed and judged when of the company acquires the
intangible assets. For the finite service life of the intangible assets, the years of service life or the
quantity of service life formed and the number of similar measurement unit shall be estimated. If the
term of economic benefits of the intangible assets brought for the company is not able to be foreseen,
the intangible assets shall be recognized as that with the indefinite service life.
(3) Estimation Method of Service life of Intangible Assets
1) For the intangible assets with the finite service life, the company shall generally consider the
following factors to estimate the service life: ① the normal service life of products produced with the
assets, and the acquired information of the service life of similar assets. ② the estimation of the
current stage conditions and the future development trends in the aspects of technology and craft. ③
the demand of the products produced by the assets or the offered services in the market. ④ the
expectation of actions adopted by current or potential competitors. ⑤ the expected maintenance
expense for sustaining the capacity to economic benefits brought by the assets and the ability to the
relevant expense expected. ⑥ the relevant law provision or the similar limit to the control term of the
assets, such as the licensed use term and the lease term. ⑦ the correlation with the service life of
other assets held by the company.
2) Intangible Assets with Indefinite Service Life, Judgment Criteria on Indefinite Service Life and
Review Procedure of Its Service Life
The company shall be unable to foresee the term of economic benefits brought by the assets for the
company, or the indefinite term of intangible assets recognized as the indefinite service life of
intangible assets.
The judgment criteria of Indefinite service life: ① as from the contractual rights or other legal rights,
but the indefinite service life of contract provision or legal provisions. ② unable to judge the term of
economic benefits brought by the intangible assets for the company after the integration of
information in the same industry or the relevant expert argumentation.
At the end of every year, the review should be made for the service life of the intangible assets with
the indefinite service life, and the relevant department that uses the intangible assets, shall conduct
the basic review by the method from up to down, in order to evaluate the judgment criteria of the
indefinite service life if there is the change.
(4) Amortization Method of Intangible Assets Value
The intangible assets with the finite service life shall be systematically and reasonably amortized
according to the expected implementation mode of the economic benefits related to the intangible
assets during the service life, and the line method shall be adopted to amortize for the intangible
assets unable to reliably recognize the expected implementation mode. The specific service life is as
follows:
Items Amortization life time（Year）
Land use right 50 years
Proprietary technology 15 years
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Software 5 years
The intangible assets with the indefinite service life shall not be amortized, and the company shall
make the review of the service life of the intangible assets during every accounting period.
(5) If there is the impairment for the intangible assets with the definite service life on the balance
sheet date, the corresponding impairment provision shall be withdrawn according to the difference
between the book value and the recoverable amount. The intangible assets with the indefinite service
life and without the usable condition shall be conducted the impairment test every year whether the
impairment exists.
2. Accounting Policy of Internal Research and Development Expenditure
The expenditure for internal research and development project in the study stage shall be recorded
into the current profits and losses when occurring. The expenditure for internal research and
development project in the development stage shall be recognized as the intangible assets when the
following requirements are simultaneously met: (1) the completion of the intangible assets is
available for use or sale, and feasible in the technology. (2) the intention to complete the intangible
assets and use or sale. (3) the method for the economic benefits produced by the intangible assets,
including the evidence that shows there exists the market for the products generated from the
intangible assets or the intangible assets have the market. The intangible assets are used internally
which shows the serviceability. (4) there are sufficient technology, financial resources and other
resources to support the completion of the development of the intangible assets, and there is ability to
use or sell the intangible assets. (5) the expenditure belong to the development stage of the intangible
assets can be reliably measured.
The specific criteria for the division of the internal research and development projects at the research
stage and the development stage of the company is as follows: (1) the investigation stage planned to
obtain the new technology and knowledge, shall be recognized as the research stage, which has the
features of planning and exploration. (2) before the commercial manufacture and use, the research
results or other knowledge should be applied for the plan or design, in order to produce the new or
improved stages with substantial materials, devices and products, which should be recognized as the
development stage, and this stage has the features of pertinence and more possibility to create the
achievement.
22.Long-term Assets Impairment
The company shall make judgment of the long-term assets including the long-term equity investment,
the investment property measured by the cost mode, the fixed assets and the projects under
construction if there is possible impairment on the balance sheet date. If there exists the evidence
shows that the long-term assets have the impairment, the impairment test should be conducted, and
the recoverable amount should be estimated. The impairment shall be confirmed if there exists after
the comparison of the estimated recoverable amount of the assets and its book value, and if the assets
impairment provision shall be withdrawn to recognize the corresponding impairment losses. The
estimation of the recoverable amount of assets should be confirmed according to the higher one
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between the net amount of the fair value minus the disposal costs and the present value of the cash
flow of assets expected in the future.
The company shall conduct the impairment test at least every year for the goodwill established by the
business combination and the intangible assets with the indefinite service life whether there exists the
impairment.
The impairment loss of long-term assets after recognized shouldn’t be reversed in the future
accounting period.
23.Long-term amortizable expenses
Deferred charges represent expenses incurred that should be borne and amortized over the current and
subsequent period (together of more than one year).
The long-term unamortized expense shall be bookkept as per the actual amount occurred, and shall be
averagely amortize within the benefit period or the specified period. If the long-term unamortized
expense can’t make the benefits for the future accounting period, the amortized value of the
unamortized project shall all be transferred into the current profits and losses.
24.Remuneration
The employee benefits of the company include short-term employee benefits, post-employment
benefits, termination benefits and other long-term employee benefits.
1. Accounting Treatment Method of Short-term Compensation
During the accounting period of service provision of staff, the company shall regard the actual
short-term compensation as the liability and record into the current profits and losses or the relevant
assets cost as per the beneficiary. Of which, the non-monetary welfare shall be measured as per the
fair value.
2. Accounting Treatment Method of Severance Benefit Plans
The severance benefit plans can be divided into the defined contribution plan and the defined benefit
plan according to the risk and obligation borne.
(1) The Defined Contribution Plan
The contribution deposits that paid to the individual subject for the services provided by the staffs on
the balance sheet date during the accounting period, shall be recognized as the liability, and recorded
into the current profits and losses or the relevant asset costs as per the beneficiary.
(2) The Defined Benefit Plan
The defined benefit plan is the severance benefit plans with the exception of the defined contribution
plans.
1) Based on the expected cumulative welfare unit method, the company shall adopt unbiased and
mutually consistent actuarial assumptions to make evaluation of demographic variables and financial
variables, measure and define the obligations arising from the benefit plan, and determine the period
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of the relevant obligations. The company shall discount all the defined benefit plan obligations,
including the obligation within twelve months after the end of the annual report during the expected
services provision of employee. The discount rate adopted in discounting shall be recognized
according to the bonds matched with the defined benefit plan obligation term and the currency at the
balance sheet date or the market return of high-quality corporate bonds in the active market.
2) If there exist the assets for the defined benefit plan, the deficit or surplus arising from the present
value of the defined benefit plan obligations minus the fair value of the defined benefit plan assets are
recognized as the net liability or the net assets of the defined benefit plan. If there exists the surplus of
the defined benefit plan, the lower one between the surplus of the define benefit plan and the upper
limit of assets shall be used to measure the net assets of the defined benefit plan. The upper limit of
assets refers to the present value of economic benefits obtained from the refund of the defined benefit
plans or the reduction of deposit funds of future defined benefit plans.
3) At the end of period, the employee’s payroll costs arising from the defined benefit plan are
recognized as the service costs, the net interests on the net liabilities or the net assets of the defined
benefit plan, and the changes caused by the net liabilities and the net assets of the defined benefit plan
that re-measured. Of which, the service costs and the net interests on the net liabilities or the net
assets of the defined benefit plan shall be recorded into the current profits and losses or the relevant
assets costs, the changes caused by the net liabilities and the net assets of the defined benefit plan that
re-measured shall be recorded into other comprehensive incomes, which should not be switched back
to the profits and losses during the subsequent accounting period, but the amount recognized from
other comprehensive incomes can be transferred within the scope of the rights and interests.
4) The profit or loss of one settlement shall be recognized when settling the defined benefit plan.
3. Accounting Treatment Method of Demission Welfare
The employee compensation liabilities generated by the demission welfare shall be recognized on the
early date and recorded into the current profits and losses: (1) when the company can’t withdraw the
demission welfare provided due to the rundown suggestion or the termination of labor relations plans.
(2) when the company recognizes the costs or the expenses related to the reorganization of demission
welfare payment.
The earlier one between when the company can’t withdraw the rundown suggestion or the
termination of labor relations plans at its side and when the costs relevant to the recombination of
dismission welfare payment, shall be recognized as the liabilities arising from the compensation due
to the termination of labor relations with staff and shall be recorded into the current profits and losses.
Then company shall reasonably predict and recognize the payroll payable arising from the dismission
welfare. The dismission welfare, which is expected to finish the payment within twelve months after
the end of the annual report recognized, shall apply to the relevant provisions of short-term
compensation. The dismission welfare, which is expected to be unfinished for the payment within
twelve months after the end of the annual report recognized, shall apply to the relevant provisions of
short-term compensation, shall apply to the provisions related to other long-term employee benefits.
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4. Accounting Treatment Method of Other Long-term Employee Benefits
If other long-term employee benefits of employees provided by the company meet the conditions of
the defined contribution plan, the accounting treatment shall be made in accordance with the defined
contribution plan. Except for these, other long-term benefits shall be made the accounting treatment
according to the defined benefit plan, but the changes arising from the re-measurement of net
liabilities or net assets of other long-term employee benefits shall be recorded into the current profits
and losses or the relevant assets costs.
25. Estimated Liabilities
1. Recognition Criteria of Estimated Liabilities
The liabilities shall be recognized when external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, recombination obligation, disposal obligation of
the fixed assets and other pertinent businesses all meet the following requirements:
(1) The obligation is the current obligation borne by the company.
(2) The implementation of the obligation may cause the economic benefits out of the enterprise.
(3) The amount of the obligation can be measured reliably.
2. Measurement Method of Estimated Liabilities
The estimated liabilities shall be made the initial measurement according to the best estimate of the
expenditure required to settle the present obligation. There is the continuous scope for the required
expenditure, and the best estimate with the same possibilities resulted from various outcomes within
the scope shall be recognized as per the intermediate value. The best estimate should be recognize
according to the following methods:
(1) The best estimate shall be recognized as per the most possible amount if there are matters
involved in the single item.
(2) The best estimate shall be calculated and recognized as per the possible amount if there are
matters involved in the multiple item.
If the company pays all the expenses for paying off the estimated liabilities, or partial estimates are
compensated by the third party or other parties, the compensation amount should be separately
recognized as the assets when the receipt of the compensation amount is basically determined.
Meanwhile, the determined compensation amount shall not exceed the book value of the estimated
liabilities recognized.
The company shall make review of the book value of estimated liabilities at the balance sheet date. If
there is conclusive evidence that the book value cannot really reflect the current best estimate, the
adjustment shall be made for the book value in accordance with the current best estimate.
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26. Share-based payment
27.Other financial instruments including senior shares and perpetual bonds
28. Revenue
1. Recognition Principle of Revenue
(1) The Goods for Sale
The revenue of the goods for sale shall be recognized when the following requirements are met
simultaneously: the transfer of main risks and rewards on ownership of the goods to the buyers, the
continual management rights related to ownership no longer retained by the company and the
effective control of the sold goods no longer implemented, the reliable measurement of the revenue
amount, the possible inflow of the relevant economic benefits, and the reliable measurement of the
relevant costs incurred or to be incurred.
(2) The Service Provision
If the provided services transaction results can be reliably estimated at the balance sheet date (the
reliable measurement of the revenue amount, the possible inflow of the relevant economic benefits,
the reliable recognition of the completion schedule of transaction, and the reliable measurement of the
relevant costs incurred or to be incurred in the transaction), the company shall recognize the relevant
service incomes according to the completion percentage method and recognized the completion
schedule of the provided service transaction according to the proportion of the costs occurred
accounting for the total estimated costs. If the provided services transaction results cannot be reliably
estimated at the balance sheet date and the occurred service costs can be expected to have
compensation, the company shall recognize to provide the service revenue according to the occurred
service cost amount and transfer the service costs as per the same amount. If the occurred service
costs cannot be expected to have compensation, the occurred service costs shall be recorded into the
current profits and losses and not be recognized as the service revenue.
(3) The Abalienation of the Right to Use Assets
The revenue of abalienation of the right to use assets shall be recognized when the abalienation
of the right to use assets meets the requirements of the possible inflow of the relevant economic
benefits and the reliable measurement of revenue amount. The interest income shall be calculated and
determined according to time and actual interest rate of the monetary capital of the company used by
others, and the royalty revenue shall be measured and determined in accordance with the charging
time and method appointed in the relevant contract or agr
2. The Specific Recognition Method of Revenue
The company mainly sells the polaroid, textiles and other products. The revenue of the sale of
products in domestic market shall be recognized after the following requirements are met: The
company has agreed to deliver the goods to the purchaser under the contract and the revenue amount
of product sales has been determined, the payment for goods has been withdrawn or the payment
vouchers has been obtained and related economic benefits are likely to inflow, and the costs related to
the products can be measured reliably. The revenue of the sale of products in foreign market shall be
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recognized after the following requirements are met: The company has made customs clearance and
departure from port under the contract, the bill of landing has obtained and the revenue of the sale of
products has been recognized, the payment for goods has been withdrawn or the payment vouchers
has been obtained and related economic benefits are likely to inflow, and the costs related to the
products can be measured reliably.
29.Government subsidy
1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets
The government grants of long-term assets that obtained, used for construction or formed by other
ways, shall be recognized as the government subsidy related to the assets. The government grants
related to assets are recognized as the deferred income, equally distributed within the service life of
the relevant assets, and recorded into the current profits or losses.
2. Judgment Basis and Accounting Treatment Method of Government subsidy related to
Income
The government subsidy other than that related to income acquired by the company shall be
recognized as the government subsidy related to income.
If the grant objects are not explicitly stipulated in the government files, the government subsidy
shall be divided into that related to assets and that related to income, and the judgment basis is that:
① if the specific purpose of subsidy is stipulated in the government document, the review and
necessary change shall be made at the balance sheet date for the proportion of division according to
the relative proportion of assets expense amount and expense amount recorded in the budget of the
special item. ② only general expression is made in the government documents, and the government
subsidy related to income should be made for the non-particular items.
The government subsidy related to income that used for the compensation of the related expenses or
losses in subsequent period, shall be recognized as the deferred income and recorded into the current
profits and losses during the period of the confirmation of relevant expenses. The relevant expenses
or losses occurred for the purpose of compensation shall be directly recorded into the current profits
and losses.
30.The Deferred Tax Assets / The deferred Tax Liabilities
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax
basis, and the difference of the book value and the tax basis that no confirmation of assets and
liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference
can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company
shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce
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the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or
liabilities in the transaction shall not be recognized: (1) the transaction is not the business
combination. (2) the transaction doesn’t influence the accounting profits and the taxable incomes (or
the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the
following requirements are simultaneously met: (1) the temporary difference is possible to be
reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary
difference is possible to be obtained in the future.
1. Temporary Difference
The temporary difference includes the difference of the book value of assets and liabilities and the tax
basis, and the difference of the book value and the tax basis that no confirmation of assets and
liabilities but able to confirm the tax basis as per the provisions of tax law. The temporary difference
can be classified into the taxable temporary difference and the deductible temporary difference.
2. Recognition Basis of Deferred Tax Assets
For the deductible temporary difference, the deductible loss and the tax payment offset, the company
shall recognize the deferred tax assets arising from the future taxable income that obtained to deduce
the deductible temporary difference, the deductible loss and the tax payment offset.
The deferred tax assets with the following features and arising from the initial recognition of assets or
liabilities in the transaction shall not be recognized: (1) the transaction is not the business
combination. (2) the transaction doesn’t influence the accounting profits and the taxable incomes (or
the deductible losses).
The company shall recognize the corresponding deferred tax assets for the deductible temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures if the
following requirements are simultaneously met: (1) the temporary difference is possible to be
reversed in the foreseeable future. (2) the taxable income used to offset the deductible temporary
difference is possible to be obtained in the future.
30. Recognition Basis of Deferred Tax Liabilities
All the taxable temporary differences shall be recognized as the deferred tax liabilities.
But the company shall not recognize the taxable temporary differences arising from the following
transactions as the deferred tax liabilities: (1) the initial recognition of goodwill. (2) the initial
recognition of assets or liabilities arising from the transactions with the following features: this
transaction is not the business combination, and the transaction doesn’t influence the accounting
profits and the taxable incomes (or the deductible losses).
The company shall recognize the corresponding deferred tax liabilities for the taxable temporary
difference related to the investment of subsidiaries, cooperative enterprises and joint ventures. Except
that the following requirements are simultaneously met: (1) the investment enterprise can control the
reversal time of the temporary difference. (2) the temporary difference is possible to not be reversed
in the foreseeable future.
4. Impairment of Deferred Tax Assets
The company shall review the book value of the deferred tax assets at the balance sheet date. If it is
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not possible to obtain sufficient taxable income for the reduction of the benefit of the deferred tax
assets in the future, the book value of the deferred tax assets shall be deduced. Except that the
deferred tax assets and the reduction amount are recorded into the owner’s equity when the original
recognition, others shall be recorded into the current income tax expense. The book value of the
deferred tax assets reduced can be recovered when sufficient taxable income is possibly obtained.
5. Income Tax Expense
The income tax expense should include the current income tax and the deferred income tax.
Other comprehensive income or the current income tax and the deferred income tax related to the
transactions and items directly recorded into the stockholders’ equity, shall be recorded into other
comprehensive incomes or the stockholders’ equity, and the book value of goodwill shall be adjusted
by the deferred income tax arising from the business combination, but the rest of the current income
tax and the deferred income tax expense or income shall be recorded into the current profits and
losses.
31.Lease
1. Accounting Treatment Method of Operating Lease
When the company is as the tenant, the rental within the lease term shall be recorded into the relevant
assets cost or recognized as the current profits and losses as per the line method, and the initial direct
expense occurred shall be directly recorded into the current profit and loss. The contingent rental
shall be recorded into the current profit and loss once the actual occurrence.
When the company is as the leaser, the rental within the lease term shall be recognized as the current
profits and losses as per the line method, and the initial direct expense occurred shall be directly
recorded into the current profit and loss, except that the large amounts are capitalized and recorded
into the profit and loss by stages. The contingent rental shall be recorded into the current profit and
loss once the actual occurrence.
2. Accounting Treatment Method of Finance Lease
When the company is as the tenant, the company shall recognize the less one between the fair value
of leasing assets and the present value of minimum lease payment at the lease commencement date as
the book value of rented assets, recognize the minimum lease payment as the book value of the
long-term payables, and the undetermined fiancéexpense of the difference and the initial direct costs
occurred shall be recorded into the leasing asset value. During each lease period, the current financing
charges shall be measured and recognized by the effective interest method.
When the company is as the leaser, the company shall recognize the sum of minimum lease
receivables and initial direct expense at the lease commencement date as the book value of finance
lease receivables, and record the unguaranteed residual value. Meanwhile, the company shall
recognize the difference between the sums of minimum lease receivables, minimum lease receivables
and unguaranteed minus the sum of the present value as the unrealized financing income. During
each lease period, the current financing charges shall be measured and recognized by the effective
interest method.
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32.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable √Not applicable
（2）Change of main accounting estimations
□Applicable √Not applicable
VI.Taxes of the Company
1. Main taxes categories and tax rate
Taxes Tax references Applicable tax rates
Selling goods or providing taxable
VAT 17%
labor services
Selling goods or providing taxable
VAT 5%
labor services
Business tax. The taxable tumover 7%
City construction tax Turnover tax to be paid allowances 25%、15%
Business income tax Taxable income
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the
information
Name of taxpayer Income tax rates
Shenzhen Shengbo Optoelectronic Technology Co., Ltd 15%
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 2013 ,High-tech and enterprise certificate
No.: GF201344200044 ,The certificate is valid for three years, The enterprise income tax rate of this
year is 15%.
(2).In accordance with relevant provisions of the Notice of Ministry of Finance, General Administrati
on of Customs and State Taxation Administration Regarding Tax Preference Policies for Further Supp
orting the Development of New-type Display Device Industry (Cai Guan Shui (2012) No. 16), and th
e Notice of Printing and Issuing the Scope of Imported Materials of Enterprises Manufacturing Colorf
ul Light Filtering Coating and Polarizer Sheets and the List of the First Group of Enterprises Enjoyin
g Preferential Policies (Cai Guan Shui (2012) No. 53), Shenzhen Shengbo Optoelectronic Technology
Co., Ltd. manufactured key materials and parts for the upstream industry of new-type display devices
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including colorful light filter coating and polarizer sheet that comply with the planning for independe
nt development of domestic industries may enjoy the preferential policies of exemption from import t
ariff for the import of raw materials and consumables for the purpose of self use and production that c
an not be produced domestically from June 1, 2012 and December 31, 2015. For the concrete regulati
ons on tax exemption, the Provisional Regulations on Taxation Policies for Imported Materials of Ent
erprises Manufacturing New-type Display Device Panels (Cai Guan Shui (2012) No. 16).
VII. Notes of consolidated financial statement
1.Monetary Capital
In RMB
Items Year-end balance Year-beginning balance
Cash at hand 10,356.02 8,588.42
Bank deposit 641,708,731.69 1,101,274,000.66
Other monetary funds 152,621.43 488,972.20
Total 641,871,709.14 1,101,771,561.28
Including : The total amount of deposit
15,553,871.62 3,552,067.53
abroad
Notes :As of June 30, 2015，The fixed-term deposit balance of money fund is RMB 3,596,472.17 , this
part will not be treated as closing cash or closing cash equivalent in preparing cash flow statement.
2.Derivative financial assets
□ Applicable √ Not applicable
3.Bill receivables
1. Classification Bill receivable
In RMB
Items
Year-end balance Year-beginning balance
Bank acceptance 15,909,527.03 43,412,635.19
Total 15,909,527.03 43,412,635.19
2.Notess dedoresment or discount and undue on balance sheet date
In RMB
Items Amount derecognition at period –end Amount nt derecognition at period-end
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
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Bank acceptance 15,447,032.09
Total 15,447,032.09
4. Account receivable
1.Classification accojunt receivables.
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Accounts receivable
of individual
significance and 3,817,32 2,757,95 1,059,369 4,698,8 3,198,621 1,500,257.6
1.60% 72.25% 2.73% 68.07%
subject to individual 9.38 9.71 .67 79.38 .70 8
impairment
assessment
Accounts receivable
subjecttoimpairme
nt assessment by 230,285, 11,756,0 218,529,6 162,559 8,393,593 154,166,28
96.41% 5.10% 94.56% 5.16%
credit risk 709.43 56.60 52.83 ,876.54 .26 3.28
characteristics of a
portfolio
Accounts receivable
of individual
insignificance but 4,757,44 4,429,99 327,446.8 4,651,9 4,194,915
1.99% 93.12% 2.71% 90.18% 457,029.39
subject ot individual 6.11 9.22 9 45.06 .67
impairment
assessment
238,860, 18,944,0 219,916,4 171,910 15,787,13 156,123,57
Total 100.00% 100.00%
484.92 15.53 69.39 ,700.98 0.63 0.35
Accounts receivable of individual significance and subject to individual impairment assessment.
√ applicable □ Not applicable
In RMB
Amount in year-end
Debtor
Account receivable Bad debt provision Rate of alloance(%) Reason for allowance
It has been included in
Dongguan Fair LCD Co., 1,698,364.02 1,698,364.02 100.00%
the list of national courts
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Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
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Ltd. dishonest debtor, unlikely
to recover.
Beyond the credit period
Guangdong Ruili Baolai
2,118,965.36 1,059,595.69 50.00% for a long time, uncertain
Technology Co., Ltd.
recovered.
Total 3,817,329.38 2,757,959.71 -- --
（2）Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Within 1 year 229,725,359.71 11,498,579.95 5.00%
Within 1 year 229,725,359.71 11,498,579.95 5.00%
1-2 years 56,604.28 5,660.43 10.00%
Over 3 years3 503,632.44 251,816.22 50.00%
3-4 years 7,947.64 3,973.82 50.00%
4-5 years 420,903.80 210,451.90 50.00%
Over 5 years 74,781.00 37,390.50 50.00%
Total 230,285,709.43 11,756,056.60 5.10%
Notes：
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
Applicable □ Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 3,597,546.89 ; The acmount collected or switches back
amounting to 440,691.99.
Important baddebt provision collected or switch back.
In RMB
Name Collected or swith back amount Collection way
Guangdong Ruili Baolai Technology Co.,
881,550.00 Cash and Bank acceptance
Ltd.
95
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Total 881,550.00 --
（3）The ending balance of receivable owed by the imputation of the top five parties
Balance in Proportion(%) Bad debt provision
Name Nature Aging
year-end
Client 1 Goods 118,368,544.45 Within 1 year 49.56 5,918,427.22
Client 2 Goods 15,763,589.73 Within 1 year 6.60 788,179.49
Client 3 Goods 13,849,472.06 Within 1 year 5.80 692,473.60
Client 4 Goods 10,347,307.74 Within 1 year 4.33 517,365.39
Client 5 Goods 9,493,179.23 Within 1 year 3.97 474,658.96
Total 167,822,093.21 70.26 8,391,104.66
5.Prepayments
1．Disclosure by age
In RMB
Balance in year-end Balance in year-begin
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year 37,101,520.34 96.14% 24,681,972.11 91.16%
1-2 years 1,395,265.64 3.62% 2,298,742.28 8.49%
2-3 years 92,936.91 0.24% 94,380.42 0.35%
Total 38,589,722.89 -- 27,075,094.81 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in
time
Shenzhen Futian 1,363,178.00
Shenzhen Textile
District Housing and 1-2 years Not delivery of real estate
（Holdings）Co., Ltd.
Construction Bureau
（2）The ending balance of Prepayments owed by the imputation of the top five parties
Name Balance in year-end Proportion
First 6,406,603.55 16.60%
96
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Second 5,389,930.03 13.97%
Third 3,508,339.59 9.09%
Fourth 3,158,875.43 8.19%
Fifth 2,150,962.13 5.57%
Total 20,614,710.73 53.42%
6.Interest receivable
1.Category of interest receivable
In RMB
Items Balance in year-end Balance in year-begin
Fixed deposit interest 16,568,419.90 13,357,311.32
Total 16,568,419.90 13,357,311.32
7.Dividends receivable
1.Dividends receivable
In RMB
Items Balance in year-end Balance in year-begin
Yehui International Co., Ltd. 266,634.33
Total 266,634.33
8.Other receivable
1．Category of Other receivable
In RMB
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other accounts
receivable of
11,981,4 11,981,4 11,981, 11,981,46
individual 35.71% 100.00% 20.88% 100.00%
64.60 64.60 464.60 4.60
significance and
subject to individual
97
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
impairment
assessment
Other accounts
receivable
subjecttoimpairme
21,060,8 1,816,05 19,244,83 44,880, 3,036,781 41,843,377.
nt assessment by 62.77% 8.62% 78.23% 6.77%
86.02 5.89 0.13 159.19 .80 39
credit risk
characteristics of a
portfolio
Other accounts
receivable of
individual
511,820. 511,820. 511,820 511,820.7
insignificance but 1.52% 100.00% 0.89% 100.00%
77 77 .77 7
subject ot individual
impairment
assessment
33,554,1 14,309,3 19,244,83 57,373, 15,530,06 41,843,377.
Total 100.00%
71.39 41.26 0.13 444.56 7.17 39
Other receivable accounts with large amount and were provided had debt provisions individually at
end of period.
√ Applicable □ Not applicable
In RMB
Amount in year-end
Debtor
Other account receivable Bad debt provision Rate of alloance(%) Reason for allowance
Jiangxi Xuanli String No executable property,
11,389,044.60 11,389,044.60 100.00%
Co., Ltd. unlikely to recover.
Shenzhen Tianlong Has been
Induatry& Trade Co., 592,420.00 592,420.00 100.00% conceled,unlikely to
Ltd. recover
Total 11,981,464.60 11,981,464.60 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze
basis：
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
98
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Within item 1 year
Within 1 year 19,172,420.87 966,848.62 5.00%
Subtotal within 1 year 19,172,420.87 966,848.62 5.00%
1-2 years 177,563.27 17,756.33 10.00%
2-3 years 120,000.00 36,000.00 30.00%
Over 3 years 1,590,901.88 795,450.94 50.00%
3-4 years 993,421.06 496,710.53 50.00%
4-5 years 17,600.00 8,800.00 50.00%
Over 5 years 579,880.82 289,940.41 50.00%
Total 21,060,886.02 1,816,055.89 8.62%
Notes：
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
√ Applicable □ Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was -1,220,725.91, the acount collected or switches back amounting to RMB 0.00.
（3）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
Export rebate 13,632,877.44 37,329,677.22
Unit account 14,903,512.80 14,476,263.97
Deposit 1,614,890.59 2,074,647.36
Reserve fund and staff loans 1,142,069.97 1,058,737.57
Other 2,260,820.59 2,434,118.44
Total 33,554,171.39 57,373,444.56
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
Portion in total other Bad debt provision
Name Nature Year-end balance Age
receivables(%) of year-end balance
99
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
First 40.63% 681,643.87
Second Unit account 11,389,044.60 Over 3 years 33.94% 11,389,044.60
Third Unit account 2,700,000.00 Within 1 year 8.05% 135,000.00
Fouth Deposit 980,461.06 Over 3 years 2.92% 490,230.53
Fifth Unit account 592,420.00 Over 3 years 1.77% 592,420.00
Total -- 29,294,803.10 -- 87.31% 13,288,339.00
9.Inventories
（1）Inventories types
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for bad Book value Book balance Provision for bad Book value
debts debts
Raw materials 114,736,428.95 12,895,373.86 101,841,055.09 96,253,606.72 18,042,269.08 78,211,337.64
Processing
8,035,296.58 8,035,296.58 6,209,041.89 6,209,041.89
products
Stock goods 132,624,122.52 28,826,587.41 103,797,535.11 116,534,286.34 25,965,053.01 90,569,233.33
Turnover
133,102.72 133,102.72
materials
Semi-finished
69,153,420.33 21,125,457.06 48,027,963.27 76,759,022.66 21,506,818.01 55,252,204.65
product
Designated
processing 875,834.87 875,834.87 284,202.01 284,202.01
material
Total 325,425,103.25 62,847,418.33 262,577,684.92 296,173,262.34 65,514,140.10 230,659,122.24
（2）Inventory Impairment provision
In RMB
Increased in current period Decreased in current period
Year-beginning
Items Year-end balance
balance Provision Other Transferred back Other
Raw materials 18,042,269.08 5,146,895.22 12,895,373.86
Stock goods 25,965,053.01 18,732,928.24 15,871,393.84 28,826,587.41
Semi-finished
21,506,818.01 381,360.95 21,125,457.06
product
100
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Total 65,514,140.10 18,732,928.24 21,399,650.01 62,847,418.33
10.Other current assets
In RMB
Items
Year-end balance Year-beginning balance
Structural Deposit 460,000,000.00
Total 460,000,000.00
11.Available-for-sale financial assets
(1)Available-for-sale financial assets
In RMB
Year-end balance Year-beginning balance
Items
Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Available-for-sale equity
83,081,966.78 36,689,988.51 46,391,978.27 124,282,285.62 36,689,988.51 87,592,297.11
instruments
Measured by fair value 11,404,930.81 11,404,930.81 52,605,249.65 52,605,249.65
Measured by cost 71,677,035.97 36,689,988.51 34,987,047.46 71,677,035.97 36,689,988.51 34,987,047.46
Total 83,081,966.78 36,689,988.51 46,391,978.27 124,282,285.62 36,689,988.51 87,592,297.11
(2)Available-for-sale financial assets measured by fair value at the period-end
In RMB
Type of financial assets Equity instrument available for Debt instrument available for
Total
available for sale sale sale
Cost of equity instruments /
Amortized cost of a debt instru 8,940,598.31 8,940,598.31
ment
Fair value at the end 11,404,930.81 11,404,930.81
Changes in the amount of the c
umulative fair value recognized 4,058,755.65 4,058,755.65
in other comprehensive income
(3)Available-for-sale financial assets measured by cost at the period-end
In RMB
101
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increased Decreased Period-end among the reporting
in in
investees period
Shenzhen
Jintian
14,831,681 14,831,681 14,831,681 14,831,681
Industry 3.68%
.50 .50 .50 .50
（Group）
Co., Ltd.
Shenzhen
Jiafeng 16,800,000 16,800,000 16,800,000 16,800,000
10.80%
Textile .00 .00 .00 .00
Co., ltd.
Shenzhen
Guanhua
5,491,288. 5,491,288. 5,058,307. 5,058,307.
45.00%
Prnting & 71 71 01 01
dyeing
Co., Ltd.
Shenzhen
Union
2,600,000. 2,600,000.
2.87%
Developm 00 00
ent Group
Co., Ltd
Shenzhen
Xiangjiang
160,000.00 160,000.00 20.00% 84,587.22
Trade Co.,
Ltd.
Shenzhen
Xinfang
524,000.00 524,000.00 20.00% 54,000.00
Knitting
Co., Ltd.
Shenzhen
2,559,856. 2,559,856.
30.00% 788,870.00
Dailisi 26 26
Knitting
102
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Co., Ltd.
Anhui
Huapeng 25,410,209 25,410,209
50.00%
.50 .50
Textile
Co., Ltd.
Shenzhen
South 1,500,000. 1,500,000.
9.84%
Textile 00 00
Co., Ltd.
Shenzhen
Tongyi 1,800,000. 1,800,000.
18.00%
Silk Co., 00 00
Ltd.
71,677,035 71,677,035 36,689,988 36,689,988
Total -- 927,457.22
.97 .97 .51 .51
(4)Changes of the impairment of the available-for-sale financial assets during the reporting period
In RMB
Avaliable for sale equity Avaliableforsale debts
Category Total
instruments instruments
Impairment amount at the
37,301,142.97 37,301,142.97
beginning period
Including:transferred from the
611,154.46 611,154.46
increased fair value
Impairment amount at the end
36,689,988.51 36,689,988.51
of period
(5)Fair value of equity instrument available for sale sharply declined or other-than-temporary
declined at period-end without depreciation reserves accrual
Notes
Fawer Shares (000030）the company held impairment loss at the last period of RMB 611,154.46, the
current value rised, the reversal of impairment losses of RMB 611,154.46 through equity.
12.Long-term equity investment
(1)Long-term equity investment
In RMB
103
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Increase/decrease
Closing
Adjustme
Cash Withdraw balance
Gains/los nt of
Opening Add Investme Chinges bonus or al of Closing of
Investees s of other
balance investmen nt of other profits impairme Other balance impairme
Investme comprehe
t decreased eqiuty announce nt nt
nt nsive
d to issue provision provision
income
I. Joint venture
Shenzhen
Haohao
3,762,406 156,795.7 3,919,202
Property .73 0 .43
Leasing
Co., Ltd.
Shenzhen
Xieli
3,675,122 193,572.0 3,868,694 266,654.9
Automobi .44 9 .53 9
le Co.,
Ltd.
7,437,529 350,367.7 7,787,896 266,654.9
Subtotal
.17 9 .96 9
2. Affiliated Company
Shenzhen
Changlian
fa 1,814,158 1,830,613
16,454.78
.78 .56
Printing
& dyeing
Company
Jordan
3,262,744 3,296,259
36,410.63 -2,895.43
Garment .69 .89
Factory
Hongkon
g Yehui 8,547,279 626,288.6 538,226.3 8,632,421
-2,920.28
.68 7 3 .74
Internatio
nal Co.,
104
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual
Report 2015
Ltd.
13,624,18 679,154.0 538,226.3 13,759,29
Subtotal -5,815.71
3.15 8 3 5.19
21,061,71 1,029,521 538,226.3 21,547,19 266,654.9
Total -5,815.71
2.32 .87 3 2.15 9
Notes
Shenzhen Xieli Automobile Co., Ltd. Business license has been revoked the business sector.
105
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
13.Investment real estate
（1）Measured by the cost of investment in real estate
√ Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price
1. Balance at
254,042,931.46 254,042,931.46
period-beginning
2.Increase in the current
period
(1) Purchase
（ 2 ） Inventory\Fixed
assets\ Transferred from
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
1,817,038.92 1,817,038.92
the period
（1）Dispose
（2）Other out 1,817,038.92 1,817,038.92
4. Balance at period-end 252,225,892.54 252,225,892.54
II.Accumulated
amortization
1.Opening balance 113,137,656.01 113,137,656.01
2.Increased amount ofthe
3,287,656.20 3,287,656.20
period
(1) Withdrawal 3,287,656.20 3,287,656.20
3.Decreased amount of
1,817,038.92 1,817,038.92
the period
（1）Dispose
（2）Other out 1,817,038.92 1,817,038.92
4. Balance at period-end 114,608,273.29 114,608,273.29
III. Impairment provision
1. Balance at
period-beginning
106
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
（2）Other out
4. Balance at period-end
IV.Book value
1.Book value at period
137,617,619.25 137,617,619.25
-end
2.Book value at
140,905,275.45 140,905,275.45
period-beginning
14. Fixed assets
（1）Fixed assets
In RMB
Machinery
Items House, building Transportations Other equipment Other
eqiupment
I. Original price
1.Opening balance 477,461,993.94 633,688,396.11 3,691,157.72 18,266,876.86 1,133,108,424.63
2.Increased amount
903,094.00 2,133,618.19 109,976.96 3,146,689.15
ofthe period
(1) Purchase 903,094.00 2,112,618.19 109,976.96 3,125,689.15
(2)Transferred from
21,000.00 21,000.00
construction in progress
(3)Increased of
Enterprise Combination
3. Decrease in the
5,573,724.08 340,515.38 301,453.90 6,215,693.36
current period
（1）Disposal 340,515.38 301,453.90 641,969.28
4. Balance at
472,791,363.86 635,481,498.92 3,691,157.72 18,075,399.92 1,130,039,420.42
period-end
II.Accumulated
amortization
107
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
1. Balance at
76,531,202.95 217,981,340.78 2,363,208.73 11,126,071.22 308,001,823.68
period-beginning
2. Increase in the
6,875,797.27 28,463,936.70 185,473.62 644,374.81 36,169,582.39
current period
(1) Withdrawal 6,875,797.27 28,463,936.70 185,473.62 644,374.81 36,169,582.39
3. Decrease in the
5,573,724.08 213,679.40 234,914.14 6,022,317.62
current period
（1）Disposal 213,679.40 234,914.14 448,593.54
4. Balance at
77,833,276.14 246,231,598.08 2,548,682.35 11,535,531.89 338,149,088.46
period-end
III. Impairment
provision
1. Balance at
235,233.62 235,233.62
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3. Decrease in the
current period
（1）Dispose
4. Balance at
235,233.62 235,233.62
period-end
IV.Book value
1.Book value at period
394,958,087.72 389,249,900.84 907,241.75 6,539,868.03 791,655,098.34
-end
2.Book value at
400,930,790.99 415,707,055.33 1,092,715.37 7,140,805.64 824,871,367.33
period-beginning
(2)Fixed assets with un-completed property certificates
In RMB
Items Book Value Reasons for un-completed certificate
TFT-LCD polarizing film project phase 1 fixed Need to improve the relevant accreditation
288,049,723.38
assets of houses and buildings information
Notes
Current depreciation is RMB36,169,582.39 .The issue of fixed assets transferred from construction in progress
original price is RMB0.00.
108
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
15.Project under construction
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book Net value Book balance Provision for Book Net value
devaluation devaluation
TFT-LCD
polarizing film II 34,092,502.32 34,092,502.32 32,436,160.45 32,436,160.45
project
Guanhua
36,129,904.19 36,129,904.19 31,482,502.19 31,482,502.19
Building project
Research and
development
14,861,475.59 14,861,475.59 14,745,915.59 14,745,915.59
center expansion
project
Other 1,153,321.11 1,153,321.11 1,157,571.11 1,157,571.11
Total 86,237,203.21 86,237,203.21 79,822,149.34 79,822,149.34
（2）Changes of significant construction in progress
In RMB
Includin Source
Capitalis g： of fund
Amount Transferr ation of Current Capitalis
Increase Balance
at year ed to Other Proporti Progress interest amount ation of
Name Budget at this in
beginnin fixed decrease on(%) of work accumul of interest
period year-end
g assets ated capitaliz ratio（%)
balance ation of
interest
TFT-LC
D
1,470,93 32,436,1 1,656,34 34,092,5
polarizin 2.00% 2%
0,000.00 60.45 1.87 02.32
g film II
project
1,470,93 32,436,1 1,656,34 34,092,5
Total -- -- --
0,000.00 60.45 1.87 02.32
109
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
16.Liquidation of fixed assets
In RMB
Items End of term Beginning of term
Liquidation of fixed assets 118,410.20
Total 118,410.20
17.Intangible assets
（1）List of intangible assets
In RMB
Non-patent Proprietary
Items Land use right Patent Software Total
Technology technology
I. Original price
1.Opening
48,765,130.50 11,825,200.00 1,876,780.00 62,467,110.50
balance
2.Increased
amount ofthe 61,500.00 61,500.00
period
(1) Purchase
(2)Internal
Development
(3)Increased of
Enterprise
Combination
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
48,765,130.50 11,825,200.00 1,938,280.00 62,528,610.50
period-end
II.Accumulated
amortization
1. Balance at
8,417,706.45 11,825,200.00 452,801.16 20,695,707.61
period-beginning
110
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
2. Increase in the
497,333.64 119,220.69 616,554.33
current period
(1) Withdrawal 497,333.64 119,220.69 616,554.33
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
8,915,040.09 11,825,200.00 572,021.85 21,312,261.94
period-end
III. Impairment
provision
1. Balance at
period-beginning
2. Increase in the
current period
(1) Withdrawal
3.Decreased
amount of the
period
（1）Disposal
4. Balance at
period-end
4. Book value
1.Book value at
39,850,090.41 1,366,258.15 41,216,348.56
period -end
2.Book value at
40,347,424.05 1,423,978.84 41,771,402.89
period-beginning
18.Goodwill
（1）Original book value of goodwill
In RMB
Amount at Amount at
Name Increase in the current period Decrease in the current period
period-beginning period-end
Shenzhen Beauty
Century Garment 2,167,431.21 2,167,431.21
Co., Ltd.
Shenzhen 82,156.61 82,156.61
111
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Shenfang Import
and Export Co.,
Ltd.
Shenzhen
Shengbo
Ophotoelectric 9,614,758.55 9,614,758.55
Technology Co.,
Ltd
Total 11,864,346.37 11,864,346.37
（2）Imapirment allowance
In RMB
Balance in Balance in
Investee Increased at this period .Decreased at thisperiod
year-begin year-end
Shenzhen Beauty
Century Garment 2,167,431.21 2,167,431.21
Co., Ltd.
Shenzhen
Shenfang Import
82,156.61 82,156.61
and Export Co.,
Ltd.
Total 2,249,587.82 2,249,587.82
Notes ：
The company has purchased 52.05% stock equity of Shenzhen Shengbo Optoelectronic Technology Co., Ltd. In
June 2009, and has paid the consideration with the difference RMB9,614,758.55 after the shares of the fair value
of the identifiable net assets deducted, which shall be recorded into the goodwill. On June 30,2015, the company
has made the impairment test for the assets group combination including the goodwill, and there is no impairment
for the goodwill after test.
19. Long term amortize expenses
In RMB
Amortized expenses
Increase in this
Items Balance in year-begin Other loss Balance in year-end
period
Renovation fee 245,050.54 278,800.00 114,062.26 409,788.28
Other 315,826.52 71,256.00 22,843.38 364,239.14
Total 560,877.06 350,056.00 136,905.64 774,027.42
112
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
20. Deferred income tax assets/deferred income tax liabilities
（1）Details of the un-recognized deferred income tax assets
In RMB
Balance in year-end Balance in year-begin
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets depreciation
6,115,561.44 1,528,890.36 8,661,780.26 2,165,445.08
reserves
Unattained internal sales
2,903,437.13 435,515.57 2,947,994.35 442,199.15
profits
Total 9,018,998.57 1,964,405.93 11,609,774.61 2,607,644.23
（2）Details of the un-recognized deferred income tax liabilities
In RMB
Balance in year-end Balance in year-begin
Items
Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax
or Taxable Difference liabilities or Taxable Difference liabilities
Changesin fairvalue of
financialassetsavailablef 3,075,486.88 768,871.72 42,225,680.94 10,556,420.24
orsale
Total 3,075,486.88 768,871.72 42,225,680.94 10,556,420.24
（3）Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Trade-off between the Opening balance of
Trade-off between the End balance of deferred
deferred income tax deferred income tax
Items deferred income tax income tax assets or
assets and liabilities at assets or liabilities after
assets and liabilities liabilities after off-set
period-begin off-set
Deferred income tax
1,964,405.93 2,607,644.23
assets
Deferred income
768,871.72 10,556,420.24
liabilities
（4）Details of unrecognied deferred income tax assets
In RMB
Items Balance in year-end Balance in year-begin
113
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Deductible temporary difference 80,820,383.55 81,167,910.33
Deductible loss 454,296,685.78 411,615,401.60
Total 535,117,069.33 492,783,311.93
（5）Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
2017 134,292,559.16 134,292,559.16
2018 129,226,944.33 129,226,944.33
2019 148,095,898.11 148,095,898.11
2020 42,681,284.18
Total 454,296,685.78 411,615,401.60 --
Notes :Due to theuncertainty of acquirement of enough taxable income for Shenhen Shengbo Optoelectronic
Technology Co.,Ltd. in the future,The 2012-2015 annualdeductiblelosses of RMB454,296,685.78 haven’t been
recognized as the deferred tax assets.
21. Short-term loan
（1）Categories of short-term loans
In RMB
Items Balance in year-end Balance in year-Beinning
Credit loans 22,411,429.66 24,676,594.72
Total 22,411,429.66 24,676,594.72
22.Account payable
（1）Account payable
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 198,977,896.34 147,154,864.20
1-2 years 364,150.98
2-3 years 1,250.00 281,468.35
3-4 years 10,150.00 48,196.00
4-5 years 7,109.75 33,784.50
114
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Over 5 years 4,892,206.03 5,144,218.32
Total 203,888,612.12 153,026,682.35
（2）Significant accounts payable that aged over one year
In RMB
The reason for not repaid or carried forwar
Items Balance in year-end
d
Will Taco Corporation 4,795,680.34 Over 5 years
Total 4,795,680.34 --
23. Advance account
（1） Advance account
In RMB
Items Balance in year-end Balance in year-begin
Within 1 year 57,762,759.31 40,457,864.19
1-2 years 10,227.20 27,012.70
2-3 years 968.40 968.40
3-4 years 9,072.57
4-5 years 50.76
Over 5 years 640,541.38 640,541.38
Total 58,414,496.29 41,135,510.00
24.Payable Employee wage
（1）Payable Employee wage
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
I. Short-term employee
37,736,705.46 54,831,972.95 65,435,623.85 27,133,054.56
benefits
II. Post-employment
4,456,515.48 4,456,515.48
benefits
Total 37,736,705.46 59,288,488.43 69,892,139.33 27,133,054.56
（2）Short-term remuneration
In RMB
115
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1.Wages, bonuses,
36,466,410.58 47,792,018.22 58,551,012.54 25,707,416.26
allowances and subsidies
2.Employee welfare 3,040,801.59 3,040,801.59
3. Social insurance
944,387.72 944,387.72
premiums
Including：Medical
673,169.13 673,169.13
insurance
Work injury insurance 108,305.94 108,305.94
Maternity insurance 162,912.65 162,912.65
4. Public reserves for
1,949,617.99 1,949,617.99
housing
5.Union funds and staff
1,270,294.88 1,105,147.43 949,804.01 1,425,638.30
education fee
Total 37,736,705.46 54,831,972.95 65,435,623.85 27,133,054.56
（3）Defined contribution plans listed
In RMB
Items Balance in year-begin Increase in this period Payable in this period Balance in year-end
1. Basic old-age
4,019,866.89 4,019,866.89
insurance premiums
2.Unemployment
257,062.21 257,062.21
insurance
3. Annuity payment 179,586.38 179,586.38
Total 4,456,515.48 4,456,515.48
25.Tax Payable
In RMB
Items At end of term At beginning of term
VAT -60,967,607.29 -61,272,790.62
Business Tax 649,205.22 658,958.83
Enterprise Income tax 13,718,844.21 6,320,905.10
Individual Income tax 673,125.91 386,166.15
City Construction tax 27,569.53 58,577.68
116
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
House property Tax 750,605.11 750,603.03
Education surcharge 66,663.21 85,549.33
Other 170,022.54 176,209.64
Total -44,911,571.56 -52,835,820.86
26.Interest Payable
（.1）Interest Payable
In RMB
Items At end of term At beginning of term
Intereston long-term borrowings payable 36,561,736.85 32,806,459.08
Intereston short-term borrowings 44,478.67 230,759.60
Total 36,606,215.52 33,037,218.68
27.Other payable
（1）Disclosureby nature
In RMB
Items At end of term At beginning of term
Engineering Equipment fund 41,954,096.70 44,921,304.26
Unit account 33,583,172.60 38,703,210.28
Deposit 11,791,581.78 11,209,176.63
Drawingexpenses 2,870,648.80 2,872,752.99
Other 16,829,529.82 14,948,418.90
Total 107,029,029.70 112,654,863.06
28.Non-currentliabilitiesdue within 1 year
In RMB
Items At end of term At beginning of term
Long-term borrowings due with in 1year 35,346,136.30 75,346,136.30
Total 35,346,136.30 75,346,136.30
The long-term borrowings atthe end ofperiod are the borrowings enxtended to the Company by Pingan
117
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Bank.Shenzhen Jiangsu Building Branch. Entrustedby Shenzhen Shenchao Technology Investment Co.,Ltd.
29.Long-term borrowings
（1）Long-term term borrowings
In rmb
Items At end of term At beginning of term
Credit borrowings 124,653,863.70 124,653,863.70
Total 124,653,863.70 124,653,863.70
The long-term borrowings atthe end ofperiod are the borrowings enxtended to the Company by Pingan
Bank.Shenzhen Jiangsu Building Branch. Entrustedby Shenzhen Shenchao Technology Investment Co.,Ltd.
30.Deferredincome
In RMB
Balance in Increase at this Decrease at this
Items Balance in year-end Reason
year-begin period period
Govemment Subsidy 66,546,079.96 5,076,053.00 5,695,701.39 65,926,431.57
Total 66,546,079.96 5,076,053.00 5,695,701.39 65,926,431.57 --
Details of govemment subsidy：
In RMB
The
Balance in New grants
Items non-operating Balance in Income related to
amount of this Other changed
year-begin revenue amount year-end assets
period
of this period
Textile special
1,142,857.16 1,142,857.16 Related to assets
funds
High-tech
Industrialization
1,000,000.00 100,000.00 900,000.00 Related to assets
demonstration
projects
National grant
fundsfor new flat
5,000,000.00 500,000.00 4,500,000.00 Related to assets
panel display
industry
Borrowing
1,209,722.08 120,972.21 1,088,749.87 Related to assets
discount
118
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Government R &
7,909,980.00 3,954,990.00 3,954,990.00 Related to income
D subsidies
Grant funds for
TFT-LCD
9,533,333.34 650,000.00 8,883,333.34 Related to assets
polarizer industry
project
Grant funds for
TFT-LCD
polarizer narrow 4,000,000.00 250,000.00 3,750,000.00 Related to assets
line (line 5)
project
Purchase of
importedequipme 1,377,377.58 87,545.10 1,289,832.48 Related to assets
nt and technology
Innovation and
venture capital
400,000.00 25,000.00 375,000.00 Related to assets
for TFT-LCD
polarier project
Shenzzhen
Engineering
laboratory
polarizing 500,000.00 500,000.00 Related to assets
material and
technical
engineeting
Shenzhen
polarizingmateria
5,000,000.00 5,000,000.00 Related to assets
l and technical
engineering
Capital funding
for Technology 3,000,000.00 3,000,000.00 Related to assets
Center
Subsidy funds to
support the
introduction of a 115,104.80 7,194.08 107,910.72 Related to assets
dvanced technolo
gy
119
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Grant funds for
TFT-LCD
polarizer narrow 15,000,000.00 15,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 10,000,000.00 10,000,000.00 Related to assets
line (line 6)
project
Grant funds for
TFT-LCD
polarizer narrow 500,000.00 500,000.00 Related to assets
line (line 6)
project
Imported
equipment and
technology of 857,705.00 857,705.00 Related to assets
discount interest
funds
key technology
research and deve
lopment projects
5,000,000.00 5,000,000.00 Related to assets
of optical
compensation
film for polarizer
The third-quarter
import discount
interest of 18,152.00 18,152.00 Related to assets
Guangdong 2014.
Grants for
optimizing the
57,901.00 57,901.00 Related to income
import and export
structure of 2013
Total 66,546,079.96 5,076,053.00 5,695,701.39 65,926,431.57 --
Notes：
（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
120
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
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 1,142,857.16 .
(2) According to the document of Shenzhen Municipal Development and Reform Commission 【2009】 No. 416
that "The Notice On issued the Governmental Investment Plan in 2009 on Zhong Ke New Industrial Internet
Security Audit System and Other High-tech Industrialization Demonstration Project and the Public Testing and
Consultation Service of Information Security Industry and other National High-tech Industrial Base Platform
Projects”, on May 26, 2009, the company received the Shenzhen Municipal Development and Reform
Commission high-tech industrialization demonstration project supporting Capital RMB 2 million allocated by
Shenzhen City Bureau of Finance for the construction of “The Project of the Construction Line of Polaripiece for
TFT-LCD”.Our company will use 10 years as asset depreciation period for amortization in current period. The
non-operating income in current period is RMB 100,000.00 and the balance amount of unfinished final
amortization is RMB 900,000.00.
(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 10,000,000.00 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 2009, December 2009 and April 2010, the company received the special subsidies of State
Development and Reform Commission RMB 10,000,000.00. Our company will use 10 years as asset depreciation
period for amortization. The non-operating income in current period is RMB500,000.00, the balance amount of
unfinished final amortization is RMB 4,500,000.00;
（4）On December 2009 ,June 2011 and February 2013, the Company received a loan interest discount funds of
RMB 992,000.00, RMB 850,000.00 and RMB 483,000.00 allocated by Shenzhen Bureau of Finance for phase-II
alteration project. Our company will use 11 years as asset depreciation period for amortization in current
period.The non-operating income in current period is RMB 3,954,990.00 and the balance amount of unfinished
final amortization is RMB1,088,749.87.
（5）The Company received R&D subsidy of RMB39,549,900.00 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 3,954,990.00.
（6）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. On June 2012 and September 2013, the company received the national grants
of RMB 10,000,000.00.. 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
121
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Recovery 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 in April 2012. Our company will use 10 years as asset depreciation period for
amortization in current period.The non-operating income in current period is RMB650,000.00 and the balance
amount of unfinished final amortization is RMB8,883,333.34.
（7）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 2012. The Company planned to amortize the subsidy over 10 years
according to the depreciation period of relevant assets. The non-operating income in current period is
RMB250,000.00 and the balance amount of unfinished final amortization is RMB3,750,000.00.
（8）On October 2013, The company received the grants for the purchase of imported equipment and technology
in 2012 of RMB 1,750,902.00, the Company planned to amortize the subsidy over 10 years according to the
depreciation period of relevant assets.The non-operating income in current period is RMB87,545.10 and the
balance amount of unfinished final amortization is RMB1,289,832.48.
（9）On December 2013，The company received the funds for innovation and entrepreneurship of of TFT-LCD
polarizing project from Pingshan New District Development and Finance Bureau of RMB 500,000.00(matching
funding category),the Company planned to amortize the subsidy over 10 years according to the depreciation
period of relevant assets. The non-operating income in current period is RMB25,000.00 and the balance amount of
unfinished final amortization is RMB375,000.00.
（10）In December 2013,The company has received the innovation funds of RMB500,000.00 (the supporting and
funding category) from Shenzhen Polaroid Material and Technical Engineering Laboratory of Shenzhen Pingshan
New District Development and Finance Bureau. Also, the company shall allocate and transfer the deferred income
into the profit or loss in the current period based on the depreciation limit from the date of the expected usable
status achieved for the relevant assets.
（11）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 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.
（12）According to the “Announcement on the Identification of Technology Centers of 24 Enterprises including
Shenzhen Yuanwanggu Information Technology Joint Stock Company Limited as the Municipal Research and
Development Centers (Technical Center)” (SJMXXJS [2013] No.137), the research and development center of
Shenzhen SAPO Photoelectric Co., Ltd. has been regarded as 2012 annual municipal R&D center. In December
122
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
2013, the company has received the funding subsidy of RMB3 million for the construction of the technical center.
Also, the company shall allocate and transfer the deferred income into the profit or loss in the current period based
on the depreciation limit from the date of the expected usable status achieved for the relevant assets.
(13)On March 2014 the company received the introduction of advanced technology import subsidy funds of RMB
143,881 from Shenzhen Finance Committee, The non-operating income in current period is RMB7,194.08 and
the balance amount of unfinished final amortization is RMB107,910.72.
（14）According to the "Shenzhen Municipal Development and Reform Commission Reply for Shenzhen
Shengbo Optoelectronic Technology Co., Ltd. application for local matching funds of TFT-LCD polarizing film II
project (Line 6) " (Shenzhen DRC [2013]No. 1771), the company obtained TFT-LCD polarizing film II project
(line 6) local matching funds of RMB 15,000,000.00 in April 2014.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.
（15）According to "National Development and Reform Commission issued on industrial transformation and
upgrading projects (2nd industrial restructuring) notify the central budget for 2014 investment plan" (NDRC
Investment [2014] No. 1280), the company obtained TFT- LCD polarizer II project (line 6) state grants of RMB
10,000,000.00 in December 2014.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.
（16）In December 2014, the company received innovation venture capital (matching funding category) for Ping
Shan District Development and Finance Bureau of TFT-LCD polarizing film II project (line 6) of RMB
500,000.00.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;
（17）On September 2014，The company received a discount of imported equipment and technology funds of
RMB 857,705.00.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.
(18) On Jan. 2015, the company received RMB 5 million of grants for key technology
research and development projects of optical compensation film for polarizer from Shenzhen Scientific and
Technological Innovation Committee. The company will defer income share transferred in the current
profit and loss on the basis of depreciation life as of the date of the predetermined workability state the related
assets reach.
(19) On Feb. 2015, the company received RMB 18,152.00 of the third-quarter import discount interest of
Guangdong 2014.
(20) On Apr. 2015, the company received RMB57,901.00 of grants for optimizing the import and export structure
of 2013 from financial committee.
123
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
31.Stock capital
In RMB
Changed（+，-）
Balance in Balance in
Capitalization
year-begin Issuance of
Bonus shares of public Other Subtotal year-end
new share
reserve
Total of capital
506,521,849.00 506,521,849.00
shares
32.Capital reserves
In RMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Share premium 1,574,407,414.34 1,574,407,414.34
Other 10,722,637.03 10,722,637.03
Total 1,585,130,051.37 1,585,130,051.37
33.Other Comprehensive income
In RMB
Amount of current period
Less ：
Previously rec
Amount for After - tax a After - tax a
Year-beginni Year-end
Items ognized in pro
the period Less： ttributable t ttributable t
ng balance balance
fit or loss in ot
before inco Income tax o the parent o minority s
her comprehen
me tax company hareholders
sive income
2.Other comprehensive income
33,389,117.4 3,069,671.2 -29,368,461 4,020,656
reclassifiable to profit or loss in 31,669,260.68 768,871.74
6 5 .17 .29
subsequent periods
Gains and losses from changes in fair
33,421,401.1 3,075,486.9 -29,362,645 4,058,755
value of financial assets available for 31,669,260.68 768,871.74
1 6 .46 .65
sale
Translation differences of financial -38,099.3
-32,283.65 -5,815.71 -5,815.71
statements denominated 6
Total of other comprehensive income 33,389,117.4 3,069,671.2 31,669,260.68 768,871.74 -29,368,461 4,020,656
124
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
6 5 .17 .29
34.Surplus reserve
InRMB
Items Year-beginning balance Increase in the current Decrease in the current Year-end balance
period period
Statutory surplus reserve 64,403,027.10 64,403,027.10
Total 64,403,027.10 64,403,027.10
35.Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits at the period
6,805,203.33 124,997,823.59
end
After adjustments: Retained profits at the period
6,805,203.33 124,997,823.59
beginning
Add: Net profit attributable to owners of the
7,668,027.95 -113,591,328.26
Company for the period
Less: Appropriation to statutory surplus reserve 4,601,292.00
Retained profits at the period end 14,473,231.28 6,805,203.33
36.Business income, Business cost
（1）Business income
In RMB
Amount of current period Amount of previous period
Items
Income Cost Income Cost
Main Business 619,165,953.39 586,310,645.92 469,646,627.85 432,204,931.64
Other Business 1,827,380.09 1,827,380.11 1,977,196.96 1,933,192.62
Total 620,993,333.48 588,138,026.03 471,623,824.81 434,138,124.26
37.Business tax and subjoin
In RMB
Items Amount of current period Amount of previous period
125
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Business tax 2,424,634.23 2,353,361.25
Urban construction tax 123,396.62 176,137.63
Education surcharge 88,140.42 125,812.42
House tax 883,482.95 895,622.52
Other 26,966.44 33,207.92
Total 3,546,620.66 3,584,141.74
38.Sales expenses
In RMB
Items Amount of current period Amount of previous period
Wage 1,178,294.41 1,430,389.78
Exhibition fee 213,381.75 231,813.33
Advertising expenses 21,367.52 37,510.00
Business expenses 368,414.34 385,513.00
Transportation changes 1,717,902.03 1,741,798.62
Samples and product loss 394,738.08 75,642.30
Other 1,116,600.90 1,198,835.01
Total 5,010,699.03 5,101,502.04
39.Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 19,439,303.33 16,299,447.92
Property insurance 177,262.23 170,669.59
Repair charge 474,977.18 199,501.61
Business entertainment 744,434.80 887,353.84
Travel expenses 631,874.05 533,424.37
Office expenses 546,116.03 894,222.62
Water and electricity 2,007,974.64 374,199.89
126
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Tax 885,760.50 728,324.32
Lawsuit expenses 3,999.00 409,975.24
Agency expenses 1,370,706.42 1,268,189.47
R& D 11,956,715.67 36,362,478.26
Board fees 58,135.00 2,430.00
Other 2,891,255.97 2,680,036.82
Depreciation of fixed assets 3,077,101.23 2,498,882.22
Amorization of intangible assets 616,554.33 1,144,192.04
Amortization of long-term deferred
89,550.48 70,090.82
expenses
Low consumables amortization 85,564.00 141,282.50
Total 45,057,284.86 64,664,701.53
40.Financial Expenses
In RMB
Items Amount of current period Amount of previous period
3,962,978.70 4,983,644.27
Interest expenses
-15,870,335.45 -14,736,625.14
Interest income
Exchange loss 483,171.30 2,676,839.12
150,999.82 243,521.07
Fees and other
-11,273,185.63 -6,832,620.68
Total
41.Loss of assets impairment
In RMB
Items Amount of current period Amount of previous period
2,000,874.24 -4,765,132.13
I .Losses for bad debts
18,732,928.24 9,959,463.92
II. Losses for falling price of inventory
Total 20,733,802.48 5,194,331.79
127
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
42.Investment income
In RMB
Items Amount of this period Amount of last period
Investment income from the disposal of
1,029,521.87 541,081.40
long-term equity investment
Hold the investment income during from
2,118,237.17 2,487,818.57
available-for-sale financial assets
Investment income gain from available for sale
44,444,187.39 16,994,763.49
financial assets
Total 47,591,946.43 20,023,663.46
Notes：
During the reporting period, the company does not exist any significant limitation situation of investment income.
43. Non-Operation income
In RMB
Items Amount of current period Amount of previous period Recorded in the amount of the
non-recurring gains and losses
Total gains from disposal of
300.00 52,776.17 300.00
non-current assets
Including：Gains from disposal
300.00 52,776.17 300.00
of fixed assets
Government Subsidy 5,781,523.39 5,693,784.01 5,781,523.39
Other 2,095,125.89 196,599.56 2,095,125.89
Total 7,876,949.28 5,943,159.74 7,876,949.28
Government subsidy reckoned into current gains/losses
In RMB
Items Amount of this period Amount of last period Assets-related/income -related
Amortization of government
research and development 3,954,990.00 3,954,990.00 Related to the income
grants
Amortization of high-tech
industrialization demonstration 100,000.00 100,000.00 Related to the assets
project matching funds
New-style industrialization of 500,000.00 500,000.00 Related to the assets
128
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
flat panel display amortization
of State subsidy funds for
special projects
Shenzhen municipal financial
transfer loan amortization of 120,972.21 120,972.24 Related to the assets
discount
Futian district industrial develo
32,000.00 Related to the income
pment special fund subsidies
Amortization of grant funds for
phase-I Narrow line project of
250,000.00 250,000.00 Related to the assets
polarizer for TFT-LCD
TFT-LCD
Special subsidy and booth
subsidy for the development of
20,460.00 Related to the income
small and medium enterprises
in Shenzhen
Amortization of subsidy for the
industrialization project of 650,000.00 649,999.98 Related to the assets
polarizer for TFT-LCD
Amortization of purchase of
imported equipment and 87,545.10 65,361.79 Related to the assets
technology grants
Grant funds for TFT-LCD
25,000.00 Related to the assets
polarizer industry project
Amortization for the introductio
n of advanced technology impor 7,194.08 Related to the assets
t capital funding
Futian District Industrial
63,000.00 Related to the income
Development grant funds
Economic and Trade
Commission 2013 foreign trade
16,722.00 Related to the income
structure optimization support
funds
Exhibition subsidies 6,100.00 Related to the income
Total 5,781,523.39 5,693,784.01 --
44．Non-current expenses
In RMB
Items The amount of non-operating
Amount of current period Amount of previous period
129
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
gains & lossed
Total of non-current asset
72,965.54 3,638.02 72,965.54
Disposition loss
Incl: loss of fixed assets
72,965.54 3,638.02 72,965.54
disposition
Other 23.02 23.02
Total 72,988.56 3,751.62 72,988.56
45Income tax expenses
(1)Income tax expenses
In RMB
Items
Amount of current period Amount of previous period
Current income tax expense 16,871,410.54 9,458,456.41
Deferred income tax expense 636,554.71 3,922,769.40
Total 17,507,965.25 13,381,225.81
(2)Reconciliation of account profit and income tax expenses：
In RMB
Items Amount of current period
Total profits 25,175,993.20
Income tax computed in accordance with the applicable tax rate 6,293,998.30
Effect of different tax rateapplicable to the subsidiary Company 4,268,128.42
Influence of income tax before adjustment 5,017.92
Influence of non taxable income -1,005,569.64
Impact of non-deductible costs, expenses and losses 450.00
The current period does not affect the deferred tax assets
7,945,940.25
recognized deductible temporary differences or deductible loss
Income tax expense 17,507,965.25
46.Items of Cash flow statement
(1)Other cash received from business operation
In RMB
130
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Items Amount of current period Amount of previous period
Government Subsidy 5,161,875.00 15,143,881.00
Bank deposit interest income and other 21,323,964.63 18,236,358.99
Total 26,485,839.63 33,380,239.99
(2)Other cash paid related to oprating activities
In RMB
Items Amount of current period Amount of previous period
Research & development expenses 1,351,411.41 2,552,672.99
Office expenses 554,757.31 910,112.16
Business hospitality 1,112,849.14 1,272,866.84
Travel fee 778,192.93 730,450.51
Transportation expnses 1,717,902.03 2,103,336.69
Agency Fee 1,370,706.42 1,268,189.47
Insurance premium 177,262.23 170,669.59
Water and electricity fee 2,007,974.64 374,199.89
Repair feee 474,977.18 199,501.61
Exhibition expenses 213,381.75 231,813.33
Other 4,314,248.35 3,947,755.14
Total 14,073,663.39 13,761,568.22
(3)Cash received related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit and income 102,522,651.09
Total 102,522,651.09
(4)Cash paid related to other investment activities
In RMB
Items Amount of current period Amount of previous period
Structure deposit investment 460,000,000.00
Deposited in the fixed deposit account 57,269.91 500,000.00
Total 460,057,269.91 500,000.00
131
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
47.Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Items Amount of current period Amount of previous period
I. Adjusting net profit to cash flow from
-- --
operating activities
Net profit 7,668,027.95 -21,644,510.10
Add: Impairment loss provision of assets 75,317.28 5,194,331.79
Depreciation of fixed assets, oil and gas
39,299,556.21 39,229,163.04
assets and consumable biological assets
Amortization of intangible assets 616,554.33 1,144,192.04
Amortization of Long-term deferred
123,701.50 265,693.02
expenses
Loss on disposal of fixed assets, intangible
72,361.36 3,638.02
assets and other long-term deferred assets
Financial cost -15,048,693.89 4,983,644.27
Loss on investment -47,591,946.43 -20,023,663.46
Decrease in deferred income tax assets 643,238.30 3,922,769.40
Increased of deferred income tax liabilities -9,787,548.52 -56,153,854.51
Decrease of inventories -29,251,840.91 -22,608,337.57
Decease of operating receivables -29,915,050.88 -55,907,289.43
Increased of operating Payable 87,389,451.70 31,044,959.16
Net cash flows arising from operating
4,293,128.00 -90,549,264.33
activities
II. Significant investment and financing
-- --
activities that without cash flows:
III．Movement of cash and cash equivalents： -- --
Ending balance of cash equivalents 638,275,236.97 1,052,128,739.88
Less: Beginning balance of cash equivalents 1,098,232,359.02 943,913,951.68
Net increase of cash and cash equivalents -459,957,122.05 108,214,788.20
(2)Composition of cash and cash equivalents
In RMB
132
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Items Year-end balance Year-beginning balance
I. Cash 638,275,236.97 1,098,232,359.02
Including：Cash at hand 10,356.02 8,588.42
Demand bank deposit 638,112,259.52 1,097,734,798.40
Demand other monetary funds 152,621.43 488,972.20
III. Balance of cash and cash equivalents at
638,275,236.97 1,098,232,359.02
the period end
48.Foreign currency monetary items
(1)Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Including：USD 2,574,583.35 15,739,972.77
6.1136
HKD 781,335.40 616,168.91
0.78861
JPY 1,778,218.00 89,003.37
0.050052
Including：USD 26,527,472.99 162,178,358.17
6.1136
HKD 278,280.00 219,454.39
0.78861
JPY 240,306.00 12,027.80
0.050052
Other receivable
Including：USD 32,199.02 196,851.93
6.1136
Account payable
Including：USD 25,512,640.09 155,974,075.80
6.1136
JPY 469,095,247.88 23,479,163.33
0.050052
Other payable
133
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Including：USD 81,000.00 495,201.21
6.1136
JPY 23,452,800.00 1,173,859.94
0.050052
HKD 1,496,857.42 1,180,436.73
0.7886
Euro 51,500.00 353,799.85
6.8699
Short –term loans
Including：JPY 447,762,920.00 22,411,429.66
0.050052
(2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed
about its principal business place, function currency for bookkeeping and basis for the choice. In case of any
change in function currency, the cause should be disclosed.
□ Applicable √ Not applicable
VIII. Change in consolidation scope
N/A
IX. Equity in other entity
1. Equity in subsidiary
（1）Constitute of enterprise group
Share-holding ratio
Subsidiary Main operation Registered place Business nature Acquired way
Directly Indirectly
Shenzhen Dailishi
Industry Domestic trade, Establish
Shenzhen Shenzhen 100.00%
Investment Co., property leasing
Ltd
Accommodation, Establish
Shenzhen
Shenzhen Shenzhen restaurants, 100.00%
Huaqiang Hotel
business center;
Shenfang Establish
Property Property
Shenzhen Shenzhen 100.00%
Management Co., Management
Ltd.
Shenzhen Beauty Production of Establish
Shenzhen Shenzhen fully electronic 100.00%
Century Garment
jacquard knitting
134
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Co., Ltd. whole shape
Shenzhen Operating import
Shenfang Import
Shenzhen Shenzhen and export 100.00% Establish
& export Co.,
Ltd. business
Shenzhen
Shengbo Operating import
Ophotoelectric Shenzhen Shenzhen 100.00% Purchase
Technology Co., and export
Ltd business
Shengtou
(Hongkong) Production and
Hongkong Hongkong 100.00% Establish
Co.,Ltd. sales of polarizer
2.Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Holding proportion(%) The accounting
Joint venture or
Place of treatment of
associated Place of operation Nature
registration Directly Indirectly investment in
enterprise
associates
Shenzhen Haohao
Property Leasing Shenzhen Shenzhen Property leasing 50.00% Equity method
Co., Ltd.
Shenzhen Xieli
Automobile Co., Shenzhen Shenzhen Property leasing 50.00% Equity method
Ltd.
Shenzhen
Changlianfa
Shenzhen Shenzhen Property leasing 40.25% Equity method
Printing and
dyeing Company
Jordan Garment
Jordan Jordan Manufacturing 35.00% Equity method
Factory
Yehui
International Co., Hongkong Hongkong Manufacturing 22.75% Equity method
Ltd.
(2)Key financial information of significant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
135
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
period previous period
Joint venture： -- --
Total book value of the investment 7,521,241.97 7,170,874.18
Total amount of the pro rata calculation of
-- --
the following items
--Net profit 350,367.79 406,518.33
---Total comprehensive income 350,367.79 406,518.33
Associated enterprise： -- --
Total book value of the investment 13,759,295.19 13,624,183.15
Total amount of the pro rata calculation of
-- --
the following items
--Net profit 679,154.08 134,563.07
--Other Comprehensive income -5,815.71
--Total comprehensive income 673,338.37 134,563.07
3. Significant common operation
Main operating Proportion /shareportion
Name Registration place Business nature
plance Directly Indirectly
Guanhua Building Shenzhen Shenzhen Cooperate 50.16%
According to the company along with Hongkong Qiaohui Industries Co.,Ltd. signed "Agreement on cooperative
development and construction of Guanhua building", jointly developed Guanhua building construction, the compa
ny invested 50.16%, Hong Qiao Hui Industrial Co., Ltd. invested 49.84%, the two sides need to agree matters affe
cting the cooperation projects. In addition, the two sides agreed to the project is completed in accordance with the
ratio of the actual investment allocation or co-operation, specific programs need further deliberations.
As of the reporting period, Guanhua unfinished building projects.
X. Risks Related to Financial Instruments
The company has the main financial instruments, such as bank deposits, receivables and payables, investments,
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk, market risk and liquidity risk. The company’s management shall
manage and monitor these risks and ensure above risks to be controlled within certain scope.
（I）Credit Risk
The credit risk of the company is primarily attributable to bank deposits and receivables. Of which, the bank
136
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
deposits are mainly deposited in the medium and large commercial banks with strength, high credibility. For the
receivables, the company has developed the relevant policies to control the credit risk, and set up the
corresponding debt and credit limit after the credit status of debtor is evaluated based on financial condition of
debtor, credit history, external ratings, possibility of guarantee obtained from the third party. Meanwhile, the
company shall regularly monitor the debtor’s credit history. With regard to the bad credit record for the debtor, the
company shall adopt the written reminder, shortening or cancel of credit period to ensure the overall credit risks
within the controllable scope.
（II）Market risk
Market risk of financial instrument arises from changes in fair value or future cash flow of financial instruments
affected by market price . Market risks includes foreign exchange risk and interest risk.
(1) Interest Rate Risk
The interest rate risk faced by the company is mainly from the bank borrowings. The company is faced the interest
rate risk of the cash flow due to the financial liability of the floating interest rate, and faced the interest rate risk of
the fair value due to the financial liability of the fixed interest rate. The company shall determine the relative
proportion in the fixed and floating interest rate contracts.
(2) Foreign Exchange Risk
The foreign exchange risks faced by the company are mainly from the financial assets and liabilities based on the
price of US dollar and JPY. The company matches the income and expenditure of foreign currency as far as
possible in order to reduce the foreign exchange risk.
（III）Liquidity risk
Liquidity risk refers to fund shortage problems when fulfilling obligations settled in cash or other financial assets.
The company shall guarantee to have the sufficient funds to repay the debts through monitoring the cash balance,
the marketable securities available to be cash and the rolling forecast for the future cash flow.
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value measurement Fir value measurement Fir value measurement
TotaL
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II.Available for sale
11,404,930.81 11,404,930.81
financial assets
（2）Equity instrument
11,404,930.81 11,404,930.81
investment
137
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Total of Consistent fair
11,404,930.81 11,404,930.81
value measurement
III. Non Consistent fair
value -- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level
The fair value of financial assets available for sale at the end of period is measured based on the closing price of
Shenzhen Stock Exchange on June 30,2015.
XII. Related parties and related-party transactions
1、Parent company information of the enterprise
The parent company The parent company
Registered capital
Name Registered address Nature of the Company's of the Company’s
（RMB’0000）
shareholding ratio vote ratio
18/F, Investment
Shenzhen Equityinvestment , RMB
Building, Shennan
Investment Holdings RealestateDevelopm 10925.99.0674millio 46.21% 49.39%
Co.,Ltd. Road, Futian
entandGuarantee n
District, Shenzhen
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.
The finial control of the Company was Shenzhen People’s Govemment stateownedassetssupervision &
AdministrationCommission.
2.Subsidiaries of the Company
Details refer to the Note IX-1, Interest in the subsidiary
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the Note IX-2, Interests in joint ventures or associates
4.Other Related parties information
Other related party Relationship to the Company
Shenzhen Shenchao Technology Investment Co., Ltd. Subject to the same party controls
Shenzhen Tianma Microelectronics Co., Ltd. Chairman of the Board Is the Vice Chairman of the Company
138
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Shenzhen Xiangjiang Trade Co., Ltd. Sharing Company
Shenzhen Xinfang Knitting Co., Ltd. Sharing Company
Shenzhen Dailishi Underwear Co., Ltd. Sharing Company
Anhui Huapeng Textile Co., Ltd. Sharing Company
Shengbo （HK）Co., Ltd. The Company Executivesare Director of the company
5. Related transactions.
1．Sales of goods and vendering of services
In RMB
Related party Content
Amount of current period Amount of previous period
Shenzhen Tianma
Sales polarizer sheet 1,091,908.67 1,792,448.90
Microelectronics Co., Ltd.
2. Rewards for the key management personnel
In RMB
Items
Amount of current period Amount of previous period
Rewards for the key management
1,728,309.00 1,941,228.00
personnel
（3）Other related parties
Entrusted loans to related parties
For the construction of the project of polarizer sheet 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%. IAs of
June 30, 2015, The Company actually received a loan of RMB 160 million.
6. Receivables and payables of related parties
（1）Receivables
In RMB
139
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Amount at year end Amount at year beginning
Name Related party
Balance of Book Bad debt Provision Balance of Book Bad debt Provision
Shenzhen Tianma
Account receivable Microelectronics 521,264.72 26,063.24 568,133.34 28,406.67
Co., Ltd.
Other Account Anhui Huapeng
2,700,000.00 135,000.00 1,800,000.00 90,000.00
receivable Textile Company
Other Account Shenzhen Dailishi
257,450.22 12,872.51
receivable Underwear Co., Ltd.
（2）Payables
In RMB
Amount at year end Amount at year beginning
Name Related party
Shenzhen Xinfang Knitting Co.,
Other payable 244,789.85 244,789.85
Ltd.
Shenzhen Xiangjiang Trade
Other payable 40,000.00 40,000.00
Co., Ltd.
Shenzhen Changlianfa Printing
Other payable 987,144.49 584,644.49
and dyeing Co., Ltd.
Shenzhen Haohao Property
Other payable 3,779,489.85 3,479,489.85
Leasing Co., Ltd.
Other payable Yehui International Co.,Ltd. 1,071,152.59 1,071,546.49
Other payable Shengbo （Hongkong）Co., Ltd. 315,000.00 315,000.00
Shenzhen Dailishi Underwear
Other payable 137,114.78
Co., Ltd.
Shenzhen Shenchao Technology
Interest payable 36,561,736.85 32,806,459.08
Investment Co., Ltd.
XIII. Subsequent events
N/A
XIV. Notes s of main items in financial reports of parent company
（1）Account receivable
1.Classification accojunt receivables.
140
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
In RMB
Amount in year-end Amount in year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision
Classification Amount Proportio Amount Proportio value
Amount Proportio Amount Proportion( Book value
n(%) n% Proportio n(%) %)
n(%)
Accounts receivable
subjecttoimpairment
955,460. 47,773.0 907,687.3 493,566
assessment by credit 100.00% 5.00% 100.00% 24,678.31 5.00% 468,887.97
40 1 9 .28
risk characteristics of
a portfolio
955,460. 47,773.0 907,687.3 493,566
Total 100.00% 5.00% 100.00% 24,678.31 5.00% 468,887.97
40 1 9 .28
Accounts receivable of individual significance and subject to individual impairment assessment.
□ Applicable√ Not applicable
Account reveivable on which bad debt proisions are provided on age basis in the group
√ Applicable □ Not applicable
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Rate of alloance(%)
Within item 1 year
Within 1 year 955,460.40 47,773.01 5.00%
Subtotal within 1 year 955,460.40 47,773.01 5.00%
Total 955,460.40 47,773.01 5.00%
Receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was RMB 23,094.70 ; The acmount collected or switches back amounting to
RMB0.00.
Important baddebt provision collected or switch back.
2.Other receivable
(1)Category of Other receivable
In RMB
In RMB
141
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Amount in year-end Amount in year-beginng
Book Balance Bad debt provision Book Balance Bad debt provision
Classification Book
Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value
value
n(%) n(%) n(%) %)
Other accounts
receivable of
individual
11,981,4 11,981,4 11,981, 11,981,46
significance and 14.21% 100.00% 14.30% 100.00%
64.60 64.60 464.60 4.60
subject to individual
impairment
assessment
Other accounts
receivable
subjecttoimpairme
72,010,5 6,954,65 65,055,85 71,511, 6,929,687 64,581,392.
nt assessment by 85.42% 5.00% 85.33% 9.69%
14.72 9.00 5.72 079.72 .26 46
credit risk
characteristics of a
portfolio
Other accounts
receivable of
individual
311,486. 311,486. 311,486 311,486.3
insignificance but 0.37% 100.00% 0.37% 100.00%
35 35 .35 5
subject ot individual
impairment
assessment
84,303,4 19,247,6 65,055,85 83,804, 19,222,63 64,581,392.
Total 100.00%
65.67 09.95 5.72 030.67 8.21 46
Other receivable accounts with large amount and were provided had debt provisions individually at end of period.
√ Applicable □ Not applicable
In RMB
Amount in year-end
Debtor Other account
Bad debt provision Rate of alloance(%) Reason for allowance
receivable
Jiangxi Xuanli String Co., Estimates can not be
11,389,044.60 11,389,044.60 100.00%
Ltd. recovered
Shenzhen Tianlong Estimates can not be
592,420.00 592,420.00 100.00%
Induatry& Trade Co., Ltd. recovered
142
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Total 11,981,464.60 11,981,464.60 -- --
Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis：
√ Applicable □ Not applicable
In RMB
Amount in year-end
Aging
Other receivable Bad debt provision Withdrawal proportion
Within item 1 year
Subtotal within 1 year 64,572,885.22 3,235,844.25 5.00%
Within 1 year 64,572,885.22 3,235,844.25 5.00%
Over 3 year 7,437,629.50 3,718,814.75 50.00%
Total 72,010,514.72 6,954,659.00 9.66%
Other receivable account in Group on which bad debt provisions were provided on percentage basis：
□Applicable √Not applicable
Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio：
□Applicable √Not applicable
（2）Bad debt provision accrual collected or switch back
Bad debt provision accrual was -16,648.81, the acount collected or switches back amounting to RMB 0.00.
（3）Other accounts receivable classified by the nature of accounts
In RMB
Category
Year-end balance Year-beginning balance
Export rebate 69,244,280.72 69,244,280.72
Unit account 14,937,012.97 14,431,577.97
Reserve fund and staff loans 10,000.00
Other 112,171.98 128,171.98
Total 84,303,465.67 83,804,030.67
（4）The ending balance of other receivables owed by the imputation of the top five parties
In RMB
： 元
Name Nature Year-end balance Age Portion in total other Bad debt provision
143
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
receivables(%) of year-end balance
In Inter-company
57,000,000.00 Within 1 year 67.61% 2,850,000.00
First accounts
Second Unit account 11,389,044.60 Over 3 years 13.51% 11,389,044.60
Inter-company
7,168,680.72 Over 3 years 8.51% 3,584,340.36
Third accounts
Inter-company
5,000,000.00 Within 1 year 5.93% 250,000.00
Fouth accounts
Fifth Unit account 2,700,000.00 Within 1 year 3.20% 135,000.00
Total -- 83,257,725.32 -- 98.76% 18,208,384.96
3.Long-term equity investment
In RMB
Year-end balance Year-beginning balance
Items Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Investment to the
1,779,106,095.91 2,249,587.82 1,776,856,508.09 1,779,106,095.91 2,249,587.82 1,776,856,508.09
subsidiary
Investment to
joint ventures and
21,547,192.15 266,654.99 21,280,537.16 21,061,712.32 266,654.99 20,795,057.33
associated
enterprises
Total 1,800,653,288.06 2,516,242.81 1,798,137,045.25 1,800,167,808.23 2,516,242.81 1,797,651,565.42
（1）Investment to the subsidiary
In RMB
Withdrawn
Closing balance
impairment
Name Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
reporting period
Shenzhen Shengbo
Optoelectrionc
1,716,663,070.03 1,716,663,070.03
Technology Co.,
Ltd.
Shenzhen Lisi
Industrial 8,073,388.25 8,073,388.25
Development Co.,
144
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Ltd.
Shenzhen Beauty
Centruty Garment 30,867,400.00 30,867,400.00 2,167,431.21
Co., Ltd.
Shenzhen
Shenfang Import 6,299,700.00 6,299,700.00 82,156.61
& Export Co., Ltd
Shenzhen
15,489,351.08 15,489,351.08
Huaqiang Hotal
Shenfang Property
Management Co., 1,713,186.55 1,713,186.55
Ltd.
Total 1,779,106,095.91 1,779,106,095.91 2,249,587.82
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Closing
Adjustme
Withdraw balance
Decreas Gain/loss nt of Declarati
Opening Add Other n Closing of
Name ed of other on of cash
balance investme equity impairme Other balance impairme
investm Investme comprehe dividends
nt changes nt nt
ent nt nsive or profit
provision provision
income
I. Joint ventures
Shenzhen
Haohao
3,762,406. 156,795.7 3,919,202
Property
73 0 .43
Leasing Co.,
Ltd.
Shenzhen
Xieli 3,675,122. 193,572.0 3,868,694 266,654.9
Automobile 44 9 .53 9
Co., Ltd.
Subtotal 7,437,529. 350,367.7 7,787,896 266,654.9
145
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
17 9 .96 9
II. Associated enterprises
Shenzhen
Changlianfa
1,814,158. 1,830,613
Printing and 16,454.78
78 .56
dyeing
Company
Jordan
3,262,744. 3,296,259
Garnent 36,410.63 -2,895.43
69 .89
Factory
Yehui
8,547,279. 626,288.6 538,226.3 8,632,421
International -2,920.28
68 7 3 .74
Co., Ltd.
13,624,18 679,154.0 538,226.3 13,759,29
Subtotal -5,815.71
3.15 8 3 5.19
21,061,71 1,029,521 538,226.3 21,547,19 266,654.9
Total -5,815.71
2.32 .87 3 2.15 9
4.Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Income Cost Income Cost
Main Business 29,699,808.94 3,576,177.12 28,848,917.44 3,723,013.89
Other Business 1,827,380.09 1,827,380.11 1,806,431.00 1,806,430.99
Total 31,527,189.03 5,403,557.23 30,655,348.44 5,529,444.88
5.Investment income
In RMB
Items Amount of current period Amount of previous period
Income from long-term equity investment
1,029,521.87 541,081.40
measured by adopting the Equity method
Investment income received from holding of
1,432,892.22 1,830,705.00
available-for –sale financial assets
146
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
Investment income arising from disposal of
44,444,187.39 16,994,763.49
long-term eqiuty investments
Total 46,906,601.48 19,366,549.89
XV. Supplement information
1. Particulars about current non-recurring gains and loss
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -72,665.54
Govemment subsidies recognized in currentgain and
loss(excluding those closely related to the Company’s 5,781,523.39
business and granted under the state’s policies)
Except for effective hedge business relevant to
normal operationof the Company, gains and losses
arising from fair value change of tradable financial
assets and tradable financial liabilities, and 44,444,187.39
investment income from disposal of tradable financial
assets, tradable financial liabilities and financial
assets available for sale
Single impairment test for impairment of receivables
440,691.99
transferredback to preparation
Other non-business income and expenditures other
2,095,102.87
than the above
Influenced amount of income tax 11,636,586.68
Total 41,052,253.42 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the
Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item.
□ Applicable √Not applicable
2. Return on net asset and earnngs per share
Earningspershare
Profitofreportperiod Weightedaverageretureoneqiuty(%)
Basicearningspershare(R Diluted eqrnings per
147
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
MB/share） share(RMB/share)
Net profit attributable to the Common
0.35% 0.015 0.015
stock shareholders of Company.
Net profit attributable to the Common
stock shareholders of Company after -1.53% -0.066 -0.066
deducting of non-recurring gain/loss.
3.The differences between domestic and international accounting standards
（1）Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.
□ Applicable √Not applicable
(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the
accounting standards outside Mainland China and CAS
□ Applicable √Not applicable
148
Shenzhen Textile (Holdings) Co., Ltd. The Semi-Annual Report 2015
X．Documents Available for Inspection
1. Accounting statement carrying the signatures and seals of the legal representative, person in charge of
accounting and person in charge of accounting organ;
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 Secretaries of the Board of Directors of the
Company.
The Board of Directors of Shenzhen Textile (Holdings) Co., Ltd.
August 28，2015
149
